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Role of a Global News Agency - Coursework Example

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The paper "Role of a Global News Agency" is an engrossing example of coursework on business. Our Mission is to be the information company our customers value most, offering indispensable content, innovative trading platforms, and great customer service. Imagine a world without direction or knowledge; Life on earth would be one big drab…
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Role of a global news agency: A Case Study in comparison between Reuters with Bloomberg Our Mission is to be the information company our customers value most, offering indispensable content, innovative trading platforms and great customer service. - Reuters 1.0 Introduction Imagine a world without direction or knowledge; Life on earth would be one big drab. Without information, the world that we live in today would be nonsensical and devoid of meaning. Information drives the world, and thanks to science and technology, one doesn’t have to bank on a pigeon to deliver news or information. Over the centuries, the way news and information has travelled the traverse of the universe is quite remarkable. From pigeons to internet to video-conferencing, the transfer of information from one corner of the world to the other in seconds is indeed a remarkable feat. The advent of computers and internet has made the transfer of information instantaneous. It is in this context that the names of Reuters and Bloomberg assume significance. In Michael F. Strohmer’s (2000), ‘Communication of Global Companies with the Capital Market,’ on page 6, it says that, communication is the exchange of information, be it between people within an organization or between individuals, and it is this communication which keeps the organisation running efficiently and successfully. The same theory applies to man as well, as without proper information; life would be one big mess. This information could be on business, general, political, social or just about anything. What is important is that the right information should reach the right person(s). 2.0 Direction Reuters and Bloomberg are among the leading news providers in the world today. The kind of information that they produce is useful to all age groups of individuals, be it tech-savvy teens, entrepreneurs, or investors. What is striking is the reach that internet has developed over the years around the globe. Thanks to the internet, internet-based news agencies like Reuters and Bloomberg have made light the headache that caused people in search of news and solutions. Today, the world believes in accessing information at the click of a mouse, for gone are the days, when people would sit down to a hot cup of coffee and read newspapers. Competition is so intense, that executives can least afford to spend time going through newspapers or waiting at a table for a cup of coffee to be served to them. Decisions are made by the minute, and to do this, information must be readily available. Investors find no time to read through magazines or books to gain knowledge. They would rather be sitting in front of selective information on the most lucrative investment plan possible. While making a presentation, the orator would see him/herself armed with all possible information required to make a strong announcement. Check out the latest score at the English Premier League or maybe the way the English batsmen are faring against the Aussies down under. Information technology has become such a powerful tool today that just about anyone with access to the internet has the freedom to source and retrieve any information he or she may desire at the click of the mouse. The advent of the internet has made life easier and thrilling for millions of people the world over. Laptops and notepads are a traveller’s companion. Internet-based and blue tooth technology has also enhanced the level of knowledge that people desire, to make on-the-spot analysis or decisions. Just about everybody is aware of this powerful information tool at their service. Thus, it’s no surprise that organisations like Reuters and Bloomberg are names to be reckoned with in the field of information. Globalisation has opened up new vistas for a large number of people in the world. At the click of a button, one can access information on business opportunities, news and views, education, investment, and solutions. Though the advantages are numerous and would require quite some time to even describe them briefly, an area of immense speculation and interest is the field of business and investment. It’s pretty difficult to identify a business without competition, and difficult for a business to survive without knowing its competitor. With an open economic policy in dominance around the globe, many investors today have the luxury to decide when and where they should invest their hard-earned money. Many investors invest in bonds and mutual funds to attract better and faster returns. The growth of mutual fund companies is synonymous of the growth of competition around the globe. With access to information, fund companies find themselves challenged with differentiating their funds from competitors by clients and potential clients. This gives rise to a situation where clients as well as fund advisers have the option