Unit 1 CTM Molly Huang: P1(b) Operating model

Meaning&Purpose:

Operating model can show how the company arranges their work. To give an ideally visual representation to their consumers and beneficiaries.

Operating model:

This is a business operating system. The management of a business is very important. Different company has their own system. Have different strategy. Need to think about the project programs, organization, and control.

YG is a public company. Through the OSMU strategy, YG Entertainment is expanding its diversified contents business model. YG is leading the initiative for digital music that can be adapted to a variety of platforms and devices, going beyond the basic album and concert activities. Besides this, it is extending its diversified management business and making a business model for the world concerning advertisements, broadcasting, characters, games, etc. YG Entertainment is a pioneer in the domain of new contents business.

The company has their mission, all the staff in the company know they need to do. They follow the 'brand key values' to do their work. Creative thinking -> Creat new value in the world) Evolving -> Seek endless evolution) Excellent quality -> Compete with perfected work) Unique identity -> Respect each other's ideas and ways) Familism -> Show love and consideration to all members as if we were one family.

The business was set up in 1996. The official website has a link to show the key things happened from 1996. The visitor can clear to see how YG Entertainment succeeds. And we can also find finance report from the official website.

YG Entertainment has their own department of marketing, operations, sales and accounting and so on. Every department has specific work to do, for example, marketing is a very important department to promote the products and the staff needs to do lots of research before the company makes new products. Otherwise, the company doesn't know what consumers want, the brand may not have a close fit with the consumers' tastes and habits, then the sales volume of the product may go down.

YG Entertainment managers

There are many managers in YG Entertainment responsible for different things. I think the main departments in this company are Financial, Marketing&Advertising, entertainment production and law. YG is a Public company, any financial transactions, accounting works, financial statement should be very clear and some of the details should publicity.
Maketing&Advertising department is very important for an entertainment company, the company needs to know the trend of fashion, music style and anything about the market. They should make something that the consumers interesting in and want to buy. Enough advertising can make good promotions for the artists and the company, more people pay close attention to their products. However, excessive promotions will have opposite effect.The consumers may feel tiresome and they will resent the products so that the impact of the company and artists will get worse.
Entertainment production is a creation department. They are responsible for the production of any programmes, films and so on. Before the production began, the staff in this department need to meet producers, have a complete script, shooting schedule and the budget etc. And they need to follow the schedule. If they have some accident they should have a second plan to instead it.
The Lawyer is an essential thing for entertainment companies. This is because the artists in the company may have copyright problems sometimes, the lawyer can help them to protect themselves. YG as a public company, they need to very careful in law problems. It is easy to break the image of the company if they have legal disputes. The lawyer can always give the company some suggestions.