Telecommunications Management - Com. 4480 Richard A. Gershon, Ph.D. School of Communication Western Michigan University 1903 West Michigan Ave. Kalamazoo, MI 49008 Tel. (269) 387-3182 (Office) Email: Richard.Gershon@wmich.edu Web Site: http://homepages.wmich.edu/~gershon/ Telecommunications Management 4480: Course Description The fields of media and telecommunications are at an historic crossroads in their evolution and development. Changes in technology, most notably the Internet and digital media arts, are changing many of our basic assumptions regarding information, news and entertainment content. This class examines the business strategy and management principles involving five sectors of the media and telecommunications field, including: Broadcast Television, Cable Television, Telephony, Satellite and Wireless Communication and the Internet & Electronic Commerce. The second part of this course examines a number of management and planning issues that are essential to the training of today's media and telecommunications professional. They include: 1) Strategic Planning, 2) Finance and Budgeting, 3) Marketing, 4) Leadership and 5) Innovation & Technology Management. An important goal of this course is to understand the relationship and convergence patterns between the broadcast, cable, telephone and Internet communication industries. It is incumbent upon today's manager to understand both the program software as well as the different delivery platforms. In my view, today’s student of telecommunications management needs to be equally conversant whether its negotiating intellectual property rights, understanding the technical parameters of Voice Over Internet Protocol or recognizing the business implications of satellite delivered radio and what it means to the principles of localism. This same student needs to understand that a communication satellite that transmits voice, data and video communication is equal to the task whether its televising the Olympic games from Beijing, China, facilitating an MP3 music file transfer via the Internet, or engaging in an electronic funds transfer on the London stock market. The main driving force behind such convergence is the digitalization of media and information technology. The 21st century promises a very different set of industry players than was the case in past years. The future will allow for the full integration of voice data and video services and give new meaning to the term "programming." Required Reading & Materials Richard A. Gershon, Telecommunications & Business Strategy (Taylor & Francis, New York: 2008) Jim Collins, Good to Great, (New York, NY: 2001, Harper-Collins). A complete set of Power Point slides covering weekly presentations will be available for purchase at the university bookstore. 1 COURSE OUTLINE ___________________________________________________________________________________ Class Meeting Times Reading Assignments ___________________________________________________________________________________ Week 1. TELECOMMUNICATIONS ECONOMICS I. Principles of Market Structure, Supply and Pricing Gershon, Ch. 1. The Telecommunications Industry Structure Elements of Market Structure 1. Seller Concentration 2. Product Differentiation 3. Barriers to Entry 4. Buyer Concentration 5. Demand Growth Principles of Supply and Pricing Three Factors that can Influence Supply Time Management – Discussion Week 2. TELECOMMUNICATIONS & STRATEGIC PLANNING I. Gershon, Ch. 2. What is Strategic Planning? Environmental Scanning SWOT Model External Factors Internal Factors Understanding Core Competency Organizational Culture Total Quality Management and Six Sigma Case Study: The Walt Disney Company Professionalism in the Workplace I. – Discussion Week 3. TELECOMMUNICATIONS & STRATEGIC PLANNING II. Collins, Ch. 1 Strategy Formulation Corporate Growth Strategies Competitive Business Strategies Mergers & Acquisitions Strategy Strategy Implementation Principles of Change Management Reengineering Process Evaluation and Control Case Study: the AOL-Time Warner Merger Professionalism in the Workplace II. – Discussion WestCom Project Assignment – Project Instructions 2 End of Unit I. ________________________________ Week 4 EXAM I. _________________________________ Week 4. BROADCAST TELEVISION I. The Business of Broadcasting Demographic Considerations The Broadcast Industry Structure Television Networks Program Distributors Network Affiliates Independent Television Stations Public Broadcasting The Advertisers Week 5. BROADCAST TELEVISION II. Broadcast Station Organization Sales Programming News Department Engineering Business Responsibilities of the General Manager Broadcast Program Strategies Syndication Audience Research Broadcast Marketing and Sales Case Study: Fox Television Research Strategies – Discussion Week 6. Gershon, Ch. 3. Collins, Ch. 2. CABLE TELEVISION I. Gershon, Ch. 11. Collins, Ch. 3. Gershon, Ch. 4. Collins, Ch. 4. The Cable Television Industry Structure Cable Operator Program Distributor Cable Television Distribution Network Hybrid-Fiber Coaxial (HFC) Network Principle of Cable Networking Cable Television Impact on Broadcast Television Cable Television Franchise The Franchise Renewal Process What is Management – Discussion? 3 Week 7. CABLE TELEVISION II. Cable System Management Cable Television Programming Basic and Expanded Cable Marketing Cable and Enhanced Services Pay Per View Television High Speed Internet Access High Definition Television Cable Telephony Case Studies: HBO and MTV Customer Service Finance and Budgeting – Discussion Gershon, Ch. 12. Collins, Ch. 5. End of Unit II. ________________________________ Week 8. EXAM II. ________________________________ Week 8. TELECOMMUNICATIONS ECONOMICS II. Principles of Public Utilities Common Carriers and Information Carriage Gershon, Ch. 5. Public Utilities Natural Monopolies Cyclical Patterns of Services Essential Services Public Utilities: Rights and Responsibilities Principle of Common Carrier Telephone Services Telephone Communication and Competition Telecommunications and Deregulation Deregulation Paradox Case Study: WorldCom Management Ethics – Discussion Week 9. TELEPHONY The Divestiture of AT&T The Telephone Industry Structure Local Exchange Carriers Telephony and Intelligent Networking Basic v. Enhanced Information Services Voice, DSL, VOIP and IPTV Services Case Study: Verizon Marketing – Discussion 4 Gershon, Ch. 6. & 13. Collins, Ch. 6. Week 10 SATELLITE AND WIRELESS COMMUNICATION Gershon, Ch. 7 & 8. Satellite and Wireless Communication Carriers General Categories of Service Requests Billing and Customer Service Issues Telephone Maintenance and Repair Request for Small Business Consulting Competitive Challenges in the Telephone Market Telecommunications and Small Business Consulting Case Study: Intelsat __________________________________________ Week 10 WESTCom PROJECT ASSIGNMENTS DUE __________________________________________ Week 10. THE INTERNET AND ELECTRONIC COMMERCE Electronic Commerce Business-to-Consumer Providing Information (I-commerce ) Advertising and Marketing Customer Support Services Business-to-Business Supply Chain Management. Just-in-Time Manufacturing Global Inventory Management Enterprise Resource Planning Case Study: Google Decision-making and Risk – Discussion Week 11. Gershon, Ch. 9. Collins, Ch. 7. TRANSNATIONAL MEDIA & TELECOMMUNICATIONS What makes a Global Corporation Global? The Transnational Media Corporation Five Reasons for Engaging in Foreign Direct Investment Risks Associated with Foreign Direct Investment Global Competition Issues Global Outsourcing Case Study: News Corp. Ltd. 5 Gershon, Ch. 10. Collins, Ch. 8. Week 12. INNOVATION & TECHNOLOGY MANAGEMENT Three Kinds of Innovation Innovation and Product Life Cycle The Innovator’s Dilemma Innovation and Change Management Case Studies: Apple Computer Change Management – Discussion End of Unit III. ________________________________ Week 13 EXAM III. ________________________________ 6 Gershon, Ch. 15. Collins, Ch. 9.