Management Update Report
Jeff Bezos's New Plan for News: The Washington Post Becomes an Amazon Product October 06, 2014 http://www.businessweek.com/articles/2014-10-06/jeff-bezos-plan-for-news-washington-post-becomes-an-amazon-product Summary:
Jeff Bezos wants to turn the Washington Post into a national publication, and he’s going to use his other company—Amazon.com (AMZN)—to help achieve that goal. Post came up with a new APP, which is a step to initiative focused on the fast-growing mobile readership, according to a Post press release announcing the hire. It’s the first sign that Bezos will create ties between the newspaper and the e-commerce giant he started 20 years ago.
Bezos bought the paper last year, media observers have wondered how he will resuscitate a franchise with plenty of old-media challenges. In September, meanwhile, Bezos dismissed the Post’s longtime publisher, Katharine Weymouth, and replaced her with Frederick J. Ryan Jr., a former aide to President Ronald Reagan.
The article involves many factors of decision-making, goal setting, company strategy and company’s structure. Jeff Bezos’s decision to buy Washington Post is nonprogrammed decision, because the decision is based on reason and intuition in response to a unique situation that requires a tailored decision (Neck, Lattimer, Houghton, 10.2013, CH7.1). The action decided by Jeff Bezos has no rules in response to a new innovation of Washington Post, other the decision would be a programmed decision. He could simply develop in that direction but it’s not necessary to acquire that company, so there is no pre-established rules to follow, instead, he made the decision based on his intuition that this is a profitable action and is a good chance for company’s development.
The goal setting of Jeff Bezos follows the SMART model, which is the establishment of specific, measurable, achievable, relevant and time-bound (Neck, Lattimer, Houghton, 10.2013, CH8.1). The goal of Jeff Bezos is to acquire Washington Post, which is very specific. The goal is measurable because it’s simply a yes or no question: Can we increase revenue and realize company’s development? The goal is also achievable. As Jeff Bezos has already took action, the outcome of which is not yet decided, there are methods to achieve the goal. The goal is definitely relevant to the company’s mission, vision and value, which include the company’s development and expansion. The goal is also time-bound. “Bezos stunned the world on Aug. 5 by buying the storied but troubled Washington Post. Woodward and Bernstein’s old stomping ground has suffered a 44 percent drop in revenue over the past six years (Brad Stone).” We can deduct from the illustration that the company do have a time bound for the acquisition.
Acquisition is when an organization purchases another organization or business in order to grow (Neck, Lattimer, Houghton, 10.2013, CH9.1). So the goal of Jeff Bezos is simply an acquisition. The decision is also an organizational strategy, because it is a corporate-level strategy that addresses the question “What business are we in?” and unites all parts of…