I need to submit a business implementation plan

User Generated

Naba1978

Business Finance

MBA 705

Southern New Hampshire University

MBA

Description

My business idea:

Business innovation is important for every company in order for it to sustain and grow. With the right innovation, it will allow the company something unique to offer its customers that set them apart from the competitor (Tredgold, G. 2018).

My business concept or product idea involves an Intrapreneurship opportunity for ESPN. ESPN is a subsidiary of The Walt Disney Company and falls under Disney’s Media Networks segment. ESPN has an over-the-top (OTT) streaming service called ESPN Plus that allows you to watch various major sporting events and ESPN platform shows through this app. With the changes in consumer consumption habits and competition, ESPN had to change the way they were providing content for viewers. 

This company is a global brand and because of their global recognition when the company produces a new product, sports fans who are also fans of the brand want to be involved. 

The product idea I have involves a collaboration with the already established direct-to-consumer app ESPN Plus. The ESPN Plus Data Tracker will act as a one-stop-shop of information gathering for sports content. The product would work as a component within the ESPN Plus app. It will be a tool for the public sector, news and information environment, and PR and Communications industries to streamline content gathered from various social media outlets and funnel it into one main source. 

My concept will be something unique to the avid sports fan because it will allow them to follow a particular team or player and know their every social move without the hassle of flipping through various social media channels, the team’s website and other online outlets all in one setting and on one platform. 

Because the idea will be incorporated with an already established ESPN component, my concept is an Intrapreneurship for the company. There are several social media apps however with ESPN Plus Data Tracker it allows users to streamline their information without getting all of the other outside noise and focus solely on what is important to the user. 

For the News and Information sector, which includes sports and other media outlets, Public Relations and Communications firms, ESPN Plus Data Tracker will allow users to discover significant breaking news before it is made public knowledge, which is ideal in an industry where networks and other media outlets want to be the first to break the news.

In the current marketplace social media outlets, including Facebook, Twitter, Instagram, and Snapchat are oversaturated with news and information, which can be overwhelming (Brown, C. 2018). In order to get information from a variety of sources you have to follow or friend that component. The difference between these outlets and ESPN Plus Data Tracker is that you do not have to befriend or follow anyone if you do not choose to. For example if you decide to have your preferences focus on the SEC sector of College Football, or if you have a Fantasy football team and need to know any news and information that may help you,  you can customize your search options to get only that information. This would include information from small news outlets to bigger ones, to football player tweets, Facebook and IG posts, to school tweets, Facebook and IG posts. Once you select your preferences, you will only get information pertaining to those preferences.

