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Strategic Triangle Performance Frame-working: Application of HPO Framework at NBC

Paper Outline

Overview of the strategic triangle performance frameworking
Background of the Namibia Broadcasting Corporation

Namibia Broadcasting Corporation in the context of the media industry in Namibia

The corporate based strategy – Namibia Broadcasting Corporation
Selectivity and sequencing
Make or Buy for NBC

Cost Effectives
Customer-based strategies

Customer segmentation
Customer Segmentation by objectives
Segmenting Customers by coverage

The competitor- based strategy
The Power of image in Namibia Broadcasting Corporation
Changes in products and customer mix

Profit capitalization

References List

Strategic Triangle Performance Frame-working: Application of High- Performance Organization Framework at Namibia Broadcasting Corporation
 
Overview of the strategic triangle performance frame-working
As we enter the error of competition hence the need for strategic planning for organizations, many strategic planning models are being developed. Strategies are developed with the aim of capturing the emerging needs of organizations arising from competition and the competitive environment. Strategic plans help firms to quickly adjust to external forces which are the main sources of pressure to the performance of a firm (Wübker, 2008). One such model is the strategic triangle performance frame-working which was developed by Kenichi Ohmae. This is also referred to as the strategic triangle or the 3C’s model. The three C’S denotes what the model suggests to be the main areas of focus in a strategic plan. These are the corporation, the customers and competition. A suggested by the model, sustainable competitive advantage in organizations can only be attained through the integration of the three c’s in a strategic triangle. The three strategic components of strategic planning as presupposed in the model are expounded to cover on almost the entire organizational activities for complete strategic outcomes. This has ben found to be effective in improving the performance of many organizations (Lowman, 2002). Therefore, this paper discuses how the three C’s model can be applied in the Namibian Broadcasting Corporation to bring achievements in the organization.
Background of the Namibia Broadcasting Corporation               
The Namibian Broadcasting Corporation is a public corporation which started in the year 1991. It was established as a replacement to the South West Africa Broadcasting Corporation. The corporation was set up in line with the Broadcasting Act 9, section one enshrined in the Namibian constitution. It is one of the major players in the media industry in Namibia. The corporation operates one major radio station plus nine other sub-stations and one television station. The chief radio stations broadcast in English. The sub-stations broadcast in German, Oshiwambo, Nama, Damara, Afrikaans, Tirelo yaSetswana, Silozi, Rukavango, Ha and Otijiherero languages. Apart form the German language, all other languages are indigenous. The television channel that is operated by the NBC broadcasts primarily in English. However, it also has programming in the German as well as other indigenous languages (Rothe, 2011).
The corporation provides dubbings and editing. It also rents its equipment like cameras. It also does engage in acquiring and producing domestic programs. The corporation has specialized in producing television and radio advertising from which it generates most of its revenues. The NBC operates in an environment that has minimal competition. Since it was established, the NBC Television channel has been operating alone until the year 2008. The One African Television was established in 2008 becoming the second television station in the country. One Africa Television Station is a private TV station. The NBC has monopolized the audio-visual industry in Namibia until recent times when a number of stations are being allowed to broadcast in Namibia (Bloomberg BusinessWeek, 2012).
Namibia Broadcasting Corporation in the context of the media industry in Namibia
Namibia has a relatively small population of approximately three million people. A majority of the population is composed of the youths who form about 80 per cent of the general population. About 67 per cent of the Namibians live in the rural areas while the remaining 33 percent live in rural areas. This is according to a survey that was conducted African Governance and Monetary Project in the year 2011. The development of the media in the country has been taking place since the country attained independence in the year 1990. However, for all this time, the government has been the major stakeholder in the industry (Africa Governance Monitoring and Advocacy Project, Open Society Initiative for Southern Africa and Open Society Media Program, 2011).
The media and democracy issues cannot be separated especially so when talking about media in the developing world. Namibian is still in the path of development. It is a country with a growing democracy therefore the media is still developing. Most African countries Namibia being one of them have been adopt reforms in public broadcasting. Most of such efforts are geared towards decentralizing public media by limiting the role of government in controlling the public media. As an African Union Member and a signatory to the AU Commission on Human and Peoples Rights 2002, Namibia has been clearing channels of independent media. The People’s Rights resolution of 2002 prohibits the control of the media by government. It advocates for a free and independent media. In Namibia, the state only controls the Namibia Broadcasting Corporation which is considered to be a as a national broadcaster (Africa Governance Monitoring and Advocacy Project, Open Society Initiative for Southern Africa and Open Society Media Program, 2011).
