A summary of Strategic Planning
Strategic planning helps the organization to focus on its core strngths , and working toward the same goals, to assess and adjust the organization’s direction in response to a changing environment. Here an attempt has been made to analyse the environment and make plans for the SMG group in the framework of the SWOT model. A TWOS matrix has also been developed to suggest what can be incrporated in the strategic plan of the SMG group.
SWOT analysis is an effective way of summarizing and combining the key issues from environmental analysis. The aim is to identify the extent to which the current strategy of an organization and its more specific strengths and weakness relevant to it, and capable of dealing with the changes taking place in the business environment. The idea of a SWOT analysis is to undertake a more structured analysis so as to yield findings which can contribute to the formulations of strategies (Johnson & Scholes, 2005).
SMG is making business with a strengthened balance sheet, strong brands, healthy market positions and committed people working throughout the Group. In outdoor advertising, one of the fastest growing advertising sectors, Primesight already has a strong and growing presence in the six sheet market, with over 12,500 sites through the UK, and is rapidly increasing the number of high yielding Backlight panels on high profile sites across the UK’s major cities. Both markets offer scope for further profitable organic growth, which the Company is well positioned to exploit. SMG has clearly established that there are cost advantages from managing four advertising platforms within a single Group. Given SMG’s existing production and broadcasting resources, together with pool of highly skilled and experienced people, they are well positioned to meet high quality demand from customers with growing number of channels
SMG group is still weak in providing informative and analytical services in UK market in comparison to BBC and SKY television and now after the arrival of foreign players make the situation cumbersome and more competitive. The scale of operation of SBC television is very small compared to big foreign players. It is serious threat for SMG group, which must be addresses in planning phase. The media industry must give packaged programmes through different channels while minimizing cost of operation through integrated marketing and production.
The opening of the UK media industry to global players, has allowed foreign players especially U.S. ones, to acquire stakes in commercial broadcasters such as ITV. It paves the way for BSkyB to gain control of the smaller networks such as five, although restrictions will still prevent it from holding an ITV license. SMG group’s Virgin Radio had a challenging year as audience measurement issues and an uneven radio advertising market combined to impact on the station’s revenues (UK Electronic & media Industry, 2003). The SMG group has to face the challenges coming from foreign players who are much larger and have greater resources at their disposal to enter and penetrate UK media market.
SMG is in good shape to capitalize on the advertising upturn and the many new opportunities that are created by changing technology, lifestyle and customers’ demands. The ‘Out of Home Division” recognizes that lifestyles for consumers are changing and that advertisers need more varied ways of reaching them. Primesight, the outdoor business, and the well-known cinema advertising business, Pearl & Dean, have bucked the trend through the advertising downturn (Annual Report 2005).
Increased demand from independent producers and the growing number of new channel providers are driving the market for high quality facilities and experienced production support. Scope for further development attributed from increased demand from independent producers and the growing number of new channel providers is driving the market for high quality facilities and experienced production support. (Annual Report 2005).
Tags: analytical services in uk, balance sheet, market positions, organic growth, quality demand, strategic plan, strengths and weakness, structured analysis, swot analysis
