Research Korner: Public Administration

TOURISM IN UK

Introduction   Tourism has continued to be an essential component of development planning in nations. In some instances tourism has been perceived as a redeemer to sluggish industries, generating new connections and demands. Specifically, the diverse subdivisions of the tourism industry, such as hospitality, catering, food and beverages, tours, recreational activities and the entertainment industry, transport, souvenir manufacturing and sale are accounted to unlock enormous outlooks for employment and profits to varied populations. Governments, connected business clusters and international financing organizations are inclined to look upon tourism as an uncontaminated industry. (Ghimire, 2001) An element of the tourism industry includes the emergence of theme parks as well as amusement parks. It is this sector where tourism as a recreation is among the emerging industries all over the world. With the impetus provided by United States companies such as Walt Disney, theme and amusement parks have become among the most sought after places for the public. This study will look into the business environment of the theme park industry in the UK setting. In order to coherently discuss the said subject, the paper will be divided into several parts so as to provide a more detailed discussion on the specific issues concerning the theme park industry in the United Kingdom.     The Theme Park Industry   According to a report of the European Commission (2005), the term “amusement park” is used to indicate theme parks, amusement parks and water parks. In the same report, they stated that the past two decades presented an astounding yet constant increase of amusement parks in the region. Along with this increase in the number of amusement parks is the emergence of rides with over 170 kilometres per hour as well as those possessing falls that comprise of over 100 metres. In the context of the United Kingdom on the other hand, the notion of “theme park” has constantly been alluded to the by the critics of the Conservatives throughout the nation’s loss in its industrial base in the 80’s. (Woudhuysen, 2001) However, the industry of amusement parks and theme parks in UK has been “deeply assimilated” in the culture of the said nation.   As Woudhuysen (2001) noted in his study, the notion of theme parks and amusement parks have similar qualities as that of what he noted as “fairs of old.” He claimed that the amusement parks of today provide entertainment to the public by means of performing arts. Actors in costume as well as musical shows still prevail in the industry. However, it is the presence of rides and other “electromechanical delights” that pulls people in coming into this place nowadays. To some extent, this still reveal some sort of emulation of the fairs of old. These theme parks continues to allow the attendees to participate in the fun and games provided for by the theme of the place. The presence of such rides and electromechanical delights makes this mission of the theme parks to happen.   Among the major them parks in the United Kingdom includes Alton Towers, Thorpe Park and Chessington World of Adventures, and Drayton Manor Park. These establishments make over ₤30M annually and attract several millions of visitors yearly. (Woudhuysen, 2001) There are other parks that focus more on the “theme” rather than to the thrills provided by the rides in it. There is the Centre Parcs, which is a Dutch theme park, focuses more on the provision of “sports, leisure, and environmental facilities, using a blend of sophisticated technologies.” (Woudhuysen, 2001) Another is Warwick Castle. It is a 60 acre park which focuses more on the medieval themes. Thus, activities such as jousting and archery are among the more favourite of those in the visitors.               Stakeholders in the Industry   According to the report by the European Commission (2005), there are three sectors that comprise the industry. These include the rides manufacturers, the amusement parks, and the people working in these amusement parks. The manufacturers of the rides are generally represented by the European Association for the Amusement Supplier Industry (EAASI). On the other hand, the amusement parks are represented by the European Federation of Leisure Parks (Europarks). Similarly, the said workers in these amusement parks are represented by the European Showmen’s Union (USU/UFE). These three players are considered as the major stakeholders in the industry of theme parks and amusement parks.   The European Association for the Amusement Supplier Industry (EAASI) was established in 2000. Its main mission is to raise the industry profile of ride manufacturing and tackle issues regarding their trade particularly with regards to safety standards, European legislation, and international relations. The European Federation of Leisure Parks (Europarks), on the other hand, was established in 1981 represents over two hundred amusement parks in Europe. Similar to that of the EAASI, the intention of Europarks is also geared towards several agenda. However, the prevailing one is the maintenance of their reputation of safety among the members.   Responsibilities Present in the Theme Park Industry   In the said industry, it has earlier been noted that the existence of rides and other “electromechanical delights” has been the main attraction for theme parks. It is thus the responsibility of the members and players of the theme park industry to carry out risk assessment procedures with regards to these rides particularly with its effect to the consuming public. This means that the amusement parks have a responsibility to its consumers with regards to the effects of their normal operations and abnormal operation. The normal operations constitute the occurrence where the rides are operated as planned. In this context, the consumer may possibly encounter dizziness or nausea as a result of rides with “extreme thrills” involved. On the other hand, the abnormal operations constitute events where the ride does not acquire the intended purpose which normally brings about accidents. This could provide consequent injuries such as bruises, trauma, or even death. The report of the European Commission revealed that there have been 19,000 injuries that have transpired throughout the member states. (European Commission, 2005) Moreover, the table below summarizes the recent accidents that took place in UK concerning theme parks.   Policies and its Effects on the Industry   In 1997, the UK Health and Safety Executive presented a publication regarding the safe practice of fairgrounds and amusement parks (HSG175). The said guideline provides courses of action that intends to manage the risk levels of the rides and other operations that are carried out in amusement and theme parks. In its section F, it takes into consideration the duties of the controllers, purchasing and selling of an attraction, adjustments and fixing of the machines, efficient maintenance of the rides, existence of a safe system of operation, proper selection and training of employees, and the proper procedures once an emergency transpires.   However, compared to its contemporaries in EU, this piece of legislation is weak considering other members of the union have enacted specific laws regarding the conduct in Amusement Parks. Such countries include Ireland, Italy, Netherlands, Portugal, Spain, and Sweden. As compared to the legislation provided by the said countries the one presented in UK is non-regulatory in nature. This means that the failure to follow such actions stated in the said guidelines will not necessarily place the Amusement parks in direct liability once any abnormal operations take place.   Conclusion and Recommendations   The theme park industry in the United Kingdom is continuously a growing area. However, the discussions above revealed that it has been marred by accidents in the past years. The existence of such risk in these areas defeats its purpose of providing fun and recreation for the consumers. It is thus recommended by this study that the government of UK create an actual law that regulates the industry. This will be able the government to effectively control the industry by the provision of sanctions for breach of such laws. The current presence of non-regulatory measures provided by the government does well to the industry. However, these non-regulatory measures are only effective when the industry supports these regulations. It is the position of the paper that the government should step up and create a model that would establish a safe and risk free industry among amusement and theme parks.

TOURISM IN UK

Introduction Tourism has continued to be an essential component of development planning in nations. In some insta...

