Page 614 - The Case Lab Book

the four big banks RBS, Barclays, Bank of Scotland and Lloyds were all
questioned on their qualifications to run a bank – they had none other than
their profession e.g. accountant or had previously run a successful other
business.

Highfield’s lack of newspaper experience is possibly a good thing, given the

changing face of the industry. Unlike his predecessors, he has gone on

record to say that Johnston Press did fail to invest in content at its stable of

around 250 newspapers, a process that self-evidently speeded the

company’s demise.

Finance

Finance is at the heart of JP. Revenues from print circulation and
advertising is falling and remedial action is required. The solution seems to
be to acquire greater numbers of print media newspapers to gain
geographic national coverage on a local basis but, this does not address
the increasing pace of technological change. Moreover, as debt rises
interest payments have to be met against this background of falling
revenues. The solution is cost cutting and a drive to debt repayment, a
solution which had the seeds of its own destruction should both print and
digital revenues not achieve the required sales.

Goals & Values

Goals and values are not specifically outlined in the case study but there is
an under-current of profit -V- professionalism, new -V- old.

From their actions it would seem that JP has a problem living up to its
motto ‘Life is Local’.

Technology