This paper focuses on the telecommunications industry, which has seen an accelerating wave of corporate mergers and acquisitions that have resulted in the creation of multi-billion-dollar media conglomerates.
Abstract This paper discusses the government's continuous deregulation of the telecommunications industry, which was intended to result in increased competition, however the exact opposite was in fact achieved. The writer of this paper discusses the growing trend by large media conglomerates that are continuously consuming their competition. As a result, the mega-media companies cited in this paper, produce and/or distribute the majority of television shows, radio programs, movies and print publications. This paper examines the makeup of several large media conglomerates such as AOL-Time Warner, which was formed in 2000 for $160 billion and the Walt Disney Company, which includes several television production companies and cable networks and more than 100 million subscribers. The writer of this paper detail the impact and control these companies have on today's media. The writer contends and explains how these particular monopolies control the traditional ideas of the free press. This paper also delves into the FCC's recently relaxed media ownership rules that allows large media conglomerates to grow even larger, resulting in a great deal of protest.
From the Paper "The FCC recently relaxed media ownership rules that allowed large media conglomerates to grow even larger. Thus, they set off a great deal of protest. Americans did not appreciate the fact that a small group of powerful corporations are given more control of the most important element of our democracy: our access to information. They are right to feel this way. The media monopoly allows a small amount of companies power over media outlets (independent and corporate alike, including on the Web). This is far too much power for them to possess, but this is the future face of media consolidation."
Abstract Whilst the US.authorities have expressly concluded that anti-trust should rarely, if at all, interfere in the taking place of conglomerate mergers, the European Commission (EC) has, in contrast, become increasingly concerned with the 'conglomerate effects' of mergers, in a number of its relatively recent decisions. This paper discusses the potential anti-competitive effects that can result from such mergers, and then subsequently focuses on two key E.C. decisions - GE/Honeywell and Tetra Laval/Sidel for the main analysis, with relevant comparison between E.C. and U.S. perspectives.
Outline
Abstract
Anti-Competitive Effects Resulting From Conglomerate Mergers
The GE/Honeywell Saga
Tetra Laval/Sidel
Conclusion
From the Paper "The issue of 'efficiencies' represented a major point of divergence in the EC and US attitudes towards the potential effects of the merger and was a theme which ran through the core of many of the individual points and arguments made. Efficiency is considered to be the "ultimate goal" of US ant-trust policy , with the purpose of the Sherman Act and other competition laws being to "protect competition, not competitors" . The EC's decision in GE/Honeywell was thus heavily criticised for, as far as the US authorities perceived it, actually blocking the merger because it would give rise to efficiencies, such as lower capital costs and cheaper prices, which Honeywell's rivals would be unable to compete with."
Tags: General, Electric, Honeywell, Tetra, Pak, Laval, Sidel, market, dominant, leverage, monopoly
Abstract This paper discusses the effects of media conglomeration. The writer presents the case that this type of intensive ownership has a negative impact on the media industry. Legal issues are outlined. Suggestions are made for government involvement in order to regulate ownership.
From the Paper "Media has become big business and recently that business has turned into heated debates about conglomerate ownership and its affect on the purity and credibility of the media itself. Within the last decade the media has become a business that is like every other business, in which the larger companies are rapidly vying over and bidding for the smaller ones. The winning bid takes the smaller company and absorbs it into their every growing business. The smaller companies "feed" the larger ones and give them more funding and power to continue the quest for additional mergers and take overs. As the conglomerate begins to grow others start referring to it as a giant and its power becomes something to contend with. Smaller groups cannot compete with the ever-growing conglomerate and soon it the only small companies that others can purchase are the ones the giant passes over. It becomes a snowball that simply grows as it rolls and the larger it gets the more easily it topples everything in its path."
Abstract Impact on consumer choice and quality of product of huge media conglomerates. Argues that the growth of power of media moguls is a threat to consumer freedom, and to the well-being of a democratic society. Effect on entertaining, news, and a democratic society. Role of advertising. Profits. Discusses media mergers. Moguls Ted Turner and Rupert Murdoch.