IMPROVING VOCABULARY AND COMPREHENSION SKILLS IN ESL STUDENTS THROUGH LANGUAGE PROFICIENCY, CRITICAL THINKING AND STUDY SKILLS

CHAPTER 1   Introduction               This paper proposes a research study that will test and determine the effects of language proficiency, critical thinking, and study skills approach on improving the vocabulary and comprehension skills in English as Second Language (ESL) students. The aim of this paper is to determine and examine the specific advantages and disadvantages of the three approaches mentioned. The purpose of this study is to build new theories in ESL learning and to further contribute on knowledge about ESL learning and teaching.             Statement of the Problem                 Currently in the United States, there is great impetus for ESL programs because of the continuous increase of non-English speaking immigrants in the country since the latter 1990s (Schmidt, 2001; Kuntz, 2003; August, 2003). Immigrants who cannot speak fluent English cannot contribute much to the American society because of their limited capacity to comprehend and communicate with the American people. The effort made by the government to ensure that these immigrants develop the will to learn English is through a constitutional amendment that English is the official language and the state requirements that citizens need to possess proficient English skills (Kuntz, 2003). As a result, there are now many types of ESL programs being implemented by different schools.               Improving the vocabulary and comprehension of students are ESL teaching strategies that are usually approached with language proficiency improvements, critical thinking, and study skills. However, such ESL programs are still misunderstood and are not yet proven effective (Zen, 2001). Zen (2001), with a number of actual cases reviewed, concluded that ESL education fails because the programs hold no standards or clearly or clearly defined expectations for their learners. Furthermore, Zen (2001) emphasized that ESL students are not well understood and adequately addressed. Moreover, another problem is the lack of qualified and trained teachers to do the job (Zen, 2001).   Zen’s (2001) conclusion as well others that will be discussed in the second chapter indicate that continuous evaluation of different approaches on ESL learning and teaching is needed and will continue to do so unless results will show that more and more immigrants are becoming proficient in English with such approaches.   Objectives of the Study                 As mentioned, the aim of the study is to measure the effects of improving language proficiency, critical thinking and study skills of ESL students on their English language vocabulary and comprehension. The following objectives, on the other hand, will be addressed in the study: 1.         To determine if it is important for ESL teachers to focus on the language proficiency, critical skills, and study skills of their students? 2.         To determine the current advantages and disadvantages of ESL teaching instructions in improving the language proficiency, critical thinking and study skills of ESL students. 3.         To contribute to ESL research and discover new theories that may help improve ESL teaching instructions.   Significance of the Study                 The study is important because it may contribute new knowledge on ESL teaching and learning, specifically the importance of focusing on several areas such as language proficiency, critical thinking and study skills.   Furthermore, it is significant to ESL students because it may help them understand more about the skills they need in learning English as fast as possible. It may also help them reflect on their English language skills and may be influenced to improve them.   Also, this study is significant to ESL educators because it will help them identify several issues that they can reflect on their teaching styles. The findings that will be collated from this study may also help them improve their teaching skills by knowing which areas of learning are important for students.             CHAPTER 2: LITERATURE REVIEW   ESL   The need for ESL programs is imperative because of the increasing number of immigrants in the United States (Ignash, 1992; Schmidt, 2000; Kuntz, 2003; August, 2003). ESL programs are programs where the primary language of instructions is English and students receive services in various proficiency levels – novice, intermediate, and advance – in program types such as pull-out classes, class period and resource center (ERIC Digest, 1993; North Carolina State Department of Public Instructions, 1995). ESL is different from bilingual teaching because unlike the latter, ESL convey academic content in the absence of the student’s native language (Walling, 1993).               According to Walling (1993), the goals of ESL instructions are simple. They are to: teach students English; maintain and produce academic progress; provide for the student’s integration into the mainstream of school and society; and validate and preserve student’s native language and culture (Walling, 1993). Walling (1993) also emphasized several important points to remember such as the need for the student to maintain academic skills along with language skills, as well as the importance of parent involvement and validating the culture of the student.               The Federal Monitoring Guidelines stated that in order to determine the progress of the students in ESL, one must examine the following: the need for proficiency in both primary and secondary language; the ability to comprehend and interpret text at the age and grade-appropriate level; the ability to understand the language of the teacher, comprehend information, and follow instructional discourse; the ability to produce written text with content; and the ability to use oral language appropriately and effectively in learning activities (Grundy, 1992).               In terms of effectiveness, ESL is still questionable. Zen (2001) stated that there is still a prevalence of poor outcomes in ESL programs and reasons behind those failures include poor quality of teachers, lack of service, and lack of well-established curriculum and assessment system. It does not hold high expectations for ESL learners and teachers have no guidelines to follow when teaching ESL (Zen, 2001).               Brigaman (2002) also stated the need for effective teachers and learning environment in teaching ESL. The school climate should be supportive of the program and the learning environment customized (Brigaman, 2002). There is also a need for systematic student assessment, staff development, and home and parent improvement (Brigaman, 2002).                Kuntz (2001) investigated the emergence of ESL instructions in Madison, Wisconsin and found that there is a great demand in the area for such a service. Kuntz (2001) also found that there is indeed a lack of standard on ESL instructions because the study shows that curriculum varied widely in different institutions. Kuntz (2001) stated that some programs provided a text book and a brief curricular plan, while others supplied teachers with a library of materials and encouraged them to develop a curriculum based upon student needs. There are still issues such as lack of Federal guidelines and assessment, as well as licensing and salaries of teachers.               Braine (1993), on the other hand, investigated the placement options on ESL high school students. Braine (1993) argued that ESL students excel better when placing them in classes that best design their needs. Braine (1993) stated that mainstreaming ESL students is detrimental because they may feel penalized for being culturally diverse and may affect their performance. However, Braine (1993) stated that special classes for ESL students are implemented only by few schools because of barriers such as: lack of sufficient ESL students to justify special classes; special classes may be seen as remedial; can be seen as a form of remediation; and there are problems in creating new programs. There is, however, several types of ESL classes and they often include instruction in listening comprehension, speaking, reading, writing and grammar (Ignash, 1992).   Language Proficiency               Chen (2000) stated that ESL student writers are frequently labeled as having poor language proficiency skills, poor writing skills and poor organizational skills. However, in Chen’s (2000) study, it was found that they have language and writing proficiency, but the writing proficiency is closely related with their native-language writing. Furthermore, the English proficiency of ESL students works with their writing expertise.               