The Policy declarations in the AU Commission on Human and Peoples Rights 2002 give a framework which should be followed by countries in media development. It describes the key mandate of the public media as being the provision of access to information and ideas from societal sectors. It also recognizes the role of the media in promoting economic and socio-cultural development. The Namibian Broadcasting Corporation has been delivering most of the media mandates stipulated in the African Unions Declaration of the principle of Freedom of expression (Africa Governance Monitoring and Advocacy Project, Open Society Initiative for Southern Africa and Open Society Media Program, 2011).
A majority of the media agencies have been under the control of the government. As compared to the audio and the visual media, the print media is more vibrant in the country with many players. It has more players than the audio and visual media in which the Namibia Broadcasting Corporation lie. All the print media companies are located in the capital city – Windhoek. They are only distributed to other major towns in the country. As it is most of the people more so those residing in the rural areas in the country have limited access to the newspapers. Most of the print media resources are published in the English Language. This hinders a large population from accessing the media because of the levels of illiteracy in the country. Only the Namibian newspaper is published in more than one language (Wells, 1996). Most of the print media market is owned by the Democratic Media Holdings. This agency is a subsidiary of Media 24 which is a South African media company. This agency owns two dailies newspapers and one weekly magazine. Most of the printing presses in Namibia are owned by DMH (Africa Governance Monitoring and Advocacy Project, Open Society Initiative for Southern Africa and Open Society Media Program, 2011).
The audio sector is quite advanced with the leading radio station being the NBC. The NBC, with its other radio stations amounting to 9 reach approximately 95 percent of the population. This is because of the lingual diversity of the radio channels. The NBC English service radio broadcasts for 24 hours a day unlike its subsidiary channels which only broadcast for 15 hours a day. There are many other commercial FM radio stations in the country. These radio stations broadcast in different languages. A survey that was conducted in the year 2010 indicated that the radio services belonging to the Namibia Broadcasting Corporation are the most listened to. With many FM stations broadcasting in the country, the NBC stations are likely to face high competition (Rothe, 2011).
In the visual media, NBT TV is the leading broadcaster in the country. Apart from the NBC, there are many other radio stations in the country. One of them is the One Africa TV station. The Pay-TV DSTV which is a local radio station was introduced recently. It operates under MultiChoice Namibia. These are the only licensed television stations in the country. The Pay-TV is very expensive since it needs subscription fees. Owing to the economic status of the country, only a little fraction of the population can access it with many others using it for commercial purposes. Just as the community radio broadcasting channels, we also have got a number of community television stations. There is Trinity Broadcasting Network Namibia. This is a 24 hour broadcasting TV station. Most of the programs broadcasted come from the TNB International which is an American Christian TV channel. Very little time is left for the broadcasting of local content. Tsumeb Municipality has a license for community television. It rebroadcasts programs from the Deutsche Well, a German TV station. The Namibians can also have access to foreign television channels like the South Africa Broadcasting Corporation through the satellite. For them to access these foreign Channels, they must purchase decoders which help them receive transmission from the satellite (Rothe, 2011).
From the beginning of the 21st century, there has been a continuous push to have the in Namibia attain self regulation. The efforts have yielded results since the media in the country has attained a self regulatory mechanism known as the Office of the Media Ombudsman. Clement Daniels who is a human rights lawyer was appointed to head the office. The self-regulatory mechanism was set up by the National Editor’s Forum of Namibia. This development took place in the year 2009. This gives members of mechanisms of the public to launch complaints against broadcasts or published in the media. All the procedures and mechanisms of appeal for complainants are clearly stipulated in the code of ethics governing the media in the country. This is provided in the constitution of the media ombudsman. The appellate body is the Media Appeals Board which was set up in line with the self-regulation mechanism of the media. The board is chaired by a retired council member. This is aimed to bring the sense of responsibility in the media and encouraging the media to be more professional and obey the code of ethics that are used by the international media (Governance Monitoring and Advocacy Project, Open Society Initiative for Southern Africa and Open Society Media Program, 2011).
From the analysis of the media industry in Namibia; it is evident that the media industry in the country has a brighter future. The media industry is still growing with the growth in the economy of the country. As it is there is quite a relatively high number of radio stations in the country with more expected to be licensed by the government. The number of Television stations is low especially those TV stations that are accessible to the local population in the country. There is still a big gap left in the media industry which can be filled by the Namibia Broadcasting Corporation as it streamlines its operations. One way of attaining wholesome growth is by applying strategic growth models like the 3 C’s model.