to choose from an ever-increasing number of funds and portfolio managers. No investor would like to gamble on their hard-earned money, and because of the kind of information available to them through news providers (read Reuters; for example), they are now in a better position to evaluate their investment options, ensuring that the ratio between risk and return is optimal. True, there is an ocean of information available on investment funds, and this can be overwhelming and confusing, as most information targets product promoters. The advantage to consider hundreds of investment options in funds opens up an ocean of opportunities. Investors have the luxury to choose according to their requirement, without having to depend on others for information or choice. Identifying funds which match their investment goals and risk tolerance has brought smiles to many investors. Earlier, investors were drawn by the stellar performance of a handful of anointed Fund Managers, irrespective of their cost or consistency, leading to a volatile situation. Thanks to Reuters and Bloomberg, this is a way of the past. Reuters, through their Lipper Leader system, is a suite of tools that guide investors and their advisers select funds that suit their pocket and investment goals (Lucas Garland, 2007). Just like Reuters, Bloomberg helps investors through it Portfolio Tracker, which is a quick and easy way to manage securities in various portfolios. The Tracker helps investors identify the pattern of the market, and gives an insight into the best option for investment. The Tracker reveals the gains and losses on stocks and funds, and additionally monitors indices from different exchanges across many countries (Bloomberg, Portfolio Tracker, 2007). 2.1 Fund Investment Reuters, through their Lipper Leader System, shows investors a clear, straightforward description of a fund’s success in preserving or growth of their capital through strong returns. The system also works in conjunction with other funds to assist investors choose the right fund that meets the desired parameters of the investor. Investment is among the most sensitive issues that affect an individual. It is therefore imperative that as an investment guide, Reuters propagates authentic information for their clients. Lipper takes this into consideration and after extensive research alone does the organisation publish or print this information. The strength of the information displayed by the organisation can be judged by the short and long-term risk-adjusted performance- relative information gathered along with the fund’s consistency. Such research involves a lot of time and money. Reuters has become synonymous of its consistency and reliability, and it is this trait that has pushed the organisation’s market value skywards (Lucas Garland, 2007) Reuters Lipper Leader System allows individuals find a comfortable solution to their financial investment. Lipper, a Reuter’s company, has become a global leader in investment solutions; providing analytical tools, tailored to institutions, intermediaries and investors, to provide decision support for sound fund recommendations. With the backing of over 140,000 collective investments worldwide, which include mutual funds, retirement funds, hedge funds, fund fees and expenses, the organisation, has indeed through its effort helped millions of people worldwide realize their financial dreams (Lipperweb.com, 2007). 3.0 Reuters Reuters, a highly reputed global news agency, was founded in the year 1851 in London. It is analogical that UK has some of the world’s best known news agencies; BBC and Reuters. While BBCs televised news is popular the world over, Reuters is internet-based and widely read by kids and adults alike. Both these agencies are highly acclaimed for their unbiased and authentic news coverage. Listed on the London Stock Exchange and NASDAQ, the company’s revenue in 2006 was an astonishing £2.6 billion. It has a strength of over 16,000, which includes editorial staff, journalists, photographers, and cameramen present in 94 countries (Reuters, 2007). The world is moving at a great pace today. The days of the cold war has been replaced by rapid economic development in countries that were known to be out-of-bounds for foreigners. China and Russia have gained considerably through globalisation. The growth of business opportunities and markets has made information availability necessary. Stock markets are controlled by the minute, and trading is ever so fragile, that unless definite and instant information is accessible or available, markets could crash from assumptions or anticipation. Reuters has been around long enough to have a strong data base on financial records and market data. Since Reuters operate through the internet, the company has the enviable facility to access and transmit information from any part of the world 24hours. There is much that can be written about the importance of Reuters in the world of business, news and views. Ever since its conception, the organisation has been the forerunner in world news on the internet. Reuters is the world's largest international multimedia news agency, providing just about every kind of news that one could seek, be it teens, or adults. News from the world of investment, business, science and technology, sports or headline, Reuters have come to be synonymous of authenticity