On the risk avoidance in the diversified managemen

2022-08-06
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Under the background of information and globalization, with the increasingly fierce competition in the domestic newspaper industry and the rapid rise of new media such as Internet and Internet, the Chinese newspaper industry, as a traditional media, is facing huge risks and severe challenges. The diversification of Chinese newspaper industry has become an important way to deal with challenges and avoid risks. On the basis of explaining the relevant background and foundation of the diversified operation of the newspaper industry, this paper summarizes the experience and characteristics of the major domestic newspaper groups on the road of diversified operation, then analyzes the existing and potential risks on the road of diversified operation, and finally puts forward how the newspaper industry can avoid risks in the new social environment. The purpose of this paper is to provide theoretical guidance for the newspaper group to achieve diversification through analysis and summary, so that the newspaper group can embark on a healthy, sustainable and efficient development path

key words: newspaper group; Diversified operation; Edge breakthrough; Avoiding risks

I. newspaper diversification

Ansoff, an American scholar, put forward the concept of diversification for the first time according to the types of products operated by enterprises. The enterprise shall try its best to expand its product categories, produce and operate a variety of products across industries or businesses, expand its production, operation and market scope, and make full use of various resources to give full play to its advantages, improve its operating efficiency and ensure its long-term survival and development

(I) what is newspaper diversification

newspaper diversification refers to the enterprise strategy that the newspaper industry, in addition to the main business of running newspapers, also involves in multiple industrial fields and operates a number of different businesses at the same time, also known as diversification or diversification. At present, China's newspaper groups are in a critical period of transformation and development. Due to the impact of new media, the strategic adjustment of the advertising industry, the continuous loss of readers and soaring paper prices, newspaper groups have entered a turning point in the development process. While strengthening the core competitiveness of leading industries, the newspaper group began to increase the pace of diversification, mainly through concentric diversification of the newspaper industry, vertical diversification of the newspaper industry, cross media diversification of the newspaper industry and cross industry operation of the newspaper industry. [1]

(II) development trend of diversified operation in the newspaper industry

at present, the copolymer of GA and TMC has been developed into flexible suture (Maxon reg;) And orthopaedic instrumentation (acufex reg;) In the process of promoting the integration of internal resources in China's media culture industry, the diversification of newspaper business is an inevitable development trend, which is also a useful attempt for newspaper groups to seek new economic growth points. From a macro point of view, there are two main reasons for the diversified operation of the newspaper group. They are to realize the integration, distribution and utilization of resources within the newspaper group, strengthen the mutual cooperation between various departments, strengthen the awareness of cooperative operation, and ask for profits from team cooperation

II. Types of diversified operation of the newspaper industry

newspaper operation involves many contents, such as advertising operation, distribution operation, printing operation, diversified operation, organization management, personnel management, financial management, material and equipment management, etc. The advertising, distribution and printing business of the newspaper industry are the backbone of the newspaper business. In addition, other business activities with newspapers as the main body are called newspaper diversification, which is not only a supplement to the main business of the newspaper industry, but also another way to expand the economic strength of the newspaper industry

(I) cross media horizontal diversification strategy

cross media horizontal diversification is a three-dimensional consumption and use of media resources framework composed of newspapers, radio, television and other media forms. Brands and channels are shared. Resources can improve efficiency and reduce costs in composite utilization. This is also a new highlight of the diversification of China's media enterprise groups. Take first finance and economics as an example. It was originally integrated by the former financial frequency of Shanghai Oriental Radio and the former financial channel of Shanghai TV. At present, it has four media: first finance and economics channel, first finance and economics frequency, first finance and Economics station. In the past four years, it has set many records in China's media industry

(II) vertical diversification strategy of similar media

vertical diversification strategy refers to the existence of certain connections between enterprises and existing enterprises in terms of consumer base, products or pre marketing technologies. The newspaper group uses its own resources and existing technology, expertise and experience to develop new products, expand new businesses and develop new products, such as setting up a magazine, operating a publishing house and establishing a station, to expand its business scope around mass communication. The Southern Newspaper Media Group is an important case for Chinese media enterprises to adopt this vertical diversification strategy

(III) no relevant diversification strategy

no relevant diversification means that the newly established enterprise is not related to the existing enterprise. As the backbone of the cultural industry, the newspaper group has rich knowledge and experience, and has complete strategic assets. Most newspapers are actively following the trend of the times and promoting diversified operations, such as setting up concert halls, performing arts companies, dance companies, etc. In addition, newspaper groups expand their business to other fields by acquiring or merging other enterprises. Such as entering the real estate, financial industry, information industry, etc., and carrying out investment and operation activities that have no connection with existing technologies, products and markets [2]

