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<P align=center><b><U>International Business Assignment<p></p></U></b></P>
<P align=center><p><b><U> </U></b></p></P>
<P ><FONT size=3>MTV Networks is a symbol of international business success. Its network has reached 384 million households worldwide, within a period of just 2 decades, and it has become the world’s most-watched television network. <p></p></FONT></P>
<P ><b><U></U></b> </P>
<P ><b><U>Assignment questions<p></p></U></b></P>
<P ><p> </p></P>
<P >1. Discuss specific issues MTV must consider when entering a country in the Asia Pacific region? (15 marks)<p></p></P>
<P >2. What international business strategy is adopted by MTV and explain how this strategy contributes to its success (25 marks)<p></p></P>
<P ><p> </p></P>
<P >NOTE: <p></p></P>
<P >In order to appreciate and study MTV’s Asian markets, notably <u1:country-region u2:st="on"><st1:country-region w:st="on">Korea</u1:country-region></st1:country-region>, <u1:country-region u2:st="on"><st1:country-region w:st="on">India</u1:country-region></st1:country-region>, and <u1:country-region u2:st="on"><u1:place u2:st="on"><st1:country-region w:st="on"><st1:place w:st="on">Japan</u1:place></u1:country-region></st1:place></st1:country-region>, students are encouraged to visit the following MTV websites: <a href="http://www.mtvkorea.co.kr/" target="_blank" >http://www.mtvkorea.co.kr</A>, <a href="http://www.mtvindia.com/" target="_blank" >http://www.mtvindia.com</A>, <a href="http://www.mtvjapan.com/" target="_blank" >http://www.mtvjapan.com</A>, <a href="http://www.mtvasia.com/" target="_blank" >http://www.mtvasia.com</A>. <p></p></P>
<P >Students shall also undertake research to understand the cultural and political economy of the 3 countries. <p></p></P>
<P >An article: “Global Strategy at MTV Networks” is enclosed for students to appreciate MTV’s strategic success.<p></p></P>
<P ><p> </p></P>
<P ><B ><U>Assignment Requirements<p></p></U></B></P>
<UL type=disc>
<LI class=MsoNormal style="TEXT-JUSTIFY: inter-ideograph; MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; tab-stops: list 36.0pt; mso-list: l0 level1 lfo1">This is an individual assignment.<p></p></LI>
<LI class=MsoNormal style="TEXT-JUSTIFY: inter-ideograph; MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; tab-stops: list 36.0pt; mso-list: l0 level1 lfo1">The report should have a cover, content and executive summary page. <p></p></LI>
<LI class=MsoNormal style="TEXT-JUSTIFY: inter-ideograph; MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; tab-stops: list 36.0pt; mso-list: l0 level1 lfo1">The executive summary shall not exceed one (1) page.<p></p></LI>
<LI class=MsoNormal style="TEXT-JUSTIFY: inter-ideograph; MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; tab-stops: list 36.0pt; mso-list: l0 level1 lfo1">The cover page shall contain the student’s number and full name, and the title of this course.<p></p></LI>
<LI class=MsoNormal style="TEXT-JUSTIFY: inter-ideograph; MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; tab-stops: list 36.0pt; mso-list: l0 level1 lfo1">The report shall be in plain white paper and stapled on the top left-hand corner, no file is required.<p></p></LI>
<LI class=MsoNormal style="TEXT-JUSTIFY: inter-ideograph; MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; tab-stops: list 36.0pt; mso-list: l0 level1 lfo1">Font – Ariel <st1:chmetcnv w:st="on" TCSC="0" NumberType="1" Negative="False" HasSpace="True" SourceValue="12" UnitName="pts">12 pts</st1:chmetcnv> and line-spacing is 2.<p></p></LI>
<LI class=MsoNormal style="TEXT-JUSTIFY: inter-ideograph; MARGIN: 0cm 0cm 0pt; TEXT-ALIGN: justify; tab-stops: list 36.0pt; mso-list: l0 level1 lfo1">The assignment shall not exceed 2,000 words and is worth 40% in this module.<p></p></LI></UL>
<P ><p> </p></P>
<H5 ><U>CASE STUDY:Global Strategy at MTV Networks<p></p></U></H5>
<P ><p><FONT size=3> </FONT></p></P>
<P ><FONT size=3>MTV Networks has become a symbol of globalization. Established in 1981, the US based music network has been expanding outside of its North American base since 1987 when it opened MTV Europe. Now owned by media conglomerate Viacom, MTV Networks, which includes siblings Nickelodeon and VH1, the music age for the ageing baby boomers, generates $1 billion in operating profit per year on annual revenues nearing $3 billion. Since 1987, MTV has become the most ubiquitous cable programmer in the world. By early 2001, the network had 29 channels, or distinct feeds, that reached a combined total of 330 million households in 140 countries.<p></p></FONT></P>
<P ><p><FONT size=3> </FONT></p></P>
<P >While the <st1:country-region w:st="on">United States</st1:country-region> leads in number of households, with 70 million, the most rapid growth is elsewhere, particularly in <st1:place w:st="on">Asia</st1:place>, where nearly two-thirds of the region’s 3 billion people are under 35, the middle class is expanding quickly, and TV ownership is spreading rapidly. MTV Networks figures that every second of every day almost 2 million people are watching MTV around the world, the majority outside the <st1:country-region w:st="on"><st1:place w:st="on">United States</st1:place></st1:country-region>.<p></p></P>
<P ><p> </p></P>
