Executive Summary
The dawn of the internet age brought about shifts from traditional to modern media channels. Consequently, Sinclair Broadcasting Group faces stiff competition from technological advancements in the telecommunications sector. In the current paper, the author highlighted the company’s history in terms of performance and projected growth. In addition, a SWOT analysis was conducted on the firm. The threats and weaknesses identified called for a strategic plan to put SBG back on the growth trajectory.
A two-pronged strategic plan was proposed to help SBG achieve this objective. The strategy was made up of diversity and incentives. Diversity was given a three-year implementation plan, which will help SBG bridge the employment disparities associated with gender and age. On the other hand, the incentives plan was proposed to motivate employees and increase their output. The strategic plan was meant to trigger growth through innovation. It was evaluated on the basis of associated benefits and risks. Information from the literature review supported the proposed strategy and highlighted its growth potential.
Introduction
In this chapter, the various strategic plans proposed for Sinclair Broadcast Group (SBG) are outlined. In this section, the author discusses the expected outcomes of the selected strategic plan, which was highlighted in chapter 3. The risks associated with the preferred strategy are discussed. In addition, an evaluation plan for the strategic choice is outlined.
Companies develop a strategic plan to counter some of the challenges faced in the industry. Sinclair Broadcasting Group is facing a technological threat. An effective strategy should be able to address these problems. Strategic plans come with various benefits and costs. In this chapter, the potential benefits of the proposed strategy are discussed. The risks associated with the implementation of the plan are outlined. The strategic plan is later subjected to an evaluation mechanism to establish its feasibility. A summary and conclusion of the presentation are also outlined in this chapter.
Expected Outcomes of the Strategy
In chapter 3, the two components of the selected strategic plan were highlighted. The first element involves the improvement of diversity in SBG. On its part, the second aspect touches on the review of the incentives given to the employees. Each of the two components is associated with a number of benefits. For example, according to Russell (2004), diversity will help to increase productivity at SBG. Increased productivity will have a positive effect on the financial standing of the organization. The proposed strategic plan intends to address issues of gender, age, and professional diversity. The resultant effect will be a pool of employees who can meet the set targets and reduce redundancy, which is costly to the company.
Another expected outcome is creativity. Diversity in an organization spurs creativity. Brown (2011) argues that a diverse workforce is heterogeneous. Such a team of employees exhibits ‘cross-fertilization’ of skill, which brings about the aforementioned creativity. The benefits realized will impact positively SBG’s marketing campaigns. Fred (2013) points out that marketing requires a creative environment. In light of this, the problems faced by SBG in terms of reduced viewership will be dealt with as a result of the efforts made by the creative marketing team put in place (Yan & Napoli, 2006).
Social interaction within an organization improves the reputation of the firm. Diversity plays a crucial role in the achievement of this objective. The SWOT analysis conducted on SBG reveals that the organization is facing the problem of declining viewership (Napoli & Yan, 2007). One of the reasons behind this problem is the lack of gender parity within the organization. Fred (2013) points out that a diverse workforce attracts clients who share in the various perspectives held by the employees. In this regard, diversity is expected to improve the reputation of SBG. In addition, it will also improve the working environment for the employees.
As already mentioned, the second aspect of the strategic plan involves a review of employees’ incentives. In this regard, SBG requires a workforce that is highly motivated to improve its declining standards (Sinclair, 1997). To a large extent, incentives impact the financial performance of an organization. The proposals made to the management entail rewarding employees for their performance. The mechanism may involve bonuses or salary increments (Fred, 2013). The incentives will stimulate the workforce and increase productivity. Enhanced productivity will increase the revenues collected by SBG (Barrett, 2005). As a result, the social and environmental aspects of the firm will improve.
