Sesame street case

8/11/2019 Sesame street case

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Background

esame Workshop is a nonprofit educational organization making a meaningfuldifference in the lives of children worldwide by addressing their criticaldevelopmental needs.The Workshop is committed to the principle that all

children deserve a chance to learn and grow; to be prepared for school; to betterunderstand the world and each other; to think, dream and discover; to reach theirhighest potential.

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Sesame workshop & its development

Sesame Workshop is an American educational childrens television series forpreschoolers and is a pioneer of the modern educational television standard,combining both education and entertainment. Sesame Workshop is well known for its!uppet characters created by "im #enson. Sesame workshop uses combinations of

puppets, animation, and live actors to stimulate young childrens minds to improvetheir letter and word recognition, basic mathematics, geometric forms, classification,simple problem solving, and socialization via segments of children or people ineveryday life.

Sesame Workshop$s shows were highly educative for children since it first introduced

in America; still it was very popular in more than %&' countries. (' differentlanguages were used to broadcast in different country with great success where theyused local actors, writers, musicians, animation, and sets. Also )nglish version or)nglish dubbed version were telecasting over various country.Sesame Workshop wasthe producer of Sesame Street, the highly acclaimed children$s educational show. *y(''%, the show was broadcast in almost %&' countries, making Sesame Workshop thelargest single teacher of young children in the world. +nternational revenuerepresented about (' of total revenue.

The Master mind behind Sesame Workshop

The shows format called for the humans to be intermi-ed with the segments ofanimation, liveaction shorts and !uppets. These segments were created to be likecommercial /uick, catchy and memorable and made the learning e-perience muchmore like fun. The format became a model for what is known today as education andentertainment based programming. "oan 0anz 1ooney who was a successfuleducational television producer, thought to use the television as an educational

purpose for preschool children. 2or this reason 1arnegie 1orporation, an Americanfoundation studied on this issue about feasibility of this show in %344. *ased on thestudy$s findings, 1ooney urged that an e-perimental television series devoted to

preschool children be established. 2or this reason the seventh month broadcastingperiod has been decided and an agreement was signed between the 1arnegie

2oundation and 2ord 2oundation also with the 5.S. 6ffice of )ducation for 78 millionwhich was raised from government and private source.

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The history behind Sesame Workshop

Sesame Street is produced in the 5nited States by the nonprofit organization SesameWorkshop, formerly known as the 1hildrens Television Workshop 91TW:, founded

by "oan 0anz 1ooney and alph ogers.After five tests show, the Sesame Streetlaunched on air in ovember %343 on stations of the


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Three Financial Goals of Sesame Workshop

Sesame Street is one of the most highly regarded educational shows for children in theworld. >o other television series has matched its level of international recognition andsuccess. Sesame workshop has three goals and they are

To assemble public and private funding partnerships to support educationalinitiatives.

To support educational activities with self generated revenues.

To establishing underlying financial stability by maintaining an investmentportfolio to cover operating deficiencies when necessary and to ensure the long

term financial viability of Sesame Street.

Sesame street ! pack of "#$# segments

Sesame Street is produced in the 5nited States by the nonprofit organization SesameWorkshop, formerly known as the 1hildrens Television Workshop.At first time theSesame Street broadcasted in only in 5nited States. Studio, animation, lives actionfrom outside the studio, and puppet scenes these are the main four categories bywhich the Sesame Street based on the broadcasting.*ig *ird, )lmo, and 6scar the0rouch were very popular and these were main categories of puppet were entrained

children in %?' hour based episodes where these episodes were divided into ?' B C'segments.)ach show closed with a %&minute segment called )lmo$s World. !uppetcharacter introduced that was made by "im #enson who was the great puppet makeron that time and the puppets whose were made by him were in high demand on thattime. "oining of "im #enson brought great fortune for Sesame Workshop becausedemand of his puppet brought very popularity of Sesame Street. !oreover his puppetsmade us viable in the marketplace.

!wards %eceived by Sesame Workshop

After gettingpositive influence, Sesame Street is one of the most highly regardededucational shows for children in the world. >o other television series has matched itslevel of international recognition and success. Sesame Street make significantlygreater gains than nonviewers in most tested areas of the series$ curriculum. Studiesshow thatthe show made a significant and lasting contribution to preschoolers$cognitive and social development. +t also shows that children from both middleandlowincome backgrounds gains more from its programs. 2ollowing its debut, SesameStreet won numerous awards in the 5nited States and other countries. The originalseries has been televised in %(' countries, and more than ?' international versionshave been produced, not including dubbed versions. The series has received D4 )mmyAwards,more than any other television series. Sesame Street won numerous awards

in the 5nited States and also other countries.

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Sesame Street on way of Globaliation

Sesame Street is known for its multicultural element and is inclusive in its casting,incorporating roles for disabled people, young people, and senior citizens. Aftergetting too much respond or gaining popularity the show broadcasted worldwide. +t

premiered on >ovember %', %343, on the >ational )ducational Television network,and the following year it was moved to >)Ts replacement, the ew Eealand, Australiaand other )nglish spoken countries. *ut slightly modified in #ebrew was broadcastedin +srael. +n "apan it was firstly broadcasted in )nglish like 1aribbean, due to theirsecond language but dubbed version was broadcasted after first season of

broadcasting. The Sesame Street was broadcasted in different country in differentlanguages and focused on particular population for e-ample in 1anada mainly

focused on bilingualism and in >ew Eealand focused on local !aori population. +n0erman the Sesame Street was dubbed in 0ermanlanguages. 2ew segments wereenlisted into national educational curriculum such as in 0erman.

'icensing (olicies of Sesame Workshop

Though they are saying that this is notforprofit organization but real incrementalcosts for rebroadcasting were for duplicating tapes and residuals for actors andmusicians so it was really profitable business. +ncreasing demand outside Americamade Sesame Street$s licensing abroad. 2or this reason they develop some policies. +n

late %343, 1hildren$s Television Workshop created an international division chargedwith the responsibility of overseeing Sesame Street$s licensing abroad. These are B

All non 5SA versions of sesame street must be commercialfree

1hanges to the series must meet the highest production standards.

All non5.S. versions of Sesame Streetmust reflect the values and traditions of

the host country$s culture

Any proposed changes to the series must be approved, initiated, and supervised by

a local committee of educators working with 1hildren$s Television Workshop.

Success in Me)ican Market

6ut side in 5nited States the Sesame Workshop broadcasted in !e-ico where %?'half hour episodes are dubbed in Spanish. #ere half were produced in 5S and halfwere produced in !e-ico for !e-ican market. The name became ew music wasrecorded, and writers and producers were hired from !e-ico and other FatinAmerican countries.Two new puppet characters were created e-clusively for theseries. To avoid duplicating the look of the American series, a distinctive FatinAmericanlooking set was designed around a neighborhood s/uare. Gero-

1orporation was helped to introduce in the Fatin American also the helped financially.

Sesame Street on %adio for the first time

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5nited States Agency for +nternational Hevelopment 95SA+H: and the South African

Hepartment was introduced Talakani Sesame presented by Sesame Workshop for ruraland urban children in multilingual for their diverse language. +t also introduced in theradio which was the first time of the Sesame Street history. This program was plannedfor the rural and urban children. 5SA+H also introduced Alam Simsim for )gyptiantelevision as a daily series. This program was sponsored by the top food company of!iddle )ast Americana.

