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News Corp’s Internal Factors


NewsCorp’s Internal Factors

NewsCorp Internal Factors

NewsCorp is a large American multinational that focuses its business inthe newspaper and publishing news. The company was formed as aspin-off of the former News Corporation. Founded in 1979, the companyhas a well establish an internal factory environment that has shapedits history and corporate journey since then. The company was splitin 2013 as a way of forging a new organization following the splitthat was preceded by massive public scandals in some of thesubsidiaries. The internal factors of the company are therefore anextension of the former company. However, News Corp is a differentcompany with a new outlook and focus, despite being in the primarybusiness of the predecessor company.


Theorganizational culture of the company is based on the leadership ofits management as founded by Robert Murdoch (The ChiefExecutive, 2011).Since formation of the company, the management has taken extrememeasures in order to grow the company, forming a culture ofperformance. The performance culture of the company is focused ongetting things done and reaching certain set of achievement no matterwhat. This culture led to it long time practice of gettinginformation at all cost, even infringing privacy rights of anyone inthe way of its search for news (Chittum,2011).The company’s subsidiary, Newsof the Worldfaced scandals following the revelation that it has been hackingprivate files and phone conversation of people and leaders such asprime ministers and royal family in the United Kingdom (Stelter,2011).

Itis the culture of the multinational media house to give donations andgrants to build certain sectors that it deems strategic to itsbusiness growth. According to the company News Corp (2014), thecompany is involved in philanthropy in educational innovation,digital literacy, free press and uplifting vulnerable youth amongothers. However, the company also misdirects this culture to biaseddirections especially in politics. According to Smith (2010), thecompany donated one million dollars to a politically inclined group.The ChiefExecutive (2011) reported that this corporate culture is wrong andfaults the leadership of Murdoch in terms of corporate leadership.This is because the company does not promote good faith in itsdealings and charity.


NewsCorp is governed by a board of directors consisting of 16 directors,led by Robert Murdoch. The board of directors is the highest decisionmaking body in the company that controls several media houses in theworld and runs billions of dollars in revenue. In the directors boardis Chase Carey, the chief operating officer and president of themultinational (News Corp, 2014), Under the board of directors, theoffice of the chairman is formed by a team of six executives that runthe company with Robert Murdoch as the chairman and the ChiefExecutive Officer (News Corp, 2014).

TheNews Corp group holds several other companies as subsidiary companiesin different areas of mass media specialization. Before the officialsplit in June 2013, the company ran all the subsidiaries under NewsCorporation emblem. However, after the split, most of thebroadcasting assets the group owned under the News Limited arecurrently owned by 21stCentury Fox (BBC, 2013). On the other hand, companies, publishingassets are currently owned and controlled by News Corp. The currentorganizational structure reflects a corporate change of ownership andmanagement structure meant to rebrand the company after the publicityof 2011.


Thecompany’s internal controls are strong and well established thatthe organization is found to be responsible for its corporate roles.News Corp has a compliance steering committee, which oversaw acompany-wide compliance reforms from 21012 (News Corp, 2014). Thecommittee is responsible for the provision of oversight, managementand general compliance for the organization. The committee ismulti-disciplinary and is headed by executives from thecontrol-related departments the chief operating officer, corporateaudit head, group compliance officers and chief financial officer(News Corp, 2014).

NewsCorp management has established internal control department in thefinance department and the audit function of the organization. Thecompany’s internal audit is responsible for safeguarding theorganization’s resources as well as promoting accountability.Moreover, the organization uses the services of a well known andreliable external audit company, Ernst &amp Young (News Corp, 2014).The organization has also structured it management to ensure a clearchain of command that promotes accountability and authority.


Asa media house, News Corp has one of the best marketing strategiesthat explains the current results and success at the company. Theorganization uses an integrated marketing system by incorporating arange of marketing strategies. First, the company uses strongpartnerships with other media organizations that are not directcompetitors but supplements its marketing function. For instance, thegroup acquired a social media company, Storyful as its expansionstrategy to market itself through the online platforms (Sharma&amp Rubin, 2013).Other partners are advertising companies, such as News Marketing, TheSmartSource Xpress and other branded advertising.

Thecompany also uses promotional volunteering that is meant to promotethe image and services of the company. For instance, News Corporganized and participated in the Amplify New York Half Marathon ranin March 2014 (News Corp, 2014). Another marketing strategy employedby the organization is the use of philanthropy. The corporationengages in charitable programs that promote its brands as well ashelp people. Moreover, the company has a successful online presencedue to its online marketing strategies. The company uses itswebsites, online search engine optimization and social media presenceto market its brands as well as its services (Sharma&amp Rubin, 2013).


NewsCorp has a well structured public relations function as a compactmedia corporation. The company has promoted its relationship with thepublic by use of philanthropy and involvement in programs that areorganized to promote social welfare. However, the corporation hasfaced negative relationship with the public following the revelationsof the company’s malpractices in its efforts to retrieve personalinformation that infringed on privacy rights. This is one of the mostnegative publicity the media giant went through, thereby tarnishingits name. To recollect and consolidate its image, the grouprestructured its corporate structure and save corporate image.


NewsCorp has a well structured organization with a definite chain ofcommand and flow of authority. Led by Robert Murdock, the media giantowns and manages several subsidiaries that form the group’sbusiness interests in various sectors of the media and publishingfield. This has constituted the culture of the organization which hasbeen under negative public scrutiny and opinion following its illegalpractices and personal privacy infringements. However, News Corp hasrecorded its successes due to successful marketing strategies andwell established internal control systems, as part of its internalenvironment factors.


BBC,2013. &quotNewsCorp officially splits in two.&quotRetrieved from,

&lthttp://www.bbc.co.uk/news/business-23104822&gtApril 29, 2014

Chittum,R. (2011). RupertMurdoch and the Corporate Culture of News Corp.Retrieved From,

&lthttp://www.cjr.org/the_audit/rupert_murdoch_and_the_corpora.php?page=all#sthash.m64XAnFW.dpuf&gtApril29, 2014

ChiefExecutive, 2011. CorporateCulture and Why Rupert Murdoch is at Fault.Retrieved

From,&lthttp://chiefexecutive.net/corporate-culture-and-why-rupert-murdoch-is-at-fault#sthash.GjHVR9bA.dpuf&gtApril29, 2014

NewsCorp,2014. Retrieved From, &lthttp://newscorp.com&gtApril29, 2014

Sharma,A., &amp Rubin F. (2013).NewsCorp Makes Social-Media Push. RetrievedFrom,

&lthttp://online.wsj.com/news/articles/SB10001424052702304866904579270043818215428&gtApril 29, 2014

Smit,B. (2010). NewsCorp. gave $1 million to pro-GOP group.Retrieved from,

&lthttp://www.politico.com/news/stories/0910/42989.html&gtApril29, 2014

Stelter,B. (2011). NewsCorp. Newspapers May Face U.S. Inquiry.Retrieved From,

&lthttp://www.nytimes.com/2011/07/14/world/europe/14react.html&gtApril 29, 2014