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Environmental Analysis

Hoosier Media Inc. is an organization that produces print newspaper and suppliers them to the Midwestern US states. The firms are affected by several economic factors just like any other organization in the country. Some of the factors that affect the firm include demographic changes, the level of the interest rates and the inflation rates. The majority of the population has shifted from physical newspapers to online newspapers thus decreasing the sales of the firm. The economic trend in the industry is that most of the newspaper firm has increased the content of their online newspapers while decreasing physical newspapers to attract more customers (Doyle, 2013). 

The firm also faces legal challenges since the law restricts the kind of information that can be printed by the companies. The restriction has pushed most of the customers to rely on online sources which have little restrictions thus getting more information. In the communication industry, several regulations determine the kind of information that the media houses can share with the public. The first regulation is that the media houses must get approval from the government before operating in the country. The second regulation is that the media houses must authenticate all the information they publish because they are liable for all the information they give to the public. The government also regulate media ownership to ensure that no single firm monopolizes the industry (Dal Zotto & Van Kranenburg, 2008).

The trend in the media industry has moved from the physical newspapers to the online print media, but the company only gets 5% revenue from the internet an indication that the company has failed to embrace change in the industry. 5% revenue generated from the online adverts shows that the company is not using competitive strategies that may help in the generation of more revenue from online advertisements. Secondly, the low revenue from the online service to the public shows that the firm has failed to adapt to the new trends in the market thus losing its market niche to its competitors. The globalization has made access to information much easier thus leaving the company with very few customers to buy the physical newspapers since the current generation uses their smartphones to get the news immediately they occur. For the success of the company, the management must invest in internet programs that will attract the customers and generate more revenue for the company (Doyle, 2013). 

The organization need to focus on three areas to redeem the operations of the organization. The three areas are the employees’ welfare, the technology used and the needs of the customers. The low revenue generated by the firm may be as a result of lack of motivation or knowledge gap among the employees. The organization need to retain its employees and give them the required motivation to give their best to the organization.

The company need to invest in its Technology which is used in its production. The company need a total overhaul in its production system so that it can move from the current method of production to modern production method to attract its customers. The last area that the management must consider is the demand in the market. The current communication industry require online information yet the firm has still stack to its old physical; a production which does not meet the needs of the customers. The customers require instant news rather than the newspaper which are distributed daily (Dal Zotto & Van Kranenburg, 2008).

Externally, two primary factors must be considered by the organization that is the technology in the market and the competitors. The management of the organization must take into consideration the latest technology in the market that is used in the industry to help in producing quality products at an affordable cost. The high quality and low cost will help the firm to meet the needs of its customers thus increasing the revenue generated through the online adverts and other services.

The second external; factor which is vital to the firm is the operation mechanisms of its competitors. The management needs to invest in research to determine how their competitors are producing its products that allow them to generate high revenues. In addition to the production methods used by the competitors, the company must find out how the competitors are attracting their customers and how to retain them. The business today does not exist in a vacuum, and the Hoosier Media Inc. management must move out of their comfort zones to make the company realize its objectives (Baran, McDonald & Engberg, 2004). 

The main issue that affects the operation of the organization is its failure to embrace market trends. The company has continued to produce physical newspapers which are being overtaken by time at the expense of embracing digitalization and generate more revenue from the online platforms. The company need to invest in technology and research to help meet the needs of the customers in the market who require online products rather than the physical products produced by the firm. 5% revenue from the online adverts is meagre considering that most customers have moved to the digital world (Dal Zotto & Van Kranenburg, 2008).

The management of the company has the opportunity to redeem the operations of the firm by investing in modern technology that will ensure that the customers will get online news and adverts. The management can also launch online advertisement to inform the customers of the changes that have been affected in the company to attract more customers (Baran, McDonald & Engberg, 2004). 

References

Baran, S. J., McDonald, E., & Engberg, J. (2004). Introduction to mass communication: Media literacy and culture. McGraw-Hill.

Dal Zotto, C., & Van Kranenburg, H. (Eds.). (2008). Management and innovation in the media industry. Edward Elgar Publishing.

Doyle, G. (2013). Understanding media economics. SAGE Publications Limited.