DC Thomson’s decision to sell off its factory in Dundee was a tactical decision. Distinguish between strategic and tactical decisions.

DC Thomson’s decision to sell off its factory in Dundee was a tactical decision.
Distinguish between strategic and tactical decisions.

DC Thomson, publisher of The Beano and The Dandy, has launched its much loved
comics on Apple’s Newsstand, making these national favourites available to anyone
with an iPad, iPhone or iPod touch.
Background
DC Thomson & Co Ltd was founded by the Thomson
brothers William, David and Frederick and has been
publishing newspapers since 1905. David (DC) ran the
company and gave the company its name. Today the
company is run by the descendants of the original founders.
DC Thomson publishes a range of newspapers and
magazines including The Courier, the Sunday Post, The
Press and Journal, The Beano and The Dandy. It also
owns a range of companies including Aberdeen Journals
(the publisher of the Press & Journal) and Parragon Books.
The company has a head office in Dundee and offices in
Aberdeen, Glasgow and London.
Some of their characters are known the world over including Dennis the Menace and
Gnasher, Oor Wullie and The Broons.
Online Business
DC Thomson, like most publishers, views the development of the digital side
of its business to be key to its future success. Many of its publications have their
own websites including The Beano and The Dandy with online subscriptions to its
magazines.
In 2009 DC Thomson agreed to buy the social networking site Friends Reunited
for £25·6 million from ITV. Friends Reunited aims to reunite people who have
lost touch with old school friends, work colleagues and such like. Two years later,
however, DC Thomson reassessed this value and showed the asset to be only
worth £5·2 million—one fifth of the price paid. Despite this, by the end of 2011,
DC Thomson’s online business increased its share of turnover from 4% to 10%.
Closures
The move into the digital era has not come without cost. Improvements in its online
figures were helped by DC Thomson’s decision to close a print plant in Dundee in
late 2010, with plans to close another in Glasgow in 2012–13. A spokesman said the
closures “are painful for the whole business, but are necessary so that our businesses
have the best opportunity to prosper”. Like all businesses, it is affected by economic
conditions and the influence of the internet and its related media.

New Platforms
DC Thomson felt that its move into digital
publishing underlined its commitment to
children’s literacy. This is backed by research
into how comics can help children progress
from picture books to text. By launching
The Beano and The Dandy as apps, this
ensures children of all ages can read its comics in all types of format. Mike Stirling,
editor-in-chief of The Beano, said: “The great thing about the new app on Newsstand is
that it guarantees our fans can enjoy The Beano 24/7”.

SECTION ONE
QUESTIONS
Answer ALL the questions.
1. (a) Identify the type of business organisation that DC Thomson is.
(b) Describe the advantages and disadvantages of this type of business.
2. DC Thomson’s decision to sell off its factory in Dundee was a tactical decision.
Distinguish between strategic and tactical decisions.
3. DC Thomson has offices all over the country with its head office in Dundee.
Describe the advantages and disadvantages to DC Thomson of operating a
centralised decision making structure.
4. DC Thomson could use sampling in order to find out what customers want.
Identify and describe 2 methods of sampling that an organisation could use.
5. In Option 2, DC Thomson could launch more titles on Apple’s Newsstand app.
Explain the effects on employees of introducing ICT to an organisation.
6. DC Thomson has a Finance department.
Outline the role of the Finance department in an organisation.
7. DC Thomson has to motivate its staff.
Identify 3 ways an organisation can motivate its staff.

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