ESL proficiency tests take many forms. Christopher (1993) stated that this may involve placement tests, multiple choice tests with vocabulary, grammar and reading comprehension sections; writing tests; and listening tests. However, there are still doubts on whether these tests measure language proficiency among ESL students effectively. Christopher (1993) examined the validity of testing through writing scores and found that they are not effective in measuring language proficiency among secondary and university ESL students.             Proficiency in the English is continuously being pushed by the government as personified by the No Child Left behind Act. In the Reading First program, all schools are held accountable to ensuring that all students know how to read by third grade (Antunez, 2002). It promotes explicit and systematic instruction in: phonemic awareness; phonics; vocabulary development; reading fluency, including oral reading skills; and reading comprehension strategies" (Kauerz, 2002; Antunez, 2002). However, the problem with these instructions is that they are not specifically designed to educate foreign students using foreign language as their first language.   Critical Thinking                 Critical thinking is also being claimed as important tools for ESL students. For instance, Chamot (1995) stated that ESL teachers have to turn the classroom into a community of thinkers. In a particular control group study, it was found that critical thinking skills can indeed make a different for ESL students (Davidson and Dunham, 1996). Critical thinking-based instructions have been found more effective than that of content-based instructions in ESL (Davidson and Dunham, 1996).               The rationale for critical thinking is that students learn to think about their own thinking and reflect on the ways to which they learn. They basically discover why they learn and why they fail to learn (Sapp, 2002). However, critical thinking instructions are also being criticized in its application to ESL teaching. Curry (1999) explored critical thinking in ESL and found that there are many limitations in its incorporation ESL instructions. For instance, critical thinking is not clearly defined and there is a lack of guidelines that would better explain this approach.   Study Skills                 Peniston (1995) stated that there is a need for educators to improve the study skills of their students to improve problem-solving abilities and study habits. Several study skills that were found useful include: survey, question, read, recite, review; paraphrasing; guided questions or self-questioning; heuristic problem solving; keyword method; pegword method; and first letter mnemonics.               The Indiana Career and Postsecondary Advancement Center (1996) stated that improving the study skills of students is necessary in earning better grades and making the most of their talents. Study skills basically involve planning and critical thinking as well. It also emphasizes the use of text books, better listening skills, and organizing study tasks.             Sinfield (2000) examined if study skills empower students and the results show positive relationship between the two variables. The study shows that students are often anxious and require support from teachers and classmates to ensure that they are on the right track. Study skills may help keep them on that track and give them the proper skills to execute common academic tasks. Other Studies             Hayes and Salazar (2001) conducted a districtwide evaluation of the instructional services provided to English language learners (ELLs) enrolled in Structured English Immersion classrooms in grades 1-3. Two models were used in the study: teaching in English, with the primary language for clarification, and teaching primarily in English, with other instruction in the primary language. They found that the predominant language of instruction was English. Listening, oral reading, oral speech production, and writing were most often observed. There were few English language development lessons or experiential hands-on learning activities, and very little primary language support was seen. Considerable confusion occurred about the definition and implementation of the two Structured English immersion models, resulting in uneven implementation of the program. Teachers noted a lack of resources and training. They also reported that parents could not help students with homework. Seven appendixes include information on the study and tables and charts on ELL education.               In another study, Ma (2002) concluded that 1 year of English instruction is generally inadequate to prepare ELLs to succeed in general education classes taught only in English. Also, Ma (2001) found that achievement gaps between native English speakers and ELLs are widening, and teachers are seriously demoralized. CHAPTER 3     Research Design                 The study will use interpretivism as its research philosophy. Interpretivism is the necessary research philosophy for this study because it allows the search, the ‘details of the situation, to understand the reality or perhaps a reality working behind them (Remenyi et al., 1998). On the other hand, the design will be deductive, which is dedicated to deducing hypothesis or expressing and testing hypothesis in operational term.   Data Collection               Data collection strategy will be pretest-posttest control group approach. Here, a group of research participants are randomly assigned to an experimental and control group. Both groups of participants are pre tested on the dependent variable and then post tested after the experimental treatment condition has been administered to the experimental group. This approach controls for all of the standard threats to internal validity. Differential attrition may or may not be a problem depending on what happens during the conduct of the experiment. Data Analysis               The latest SPSS software will be used to analyze the results of the pretest-posttest control group analysis.   CHAPTER 4     Implementation Plan                 The study will have four stages of implementation: the preparation stage; the data collection; the analysis stage; and the documentation stage.               The first stage or the preparation stage will deal specifically with the preparation of materials that will be needed in the study. This stage also involves the search and review of literatures related in the study. This involves choosing the project site, the respondents, and the persons that will help in the control group process.               The second stage, on the other hand, will involve the whole control group process. The project site will be two ESL private tutoring classes composed of 6 students out of a population of 25 from a private Tutoring Academy. The students will be of a diverse background and will be referred by a local community college. The 6 will be divided into two groups (3 on each). The first group will be the control group, while the second will be the experimental. The control group will take ESL tutoring without emphasis on language proficiency, critical thinking and study skills instructions. On the other hand, the experimental group will be given language proficiency instructions, critical thinking instructions and study skills instructions. A tutor will also be hired and will meet twice a week with the 6 students at a local public library in order to implement the plan that should last 8 weeks. These students must take a placement or Pretest in order to place them in any of five ESL levels for tutoring. The pretest will be administered at the beginning and then a post test will be conducted. The control group will be a double-blind test, meaning the two groups of students.               The third stage will be the analysis stage and will involve the comparison of the results of the study. An SPSS analysis will be used to compare the grades of the students on the tests given during the control group design process. On the other hand, analytical interpretation will be used on the observations and interview data will the students.               The final stage will involve writing the conclusion and recommendation for the results as well as the documentation of the project.

