Strategic Auditing for Astro: Malaysia's Leading Integrated Cross-Media Group

Topics: Board of directors Pages: 7 (1982 words) Published: September 13, 2015
I. CURRENT SITUATION
A. Current Performance.
Leading integrated cross-media group with operations in 4 key businesses which include Pay TV, Radio, Content and Digital. Launched in 1996 Has a 50% penetration of TV homes in Malaysia or 3 million customers, making it a key pay TV operator in Southeast Asia. ASTRO is a leading edge innovator with its introduction of HD, 3D and PVR – a first in Malaysia, as well as both Video-On-Demand and IPTV services. Currently, Astro broadcast over 153 channels, of which 16 are in HD. B. Strategic Posture

1. Mission
To create an organization that will exceed customer’s expectations in quality on time delivery, problem solving, service and cost control. 2. Objectives
To make best use of its shareholders worth by means of increasing the size of its business by devoting and providing new opportunities in the media production internationally in order to get sustained growth in revenues with a view of early cash flow generation. Search in new ways to boast its contribution mostly in the penetrated economies. Its own operational and monetary aims which are different in terms of diverse business units. 3. Strategies

Aiming to discover the correlation between customer marketing strategies implementation Determine the feedbacks from rewarding its current 1.53 million sport’s package subscribers through the execution of sports ground events and corporate social responsibility. To retain the customer loyalty from withdrawing the sports pack, the important of ground events and corporate social responsibility needs to be done. II. STRATEGIC MANAGERS

A. Board of Directors
Consists of three directors who are non executive with one executive chairman and one non executive director. B. Top Management
Responsible for managing their departmental activities related to different brands and sections. The link between the lowest level and the board and mostly comprises of managers and senior managers who implement the plans made by the top levels. III. EXTERNAL ENVIRONMENT

A. Natural Environment
1. Growing usage of energy availability is the problem, whereby it generates high consumption of energy. (T) B. Societal Environment
1. Economic
a. Enlarge its target market not only to households, but hotels, residential areas, other business entity, and institutions. (O) b. Intense competition from the market, now many paid-TV firms are penetrating the market. (T) c. Existing pay-TV household penetration rate of 54% indicates there is still room to grow. (O) 2. Technological

a. Rising demands in emerging technology markets. (O)
b. Higher demands of HD services, unable to fulfill the demands from markets. (T) 3. Political-legal
a. Environmentalism being reflected in laws on pollution and energy usage. (T) b. Piracy of motion pictures; everything can be downloaded for free in the Internet. (T) 4. Sociocultural
a. Divorce and career mobility means need for more money to fill them, so the desire to cut the contract or delaying its payments are high. (T) b. Bundled services with strategic partners could strengthen its market leadership. (O) C. Task Environment

1. Vigilant consumers demand high quality services with low price in safe, environmentally sound services. (T) 2. Rivalry low. No competitors for the time being, it concurs the market positions and leadership in pay-TV industry. (O) 3. Buyers’ power high. Since it is the one and only pay-TV firms locally. (O) 4. Other stakeholders’ power medium. Quality, safety, and environmental regulations becoming strictly increasing due to it lead to societal issues. (T) 5. Threat of substitutes medium. RTM1, RTM2, TV3, 8TV and TV9 still takes the positions in the market, and it is free. (T) 6. Entry barriers high. New entrants locally are unlikely to happen, except for large existing international firms. (T) IV.INTERNAL ENVIRONMENT

Strength
Astro has first-mover advantage in the pay TV business in Malaysia.  It continues to...
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