III. analysis on the risks of diversified operation in the newspaper industry

although the newspaper industry has many advantages in implementing diversified operation, since the 1980s, with the unsatisfactory diversification performance of many enterprises, scholars began to focus more on the limitations of diversification. Through analysis, it is concluded that the risks of diversified operation in the current market mainly include the following aspects

(I) risks of entering and exiting the industry

the diversification of newspaper groups is a two-way selection process of entering and exiting. In the market economy environment, there are scale economy barriers and absolute cost barriers in all walks of life. As some manufacturers occupy most of the demand of the industry, new enterprises cannot produce at the lowest cost before they obtain market share, so it is difficult to enter the industry. In this way, the enterprises that have entered the industry have incomparable cost advantages, making the production cost of enterprises to enter the new industry to expand business is always higher than that of existing enterprises. Being unfamiliar with the industry will inevitably bring business risks. However, learning to adapt to the new industry situation and reshaping the competitive advantage is a long, complex and arduous process. Therefore, it is difficult for us to use some static indicators such as investment amount to measure the risk of diversified entry and exit of newspaper groups [3]

(II) risk of weakening the main business

diversified operation must weaken the position of the main business. The status here refers not only to capital investment, but also to the distraction of the group's management and the weakening of other investment. The consequences are often serious. As the total number of enterprise resources is certain, the original industry has become the basis for diversified operation. The new industry needs the support of the original industry in the early stage of growth. If the core business is at risk and the new business is not mature or the scale is too small, it may endanger the survival and development space of the whole enterprise

(III) internal integration risk

due to the contradiction between the multiple objectives of diversified operation and the limited resources of the enterprise, the enterprise as a whole must integrate the requirements of different industries for its management mechanism, so as to make the strategic objectives of diversified operation as consistent as possible. However, with the expansion of business, the internal operation and management become more complex. The differences in market segments, corporate culture conflicts, and poor information communication between departments often make the coordination and management of enterprises difficult. At the same time, the increase of management costs may also be higher than the benefits brought by the diversification synergy, which will weaken the competitiveness of enterprises and bring risks to the growth and integration of enterprises

(IV) financial deterioration risk

diversified operation can open up a lot of financial resources for the newspaper industry in terms of income, but if these projects go wrong, it may bring a lot of potential assets and financial security risks. Since unrelated diversification is generally difficult to be financed directly through the securities market due to the high potential risks, it is mostly developed through the enterprise's own funds or indirect financing, which will increase the enterprise's debt ratio. When new business development encounters difficulties and risks, it will also worsen the financial situation of the parent company, and even cause the bankruptcy and bankruptcy of the parent company [4]

IV. risk avoidance of diversified operation (I) establishment of risk management mechanism

in the cross-border operation of the newspaper industry, there are risks of one kind or another. In order to gain a firm foothold in the market economy, enterprises must have the ability to control and manage risks. The primary requirement for risk management is to be able to identify risks, determine the possible impact of existing risks, quantify the degree of risk and the amount of loss caused, and focus on risk control, actively reduce the probability of risk occurrence and minimize the degree of loss to control risks. In addition, it is necessary to focus on risk avoidance, formulate emergency plans, make full preparations for possible situations to the greatest extent, and fundamentally eliminate specific risk factors, such as establishing incentive mechanisms, implementing education and training, and reserving professional talents through funds

(II) scientific calculation of profit model

interest balance is the most considered issue in business cooperation. When a newspaper group implements cross-border operation, it must consider the profit model and try to achieve a win-win situation. Otherwise, it is difficult to invite cooperation partners and control the growth risk of the newspaper group. This is the most mentioned and most difficult measure in cross-border operation. If there is no good profit model, there will be a long-term risk of loss. Therefore, scientific allocation of profit model is an important way for newspaper groups to conduct diversified operations [5]

(III) do a good job in capital operation strategy

all kinds of tangible and intangible assets owned by enterprises can be regarded as capital, and they realize value-added through capital operation. The establishment of newspaper groups can give full play to the advantages of their own tangible and intangible assets, enable economic entities to directly enter the market to raise funds, finance and absorb social funds, and maximize the residual value for capital appreciation. In addition, while making full use of its idle funds, the newspaper group should solve the problems of developing scale operation, and gradually develop the newspaper economy into a modern capital economy with a diversified structure through capital operation. [6]

the twists and turns of various types of wire cores are the important reasons for insulation eccentricity. 1 (IV) build a good brand differentiation strategy

the media brand is the quality evaluation of the spiritual products provided by the media in the eyes of the audience and the potential commercial value of this quality evaluation. It is an important sign that one media is different from another media. An important aspect of risk avoidance in diversified operation is to do a good job in brand differentiation. The competition in the newspaper market is the competition for readers. The scientific understanding and grasp of readers is the premise and foundation for designing and making communication products with selling points

(V) improving the level of management team

improving the level of management team is an important strategy to expand and strengthen the newspaper group. The core team should be built from

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