<P >Despite its international success, MTV’S global expansion got off to a weak start. In 1987, it piped a single feed across <st1:place w:st="on">Europe</st1:place> entirely composed of American programming. But while viewers in <st1:place w:st="on">Europe</st1:place> shared a common interest in a handful of global superstars, who at the time included Madonna and Michael Jackson, their tastes turned out to be surprisingly local. What was popular in <st1:country-region w:st="on">Germany</st1:country-region> might not popular in <st1:country-region w:st="on"><st1:place w:st="on">Great Britain</st1:place></st1:country-region>. Many staples of the American music scene left Europeans cold. MTV suffered as a result. Soon local copycat stations were springing up in <st1:place w:st="on">Europe</st1:place> that focused on the music scene in individual countries. They took viewers and advertisers away from MTV. As explained by Tom Freston, chairman of MTV Networks, “We were going for the most shallow layer of what united viewers and brought them together. It didn’t go over too well.”<p></p></P>
<P ><p> </p></P>
<P >In 1995, MTV changed its strategy and broke Europe into regional feeds, of which there are now eight: one for the United Kingdom and Ireland; another for Germany, Austria and Switzerland; one for Scandinavia; one for Italy; one for France; one for Spain; one for Holland; and a feed for other European nations including Belgium and Greece. The network adopted the same localisation strategy elsewhere in the world. For example, in Asia it has an English-Hindi channel for <st1:country-region w:st="on">India</st1:country-region>, separate Mandarin feeds for <st1:country-region w:st="on">China</st1:country-region> and <st1:country-region w:st="on">Taiwan</st1:country-region>, a Korean feed for <st1:country-region w:st="on">South Korea</st1:country-region>, a Bahasa-language feed for <st1:country-region w:st="on">Indonesia</st1:country-region>, Japanese feed for <st1:country-region w:st="on"><st1:place w:st="on">Japan</st1:place></st1:country-region>, and so on. Digital and satellite technology have made the localisation of programming cheaper and easier. MTZ Networks can now beam half a dozen feeds off one satellite transponder. <p></p></P>
<P ><p> </p></P>
<P >While MTV Networks exercises creative control over these different feeds, and while all the channels have the same familiar frenetic look and feel of MTV in the <st1:country-region w:st="on"><st1:place w:st="on">United States</st1:place></st1:country-region>, an increasing share of the programming and content is now local. When MTV opens a local station now, it begins with expatriates from elsewhere in the world to do a “genre transfer” of company culture and operating principles. But once these are established, the network switches to local employees and the expatriates move on. The idea is to “get inside the heads” of the local population and produce programming that matches their tastes. Although as much as 60 percent of the programming still originates in the <st1:country-region w:st="on"><st1:place w:st="on">United States</st1:place></st1:country-region>, with staples such as “The Real World” having equivalents in different countries, an increasing share of programming is local in conception. In <st1:country-region w:st="on"><st1:place w:st="on">Italy</st1:place></st1:country-region>, “MTV Kitchen” combines cooking with a music countdown. “Erotica” airs in <st1:country-region w:st="on"><st1:place w:st="on">Brazil</st1:place></st1:country-region> and features a panel of youngsters discussing sex. The Indian channel produces 21 home-grown shows hosted by local veejays who speak “Hinglish”, a city-bread cross of Hindi and English. Hit shows include “MTV Cricket in Control,” appropriate for a land where cricket is a national obsession, “MTV Housefull,” which hones in on Hindi film stars (<st1:country-region w:st="on">India</st1:country-region> has the biggest film industry outside of <st1:City w:st="on"><st1:place w:st="on">Hollywood</st1:place></st1:City>), and “MTV Bakra,” which is modelled after “Candid Camera.”<p></p></P>
<P ><p> </p></P>
<P >The same local variation is evident in the music videos aired by the different feeds. While some music stars still have global appeal, in most markets 70 percent of the video content is now local. In a direct countertrend to the notion that popular culture is becoming a more global and homogenous, William Roedy, the president of MTV’s international networks, observes, “People root for the home team, both culturally and musically. Local repertoire is a worldwide trend. There are fewer global megastars.” When music tastes do transcend borders, MTV has found that it is often in ways that would have been difficult to predict. Currently Japanese pop music is all the trend in <u1:country-region u2:st="on"><st1:country-region w:st="on">Taiwan</u1:country-region></st1:country-region>, while soul and hip-hop are big in <u1:country-region u2:st="on"><u1:place u2:st="on"><st1:country-region w:st="on"><st1:place w:st="on">South Korea</u1:place></u1:country-region></st1:place></st1:country-region>. <p></p></P>
<P ><p> </p></P>
<P >This localisation push has reaped big benefits for MTV, capturing viewers back from local imitators. In <st1:country-region w:st="on"><st1:place w:st="on">India</st1:place></st1:country-region>, ratings increased by more than 700 percent between 1996 when the localisation began and 2000. In turn localisation helps MTV to capture more of those all important advertising revenues, even from other multinationals such as Coca-Cola whose own advertising budgets are often locally determined. In Europe MTV’s advertising revenues increased by 50 percent between 1995 and 2000. While the total market for pan-European advertising is valued at just $200 million, the total market for local advertising across <st1:place w:st="on">Europe</st1:place> is a much bigger pie, valued at $12 billion. MTV now gets 70 percent of its European advertising revenue from local spots, up from 15 percent in 1995. Similar trends are evident elsewhere in the world. <p></p></P>
<P ><p> </p></P>
<P >Archived Source: Viacom International Inc. (2004) <p></p></P>
<P ><p> </p></P> |
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