Barry Levinsons thought-provoking, satirical black comedy, Wag the Dog (1997) demonstrates the power that media has in our society and its effects, through an exaggerated perspective, which emphasises the way media manipulates the public 's beliefs, thoughts and the way they interact. Some of the popular examples of conglomerates around the world are. The conglomerate can utilize the synergy between these two subsidiaries to save on costs. This is because the content of mass media is very powerful and it has become a agent of socialization which can shape peoples behavior or even influence the ways of how people think. Cultural Convergence Overview & Examples | What is Cultural Convergence? How will the Patient Protection, affect liability insurance costs? Laurentian university declares itself insolvent and subsequently closes a large number of its, Suppose the number of firms you compete with recently increased. It has also been effective in using the synergies between its subsidiaries for saving on costs and gaining access to new markets and technologies. Hedges states, It is the electronic image that informs and defines us. One example of a Conglomerate merger is the combination of Dow Chemical and DuPont, which was announced in December 2015. Healthy market based competition is absent leading to slower innovation and increased prices. Within a single investment, there will always be negative shocks. As media companies grow larger and larger, they become more susceptible to bias. Conglomerates may also find it easier to diversify their businesses because they can use existing resources and capabilities to enter new markets. What is Meant by Piercing The Corporate Veil? They are generally large and multinational. Another disadvantage of conglomerates is that they may be less efficient than companies that are not conglomerates. The Walt Disney Company, for example, is a media conglomerate that owns and operates businesses in the entertainment, parks, resorts, and consumer products industries. Fill out the form and we will contact you to provide information about furthering your education. The extra layers of management increase costs. While MEG's broadcasting decreased 17% and digital media increased 8%, its newspaper was down 43%. Synergies are created when two businesses come together and create efficiencies or cost savings by sharing resources, ideas, or knowledge. The Pros And Cons Of Mass Media - Walden University Conglomerates are usually formed via acquisitions, in which one company buys a controlling stake in another firm. Thanks to the business communication made possible by mass media, businesses can reach potential consumers faster and easier than ever before. Conglomerates offer a number of advantages, including economies of scale, greater financial stability, and access to new markets. It is believed that the government censors as a way to have control not to protect citizens; by knowing more, they have the upper, Before media, politicians and other newsmakers had to rely on word of mouth to communicate the various messages they were espousing. This limitation of scope goes hand-in-hand with another benefit: improved quality. The media is supposed to be just like a warrior fighting with a pen or like a mirror which shows us or strives to show us the bare truth and astringent realities of life. One professional consultant who pioneered these formats justified them by claiming, People who watch television the most are unread, uneducated, untraveled and unable to concentrate on single subjects more than a minute or two. (Lazere 306). Conglomerates offer many benefits to their parent companies. Common Cause reports that one company may own three TV stations, eight radio stations, a local newspaper and the cable system in a market. From newspapers and radios to televisions and social networks, the various forms of media have provided the public with more knowledge and accessibility to information and connectivity to others than ever before. factions can be small and others can be big, but each one is different. Finally, conglomerates may be less responsive to change than companies that are not conglomerates. Those concepts are: globalization, media concentration or conglomeration, electronic colonialism, and consumerism. Thus we can simply say that all this have given rise to cultural imperialism. The three C's of media convergence are computing, communication, and content. Diversification results in a reduction of investment risk. On the other hand, it has allowed fake news to spread, facilitated increased surveillance, and allowed for pirating of copyrighted material. Organic convergence refers to the way in which one organism can consume multiple types of digital media at one time. In a sense, there is more honesty in journalism, but media still controls and manipulates peoples opinions, and is therefore just another iteration of World War II propaganda. Boeing is a multinational conglomerate that has a number of subsidiaries that operate in different markets. Within the media industry, more ratings equal a higher profit. Electronic Media is a form of entertainment, knowledge and communication and influences societys conductivity and is deeply censored, biased and manipulative