Overview:
Shaw Communications Inc. is a Canadian communications company. Shaw’s core
business is providing its customer with high levels of service in a variety of communications and
connectivity mediums. These include: broadband cable television, Internet, Digital Phone,
telecommunications services (through Shaw Business Solutions), satellite direct-to-home
services (through Shaw Direct). In addition, through a new acquisition in 2010 they now offer
program content (through Shaw Media) (Google Finance, 03/14/2011). Shaw is focused the
domestic Canadian market. Shaw Communications has shown consistency even in difficult
times. Since 2005 their stock have remained on average between $20 and $22 per share,
specifically on March 14, 2010 the TSE was trading at $20.28 (Google Finance 03.14/2011)
Current Situation
A.
Current Performance:
In 2010, Shaw Communications had a year of growth and change both figuratively and
literally. There annual report shows financial measures up year over year. They opened and
acquired new business units and promoted a new family member to Chief Executive Officer.
Shaw had a fiscal year end as of August 31, 2010 reporting $3.7 billion in revenue and
8% increase over the previous year. In addition they reported $515 million in free cash flow and$
372 million in dividends (Shaw Communications Inc., August 2010). Both are increases over the
previous year, and important to Shaw’s strategy of continuous development of new products and
services to enhance connectivity of their customers (Castaldo, J., 2011).
Shaw’s is currently the largest cable provider in Canada and holds 30% market share of
the Canadian cable subscribers (Marketwire, 10/22/2010). Although the number of cable
subscribers actually declined (still providing 79% of their revenue in 2010) in the first quarterly
results of the new year, they show a significant growth in the digital, internet and satellite
subscribers (Marketwire, 10/22/2010). In addition, the first quarter ended with consolidated
revenue for the three month period of $1.08 billion was up 19% over the comparable period last
year and the operating income was $473 million was also comparable to the prior year.
As previously mentioned 2010, was marked with change for growth in the company.
First, Shaw closed the acquisition of Canwest Global, and launched Shaw Media. This a
testament of the long-term goals and strategic infrastructure of this company since in the
beginning of the new millennium, when Jim Shaw was the Chief executive officer, it was
perceived that Canwest that would be launching a takeover of the Shaw Corporation ( Watson,
T., 2010 ). Secondly, Shaw announced their new CEO Brad Shaw, brother to the previous CEO,
and son of the original founder, JR. Shaw. This change in top management is believed to be a big
part of the new strategic direction of the corporation to as explained by Jim Shaw:
“We are well under way in the integration of the Shaw Media assets and it
became clear to Brad and I that it would be best for Brad to assume the role of CEO
immediately so that he can move forward with the necessary decisions.” Marlow, I. & S.
Krashinsky 2010
B.
Strategic Posture
Shaw’s Vision is very clearly articulated on their company website: “We, the leading
entertainment and communications company, deliver exceptional customer experience through
outstanding people sharing Shaw values.”
Their new mission statement was launched only last year in 2010, and is repetitively found
throughout various financial, internet and marketing reports: “Together is Amazing: using the
power of our communications network — Shaw Cable, Shaw Direct, Shaw Media, Shaw
Broadcast Services, Shaw Tracking, Shaw Business — and its extensive geographic footprint to
provide Canadians with a springboard they can use to connect, share, inspire and create.
Shaw’s strategy is clearly outlined in their last annual report, and also repeated in several
researched documents including a Q&A with Brad Shaw (Castello, J., 2011) and featured in their
2010 Annual report:
“Shaw’s strategic focus is consistent: we have a relentless commitment to customer service
and value. Leveraging our network infrastructure along with continuous development of
new and enhanced products and services are all driven by our focus on customers.
So for us, we want you to be able to stop watching a show in your household, grab your
tablet as you’re out the door on your way to wherever, fire it up, and you’re back watching
the show. When you look at mobile device growth, that’s certainly where the market is
going, and content feeds into that.”
Shaw measures the success and growth of its strategies through various calculations,
including service revenue, service operating income before amortization and operating margin,
free cash flow, statistical measures of subscriber counts, including penetration and bundled
customers.
These corporate strategic management concepts help to build a strong culture and
direction for continuing planning and implantation to be based. The vision, mission and
strategies appear to be closely linked and creating a natural flow of decision making. This is
reflected in the changes in management, the acquisitions and the new focus for growth of the
Shaw Communications Inc.
Reference List:
Castaldo, J., (2011) Q&A: Brad Shaw, CEO, Shaw Communications: Four months into his new role at the
family business, the youngest Shaw faces the challenges of UBB, the Canwest acquisition and a first-time
foray into the wireless market. Canadian Business Online, March 10, 2011. Retrieved:
http://www.canadianbusiness.com/technology/companies/article.jsp?content=20110310_131933_6232&u
tm_source=business&utm_medium=rss, accessed March 11, 2011.
Google Finance (03/14/2011) Retrieved from: http://www.google.ca/finance?q=TSE:SJR.B.
Marlow, I. & S. Krashinsky (2010) Jim Shaw steps down after ‘unprofessional’ behaviour. Globe and
Mail Published Thursday, Nov. 18, 2010 2:12PM EST Last updated Monday, Dec. 13, 2010 6:41PM
EST. Retrived from: http://www.theglobeandmail.com/globe-investor/jim-shaw-steps-down-afterunprofessional-behaviour/article1804621/. Accessed 10/03/2011.
Marketwire (Oct. 22, 2010) Shaw Communications Inc.; Announces Executive Leadership
Appointments, Calgary, Alberta. Retrived from: http://www.marketwire.com/press-release/ShawCommunications-Inc-Announces-Executive-Leadership-Appointments-TSX-SJR.B-1339648.htm,
accessed March 13, 2010.
Shaw Communications Inc. (August 2010) Together we are amazing. Annual Report. Retrieved from:
http://www.shaw.ca/uploadedFiles/Corporate/Investors/Financial_Reports/SCIAR10.pdf. accessed
03/10/2011)
Watson, T., 03/15/2010, Don’t Call Him ‘Junior’, Canadian Business, Vol 83, p30-33