Unformatted Attachment Preview

MBA 705 Milestone Two Guidelines and Rubric Overview: For the capstone assessment, you will create a business implementation plan and audiovisual presentation for the product, service, or idea you have been developing throughout your MBA coursework. In Milestone Two, you will submit an implementation plan, which is a clear and comprehensive plan for implementing and managing the concept from inception to completion. Although the details of your plan will necessarily depend upon your concept, at a minimum, your plan should include the following critical elements: Critical Elements:  Physical and technological resources needed for the concept, including where these will come from and how they will be used to reduce cost or improve operations. Be sure to discuss why one resource option is better than another where appropriate. • A detailed implementation schedule covering what needs to be done, by when, and, tentatively, by whom. (Note that key personnel will be covered in more depth in Milestone Three.) The schedule should identify the critical path to success and outline the dependencies between tasks. • Project review processes and indicators of success to ensure that the project stays on target. • An explanation of how intrapreneurship or entrepreneurship factor in to the implementation of your plan and how you will protect intangible assets, such as intellectual property or brand. Guidelines for Submission: Your draft must contain all of the elements listed above. It should be 5 to 8 pages in length (excluding the title page, references, and appendices) using 12-point Times New Roman font, with one-inch margins. You may include summary pictures, charts, graphs, or other explanatory diagrams as needed to successfully explain the concept and implementation, but should use appendices for detailed supporting documentation. Your paper should follow APA guidelines. You must include at least 5 scholarly sources. Cite your sources within the text of your paper and on the reference page. Critical Elements Main Elements Critical Thinking Physical and Technological Resources Implementation Schedule Project Review Processes Proficient (100%) Includes most of the main elements Provides logical conclusions and defends with examples Provides physical and technological resources and includes a discussion of the source of the resources and why certain options are better than others Provides an implementation schedule and the critical path to project success, including dependencies among tasks Provides a project review process and shows how the process will keep the project on track, including indicators of success Not Proficient (0%) Does not include any of the main elements Does not provide logical conclusions Value 15 15 Does not provide physical and technological resources 15 Does not provide an implementation schedule 15 Does not provide a project review process 15 Intrapreneurship or Entrepreneurship Provides an explanation of how intrapreneurship or entrepreneurship factor into plan implementation and includes a discussion of how to protect intangible assets Articulation of Response Submission does not have critical errors related to citations, grammar, spelling, syntax, or organization that prevent understanding of ideas Does not provide explanation of how intrapreneurship or entrepreneurship factor into plan implementation and does not include a discussion of how to protect intangible assets Submission has critical errors related to citations, grammar, spelling, syntax, or organization that prevent understanding of ideas Total 15 10 100% My business concept or product idea involves an Intrapreneurship opportunity for ESPN. ESPN is a subsidiary of The Walt Disney Company and falls under Disney’s Media Networks segment. ESPN has an over-the-top (OTT) streaming service called ESPN Plus that allows you to watch various major sporting events and ESPN platform shows through this app. With the changes in consumer consumption habits and competition, ESPN had to change the way they were providing content for viewers. This company is a global brand and because of their global recognition when the company produces a new product, sports fans who are also fans of the brand want to be involved. The product idea I have involves a collaboration with the already established direct-toconsumer app ESPN Plus. The ESPN Plus Data Tracker will act as a one-stop-shop of information gathering for sports content. The product would work as a component within the ESPN Plus app. It will be a tool for the public sector, news and information environment, and PR and Communications industries to streamline content gathered from various social media outlets and funnel it into one main source. My concept will be something unique to the avid sports fan because it will allow them to follow a particular team or player and know their every social move without the hassle of flipping through various social media channels, the team’s website and other online outlets all in one setting and on one platform. Because the idea will be incorporated with an already established ESPN component, my concept is an Intrapreneurship for the company. There are several social media apps however with ESPN Plus Data Tracker it allows users to streamline their information without getting all of the other outside noise and focus solely on what is important to the user. For the News and Information sector, which includes sports and other media outlets, Public Relations and Communications firms, ESPN Plus Data Tracker will allow users to discover significant breaking news before it is made public knowledge, which is ideal in an industry where networks and other media outlets want to be the first to break the news. In the current marketplace social media outlets, including Facebook, Twitter, Instagram, and Snapchat are oversaturated with news and information, which can be overwhelming (Brown, C. 2018). In order to get information from a variety of sources you have to follow or friend that component. The difference between these outlets and ESPN Plus Data Tracker is that you do not have to befriend or follow anyone if you do not choose to. For example if you decide to have your preferences focus on the SEC sector of College Football, or if you have a Fantasy football team and need to know any news and information that may help you, you can customize your search options to get only that information. This would include information from small news outlets to bigger ones, to football player tweets, Facebook and IG posts, to school tweets, Facebook and IG posts. Once you select your preferences, you will only get information pertaining to those preferences. References: Brown, C. (2018) Social Media is Evolving into a Marketplace Retrieved from: https://www.socpub.com/articles/social-media-evolving-marketplace16051 Tredgold, G. (2018) 4 Reasons Why You Need to Focus on Innovation Retrieved from: https://www.inc.com/gordon-tredgold/4-reasons-why-you-need-tofocus-on-innovation.html RUNNING HEAD: FINAL PROJECT SUBMISSION Comprehensive Business Plan 9-1 Final Project – Week 9 Paushawna DeCordova-Boyd Marketing and Strategy MBA-560-X1363 Professor Jonathan Chernes December 2, 2018 1 FINAL PROJECT SUBMISSION 2 TABLE OF CONTENTS ABSTRACT.................................................................................................................................... 3 SECTION I: EXECUTIVE SUMMARY ....................................................................................... 4 SECTION II: CONTEXT ............................................................................................................... 7 SECTION III: NEED ...................................................................................................................... 9 SECTION IV: STRENGTHS AND WEAKNESSES .................................................................. 12 SECTION V: CORE COMPETENCIES ...................................................................................... 23 SECTION VI: PRICING .............................................................................................................. 26 SECTION VII: REFINEMENT .................................................................................................... 33 CONCLUSION ............................................................................................................................. 39 REFERENCES ............................................................................................................................. 41 FINAL PROJECT SUBMISSION 3 ABSTRACT There are several ways to measure the success of a new product or service. Some may say the defining goal that the product is attempting to achieve is more important than the product itself. (YML, 2018). Brand equity reflects on the value of the brand name and logo as promotional tools for attracting future buyers and building market share and profitability. A customer’s ultimate satisfaction depends on whether the product actually lives up to its expectations and delivers the anticipated results. (Mullins, J & Walker, O. 2013). The media industry has a very competitive landscape, and in order for the ESPN+ Data Tracker add-on service to successfully compete in an ever-evolving industry, will depend on ESPN’s capacity to provide high-quality content that is relevant to the viewer. The company will also have to adapt to technological developments, and respond to consumer trends. There also has to be a strategy put in place to differentiate the product from the competition in order to set itself apart. These strategies include setting objectives and performance standards, specifying feedback, obtaining data, then evaluating that data, and implementing a plan of action to address what may need to be remedied. (Mullins, J & Walker, O. 2011). This business plan will examine how the ESPN+ app can be even better with data tracking and delivering real time social media alerts from athletes, and fan reactions for a sport or a story leading up to or after an event. It will examine how this app can be marketed, priced, and how it differentiates itself from the competition. It will also focus on the consumer target demographic for this product along with its chosen target market; while diving into how FINAL PROJECT SUBMISSION 4 the fixed and variable costs fit in with ESPN’s short and long-term goals and determine the best pricing strategy. A SWOT assessment and ethics factors have an impact on the Data Tracker add-on service through examining consumer trends and explaining how it influences the branding success of the device concept. The plan will also touch upon ESPN’s core competencies, and how this add-on service factors into those proficiencies. There are various ways to evaluate the success of the ESPN+ Data Tracker app such as, suggesting regular processes that extend across ESPN business segments. The business plan will touch on how to effectively receive feedback and collect relevant information on the corrections needed to improve the app using feedback loops. Lastly, it will identify and integrate other factors that may have an impact on the implementation of the app through setting objectives and performance standards. SECTION I: EXECUTIVE SUMMARY The Entertainment Sports Programming Network otherwise known as ESPN, a subsidiary of the Walt Disney Company has solidified its brand by becoming the most important brand to fans as it relates to sports. Considering all the sources people use for sports, 51% say ESPN is the most important to their enjoyment. In an average minute, 2 million people are consuming ESPN media globally. (ESPN Brand Tracker, 2017). ESPN’s newest product ESPN+ caters to the viewing demand of these sports fans who would normally flip on the television to watch ESPN, but instead have just as much access to what they want to see through the mobile app and TV streaming service. FINAL PROJECT SUBMISSION 5 ESPN+ is the first direct-to-consumer service offering from Disney Direct-to-Consumer and International, which offers subscription-video-on-demand viewing. It is powered by BAMTECH, a unit of Disney Direct-to-Consumer and International. (Adler, K. 2018). Sports fans and consumers want the ability to stream on-demand content through various platforms in order to meet their consumption needs. They want immediate highlights at an extremely quick turnaround without the high cost. As stated by ESPN President Jimmy Pitaro, ESPN was built on a belief in innovation and the powerful connection between sports and a remarkable array of fans. That same belief is at the heart of ESPN+. It gives fans access to thousands of live games, as well as world-class original programs and on-demand sports content, all at a great price. (Adler, K. 2018). ESPN+ is an add-on within the redesigned ESPN app, and not a standalone service. It features roughly 10,000 sporting events each year; and has live content from MLB, NHL, MLS, collegiate sports and tennis’ Grand Slam events for $4.99 per month. (Statt, N. 2018). The app’s concept is undeniably a great idea. However, there are opportunities to make this app an even greater resource for sports fans everywhere. ESPN’s website and digital platforms compete with other websites and entertainment platforms in their respective categories. ESPN is also competing with other networks for the acquisition of sports and other sports programming. The market for programming is competitive, especially for live sports programming. (MarketLine Advantage, 2018). Moreover, its internet web sites and digital products compete with other web sites and entertainment products in their respective categories. (MarketLine Advantage, 2018). FINAL PROJECT SUBMISSION 6 The increasing networks on both television and online intensifies the competition for advertising revenue in both areas. These industries are constantly competing for a slice of each other’s market shares. ESPN’s businesses face online threats from a variety of direct competitors such as Sports Illustrated, Bleacher Report, CBS Sports, Yahoo Sports and NBC Sports. The ESPN+ app is also competing with other direct-to-consumer services such as Amazon Prime, which now streams Thursday NFL Football live, Facebook, which now streams MLB games live, and Twitter. The entertainment and media industry is subject to frequent changes due to the rapidly changing customer preferences. This increases the competition in the industry. Failure to harness competitive advantages, and tackle the growing competition could affect the company’s financial and operational performance. (Gale Business Insights: Global, 2017). One question posed is how does a company who put so much of its focus on linear television compete with the ever growing online streaming and social media platforms? The answer is they have to become even more innovative. This is through creating easily accessible viewable and interactive content through social media and mobile apps. The ESPN+ data tracking add-on concept can have a greater impact for ESPN+ by telling the full story through tracking sports content and reactionary content in real time. The concept of ESPN+ Data Tracker is to be an add-on service for ESPN+. ESPN+ Data Tracker will allow all sports fans and especially avid sports fans, who make up 43% of the sports fan base, totaling 109 million people, to track their favorite sports team s, and players while following any storyline pertaining to their favorites through the app using real time alerting. FINAL PROJECT SUBMISSION 7 The user will be able to customize their search by continent, region, country, province/state, or create a custom search option. They will also be able to categorize the content they receive by priority levels, which include global importance, national importance, and local importance. Users have the option to receive high alerts, which include high level breaking news stories, to momentum stories that are more fun and less newsworthy. The app will act similarly to a social media account for sports content. It is perfect for fans who follow a particular team or player and want to know their every social move without the hassle of flipping through various social media sites. SECTION II: CONTEXT Defining Features ESPN’s mission is to serve sports fans wherever sports are watched, listened to, discussed, debated, read about or played. (Adler, K. 2018). Its tagline is “The World Wide Leader in Sports.” ESPN+ is gearing up to become the “World Wide Leader” in streaming sports content. Sports fans already have the opportunity to personalize the ESPN+ app to meet their sport preferences. If a viewer is a Los Angeles Lakers fan, they can personalize the app to generate Lakers content first, before viewing any other sport related content. With the concept of ESPN+ Data Tracker, which will be an add-on to ESPN+, consumers are able to get immediate highlights in real time, and fan reaction to that highlight as its taking place. For example, that Lakers fan who personalized their app would also have the opportunity to customize whether or not to get live tweet alerts from players, and other sources regarding any Lakers news and information. The app’s customization will allow that fan to get the latest news in three categories regarding their team or player, by global importance, national importance, and local importance. FINAL PROJECT SUBMISSION 8 The ESPN+ Data Tracker feature will be marketed internally by giving all ESPN employees the opportunity to download the app with a free one-year subscription. This allows them to experience what the app is capable of and spread the word to family and friends. ESPN can continue to utilize all platforms to promote the app and its feature this includes cable TV channels, ESPN Magazine, ESPN Radio/Audio, the current ESPN mobile app, and social media. ESPN has the largest digital audience of any sports publisher with over 67 million and counting unique visitors on their social media platforms. (Willens, M. 2018). Subscription offers can be sent to site visitors who frequent the site and mobile app users. The company has a ticker called the ESPN Bottom Line during all broadcasts and can promote ESPN+ Data Tracker regularly on its television platforms. Brand Fit & Effectiveness A brand is only as good as their customers perceive them to be, and a brand’s value depends on how much value customers think the brand provides for them. Almost all Americans say they are aware of ESPN or one of its sub-brands. This totals over 268 million people. (ESPN Brand Tracker, 2017). ESPN has dominated the sports television industry after it became the world’s first allsports, satellite-delivered cable television network. ESPN’s most unique feature includes its flagship program the daily live SportsCenter, which provides viewers with the most up-to-date informational sports service available covering scores, news, previews, features and game highlights. (Adler, K. 2018). The idea behind branding is to make sure sales and success for that product is easily identifiable to the consumer. The first notion that comes to mind when thinking of ESPN and its flagship show SportsCenter is the end tag…Da Da Da… Da Da Da. This makes ESPN FINAL PROJECT SUBMISSION 9 identifiable to its customers. The company’s brand has not only distinguished itself in the sports media market, the ESPN’s brand has solidified itself so much so that it has appeared in several movies and TV shows as a reference to anything sport related. An effective brand not only has great customer service and social responsibility, the product has to work well and be of high quality. (Simpson, J. 2017). ESPN has mad e its mark as the World Wide Leader in Sports with brand effectiveness and creating an emotional relationship with the customer along with quality programming that touches all sports fans in some way. That is what has sustained its longevity in an ever-changing, ever-growing competitive market. SECTION III: NEED Basic Demographic On average, Americans spend one-fifth of their day on leisure activities with three hours a day spent watching television. In 2017, the number of TV viewers who typically watch sports on TV amounted to over 104 million viewers. (Statista, 2017). According to a Mintel marketing report regarding sports fans, 85% of US adults follow at least one sport, and an avid sports fan will never miss a game/event for their sport team. About 43% are avid fans, which amounts to 109 million people. 21% are casual fans, and 21% occasional fans. The avid sports fan is represented to be men under the age 45, who are married with children, middle-income earners with a mid-range household income of $50-99.9K, Hispanic, urban dwellers, and employed. Adults with children under 18 are more likely than a non-parent to be an avid sports fan. This is primarily driven by the dad’s passion for sports as it satisfies both familial and social desires. A younger adult avid sports fans’ interest in sports is FINAL PROJECT SUBMISSION 10 hugely in part due to the incorporation of technology in sports, making viewing more accessible, as well as the social components. (Mintel Academic, 2017). Avid fans are more likely to travel and pay extra to watch sports. They are more likely than general sports fans to have a cable subscription primarily to watch sports and spend more time and money to support their team. Avid fans are also more prone to record their sporting event in order to avoid commercials. (Mintel Academic, 2017). Other Characteristics On a game day if you were to open Facebook or Twitter you will see threads full of passionate sports enthusiasts discussing the game, players, and their excitement or disappointment in their team. As of 2017, 61% of sports viewers follow sports accounts and 80% interact on social media, which has become the second screen for the sports industry. (Karr, D. 2017). Sports events and social media go hand in hand, especially in an era where every team, league, or sports association has at least one social media account and these profiles have millions of fan followers. Fulfilling a Sports Fan’s Needs Even with pay TV cable subscriptions drastically on the decline due to consumers cutting the cord, and the amount of options and improvements to give fans wider access to games/events on various streaming services and apps, 65% of sports fans still prefer to watch games at home on TV in real-time. The viewing preferences, behaviors, and attitudes differ by the specific sports that a fan follows. (Mintel Academic, 2017). Sports is still competing with various activities for the leisure time of consumers. Avid sports fans who make up the majority agree that some sports/games last too long, and may turn their attention away from the game. While watching live sports, these fans often engage in other FINAL PROJECT SUBMISSION 11 activities at the same time such as socializing, using their smartphones to check email, scroll through social media and online sites, or cooking. The demand for instant access and instant gratification has morphed into an expectation. Consumers want scores and highlights almost immediately. With the vast amount of sport apps and media channels users can get decision fatigue. ESPN+ Data Tracker capitalizes on this trend by giving users an increasingly personalized one-stop digital destination for all platforms ESPN has to offer. Not only will the app provide transactional and subscription access to live events, it gives the customer the ability to get instant fan, team and player reactions across the globe. The average of 7 out of 10 avid and sports fans agree that attending sporting events can be too expensive. Roughly, 71% of the avid fan says attending a sporting event is too expensive. While 67% are more interested in sports during playoffs. In addition, 40% say due to advances in technology they are less likely to attend a sports game and instead watch from a device, social media, or streaming app. (Mintel Academic, 2017). The current financial situation of the targeted consumer will likely have a strong impact on their ability to attend the event. Another impacting factor is the sport league schedule, with most sports fans and avid fans saying they are more interested in sports during the playoffs. With access to games from the comfort of their home, social media, and apps, fans do not feel the need to pay the cost to attend a live game. (Mintel Academic, 2017). Sports fandom is driven by the fan’s passion and commitment to watching a specific sport or league. ESPN+ Data Tracker is ideal for sports fans in this target market because it caters to their demands and needs. The price point is also reasonable for the consumer demographic. FINAL PROJECT SUBMISSION 12 SECTION IV: STRENGTHS AND WEAKNESSES Strengths Distribution Network, Brand Portfolio ESPN has built a solid and reliable distribution network that reaches a majority of its potential market. (Fern Fort University, 2017). The company boasts a wide distribution with a presence in more than 200 countries globally and having the sports rights to more than 130 League and sports globally. (Bhasin, H. 2018). ESPN has invested a lot of time in building a strong brand portfolio over the years, which is extremely useful when the company wants to expand into new product categories and test new markets. The company has made successes of new markets due to its brand, which has allotted them to build a new revenue stream and diversify within the economic cycle risk in the market it operates. (Bhasin, H. C. 2018). Primary business entities include television networks, audio, digital, publishing, event management, multiplatform businesses, location-based businesses, and corporate citizenship. (ESPN Media Zone, 2015). Strong Parent Company, Free Cash Flow ESPN has a strong parent company, The Walt Disney Company. Disney is one of the leading entertainment conglomerates in the world. One of the core operations Media Networks, contributed to roughly 42.6% of the company’s total revenue in fiscal year 2016. Its cable networks derive the majority of their revenue from affiliate fees and ad sales. (Gale Business Insights: Global, 2017). With a strong parent company comes a solid free cash flow. Free cash flow (FCF) is an assessment of the amount of cash a company generates after accounting for all capital expenditures. (Investopedia, 2018). This cash flow gives the company the advantage to take FINAL PROJECT SUBMISSION 13 risks when expanding new product segment categories and testing new markets. For fiscal year 2017, Disney’s FCF was valued at 9,571 (million). This provides resources to allow ESPN to expand on new projects. It also helps in product innovation and the development of new products. Free cash flow also allocates ESPN to invest its resources in the training and development of their employees through learning programs and workshops. This results in a highly skilled workforce that is motivated to achieve more. (Fern Fort University, 2017). Skilled People Necessary for the implementation of this product are individuals who know and understand mobile platforms and can maintain editorial standards for the app, and edit and publish video content. Content personalization product managers; who would be responsible for the editorial content, engineering and design of the personalized apps. ESPN has a highly skilled workforce and this has come through recruiting the right people for those positions, along with training others through learning workshops and programs. Individuals who can translate strategy and product vision into product deliverables are necessary to make the ESPN+ Data Tracker opportunity happen. ESPN has a powerful strategy for gaining competitive advantage by building a company with talented, well-motivated people at every level. These talented people are constantly thinking of new products and services and develop effective work processes to aide in these ideas coming into fruition. Competitive Advantage The ESPN App provides a 3 in 1 experience for the consumer. It has the free component to include news, highlights, stats and analysis. The second component contains the TV everywhere authenticated layer, which allows consumers who currently subscribe to the ESPN cable channel to have access to ESPN live television when signing into the app through FINAL PROJECT SUBMISSION 14 their cable subscriber. The third component is ESPN+, the direct-to-consumer subscription service offering thousands of live events, original content, and an unmatched library of ondemand programming. (ESPN Media Zone, 2018). Several streaming services directly compete with the ESPN App, however the company’s brand is extremely popular; and considering all the sources people use for sports, 51% say ESPN is the most important to their enjoyment. People trust the ESPN brand, which is a benefit to this new product the ESPN+ Data Tracker, because it would automatically gain the people’s trust. ESPN+ is already making its mark as one of the top over-the-top (OTT) direct-toconsumers sports apps. Consumers will be more susceptible to jump on board because of the name and brand alone. The app today is also quickly becoming the destination for top sports stars and top athletes. This also gives ESPN an advantage when launching the Data Tracker add-on as it relates to athletes’ social media platforms. New Launches ESPN could capitalize on its new product launches to drive revenues. In March 2016, the company began offering live and on-demand streaming in the US through ESPN Cricket Pass, a subscription streaming service accessible on computers, smartphones, tablets and connected devices through a dedicated website and app. (Gale Business Insights, 2017). ESPN dot com launched a new sports vertical covering the world of competitive gaming, which falls under the esports category. This launch was a part of the company’s initiative to capitalize on increasing requirements of a growing audience. (Gale Business Insights, 2017). After the successful launch of ESPN+, ESPN’s parent company Disney is set to launch its own direct to consumer services in 2019. This will be a straight-to-consumer streaming FINAL PROJECT SUBMISSION 15 service designed for its animated films and Marvel and Star Wars properties. This service is gearing to launch in 2019, and the company has moved to end its licensing deal with Netflix as a result. (Statt, N. 2018). With these new launches is an opportunity to create a level playing field for all players in the online streaming industry. This will give ESPN a great opportunity to drive home its advantage in new technology. Weakness Distinguishing Features The ESPN App is user friendly when dealing with highlights, stats and analysis, and live games. It does not have the level of fan engagement that will bring this app to the next level. With fan engagement at an all-time high, fans want to feel like they are a part of the team or a friend to their favorite player. ESPN and its talent pool has the opportunity to engage with fans while attending on the road events such as College GameDay and SportsCenter on the Road. The current setback with the ESPN Mobile App is attempting to engage fans in the same manner as they would on the road. The ESPN+ Data Tracker would have to find a way to allow fans to engage, which is responding to athletes’ social media posts without disrupting the social media sites attached to the app. The Data Tracker app would be for viewing and reading purposes only as to keep track of the teams and players’ social media activities, while also watching live sports or highlights on the app. Another obstacle is social media services that are branded around a single type of content are more likely to survive, but may fail to garner as many active group members a s FINAL PROJECT SUBMISSION 16 their counterparts. With ESPN+ Data Tracker catering to only sport specific content it may not garner as much attention as other OTT streaming services. (Mintel Academic, 2018). Increased Credit Risk & Substantial Debt ESPN’s parent company the Walt Disney Company has a substantial amount of debt that may affect its ability to borrow and repay money. At the end of the 2016 Fiscal Year, Disney recorded a 16.4% increase in debt to $20.2 billion. (Business Insights: Global, 2017). The decrease in income can affect the operations of the company. The company’s accounts receivables increased by 11.4% to $8.3 billion in 2016, from $7.4 billion in 2015, which indicated an increase in sales. (Business Insights: Global, 2017). ESPN’s financial planning is not very efficient, which is mainly due in part to its parent company. The current asset ratio and liquid asset ratios suggest that the company can use the cash a bit more efficiently than how it is currently being used. (Fern Fort University, 2018). Social Media Pushback Social media sites generate a ton of revenue through ad sales, which have increased from $2.9 billion to $22.3 billion from 2012-17. This