The *o(roduction Model

Local Culture

As a result of positive influence of Sesame Street was one of the most highly regardededucational shows for children in the world. The Sesame Street worked on variouscountries with their local producer, local adviser and local broadcaster forimplementation of local goal. 2or this reason they brought ('?' people in >ew Iorkfor training to write the best /uality story. Sesame Workshop also constructed puppetsfor local productions that reflected local cultures and customs such as bear in 0erman,

porcupine in +srael, parrot in !e-ico, Euluspeaking meerkat called !oshe in SouthAfrica. )ach segment was focused on locality, like language, street scenes weretotally local production and half of the live action was locally produce and other halfwas produced in the Sesame Workshop. !uppet segments were totally created in the

Sesame Workshop such as *ert J )rnie and 1ookie !onster, were drawn fromSesame Workshop material and dubbed.

Variation- A result of broadcast in contractual agreement

Same language using different countries had the right to broadcast same SesameStreet like etherlands did the same in places like Aruba and 1aribbean where Hutch wasspoken.


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Sesame Street in *hina and %ussia !n +ntry to+ducational Floor

Sesame Street had made introduction in the communist world like china. ThereSesame workshop had different plan. Sesame Workshop was arranged various threeday seminars and other program for discussing education and children program inchina with the help of four universities.The seminars were sponsored by universitiesand their departments of education. All broadcasters tried to connect with SesameWorkshop but only Shanghai Television, which broadcast to about %'' million people,had the right to broadcast Sesame Street. The contract, negotiated over a year,included a provision for syndication throughout 1hina, which at the time was adifficult process. Sesame Workshop got 7& million for co production and 0eneral)lectric being sponsored.

Sesame workshop looked forward on ussia. ussia is a country that stretches over avast e-panse of )urope and Asia, where the Sesame Workshop faced their mainhuddles. 5litsa Sezam, Sesame Workshop$s ussian coproduction was broadcasted in%334 after five year making by the help of 5SA+H program for democratization,

business principles, and education and sponsorship by >estlK. The series includesregionally diverse original material produced and filmed in ussia, as well assegments from the Sesame Street +nternational Fibrary. They face difficulties for

broadcasting such as transportation, communications, office accommodations, andelectricity.

Sesame Workshop in ,##- !ll rounder

Sesame Street is known for its multicultural element because they are involved inmultiple activities. +n %348 Sesame Workshop addresses childrens developmentalneeds in %(' countries worldwide. With efforts e-tending far beyond Sesame Street,the Workshop uses four distribution channels. +n %338 a =oint venture of cable channel

>ickelodeon, the Sesame Workshop launched first commercialfree (Chour. Alsothey were involved in various products like television, film, and video includedtelevision programming, feature films, home video, and various products on cassetteand 1H. +n %333 Hragon Tales that was the creation of Sesame Workshop had a huge

success in the 5nited States and markets such as Australia, 5.L., and #ong Longeven that dubbed into *razil and !e-ico. Sesame Workshop involved in variouscurriculum like they published %&' Sesame Streetbased books for more than %(million children and adult. Also educational products which are related with theSesame Street are introduced in the market.

Sesame Workshop in Electronic Media

Sesame Workshop is actively e-panding it +nternet presence through Sesanestreet.comand developing new Webbased content for internet e-cess much of it tied totelevision shows. Sesame Workshop$s +nteractive Technology 0roup developed 1H

6!s, video games, and HMH content. Sesame Street 1H6!s are among thebestselling educational titles.

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Sesame Workshops promotion

Sesame Street has successfully e-panded in more than %&' countries. +nternational

product licensing tended to follow the introduction of the television show. As acountry became more familiar with Sesame Street, it then becomes possible tointroduce products based on Sesame Street. They also meet the /uality of the productas well as standard. Sesame workshop$s characters themselves could not be used inthe advertisements to sell products. Sesame Workshop$s licensing agreementsstipulated that products could not be advertised on the television if the audience wasmore than %' preschoolers.

Licensing with Sesame Workshop

There were more than C'' licenses. Sesame Workshop licensed its brands throughoutthe world were selling their products. Sesame Workshop$s licensing agreementsstipulated that products could not be advertised on the television if the audience wasmore than %' preschoolers. The revenue generated from it used for the support ofthe educational programs. There were thousands of companies, which had the

partnership with Sesame Workshop like !attel, Sony, Lmart, Leebler, and


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The 0nternational /rganiation For Television

Their business also famous internationally though this is not for profit organizationbut their purpose is to educate the children, help the children. 2or the )nglishlanguage show, coproduction and product licensing they separated the internationalsales force. Hifferent sales force creating a problem and that$s why to get rid of this

problem the international television sales group was created. +t is re/uired becausedifferent sales force targeting the same broadcasters. After that Sesame Workshopclassified the market and customer asN

)-isting customers.

*roadcaster that shown an interest in television Sesame Street. 2or these potential

customers, in the discussion the ma=or element was financial support for theissues. &8 million dollar was necessary for a coproduction of %?' hrs of

programming which can e used for (? yrs and the e-ample of


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-112 %eorganiation on the way of %estructure

Some countries coproduce their own uni/ue versions of Sesame Street, in which thecharacters and segments represent their countrys cultures. 6ther countries simply aira dubbed version of Sesame Street, or a dubbed version of 6pen Sesame. *ecause ofthe restructuring of international operation in %334, a new structure was started by agroup president for the products and international television. A group vice presidentfor international and two regional vice president positions were created one for FatinAmerica and Asia and one for )urope, Africa and the !iddle )ast respectively. Theyalso created a position of a vice president for coproduction also. 2or all SesameWorkshop, each regional vice president is responsible for profit and return oninvestment. Another thing that there are regional directors who is responsible fortelevision and licensing. The reorganization resulted in modification of markets and

countries. 2or e-ampleN >on 5SA markets. 2or the >on 5S market they breakdownthe broadcasting plan as follows

Farge potential markets with strong recognition 5.L, 0ermany, and "apan.#igh potential markets generating more revenue !e-ico, china!aintenance markets with limited growth Australia, 1anada, >etherlands.Social impact markets B +srael, South Africa

%esult through %estructure

Sometimes the organization needs to reform their style to conduct their business. *y

doing this they can understand their position and they can take a vital decision for thebright future of the company. When Sesame reformed the organization internationallythey took a decision and that was they reduce the managerial time which they spenton small market and they decided to give more focus on the larger markets with high

potential. They observed that selling the Sesame Street in )nglish version or doing acoproduction they need the same amount of effort regardless of market size. !anysmaller markets who were the oldest customer of Sesame Workshop$s raised the issuewhether relationship with smaller customers should be scale back. Within thisorganization there answer was no but there was an agreement that markets had to berecognized. At the same time, some market entry decision did not fit into this model.2or e-ampleN when ussia get success after launch the product 5SA+H asked SesameWorkshop to consider )gypt which was not consider as a high potential market.

*hanges in -111

There are some changes occurred in %333. 6ne of them is the group presidents forproducts and international was resigned but the position was not filled up in mid(''%. They also created a new pro=ect management division to manage pro=ects inSouth Africa, )gypt and +srael. This division was consisted of four directors andfocused on educational outreach, fundraising and government contact issues and hadlimited product licensing opportunities. !artha Man 0elder was the group head andconsisted of %4 people who were concentrating on developing markets with product

license and television business. 6n the other hand they feel proud to say that howefficiently they can reach to the most kids.

