Time Warner

A. Current Performance

AOL Time Warner is not do go financially: Declined in Return on Investment, High Debt Load, and Declining Profit Margin

• Declining Profit Margin from -3.37% in 2001 to -17.87% in 2002

• Declining Return on Investment from -2.37% in 2001 to -85% in 2001

• Increasing Debt to Activity Ratio from 37% in 2001 to 119% in 2002

B. Strategic Posture

1. Mission

• the Stated strategy “To become the world’s most respected and valued company by connecting, informing and entertaining people everywhere in innovative ways that will enrich their lives”

2. Objectives

• To continue making technology simple for customers

• To accelerate the growth of its cable broadband assets

3. Strategies

• AOL Time Warner, their competitive growth strategy involved mergers and acquisitions of companies with new ideas and promising products or services.

An environment where online services, entertainment, and media meet.

4. Policies

. eCommerce and online shopping capabilities can stimulate growth and value of shareholders

• Its established broadband network affords AOL Time Warner the ability to deliver digital Content via high-speed internet access such as cable modems, DSL, satellite, and wireless

IV. INTERNAL ENVOIREMENT

A. Corporate Structure

• Messy structure where everyone doesn’t know where they are going and who will stay and who will leave

• Deferring cultures, employees and management personalities and operations

B. Corporate Culture

• Operations that could not be parallel

• Many changes in key management positions

• Dividing the mergers into different departments

C. Corporate Resources

1. Marketing

• Slowing subscribers growth

• Disappearing ad revenues

2. Finance

• Company’s sales is higher but the company’s Profit margin declining

• There is no clearly stated budget or performance strategies

3. Research and Development

• No specific leads towards the R&D development

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