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DISCUSSION 1. Surf the Internet and look for a company with business and functional units. Identify the objective of every business and functional unit. Define the programs, budget, and procedures, if any of the company. 2. Mini-Case. Read the mini-case of Tronc and answer the discussion questions comprehensively. Tronc When Tribune Publishing renamed the company tronc, analysts wondered if it was the worst corporate rebrand ever, and twitter lit up with abusive comments. One tweeter wrote, “I think tronc is the sound journalists make the second before they barf after seeing company memos about content and monetization.” Tribune Publishing made the controversial move to Tronc in the midst of a bruising takeover battle. In May 2016, the Tribune Publishing board rejected a second all-cash buyout offer from Gannett Publishing at $15 per share, up from an initial unsolicited bid of $12.25. The debate became public and heated as Gannett made an appeal directly to the Tribune’s non-management shareholders. The effort failed. To bolster their contention that the company was worth more than Gannett was offering, the Tribune announced a strategic redirection: a new stock listing with the name tronc and a goal of posting 1,000 videos a day with Al software. The centuries- old publisher of newspapers was billing itself as a multiplatform “content creator.” Tronc’s leadership’s interest in recategorizing their enterprise as a tech company rather than a publisher was rooted in the problems of the newspaper industry. For newspapers, circulation was dropping, and advertising revenues were dropping even faster. Newspaper publishers were seeking new business models to sustain operations. The troubles of the newspaper industry, however, made valuation of publishing companies controversial . Some investors seemed to be paying hefty premiums for the right to control well-known newspapers. After their early summer skirmishes, negotiators for Tronc and Gannett continued meeting behind closed doors, trying to find a mutually acceptable price. In October 2016, rumors were swirling that the two sides had come to an agreement at a price of $18.75 per share. However, the banks that were set to finance Gannett’s purchase announced that they would not support the deal. The negotiations collapsed and the stock price of both Gannett and Tronc slid. Source: Tronc: Valuing the future of newspapers (2017, August 25). Retrieved from https://som.yale.edu/ case/2017/tronc valuing-the-future-ofnewspapers 156 Unit 3 Strategy Implementation Discussion Questions 1. Would it be favorable for Tribune’s board to accept Gannett’s offer of $15 per share? Discuss your answer. 2. If $15 per share is not favorable, what is a better price? 3. What is the best way to value a company like Tronc? 4. Did the strategic repositioning of Tronc make any favorable or unfavorable difference?