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/ther Target Markets

+n )urope, 2rance and +taly are the two countries which are also considered greatpotential markets by the Sesame Workshop. +n the %3D's, the Sesame had broadcastedversions of the series on the air back in those two countries but it did not work verywell and even did not leave them with a strong relationship. That is why these twocountries were considered as difficult markets for American programming. *ut thosecountries are really important for them as they are both great potential markets.ecently, Sesame has signed a deal in +taly to broadcast Sesame )nglish and )lmo$sWorld on ai and aiSat.

+n Fatin America, there is another market e-ist that is considered to have greatpotential by the Sesame Workshop. And it is *razil. This organization always seeks

for finding the growth potential countries to increase its sales as well as profits. *uttheir #ead of 0lobal Histribution focuses more on understanding the marketssituation rather than on actual selling, because Sesame is a small firm with limitedresources and unlimited dreams. With this limited resources they cannot =ust take thesame people and throw them against multiple pro=ects which also re/uires an intenseamount of work. Additionally, finding out ways to enter into a new market is verytimeconsuming process as every market is different. So though *razil was consideredto be potential for them they could not focus on that market.

0nternational Strategies

The Sesame Workshop takes their decisions for developing the children$sprogramming differently, which is their uni/ue strategy for attracting people. Thereare some huge markets for coproduction opportunities like *razil and +ndia. *ut it isdifficult for them to allocate their limited resources in different markets. They are stilltrying to figure out what they actually want financially and their business to look like.+t is not possible to do coproductions in every market. *ut they have the freedom toenter into new market and to make breakeven as they are nonprofitable organization.They want to focus on larger markets rather than focusing on smaller markets. Theywant to do only uni/ue pro=ects for smaller markets, like they are recently doing aconflict resolution series for 1yprus by using live action with an organization knownas Search for 1ommon 0round. *ut there they could not make profit though it is

consistent with their mission.

! %oad Map of 0nvestment *riteria

2or establishing specific investment criteria, as the basis of guiding their newinternational investments, the organization had a bad time. According to onee-ecutive, they could not figure out which one is important and how to weight thecriteria, though they tried to establish criteria like mission, cash flow, financial returnand management time involved for making a consistent list. They tried to make theirdecisions consistently where they needed a consistent breakeven for operating the

regular activities. After some years they understood that at first they need to focus onthe overall property and figure out how they can utilize them.

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They have to make investment decision according to their available financialresources. The reason behind the success of one show can be considered as for the

high/uality production or for the characters or for the simple story lines, which isvery hard to test. When they have to find new revenue sources they also have toconsider all the e-penses associated with that source, because every wrong decisioncan cost them a lot as they are suffering from deficit for long time age.

Broadcasting *ompetition

+n %3D's and %38's when Sesame Workshop was internationalized for the first time,television was dominated by the


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/pportunities along with some challenges

Sesame Workshop$s intention of showing their program is to educate the children.2rom many countries, they have realized that one of its popular shows Sesame Streetthat has been shown in )nglish is primarily watched as the vehicle for learning)nglish. *ut that was not their main intention. Some countries, like "apan, haveviewed Sesame Street a main way to learn )nglish. Sesame Workshop can utilize this

phenomenon as a way to its high growth as in non )nglish speaking countries there isa demand for it. And this is a very interesting way to learn )nglish from thechildhood.Anotheropportunity is by providing license in different countries, Sesame Workshopcan sell its Sesame Street characters on products like clothing, purses, Tshirts, keys

chains, earrings etc. and these products will soon become very popular among thechildren and girls. These Sesame Street products give children and grownups alikemore ways to laugh and learn with their Sesame Street friends. +t is already doing thisto some e-tent. +t can increase the selling of these goods more e-tensively worldwide.When people purchase Sesame Workshop products, they are also supporting theeducation of children around the world. *ut the challenge is people are not consistentwith brands. So the Sesame must work hard to make sure the brand does not erode tothe point.

+n some markets they are severely limited by being with a public broadcaster in termsof television commercials. They can sell toy but cannot promote them on television.So their goal is to find such ways to sustain with their licensing activities, so that itkeeps them apart from other licensees or licensors. Their television competitors often

pay for their television programming to feed the licensing program. So the SesameWorkshop had to enter into the international market with local shows by taking intoaccount the local needs and cultural differences among countries.

Final Words555566Sesame Workshop, formerly known as the 1hildrens Television Workshop or 1TW, isa nonprofit organization behind the production of several educational childrens

programs that have run on public broadcasting around the world including ow its overe-tension of their business has becomeone of their challenges, though some of their shows, like Sesame Street is a very

powerful series and a lot of people want to work with Sesame Workshop. So theywant to find some effective way so that they can sustain with their uni/ue mission andfinancial growth.

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Theme

esame Workshop is a notfor profit organization committed to the principle thatall children deserve a chance to learn and grow and produces highly acclaimedchildren$s educational show. *eing the producer of children educational show,

success of Sesame Workshop depends on how uni/ue and innovative it is inproducing the program and how well it maintain its sustainable growth being a smallfirm. *ut Sesame workshop has e-tended so much that it is not able to sustain it as ithas lack of resources to respond to everybody. Also it is running with a financialdeficit because its commercialfree philosophy and lack of new products is notallowing them to compete with the forprofit organization and generating money tofulfill its mission of reinvesting revenue in educational activities.

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Main 0ssue

eing a small notforprofit organization with unlimited dreams what shouldSesame Workshop do in facing the challenges of allocating scarce resourcesamong multiple international markets, evaluating high or low potential

markets, handling markets with limited financial potential, especially for licensing,and at the same time making money and fulfilling the mission of educating childrenO

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SW/T

W6T analysis a strategic planning tool used to evaluate the Strengths,Weaknesses, 6pportunities, and Threats involved in a pro=ect or in a businessventure. +t involves specifying the ob=ective of the business venture or pro=ect

and identifying the internal and e-ternal factors that are favorable and unfavorable toachieving that ob=ective.+dentification of SW6T is essential because subse/uent stepsin the process of planning for achievement of the selected ob=ective may be derivedfrom the SW6T. The aim of any SW6T analysis is to identify the key internal ande-ternal factors that are important to achieving the ob=ective. SW6T analysis groupskey pieces of information into two main categoriesN

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Internal factorsB Thestrengths and weaknessesinternal to the organization.

External factorsB The opportunitiesand threatspresented by the e-ternalenvironment.

Strengths:A firms strengths are its resources and capabilities that can be used as abasis for developing a competitive advantage.

Weaknesses: 2ailures, defeats, loses, and inability to match up with the dynamicsituation of growth the change.

Opportunities:


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ST%+4GT7S

Sesame Workshop has a commercial-free 24-hour cable televisionchannel and online service dedicated to educating and entertainingchildren without an" commercial break#

Sesame Workshop is involved in multiple activities. Television, film, and videoincluded television programming, feature films, home video, and various products oncassette and 1H. +t has a television channel and online service dedicated to educatingand entertaining children called >oggin. This is a =oint venture with >ickleodeon.This is launched in %338 as the first commercialfree (Chour cable television channeland online service. #ere Sesame Workshop broadcasts its programs without any

commercial breaks.

