Relationship between strategic planning and corporate results case. (c2005)

Abstract

The purpose of this research is to examine the relationship between strategic planning and corporate results in volatile environments such as the Middle East and in particular the broadcasting industry. Broadcasting is known for being affected by many exogenous factors such as political and economical. We analyzed the major components of the strategic planning: Budget, Resources and Duration. We noticed a tight relationship between the strategic planning components and corporate results. The efficiency of the strategic planning would vary with the modification of these components. In addition to that we noticed a clear relationship between corporate results and channels typologies whereas major general entertainment channels are capturing the biggest share of the total advertising revenues. The budget allocated to the strategic plan represents a share of the total revenues dedicated to the expenditrrres of the planning team. We divided the budget into sections to identify the part that would be more sensitive to the channels output. Resources allocated represent the number of employee working in the strategy unit. The total number will vary from one company to another. The duration of the strategic plan represent the period covered by this plan. It could vary from one to five years according to the main objectives of the company. On the other hand, channels typologies represent the programming strategy of the channel. The focus was on channels with general entertainment as main programs versus channels with education as mam content. We analyzed the effect of each of these components on the channels results that would include: share of audience, share of advertising revenues and reach. Share of audience (SOA) would represent the number of Arabic Viewers that are watching this channel. It is computed as a percentage from the total population. Share of advertising revenues represents the shares that the channel is capturing from the total advertising spend in the broadcast industry. Finally, reach represents the transmission coverage of the channel.