IMPROVING VOCABULARY AND COMPREHENSION SKILLS IN ESL STUDENTS THROUGH LANGUAGE PROFICIENCY, CRITICAL THINKING AND STUDY SKILLS

CHAPTER 1 Introduction This paper proposes a research study that will test and determine the effects of language p...

Hospitality Industry Facilities

Facilities in Hong Kong hospitality industry are not only taking the crucial role as a source of competitive advantage for businesses but also serve as the symbol of the renewed vigor of the industry to bring back the lost opportunity during the SARS epidemic in 2003.  Particularly in hotel category, the Department of Health issued the category guideline in maintaining a SARS-free environment.  This generally involves wiping of 1:99 bleach solution to floor coverings, beddings and furnishings with stronger 1:49 solution in case of body fluid contamination on the facilities.  There is also a provision to regularly clean air-conditioning systems and immediately wash laundries (The Government of Hong Kong, 2003).  As a result, managers are expected to review the current expected life span of its faculties both in functional and aesthetic aspects.  As there is a need to apply solutions to facilities and regular cleaning, wear-and-tear including mishandling are probable risks.  There is also an apparent call for managers to secure a pool of talented workers/ employees since shortage of labor for the category is experiencing a decline (Lee, 2006).  In conjunction with this, incentive and promotional programs is an engagement appropriate not only for the purpose of retaining labor, but more importantly, to obtain the skilled and experienced ones.  In this post-SARS period, managers are challenged to find the right people who can deter one of the biggest foreigner-expeller in Hong Kong’s tourism history.     Focusing further in the tourism sector which remains as the catalyst of future decisions of hospitality industry strategist, hotel category recorded the highest revenue per room in 2004 since the 21st century and increases its tourist arrival year-on-year at 40%.  This is an indication that not only this category but also other categories like restaurant, clubs and bars have already renewed the trust of foreigners after the last year’s SARS epidemic.  The figure, thus, is expected to remain at an increasing rate due to the supporting industries like the opening of Asia-World Expo, the 64-hectare Wetland Park and Hong Kong Disneyland (Hospitality.Net, 2005).  Since these attractions are catered to different segments of the international market from business to family activities, the hospitality industry is also expected an upgrade/ expansion of its facilities for businesses to survive the competition and reap a share of the industry profits. In effect, it is strategic for managers to get involve with property, sales and financial departments planning and implementation schemes.  It is the former responsibility to integrate the inputs of these key departments particularly in facilities management.  Questions like what to do when ergonomics in room spaces but the furniture that cause such difficulty is necessary due to its function or is there a need to replace the old telephone with internet facility to obtain new business model?  These queries highly involve integration for better understanding of cost-benefit analysis.  Commonly, business managers are gifted with conceptual ability to see the big picture in which other business units’ technical opinions have oftentimes overlooked.       Undoubtedly, the hospitality industry places its big investments in phasing-out, improving and acquiring facilities as the demand for its services are not only supported by relatively high purchasing power of local clients but also the tourist who come for personal, family and business activities as well.  Facilities are considered as tangible resources of the industry wherein individual firms can derive competitive advantage.  A restaurant which has an efficient cooking platform can serve numerous amounts of customers with speed and quality.  It can also definitely cut costs from delay.  This advantage, however, has limitation to be sustained since competitors can simply buy the same brand or design of such facility and still enjoy its efficiency. Without triggering right synergy of capability, facilities itself are measured according to its flexibility, reliability, design, efficiency and aesthetic appeal.  It means that the more a client/ customer can maximize its function at least cost, the more satisfaction its can provide him.  Such an event can produce repeat and regular customers for the benefit of the industry.  As a result, the management must continuously monitor its facilities current performance and so facilities audit becomes crucial.  Second, it should be able to reserve a certain budget to resolve problems that occurred in audit.  Third, it should determine the need for an action on whether to replace or improve the facility that is evaluated with underperformance rating.  While this process is not automatic for all industry players, the manager’s role of identifying the effects of such actions to the reputation of the business is the most vital input of all.             As Intercontinental Hotel in Kowloon faces a waterfront location (Intercontinental Hotel, 2006), this serves as an advantage to attract customers.  The positive externality of the view has provided the hotel with value-adding capability without cost directly applied in improving the view itself.  However, the internal design of its rooms and lobbies are influenced by the view requiring transparent large windows with movable curtains.  Thus, the advantage is not merely a walk-in-the-park for the management.  Since the attention of the customer is in the harbor view, maintaining polished/ durable windows, clean curtains and telescopes are value-adding importance to realize the advantage of the view.  It is also a useful strategy when the management coordinates to the local government in enhancing the surroundings of the harbor.  This would entail donations or hosting of programs (firework display) for the improvement of the vicinity.             It is also to note that the hotel caters guests that are mostly foreigners.  In this respect, it is appropriate that its modern facilities inspired by feng shui are explicitly explained to them.  This is to avoid dissatisfaction due to inconvenience in using the facilities due to location restriction of the Chinese-originated tradition.  Foreigners may not well-accustomed with such that can undermine the modernity of the hotel’s facilities.  As a result, providing a comprehensive leaflet/ presentation of the interior of the rooms and the feng shui rationale of them becomes helpful.  This would prevent the customer value to facilities being stranded in cultural differences.  In effect, the intention of the management to highlight its globalized accommodation expressed in its facilities is maintained.             Since the suite rooms are commonly the ones that enjoys the harbor view at the comfort of their beds, the guest room customers are induced to locate the nearest spot within the hotel in order to share the experience.  To enhance the convenience of this external facility, the management is expected to create an internal facility in which guest room customer will conveniently have a harbor view.  This can be done by providing a common open floor wherein they can socialize as well as observe the tranquility of the view.  Elevators are effective mode of transport to access this specific floor and so additional property development is required.  Safety of the floor is also a prominent concern.  As a result, there is the need to install security bars and fences in a manner that there will be no interference to the aesthetic value of the view.             The facilities management of Hong Kong’s hospitality industry is expected to receive high influence from cultural elements due to the bulk of foreigners visiting and using its services.  In this aspect, it is required to balance its emphasis between Chinese traditions and adaptation to the vast cultures.  It is important that convenience is prioritized in facilities of hotels while unique tradition can be applied to facilities such as restaurants.  The basis of such strategy is the nature of service.  Although at least half of 2004 visitors in Hong Kong are Chinese, the other half remained a vast mixture of nationalities.  The example of how Intercontinental Hotel generalized the feng shui in its major facilities like I-Spa may have deducted customer value rather cultural preference. This calls for the consistency of modern theme all throughout the hotel.             Applicable to first class hotels like Intercontinental, the installation of wireless internet connection could be a daring but value-adding feat.  Wealthy customers want their modern experience to show more and the latest technology could provide them of such.  Further, the customization of food service from the restaurants who basically receive a pool of foreign customers must be included in planning and continuous differentiation of buffets being served.  The opening of borders of the Mainland has also invited not only businessmen but also foreign nationals who are brought by their companies to work in China subsidiary.  Also, the neighboring Macau continuous to be the one of the center of gambling in Asia that demand for hospitality centers will continue to intensify.             Finally, as this globalization and technological trends shows, facilities management in hospitality industry remains under the command of its suitability to serve different cultures.  Being modern is one way to integrate the cultural differences of customers.  As a result, it is of management decision on whether to make their service exclusive for several cultures like British or Chinese and exposed itself toward cultural constraints to satisfaction.  This caution is on top of health and safety issues about probability of another SARS outbreak.  In effect, there is a need for local policy to be strict in accepting foreign visitors in terms of pre-deployment.  In the contrary, at the time they have passed the requirements and are able to land in Hong Kong border’s they must receive the best hospitality service available.    Credit:ivythesis.typepad.com

Hospitality Industry Facilities

Facilities in Hong Kong hospitality industry are not only taking the crucial role as a source of competitive advantage for business...