in order to control society. Advantages and Disadvantages of Principal Communications Media Advantages: Due to diversification, conglomerates can reduce their investment risk. Media consolidation refers to a trend in which a single company or corporation owns multiple media outlets in a given market (area of distribution or transmission). Conglomerates also have access to new markets and technologies. WHY DOES ECONOMICS DRIVE MOST MEDIA COMPANIES ? Concentration of media ownership the absence of diversity. This move to multiple formats does not end with TV. What are the advantages and disadvantages of conglomerates? Each subsidiary business operates independently from the other divisions in the conglomerate, but the managers of those subsidiaries report to the senior management team at the parent firm that is responsible for overseeing the various businesses and making sure they are all performing well. It has been contaminated by political influences. Conglomerate Merger: A conglomerate merger is a merger between firms that are involved in totally unrelated business activities . The argument can be made that, instead of appealing to the lowest common denominator in the public, at least some media should give the more informed and critical segment of the people what it wants (Lazere 305). These subsidiaries include GEICO, BNSF Railway, and Berkshire Hathaway Energy. advertisers and government rather than to the public interest. These subsidiaries include 3M Health Care, 3M Automotive, and 3M Industrial. Andersen, R,.Thomas, H., Kominski, & Gerald. Conglomerates require less manpower than companies that are not conglomerates. For example, Sony has been able to use the synergies between its subsidiaries to save on costs and gain access to new markets and technologies. The societies rely on mass media for information, entertainments and even communications. Media conglomerates such as Viacom, represents the historical and present ideas of consolidation and convergence. Also Read Chain Store: Definition, Types, Advantages and Disadvantages. Creates a divide between those with access to computer technology and those without. GE has a number of subsidiaries that operate in different markets. That is not to say that digitization has been only a beneficial process. English 103: Analyzing and Interpreting Literature, Environmental Science 101: Environment and Humanity, Psychology 105: Research Methods in Psychology, Create an account to start this course today. Honeywell is a multinational conglomerate that has a number of subsidiaries that operate in different markets. advantages in society, and have limitations restricting them or their rights. Due to these media conglomerates the theory of media imperialism evolved which states that due to over concentration of mass, A media source which ignores or censors important issues and events severely damages freedom of information. For example, Berkshire Hathaway has been able to use the synergies between its subsidiaries to save on costs and gain access to new markets and technologies. Weve all seen it or been a part of it: a group out to dinner where everyone spends much of the evening staring at their phones or gazing at a TV in the corner. The whole is often worth less than the sum of its parts. lessons in math, English, science, history, and more. Before mass media, art and culture were more localized, so they reflected diversity in how people spoke, dressed, and entertained themselves. In essence, owners no longer need to try to appeal to the widest possible audience in a single media format. The new company, known as GE Alstom, was jointly owned by both GE and Alstom. Advantages of Conglomerate Merger Diversification of Business Gain Synergies Utilization of Excess Cash Improves Customer Base Utilization of Human Resources Economies of Scale Disadvantages of Conglomerate Merger No Past Experience Shift in Focus Complication Governance Issue Horizontal Merger Vertical Merger Conglomerate Merger Concentric Merger What is media convergence? There are many services under the media sector which includes Newspaper, TV and radios are the main parts to the factor as their coverage spans over a wider area unlike pressure groups. It has its advantages and, unfortunately it also has its disadvantages. Your email address will not be published. Media Convergence | Examples & Explanation - Study.com This has made many daily tasks easier for people, such as looking up a recipe or getting directions for a trip. Management costs increases due to size of the group Conglomerates have to face many accounting-related problems, for example, consolidation Fake news, increased surveillance, and even political instability have been tied to transformations in the media content landscape. It is often argued that the existence of a democratic society necessitates the existence of information outlets whose duty is to provide the populace with authentic, unbiased and relevant material. For example, in 2014, Walmart (WMT) announced that it would be building a new distribution center in Texas that would create more than 500 jobs. Distance is not a barrier. Many modern tabloids, twenty four hour news channels and other mainstream media sources have increasingly been criticized for