is driven by the growth in its audience size. Sales are expected to double to $45 billion by 2022, with brand marketers increasingly viewing these ad sales as important to social media owned content. (Mintel Academic, 2018). The app is generating content from other social media sites to include Twitter, Facebook, and Instagram, which can cause a conflict with those sites, especially if it is affecting revenue through ad sales. There will have to be licensing agreements established in order to give the company permission to allow their content to appear on a competitor’s site. Responsiveness FINAL PROJECT SUBMISSION 17 Though ESPN has a strong cash flow, the company needs to invest in more technology. The investment in technologies is not on par with the company’s vision. With the rapid innovation, involving advances in technologies, ESPN and its parent company The Walt Disney Company are more reactive rather than proactive and aggressive in their approach. (Fern Fort University, 2018) Even with the emergence of several over OTTs within the past few years, and cable customers cutting the cord, it still took ESPN losing millions of cable subscribers to begin thinking about creating their own streaming service. Rapid innovation involving advanced technologies is limited to ESPN’s operations. Therefore, ESPN+ Data Tracker may take some time to come into fruition. Opportunities Positive Outlook on Media and Entertainment Industry According to the International Trade Administration and the US Department of Commerce, the US media and entertainment (M&E) industry is the largest M&E market across the world and third largest global industry. The market is estimated to reach $771 billion by 2019, compared to $632 billion profits in 2015. (Gale Business Insights: Global, 2017). ESPN’s parent company Walt Disney has the opportunity to generate high revenue due to the growing entertainment media industry. The company already has a significant market presence in the media and entertainment industry. (Gale Business Insights: Global, 2017). There are billions of sports fans worldwide. ESPN’s brand is both widely popular and deeply embedded in the daily lives of sports fans. ESPN’s total average audience rose to as many as 208 million Americans in a month in 2017. ESPN content has reached most Americans at an FINAL PROJECT SUBMISSION 18 estimated 224.8 million people in the U.S. across TV and digital platforms in 2017, representing 71% of the U.S. persons 13+. (comScore Xmedia, 2017). ESPN’s digital platform is the world’s leading sports digital platform, averaging 117 million users a month, accounting for 17% of all sports digital usage. (ESPN Media Zone, 2017). Moreover, Disney has been aggressive in making ESPN an anchor tenant of emerging digital MVPD platforms, with carriers such as Sling TV, DirecTV Now, PlayStation Vue, YouTube TV, and an upcoming Hulu service. (Littleton, C. Variety, 2017). ESPN+ is currently the number one sports app in the U.S. and its release was under one year ago. It is now available on PlayStation 4 and Xbox One. (Ota, K. 2018). Direct-To-Consumer Changing the Viewing Landscape With the rise of mobile, social and cloud technologies, comes the rise of consumer expectations for the products and services. There is a demand for a seamless experience and a competitive advantage, which attracts and retains those consumers. (Hopewood, C. 2018). Disney CEO Bob Iger stated “The acquisition and launch of the direct-to-consumer service marks an entirely new growth strategy for the Company, one that takes advantage of the incredible opportunity that changing technology provides us to leverage the strength of our great brands.” (Lafayette, J. 2017). With the vast amount of cable subscribers cord cutting, or unbundling cable TV packages, it is predicted that all major TV networks will produce OTT-powered direct-toconsumer services by 2022. (Baumgartner, J. 2018). With major media companies reacting to the changes in TV viewing habits, it is forecasted that direct-to-consumer subscriptions will reach 50 million by 2022. (Baumgartner, J. 2018). New Customers from Online Channels FINAL PROJECT SUBMISSION 19 Over the past few years, ESPN has taken steps to invest in the online platform, which opened new sales channels for the company. ESPN is already taking advantage of leveraging this opportunity by gaining an understanding of what the customer wants using data analytics. (Fern Fort University, 2017). This is especially important when launching ESPN Data Tracker. ESPN can use data and analytics to gain an understanding of specific target demographics, and cater to their needs. Threats With the advent of technology and the rise of online platforms, it has become tough for ESPN to sustain in the market where a consumer can watch anything live or at any suitable time at their convenience. (Bhasin, H. 2018). The era of instantaneous and readily available news and sports highlights have taken a toll on ESPN’s traditional role as the Worldwide Leader in Sports. According to Disney CEO Bob Iger, the challenge is adjusting to delivery systems accordingly. He also acknowledged that the growth in the number of over-the-top media subscribers has not made up for the loss the company has seen in expanded basic cable. (Littleton, C. 2017). Over the next five years, the online streaming industry will continue to dominate by large, integrated players, and by small independent publishers. As major players become more dominant, it will be easier for them to maintain their competitive edge because of their reputation and brand. (IBIS World, 2017). Consumer trends The demand for live sports television is still at an all-time high. The way consumers choose to view these programs is what has changed over time. According to a Mintel marketing report regarding sports fans, 85% of US adults follow at least one sport, and an avid sports fan will never miss a game/event for their sport team. Given FINAL PROJECT SUBMISSION 20 the amount of options and improvements to give fans wider access to games/events on various streaming services and apps, fans still prefer to watch at home on TV in real-time. Due to these findings, ESPN continues to pour money into buying the rights to various leagues to include the NFL, which is still America’s sport of choice. The company pays $1.9 billion a year for its Monday Night Football package, and the NBA, which they are paying $1.4 billion a year. (Jackson, E. 2017). Because of the decline in overall television viewership, ESPN has gravitated toward generating ad sales on platforms where the audience is now viewing its content. This includes social media platforms such as Snapchat, Twitter and Facebook. Revenue from digital and mobile advertising continues to grow at the expense of traditional print and broadcast advertising. A Mintel social media report states that in 2017, 76% of iGens, (the first generation to spend their entire adolescence in the age of the smartphone), use social platforms to watch videos and SnapChat is the platform of choice. Snapchat has made a push to create more TV-style videos and has secured deals with 13 media partners. As an example of the power of social media, 70% of SnapChat viewers that watch ESPN’s flagship show SportsCenter on Snapchat does not watch the show on linear television. Social media is not poised to carry the singular weight held by broadcast alone, and about a fifth of all social media users see its service as their primary source of entertainment or news. 22% of adults ages 18+ use social media as their main source of entertainment, while twenty percent use social media as their main source of news. (Mintel Academic, 2018). This puts ESPN+ Data Tracker in the perfect position to cater to the sports fan demographic who is engaged in social media, but who also want sports entertainment and FINAL PROJECT SUBMISSION 21 news, provided through the ESPN App. The Data Tracker turns ESPN+ into the one stop shop for all sports content. The consumer is not only getting sports news, and watching live sports, they are also getting real time data and reactions through social media platforms. Ethics ESPN revised its social media guidelines after controversies surrounded one former ESPN SportsCenter anchor who made comments on social media regarding the current president and NFL team owners, and suggested a boycott of advertisers for a specific team. This was after the current president criticized the NFL and ESPN regarding NFL players taking the knee during the National Anthem in protest against police brutality. In response to these incidents and the controversies they reflected, ESPN revised their social media guidelines for its employees. In the specific guidelines, it states to think before you tweet, post or otherwise engage on social platforms. At all times an ESPN employee is representing the company, and social sites offer the equivalent of a microphone. As for political and social issues, the guidelines state that the audiences should be confident that political pressures or personal agendas do not influence their original reporting of news. The company should continue to emphasize that they are about sports and not a political organization. (ESPN Front Row, 2017). ESPN’s former president John Skipper said the guidelines, that were first issued in 2011, were created under very different circumstances. When the guidelines were released, it explained how to handle breaking news and interactions with consumers and colleagues on social media, rather than the political context of posts. Political and social issues are at times unavoidable as it relates to sports, and social media, and that has created some challenges for ESPN and forced them to update their social media policy. (Brady, J. 2017). FINAL PROJECT SUBMISSION 22 Data shows that fans tune into ESPN for an escape from the realities of politics and serious world news. Every time ESPN leans into political commentary, they are turning fans away. Therefore staying far away from politics will help the brand. How Factors Affect Branding and Operations A corporate strategy encompasses goal setting to reach long-term and big picture objectives. The primary focus of a corporate strategy is profitability. (Ashe-Edmunds, S. 2018). ESPN’s corporate mission is to serve sports fans wherever sports are watched, listened to, discussed, debated, read about or played. In reference to ESPN+ Data Tracker, ESPN has to create and capture value in a specific product market by focusing on competitive strategies. Management has to understand the product’s competitor analysis; they also have to understand the risks involved with the product development. The company has specific tactics to execute each of these strategies, one of which included buying other businesses such as BAMTECH to create economies of scale and accessing new technology. BAMTECH is a streaming Media Company that ESPN’s parent company The Walt Disney Company purchased as technology subsidiary to merge with ESPN+. It focuses on providing streaming video technology, especially for over-the-top (OTT) content services. The company already has an established organizational structure that breaks down and focuses on each market segment. This will also help to support the product. This structure will aide in overseeing the amount of developers needed to create and maintain the product and determine the overhead costs. ESPN is well established with an omnipresence. Its promotional premise is “The worldwide leader in Sports,” and with its popularity, it serves as a monopoly in the sports FINAL PROJECT SUBMISSION 23 segment. (Bhasin, H. 2017). It already invests huge amounts of money in budget and promotion, which is a tremendous leg up for promotion of the ESPN+ Data Tracker. The role of marketing is to attract the right customers to the company or product through research and promotion. (Ashe-Edmunds, S. 2018). ESPN has a top-notch marketing team whose sole focus is on the marketing mix, the four p’s, product, price, place, and promotion. The corporate and marketing strategies have to intersect in order for the app to be successful. Management executives have to remain in constant communication with the marketing team to ensure the product stays in tune with the company’s corporate mission. While the marketing strategy has to center around communicating a clear-cut value proposition to include having a strong product worth promoting, convenient distribution, and value pricing for its target demographic. (Kokemuller, N. 2017). SECTION V: CORE COMPETENCIES ESPN’s core competencies consist of direct-to-consumer, audience expansion, quality storytelling and programming, innovation, and diversity and inclusion. Audience Expansion In order for ESPN to grow as it is critical, the company has to expand its audience. At the same time, they cannot fix one problem and create another. ESPN has to protect their core, which is their brand meaning who they are and what has made ESPN what they are today. One way in growing the audience is by attracting a younger audience. The company is already doing so with various programming such as The Ocho, Esports, sports betting, and podcasting, with almost 50% of the podcast audience ranging from age 18-34. Another way to grow the younger audience is by giving back. Citizenship and social responsibility really resonate with the younger generation. FINAL PROJECT SUBMISSION 24 Attracting a female audience is also on the top of the list. Young girls are 50% most likely to quit sports than boys. This is a problem because it is bad for business. Attracting a Hispanic audience is also pertinent. 58% of Hispanics in the U.S. are under 34 years old. ESPN is making ESPN Deportes is a priority. ESPN+ Data Tracker has to touch on all of these priorities in order for the add-on to be successful. ESPN’s overall connective tissue on how to grow an audience is showing care and respect to its fans at all times. Innovation ESPN has a long list of being first through innovation; and will continue to deliver against that legacy. This includes the ESPN App and ESPN+. Other ways ESPN is being innovative is working with the NFL on a system entitled NexGen Stats, to come up with a way to evaluate defensive linemen during the games. As it relates to NBA games, the company is using a program called Second Spectrum, which uses interactive applications and augmented video to deliver visually compelling content. On the content and studio side, ESPN continuously comes up with new technology for their shows. On the field, reporters and producers are doing live shots using their phones through TVU apps. Quality Storytelling & Programming ESPN’s goal continues to be to maximize their unparalleled scale with storytelling that stands out and makes a difference. The company is well equipped to go forward embracing these themes. (ESPN Front Row, 2017). ESPN understands that what they do matters on a much larger scale when it deals with quality storytelling. That is why they thrive themselves in having the best investigative reporting FINAL PROJECT SUBMISSION 25 and journalism. Their stories create memories for the fans. Their film strategy is to be bigger, bolder, and better than the competition. Sports equals the great unifier, especially during the divisive times the country is living in today. ESPN has to be cognizant of its storytelling. Diversity and Inclusion ESPN perceives D & I as the pillar that defines the company. In an employee town hall meeting, current ESPN President Jimmy Pitaro stated that the company is doing well on the diversity side, however, the inclusion side needs work. This is in reference to the fact that many of the women within the company who are in leadership positions feel like they are on the team, but are on the bench and not playing the game. The demographics of the population, meaning their respective ages and genders, greatly influence whether or not a certain product may be marketed to them. With 78% of avid sports fans 18+ being female, ESPN caters to the demographic with websites such as espnW. A site whose mission is to serve women as fans and athletes by providing an engaging environment that offers total access to female athletes and the sports they play. (espnW.com). ESPN+ Data Tracker will have to find a way to incorporate that target demographic without them feeling excluded. espnW currently lives across television, films, events, digital and social platforms, so it could be an easy transition for ESPN+ Data Tracker to track the status of female athletes as well as get game scores for various women’s matches. All core competencies factor in as it relates to ESPN+ Data Tracker. This device will not only attract the younger audience who appeals to social media, it will cater to the audience ESPN is hoping to grow to love the brand. All while being able to tell a better story using real time data FINAL PROJECT SUBMISSION 26 and social media updates from the teams and players. Lastly, it is on par with ESPN’s innovation and being first to deliver everything a sports fan wants, while telling the story better than ever. SECTION VI: PRICING Type of Cost Estimated Amount of Cost Production costs $ 8 billion Sunk costs $2 billion Broadcasting $18 billion Production $4 billion Fixed Costs Variable Costs The fixed costs would be the costs that remain the same despite the varying quantity of output (Jeanrenaud & Késenne, 2006). These remain the same in the short run, production costs such as equipping studios, buying equipment, hiring presenters and experts, etc. Sunk costs are another aspect of fixed costs. In the case of ESPN it would involve the infrastructure it has invested in, the studios, the physical furniture, equipment, broadcasting satellites, the deals made to buy broadcasting rights to MLB, NBA, NASCAR, etc. Unless these resources are sold off and the cash recovered, this element of costs will remain fixed. Variable costs change with changes in output, i.e. the number of subscribers or the number of hours during which fresh programming is being broadcast. The channel has to rent the FINAL PROJECT SUBMISSION 27 frequency and pay the cost of transmitting the signals to the cable company, hosting content on the website or playing it on the ESPN+ app. The variable costs also change by the type of program being broadcast, e.g. a pre-filmed and recorded show would costs less than a live broadcast of a major sporting event that requires multiple cameras, commentators, professionals working behind the scenes, etc. There is also an element of opportunity cost in variable costs as the channel foregoes the revenue to be earned from another alternative, if it gives airtime to one sport or game. How much is the target market willing to pay? Modern day sports fans face the challenge of figuring out which when and where to watch their favorite sport and important games. Not every channel provides access to the major games and tournaments for every sport. Fans have to locate the schedule and gain access to the media outlet that will be streaming or airing the game live (Rodriguez, 2018). Streaming services like ESPN+, Turner Sports and DAZN make the solution to this problem very simple. All the viewer needs to do is pay for a monthly subscription and they can stream the game they want to watch on any device; computer browser, television, tablet or smartphone. This is the first feature that makes the service valuable for the target market. Examine competitors’ pricing Channel Name ESPN+ Pricing Reasons Basic - $4.99/month Lacks access to ESPN’s main channels (ESPN and ESPN2), $24.99 per month as an addonly access to additional on for MLB.TV “incremental live FINAL PROJECT SUBMISSION 28 programming”, original TV shows, films, exclusive studio programs, and an on-demand library (Tepper, 2018) Free steaming sports channel called CBS Sports HQ that offers live anchored coverage that draws on breaking news analysis and previews. Monthly - $4.99 CBS Sports Holds the streaming rights to Annual - $49 (12 months) NCAA Basketball March Madness and has several short-term deals for PGA Tour, SEC Football and the NFL. Streaming streaming service with live boxing, mixed $9.99/month DAZN (Da-Zone) martial arts and on-demand programming, subsidiary of UK-based global sports media company Perform Group, is already available in FINAL PROJECT SUBMISSION 29 parts of Europe, Japan, and Canada. It has yet to reach the United States. 2 channels - $28.74/month Sky Sports Mix, Sky Sports 3 channels - $33.97/month Sky Sports Premier League, Sky Sports Main Event, Sky Sports All 7 channels + Sky Sports Football and Sky Sports Main Event channel - for Cricket $36.58/month Rights-holders with the NBA stream thousands of live games that fans can pay to Free a pp to start/NBA stream individually through League Pass $7 Per Game. Turner Sports service or subscribe to a Still figuring out pricing sports league. Other packages programming include UEFA Champions League and NCAA Basketball games. FINAL PROJECT SUBMISSION 30 Another attractive feature for which customers will be willing to pay more for is the ability to watch sports live while getting live social media reactions. Audiences for television content are increasingly splintering across various mediums and digital channels. However, sports broadcasters can still ask for high payments from cable, digital and satellite companies that air and stream sports games. Some channels charge over “$5 million for 30 seconds of ad time in the Super Bowl” and rake in over “$1 billion on TV ads during March Madness” (Rodriguez, 2018). ESPN+ will be aggregating sport content and streaming it live, which is an attractive proposition for the target market. Pricing Strategy Several sports based direct-to-consumer products have emerged however none has the same concept that incorporates real-time social media alerts and game highlights. Current ESPN+ competitors include CBS Sports, Turner Sports, and DAZN. There are similarities and difference between these apps. Games are also available to be watched on a wider range of platforms, namely social media channels. (Mintel Academic, 2017). Currently CBS Sports has a free steaming sports channel called CBS Sports HQ that offers live anchored coverage that draws on breaking news analysis and previews. The company holds the streaming rights to NCAA Basketball March Madness and has several short-term deals for PGA Tour, SEC Football and the NFL. (Lemire, J. 2018). Turner Sports who are rights-holders with the NBA has an app that will stream thousands of live games that fans can pay to stream individually through service or subscribe to a sports league such as NBA League Pass. The app will roll out as a free app to begin then they will figure out pricing packages. Currently for NBA League Pass, the cost is $7 per game to stream. FINAL PROJECT SUBMISSION 31 Other programming will include UEFA Champions League games and NCAA Basketball games. (Rodriguez, A. 2018). DAZN (pronounced da-zone) is a streaming service with live boxing, mixed martial arts and on-demand programming for $9.99 per month. This app, which is a subsidiary of UK-based global sports media company Perform Group, is already available in parts of Europe, Japan, and Canada. It has yet to reach the United States. (Rossolillo, N. 2018). ESPN+ has already differentiated itself from the competition first with its pricing and access to a vast amount and variety of sports programming content. With the latest data tracking add-on feature, the price point will remain the same. With the ESPN+ pricing the service includes live MLB, NHL, NBA, and MLS games, as well as college sports, PGA golf, Top Rank Boxing, and Grand Slam Tennis matches. If the user is already subscribed to another premium sports streaming service such as MLB.tv or NHL.tv, they can access out of market games through the app. (Wouk, K. 2018). The data tracker app will be available on several devices. Currently several social media sites send alerts and updates. One particular brand that is a direct competitor to ESPN+ Data Tracker is a company called The Score. Though the site caters more to the eSports fan, it is the first sports news site to ever be featured in the iTunes store and now it is within striking distance to ESPN in terms of mobile traffic. It is a popular mobile destination for live scores and breaking news from across the world. (Olenski, S. 2017). ESPN+ Data Tracker will allow users curious about the service to check out a 7-day free trial of the app before purchasing. The direct-to-consumer app is $4.99 per month or $50 per year. The Data Tracker add-on will be incorporated with the app fee. What pricing strategy is most appropriate and why? FINAL PROJECT SUBMISSION 32 Economy pricing is used in situations where corporations want to minimize overheads and then use the ability to have lower prices to attract customers towards them and away from competitors. Using this strategy is not a very good idea, as lower pricing also has the unintended connotation of being a lower quality or lower value product. Sports fans are an enthusiastic market who are dedicated to the sports and teams they support. They will not mind paying a higher price as long as they are guaranteed access to the content they desire. Economy pricing will thus only harm the profitability of the add-on and not have a big impact on the number of new customers signing up for the service. Price skimming is best suited for products or services that are unique in the market (temporarily) due to the lack of competition. The company uses its position as the only one offering the service to reap high profits before it is forced to inevitably lower it when other firms enter the market. This strategy is not useful or applicable in this scenario because there are already other such offerings in the market. DAZN and The Score are just two examples of competing services already available in the market. Premium pricing is used for luxury goods and services. Unless ESPN+ Data Tracker can seriously differentiate itself and offer a very innovative feature that completely changes the viewing experience, this option is not applicable either. Penetration pricing involves pricing the product or service very low in order to get customers hooked on it before slowly raising the prices later on once they are used to utilizing it and desire to have continued use of it. Penetration pricing seems to be a viable option for ESPN+ Data Tracker as the service has many features that the target market wants and because it meets their needs perfectly. Once the customer is used to being able to watch and track their favorite sports whenever and wherever they want as well as access to live social media content while FINAL PROJECT SUBMISSION 33 watching, they will be willing to pay a slightly higher price for the service as in their minds it is considered worth it, even at the higher price point. (Rodriguez, 2018). SECTION VII: REFINEMENT Evaluate the Success One approach to evaluating the success of the app is during the acquisition phase. The ESPN brand is a very popular one, which gives the app a leg up against competitors whose brand may not be as recognizable. Acquiring new quality customers will give the app an added push. The longer a customer is familiar with the brand, the less they seem to talk about said brand. However, new customers have a key attribute that every marketer should leverage, which is word of mouth. (Lindsay, M. 2012). A profitability analysis can help establish the costs that will be associated with determining the profitability of various market segments, customer accounts, and distribution channels. A direct or full costing analysis can determine the profitability of the app. With full costing, the analyst assigns both direct, or variable and indirect costs to the app. (Mullins, J & Walker, O. 2011). The indirect costs involve fixed costs that cannot be linked directly to the app, such as productions costs, hiring app developers, and negotiating the deals made to buy the broadcasting rights to various leagues. Benchmarking, which is reviewing the sales in relationship to its competitors will help measure the performance of ESPN+ Data Tracker against similar apps. (Mullins, J & Walker, O. 2011). A sales analysis will need to be conducted to break down the aggregate sales data into categories such as products, end-user customers, order size, channel intermediaries, and sales territories. This analysis will help management have a better idea of formulating their objectives FINAL PROJECT SUBMISSION 34 and marketing strategies, as well as non-marketing strategies to include production and facilities planning. (Mullins, J & Walker, O. 2011). As it relates to the app’s features, measuring the key performance indicators or (KPIs) helps to determine which performance metrics and success metrics are considered the most valuable or important on the app. (Evus Tech, 2017). Some KPIs include tracking the amount of times the app is downloaded. This helps to understand its popularity among users. Though the customer has downloaded the app, it does not ensure that the process was completed. Therefore, tracking actual installations on various devices should also be a factor. (Evus Tech, 2017). Keeping track of how long it takes the customer to subscribe once the installation is complete will help understand the user’s activities on the app. The app will have upgrades from time to time, and tracking the number of upgrades and their timing indicates the level of engagement users have with the app and the depth of their financial commitment. Another KPI to track is the user growth rate. This helps in determining whether it spiked due to a particular event, or after the app has been marketed in various market segments. (Evus Tech, 2017). Other KPIs include tracking if the customer has personalized the app to their liking, and how much time they spend on the app. Another key factor to track is the amount of times the app was uninstalled. A customer can uninstall the app for a variety of reasons without leaving feedback. It would help to determine if the uninstalls coincide with an update or changes to the app. (Evus Tech, 2017). It is important to know how much money is generated from the app per user via in-app purchases, ad impressions, subscriptions, paid downloads or other forms of monetization. This helps determine the return on investment versus how much is spent on marketing, and any other expenses that incur. (Evus Tech, 2017). FINAL PROJECT SUBMISSION 35 As the app’s services begin to become similar to others in an already competitive marketplace, the success determinant is even greater when attempting to satisfy the customer. Measures that relate to customer preferences are essential as an early warning of looming problems and opportunities. (Mullins, J & Walker, O. 2011). When evaluating the success of ESPN+ Data Tracker what should also be taken into consideration is tracking the geographic location of the customer. This will have a direct impact on ad revenue and the various locations to target when marketing the app. Understanding the demographics of the consumer helps determine the customer base as it compares to the target audience. It is also an excellent way to gauge the effectiveness of marketing efforts for the app. Tracking the behavioral metrics of the customer helps to develop app features and marketing plans that tap into those behaviors. This can include other apps and social media sites they may have downloaded on their mobile devices and other devices where they stream content. (Evus Tech, 2017). Grouping the geographic location, demographics, and behavioral metrics is extremely valuable and helps to gain knowledge about the current and potential customer base. Feedback Loops When the performance standards for ESPN+ Data Tracker have been established, the next step is to develop systems and processes for timely feedback on the app’s actual performance. (Mullins, J & Walker, O. 2011). This includes gathering customer feedback, learning and analyzing the data, lastly applying conclusions for the app. Feedback loops can bring a tremendous amount of benefits for the app, as it is the foundation of a customer engagement process. The customer’s feedback will benefit by staying up to date on the needs and complaints the customer may have regarding the app. It will also FINAL PROJECT SUBMISSION 36 uncover potential opportunities for app improvements. The company may have an idea for the app that they believe is great, however, the user may think otherwise. (Kierczak, L. 2018). Feedback data can be obtained through a variety of sources to include syndicated marketing information services such as Nielson, and Environics Research Group, a service that combines consumer purchase behavior and media usage with proprietary target market segmentation. These services help to gather general and in some cases specific information on a regular bases. These findings