The corporate based strategy – Namibia Broadcasting Corporation
In the three C’s model, the corporation occupies the top corner of the triangle. For strategic plans to be meaningful and results oriented, the whole organization or corporation as in the model has to be fully pictured. The corporation has to be properly understood – every department and section and the nature of environment in which it operates. This gives an opportunity of understanding the corporation and the dimensions that can be taken when formulating the general strategies. Specific strategies are derived from the general strategies. Therefore the general strategies are the keys to the successful formulation and implementation of specific strategic plans. The formulation of corporate based strategies for NBC can help the company to stand out in the media industry. Strategic plans are aimed at maximizing on the strengths of a corporation (Albarran, Chan-Olmsted and Wirth, 2006).
Strategies that are applied at the corporate level are used in giving the corporation economic strength so that it can easily overcome competition. Being a state owned corporation, the corporation has enjoyed protection from the government. This protection has insulated the company from the competitive pressures for the new entrants into the media industry in Canada. The government of Namibia has been licensing more television and radio stations entering the industry. Privatization of the corporation would be a wise strategy of opening up the corporation to development. The corporation has to be left to operate like other private entities so that it can craft creative ideas of expansion. Though competition is feared by many business organizations, it remains to be the key to creativity for many organizations. The reason why the corporation has been sleeping on opportunities is that it has not been striving to make profits (Albarran, Chan-Olmsted and Wirth, 2006).
There are specific areas where the NBC can focus. The media industry is very large and companies can choose to either specialize in the audio-visual or even the print media. Being a leader in the industry in the country, the NBC has operated more in the audio and visual sector. With several radio stations and one television station, there is an opportunity for the company to exploit these two fields. It already has many listeners of its radio stations and viewers of the television channel. By choosing to focus more on the radio and television, the NBC will have a good chance of gaining access to other fields in the industry like the print media. The first priority will be to strengthen the radio broadcasting after which the television or the visual sector of the corporation will be developed (IREX, 2010).
The Corporation has major strengths that are supportive of it in Namibia and the industry. Being a sole player in the audio-visual media has made the NBC the most known media house in the country. This makes it to have a competitive and comparative merit over other broadcasting or media companies in Namibia. The early adoption of diversification strategies by opening various radio stations broadcasting in the industry is a strategic strength to the company. The other supportive factor which is a comparative advantage which could also be of disadvantage is that the corporation is state owned. It enjoys support from the government. The NBC has the widest coverage in Namibia and it is the only station that has the capacity to source for content from the whole of Namibia. Most people in the country listen to the station and many companies choose to air their adverts through NBC because of the widest coverage. NBC has to look at these strengths as a basis on which it can integrate development initiatives. The major competitive areas in the corporation come from the other community stations which are capturing the audiences. The other area affecting the competitiveness of Namibia Broadcasting Corporation is the risen costs of operation. Operating under the government has added to the burden since most of the activities of the government are aired pay constraining (Tyson, 2006, IREX, 2010).
Make or Buy for NBC
Fluctuation in the demand has significant effects on corporations. It necessitate a change in strategies so that the organization can keep maintain the profit track. The Corporation has a good edge over other competitors in the country. It can take advantage of this and develop corporate relationships with the upcoming agencies in the private sector. An example is airing their programs through the private channels. There are various ways in which the corporation can deal with the rise in operation costs as it is proposed in the model. Separating functions is one of the options. The corporation can give each of the radio some level of autonomy – allowing them to operate independently though under the overall control of the corporations. These radio stations can make choices and adopt measures of cutting cost something that cannot be easily achieved when the corporation is working collectively.
Cost Effectives
Each organization tries to make adjustments in order to meet any rise in the cost of operation. However, caution has to be taken when cutting down costs. A critical look has to be given on each activity before choosing on which activity to make cuts on. Main activities of the organization are usually exempted from this. Such activities define the business and are essential in keeping customers in the market. As part of cutting down its cost of operation, the Namibian Broadcasting Corporation announced some changes. The corporation announced early this year that it was going to cut the number of hours it broadcasts per day. The corporation also announced that it was going to reduce its expenditure on local programming. The changes also involve the cutting of the television broadcasting time. If these changes are implemented then the radio and television stations will not operate for 24 hours. These changes were announced in February this year by Albertus Aochamub, the corporation’s director general. The corporation also announced that it might be forced to start imposing charges on government advertisements and the coverage of government events. The corporation also revealed that it was operating on a deficit budget and needed a bail from the government (Sennitt, 2012).