$ustification%Hue to own its own channel, Sesame Workshop can globally own theshows and own the airtime. +t means it can own the rights and can keep it on the airand can slowly develop an audience. 2or these strategic reasons it launched >ogginon the >ickleodeon channel. This helps Sesame Workshop a lot to fulfill its goal ofspreading its educational programs among its target audience. As a result it can

become more fle-ible and creative partner to the broadcasters. +t can become moreinnovative in developing funding sources for coproduction and can get better /ualityshows. So its commercialfree (Chour cable television channel and online servicededicated to educating and entertaining children has become strength for them.

Sesame Workshop has Sesame Streettheme parks in different locationswhich is an interacti!e pla" e&perience with rides and attractions thatbring this e&traordinar" childrens tele!ision show to life#

Sesame Workshop has Sesame Street theme parks in four different locations. SesameStreet Theme park is an interactive play e-perience for families with children ages (Dand has been named one of the top four theme parks in the >ortheast by 2amily 2un!agazine. The park, officially named Sesame


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Sesame Workshop categori'ed markets and customers in four differentsegments which lead to better ser!ing of customers needs and wants(

) opportunities for growth#

Sesame Workshop has categorized its markets and customers into four differentsegments. Those are current customers, potential customers that is broadcasters whohas shown real interest in televising Sesame Street, countries that had been in co

production and had stopped producing and countries that Sesame Workshop like toenter but few establishment relationship e-ists. +t means Sesame Workshop issegmenting the whole markets into these categories then it targets its market segmentand provides its products to them.

$ustification%A segmentorientated approach generally offers a range of advantages

for both Sesame Workshop and its customers. This categorization helps to separateone customers needs and wants from others. +t is possible to satisfy a variety ofcustomer needs with a limited product range by using different forms, packages,incentives and promotional activities.Itis often difficult to increase prices for thewhole market. +t is possible to develop premium segments in which customers accepta higher price level. As a result it can increase the profits. +t also allows SesameWorkshop to create its own Pniche products$ and thus attract additional customergroups which will ensure high growth, sustainable customer relationships, and highermarket shares.

Sesame Workshop sells Sesame Street characters on products likeclothing( purses( *-shirts( ke"s chains( earrings etc# ) there is a highdemand of these products among the children and girls#

The Sesame Street characters like Abby, *ert, *ig *ird, )lmo etc. are very popularamong the girls and the children. Sesame Street is broadcast to educate the childrenand families. Along with this the popularity of the Sesame Street characters increaseda lot among the children and girls. Seeing this popularity Sesame Workshop startsselling Sesame Street characters on products like clothing, purses, Tshirts, keyschains, earrings etc. and these products soon become very popular among the children

and girls. These Sesame Street products give children and grownups alike more waysto laugh and learn with their Sesame Street friends.

$ustification% Sesame Workshop has complete control over the rights of all SesameStreet characters. *eing the most favorite children$s television series, SesameWorkshop offers, Sesame Street merchandise, Sesame Street toys and Sesame Street

bedding feature all its favorite characters, including )lmo and *ig *ird, and it is afantastic for any Sesame Street fan. Sesame Workshop has a huge sell of these

products. As a result it increases the revenue of Sesame Workshop and it reinvests itsrevenues from these in educational activities. That means every time people buy oneof its products, they are not =ust doing something good for their own child, they are

also helping children around the world to reach their highest potential.

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Sesame Workshop pro!ides customi'ed products to the children ofdifferent age which helps it to best meet the demand of and wants of

different customers#

Sesame Workshop is a notforprofit organization whose main mission is to educatechildren and their families by showing educational programs worldwide. The needsand demands of different children around the world are different. Their language andcultures are different. Sesame Workshop has to produce programs which can addressall these issues. And they are doing so. Also it is producing different programs fordifferent age of children. 6ne of its animated series called Sagwa is targeted tochildren age & to 8 years old. Tiny planets, a multimedia learning system targeted tothe children? to & years old launched online and on television.

$ustification% 1ustomization offers a range of advantages for both SesameWorkshop and its customers. +t also helps to separate one customers needs and wantsfrom others. +t is possible to satisfy a variety of customer needs with a limited productrange by using different forms, packages, incentives and promotional activities.Itisoften difficult to increase prices for the whole market. +t is possible to develop

premium segments in which customers accept a higher price level. As a result it canincrease the profits. +t also allows Sesame Workshop to create its own Pniche

products$ and thus attract additional customer groups which will ensure high growth,sustainable customer relationships, and higher market shares

Sesame Workshop is recogni'ed for their e&cellent brand image# *he"ha!e successfull" created a brand image worldwide# *heir brand imagecan be strength for them#

Sesame Workshop, formerly known as the 1hildrens Television Workshop or 1TW, isa nonprofit organization behind the production of several educational childrens

programs that have run on public broadcasting around the world including otonly that, they have successfully retain their image in the market. That$s why Sesamewas able to e-pand so many countries in the world and they are still e-panding. +ne-panding other countries their brand image have played a very significant role. Sotheir brand image is one of the strengths for them. Sesame Workshop is committed tothe principle that all children deserve a chance to learn and grow; to be prepared forschool; to better understand the world and each other; to think, dream and discover; to

reach their highest potential. Sesame workshop is the producer of Sesame Streetwhich is the highly acclaimed children$s educational show.

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Sesame has segmented the market locall" for their products in outsidecountries while e&panding#

+n terms of e-pansion, Sesame Workshop has segmented the market regionally. +n1anada and >ew Eealand, local segment also were produced and inserted into theshow. +n 1anada, the segmentation focused in bilingualism and in >ew Eealand, thefocus was on the heritage of the local !aori population. +n this way they concentratedon the culture of the countries and segmented the market according to the culture ofthose countries. Sesame workshop also constructed puppets for local productions thatreflected local culture and customs. 2or e-ample in +srael, the main body puppet wasa porcupine represented the +srael culture, prickly on the outside and soft on theinside. +n 0ermany, the puppet was a bear and in !e-ico, a parrot. +n South Africa,

puppets included a Eulu speaking meerkat called !oshe, a chosen in part becausemale and female meerkats share the task of looking after their young. +n these waysthey have highlighted the culture of the countries.

$ustification% +t is a huge strength for them. As they retain the culture of thecountries it can influence the people of the countries psychologically, the audiencecan attract the audience very well for which the demand for their show will go up. Asa result it will increase their popularity as well as their demand. +t is strength for themto survive in the market with the competitors. *y segmenting the market locallySesame Workshop can separate its target customers and can best meet their needs andwants. This can bring a huge success for Sesame Workshop.

Sesame workshop belie!ed that good writing is the ke" to their successin running their show effecti!el" and the" trained their emplo"ees !er"well with this regard#

Their show is based on the scripts that are being told by the puppets and actedaccordingly. That$s Sesame workshop believed that a good writing is the key tosuccess for which they collaborated e-tensively with the coproducers of all

production issues; writers, musicians, animations, sets etc. *esides, about (& to ?'people would be brought to >ew Iork for training on writing educational andentertaining segments for the show. Sesame workshop also constructed puppets forlocal productions that reflected local culture and customs. 2or e-ample in +srael, the

main body puppet was a porcupine represented the +srael culture, prickly on theoutside and soft on the inside. +n 0ermany, the puppet was a bear and in !e-ico, a

parrot. They give emphasize on the writing, which is the base of theses sorts of shows.

$ustification% As it is a program for the preschool children and the motive is tomake them educated and teach them about some basic things and on their culture.Sesame workshop also constructed puppets for local productions that reflected localculture and customs. 2or e-ample in +srael, the main body puppet was a porcupinerepresented the +srael culture, prickly on the outside and soft on the inside. The scriptof the show has to be very interesting and easily understood. That$s why the writinghas to be very improved and Sesame workshop understands it very well and there aretraining programs for the employees as well. +t helps to improve the /uality of the

programs, which increases demand of their program.