help to determine trends in customer behavior and in the marketplace. (Devault, G. 2018). Customer satisfaction is key for evaluating the success of ESPN+ Data Tracker. Conducting focus groups and internal and external surveys is a way to ascertain how effective the product is. A focus group is a fast and interactive way to test marketing strategies for the app. It is important to get as many opinions regarding the app as possible to gain perspective on product specifications. It can also be used to research the best price point for the app, and other valuable information. In-house marketing research projects can be more costly than using outside syndicated services; however, oftentimes the problems identified in a focus group can help prevent costly production changes, and ineffective marketing strategies. (MacDonald, A. 2018). Customer surveys is another efficient way to gather feedback. By using surveys routinely, it gains important information about the app’s services and enhancements. The survey will determine what the market prefers or identifies as important. It will also track the app’s performance. The survey can ask for customer feedback regarding their experience on the app, and their experience with the company. Various ways to conduct the survey include robo-calling, FINAL PROJECT SUBMISSION 37 and in app surveys such as Survey Monkey, and PollDaddy. This will help to keep track of how well ESPN is doing with the marketing the product and its features. (Jantsh, J. 2012). Another way to heighten the relationship with customers is to provide a demographic survey that asks questions about their preferences, and their lives. This data can be used for product service and development, and may even extend in developing key strategic partnerships. (Jantsh, J. 2012). In the initial stages of the app, it is important to gather regular feedback to continue to improve on the product. On average, management uses information to determine what the company’s performance should have been under the actual market conditions that existed when the plan was initially executed. (Mullins, J & Walker, O. 2011). The information gathered from the surveys and syndicated marketing information will determine the changes such as a change in the demand for the product, a change in price by a competitor, and its impact on market share. The results will need to be discussed at a line-item level in order to ensure the product will be at the standard that has been set. Mapping the measurement of the app’s success is beneficial to identify the touchpoints and messages that drive the best conversion rate. (Lindsay, M. 2012). Tracking and monitoring the information includes tracking the number of times the app is used on a monthly basis, the number of times the app was recommended on social media platforms and on what context. Brand awareness is also a key component to include the number of times the ESPN app brand appeared in search engines. This will determine whether the plan implementation for the app is on schedule. Weekly meetings will need to be scheduled with the app programmers and developers, sales and marketing, and management to discuss the strategic plan and its progression, and any FINAL PROJECT SUBMISSION 38 corrective actions that need to happen. Regular daily updates to the strategic developments can be discussed by email or phone. There are also ways to conduct face to face conference calls using a service called Blue Jeans, or FaceTime and Skype. Setting time to reassess the strategy of the app is pertinent. This can happen quarterly or if there was a significant drop in sales or customer uninstallations, that would require an urgent reassessment meeting. Other Factors A contingency plan needs to be in place to identify critical assumptions, and rank the importance of each assumption. (Mullins, J & Walker, O. 2011). Several factors might affect the implementation and timely execution of ESPN+ Data Tracker. These factors can be financial, operational, or legal. The financial risk could include an unforeseen increase in cost, or a loss of expected sales of the app. The operating risk could include the application developers finding a glitch or error with the app that delays its launch, or takes the app offline for a period. That also taps into the financial risk because with the app out of commission, the company is losing customer money. The legal risks include product liability and intellectual property issues. (Markgraf, B. 2018). The app developers have to protect user data, and know how to avoid security issues, which can be a time consuming process. No app is safe from viruses and malware, and if there is a hiccup or security breach in the app, this can delay the development process. (Warren, J. 2018). Because the app will need to interconnect to other services such as Twitter and Instagram the need to integrate with third party adaptive programmable interface (APIs) come into play. This will require the developers to understand the intricacies for those services, which can take some time. (Warren, J. 2018). FINAL PROJECT SUBMISSION 39 From an app developer’s standpoint the more features the app has the more effort and time it will take to design, develop and test the app. Communication between the app developers and management needs to be clear and concise, which can be difficult on some levels because programmers use different verbiage to explain the changes and new developments. Therefore, understanding the basic criteria and the business objectives of the app is key. Keeping an eye on the competitor will remain a factor especially when measuring the performance against similar apps. The app will continuously be in a state of improvement, which prevents the ESPN brand from losing momentum; therefore, its launch is never ending. CONCLUSION Reaching fans requires brands to be creative with their media choices and messaging content, so it does not frustrate or take away from their viewing experience. Technology will continue to be a huge factor in the way sports is viewed and the role it plays in the fan’s ability to stay connected to their favorite teams. As live sports continues to take on a notable role in the media ecosystem, ESPN has to stay relevant and gauge fans through consumer trends that appeal to sports fanatics. ESPN+ Data Tracker takes it one-step further, which is ideal for the avid sports fan who needs to know their team or player’s every move. The greatest strength with ESPN+ Data Tracker is its ability to get immediate information about the team or player by compiling not only all the team’s social media sites, in addition, it will compile any specific news storyline or updates on the player or team in real time. The user does not have to scroll through various social media and sports websites to get updates. ESPN+ Data Tracker is great for users with a short attention span who are looking for quick updates, without reading the entire story, or while watching live sports on the ESPN+ app. FINAL PROJECT SUBMISSION 40 The launch of the ESPN+ Data Tracker app and increasing its odds of success will come from bringing together a comprehensive strategic marketing plan. Effective control systems need to be in place to include marketing performance measurements to ensure a timely execution of the planned results. Key performance indicators or (KPIs) measures the performance of the app and is an essential factor when factoring in the app’s expectations. Identifying the top features used by the core audience is beneficial. Also considered are value drivers that keep people coming back to the product. Ideally, the plan would be for the customer to be using all of the top features. Those features are measured against those of the competitor. Though there will be a lot of trial and error, the mix of the right criterion will help achieve the business objectives for the app. It is useful however to take a step back from the daily results and take a longer look at the marketing performance. (Mullins, J & Walker, O. 2011). ESPN has a significant head start in the streaming world over its direct key competitors. The opportunity is for ESPN+ Data Tracker to be the icing on the cake for the ESPN+ app that could potentially be a one-stop shop for all live sports programming and original content is extremely viable. FINAL PROJECT SUBMISSION 41 REFERENCES Abhishek, S. (2015) Product Success. How do you measure it? https://www.linkedin.com/pulse/product-success-how-do-you-measure-abhishek-shukla Adler, K. (2018) ESPN + to Launch April 12, Bringing Sports Fans More Live Sports, Exclusive Originals and On-Demand Library – All for $4.99 Per Month. https://espnmediazone.com/us/press-releases/2018/04/espn-to-launch-april-12-bringingsports-fans-more-live-sports-exclusive-originals-and-on-demand-library-all-for-4-99-permonth/ Ashe-Edmunds, S. (2018) Corporate Strategy vs. Marketing Strategy https://smallbusiness.chron.com/corporate-strategy-vs-marketing-strategy-63753.html Bain & Company (2018) Core Competencies Retrieved from: https://www.bain.com/insights/management-tools-core-competencies Bashford, S. (2017). What you need to know about sports marketing in 2017 and beyond. Retrieved from: https://www.campaignlive.co.uk/article/need-know-sports-marketing2017-beyond/1424873 Bhasin, H. (2017) Marketing Mix of ESPN – ESPN Marketing Mix https://www.marketing91.com/marketing-mix-espn/ Bhasin, H. (2018) Marketing 91; SWOT Analysis of ESPN https://www.marketing91.com/swot-analysis-espn/ Brady, J. (2017) ESPN’s New Social Guidelines Show Right Instincts http://www.espn.com/blog/ombudsman/post/_/id/896/espns-new-social-guidelines-showright-instincts FINAL PROJECT SUBMISSION 42 Bucholtz, A.(2018) Disney CEO Bob Iger says ESPN Plus will launch late March/early April, app will eventually be where most people “experience ESPN” https://awfulannouncing.com/espn/bob-iger-espn-plus-app-launch.html Business Insights Global; (2018) The Walt Disney Company – Financial and Strategic Analysis Review Retrieved from: http://bi.galegroup.com.ezproxy.snhu.edu/global/company/302512?u=nhc_main Devault, G. (2018) Learn About Syndicated Market Research https://www.thebalancesmb.com/what-is-syndicated-market-research-2296891 Donoghue, M., Druley, S., King, R., Kosner, J. (2017) ESPN’s Content Evolution Strategy https://www.espnfrontrow.com/2017/04/espns-content-evolution-strategy/ ESPN Brand Tracker. (2017) ESPN Media Zone. (2015) ESPN, Inc. Fact Sheet https://espnmediazone.com/us/espn-inc-fact-sheet/ Evus Tech (2017) 50 Ways to Measure your Mobile App’s Success https://android.jlelse.eu/50-ways-to-measure-your-mobile-apps-success-950087b529e0 Fern Fort University (2017) ESPN SWOT Analysis / Matrix http://fernfortuniversity.com/term-papers/swot/1433/1130-espn.php Gaustad, T. (2000). The economics of sports programming. Nordicom Review, 21(2), 101-113. Hopewood, C. (2018) Why Direct-To-Consumer is Becoming an Important Retail Channel https://www.visioncritical.com/direct-to-consumer-marketing-channel/ IBIS World (2018) Internet Publishing and Broadcasting in the US Retrieved from: FINAL PROJECT SUBMISSION 43 http://clients1.ibisworld.com.ezproxy.snhu.edu/reports/us/industry/industryoutlook.aspx? entid=1974#IO Investopedia (2018) Core Competencies Retrieved from: https://www.investopedia.com/terms/c/core_competencies.asp Jackson, D. (2018) Everything We Know About Disney’s Secret Streaming Service https://www.thrillist.com/entertainment/nation/disney-streaming-service-netflix-comingsoon# Jantsh, J. (2012) 5 Ways Surveys Can Help Your Small Business https://www.americanexpress.com/en-us/business/trends-and-insights/articles/5-wayssurveys-can-help-your-small-business/ Jeanrenaud, C., & Késenne, S. (Eds.). (2006). The economics of sport and the media. Edward Elgar Publishing. Johnsen, H. W. (2003). A Cost Perspective on Televised Sport: The Optimal Economic Utilization of Sport’s Media Rights. Retrieved from: http://web.bi.no/forskning/papers.nsf/0/3fc1e7c49fb7cba7c1256d59002f8d0b/$FILE/dp2 003-02.pdf Karr, D. (2017) The Huge Statistics of Sports on Social Media https://martech.zone/social-media-sports-industry-statistics/ Kierczak, L. (2018) Customer Feedback Loop – How to Create and Use It https://survicate.com/customer-feedback/loop/ Kokemuller, N. (2017) Corporate Strategy & Marketing Strategy FINAL PROJECT SUBMISSION 44 https://bizfluent.com/info-8139467-corporate-strategy-marketing-strategy.html Lemire, J. (2018) CBS Sports HQ Launches As Free OTT Streaming Service https://www.sporttechie.com/cbs-sports-hq-launches-free-ott-streaming-service/ Lindsay, M. (2012) 8 Ways to Ensure Your New Product Launch Succeeds https://www.fastcompany.com/1829483/8-ways-ensure-your-new-product-launchsucceeds Littleton, C. (2017) ESPN Earnings Weakness Puts Disney on the Defensive https://variety.com/2017/tv/news/espn-disney-earnings-subscriber-losses-1202421577/ MacDonald, A. (2018) How Focus Groups Can Help Your Business https://www.legalzoom.com/articles/how-focus-groups-can-help-your-business Markgraf, B. (2018) Marketing Contingency Planning https://work.chron.com/marketing-contingency-planning-6002.html MarketLine Advantage (2018) The Walt Disney Company Retrieved from: http://advantage.marketline.com.ezproxy.snhu.edu/browse?q=The+Walt+Disney+Compa ny McCloskey, H/ (2015) How to Measure Product Launch Success https://community.uservoice.com/blog/measure-product-launch-success/ Mintel Academic; (2017) Digital Trends – US. Retrieved from: http://academic.mintel.com.ezproxy.snhu.edu/display/860297/ Mintel Academic; (2017) Marketing to Sports Fans – US. September, 2017 Retrieved from: FINAL PROJECT SUBMISSION 45 http://academic.mintel.com.ezproxy.snhu.edu/display/851811/ Retrieved from: http://academic.mintel.com.ezproxy.snhu.edu/display/793939/ Mullins, J & Walker, O. (2011) Marketing Management A Strategic Decision-Making Approach Retrieved from: https://mbsdirect.vitalsource.com/#/books/1260364216/cfi/6/22!/4/190@0:47.4 Retrieved from: https://mbsdirect.vitalsource.com/#/books/1260364216/cfi/6/64!/4/80/2@0:0 Nagle, D. (2017) ESPN, Inc.: in Review – Leadership through Innovation https://espnmediazone.com/us/press-releases/2017/12/espn-inc-2017-review-leadershipinnovation/ Olenski, S. (2017) The Brand That’s Giving ESPN Its Run For The Mobile Money https://www.forbes.com/sites/steveolenski/2017/06/14/the-brand-thats-giving-espn-itsrun-for-the-mobile-money/#5ed288b41af9 Ota, K. (2018) ESPN+ Now Available on Playstation 4 and Xbox One https://espnmediazone.com/us/press-releases/2018/10/espn-now-available-on-playstation4-and-xbox-one/ Rodriguez, A. (2018) The streaming war over live sports has officially begun https://qz.com/1238370/turner-espn-and-cbs-are-betting-on-the-future-of-live-sports/ Rossolillo, N. (2018) ESPN Proves Sports Fans Are Alive and Well, but They’ve Changed https://www.fool.com/investing/2018/09/23/espn-proves-sports-fans-are-alive-and-wellbut-the.aspx FINAL PROJECT SUBMISSION 46 Rossolillo, N. (2018) Is This New Sports Streaming Service a Threat to Disney’s ESPN? https://www.fool.com/investing/2018/07/27/is-this-new-sports-streaming-service-athreat-to-d.aspx Sallas, W. (2017) Net Neutrality Repeal Will Affect Your Sports, Too https://herosports.com/college-footbal/net-neutrality-repeal-affect-sports-streaming-cncn Simpson, J. (2017) How The Perception Of A Good Brand Helps Your Company’s Effectiveness https://www.forbes.com/sites/forbesagencycouncil/2017/05/05/how-the-perception-ofa-good-brand-helps-your-companys-effectiveness/#28b8f1d67acd Skipper, J. (2017) ESPN’s Social Media Guidelines https://www.espnfrontrow.com/2017/11/espns-social-media-guidelines/ Statista. (2017) Sports on U.S. TV – Statistics & Facts Retrieved from: https://www.statista.com/topics/2113/sports-on-tv/ Statt, N. (2018) Disney sets price for new ESPN Plus streaming service at $4.99 per month https://www.theverge.com/2018/2/6/16981894/disney-espn-plus-streaming-servicelaunch-price-release-date Tepper, F. (2018). ESPN’s streaming service will cost $4.99 and launch this spring. Retrieved from: https://techcrunch.com/2018/02/07/espns-streaming-service-will-cost-4-99-and-launchthis-spring/ Warren, J. (2018) Survey: Key Factors Affecting Mobile App Development Time https://www.goodfirms.co/resources/mobile-app-development-time-factors FINAL PROJECT SUBMISSION Willens, M. (2018) How ESPN is Marketing ESPN+ https://digiday.com/media/espn-marketing-espn/ Wouk, K. (2018) ESPN +: Everything you need to know https://www.digitaltrends.com/movies/what-is-espn-plus/ YML (2018) How Do You Measure Product Success? https://ymedialabs.com/measure-product-success 47 Running Head: LEADERSHIP ASSESSMENT Leadership Assessment 9-1 Final Project – Part II Paushawna DeCordova-Boyd Leading in an Organization MBA-550-X4423 Dr. Dean E. Craft July 1, 2018 1 LEADERSHIP ASSESSMENT 2 Contents Introduction ..................................................................................................................................... 