Centurion Media: Doing the Right Thing Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

CENTURION MEDIA: DOING THE RIGHT THING

INTRODUCTION

In 2006, Centurion Media was a diversified public corporation that was originally headquartered in Chicago, Illinois with operating divisions in several major media segments. These significant segments included Centurion Broadcast Television, Centurion Cable Television, and Centurion Newspaper and were under the control of the President.

During the year 2001, Charles Reilly III became the CEO of the company. Reilly III had worked in different divisions at Centurion Media. He began as an errand kid throughout summers in secondary school. Chuck was graduated from high school with a degree in major of radio, TV and film. Initially, he started working full-time for one of the broadcast TV slots claimed by Centurion Media. He was generally preferred by his partners and viewed as a diligent employee. They likewise regarded him in light of the fact that he had begun at the bottom and never utilized his father's and grandfather’s positions as an influence to excel in the organization.

The rates were based on demand for commercial placement and availability in various programming, as well as competitive market forces. The president was primarily responsible for the execution of their division’s portion of the corporate strategic plan and for representing their division’s interests to the upper management of Centurion Media.

Centurion Cable segment was a division of the Centurion Media, which was run by the president and had 6 presidents as per region and as per division of these regions. These presidents had the operational obligation regarding various digital TV frameworks inside particular regions of the United States. Every VP was self-ruling with essential obligation regarding licensed business units negotiated in the urban communities and towns where their frameworks worked. Each district had its own sales channel that sold advertising slots at the rates made by the provincial vice presidents. The rates were focused around interest for business situation and accessibility in different programming along with aggressive business powers. The president was basically in charge of the execution of their division's allotment of the corporate key arrangement and for speaking to their division's diversions to the upper administration of Centurion Media.

PROBLEM IDENTIFICATION

The issues that Richard Bennett was concerned are as follows:

The Contract with the Northpark Media
Sales of advertising inventory at discounted prices
Loss of current potential clients
Decline is revenue sources
Decline in revenue in million of dollar

The new contract was made with Joseph Fowler, who was hired as the President of the Cable Distribution Division. Fowler was known for not taking negative remarks about the assigned task in hand and he had authoritative personality. He fired all those who argued with him on his decisions. With the new president in command, the contract was made between the Centurion Media and Northpark Media. Under this contract, the sales of advertising inventory would be made to Northpark Media at discounted prices; which would incur losses. According to the contract, Centurion Media obliged to sell all the advertising at exceptionally discounted prices to Northpark Media and 90 percent of advertisement that they would buy must be run and if they would not run then, Centurion Media would be penalized and would have to pay 5 times of the discounted prices of commercials. It was also mentioned in the contract that this contract would not be cancelled and it would automatically be renewed. The current contract between the top buyers of the commercials would also be superseded by the contract made between the Centurion Media and the Northpark Media. This also cancelled all the top paying contracts between the clients and the Centurion Media. This loss of clients’ contract would result in a loss million of dollars.

LEGAL AND ETHICAL CONFLICT OF INTEREST

The conflict of interest arose when the new president, Fowler joined the company as President of Cable Distribution Division. He joined the company to secure and entertain its own interests. He did not consider the employees’ interest as well as the company’s interest. He was so concerned about his own interest that he intentionally ignored the negative effects that he would bring through his decisions.

For Bennett the conflict of interest was with Fowler. It was because of the integrity and respect; which Bennett gave to his colleagues and subordinates. He was focused to build positive relationships with clients; this relationship building resulted in the increased revenue for the Centurion Media. Bennett’s team was recognized as the outstanding team nationwide in the Centurion Media. On the other hand, Fowler was focused to achieve his own interest...................................

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Richard Bennett faces a serious ethical dilemma that will affect your career, family, and colleagues. Bennett, regional vice president of the cable division Centurion Media, said that the contract is made the new president of his division, Joseph Fowler, will lead to significant financial losses for their own division of Bennett and Company. Bennett suspected that Fowler may have a serious conflict of interest, since he owned the shares and options in Northpark-company, with whom he was negotiating a contract. Bennett was just two years away from retirement. If he had chosen to protest against the treaty, it is likely to have very unpleasant consequences - including a threat to its own financial security. He will likely be fired. Furthermore, his actions may jeopardize the career of other employees and colleagues. The personal relationship between the CEO Centurion Media, Chuck Riley, and Fowler decided Bennett complicated. When Bennett contacted the Consul General and the controller in a corporate office Centurion media, they offered him to retreat. He was surprised by his position that the agreement, which Bennett thought would be financially disastrous, it was in the interests of the company. The controller has gone so far as to remind Bennett, how close he was to retire, stressing that it must ensure the protection of their work. That Bennett do about the situation he faced? "Hide
by Carolyn Conn, Aundrea K. Guess, Jonathan Hiatt Source: North American Case Research Association (NACRA) 12 pages. Publication Date: January 15, 2008. Prod. #: NA0005-PDF-ENG