and reliability. The organisation has a strong following in the world of Financial Market, Corporate Marketing, and Media Professionalism, making it one of the worlds most respected and acclaimed media agencies. As for financial solutions, Reuters offers comprehensive data on sales, marketing and trading, research and asset management. Through its coverage of news, analysis and price data on commodity and energy markets world wide, customers have the benefit of using Reuters order routing service to trade via a range of execution venues (Reuters: Financial Products, 2007). For those corporate professionals who seek solutions for their business, Reuters offers the combination of critical information and analytical tools to enhance market positioning and customer base. Reuters has among the largest stored data and information on businesses worldwide, and using its services, corporates can seek and identify, evaluate and forge new business opportunities. The information elicited from Reuters can also help existing businesses gain ascendancy through reliable and industry-specific competitor details. Another aspect of Reuters is the access to comprehensive cross-market financial information which allows organisations to manage their investments, debt, FX and derivatives (Reuters, Corporates, 2007). And then for those media professions, Reuters offers a comprehensive package of text, video, graphics, and photography along with endless web sites and wireless services. Just like most international news agencies globally, Reuters has an extensive network of television journalist and cameramen stationed in over 80 countries, who deliver fast and authentic information through video coverage and the internet. On RTV1, Reuters offered 73 Feeds and 5747 Scripts at 08:50, GMT. This goes to show that all that is required to access news, be it financial, or world news, Reuters maintain updated information every minute. For the record, just at this time, Reuters reported the following: Advisory-Oct06-Reuters: Nobel Peace Prize Nominees Special Feed. This goes to show how important Reuters is in our daily life (Reuters, Video News, 2007). 3.1 Partnership We think this (tie-up between Reuters and BNY) is a pretty powerful package that combines, direct market access capabilities with a full array of analytics that offers a lot of value to the end user. Clients will now have the ability to trade on any major global exchange from one ticket, and access real time global markets information. Joseph Velli, BNY ConvergEx chairman and CEO In addition to what Reuters has been able to share with its customers, the organisation has also tied up with market leaders to enhance their reputation and credibility. On January 8, 2007, Reuters tied up with the BNY ConvergEx Group for enhanced coverage of some of the world’s liquidity and DMA trading tools. The partnership was covered elaborately with prominence on the Securities Industry News. Through Reuters Trading for Exchanges, BNY ConvergEx Group, with a connection to over 90% of the world's liquidity and sophisticated DMA trading tools, allows Reuters customers access to possibly the fastest route to market. Stephen Wilson, Global Head, Exchange Traded Instruments for Reuters said that this partnership marked a major breakthrough in information technology and transaction capability, and stood for high value and standards in the world of financial investment management (Reuters, BNYConvergEx Group, 2007). Now what this does to investors is that, it allows them to go through a wider spectrum of investment possibilities around the world through a single access, giving them a better knowledge of their market and trend. Reuters have for long been providers of news to national and international news channels. This much is certain that, when Reuters came into existence, none would have thought that the agency would earn the reputation that it has. The organization became a very powerful tool in providing information and in propaganda. Much before and during the time of World War 1, Reuters was bringing news from the war front. Its correspondents covered the actual war under immense danger to their lives. They passed on information on behalf of the British Government prior to World War I, and in 1911, when the world went to war, Reuters entered into a secret agreement with the Asquith Liberal Government to propagate its Imperial News Service, in to British colonies in Africa, India, the Mediterranean, and the Indian and Pacific Oceans. The Government secretly paid Reuters for the cost of including in the service full reports of Government statements1, which Reuters Chief Editor, F.W. Dickinson described as private and confidential (Putnis and McCallum, 2005, p.3). 