Diversity and increased incentives will benefit the management of SBG. For instance, the strategic plan will help the executives deal with the challenges associated with reduced viewership and technological advancements (Yan & Napoli, 2006). The team will be able to make informed administrative decisions. According to Fred (2013), incentives have a direct impact on the management given that it reduces their workload. The administrative team is left with the task of evaluating performance. The production process is entrusted to the motivated employees.
Risks of the Strategy
Strategic plans are associated with various risks. Coming up with incentives for workers will involve increasing the operating capital of SBG to cater for the bonuses and salary increments. Brown (2011) argues that companies that are performing poorly should avoid increasing their expenditure. Increasing expenses will make it hard for SBG to meet the set goals. In addition, it will increase the liabilities of the firm. As a result of gender diversity, SBG may find it hard to cater to the transition of its young viewers (Barrett, 2005). The strategy may take time to meet this objective. Such a move will not be in the interest of SBG, which is in dire need of a turnaround (Napoli & Yan, 2007).
Plan for Evaluation of the Proposed Strategy
Strategic plans are meant to help a company improve its performance. However, the success of these strategies is only realized when the firm puts in place an effective mechanism to gauge whether or not the plans are meeting the set objectives. In light of this, SBG needs a quarterly review of the proposed plan to determine its success (Sinclair, 1997). The following table is an illustration of this evaluation plan:
Table 1. Evaluation plan for Sinclair Broadcast Group.
The four-part evaluation plan seeks to establish whether or not the strategic plan is meeting the goals set by SBG. Once a budget is established, diversity will be evaluated based on market response and results of skill diversification (Russell, 2004). Subsequently, return on investment will be measured based on the previous evaluations. The incentives are largely pegged on how the employees perform with respect to the bonuses and salaries awarded.
Summary and Conclusion
The strategic plan proposed is in the best interest of SBG. The major risk faced by the company involves technological advancement and the rise of the internet. Technology is fast driving viewers away from mainstream media. According to Fred (2013), innovativeness is the best response to the threats and weaknesses associated with a given organization. Consequently, the diversity and incentives proposed will spur SBG’s growth through innovativeness.
The proposed strategy will be implemented over a span of five years. A five-year strategic plan will bring about a paradigm shift in the operations of SBG. According to Fred (2013), a period of between five and ten years is enough to turn around major aspects of an organization. The time taken by an organization to increase incentives to employees is a major risk factor. Fred (2013) points out that if the management takes long before raising the salaries and bonuses, the employees may get employment elsewhere.
In addition, incentives are usually non-binding with regards to the workforce. As such, the employees are free to seek new job offers. Monetary investment in such individuals poses a risk to the financial and social stability of an organization. However, the benefits of this strategy outweigh the risks, making it an ideal strategy for SBG.
In conclusion, it is important to note that companies should come up with a new strategic plan after a period of time. The plans help firms cope with the changing business landscape. The strategic plan proposed for SBG is a model that can be adopted by other companies to enhance performance. However, further research is required to come up with solid plans to help companies remain relevant in the market.
References
Barrett, M. (2005). The FCC’s media ownership rules and the implications for the network-affiliate relation. Journal of Media Economics, 18(1), 1-19.
Brown, D. (2011). An experiential approach to organizational development (8th ed.). Upper Saddle River, NJ: Prentice Hall.
Fred, D. (2013). Strategic management concepts: A competitive advantage approach (14th ed.). Upper Saddle River, NJ: Prentice Hall.
Napoli, P., & Yan, M. (2007). Media ownership regulations and local news programming on broadcast television: An empirical analysis. Journal of Broadcasting & Electronic Media, 51(1), 39-57.
Russell, D. (2004). The liberal Archipelago: A theory of diversity and freedom. Australasian Journal of Philosophy, 82(3), 538-540.
Sinclair, J. (1997). The business of international broadcasting: Cultural bridges and barriers. Asian Journal of Communication, 7(1), 137-155.
Yan, M., & Napoli, P. (2006). Market competition, station ownership, and local public affairs programming on broadcast television. Journal of Communication, 56(4), 795-812.