From the Paper "The mergers which have created giant communications conglomerates led by moguls such as Ted Turner and Rupert Murdoch affect consumers both negatively and positively. The primary positive effects are the technological advances made, while the major negative effect is the commercialization of products, including entertainment, news and information. The incredible amounts of money involved in acquiring and operating huge communications media organizations make it inevitable that the decisions made by the leaders of those organizations will be based on little but economic pros and cons. This means that the aim of the giant communications organization is to sell advertising, which means in turn that the primary consideration is the number of viewers, listeners, readers, including their age and spending capacity. When profits are considered above all..."
Abstract This paper examines how the mergers which have created giant communications conglomerates led by moguls such as Ted Turner and Rupert Murdoch affect consumers both negatively and positively. It analyzes how the primary positive effects are the technological advances made, while the major negative effect is the commercialization of products, including entertainment, news and information. It also looks at how the incredible amounts of money involved in acquiring and operating huge communications media organizations make it inevitable that the decisions made by the leaders of those organizations are based on little but economic pros and cons.
From the Paper "The argument of the moguls and their representatives, of course, is that the developing technology (made possible in part by the wealth of the conglomerates in support of research and development) allows for greater consumer choice in terms of channels and content. Some of the arguments the moguls make, however, are preposterous. For example, America Online Chairman Steve Case and Time Warner Chairman Gerald Levin, in testimony before the Federal Communications Commission on the merger of AOL and Time-Warner, "extoll[ed] the virtues of their merger as one that will 'take the Internet to the next level' and 'increase consumer choice in communications service and content'" (Connell, 2000, p. 1). The fact is, however, that the rapid expansion of mergers related to the Internet have created logjams in which service is terrible, particularly in DSL lines."
Abstract This paper examines and analyzes the rise of global news conglomerates in the world of print and television news. It shows how the media conglomerates like Time Warner and News Corporation are seeking to establish complete global dominance over print and electronic journalism. The paper then compares and contrasts the growth of the news divisions of these two media conglomerates and reveals that one of the primary motivations for this expansion has been to promote conservative ideology in the guise of objective news reporting.
From the Paper "Ultimately, the Democratic victory in the 2006 midterm elections and subsequent control of Congress beginning in 2007 may signal the end of this long era of global media conglomeration expansion. One of the fundamental safeguards of democracy is freedom of the press, but the freedom and objectivity of the press has been systematically undermined by these global media conglomerates, for they have replaced objectivity and reasoned political debate with political bias, de facto censorship, and news broadcasts bordering on propaganda. Democrats in Congress, and increasing numbers of Americans have recognized that responses such as reestablishing the Fairness Doctrine and implementing media reforms have become absolutely necessary if responsible media coverage of the news is to be restored."
Abstract This paper reviews and critically evaluates the article "An Analysis of Japanese Corporate Structure 1915-1937", written by Japanese researcher Jennifer Frankl. The author of this paper explains that Jennifer Frankl attempted a cross cultural study of the performance of Japanese Corporations during a period when Japan was far more insulated from evaluation by non-Japanese. While the author finds validity in some of Frankl's conclusions, he believes that, overall, Frankl's article is lacking. He concludes that Frankl would need access to more detailed and accurate data if she is to make a definitive statement about the differences between the different types of Japanese conglomerates during this hazy historical period.
Old versus New Zaibatzu (Conglomerates)
Literature Review
Critical Evaluation: A Balanced Appraisal of Strengths and Weaknesses of the Author's Argument
Is Problem Worthwhile?
Is Methodology Appropriate?
Is Empirical Work Valid?
Are Theoretical Models Valid?
Results - Are Conclusions Valid?