4.0 Bloomberg Bloomberg, founded as recently as 1981, was created with the vision to provide its customers with information-services, news, and business and financial services on a single, all-inclusive platform. Within a short span of existence, the company has grown with astonishing results. The success of Bloomberg is attributed to the company’s constant innovation of products, dedication to customer service, and its adaptation to the ever-changing marketplace. Based in New York, the company boasts of a workforce of over 9,000 people in more than 125 offices around the world. This company too, like Reuters uses the internet to attract viewership. Bloomberg, they say, is about eliciting information, be it on business or pleasure, entertainment or subjective; it’s about accessing, reporting, analysing and distributing information faster and more accurately than any other organisation in the business. Not to be outdone, the ‘Bloomberg Professional Service’, is Bloomberg’s answer to Reuters Lipper Leader System. Bloomberg Professional Service is the company's core product, and regarded to be the fastest-growing real-time financial information network in the world (Bloomberg, 2007). Contrary to expectations, Bloomberg has gone that extra mile to distinguish itself from Reuters with its own brand of publishing, radio content, and business television. How far these will be successful is too early to speculate, but considering the company’s vision to be different, the company is going in the right direction. What we see is the birth of Bloomberg Books, Bloomberg Wealth Manager, Bloomberg Money, and Bloomberg Markets (Arnold. B, 2007). As of September 2002, Bloomberg’s annual revenue was recorded at around US$2.8 billion. It had leased approximately 170,000 terminals, generating around 93% of its revenue. Considering the popularity and demand for Bloomberg services, the company’s terminals grew by 21% in 1998, 17% in 1999 and 9.5% in 2001. The total revenue generated in 2006 was around US$4.7 billion; with operating profits recorded at around US$1.5 billion. It is believed that the founder of Bloomberg owns around 68% of the group, while 20% of the shares are reportedly held by Merrill Lynch (Arnold .B, 2007). 4.1 Partnership I believe we have an excellent concept here. These Awards will give Australian businesses some well-earned recognition. We hope, through these Awards, to shine a spotlight on businesses that are doing well Peter Charlton, chairman of First Charlton Communications Talking of partnerships, FIRST CHARLTON Communications and Bloomberg forged an alliance in 2000 to launch Australia's first ever Business Awards. Australia’s growing dominance in the Pacific and Asian region brought about this decision from the Bloomberg head office in New York. What this alliance does to Australia’s business houses is that Bloomberg will be able to project more and more Australian companies on the global industry markets, and Bloomberg will have the coverage it seeks through this alliance in Australia. The joint venture between the companies will enhance Bloomberg’s existing global financial and business database, and focus on the growing Australian industry; recognise and reward outstanding businesses and have the exclusive rights to screen it across the Bloomberg Television network. Peter Charlton, chairman of First Charlton Communications, believes that the tie-up between Bloomberg and First Charlton Communications will help the company become prominent on the international stage (FindArticles, 2000). 5.0 Battle of the business news providers Reuters is over a hundred and fifty year old news agency. It has made a name for itself over the years to become one of the most respected news agencies in the world. With a strong workforce, the company operates in over 90 countries, and this makes the agency, reliable and trustworthy. Like Reuters, Bloomberg too is a news agency that started as late as 1981 in New York. The company has diversified into other businesses as well, and today is shoulder-to-shoulder with Reuters. The phenomenal rise of Bloomberg can be attributed to their innovativeness and diversification. Both these companies service their clients with financial and industry solutions, have a strong and reliable database on which to make calculations, and are equally reliable in market studies and as news providers. Reuters has a market value of $11 billion. In 2006, both Reuters and Bloomberg had revenue earnings of approximately $4.7 billion. The emergence of Reuters and Bloomberg on the capital market is quite conspicuous for their importance in investor guidance. Price indicators and market quotes of liquid and recent issues are covered elaborately on Reuters and Bloomberg information systems. Reuters covers most of the strong, EUR, GBP and USD issues on their EIBEARN01, EIBGBP01 and EIBUSD01 systems, and on Bloomberg’s, EIB system (EIB, 2007). The Reuters vs. Bloomberg battle is quite interesting. Reuters, London-based, has a long history of being a news provider. Much before the World Wars, Reuters was accessing and transmitting information for governments the world over. Many news channels used the service of Reuters for global news, and this tradition continues. Right from the time Reuters made its mark in delivering news by using carrier pigeons in 1850, to today’s internet and video-conferencing, Reuters’ remains one of the world’s most trusted and reliable news and business organisation. The company continued its traditional practices of receiving and transmitting information, till in the 1960s, and with the advent of computers, it began to service customers with statistical data on equities. When Mike Bloomberg launched his company, Reuters was undergoing a technological change. Bloomberg was here to stay. The young company was ready to experiment and innovate; something that Reuters least wanted, and this showed. Despite being in the same line of business, Bloomberg was bold and sent out a strong message to Reuters