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Chapter 8 Case Study: Making Difficult Decisions at NBC Universal
The NBC Universal’s late night programming network where faced with some very tough decisions regarding Jay Leno and Conan O’Brien talk show host. I’m sure everyone is familiar with this dynamic duo, if not allow me to share a little history about these two gentleman. Jay Leno was born James Douglas Muir Leno on April 28, 1950, in New Rochelle, New York to father Angelo Leno and mother Cathryn Leno. Jay Leno is the late night talk show host and stand-up comedian who hosted The Tonight Show with Jay Leno from 1992 to 2009. Conan O’Brien was born Conan Christopher O’Brien on April 18, 1963 in Brookline, Massachusetts to father Dr. Thomas O’Brien and mother Ruth Reardon O’Brien. Conan O’Brien started out as a TV writer before becoming a talk show host. Conon O’Brien now the new host the Tonight Show for the last 12yrs on NBC host by Jay Leno previously. NBC management decided to move Jay Leno to prime-time slot while elevating Conan O’Brien to the new host of “The Tonight Show” then NBC decided to reverse their decision. NBC became concerned that O’Brien might move to another network, so they decided to make him a promise in 2009 that he would succeed Jay Leno as the host of “The Tonight Show”. NBC was betting by this time Jay Leno would be ready to retire. Unfortunately in 2009 Jay Leno announced he has no intentions on retiring as host of “The Tonight Show”. The plot now thicken as NBC and CEO Jeff Zucker look for solutions to keep Jay Leno on the air. The network came up with “The Jay Leno Show” while moving Conan into the Tonight Show seat. NBC was feeling pretty good about saving the network money and the decision to keep both late night talk show host’s.
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TALK SHOWS The television talk show is, on the face of it, a rather strange institution. We pay people to talk for us. Like the soap opera, the talk show is an invention of twentieth century broadcasting. It takes a very old form of communication, conversation, and transforms it into a low cost but highly popular form of information and entertainment through the institutions, practices and ...
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NBC’s euphoric sense soon came to a screeching halt. The network experienced low ratings with “The Jay Leno Show” hosted by Jay Leno, while Tonight Show starring O’Brien still regularly came in third behind, David Letterman and ABC’s “Nightline”. NBC canceled the prime-time “The Jay Leno Show” and moved Jay Leno back to “the Tonight Show”. Conan O’Brien was furious at this point he refused the alternatives offered by NBC and he used his position as leverage with the network. When it was all said and done Conan O’Brien accepted a $40 million dollar severance package plus several millions in severance for his staff, not bad for a deal gone bad. NBC made two critical missteps six years ago when the network signed Mr. O’Brien to replace Mr. Leno in 2009, say management consultants. It’s a bad idea to promise someone a promotion in order to retain him, they say, and so is naming a successor too far in advance. NBC was left with a costly lesson learned, hopefully.
Source: http://www.biography.com/people/jay-leno-9542191, Modern Management 12th Ed. Samuel C. Certo, S. Trevis Certo pg. 181, http://www.biography.com/people/conan-obrien-9542192
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There were several programmed decisions made by NBC’s management teams that caused this network a great loss in money and talent. As I dive further into this case the Modern Management suggest we look at alternatives before making a decision.
1. List three alternatives that NBC management might consider in handling competition from other television networks before making a decision to remodel the company’s programming schedule?
The Research paper on Integrated Performance Management Through Effective Management Control
First, we define the scope of management control and describe the link with organizational strategy. Then, we focus on the three elements of the management control system: (1) the management control structure; (2) the control process; and (3) the management control culture (beliefs systems). We will describe these three elements in greater detail and give an overview of the findings in mainstream ...
a) The first alternative NBC management might consider in handling their competition from other network would be for the decision makers they should list, as accurately as possible, the potential effects of each alternative as if the alternative had already been.
b) Secondly, they should assign a probability factor to each of the potential effects; that is, indicate how probable the occurrence of the effect would be if the alternative were implemented.
c) Last but not least, keeping organizational goals in mind, decision makers should compare each alternative’s expected effects and the respective probabilities of those effects.
1. What information would management need to evaluate these three alternatives?
NBC management would first need to identify the problem. Management must find out whether the low ratings are the result of less-appealing guests on “The Tonight Show” funnier sketches on David Letterman’s show, or growing competition from cable programming. Once the problem is identified, management would have to list all possible problem solutions. After eliminating infeasible solutions, NBC management would have to
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evaluate all remaining solutions, select one and implement it. If poor ratings resulted from viewers thinking David Letterman was funnier, the best alternative might be to hire new writers. Management would then need to know if this decision improved the ratings.
2. Do you think you would enjoy making the decision about whether to remodel NBC’s programming schedule? Explain
I do not think I am nowhere near close to being able to making decisions for NBC programming on whether to remodel NBC’s programming, because I know I am limited in my experience in business to be able to bring any insightful information to table regarding remodeling this program. A decision of this magnitude should only be made by a group of top leaders drawn from many different organizational areas.
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Introduction:Barletta’s Fine Foods (BFF) Ltd operates from King’s Norton in south Birmingham and supply food products to various retail outlets and restaurants. The company has performed well in the past and has ambitious growth plans for the near future, however there are problems in various functional departments of the company that have hindered its growth. Top management is ...
Modern Management 12th Ed. Samuel C. Certo, S. Trevis Certo pg. 188, 196
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References
Erin White at [email protected] Leno-Conan Mess Offers Management Lessons
Monitor Received from: http://online.wsj.com/article/SB10001424052748704320104575015043347580222.html
Bio. True Story- Conan O’Brien biography
Monitor Received from: http://www.biography.com/people/conan-obrien-9542192?page=2
Bio. True Story- Jay Leno biography
Monitor Received from: http://www.biography.com/people/jay-leno-9542191
Modern Management 12th Ed. Samuel C. Certo, S. Trevis Certo
, West Georgia Technical College. Student
