Abstract
The current paper provides a general overview of Sinclair Broadcasting Group (SBG). The author looks at the history, structural organization, and culture of the firm. The various forms of change occurring in the institution are also reviewed. In addition, the author analyzes some of the reasons why SBG is the leading player in the telecommunications industry today. It is noted that employees are key to the success of any entity. They should be treated like part of the firm’s family to maximize their output. SBG started with just a single station, WBFF-TV. It has expanded to 162 channels. The company has encountered problems along the way.
For example, the United Paramount Network (UPN) filed a lawsuit against SBG after a contract between the two was terminated prematurely. The arrangement came to an end after Sinclair secured a better offer than the one provided by UPN. Such conflicts between companies have improved the organization’s productivity. Effective strategic plans are essential in any profit making organization. To this end, the adoption of the right strategies has played a major role in the success of SBG.
A Deeper Look into Sinclair Broadcasting Group
Introduction
Sinclair Broadcasting Group (SBG) was established in 1986. It is a telecommunications company based in Hunt Valley, Maryland USA. It is one of the largest television broadcasting firms in the country (Sinclair, 1997). The organization has a total of 162 stations, including 20 that are yet to be approved. Broadcasts from SBG are received by thirty nine percent of American households. Examples of programs offered include, among others, FOX, CW, ABC, and CBS. In addition to television networks, the company has four radio stations. It is also the sponsor of Ring of Honor, a wrestling promotion show.
The author of this paper will look at various elements in relation to this company. Some of the issues analyzed include the history of the organization, its managerial structure, and cultural background. The aim of this analysis is to create a clear picture of this American telecommunications giant.
SBG: History and Background
The company was founded by Julian Sinclair Smith in 1971. By then, it was known as Chesapeake Television. His son, David Smith, was involved in the operations of the company for a long time. With time, the name was changed to Sinclair Broadcasting Group. In 1990, Sinclair’s four sons bought all the stock held by their parents. According to Sinclair (1997), by June 1995, the company was growing at a very high rate. As a result, it went public. However, the four brothers retained a controlling portion of the firm. David became the CEO and president of the entity, while his three siblings assumed the roles of vice presidents. Within ten years, SBG emerged as the largest commercial television network in America. The various television and radio broadcasts were acquired at different times (Fred, 2013).
David Sinclair came up with the idea of digital television. The plan was to provide TV content through the internet without the use of wired connections. Signals are received through a modem or TV antenna that is plugged into a computer (Yan & Napoli, 2006). Given the small size of this market at the time, SBG formed Chesapeake Television to continue providing conventional services. The new entity was formed in 2013.
Many business enterprises encounter various problems (Yan & Napoli, 2006). To this end, SBG has faced a number of legal and economic battles from competitors. After Warner Brothers and Paramount began scrambling for shares in the television market, Sinclair decided to buy WLFL-TV at an undisclosed amount. The action raised suspicions as to how the company acquired the channel. United Paramount Network took SBG to court for breach of contract. UPN argued that the business engagement was still valid at the time and SBG had no right to terminate it. However, the court ruled in favor of the respondent. It was determined that proper notice and time was given to UPN (Sinclair, 1997).
Organizational Structure
Structures define how tasks are allocated to various stakeholders in an organization. Most organizational arrangements are based on a hierarchical system. A functional structure should be based on the objectives of the company. It should reflect strategic plans that are appropriate to the operations of the firm (Fred, 2013). In most cases, decisions are made by the CEO. Orders and instructions are passed down the hierarchy to the last employee.
Just like any other profit making organization, Sinclair Broadcasting Group has a number of departments. The company is led by the overall President, who is also the Chief Executive Officer and Chairman of the Board. As already indicated, this position is held by David Sinclair Smith. Below him are the Executive Vice President and Chief Financial Officers. Other departments are also headed by vice presidents. They include the sales, purchasing, engineering, marketing, finance, corporate communications, and human resource sections. Other executive leaders include the Chief Accounting Officer and Head of Legal Department. The Board of Directors comes after these officers. Last in the hierarchy are the employees. It is noted that any person below the board is regarded as an employee (Brown, 2011).
SBG: Culture
The company is an innovative, daring, and dedicated entity. The three traits are not common in many organizations. The founder, Julian Sinclair, was an engineer. He applied the three values to form the largest telecommunications network in America. The management observes ethical standards and respects the diversity of all members (Robbins & Judge, 2013). The success of this company is not attributed to the founder alone. The highly motivated employees have also played a role in the organization.
The prevailing culture in SBG motivates the workers. They are determined to achieve their goals (Fred, 2013). Fred (2013) argues that a visionary management team is needed to enhance the smooth running of an organization. SBG may be a public enterprise, but the employees believe that they are members of a large family. The loyalty of the workers has helped the company rise to the top. The realization affirms the argument that employees are the most valuable asset held by a firm (Robbins & Judge, 2013).
SBG observes the wellbeing of these stakeholders to maximize their productivity. With regards to job satisfaction, the firm has subsidiaries in different cities, making it easy for employees to work where they want.
