Strategic Management and Audit in a Deregulated Environment Available to Purchase

Factors explaining how Television New Zealand (TVNZ) managed its way to success in the face of a radically deregulated business environment are examined. To understand the scope of the challenge a brief history of TVNZ is outlined; the values and problems which that history had produced by the mid‐1980s are discussed; and the strategy pursued to change the legacy and the results TVNZ is achieving today are detailed. Transforming TVNZ into a modern, outward looking company required a change in organisational structure; reforming staff attitudes, structure and accounting systems; introducing total costing and zero‐based budgeting; and breaking the company into strategic business units. A more dynamic marketing policy was adopted –giving the customers exactly what they wanted; greater emphasis on product differentiation, with the adoption of “brands”for its two channels; and an aggressive advertising campaign using company videotapes and publicity in the National Business Review. TVNZ is now the undisputed market leader, with its channels ranking first and second in the popularity stakes. In conclusion, Michael Cox,Group Internal Audit Manager at TVNZ, provides a brief internal audit perspective.