Introduction:
Radio OneInc. was originated in 1980 in Washington by Catherine Hughes. It is one of the most renowned and leading company groups. The company had surprisingly grownwhen it opened 28 more stations in 1999 as compared to 1995 when the number of stations were just 7. Since the establishment of the company,it has targeted AfricanAmericans. The company is leading and having a competitive edge from its competitors. In addition to this, the company has capability and opportunity to acquire 12 well established urban stations in 50 diversified and emerging AfricanAmerican markets. In addition to this, it has also contemplated and negotiated to acquirenine stations in North Carolina, Charlotte, Georgia, Augusta, Indiana and Indianapolis. The company has several effective marketing and corporate strategies. It tends to provide urbaninformation, music and entertainment to the African American audience. The company has potential to grow in the forthcoming years as a leading company. It has to determine what to pay for the stations targeted to acquire.
The company has been operating in the markets of the US where it employs 13,985 employees including 373 part time and 960 full time employees. In addition to this,the headquarters of the company are in Lanham, Maryland (Radio-One-Inc, 2017).
Radio One Inc.Merger & Acquisition Harvard Case Solution & Analysis
Corporate Strategy of Radio OneInc.
Simply put, the corporate strategy of the companyis to reduce the risk exposure and manage resources and returns across the firm in order to achieve the objective of the company. A corporate strategy of Radio OneInc. is the growth strategy which the company has chosen in order to preserve its market share throughmerger and acquisition. This strategy has helped the company in growing even faster and to expand into new fields. This strategy would allow the company to have a larger customer base, i.e. African American customers or listeners. With the ultimate objective to maximizing wealth and value, the company has been evaluating different opportunities through the merger and acquisition route.
Corporate Social Responsibility
Radio OneInc. is primarily engaged with the community and for its betterment. The community citizenship of the company can be reflected through giving charities, donations of good and volunteerism of staff time. It also includes protecting health of the community and manages its social impact ofitsoperationson social communities.
The company has made enough strategies, policiesand energy efficient operations and otherenvironmental technologies in orderto address the climate change. Employees are also given appropriate training, health and safety standards and creates employee management safety teams.
Does acquisition suits Radio Inc.?
As the company is capable to takeover an entity due to many reasons which are listed below;
- Radio OneInc. would be able torecruit most of the African American households as comparedto any other radio broadcasterall around the United States.
- There are bright chances of growing in the forthcoming years as a market leading company.
- The demographics of the United Statesare one of the largest minorityand fastest growing group resided in the country.
- The acquisition will most probably double the profitability of the company in the future ahead through advertising and the company would flourish and grow even faster.............
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