Visions, Missions and Values

Aims1. To understand the Visions, Missions and Values of

specific companies and why they exist.2. To understand how a creative media company is

funded governed and regulated.

Objectives3. Produce a ‘New Entry Booklet’ for a fabricated

creative media company.

Unit 8 – Creative Media Industry Awareness

Visions, Missions and Values

• What are visions, missions and values?• What might you find in them?

Visions• Describe the long term ambition of a company (5-10

years)• Expansion• Target turnover figures• National and international markets• Vision is about what a company intends to be

Visions, Missions and Values

Missions• Mission statements describe the organisation’s

current purpose, products, core values and aims

Values• Core values of an organisation relate to its business

ethics, conduct and philosophies

• Why are visions, missions and values important to a company?

TASKS1. Read through the visions, missions and

values supplied and pair them with a creative media company

2. Read through the remits statements and pair them with the corresponding BBC channels

3. Write the visions, missions and values for a media company of your choice – you don’t have to like them…

Funding, Governance and Regulation

Private Ownership / Funding

• Owned by an individual, a small group of people or stakeholders

• Main purpose is to survive and be profitable in a marketplace

• Single Enterprise – usually small scale, one owner, limited to one business

• Chain Ownership (horizontal integration) – numerous companies in the same business occupy different media market places (newspapers, radio, TV)

• Conglomerate Ownership – HUGE companies with many smaller subsidiary firms

• Only need one stakeholder to create a Private Limited Company

Examples of UK Private Media Companies

• Guardian Media Group (GMG) – Manchester Evening News, Smooth FM, Century FM

• Profit £305m (sale of 49% stake in Trader Media Group)

• Founded in 1821 with the birth of The Manchester Guardian, founded by John Edward Taylor

• Recently seen operating losses in print and radio

Examples of UK Private Media Companies

• Northern & Shell (Richard Desmond) – The Daily and Sunday Express, Channel 5, Television X

• Founded in 1974 when Desmond created International Musician and Recording World

• Desmond is reportedly worth around £1bn

Examples of UK Private Media Companies

• The Economist Group – The Economist, Intelligent Life

• Owned by Pearson PLC (through the Financial Times)

• Made nearly £68m in 2012

• On of the UK’s most profitable publications

Private Media Companies

Pros

• Not accountable to shareholders therefore have more freedom

• Not under as much scrutiny

• You can own property in the name of the company

• Smaller amount of employees so better relationship with director

Cons

• More difficult to find capital

• Less input from others may be counter productive

• Smaller company so ceiling is a lower for employees

• May not provide a balanced range of products

Public Limited Companies

• Public company whose shares are sold free on the stock exchange

• Can only loose to amount of shares that you put in

• A company needs two directors in order to become a PLC

• Costs a lot to float a company on the stock exchange

• Usually BIG companies

• Need two stakeholders to create a PLC

• Company directors accountable to stakeholders

Examples of PLCs

• Virgin Media Inc.

• Total assets = £8b

• Formed as a merger between NTL, Telewest and Virgin Mobile

• Employs 15,000

• Bought by Liberty Global for £19b

• Subsidiary of Richard Banson’s Virgin Group Ltd

Pros and Cons of PLCs

Pros

• Limited Liability for stakeholders

• Opportunity to raise capital by issuing shares

• Easier to sell than a sole trader

• May appear more professional and credible

Cons

• More difficult to set up than a private company

• Would have to share profits with shareholders

• Less say – shareholders have an input

• Taxed heavily

Publically Funded, State Owned

• Funded by the public through either a tax or a fee

• Not a ‘competitive’ business

• Aims to serve the nations interests

• Good example is the BBC, paid for by the licence fee.

• Employs over 23,000 people

• Revenues of £5bwww.bbc.co.uk/historyofthebbc/wherenext

Charities / Non-profit Organisations

• Run often by volunteers

• Student companies

• Community radio stations

• May be used to promote a charity or charities

• Still regulated by relevant bodies

• Sometimes operate illegally (pirate radio stations)

GovernanceBoard of Directors• Often chosen by the shareholders• Direct company business• Made up or executive (those paid to direct the company) and non-

executive directors (those not paid but offer advice)• Usually a top-down approach (CEO – President – Directors –

Chairman…)

Committee• Play an advisory role in terms of finance, legality etc• Can be paid or un-paid

BBC Trust• Governs the BBC on behalf of the public• Makes sure the BBC sticks to its visions, missions and values• Work independently from the Executive Board, which is headed by

the Director General

Regulation• Ofcom (Office of Communications):

Regulate the TV and radio sectors, fixed line telecoms, mobiles, postal services, plus the airwaves over which wireless devices operate

• Operates under the Communications Act of 2003

• Ensure the UK has a wide range of communication services

• Protect people from harmful of offensive material

• Protect people on television from being unfairly treated and having their privacy invaded

• Make sure television and radio are provided by a number of organisations

Regulation• BBFC (British Board of Film

Classification: Age ratings body for film, video games, theatre, DVD and video

• Protect  the public, and especially children, from content which might raise harm risks

• Respond to and reflect changing social attitudes towards media content through proactive public consultation and research

• Provide an effective service to enforcement agencies

• Work also as an educational body

• Accountable to Parliament

• Part-funded by industry, part-funded by the Government

Regulation• PPC (Press Complaints Commission): A regulatory body that oversees the

publishing industry

• Deals with complaints, framed within the terms of the Editors' Code of Practice, about the editorial content of newspapers and magazines (and their websites, including editorial audio-visual material) and the conduct of journalists.

• The purpose of the PCC is to serve the public by holding editors to account.

• They strive to protect the rights of individuals, while at the same time preserving appropriate freedom of expression for the press.

• Being overhauled on the back of the Leverson Report.

Regulation• BSC (Broadcasting Standards Commission): Works under the Broadcast Act of 1996

• Statutory body for both standards and fairness in broadcasting

• The only organisation within the regulatory framework of UK broadcasting to cover all television and radio, both terrestrial and satellite

• 1. to produce codes of conduct relating to standards and fairness;2. to consider and adjudicate on complaints;3. to monitor, research and report on standards and fairness in broadcasting

• Now part of Ofcom

Regulation

• ASA (Advertising Standards Authority): Regulates advertising across all media

• Independent regulatory body who work under the Advertising Codes

• Being an effective part of the response to societal issues shown to be affected by advertising

• Place more emphasis on prevention rather than cure

• Investigate and adjudicate on potential breaches of the Advertising Codes

• Monitor compliance with the rules of the Advertising Codes