not conforming to general standards of journalistic integrity. Media conglomerates are a good example of this type of diversification. A significant offshoot of social media has been the rise of user-created content. Your email address will not be published. Excessive commercialization. You estimated that as a result of the increased competition, the demand elasticity has increased from -2 to -3, ie you face more, 2. People get news daily through the media and this keeps them updated on the happenings around the world. "Media conglomerates strive for policies that facilitate their control of the markets around the world." This means that with overall control being exercised by a management that does not fully comprehend the forces that drive success in some of its component parts, a conglomerate can become a confusing and dysfunctional entity that is not maximizing all of its potential. Media conglomerates benefit during warfare, currently equaling seven years of more commercial airtime for Iraq updates. 11) Beefing up media bias Media convergence influences people's lives and society overall in countless ways. Conglomerates can also benefit from synergies. Conglomerates can also be created when a company expands its operations into new markets or industries. Conglomerates are less popular today, but were quite popular in the 1960s and 1970s. The Uses and Gratification theory by Elihu Katz came into existence when the theorist concocted the idea that individuals utilize the media to their advantage. Like any other business, the purpose of the media is to earn profit and the only way they can do so, is by providing the viewers with whatever they want. While some sources of information are far more trustworthy than others, mass media as a whole is vulnerable to propaganda and its lies. On one hand, media convergence has expanded access to media, simplified media production, and democratized the base of media producers through user-created content. Would the alternatives be more ethical or virtuous? Print media take advantage of the internet as well. In his essay he explains the importance of the media and its effect on the general public. Participating in a number of different enterprises might help a conglomerate firm diversify the risks associated with being in only one market. But along with conglomeration come many advantages and disadvantages. Are you or your spouse an active or retired U.S. military service member?*. Conglomerates may also conglomerate via greenfield ventures, which is when a company builds a new facility from scratch rather than acquiring an existing one. Conglomerates may also be created through joint ventures, which occur when two companies come together to form a new company that is jointly owned by both firms. In particular, you should consider earning a BS in Communication. This includes television, radio, advertising, movies, internet, newspapers, and magazines. One obvious difference is that ownership and control are separated, and the primary objective of those who control these companies is to maximize returns to investors. Some of the ways through which companies conglomerate are-. Levinson uses satire to reveal the worst of human nature, yet aiming, as satire does, to appeal to the best in human nature. Efficiency integrating capital/human resources/technologies. Control of the media is said to be in the hands of an autonomous managerial lite who allow a considerable degree of flexibility to media professionals. 01English, Database: Ashford, SOCIntroductions to Ethics & Social Responsibility. asiarenee91", https://en.wikipedia.org/w/index.php?title=Conglomerate_(company)&oldid=1131567023. Perhaps the key one is that the specialist skills built up in the original company or group of companies may not be relevant in the newly-acquired entities. It also has been able to utilize the synergies between its subsidiaries that created value for shareholders. While diversity still clearly exists, there is the risk that mass media might reduce cultural variety, leaving us with less art and fewer inspirations. Only a few companies representing the interests of a minority elite control the public airwaves. Since the creation of the internet and the mass media that comes with it, information can now be spread all the way across the world in the time it takes to hit the enter button on a computer or phone and upload it to the internet. Conglomerate Merger - Combining Companies in Different Industries Hugh Zimmerbaum is a prospective PhD student in Slavic Languages and Literatures; After earning his BA degree in Literature with a concentration in Russian Studies in 2018, he spent two years as an EFL teacher in Russia. But is this a good thing? In this study positive side of media is highlighted as well as negative effects. The people are considered to be the largest segment of the audience and that should be enough evidence for the media members to make the news tailor made for the viewing public. Honeywell has been able to utilize the synergies between its subsidiaries to create value for shareholders. A conglomerate can grow by acquiring companies, whose shares are more discounted, thereby showing growth in earnings.
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