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What is the strategy of NYTD?

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1) Describe NYTD’s evolution to date. What is the strategy of NYTD? Are the organization and control consistent with the strategy?


NYTD had developed and was operating in two websites: “NYTIMES.COM “and “BOSTON.COM”. They also responsible for managing the company’s digital archive distribution business. Access to NYTIMES.COM free.

New products were introduced regularly to website.


Free online registration,
Decentralize to Centralize,
One webpage for all information,
Classified advertisements.

2) What impact has NYTD had on the rest of the Company?

In the beginning NYTD was considered a credible part of the corporation. However, in time NYTD created a lot of tensions with the original Company. NYTD broke down the “Chinese Wall” that existed between the editorial and business operations in the original Company; they encouraged collaboration and communication. Concerning advertising sales, the newspaper sales force was unwilling to share their key customers. Moreover, staff feared that the online version would decrease subscription sales. It did not; it even increased the number of subscriptions and became a complementary asset instead of a competitive. Because of this, NYTD considered its branch to have a positive impact on the Company. However, tension was also due to the fact that NYTD was allowed to stay in business even though it lost money several years in a row.

3) How does the way NYTD is managed compare to the way a venture capital firm manages a startup? What insight, if any, do you draw from this comparison?

NYTD can be compared to a venture capital as a lot of money has been invested in the beginning, this can be described as organic growth. However, contrary to the venture capital, there has been no real return on investment.

4) What impact do internal perceptions of NYTD’s performance have on its operations?

Initially they only focus on revenue generation, not concerned about expenses. The performance evolution based on : Forecast revenue-achieved revenue Company revenue – competitor’s revenue

By the end of 2000, they are having pressures to achieve profitability, and for that they were increasing the operating efficiency by centralizing operations. Performance evolution based on operating problems.

The two divisions’ editorial and business were operating separately. But some of more innovative and successful additions are coming from cross functional collaboration.

5) Would you change in NYTD’s existing organizational structure?

As a manager I would change organizational structure. Environmental changes and organization’s increased product line compel to change in structure.

6) If so, how would the change you propose affect:
a. NYTD’s culture and leadership style?

NYTD can develop good culture and leadership style with:

There should be informal culture as they are hiring young employees to retain them. There should be some necessary distance between senior executive and other employees. Internet’s culture should meet with culture of head corporate. Should be coordinating leadership and decentralized functionality.

b.NYTD’s likely budget?

NYTD developed a bottom-up approach to budgeting. Changes will be done is NYTD using 2 approaches, top-down and bottom up. Though most solid ideas for new projects were generated by experienced executives and journalists, ideas for new content and new features were encouraged from throughout the organization.

c.The way NYTD’s performance is judged?

NYTD’s performance is primarily evaluated by the following questions:

1. Can we tolerate the loss we are generating?
2. Are we having any significant operating problems?
3. If any damages being done to the core business or the core brand?

If NYTD can handle that problem, we can say NYTD have good performance. This is consistent with the literature review that how a company can handle that problem.

d.The way new ideas for the websites are generated?

There are 2 ideas for the websites are generated:

Cross functional culture
Innovative ideas from employees are appreciated.

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