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Sesame workshop maintains their work and takes great care to maintainthe show of each region and the" a!oid duplicit" in looks of the show in

for different regions as well#

+n %3D?, the international evolution continued with the introduction of the new seriesof %?' halfhour episodes entirely in Spanish for the !e-ican market. #alf thematerial came from the 5.S. series and the other half was produced in !e-ico. Toavoid duplicating the look of the American series, a distinctive Fatin American setwas designed around a neighborhood s/uare. >ew music was recorded and writersand producers were hired from !e-ico and other Fatin American countries. Two new

puppet characters were created e-clusively for the series and the financial supportcame from several Fatin American sources and agrant from Gero- 1orporation. +nthis way they differentiate the look of the show and the set of the show produced for

one country to others.

$ustification% The organization takes great care of the /uality and givestremendous effort to differentiate its own shows in different countries. To avoidduplicating the look of the American series, a distinctive Fatin American set wasdesigned around a neighborhood s/uare. >ew music was recorded and writers and

producers were hired from !e-ico and other Fatin American countries. Two newpuppet characters were created e-clusively for the series and the financial supportcame from several Fatin American sources and a grant from Gero- 1orporation.They take great care to retain legitimacy of their shows, for which they can be able toconcentrate on the different cultures and customs of different countries.

Since +,.( Sesame has maintained and impro!ed the /ualit" of the0rograms and their high /ualit" program is one of their biggeststrengths for them#

After producing the show in 5.S. there was a huge demand for the show in othercountries as well but the countries re/uested to alter the linguistic content for foreignaudience. +n late %343, 1hildren$s Television workshop created an +nternationaldivision charged with the responsibilities of overseeing Sesame Streetslicensing. 6neof the main things in the licensing policies was the changes to the series must meet thehighest production standards. #ere they give importance to the /uality of their

program. Sesame workshop has maintained and improved the /uality of theirprograms. They take great care of the /uality of their show for different countries.They put emphasis on the culture of different countries on their shows. +t constructed

puppets for local productions that reflected local culture and customs.

$ustification% The /uality of their programs plays a very important role for SesameWorkshop to e-ist in the market successfully. #ere they give importance to the /ualityof their program. Sesame workshop has maintained and improved the /uality of their

programs. They take great care of the /uality of their show for different countries.They put emphasis on the culture of different countries on the shows produced fordifferent regions. Since %348, Sesame has maintained and improved the /uality of the


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Sesame gi!es emphasis to the culture of the countr" where the" e&pandand the" produce their show according to the culture of that countr"(

which is a !er" positi!e feature for the organi'ation that increases theirdemand#

While e-pansion, Sesame has segmented the market locally. +n 1anada and >ewEealand, local segment also were produced and inserted into the show. +n 1anada, thesegmentation focused in bilingualism and in >ew Eealand, the focus was on theheritage of the local !aori population. +n this way they concentrated on the culture ofthe countries and segmented the market according to the culture of those countries.Sesame workshop also constructed puppets for local productions that reflected localculture and customs. 2or e-ample in +srael, the main body puppet was a porcupinerepresented the +srael culture, prickly on the outside and soft on the inside. +n0ermany, the puppet was a bear and in !e-ico, a parrot. +n South Africa, puppets

included a Eulu speaking meerkat called !oshe, a chosen in part because male andfemale meerkats share the task of looking after their young. +n these ways they havehighlighted the culture of the countries. +t is an enormous strength for them.

$ustification% As they retain the culture of the countries it can influence the peopleof the countries psychologically, the audience can attract the audience very well forwhich the demand for their show will go up. They emphasize on the cultures of thecountries where they e-pand. 2or e-ample +srael, the main body puppet was a

porcupine represented the +srael culture, prickly on the outside and soft on the inside.+n 0ermany, the puppet was a bear and in !e-ico, a parrot. As a result it will

increase their popularity as well as their demand. +t is strength for them to survive inthe market with the competitors.

Sesame workshop was acti!el" e&panded its 1nternet presence and the"ha!e successfull" de!eloped their own website#

Sesame Workshop, formerly known as the 1hildrens Television Workshop or 1TW, isa nonprofit organization behind the production of several educational childrens

programs that have run on public broadcasting around the world including


23/71

Sesame workshop has e&panded in man" areas and their maincomponent of e&pansion is their tremendous market research that is

strength for them#

Sesame Workshop was founded in %348. The Workshop is committed to the principlethat all children deserve a chance to learn and grow, to be prepared for school.)ventually they started e-panding to man other countries. They have alreadye-panded in 1anada, +taly, Lorea, Arab Word, Australia, +ndonesia and many othercountries in the world, as its product demanded very high and it has been possible

because of their brand image in the market. Sesame Workshop has successfullyentered in around %&' countries in the world. They concentrated on the culture of thecountries and segmented the market according to the culture of those countries. +nevery country where they e-panded they emphasize on the culture of that country

very well. To know about the culture and customs of different nations they had to dolot of research on those countries. 2or e-ample in +srael, the main body puppet was a

porcupine represented the +srael culture, prickly on the outside and soft on the inside.+n 0ermany, the puppet was a bear and in !e-ico, a parrot. To know about all theseinformation they had to do a lot of research and that is a strength for them in knowingthe culture of other countries.

$ustification% 2or their business purpose, they had to know about the differentculture and customs of the countries for which an efficient research work must have to

be done and Sesame Workshop is doing their research very well. Sesame Workshop

has successfully entered in around %&' countries in the world. They concentrated onthe culture of the countries and segmented the market according to the culture of thosecountries. +n every country where they e-panded they emphasize on the culture of thatcountry very well. To know about the culture and customs of different nations theyhad to do lot of research on those countries.

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W+!84+SS+S

Sesame Workshop is ha!ing a commercial-free philosoph"( which ma"deter its growth and can be a problem for them in finding the co-productions#

+n the past governmentowned channel were not allowed to interrupt programming foryoung children with commercials. As a result being the pioneer in telecasting children

program, Sesame Workshop could successfully implement its commercialfreephilosophy as the public broadcasters accepted it. *ut now there are lots ofcommercial channels and all want a commercial break. +t is becoming difficult to asksomebody to show an entire hour commercialfree. Sesame Workshop$s one of the

main philosophy is broadcasting its children$s programs without any commercialbreak. 2or this philosophy many commercial broadcasters are not interested to telecastSesame Workshop$s programs.

$ustification% Hue to this commercialfree philosophy, Sesame Workshop is notbeing able to show its programs in different commercial channel as commercialchannels are not interested to broadcast programs without any commercial break. SoSesame workshop can only broadcast its programs on its own channel but it willreduce its capacity to grow more. +t is also seen from an e-periment that the childrencan make the distinction between the show and the commercial. So there will be noharm if commercials breaks are allowed in a children educational program. So if

Sesame Workshop does not change it commercialfree philosophy it will not getcommercial broadcasters to show its children programs. As a result it will not be ableto show its programs to the audience. So it can be a serious weakness for thecompany.