The costs incurred by the corporation include the travelling costs for its journalists, subsistence and travelling allowances and the costs of renting outside broadcast vans. The manager general announced the possibility of disentangling the corporation from the state and letting it operate as an independent entity. While the corporation has announced these changes, it will be required to monitor its activities and adjust accordingly. The move of the private broadcasting agencies will be monitored as more strategies are adopted to adjust to the changing environment. The move towards privatization is a good strategy though this might take quite long as it involves amendments to the legislation governing broadcasting in Namibia. The corporation might be forced to negotiate with other media houses and share some costs for instance the cost of hiring broadcasting vans. This can only work well when it is guided by a positive spirit of competition otherwise it my turn lethal if not well guarded (Kisting, 2012).
Plans of cutting down on costs need to be approached with caution. Cost reduction strategies will automatically affect the normal functioning of the corporation. When cutting down costs it is important not to cut costs on essential activities or functions. This can cause more damage to the organization. The major competition for the Namibia Broadcasting Corporation comes from within the industry while the other factors adding to the cost of operation arise from the general economy. When choosing the cost-effective strategies the company has to assess their expenditure and identify areas where cuts in cost can be made. Costs can only be cut on functions that are non-essential and which contribute less to the output of the corporation. The other way through which costs can be trimmed is by teaming with other like minded corporations and sharing resources and functions (Kisting, 2012).
Customer-based strategies
According to Shankar and Carpenter, 2012, customers or clients form part of what defines the survival of any organization and any strategies that are aimed at maximizing growth must pay attention to customers. For strategic planning in organizations, Ohmae considers clients as one of the major pillars on which strategies are built. The interest of customers has to be given a fore priority by a company or organization. A company that puts the priority of its customers at the forefront of its operations becomes enticing to investors and other parties. Segmentation helps in the better understanding of customers of the organization. The Namibian Broadcasting Corporation has many customers in the country. These include people who listen to their programs. Statistics has shown that its radio stations are the most listened to. Its television is also watched by the largest audience as compared to other television stations in the country (Shankar and Carpenter, 2012).
Customer centric corporations have been reported to make huge profits than organizations which do not have customer centered policies. In marketing, customers are considered to be the valued treasurers for organizations. They buy products and services enabling the firm to acquire more income hence more capital on which to operate. In the media consuming society, there are many consumers of media products and services. However, the audience is too general, policies of gaining loyal customers for the company will be crucial. Sustainability in business is most of the times dependent on customers who are loyal to the products or services of the corporation. Customer based strategies can be subdivided into customers, segmentation of customers by objectives, segmentation basing on customer coverage, re-segmentation of customers and adopting the marketing mix (Shankar and Carpenter, 2012).
Customer segmentation
Organizations that are customer centered will have a wide scope of the consumption needs and patterns of their customers. There exists a very big range of consumption trends amongst a wider base of customers. The organization must be in a position to understand and differentiate these customers. This aids the organization to best attend to the segmented needs as per the different categories of customers. Segmentation is attained through studying the customers. After categorizing or segmenting customers, it becomes easy to tally their needs hence these needs can be achieved through specific policy implementations. The customer segments in the media industry or market is quite elaborate. This comes from the fact that the media covers the entire population which has different tastes in what they receive from programming (Peppers and Rogers, 2011).
The NBC has different categories of clients. There is a general audience which listens and views the programs that are broadcasted by the corporation. The second group of customers which is perhaps the most valued is composed of corporate organizations and individuals who air their adverts through the corporation. This category of customers is the main contributor of revenue for the company. The company airs commercials for them. The second category of customers is however dependent on the first group. Advertisement is part of business investment. Firms spend a lot of money on advertising. Corporate organizations will thus want to air their adverts in media houses that have many listeners. This assures them of reaching their customers who lie in the audience. The corporation will be required to improve in programming so that it can capture the needs of its general audience. It must come up with programs that suite the elite class or population as well as those programs that favor the local population. Different age groups and genders like or will be attracted to different programs. Therefore, there is a need for diversifying programs so that all the needs of the different age groups are met in the programs of NBC (Peppers and Rogers, 2011).