As stated above, the health and wellbeing of employees is a key factor behind the success of Sinclair Group. Individuals who have worked in the organization for more than 75 days are eligible to a medical plan specifically tailored to their health needs. All employees are provided with a health and dental insurance cover. Long and short term disability benefits are also made available as long as the individual is a full time employee. Vacations and sick leaves are also provided to members of staff. After retirement, the workers are assured of an attractive sendoff package. According to Sinclair (1997), all this is done to make sure that the employees are comfortable and feel appreciated by the company.
Elements of Change Occurring in the Institution
Positive change is always advocated for in any business setting. Failure to embrace revolutionary ideas may render an organization redundant. As such, it is important for firms to accept change in order to improve results (Yan & Napoli, 2006). One element of this dynamism is technology. Sinclair Group has introduced new machines and programs to reflect the change in times. The introduction of digital TV is a good example of this. The move is seen as a step to ensure that the company adheres to the government’s directive of moving from analogue to digital transmissions.
Another aspect of change entails the industry and the economy. Today’s market is characterized by competitors who are ready to bring down their rivals. To address this problem, a company should put in place strategic plans to enhance production (Yan & Napoli, 2006). The organization should also strive to satisfy its customers. The introduction of new channels by SBG is seen as a move towards the achievement of this objective. The wide selection of broadcasts ensures that the needs of consumers from different segments of the market are catered for.
Disputes are known to spur changes in contemporary business firms. Clashes between different companies may force players to improve their production activities (Brown, 2011). In spite of this, the management has to make tough decisions to save the company. The termination of the contract with UPN, as cited earlier in this paper, is an example of such a scenario. The decision was made to benefit SBG.
Final Strategic Choice
Sinclair can adopt a number of strategic plans to improve its performance in the market. One of them involves creating a working environment that is appealing to existing and potential employees (Brown, 2011). Another alternative entails the introduction of incentives aimed at boosting the morale of members of staff. The two strategic choices will help the company maintain its development thrust and come up with an ‘inviting’ workplace for existing and future workers. The management should pay attention to the welfare of all employees, especially the news anchors.
In business, what matters most is the outcome of a given activity or input. Members of staff play a major role as far as the achievement of the objectives envisaged by the management is concerned (Robbins & Judge, 2013). As such, it is important to ensure that they are comfortable when working. The comfort will boost their spirits and enhance productivity. For this reason, SBG should continue treating its employees as members of a family. The management should continue providing the workers with the wide array of benefits that are currently available to them. Such perks as vacations and medical cover for full time employees should remain.
According to Robbins and Judge (2013), strategic management is an art. It involves evaluating and implementing a wide range of ideas believed to be of benefit to the organization. In most cases, this role is played by senior managers on behalf of the shareholders or owners of the business firm. Strategic planning is used more in business organizations than in other establishments. It is believed to be the answer to most of the problems facing the contemporary firm. According to Yan and Napoli (2006), a given business needs a good plan to improve its chances of success in the market. The management at SBG should take note of this reality in their efforts to implement the two strategic alternatives suggested in this report.
SBG was the first telecommunications firm to air UHF signals. As such, the Sinclair family believes that other companies are following their footsteps. The company should uphold this culture to groom innovative and daring employees. Workers feel comfortable when they are operating with an environment that is appealing to them (Yan & Napoli, 2006). The benefits provided by the management are enough to motivate the workforce. SBG should also ensure that the working environment recognizes talent. Employees should be encouraged to discuss their career visions with supervisors. In addition, a set of ethical standards should be adhered to. The adoption of these strategies will help the firm retain its leadership position in the market.
Summary
Sinclair started operating as Chesapeake Television in 1971. The name was changed to SBG in 1986. It was founded by an engineer with a vision to broadcast in UHF signal. His sons took over in 1990. The company went public in 1995. To date, the Sinclair family controls a major portion of the firm. Technology and other factors have brought about changes in SBG.
The organizational structure in SBG is similar to that in other similar enterprises. It follows a hierarchical order. The President and CEO is the overall leader. The chief is supported by vice presidents, the board, and the employees. The management respects the diversity of members of staff. In addition, effective strategic plans have been put in place. However, to sustain its performance in the market, the company should adopt new plans. The strategy will help improve the productivity of existing employees and attract potential candidates.
References
Brown, D. (2011). An experiential approach to organizational development (8th ed.). Upper Saddle River, NJ: Prentice Hall. Web.
Fred, D. (2013). Strategic management concepts: A competitive advantage approach (14th ed.). Upper Saddle River, NJ: Prentice Hall. Web.
Robbins, S., & Judge, T. (2013). Essentials of organizational behavior (12th ed.). Upper Saddle River, NJ: Prentice Hall. Web.
Sinclair, J. (1997). The business of international broadcasting: Cultural bridges and barriers. Asian Journal of Communication, 7(1), 137-155. Web.
Yan, M., & Napoli, P. (2006). Market competition, station ownership, and local public affairs programming on broadcast television. Journal of Communication, 56(4), 795-812. Web.