*he production deals were changing( which meant an increasingl"comple& network of partners( customers( sponsors and otherrelationships#

To make the coproduction model work, they need first run revenues, syndication ifpossible, international sales, and international product sales. The old model was thatbroadcasters paid for everything including management fees and some profit for theorganization. A few years ago they had started going into markets where there wasgovernment money available and where they had to raise sponsorship money. The

broadcaster was not paying the whole thing. 5ltimately, Sesame Workshop was takingthe risk if sufficient money could not be raised. >ow they have some broadcaster whoused to pay for the whole coproduction, but now they will no longer pay. As SesameWorkshop is a small organization, this comple- structure can affect them as well. Thatcan be a weakness for them.

$ustification% As Sesame Workshop is a small organization, the new corporate

model can affect them largely in doing their business. +t can be comple- for them ininternational sales and on the sponsorships and to the customers as well.

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Sesame Workshop is ha!ing a surplus deficit in all operational "earse&cept +,,.( which can affect them in doing business in long run#

*eing a notforprofit organization, Sesame workshop$s mission is to educationchildren and their families globally. Though profit is not its main goal, creating afinancially viable and growing organization is a necessity because it has to competewith others forprofit organization. *ut it is having a surplus deficit in all operationalyears e-cept %338. Sesame Workshop is a small firm but it has taken an initiative tolaunch various pro=ects but it does not have enough resources for that. As a resultfinancial deficit occurs. That can affect their business in the long run. They can begoing out of resources in doing any production.

$ustification% 6rganization were facing deficit from last some years and if thisfeature continues, it can affect them dangerously in the long run. As they have had

e-panded largely in many regions, their deficits can lead them towards disaster infuture. Sesame Workshop is a small firm but it has taken an initiative to launchvarious pro=ects but it does not have enough resources for that. As a result financialdeficit occurs. That can affect their business in the long run. They can be going out ofresources in doing any production.

Sesame Workshop is facing lack of new programs( which can be !er"tough for them to sur!i!e with other competitors in the market#

2rom %348 Sesame Workshop has provided with high /uality educational programamong the audience. #owever, now they need new programs for their business. Theywere a one hit wonder that$s been wonderful worldwide. *ut they needed the followup success. >ow Sesame Workshop has lack of new programs. As the competition hasincreased and in very soon all its programs will be saturated means audience will nolonger wants Sesame Workshop$s previous shows which already viewed a lot. Worldis changing and demand and preference of the audience is changing. So noworganization cannot attract these audiences with old programs. Audience wants morenow programs.

$ustification%As competition has increased and the windows for the show are

shrinking, the audience we are going after is also shrinking. So with the number ofprograms those are available to the shrinking audience continuing to increase. So ifSesame Workshop$s program loses popularity, then it will be hard for them to come

back. >ow there are more channels and options for programming and competition hasincreased. Hifferent organizations are coming up with their uni/ue products. So forthe follow up success of Sesame workshop it needs new programs. 6therwise itsaudience will shift and no longer can compete with the competitors who have new

products with uni/ue features. So not having new programs for the audience is aserious weakness for the company. World is changing and demand and preference ofthe audience is changing. So now organization cannot attract these audiences with old

programs. Audience wants more now programs.

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*he" mainl" do the puppet show for the pre school children and the"ha!e segmented it with man" t"pes but there is not an" king of

ad!antage for the disable children as a sign language#

Sesame Workshop was the producer of Sesame Street, the highly acclaimed children$seducational show. 2or the show they use street scenes, animated and live actions and

puppet scenes. They produce their show in a very precise way. They paid attention onthe smallest things in making and producing the show. They even made shows foroutside countries according to the culture of that region. +s spite of giving the fullattention, they have missed an important part for the preschool children. They don$thave any program for the disabled children. Those children who cannot hear or seecant understand anything from their program. They didn$t produce any programs with

the sign language. So it can be a weakness for them.

$ustification% Sesame Workshop has only emphasized on the children$s properlearning. They give importance to all segments and all groups of children. #oweverthey missed the disabled or deaf children. +f they would have provided any signlanguage besides the program then it wont be a problem for those children. Since theydon$t have such programs, it is a weakness for them for not providing the propereducation to all groups of children.

*o decrease in general and administrati!e costs Sesame Workshop has

reduced its corporate staff( which can be a weakness for them in doingbusiness#

*eing a notforprofit organization, Sesame workshop$s mission is to educationchildren and their families globally. Though profit is not its main goal, creating afinancially viable and growing organization is a necessity because it has to competewith others forprofit organization. *ut it is having a surplus deficit in all operationalyears e-cept %338. Sesame Workshop is a small firm but it has taken a initiative tolaunch various pro=ect but it does not have enough resources for that. As a resultfinancial deficit occurs. To overcome this deficit, Sesame Workshop has reduced itscorporate staffs that resulted in a decrease in general and administrative costs.

$ustification% Sesame Workshop has a very high growth rate. To sustain with thatgrowth rate it needs e-pert human resource because they are one who is behind thesuccess of Sesame Workshop. Also as it is e-panding in globally it re/uires more

people for successful e-pansion. So by reducing its employee Sesame workshop is notdoing any good for the organization e-cept losing its human resources, which is veryimportant for them. This is one of big misconception that reducing staff will bringoperating efficiency. +f Sesame Workshop continues to do so it will e-perience acontraction in its growth rate and instead of reducing cost it will e-perience that itsrevenue decreased a lot as there will not be enough employee to support thesustainable and viable growth rate.

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*he recruitment polic" and procedure of the compan" is !er" poor# *heretention of potential emplo"ees and problems in recruitment polic" can

be a problem for them in sur!i!ing the competitors#

Sesame Workshop doesn$t have any strategy for hiring new employees and retainingold ones. 6nes an employee is gone out of their company, it takes a lot more time tohire another employee on that place. +t portrays an uneven employee maintenance andrecruitment policy for the company. Another factor is that, they reduce the number ofemployees to decrease their cost. Sesame Workshop is a small firm but it has taken aninitiative to launch various pro=ects but it does not have enough resources for that. Asa result financial deficit occurs. To overcome this deficit, Sesame Workshop hasreduced its corporate staffs, which resulted in a decrease in general and administrativecosts.

$ustification% )mployees are the main keys to run a business properly. They are themain source of the success of any organization. To sustain with that growth rate itneeds e-pert human resource because they are one who is behind the success ofSesame Workshop. Also as it is e-panding in globally it re/uires more people forsuccessful e-pansion. So by reducing its employee Sesame workshop is not doing anygood for the organization e-cept losing its human resources, which is very importantfor them. This is one of big misconception that reducing staff will bring operatingefficiency.

Sesame Workshop is a not -for-profit organi'ation( their main concernhas to be educating the children where as( their main moti!e hasbecome earning profit in man" cases( which ma" ha!e a negati!e impactin the minds of the audience#

*eing a notforprofit organization, Sesame workshop$s mission has to educate thechildren and their families globally and they are working on it very properly.#owever, the profit is also another main motive for them. Though they are a not for

profit organization, their main motive has to be the proper education of the children.*ut in some cases they are lagged behind in serving their main ob=ective. They focus

mainly on their profit. They focus on those areas that are highly profitable than thoseof the small segments where the children need more of the proper guidance and

proper education. They are working well but this sort of motive can create a negativeimage of them in the minds of the customers, which will be bad for the company.

$ustification% Sesame workshop is serving their customers very well. !anypreschoolers are learning their A*1s and %(?s while watching Sesame Street. *uttheir main motive has become earning profit in many cases, which may have anegative impact in the minds of the audience. The negative image can affect thecompany in a broad way.