CASE STUDY OF NEWS CORPORATION ACQUISITION

I.  Brief Introduction Acquiring DirectTV (DT) has been considered the “missing link” of News Corporation’s legacy to be the worlds’ biggest media company.  The latter firm is described to be highly diversified internationally (see attach 1). Despite of this, New Corporation (NC) Founder and Leader Rupert Murdoch saw great opportunity of the US market that made him persistent in the acquisition.  It is on the verge of another negotiation called the “second chance” after the Federal Communications Commission (FCC) disapproved the merger of DT and Echo Star.  In view of the first rejection of DT and defeat against preferred bidder Echo Star, the “second chance” requires rationalization to complement Murdoch’s visionary and passionate leadership with objective analysis of the situation.  Presented in this consultant’s paper are analytical discussions about SWOT, key industry success factors, Porter’s five forces model and other factors relevant to NC decision.  These analyses will lead the discussion to proposing strategic actions and recommendation of an action plan.    II.  Assumptions             For NC, there are other investment alternatives other than DT acquisition.  However, it is to be assumed that NC is heavily controlled by Murdoch and his direction and decisions are impeccable for a family-controlled firm.  Thus, our SWOT analysis will measure the prospect of DT acquisition considering that Murdoch wants a presentation that will result to a conclusion to accept, reject or modify his decision.  In key industry factors, it is assumed that NC has no significant infrastructures in the US generally in pay television (although it has television and cable programming stakes, these are rather segmented) particularly in the satellite sector.  This makes technological, value chain suppliers, legal environment and satellite sector supremacy crucial to its success in relation to the outcome DT acquisition strategy.             In Porter’s five forces model, it is assumed that several facts will hold true in the future such as 3:1 satellite to cable subscription rate ratio, DT is very liquid compared to NC since it has GM to back it up and other facts in the case.  The program access rules is viewed as very critical factor in the acquisition since it would lessen the competitiveness of satellite providers due to the fact that there are plenty of cable providers that can take away crucial program partners up to the point that there are sub-optimal programs remained for DBS sector.  The demand will become sensitive as cable is able to mimic the interactive, program content and quality of its DBS counterparts at a lower price.  In effect, the forecasted 2002-2007 accelerating demand for DBS and stagnant demand for cable may not just happen.              Selecting strategic options is rated based on fundamental elements of investing particularly from the shareholder’s point of view (since Murdoch is the major stakeholder).  It is further assumed that even though Murdoch is very eager to have 100% ownership of DT, he has the sense of being rational which is typical for an experienced leader and manger.  The rejection of some options is duly assigned because NC is assumed to be a risk-taker for a rational amount of returns and its US subsidiaries are confronted with heavy competition thus minimal returns (like book publishing).             Lastly, recommendation and action plans do not predict the outcome of the chosen strategy to prevent any inconsistencies in the post-implementation stage.  It should be noted that consultancy generally provide alternatives and select the most feasible option above all.  The chosen option is analyzed based on the presented literature and is strategic in nature.  Operational and contingency actions from NC are necessary in the post-strategy implementation to test the effectiveness of the given strategy.    III.  SWOT Analysis                The objective of this analysis is to determine if DT acquisition will bring desired results to NC (Hitt, Hoskisson & Ireland 2003).  Generally, NC especially Murdoch considered the action to complete their quest towards being the world’s biggest media company.  However, to obtain this, interdependence of specific advantages from acquisition should be realized while resolution to apparent problems should be planned and successfully implemented (see attach 3).  This section will provide the necessary inputs to be able to evaluate both favorable and unfavorable factors specific to NC and DT including the uncontrollable factors in the external environment.  By doing so, issues illustrated in attach 3 can be easily evaluated.  1.  Strengths                 These are factors internal to the firm that can be controlled and whose outcome can be influenced.  It can be people specific or the result of organizational effort (Performing a SWOT analysis 2001).  The discussion is placed within box illustrations to clearly show the implications of the strengths to DT acquisition.  Strengths are derived from those NC and DT factors that reinforce advantages or mitigate apparent problems from the acquisition being prospected by NC.               According to Hitt et al (2001), market power is defined as “when a firm is able to sell its goods or services above competitive levels or when the costs of its primary and support activities are below those of competitors”.  As shown in attach 1, NC has satellite business in other regions that can result to economies of scale when combined with DT resources.  In the same manner, the technologies and alliances of DT (see attach 4) can upgrade those satellite businesses.  Scenarios such as additional programs and product innovations that lead to higher customer satisfaction can be priced lower than expected.  The mitigation of trade-offs between price leadership and differentiation strategies (Hitt et al 2001) would be possible.  The ready market of the two firms also intensifies the application of these possibilities and lowering the risk of failure of launching a new product or new innovation.             For example, the first mover advantage of DT’s broadcast spectrum and orbital slots which operate as an international satellite can improve the operations of BSkyB in Europe and Star TV in Asia.  The interdependence of the two firms will also result to greater programming in their markets to address the increasingly demanding customers.  Since NC is completely vertical, the costs of acquiring inputs and distribution can be obtained in bulk and hence minimize the cost of production and distribution per unit compared previously (Sloman & Sutcliffe 2001).  These inputs and distribution channels can be likewise outsourced to business partners of DT in the US like providers of interactive television while Best Buy, Radio Shack and the like will sell products of NC.             NC has cable programming business in the US but no satellite infrastructure.  In 2002, weaker cable operators who cannot recoup the substantial cost of equipment went bankrupt.  With this example, NC’s unpredictable cash-generation capability is very much vulnerable particularly constructing plants when market is already saturated with too many cable operators and few but fierce satellite firms.  Further, the primary option of debt financing by Murdoch can make new product development very risky.  Its 1990s history suggested that to be able to survive with billions of debts, it should be long-term and be able to acquire the better performing companies.  The latter is supported by the fact that DT is the third largest pay television operators in the US and considered to be one of the most profitable pay television providers in the region from its 2001 average revenue per subscriber on a monthly basis.             The relief from establishing infrastructures, suppliers, customers and pay television industry experience will not only lead to speed-to-market but also avoid excessive competition from several cable providers.  When the competition ensues, NC will most likely be driven away from the pay television industry due to inability to include the mandatory local channels because of lack of industry familiarity.  On the other hand, if it aspires to compete in the satellite sector thinking that only two firms exist, it will be bugged by DT and Echo Star’s “vigorous rivalry” and their technologies, local channels and alliances.  