Customer Segmentation by objectives
Different customers derive different satisfaction from the corporation at different times. There is a group of clients who are interested in entertainment; others would want to be educated while others need to be updated on the ongoing both in the country and outside the country. The corporation has to adjust its programs so as to capture the different objectives of the listeners or viewers. Special programming has to be introduced with different programs covering specific themes which suit the objectives of listening or viewing by the customers (Shankar and Carpenter, 2012).
So far the corporation has tried to satisfy one major need of its general clients by airing programs in diverse languages. For NBC to capture the corporate world, it must aim at maximizing the coverage of the general audience. The real and potential customers of the companies that advertise through the corporation lie in the general public. Therefore business firms will only get more outcomes from the adverts if they are able to reach as many people as possible. As part of advertisement, business organizations also cover their events through the media and they cannot opt for media agencies that are incapacitated (Shankar and Carpenter, 2012).
Segmenting Customers by coverage
Marketing costs as well as marketing coverage have to be studied to ascertain the benefits of covering a large market in relation to its costs. For media houses covering a large market is beneficial. Larger market coverage will mean that the corporation will air its programs to a bigger region attracting more customers. The Namibia Broadcasting Corporation broadcasts throughout the nation. It thus has customers throughout the country. NBC will dissect its market basing on its customer categories. Dissecting the audience will aid the organization in adjusting programs to meet the specificities of each group or category of customers. This will also aid in improving its programing besides discovering new sub-categories of clients. As the new categories of audiences and needs are discovered, future strategizing will be easier. By doing this the corporation will achieve a big share of the market enabling it to adjust the charges on advertising, improving programming, promoting its programs and covering the entire Namibia and even the neighboring countries (Shankar and Carpenter, 2012).
The competitor- based strategy
Competition is something than cannot be avoided in the liberal economy. The strategic frame-working performance model recognizes the essence of dealing with competition. Ability to tame competition means that the organization will make profits. Competition can be generated from within an industry where a firm operates or from the general economy. Where competition exists, firms must learn how to come up with competitive strategies to sail them through the competition such an environment.
The Power of image in Namibia Broadcasting Corporation
Strategies of dealing with competition are necessary in firms. For organizations to adjust to competition, they must monitor their competitors and adjust their strategies relative to what their competitors are doing. Competitive strategies often aim at positioning the products in the market through the use of differentiation techniques. Differentiation the products in the media industry can be quite difficult as most of them have a similar line of production. However, it is the audience or customers who are able to differentiate between the qualities of programs of different media organizations (Chan-Olmsted, 2006).
The NBC can use the power of image in attaining a competitive advantage over the other broadcasting corporations. The power of image can be very influential in boosting business for an organization. Image is build through reputation which can be pegged on either history or the quality of products and services offered to customers. The NBC will count on both history and service quality to build the best image.
One of the determinants of the quality of media houses or broadcasting agencies is their profiles. The profile and the personality of the staffs of the corporation play a very big role in strategic positioning of media corporations. This has proven to be effective in many media houses in Africa and world over who even hire highly profiled staffs from other countries. The NBC needs to set high standards when hiring staffs. The organization can also outsource for highly profiled media personnel from other media agencies in the country and even outside the country. The more it will acquire these personalities the more it gain audience and attract customers and marketing agencies who will want to use these personnel in advertisement (Eastman, Ferguson and Klein, 2006).
Internet is a tool which many organizations are using to gain a wider market. Many media houses across the world have opted to use internet broadcasting to reach the global audience. This has proved to be effective as many people living in different parts of the world can access internet therefore airing through the internet is beneficial. The major competitor in the country kin terms of technological advancement is the DSTV which is operating under the MultiChoice Company. However, the DSTV is quite expensive to the population of Namibia. The NBC will make arrangements and export their programs to the internet from where they can be accessed by many people expanding its market. As the other Community media stations strive to capture the local population as its market, the NBK will have gained an international audience. A bigger audience at the international level will further open up the corporation to opportunities prevailing in the international market. Commercial internet providers began working in Namibia in the year 1996 and up now they have made a milestone. The rates of internet connection and can be afforded by the corporation (Eastman, Ferguson and Klein, 2006).
