By Andrew Hill
Thousands of business school academics are eagerly cutting and pasting News Corp examples into next term?s teaching materials. But the lessons are so numerous and far-reaching they could fuel an entire programme. And so, I give you: the MMBA – the Murdoch masters in business administration.
Corporate finance. An introductory course examines the risk/reward trade-off in running a portfolio of media businesses around the world. It explains how to use spreadsheets to determine the optimal allocation of resources between profitable cable networks and struggling general newspapers to which the company founder is unaccountably attached. When does it make sense to consider sale, restructuring or even break-up? (This module is kindly sponsored by a beauty parade of enthusiastic investment banks.)
Leadership and organisational behaviour. Businesses thrive when employees align behind a strong vision. But if that vision is flawed, or leaders? authority is in doubt, it becomes hard to sustain staff loyalty. Emeritus professor of networking Rebekah Brooks, former chief executive of News International, will discuss the use of strong interpersonal skills in such situations. The dean of the Murdoch Business School, Rupert Murdoch himself, will make his traditional brief annual address to students about when, and even whether, it makes sense for the ageing founder of a family business to step aside.
Business and society. This previously optional module tackles ethics, corporate social responsibility and the role of government. What happens when legal or ethical transgressions put companies? ?licence to operate? at risk? The programme features a terse lecture from members of the UK parliament on the concept of ?accountability? as applied to staff, line managers, their bosses and their bosses? bosses. Complementing other MBAs? elective modules on China and Russia, a new course, ?Doing Business in Britain?, will examine the challenges of operating in a potentially hostile and unpredictable political climate.
Marketing. Companies need to position their products carefully, but what happens if the producer loses touch with the market and customers? This section includes a brand management simulation in which students divide into small teams to decide whether to defend, dispose of, or destroy a previously valuable, but now tainted, brand. Tony Hayward joins a special panel of contrite former chief executives to discuss his relief that the News of the World crisis management study has superseded the BP case.
Strategy. Sustainable competitive advantage rests on sound strategy.
But if circumstances change the strategy may need to change too. Chase Carey, News Corp chief operating officer, explains how to re-establish a strong strategic foundation while in tactical retreat.
Governance. The advantage of a dual-class share structure is that it protects entrepreneurial management from the demands of ordinary shareholders. The disadvantage of a dual-class share structure is that it protects entrepreneurial management from the demands of shareholders. This course examines how to reconcile these contradictions. It also analyses the role of independent board members in closely controlled companies. Can they avoid accusations they are mere decorative adornments to a successful strategy on the way up, and uncritical accomplices to a doomed strategy on the way down? (Includes a brainstorming session led by News Corp non-executives Jos? Mar?a Aznar, former Spanish prime minister, and opera singer Natalie Bancroft.)
Negotiation (advanced). Building on lessons learnt in the leadership module, students learn how to adapt a negotiating style based on market dominance and influence to the reverse situation, when your counterparties suddenly and unexpectedly gain the upper hand and start behaving like elected politicians. This course also aims to develop practical skills to avoid key staff being arrested.
The MMBA is taught over three weeks in Westminster, Wapping and midtown Manhattan, to suit busy media executives. The curriculum is highly flexible and subject to change at the whim of the dean, or the behest of the relevant political or judicial authorities. Cost to students: as yet unquantifiable.
? The Financial Times Limited 2011