By acquiring DT, it will not only prevent the vast cable provider competition, but more importantly, it will be able to be installed in a competitive position initially. 2. Weaknesses             As exemplified in strengths section, the focus is on how DT can improve the business of NC with little emphasis on how NC and DT merger performs in the post-acquisition.  This is seemingly more fitting to grasp the maximum potential of DT within NC attributes.  This sub-section will lead to the right column of attach 3 which is the problems associated in acquisition.  We will use box illustration and text discussion again.                Comparing attach 2 and 4, except for major acquisitions of DT to deter competition, NC relies heavily in its ability to negotiate acquisition especially to save sinking businesses.  In its history, the target usually is a competitor or a business arm of a competitor.  If there exist alliance or joint-ventures, these are very modest.  On the other hand, DT successfully implemented strategic alliances to obtain its objective on one hand and create business relationship on the other.  In effect, it can be derived that NC is more uncompromising compared to DT.  Being a family-controlled corporation could be the rationale behind this.  However, the business and financial flexibility attributable to DT (as it can prevent additional investment outlay by leaving the activity to a business partner) might feel threatened for its liquidity due to debt financing of NC and its reluctance to cooperative business.             Another, NC might loose its economies of scale and efficient allocation of resources in its vertical structure due to differences with DT strategy.  Aside from alliances, which NC can find as “new”, DT may have resources and capabilities which complement in unique ways.  Alliances and private synergies (Hitt et al 2001) with DT would necessitate the complete vertical integration of NC to adapt as an “incomplete” vertical structure.  Again by looking at attach 2 and 4, the different success factors of the two firms ultimately suggest that organizational culture and leadership intentions are opposite.  Investors are also active in fueling the future of DT while the family-structured NC holds exclusive concerns to their firm.                                                   This preceding statement can be related to DT being an innovative firm because decisions are more decentralized.  On the other hand, NC relies to their visionary leader and its conquest.  Questions of organizational motivation from DT in the planned merger may exercise anxiety towards the new environment.  Also, with DT managers is continuously confronted with acquisition clauses from NC, the evidence-supported situation where DT might prevent long-term perspective and reduce their risk-taking level compared to regular operations could deter the future expectations of NC from the acquisition (Krogh, Sinatra & Singh 1994).  Back in the post-acquisition evaluation, DT might loose its innovativeness as the acquiring habit of the holding company NC could undermine this internal strength.  This situation is intensified by the reduction of research and development activities in favor of the more preferred result of NC as cost-savings.  With these scenarios in mind, DT management would have several reasons to ignore NC offer. 3.  Opportunities          These are factors external to the firm that cannot be controlled and whose outcome is less influenced.  It is basically from the influence of PESTEL factors.              Aside from DT’s difficult negotiation, legal constraints in the US are vital barrier for NC to access the US market.  However, when it is able to make the acquisition successful, those constraints can be easily surmounted.  It will also result to a number of cost saving outcomes primarily due to the sharing or resources between inter-regional operations and minimized delay from government intervention.  As a result, gains from acquisition can be realized straightforwardly.  Further, DT competencies and positioning to become the market leader in multi-channel video program distribution (MVPD) can be readily enjoyed by NC as the former already has developed the needed technology to anticipate consumer behavior over a certain period of time in the future.  Several strengths identified earlier can be enhanced if these opportunities are also taken into consideration.  4.  Threats                          On the flip side, PESTEL threats to the success of acquisition pose challenge to NC in rethinking its final decision to acquire DT under this environment.               This threat, even alone, have many implications to the future competitiveness of DT; consequently, on the target gains of NC in pre-acquisition forecasts.  This legal provision allows DT to enjoy inclusive deals together with cable providers affiliated programs.  This also gives DT competitive pricing from those programs and access to top-programs from giant cable providers such as HBO, CNN and sports programs.  When these advantages in favor of DT are abolished, its long-term investment in broadband internet services including the long-term competitiveness of satellite-based systems would be undermined in fulfilling the increasingly demanding consumers.  IV.  Key Industry Success Factors              From this SWOT, the identification of industry factors that are critical to DT’s acquisition can be guided.  This section would present the middle environment, although a more general discussion will be showed in the Five Forces section, in which firm and the general environment are connected.  This is referred to as industry environment.  The purpose presenting this section is to highlight industry factors that make the acquisition reasonable.             NC has the habit of acquiring profitable rivals to save its sinking business and vice versa like its pending negotiation to purchase Vivendi’s Italian pay television firm, Telepiu on the verge of its loosing subsidiary Stream.  This is because such habit diverts its focus to overly acquire without investing in R&D activities.  Whatever its shortcoming and ineffectiveness in the value chain, it resolves them by buying a firm that will not only provide it the “missing part”, but also will drive one competitor away from the market as Stream and Telepiu are direct competitors in the Italian market.  In the same manner, the need for DT’s acquisition is intensified by the following industry factors. 1.  Technological Innovation             One of the cited causes behind the 3:1 ratio of satellite to cable subscription rate is lack of digital channels.  This is evidence that requires an entrant to have sufficient infrastructure and technology to survive the business of US pay television industry.  With NC having zero investment in US pay television industry, pouring substantial amount to build new facilities in the country requires huge financing in which returns are exposed to high risks as it has the habit of debt financing without sure market.  A concrete sample is a number of cable companies who went bankrupt in 2001 and 2002 due to substantial cost of consumer equipment.                DT is founded because of technological development that led it to develop affordable but innovative products.  From this, it obtained one of the US positions for duopoly in DBS market and ranked top three in the industry.  DT’s costly-to- imitate high powered spot-beam satellite intended for additional local channel coverage (DT 7S) and first mover advantage in broadcast spectrum and orbital slots are some breakthrough technologies which not only provides the general advantages of satellite service but more importantly specific additional value for subscribers that cannot be filled with either Echo Star or cable providers alike.  2.  The Benefits and Costs of Backward and Forward Suppliers             The US market can be considered a saturated one in the pay television industry.  Suppliers of raw materials and distribution channels may have created exclusive contracts on certain relationship agreements with present industry players.  Since it is new in US environment, NC would likely miss suppliers who can provide substantial support to its value chain.  If NC has been able to establish expensive and risky infrastructures, it is faced with the second task of “courting” firms in the programming and interactive TV equipment businesses.  