Difficult Decisions 1
Chapter 8 Case Study: Making Difficult Decisions at NBC Universal
The NBC Universal’s late night programming network where faced with some very tough decisions regarding Jay Leno and Conan O’Brien talk show host. I’m sure everyone is familiar with this dynamic duo, if not allow me to share a little history about these two gentleman. Jay Leno was born James Douglas Muir Leno on April 28, 1950, in New Rochelle, New York to father Angelo Leno and mother Cathryn Leno. Jay Leno is the late night talk show host and stand-up comedian who hosted The Tonight ...view middle of the document...
The network experienced low ratings with “The Jay Leno Show” hosted by Jay Leno, while Tonight Show starring O’Brien still regularly came in third behind, David Letterman and ABC’s “Nightline”. NBC canceled the prime-time “The Jay Leno Show” and moved Jay Leno back to “the Tonight Show”. Conan O’Brien was furious at this point he refused the alternatives offered by NBC and he used his position as leverage with the network. When it was all said and done Conan O’Brien accepted a $40 million dollar severance package plus several millions in severance for his staff, not bad for a deal gone bad. NBC made two critical missteps six years ago when the network signed Mr. O'Brien to replace Mr. Leno in 2009, say management consultants. It's a bad idea to promise someone a promotion in order to retain him, they say, and so is naming a successor too far in advance. NBC was left with a costly lesson learned, hopefully.
Source: http://www.biography.com/people/jay-leno-9542191, Modern Management 12th Ed. Samuel C. Certo, S. Trevis Certo pg. 181, http://www.biography.com/people/conan-obrien-9542192
Difficult Decisions 3
There were several programmed decisions made by NBC’s management teams that caused this network a great loss in money and talent. As I dive further into this case the Modern Management suggest we look at alternatives before making a decision.
1. List three alternatives that NBC management might consider in handling competition from other television networks before making a decision to remodel the company’s programming schedule?
a) The first alternative NBC management might consider in handling their competition from other network would be for the decision makers they should list, as accurately as possible, the potential effects of each alternative as if the alternative had already been.
b) Secondly, they should assign a probability factor to each of the potential effects; that is, indicate how probable the occurrence of the effect would be if the alternative were implemented.
c) Last but not least, keeping organizational goals in mind, decision makers should compare each...