Tuesday 1 March 2016

P1(a) Ownership

Ownership.


Media ownership
This is basically who owns the company, no matter if it is private or public. In this case, Pixar is a subsidiary of Walt Disney. It is a process that gradually reduce the individual or organization to control the increase of shares for the mass market media, and it is separated into the ownership of private property and public services.
The purpose of media ownership is to promote freedom of expression, a real opportunity to express their views which are comprehensive and contain a wide range of media.

Meaning and purpose: 
Pixar is an American computer animation film studio producing feature and short films, and software products. Pixar began in 1979 as the Graphics Group, part of the Computer Division of Lucasfilm before it was acquired by Apple Computer co-founder Steve Jobs in 1986. The Walt Disney Company bought Pixar in 2006 at a valuation of $7.4 billion; the transaction made Jobs the largest shareholder in Disney.

"It is best known for its CGI-animated feature films created with PhotoRealistic RenderMan, its own implementation of the industry-standard RenderMan image-rendering application programming interface used to generate high-quality images. Pixar began in 1979 as the Graphics Group, part of the Computer Division of  Lucas-film before it was acquired by Apple Computer co-founder Steve Jobs in 1986. The Walt Disney Company bought Pixar in 2006 at a valuation of $7.4 billion; the transaction made Jobs the largest shareholder in Disney."

This information is referenced in http://home.iitk.ac.in/~umraos/pixar.html.


In that information, it stated the amount of money that Walt disney Company brought Pixar in 2006, and it is the evidence that ownership of Pixar in belong to Disney.

Subsidiary
It is a business that is wholly or partially owned by another business, sometimes this is called parent company or holding company. In this case, Pixar as the daughter company controlled by Walt Disney is the parent company.

Advantage
The holding company provides the subsidiary company with buying power, research and development funds, marketing money, knowledge, employees, which can give their daughter company a big support. It does have the ability to offset profits and losses of one part of a business with another. 

Disadvantage
Pixar has limited freedom in management, and get control as a daughter company, which is partially owned by another outside organisation.


Multinational

It means that the company has either investments or operations in two or more countries.

Advantage
One of the main advantage is to increase the market shares. The companies may find they are at saturation point in the domestic market and need a new outlet. They are able to start by exporting to other countries but eventually they will want to being production overseas. 
Disadvantage
However, Multinationals' profits are not usually kept in the host country. For example, the money that they have made and saved by General Motors moving car assembly production to Mexico would still go back to HQ in Michigan.

Since Disney had bought Pixar, which means that they are working together, and Disney does have businesses in different countries, no matter film, games, or clothing.

Synergy
It means that the concept that the value and performance of two companies combined will be greater than the sum of It is where on corporation will branch into different fields of business in order to make profit for example Disney they have filmed TV, books, games, toys and even hotels.

Advantage

It can be increase the profit of each separate medium and enhance the company's image through doing different areas in the market. Following that, everyone do know about them. 

Disadvantage

All the profit will be group into one combined company which means that disney will have all the profits in this case. 

Since Disney had brought Pixar, which means that Pixar was one of the sector of business of Disney by doing animation film.



Conglomerate

It is where a company is made up of other companies that all specialize in a certain field.

Advantages 
Advantages of this is that all companies are likely to boost their own profits from the business
Disadvantage
The disadvantages of this is that the company will eventually go into a new area of business as the company will be that large meaning that there is a higher risk of the company failing 

Pixar follow this by selling their products to the companies and retailing shops in Disney like Amazon/ Ebay or HMV.


This is how the office of Pixar looks like.

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