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/((/%T940T0+S

2eing a not-for-profit organi'ation( Sesame Workshop has the freedom) feasibility to go into new markets ) do co-production and break-e!en#

Fooking towards the future, the manager of international group sees manyopportunities for Sesame Workshop. +t is not feasible to do coproduction in everymarket. *ut due to being a notforprofit organization, Sesame Workshop has thefreedom to go into new markets and break even. Sesame Workshop currently helps

produce more than (' coproductions of Sesame Street around the globe, each tailoredto the cultural, social and political demands of their country$s viewers. Teaming upwith local directors and writers, Sesame Workshop producers work internationally to

bring the venerable television show to children around the world in their ownlanguages. The world according to Sesame Street profiled three of these co

productions those are *angladesh, Losovo, and South Africa

$ustification%1oproduction is all about working together to achieve a mission. +tstarts from the idea that pro=ects are successful only when the people being served areinvolved. )ach of Sesame Workshop$s international coproductions is carefullycrafted to meet the specific needs of the local children. 1hilddevelopment e-perts ineach country work with local directors, producers, and writers to translate the magicof Sesame Street in a way that captures the rich cultural flavors of each region. Theengaging live action, animation, and colorful characters create a world of fun for

young children and their families. Sesame Workshop can e-tend its coproduction toother countries to ensure its high growth and revenue which is most re/uired forSesame Workshop now.

Sesame Workshop can use its Sesame Street to target those nonEnglish speaking countries like $apan where this program is watchedprimaril" as a !ehicle for leaning English#

Sesame Street$s intention of showing Sesame Street is to educate the children. +nmany countries it saw that its Sesame Street shown in )nglish is primarily watched asthe vehicle for learning )nglish which was not Sesame Street intention. 1ountries

like "apan viewed Sesame Street a main way to learn )nglish. Sesame Workshop canutilize this phenomenon as a way to its high growth as there is a demand of it in non)nglish speaking countries. And this is a very interesting way to learn )nglish fromthe childhood. 2or this there is a demand of )nglish version of Sesame Street amongthe non)nglishspeaking countries.

$ustification%!any preschoolers is learning their A*1s and %(?s while watchingSesame Street. Along with this kids of all ages who come here from non)nglishspeaking countries also pick up )nglish basics from *ig *ird, *ert, )rnie, and thegang. And in "apan, teens are actually learning to speak )nglish by watching theshow. As a result, it can e-tend it )nglish Sesame Street to countries like 1hina,

Taiwan which will increase its market share and a way of teaching )nglishworldwide.

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29/71

Sesame Workshop can sells Sesame Street characters on products likeclothing( purses( *-shirts( ke"s chains( earrings etc# as man" children

and girls are fond of these characters#

*y providing license in different countries Sesame Workshop can sells its SesameStreet characters on products like clothing, purses, Tshirts, keys chains, earrings etc.and these products soon become very popular among the children and girls. TheseSesame Street products give children and grownups alike more ways to laugh andlearn with their Sesame Street friends. +t is already doing this to some e-tent. +t canincrease the selling of these goods more e-tensively worldwide.When people

purchase Sesame Workshop products, they are also supporting the education ofchildren around the world.

$ustification%*eing the most favorite children$s television series, SesameWorkshop offers, Sesame Street merchandise, Sesame Street toys and Sesame Streetbedding feature all its favorite characters, including )lmo and *ig *ird, and it is afantastic for any Sesame Street fan. Sesame Workshop has a huge sell of these

products. As a result it will increase the revenue of Sesame Workshop and it canreinvest its revenues from these in educational activities. That means every time

people buy one of its products, they are not =ust doing something good for their ownchild, they are also helping children around the world to reach their highest potential.

When market will become saturated( Sesame Workshop can more widel"broadcast pen Sesame in de!eloping countries as it is much cheaper

to produce#

6pen Sesame is another international television product broadcast in internationalmarkets like Arab World, Australia, +taly,


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2eing the largest single teacher of "oung children in the world SesameWorkshop can use its success and brand image to for much more

international growth like 2ra'il( 3rance( or 1ndia#

Sesame Workshop is a nonprofit educational organization making a meaningfuldifference in the lives of children worldwide by addressing their criticaldevelopmental needs.The Workshop is committed to the principle that all childrendeserve a chance to learn and grow; to be prepared for school; to better understand theworld and each other; to think, dream and discover; to reach their highest potential.Sesame workshop is the producer of Sesame Street which is the highly acclaimedchildren$s educational show. *eing the largest single teacher of young children in theworld Sesame Workshop can use its success and brand image to for much moreinternational growth like *razil, 2rance, or +ndia.

$ustification%Taking advantage of all forms of media and using those that are bestsuited to delivering a particular curriculum, the Sesame Workshop effectively andefficiently reaches millions of children, parents, caregivers and educators locally,nationally and globally. +t believes that all children deserve a chance to learn andgrow. +t says that when people purchase Sesame Street and other Sesame Workshop

products, they are supporting the education of children around the world. The incomeit receive from product sales along with crucial support from foundations,corporations, individuals, government agencies, and licensees, is put right back intothe development of Sesame Street and our other educational pro=ects around the

world. +n this way it has created a brand image worldwide. 5sing this positive brandimage, Sesame Workshop can achieve much more international growth in countrieslike *razil, 2rance, or +ndia where it haven$t enter yet.

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T7%+!TS

2eing a small firm with limited resource in international SesameWorkshop has grown so fast that its over-extending growth ma" notallow them to respond to e!er"bod"#

Sesame Workshop Sesame Workshop, formerly known as the 1hildrens TelevisionWorkshop or 1TW, is a nonprofit organization behind the production of severaleducational childrens programs that have run on public broadcasting around theworld including


32/71

License fees around the world have been going down and down as aresult if Sesame Workshop is too e&pensi!e broadcasters will not put

the same !alue on its products as it cost them to produce#

When Sesame Workshop internationalize in the %3D's, television in most countrieswas dominated by the public broadcasters. !any of these broadcasters were ready to

pay Sesame Workshop fees to cover production and other fees. +n the late %33's withthe growth of commercial broadcasting via satellite and cable, the televisionworldwide becomes much more competitive. With new competition, audiencedropped for individual broadcasters and it reduces the monopoly power of public

broadcasters. As a result, it reduces the capacity of Sesame Workshop to generaterevenuefrom license fees as children programming area + not a primary area for mostcommercial broadcasters.

$ustification%>ow there are more channels and options for programming butlicense fees paid by the broadcasters around the world have been going down anddown. >ow broadcasters willing to pay zero but still want Sesame Workshop todeliver a fully produced show, promote it, and guarantee a percentage of ancillaryrevenue. +f Sesame Street is too e-pensive broadcasters will take something else. Thiscan eliminate the market of Sesame Workshop$s products if it does not come up withuni/ue and new products for the audience. 6therwise broadcaster will not have anyinterest to show Sesame$s programs in e-change of a license fee.

Sesame Workshop has reduced its corporate staff4ust to decrease in

general and administrati!e costs which ma" deter its growthinternationall"#

*eing a notforprofit organization, Sesame workshop$s mission is to educationchildren and their families globally. Though profit is not its main goal, creating afinancially viable and growing organization is a necessity because it has to competewith others forprofit organization. *ut it is having a surplus deficit in all operationalyears e-cept %338. Sesame Workshop is a small firm but it has taken a initiative tolaunch various pro=ect but it does not have enough resources for that. As a resultfinancial deficit occurs. To overcome this deficit, Sesame Workshop has reduced itscorporate staffs which resulted in a decrease in general and administrative costs.