that they were about to revolutionise the news front. Two former Reuters journalists, Brian Mooney and Barry Simpson in, ‘Breaking News: How the Wheels Came Off at Reuters,’ wrote that Reuters failed to notice or head off the challenge from Bloomberg. The economic crumble of the events following 9/11 staggered both companies, with Reuters in particular, going through a rough patch of financial losses in 2002 and 2003. Today, the company is picking up its threads through the dynamic work of a well-known American, Tom Glocer, who has greatly simplified the vast product line and shed most of its non-core operations. Considering that people require only information relevant to their basic needs, Tom has seen the need to remove unnecessary databases that hamper quick responses and results. Though results are beginning to show, Bloomberg remains on course to closing its gap with it. In 2000 Reuters was more than twice the size of Bloomberg, which had revenues of $2.5 billion. In 2006 however, the two companies were virtually tied at $4.7 billion. This only went to show that people were more attracted to the style and working of Bloomberg than Reuters. Both, Glocer, and the CEO of Thomson Financial, Sharon Rowlands, were unanimous in their admiration for what Mike Bloomberg had done. But in the words of the current Bloomberg chairman Grauer, he considers himself to be a ‘student of companies.’ He boldly says that Bloomberg is one of the greatest companies of the world, because Bloomberg has been instrumental in changing the way customers did business today. To achieve such remarkable loyalty, the company must have done things that many other companies could not do so over decades. The company’s customer service around the world remains, seamless, says Loomis (2007). 6.0 Conclusion Ever since Internet became a source for information, many companies used this medium to great advantage. Advertisements and communication became more pronounced, and people began to accept the importance of the internet. News, views and now blogs, the internet has become a medium to reach out to the world for peanuts. However, this powerful tool has far more important applications. Reuters and Bloomberg have made the internet their own (not literally). The war between the two information giants has created a new dimension in viewership. The two remain the two most trusted and reliable news and solution providers in the world. With easy access to financial services and solutions, both these companies have managed to win large-scale appreciation from their loyal customers. What Reuters didn’t do, Bloomberg did with aplomb, creating a niche for itself among the new breed of investors. This showed, and the company has a large following, the world over. The strengths of both these companies remain in their strong database of information that helps investors choose the right plan for their investment. Reuters is known to cover news widely and they have a very strong workforce that gives them the edge over Bloomberg in media coverage. However, Bloomberg, led by a bold and innovative head, has closed the gap with the century-old Reuters. The battle for supremacy continues, and while the fight is expected to get stronger and fierce, the tech-savvy public stands to gain considerably by this. 7.0 References Reuters, 2007, About Reuters, Our Company: Key Facts, http://about.reuters.com/home/aboutus/ourcompany/keyfacts.aspx Communication of global companies with the capital market: Including the examples of VA Technology AG, Michael F. Strohmer, 2000, ISBN 3831108528, page 20. Carol J. Loomis, CNN Money.com, Bloomberg's money machine (cont.), Fortune, http://money.cnn.com/magazines/fortune/fortune_archive/2007/04/16/8404302/index2.htm About Bloomberg, http://about.bloomberg.com/index.html Lucas Garland, 2007, The Importance of Objective Fund Information The Lipper Leader System, https://customers.reuters.com/community/wealthmanagement/material/Lipper_Leaders_System.pdf Reuters: Financial Products, 2007, Better Information for Better Decisions, http://about.reuters.com/productinfo/financial/ Reuters, Corporates, 2007, http://about.reuters.com/productinfo/corporates/ Reuters, Video News, 2007, RTV1 - 6 Oct 2007 08:57 GMT, http://tvscripts.edt.reuters.com/index.html Bloomberg, Portfolio Tracker, 2007, http://www.bloomberg.com/invest/portfolio/index.html Lipperweb.com, 2007, www.lipperweb.com Reuters, BNYConvergEx Group, 2007, New Partnership, New Trading Opportunities: The next generation of Global DMA and Algorithmic Trading Capabilities, http://about.reuters.com/events/BNYconvergexgroup/reutersConvergex.htm Peter Putnis and Kerry McCallum, 2005, The role of Reuters in the distribution of propaganda news in Australia during World War I, http://www.ce.canberra.edu.au/amt/PDFs/AMT2005Putnis.pdf Bruce Arnold, 2007, ketupa.net, media profiles, Bloomberg, http://www.ketupa.net/bloomberg.htm FindArticles, 2000, Charlton & Bloomberg launch new Business Awards, Business Week, http://findarticles.com/p/articles/mi_m0BJT/is_15_8/ai_68533548 Michael F. Strohmer (2000), Communication of global companies with the capital market: Including the examples of VA Technology AG, ISBN 3831108528, page 6 European Investment Bank (EIB), FAQ-Capital Markets, 2007, http://www.eib.org/investor_info/faq/index.htm Read More
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