It can opt to outsource the latter from its BSkyB but transportation costs will later make it to build factories to manufacture the components of its pay television.  The costs of seeking the right structure of value chain ranges from opportunity lost of valuable time to different markets of BSkyB and DT that would result to undermining the appropriate level of customer service.             DT has its established relationships including most favored nation (MFN) clauses in its alliance contracts.  This proves the purchasing power of DT to compromise favorable contracts.  In addition, its flexible operations and contract relationship to its suppliers like the equipment manufacturers proved to be strong as it able to remove their subsidy as the DT need arises.  This pool of strategic partners are added to a list of distributors of DT’s services and equipments like Wal-Mart and Best Buy including DTs customer-oriented direct marketing through its interactive website and telemarketing.              3.  Legal Environment             As suggested in the opportunities sub-section, cost savings and ease of start-up operations (peculiar to a new entrant in the industry) including sharing the leadership opportunities of DT can be obtained in the acquisition.  The regulatory barriers and its subsequent requirement for local channels, in which NC is unfamiliar with, can be overtaken.  However, the long-term perspective of DT in the direction of the industry might be shook by 2007 expiration of program access rules.  Its competitiveness determined in figuring-out its long-term position would necessitate certain fine-tuning.  It might reduce its investments in internet broadband and other technological breakthroughs due to the future impact of loosing upper hand in programming to subscribers.  With cable television service able to mimic what just DBS providers can offer from improved picture quality to greater channel selection, pessimism is quite an appropriate attitude for DT. 4.  Satellite Pay Television Supremacy             Aside from future success and present status of DT, satellite service provision is said to be more competitive than cable service in the long-run.  The demand for the former will outdo the stagnant demand for the latter in the years 2002 to 2007 wherein 19 million will increase to 26 million for the former while 70 million will persist for the latter.  Even though the legal constraint that may start in 2007 will reduce the competitiveness of DBS in programming aspect, the merger of NC and DT could settle for the lost upper hand in the industry due to NC’s BSkyB operations.                    V.  Porter’s Five Forces Model             To evaluate the attractiveness of pay television industry, there is a need to present the industry landscape.  The evaluation will be based on rating the five forces illustrated in the following presentation.              As explained, an attractive industry is one that can provide the platform for a firm to earn above average returns from its invested capital (Hitt et al 2001).  An attractive industry has high entry barriers, low bargaining power of suppliers and buyers, low threats of substitute products, and not-so-fierce rivalry among competitors.  As shown by the ratings, NC would likely be able to obtain positive outcomes in its US pay television debut except mainly to high intensity of rivalry among its future competitors and partly the threat of substitute products.  As observed, the industry provides two options for an entrant, that is, whether to belong to less innovative but conventional cable services or to innovation-based and value-adding satellite services.              In the cable sector, it will likely be exposed to price competition because there are several competitors that sell less differentiated products.  On the other hand, the satellite sector will obtain its future success as determined by FCC forecasts with continuous innovation; hence, the duopoly sector structure will sell highly differentiated products especially against cable providers.  With reference to high intensity of rivalry, predictability is crucial in order for responses to be easily prepared.  In the contrary, threat of substitute products can be minimized if the sector is able to outperform and continuously improve its services that differentiate it from those substitutes.  With these, it can be said that satellite sector is more attractive sector within the pay television industry.    VI.  Company Analysis             NC is historically known to acquire business units among international firms to obtain advantages of skipping the process of product development, market research, capital outlay and constructing its own experience curve over time.  This strategy is intensified with Murdoch’s leadership encapsulated within one goal: to becomes the world’s biggest media company.  The DT planned acquisition will not make NC the number one once-in-for-all but it will surely increase its market size and technological innovation capabilities that will strengthen the campaign.  With access to North American region particularly the US market, it can realize additional economies of scale and cost savings in its international operations not to mention the bound-to-number one direction of DT in the MPVD specifically and US pay television generally.  VII.  Financial Analysis             Despite of near bankruptcy in the early 1990s, NC had recovered in an upbeat mode in the new millennium.  Year-on-year revenue grew by 10% to US.2 billion, its shares are in better position compared to a rival Vivendi and its loss are relatively modest.  This is possible primarily due its diversity.  It can minimize the loss of an underperforming subsidiary by write-downs and offset those losses by its subsidiaries that are over performing.  Its vertical structure situates it in the position where it can manufacture labor-intensive inputs in cheap salaried countries and bring the produced to a needing subsidiary.  Backing acquisitions through debt financing, despite of relative risk of credit downgrade or insolvency, is minimized because NC is able to secure long-term debt contracts.  Its family-controlled business is retained while expansion activities towards its objective are fairly attained.    VIII.  Stakeholder Analysis             Since NC is less reliant to shareholder funds, potential or actual dissatisfaction to its performance by these so-called co-owners can also be responded with lesser emphasis.  Lenders, on the other hand, are basically concern in the liquidity of NC and less with its future direction.  As long as it profits, lenders will be able to gain the interest and principal payments.  Further, with reference to DTs product and market stakeholders, the acquisition may receive criticisms to customers since it is their concern that another player will pose competitive battle to stimulate efficiency and innovation within the industry.  This will result to what they preferred as lower prices and better services.  Lastly, the post-acquisition stage may form cultural friction between NC and DT initially because of the gap from their acquisition and alliance/ innovation models.          IX.  Portfolio Analysis             There are several integration options that NC can apply in the post-acquisition stage.  It has its television, film and cable programming businesses in the US wherein these can serve as value chain support.  In addition, if NC can be able to make its international resources and capabilities mobile, its satellite pay television in Australia, Europe and Asia can share competencies with DT. X.  Statement of Strategic Options                From the above discussions and evaluations, there are five strategic options for NC.  First, it can acquire 100% stake of DT to obtain maximum control and benefit of the latter resources for its vertical integration purposes.  Second, it can settle a merger with DT with sub-optimal control and benefit of resources.  Third, it can opt to acquire a high-ranking cable provider.  Fourth, it can enter the satellite sector.  Lastly, it can offer acquisition or merger to Echo Star.  XI.  Reasons for Rejecting Some Options             Other options that are excluded in the strategic option listing have their specific reasons why they are so.  There is an option on not to invest in US and divert the funds to intensify product differentiation in other regions.  This is supported by the fact the pay television market in the cable sector are competed by several providers while an alternative of DBS are under legal duopoly.  