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SWOT Viability Analysis

SWOT Viability Analysis on News Corp
Schmitt Management Consulting

Abstract
Buying the newspapers in Rupert Murdoch’s empire is not a viable action for profit today. With the on-going scandal and lawsuit claims, the reputation of the corporation has been damaged beyond repair and your takeover would be fruitless. The future potential regulatory restrictions and fines are unknown today and there-fore leave a large portion of the picture unclear. Being able to hire new staff reporters who have been unmarred by the current scandal will be difficult, and the current staff does need to be replaced to avoid any future problems these recent practices have brought about. The print media is rapidly being replaced by online avenues, so there are few opportunities for growth in the print media. Allowing Rupert Murdoch to accept his own consequences and outcomes of this highly publicized scandal is the best action for you and your future profits.

SWOT Viability Analysis on News Corp
This is a SWOT analysis on purchasing News Corp. After extensive research and analysis I am recommending that you do not purchase this conglomeration of newspapers. There are currently far too many unknowns in regard to the future outcomes for this to be a viable venture.

Analysis
This collection of opinions on strengths and weaknesses has been solely compiled from online research of articles posted on the internet. The articles are based on facts known to reporters concerning the recent phone hacking scandal of the papers and the direct or indirect effects of these scandals. This input ultimately led to my conclusions.
Strengths
Some strengths of News Corp would be the owner’s financial circumstances. In an article by Ross Baker, WhoWhatWhy.com (2011), states Rupert Murdoch has used his wealth regularly to stave off businesses and individuals that his company has illegally damaged. As represented by a pie chart published by BBC News (2011), the newspaper holdings represent about five percent of the empire of the media conglomerate, and News Corp is just one percent of the five. With $32.7bn in total revenue, Murdoch can easily afford the settlements from lawsuits and any fines imposed by regulatory committees.
Weaknesses
The largest weakness is the current scandal of phone hacking. Araminta Wordsworth of the National Post (2012) states “Journalists at the country’s best-selling tabloid feel they are being thrown to the wolves after five of their colleagues were arrested “. And, as usual, it is the cover-up that continues to create more problems. Thomson Reuters (2012) reports there are waves of evidence that the phone hacking policies were wide-spread through-out the company. Deals have been reached in 15 cases earlier this month and another 37 claims were settled in January. The company’s reputation has been damaged extensively.
Opportunities

In an article by Russ Baker, WhoWhatWhy.com (2011), he states “As the news profession shrinks, Murdoch’s control over an increasing percentage of the paying positions make journalists reticent to risk their jobs, or the prospects of future employment, by speaking out about the practices”. Michael Wolff at the Guardian (2012) says that executives fear the troubles that are surely coming. Indeed, the US Justice Department is likely to act against Murdoch under the Foreign Corrupt Practices Act.
Threats
With the prospect of future lawsuits and regulatory fines looming on the horizon, a reduction of the market share is inevitability. Andrew Edgecliffe-Johnson of Financial Times (2012) states ”The costs of the investigations have made newspapers harder for investors to ignore. News Corp has spent almost $200m in legal fees and settlements already, and the lawyers’ bills could continue to rise rapidly if the US investigation turns serious.”
Action Recommended At this time I will advise you to not consider the purchase of Murdoch’s newspapers. The repercussions of the phone hacking scandal are simply too vast to assess at this point. All though the market-share has dropped, the circulation and sales, and the revenue from regular advertisers, the future profitability is questionable.

References
Baker, R., WhoWhatWhy.com. Posted online July 25, 2011.
BBC News, Inside the Murdoch Empire. Posted online July 7, 2011.
Edgecliff-Johnson, A., Financial Times. Headline-grabbing way to take the news out of News Corp. Posted online February 22, 2012.
Reuters, T., Business-msnbc.com. News Corp to avoid trial after one hacking case settled. Posted online February 23, 2012.
Wolff, M., the Guardian. Rupert Murdoch’s Sun on Sunday sets on his empire. Posted online February 24, 2012.
Wordsworth, A., National Post. The Sun may set on Rupert Murdoch’s British newspaper empire. Posted online February 16, 2012. * * * * * * * * * * * * Schmitt Management Consulting123 Industrial CircleHollywood, CA. 90210Phone (213)584-1234 Fax (213)584-1236 | INVOICE | | Invoice #5236Date: April 7, 2013 |

To:Mike PouraryanSMP Investments999 Sunset Blvd.Hollywood, CA. 90210(213)689-8765 | For:SWOT Analysis News Corp |

DESCRIPTION | HOURS | RATE | AMOUNT | Develop SWOT Analysis News Corp | 85 | 450.00 | 38,250.00 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | TOTAL | $38,250.00 | Make all checks payable to: Schmitt Management ConsultingTotal due in 15 days. Overdue accounts subject to a service charge of 1% per month.Thank you for your business! | | *

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