4 TEAMS ........................................................................................................................................... 5 Organization ................................................................................................................................ 5 Leadership and Management Style ............................................................................................. 6 Executive Team .......................................................................................................................... 8 Best Practices ............................................................................................................................ 10 ORGANIZATIONAL VISION .................................................................................................... 12 Strategic Plan ............................................................................................................................ 12 Internal Strengths ...................................................................................................................... 14 Internal Weaknesses.................................................................................................................. 14 External Opportunities .............................................................................................................. 15 External Threats ........................................................................................................................ 16 Vision ........................................................................................................................................ 16 Strategic Planning Methods ...................................................................................................... 18 ORGANIZATIONAL CULTURE ............................................................................................... 19 Power ........................................................................................................................................ 19 Structure .................................................................................................................................... 21 Effect Change............................................................................................................................ 23 PROBLEM SOLVING ................................................................................................................. 25 LEADERSHIP ASSESSMENT 3 Self-Assessment ........................................................................................................................ 25 Jeff Bezos Problem Solving ...................................................................................................... 26 Tools ......................................................................................................................................... 27 CONFLICT MANAGEMENT ..................................................................................................... 27 Self-Assessment ........................................................................................................................ 27 Jeff Bezos Conflict Management .............................................................................................. 29 Techniques ................................................................................................................................ 30 CONCLUSION ............................................................................................................................. 32 REFERENCES ............................................................................................................................. 34 LEADERSHIP ASSESSMENT 4 Introduction Great companies start with great purpose formulated by the founder. (Dubrin, 13-1b, 2016). Amazon founder and CEO Jeff Bezos created what some would say is currently the world’s most innovative company and is on the steady path to continue to take over the ecommerce world. “A brand for a company is like a reputation for a person. You earn reputation by trying to do hard things well.” (Amazon CEO, Jeff Bezos). This quote from Jeff Bezos summarizes the reason why Amazon is a multi-billion dollar entity. Philanthropist, Investor, Entrepreneur and CEO of Amazon Jeff Bezos is the richest man in the world according to Forbes. He is also the first person to top $100 billion as a number one on the Forbes list of the World’s Billionaires. Through Amazon.com, small and medium-sized business owners are able to reach millions of customers. The company creates more than 125 jobs in the US daily from fulfillment centers to corporate offices. Amazon employees are able to make bold bets through innovation and are not afraid to take risks and failing during the risk taking process. The company continues to look for unique ways to make positive and lasting impacts in their communities. This would not be able to happen without Bezos’ vision and business strategies for the company. This paper will touch on Jeff Bezos’ leadership and organizational structure at Amazon. It will focus on how he built his executive team and best practices that aided in recruiting and retaining top talent. We will delve into Amazon’s organizational vision, culture and strategic planning methods utilized to align with the company’s vision. Lastly we will focus on how best practices used by Bezos while addressing problem solving and conflict management when the issue arose. LEADERSHIP ASSESSMENT 5 TEAMS Defined by the needs of the company and based on each job’s responsibilities, Amazon, Inc. the world’s largest Internet retailer operates under a functional organizational structure. This particular structure enables managerial control and gives Amazon the support needed to launch new products in the e-commerce market and continue to be innovative. (Meyer, P. 2017). Amazon’s global function-based groups have a dedicated group or team, along with a senior manager. This structure is necessary to establish successful e-commerce operations throughout the company. (Meyer, P. 2017). Amazon’s global hierarchy objective is to facilitate managerial control of the entire organization. They do this by placing senior managers throughout the organization that will affect all relevant offices of the company worldwide. (Meyer, P. 2017). Amazon’s geographic division has group leaders based in the various geographic regions that can address issues or concerns relevant to each regional market. (Meyer, P. 2017). Regardless of the global hierarchy and geographic division, the mission at Amazon remains the same, to be the best e-commerce company in the world. The company’s vision emphasizes on its global reach, customer prioritization, and the widest selection of products. Organization Amazon’s leadership principles are something that is used every day, whether discussing ideas for new projects, deciding the best solution for customers’ problems, or interviewing potential candidates. With Amazon’s organizational structure, each major business function has a dedicated group or team, along with a senior manager. This leader/ownership principle at Amazon emphasizes that leaders are owners. They think long term and do not sacrifice long-term value for short-term results. They also act on behalf of the entire company, beyond just their own LEADERSHIP ASSESSMENT 6 team. This helps to build a solid team who in turn will be self-less and never say, “that’s not my job.” (Sited from the Amazon Blog). Even though Amazon has a functional organizational structure, Amazon CEO Jeff Bezos created a unique structure with diverse individuals within that function which allows employees the ability to be creative, innovative, open to new ideas and experiment on those ideas through teamwork. Breaking down Amazon’s principles gives an overview of how Bezos builds and structures a productive organization and culture. Organizational structure is critical when creating a company whose focus is on innovation. Open book management, is when every employee is trained, empowered, and motivated to understand and pursue the company’s business goals. By using this method, employees become business partners and perceive themselves to be members of the same team. (Dubrin, 9-2b. 2016). Amazon CEO Jeff Bezos uses open-book management as a part of his leadership principles. These principles are a set of guidelines that all employees whom he refers to as “Amazonians” adhere to when discussing ideas for new projects to interviewing potential job candidates. They are: Customer obsession, Ownership, Invent and simplify, Are right, a lot, Hire and develop the best, Insist on the highest standards, Think big, Bias for action, Frugality, Dive deep, Have backbone, Disagree and commit, and Deliver results. These principles are valued whether discussing ideas for new projects, deciding on the best solution for customer problems, or interviewing potential job candidates. (Amazon Blog, 2018). Leadership and Management Style Jeff Bezos’ management style is unique in that he takes a completely different approach to management than he does with leadership. He has a contrarian management technique that LEADERSHIP ASSESSMENT 7 some would call old school. (I Done This Support, 2017). His management method teaches selfdiscipline, and sets high standards for his employees. According to Daniel Goleman, most effective leaders have a high degree of emotional intelligence, and without it a person can have excellent training, superior analytical skills, and innovative suggestions, however, will not make a great leader. (Dubrin 2-1b 2016). In his 2017 letter to shareholders, Bezos explains how they do not do PowerPoint or any other slide-oriented presentations at Amazon. They instead write structured six-page narrative memos. (Amazon Letter to Shareholders, 2017). By imposing this exercise on the team, it allows them to recognize high standards and teach realistic expectations on a scope. Bezos also expresses how writing a six-page memo is teamwork, because someone on the team has to have the skill to write the memo. (Amazon Letter to Shareholders, 2017). This type of management style has strategic acuity. Bezos thinks conceptually and has farsightedness. (Dubrin 2-3e 2016). High standards appears to be the theme as it relates to Jeff Bezos and leadership style at Amazon. He began his 2017 letter to shareholders with the question; how do you stay ahead of ever-rising customer expectations? His answer was there is no single way to do it – it is a combination of many things; but high standards are a big part of it. (Amazon Letter to Shareholders, 2017). Bezos assertiveness as a leader has drawn a lot criticism from past employees and the public. A 2015 New York Times article written about Amazon’s employee experience painted a picture of an environment where employees were pushed beyond their limits, and encouraged to sabotage each other. Bezos wrote a letter defending Amazon’s culture, which stated, “The reason cultures are so stable in time is because people self-select. Someone energized by competitive LEADERSHIP ASSESSMENT 8 zeal may select and be happy in one culture.” He added, we never claim that our approach is the right one – just that it’s ours.” (Maylett, T. 2017). Bezos leadership style does lack emotional intelligence in a sense. In reports from Brad Stone, the author of “The Everything Store: Jeff Bezos and the Age of Amazon, it indicated that Bezos could be a demanding boss, who has not been one to mince his words at his employees. He would bark at employees saying things to the nature of “I’m sorry, did I take my stupid pills today?” and, “Are you lazy or just incompetent?” (Cain, A. 2017). Some may beg to differ as it refers to Bezos. According to several current and former Amazon employees, that trait is one that helped make him the world’s richest man and an effective leader. Brian Kruger, former VP of Global Talent Acquisition at Amazon said Bezos was unlike any other CEO he has ever met. He states, “Jeff is probably one of the smartest, if not THE smartest, CEOs of the Fortune 500. He has a brilliance all his own. And he has very high standards for himself personally, which carry over to his team.” He goes on to say, he expects a lot out of people. Is that being a tyrant? No, not if you want to work hard and grow. If you are lazy, do not get anywhere near Jeff. He focuses on those who deliver.” (Krueger, B (2017). There has been turnover at Amazon, as the company is not right for everybody. However, as a leader, Bezos openly displays his expectations, which shows core self-evaluation as a manager. Therefore, those who have remained retained have the same expectation alignment, which is the level to which employees’ expectations for their experience in the workplace line up with their perceived actual experiences. (Maylett, T. 2017). Executive Team LEADERSHIP ASSESSMENT 9 Bezos has executives read six-page narrative memos prior to the start of a meeting. The team silently reads the memo at the beginning of each meeting in a way in which he describes as a “study-hall.” The memos he states are thoughtful and brilliant and set up the meeting for highquality discussion. (Amazon Blog, 2018). Bezos describes that people believe a high-standards six-page memo can be written in one day, when it may really take one week or more to write. The memos are written, and then rewritten, shared with executives who are asked to improve the document. It is then set aside for a couple of days to marinate, and edited again with a fresh outlook on the document. The purpose of this exercise is to recognize the scope. By doing this exercise with his executives, he is training them on how to improve results through the simple act of teaching realistic scope. (Amazon Blog, 2018). A major strategy of teamwork development is promoting the attitude among group members that working together effectively is expected. (Dubrin 9-2a, 2016). Teamwork improves when a leader practices consensus decision making. This is because it leads to an exchange of ideas within the group, with members supporting and refining each other’s suggestions. (Dubrin 2016). Bezos is not a fan of large teams. He has made it a culture to have teams completely independent of other teams within the company. When it comes to experimenting on new ideas, and deciding on what projects to take, Bezos limits the team size with the smallest teams possible by creating a two-pizza rule: if it takes more than two pizzas to feed the group, then the group is too big. (Anders, G. 2012). By using the energy and engagement with a small group eating two pizzas around a conference table, it displays close social face-to-face interaction. Studies have suggested that smaller teams in most cases are more productive, and those team members have more face time and social contact, which often prove valuable. (Stack, L. 2016). LEADERSHIP ASSESSMENT 10 A foundation strategy for achieving good teamwork is to select members for the team with aptitude, skill, and interest in teamwork. (Dubrin 9-2b, 2016). Team development is key at Amazon, and it starts with hiring and onboarding the right candidate for the role. One of Amazon’s leadership principles Hire and develop the best states that leaders raise the performance bar with every hire and promotion. They recognize exceptional talent, and move them throughout the organization. Leaders also develop leaders and take their coaching role seriously. (Amazon Blog, 2018). Bezos has engraved the respect for ethics at Amazon, which is why they screen its job candidates for a strong bias to action and the ability to work through uncertainty. One of the interviewing tactics they would have the candidate process is a scenario in which they have to create an action plan as brand managers in an area where ...
Purchase answer to see full attachment
Explanation & Answer:
5 pages
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Explanation & Answer