From the Paper "Frankl notes that there has been some excellent research done on each old conglomerate and on some of the new conglomerates. This research has described their ownership structure, management structure and their sources of finance. The existing literature on the zaibatzu focuses on their monopoly of power in the political events of the prewar years. Researchers such as Shigeaki Yasuoka and Hidemasu Morikawa have suggested these corporations used their resources including capital and enterpreneurial talent more efficiently than did independent firms. Yasuoka believes that membership in a conglomerate may have lowered risk but does not suggest a mechanism by which this occurred. Authors Haley and Nakagawa both emphasize government favoritism as a key to their growth. W. Mark Fruin suggests that economies of scale and scope drove the growth of the zaibatzu. Frankl is dubious about this contention since his study derives from a limited number of case studies. "
Abstract The paper discusses that the current M&A flurry eases the pain of the declining market and that newer publishing companies are looking for a buyout instead of long term profitability. This paper describes the structure of the international publishing industry, especially the multi-national media conglomerate giant Bertelsmann, which now owns such companies as Doubleday and Random House. The author is concerned that ,with just six major companies in the media field, we are facing the prospect of living in the information age, where all that information will be controlled by very few people who feel that only the bottom line is important.
From the Paper "The fact is that in 1836 the Bertelsmann family ventured into the world of publishing because they didn't feel there were enough bibles available in Germany. This proved to be a profitable venture and Bertelsmann gradually grew over the next century and a half until they became the biggest trade book publisher in Germany. As Bertelsmann progressed, they also began adding print and broadcast media to their portfolio, ultimately making them one of the top (now number three) media conglomerates in the world. Then over the last five years, they really stepped things up. Being cash rich and debt-free, they began to take advantage of others in the industry -- who operating at a marginal level were hit hard when the world economy slowed and sales dropped. They acquired Doubleday, which includes Delacorte and Dell, and merged it with Bantam, a previous acquisition. They did make the front pages in 1998 when they purchased Random House, the largest and most prestigious trade book publisher in the U.S.."
Abstract This paper examines how the term "Neoliberalism" has been used as an umbrella term to denote new applications of the classical liberal ideas dating back to Adam Smith. It looks at how as an economic principle, it has much in common with its liberal roots and how like liberalism, it is rooted in the market and market forces. In particular, it looks at how it allows for the concentration of wealth in the hands of private conglomerates and how this has resulted in a growing disparity between the wealthy and poor. It shows how viewed geographically, this division has occurred along the North-South divide, where corporations from the United States and Western Europe benefit from one-sided economic policies instituted in poorer countries like Mexico, Haiti and countries in Latin America.
From the Paper "Even within richer countries like the United States, neoliberalism has resulted in the reduction of public goods and services for the needy. The increasing "corporatization of America" has allowed the private sector more opportunities to shape public policy in their own favor. By virtue of their policy-shaping power and their size, many corporations can now push ?trade deals and other accords down the throats of the world's people, mak(ing) it easier for corporations and the wealthy to dominate the economies of nations around the world.? (McChesney 18)."
Abstract This paper examines how many credit the recent success of the General Electric Corporation to one revolutionary man, Jack Welch, who served as the CEO of GE from 1981 to 2001. It discusses how his management practices have been the subject of numerous books, and recently, his own autobiography. It analyzes some of the major steps Welch took in taking GE from a manufacturing company to one of the largest global conglomerates in the world. Topics covered include globalization, e-commerce, the RCA and NBC merger, and Welch's six best practices for success.
From the Paper "The future seems to be bright for General Electric's e-businesses. As the world shifts from a traditional way of doing business to cyberspace, GE, has secured its place as a long term success and ensures that it will not be left behind as many older companies may, if not utilizing the Internet as a valuable tool. Now more than ever companies like GE can reach all over the globe at a fast pace, and provide information 24 hours of the day. While Jack Welch, now retired and preceded by Jeffrey Immelt, may no longer be head of the company, his firm backing and handling of the Internet revolution with GE's businesses is sure to lead the market, both locally and globally, as it already has for many years."
Abstract This paper examines how decision making is an extremely important activity in our professional and personal lives. It looks at how it has been found that decisions resulting from group brainstorming are of higher quality than the solutions discovered by an individual, due to the involvement of more than one person and a conglomeration of ideas that are sorted and sifted to reach the most effective solution. It also attempts to show that group decision making can be highly effective if certain guidelines are followed and how it is important for each member to participate enthusiastically and work together to minimize risks of conflict.