Changes in products and customer mix
NBC has attained a good level of trust from many people in Namibia. Many people like and tunes to their stations. The corporation will cement its relationship with their customers through continuous respect and fulfillment of their needs. In determining the needs of the audience, market research will be a helpful tool. The quality of its signals will be constantly checked and upgraded so as to make sure that the audience receives their programs without technical hindrances. Comprehensive customer relations and communication will be used in detecting any flaws in programing. Channels of constant feedback and interaction with customers through promotions and open forums will be set.
The marketing mix principle adds to the competitiveness of a company especially the improvement of marketing function in the corporation. The product being the first focus of the mix calls for NBC to identify its products which are the programs it televises and airs on the radio. This is what the company is selling to the audience or its customers. As explained earlier, improvement in programming will come from the understanding of their customers and their needs as concerning the programs. Airing a variety of programs will be an option since the market is composed of different audiences or customers. Setting the price affects a single group of customers – those people who air programs and adverts through the corporation. The corporation has to set friendly policies of negotiating prices for their customers. These policies must be rational and economically feasible to the customers. Customers must have a say in the prices that are set on the services of the corporation. Fair prices will be more appealing to the customers and give them a reason to keep buying the products – airtime.
Profit capitalization
Profit often occurs as an end product of the interaction between the different functional activities in the organization. NBC will continue to invest in activities that will help it in better understanding of its customers and addressing their needs. The organization will start to network with other foreign media houses to reach a much wilder audience hence maximize profits.
Profits form part of the motivating factors for corporations as they indicate the success of the applied strategies. It is important for a corporation to know the level of income that is being fetched from each strategy. Blanket coverage of profits is not a good idea for corporation. Weak functional areas or department in the organization are identified basing on the amount of profits generated from the department.
The NBC has two major functional departments of broadcasting which are the radio and the television. Therefore while computing profits at the end of a financial year, profits form each of these areas will be calculated before being put together to get the cumulative profits. Departments fetching low profits will form part of the priorities for review process. A review of performance produces results pointing to the reasons why the department is underperforming. Adjustments are made are made to improve on the weakness and addressing the challenges so that these functional departments can be more productive in future. This consumes resources but is a measure of ensuring that profits are maximized in the corporation.
Profit maximization is the goal of any organization that is in business. The costs must be minimized as much as possible for profits to be maximized. While applying cost cutting strategies in the Namibia Broadcasting Corporation, the management will be careful not to tamper with the needs and expectations of customers. Strategies like reducing broadcasting areas may have grave consequences for the company thus they must be approached with caution. Profit maximization in organizations has its risks. The corporation can focus on singular strategies that fetch more profits while ignoring other sectors that fetch profit on long-run basis.
The strategic performance frame-working is a comprehensive model that can be tailored to streamline performance in organizations. The Three c’s model addresses three areas that are essential in business on truck in the organization – the organization itself, the customers and competition. As strategies are made by focusing on these three areas, the overall business growth is reached. This is a very comprehensive exercise. The Namibia Broadcasting Corporation is a corporation that has been in existence for many years. With the liberalization of the media environment in Namibia, more competition has been accumulating in the industry. The suggested strategies as discussed can be very helpful is they are fully applied in they are followed well. If the corporation is fully privatized it will be able to focus on growth and implement more competitive strategies as the strategic performance frame-working suggests. These strategies are developed and applied in a continuous manner since the success or failure of a given strategy results in formulation of other strategies. If all the areas in the strategic triangle model are given the attention that they deserve, the NBC will maximize its profits. The corporation can become a benchmark in the media industry not only in Namibia but also in other countries in Africa and the entire world.

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