strives to deliver sustainable growth and offer superior returns to its stakeholders. To achieve this, it offers world-class brands such as Time and People Magazines, CNN, HBO, and Warner Brothers, and utilizes demographics, globalization, and technology in order to segment its markets. Presently, Time Warner has found opportunities in digital communications and the Internet that will help the company reach its digital audiences and to contend with its top competitors, Viacom and Disney. It is also looking to expand into the local phone business by partnering with AT&T to offer local phone service over cable networks.With employees numbering almost 70,000, this organization is managed as a rational system. The company operates much like its competitors, existing with a hybrid organizational structure consisting of an executive board followed by essential operations and a divisional structure descending from this top level of the organizational chart. The five original divisions (Cable Networks, Publishing, Filmed Entertainment, Music, and Cable Systems) exist independently from one another in most situations. Recently (Summer 1999), a new division called Time Warner Digital Media was created to cross some boundaries between these divisions by exploring the possibilities of cross-platform products and new Internet opportunities for the company. Time Warner is a structured organization but lacks a strong cultural element. In the past, they have attempted to evoke a feeling of personal ownership in the organization by offering stock options as incentives for its employees. However, the sheer size of the company makes it difficult for the company to shed its bureaucratic culture. Currently, the management of Time Warner is undertaking methods to identify and implement the values that they wish to stress most within the company.This company has been a successful holding company and has increased earnings each quarter for several y...