From the Paper "Group decision-making process follows certain important steps to reach effective solutions or discover suitable answers to various questions. Usually groups are invited to participate in a decision-making process when a problem has arisen which requires help from more than one head. Small teams are formed and they are given a problem to discuss and seek a solution to. ?Group decisions that usually require a substantial amount of deliberation, negotiation, and accommodation prior to an acceptable outcome.? (Ruppel, 1997) However just asking a group to reach a suitable solution might prove to be counter productive if the team has little or no idea of the steps that are to be followed."
Abstract This paper explains that LG started in 1947 as Korea's first chemical company and then became the first home appliance company in 1958. Today, it is a conglomerate of 49 subsidiaries, out of which 20 are listed on the Korea Stock Exchange. The author points out that the company is reorganizing its management structure of the LG group. after which it is expected that LG will become the holding company. The paper concludes that LG is a good stock for investment, but being a Korean company, presents a built-in liability.
From the Paper "Now let us look at the profitability of LG. the figures that we have for the company are for the first half of 2000, ending on august 7th, 2000. This is about three years old now. As per the audited accounts, LG Electronics had sales of 6.9 trillion won and sales profits of 572 billion won. (KRW (1,114.80): = US$1.00) One is at liberty to make the conversion directly. Roughly calculated, the sales are about $6 billion and the profits are about $500 million. The increase over one year was 34%, and exports were 69% of the sales and domestic sales were about 31%. The current profits were a little higher at 623 billion won. The profits had increased to five times to what they were in the previous year. The profitability was calculated to be roughly 9%. The reasons for profit were explained as ?LGE's profit increase is mainly due to the significant increase in sales of high-value-added products."
This paper discusses that the dominant media culture in our county controls the media, education, and other "cultural linkage" institutions, leading the public decidedly in one direction.
Abstract This paper relates that the dominant media culture is the minority, but it controls the majority of cultural influence pipelines. The author points out that the media conglomerates are successful because they present a diverse political and cultural viewpoint that the nation has not heard since CBS, NBC, and ABC took over control of the media centers of the country over 50 years ago. The paper concludes that the process of understanding the political landscape is ultimately the individual?s, not the media's, responsibility.
From the Paper "According to Common Cause, the big media companies are making their voices heard via large contributions to government legislators in order to gain majority access to the commercial air waves. They are accused of pushing through new rules that allow the huge corporations to buy up more and more media outlets such as television stations, cable networks, radio stations, and newspapers. The results, according to Common Cause, are that we will all be turned into mind numbed robots by the media monopoly. Deregulation, they say has made media outlets less diverse, less inclusive, and less involved with local communities."
Abstract This paper discusses General Electric (GE) and its position as a leader in a variety of industries. The paper takes a look at the influence the multi-national conglomeration has had on the business world whether it be in the realm of technology, labor unions, governmental interaction with businesses, free trade policies, or even environmental/business issues. The paper then takes a look at GE's key technologies and presents a SWOT analysis, describing both the strengths and successes of the company as well as its weakness and challenges it may be facing.
From the Paper "In 1878 Thomas Edison founded the Edison Electric Light Company which through mergers and acquisitions became General Electric (GE). The 19th and 20th centuries watched Edison's company grow into a massive multi-national company with branches reaching into a vast number of businesses. In the years since its formation GE has become a global leader in a number of fields beyond the power generation functions that Edison had pioneered. Industries as varied as aircraft engines and financial services have both become staples of income for the multi-faceted organization. With all of the success that GE has enjoyed it appears that the company is destined for a bright future and yet, there are significant issues that must be understood and managed for GE to be a bright star throughout the next two centuries."
Abstract In this essay, the world's five largest media companies are identified in detail, including their main subsidiaries, assets and profits. Furthermore, some of the many connections these five conglomerates have with other Fortune 500 companies are listed. Finally, the theories of Ben Bagdikian, Hamid Mowlana and Herbert Schiller regarding this media hegemony are discussed.
From the Paper "Albert Einstein, a pacifist, once dreamed of a global government, which he hoped would ensure peace on Earth. This, of course, has never materialized, even considering the founding of the United Nations in the aftermath of the Second World War. Tragically, war and discord have continued. The world has, however, become increasingly more interconnected in the fifty years since the end of World War II. The development of the global economy has created a global culture. Teenagers in India are likely to be aware of the latest Michael Jordan headlines as their American and European counterparts."