Please find answer.Let me know for any further clarifications.Pleasure working with you.God Bye.

Running head: WEEK 2

1

Implementation Plan
Name
University Name
Course
November 10, 2019

WEEK 2

2
Implementation Plan
Physical and Technological Resources

Physical Resources
Physical resources can be said as tangible items that are used by businesses in
operations. Some of the most common resources include “raw materials, buildings, and
facilities, machinery, energy, and supplies.” For making ESPN Plus Data Tracker, both
physical and technological resources are required.
Office Space .In order to develop the app, first of all, office space is required where
the app development process can begin .As the objective is to develop the app, therefore large
office space is not required. The intention is not to attract customers to the office; therefore,
there is no such large requirement of facilities. ESPN will make sure that the basic facilities
such as computers, paper, and pens required for developing the app are enough and sufficient.
This is what will be needed for the basic operation of the business. Further, I would make
sure that the employees are given the correct equipment to work, such as computers and
stationaries equipment.
Computer Network and Servers. These physical sources can be considered the core
for developing the app. Mobile backend tools are changing the way apps are developed. Now,
apps that earlier required an extensive team of engineers can now be developed in a fraction
of the time. A server will be required to make sure that employees are able to store the
information on one database. For the App development, ESPN will require a server to store
the data, and it can be shared either shared server or Google cloud-based server (e.g.,
Firebase or Firestore) can be used, which boasts various ways of overcoming the common
issue of no-server architectures. A server-based network is efficient in reducing the cost of
the business because users can be managed using a single server. Further, equipment such as

WEEK 2

3

printers can be shared by users. Thus, there is no requirement to install computers for each
computer which assist in reducing cost.
Planned Maintenance and Refurbishment. For developing the app, it is important
to su...


Anonymous
Really great stuff, couldn't ask for more.

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4

Related Tags