Another, the BSkyB can penetrate the whole European continent as it already becomes the leader in the UK market for pay television.  In addition, NC has its other satellite provider subsidiaries in other regions like Asia and its home country Australia.  Its acquisition investment for DT can aid operations of these subsidiaries where NC has already established the market and infrastructures.             However, NC will deal narrowly on development of markets not creation of it undermining the prospect of economies of scale and additional market base to absorb possible investments in R&D in which NC has yet to substantially accomplish (otherwise, its habit of acquisition should long gone).  Entering the pay television industry will not only improve the North American cash flow of NC but also exploit the good business environment in the country.  US ranking in terms of providing sound business environment to investors like doing/ starting a business, protecting investors and enforcing contracts are among the top 10 in the world.  In the contrary, paying taxes runs below the ranking at number 30 which is the highest ranking of the country in all its business indicators that means taxes are relatively less burdensome.  In the demand aspect, its 291 million people belong to a high income economy (Doing Business 2006).                Another, it is also an option to alter the planned acquisition instead concentrate on its existing key US business such as book publishing which is said to offset looses in other business units of NC.  In this view, intensifying the scale of this unit can multiply its capability to finance improvements to other underperforming units.  However, the presence of US businesses like television, film and cable programming and their high relatedness to a very promising industry in pay television makes them supporting units to the acquisition.  In addition, the vertical integration structure of NC blends with the idea of supplying some equipments or services of its units to DT.  NC can also replace the significance of some suppliers and retailers resulting to cost savings in the case of post-acquisition stages.                                Lastly, with high motivation to acquire but DT is either not interested or taking too long to make a decision, NC can pursue hostile takeover.  This is when an acquirer does not solicit a bid to the target (Hitt et al 2001).  Yes, NC can go to New York Stock Exchange and try to buy the level of shares in which it can have majority share in the firm.  However, with repurchased programs of DT (Lehman Brothers 2006) on its shares and questionable owning of majority ownership through purchasing stocks, such action may not lead to a successful takeover at the near future.  In addition, hostile takeovers are associated with high managerial turn-over and underperformance of the acquirer in the post-acquisition stages (Harrison, Hitt & Ireland 2001), therefore, all the acquisition costs, transaction costs and high risks involve in the process may not be well compensated by the merged firm. XII.  Recommendation             Based on table 6, acquisition and merger are two of the top strategic options in the lists.  Preferring Echo Star will not only give NC sub-optimal share of the US pay television market but also it may expose itself to some behavioral frictions since they are once eying for the same firm.  On the other hand, choosing to become an independent cable provider will necessitate very substantial investments for construction of infrastructures, hiring of competent personnel, advertising and establishing R&D for the technology development.  In the same manner, being a DBS provider can result to the same expensive investments, and although its regional satellite businesses may help, US infrastructure would nevertheless be expensive enough.             The other three options also provide sub-optimal returns with sector entrance at a much ambiguous revenue generation capability due to absence of market familiarity.  With this, the relative small investments in Echo Star are rather short-lived because its advertising and technology should be enhanced.  The sector entrance, on the other hand, poses high risks with ambiguous returns in which creditors and shareholders (even Murdoch) would not prefer.  The investment that was tied on such options cannot be offset by succeeding returns.             DT acquisition relative to DT merger has expensive acquisition price, with long-term above average returns, higher risks from program access rules abolishment and longer deal negotiation.  On the other hand, DT merger is relatively less expensive, with average returns, lower risks from program access rules abolishment and shorter deal negotiation.  For the merger, it is likely that DT will remain the controlling firm (since there are very few real 50:50 merger deals).  It has definitely adverse implication on NC’s dictum of becoming the world’s biggest media company aside from more specific shortfalls such as inability to integrate completely the merged firm and get 100% benefit from its cash generation abilities and long-term success in the industry.                                  The strength of acquisition option is long-run above average returns while the strengths of merger are cost of industry entrance, risk of program access rules development and speed of entrance.  Managerial motives in NC’s persistent acquisition offer to DT are more eminent than financial ones.  These motives can increase market size, managerial prestige and reduce uncertainty in the external environment (Anand, Houghton, & Neck 2003).  Such factors are convergent behind US pay television industry entrance and being the world’s biggest media company.  Due to this, NC does not see the expensive acquisition price as major factor in the process.  However, it should realize that its 1990s mere bankruptcy was a result of US acquisitions, primarily Twentieth Century Fox, which do not perform according to its expectations.  In effect, a scientific action plan and implementation is necessary to arrive at a guided and final decision.    XIII.  Action Plan and Implementation             As a consultant, it is not advisable for a final decision to be determined in an abrupt manner.  The question here is how to identify the most effective and efficient alternative between the two.  * This includes increasing shareholders wealth, financial synergy through economies of scale, sharing of knowledge and skills and increased control (Anand, Houghton, & Neck 2003).     ** Say, to obtain control, 100% of ownership will be paid US.8 B (fourfold bigger than Echo Star’s offer).  Every 10% reduction from 100% ownership will slash 15% from the original dollar amount.               XIV.  Conclusion             NC particularly Murdoch should not overly rely on managerial motives of acquisition; otherwise, bankruptcy would not forgive his company this time.  The satellite sector within the US pay television industry has cited one threat, that is, program access rules would be expired in 2007.  In effect, DT’s future forecasted positioning in the industry including the direction of subscriber’s demand may turn-out to be overly estimated.  In addition, 100% acquisition may not be possible since the firm is growing and is confident in its future earnings.  This makes merger the fastest and less risky way to US pay television market.  This option can overtake weaknesses of acquisition such as integration difficulties and overly focused on acquisitions of NC since behavioral responses can be more accommodating if DT will remain the holding company.  This fact cannot be undermine by NC as it is in low bargaining position and has not yet establish substantial innovation efforts.  Pushing acquisition could make the cited strengths and opportunities earlier as ineffective in the post-acquisition stages since industry key factors are unable to met by the newly NC subsidiary DT because of human resource turn-over, thus, lost of human capital.  Merger is also a safe way to prevent high risks of legal ambiguity in the future that has demand implications to DBS or cable subscription.            Credit:ivythesis.typepad.com

CASE STUDY OF NEWS CORPORATION ACQUISITION

I. Brief Introduction Acquiring DirectTV (DT) has been considered the “missing link” of News Corporation’s legacy to be the worl...