DC Thomson’s decision to sell off its factory in Dundee was a tactical decision.Distinguish between strategic and tactical decisions.
DC Thomson, publisher of The Beano and The Dandy, has launched its much lovedcomics on Apple’s Newsstand, making these national favourites available to anyonewith an iPad, iPhone or iPod touch.BackgroundDC Thomson & Co Ltd was founded by the Thomsonbrothers William, David and Frederick and has beenpublishing newspapers since 1905. David (DC) ran thecompany and gave the company its name. Today thecompany is run by the descendants of the original founders.DC Thomson publishes a range of newspapers andmagazines including The Courier, the Sunday Post, ThePress and Journal, The Beano and The Dandy. It alsoowns a range of companies including Aberdeen Journals(the publisher of the Press & Journal) and Parragon Books.The company has a head office in Dundee and offices inAberdeen, Glasgow and London.Some of their characters are known the world over including Dennis the Menace andGnasher, Oor Wullie and The Broons.Online BusinessDC Thomson, like most publishers, views the development of the digital sideof its business to be key to its future success. Many of its publications have theirown websites including The Beano and The Dandy with online subscriptions to itsmagazines.In 2009 DC Thomson agreed to buy the social networking site Friends Reunitedfor £25·6 million from ITV. Friends Reunited aims to reunite people who havelost touch with old school friends, work colleagues and such like. Two years later,however, DC Thomson reassessed this value and showed the asset to be onlyworth £5·2 million—one fifth of the price paid. Despite this, by the end of 2011,DC Thomson’s online business increased its share of turnover from 4% to 10%.ClosuresThe move into the digital era has not come without cost. Improvements in its onlinefigures were helped by DC Thomson’s decision to close a print plant in Dundee inlate 2010, with plans to close another in Glasgow in 2012–13. A spokesman said theclosures “are painful for the whole business, but are necessary so that our businesseshave the best opportunity to prosper”. Like all businesses, it is affected by economicconditions and the influence of the internet and its related media.
New PlatformsDC Thomson felt that its move into digitalpublishing underlined its commitment tochildren’s literacy. This is backed by researchinto how comics can help children progressfrom picture books to text. By launchingThe Beano and The Dandy as apps, thisensures children of all ages can read its comics in all types of format. Mike Stirling,editor-in-chief of The Beano, said: “The great thing about the new app on Newsstand isthat it guarantees our fans can enjoy The Beano 24/7”.
SECTION ONEQUESTIONSAnswer ALL the questions.1. (a) Identify the type of business organisation that DC Thomson is.(b) Describe the advantages and disadvantages of this type of business.2. DC Thomson’s decision to sell off its factory in Dundee was a tactical decision.Distinguish between strategic and tactical decisions.3. DC Thomson has offices all over the country with its head office in Dundee.Describe the advantages and disadvantages to DC Thomson of operating acentralised decision making structure.4. DC Thomson could use sampling in order to find out what customers want.Identify and describe 2 methods of sampling that an organisation could use.5. In Option 2, DC Thomson could launch more titles on Apple’s Newsstand app.Explain the effects on employees of introducing ICT to an organisation.6. DC Thomson has a Finance department.Outline the role of the Finance department in an organisation.7. DC Thomson has to motivate its staff.Identify 3 ways an organisation can motivate its staff.
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