$ustification% Sesame Workshop has a very high growth rate. To sustain with thatgrowth rate it needs e-pert human resource because they are one who is behind thesuccess of Sesame Workshop. Also as it is e-panding in globally it re/uires more

people for successful e-pansion. So by reducing its employee Sesame workshop is notdoing any good for the organization e-cept losing its human resources which is veryimportant for them. This is one of big misconception that reducing staff will bringoperating efficiency. +f Sesame Workshop continues to do so it will e-perience acontraction in its growth rate and instead of reducing cost it will e-perience that itsrevenue decreased a lot as there will not be enough employee to support the

sustainable and viable growth rate.

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Sesames reorgani'ation of international operations in +,, resulted anew organiational structure which is much more vertical which can

increase the comple&it"( consume time( and reduce transparenc"#

+n %334 the Sesame Workshop had reorganized its organizational structure, which wasmore or less vertically structured. Mertical structure means that they have manyorganizational layers for which it might take too much time to implement a decision.+n %333 there was brought some additional changes which increased the layers evenmore. +t might be said that as they are doing their business globally they might need tomaintain many different layers inside their organization. *ut it is mentioned in thecase that the Sesame Workshop is a small firm with limited resources and unlimiteddreams. As they have two agents one for )urope, and one for Fatin America, theyactually don$t need to maintain this kind of lengthy hierarchy to make approve or

implement a decision.

$ustification%Sesame Workshop is maintaining a vertical organizational structureor lengthy hierarchical process which consumes time and money both. Also lowerlevel employees will have no chance to talk with the top level directly. +t hamperstheir motivation a lot. Also there is no chance that the audience can give theirfeedback directly to all level of employees. Top levels are getting the lower levelemployee$s and customer$s feedback thorough someone else or grapevine. So there isa lot of chance of getting wrong information, it takes time to take decision and also itreduces the transparency. All this things will hamper a lot when Sesame Workshopface competition and respond /uickly to the market.

As competition is increasing and the audience that Sesame Workshop isgoing after is also shrinking as resultprograms may its lose popularity! it will be hard to come bac"#

+n the late %33's with the growth of commercial broadcasting via satellite and cable,the television worldwide becomes much more competitive. With new competition,audience dropped for individual broadcasters and it reduces the monopoly power of

public broadcasters. As competition has increased and the windows for the show areshrinking, the audience we are going after is also shrinking. So with the number of

programs those are available to the shrinking audience continuing to increase. So if

Sesame Workshop$s program loses popularity, then it will be hard for them to comeback.

$ustification% The main thing for the e-istence of Sesame workshop is thepopularity of its program. +f its program loses its popularity it will be no longer e-istsin the market. )arlier, when Sesame Workshop started its operation there where nosuch company likes Sesame Workshop. So it could have e-ercise monopoly power toits audience. *ecause there were no option for the audience e-cept seeing its program.*ut things have changed now. 1ompetition has increased. So the windows oftelecasting Sesame Workshop$s programs have shrunk. Also the number of audiencehas also shrunk. So in this case if Sesame Workshop$s program loses its popularity

then it will be very hard for them to e-ist in the market and will fulfill its mission ofeducating children.

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#ar"et can become saturated for Sesame wor"shop as it has pro!idedto its highest e&tents and without new programs it will be difficult for

them to e&ist in the competition#

2rom %348 Sesame Workshop has provided with high /uality educational programamong the audience. That$s why broadcasters were ready to provide license fees andhas created a brand mage among the audience. *ut competition has increased and invery soon all its programs will be saturated means audience will no longer wantsSesame Workshop$s previous shows whish already shown a lot. World is changingand demand and preference of the audience is changing. So now organization can notattract these audiences with old programs. Audience want more now programs.

$ustification%>ow there are more channels and options for programming and

competition has increased. Hifferent organizations are coming up with their uni/ueproducts. So for the follow up success of Sesame workshop it needs new programs.6therwise its audience will shrink and no longer can compete with the competitorswho have new products with uni/ue features. So as !arket can become saturated forSesame workshop as it has provided to its highest e-tents and without new programsit will be difficult for them to e-ist in the competition.

*he increase in cable and satellite broadcasting is being contradictor"with Sesame Workshops commercial-free philosoph" which ma" deterits growth#

+n the past governmentowned channel were not allowed to interrupt programming foryoung children with commercials. As a result being the pioneer in telecasting children

program, Sesame Workshop could successfully implement its commercialfreephilosophy as it was accepted by the public broadcasters. *ut now there are lots ofcommercial channels and all want a commercial break. +t is becoming difficult to asksomebody to show an entire hour commercialfree. Sesame Workshop$s one of themain philosophy is broadcasting its children$s programs without any commercial

break. 2or this philosophy many commercial broadcasters are not interested to telecastSesame Workshop$s programs.

$ustification%Hue to this commercialfree philosophy, Sesame Workshop is notbeing able to show its programs in different commercial channel as commercialchannels are not interested to broadcast programs without any commercial break. SoSesame workshop can only broadcast its programs on its own channel but it willreduce its capacity to grow more. +t is also seen from an e-periment that the childrencan make the distinction between the show and the commercial. So there will be noharm if commercials breaks are allowed in a children educational program. So ifSesame Workshop does not change it commercialfree philosophy it will not getcommercial broadcasters to show its children programs. As a result it will not be ableto show its programs to the audience. So it will lose its audience which will deter its

growth globally.

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7% 0ssue

uman resource is a nucleus of an organization. +t plays a key role in helpingcompanies dealing with a fastchanging competitive environment and thegreater demand for /uality, efficient and potential employees. )very

organization needs to have a specific # department so that the organization cansustain and run the business successfully. Sesame Workshop which is the producer ofchildren$s educational show is the largest single teacher of young children in theworld. *y (''%, the show was broadcast in almost %&' countries and was coproducedin the local languages in (' countries having ?'' employees. Sesame Street is a showof Sesame workshop which got D4 )mmy Awards. Their mission is to create

innovative, engaging content that ma-imizes the educational power of media to helpall children to reach their highest potential.

H

+n the previous part of this case solution we have analyzed and found the strengths,weaknesses, opportunities and threats. And now we have to identify some significant# issues that already e-ist in the Sesame Workshop, like how they are hiring andtraining their employees to enhance their efficiency, how they structure theirorganization, how they are compensating their employees to motivate them as theyhave high turnover, how they satisfy their customer by innovative idea and so on. Sonow we like to discuss those significant # issues of the Sesame Workshop, whichwe have found from this case and in the following they are described one by oneN

Sesame Workshop brings about ,:"# employees to 4ew;ork for training on good writing educational andentertaining segments for the show as it believes that goodwriting is the key to success< and they use a lengthy hiringprocess for filling up a vacant place6

The Sesame Workshop does not have any separate # department for which it doesnot follow any specific rules to recruit, to select, to compensate or to train theiremployees. 2or coproduction with other countries, they bring some people from their

partner country to >ew Iork and train them in writing educational J entertainingsegments for the show. They also construct puppets to cope up with the local cultureand customs. *ut the problem is they have no specific TJH plan for it so that theycan further precede their business in a systematic way. Another issue is that theirrecruitment process is very slow and they do not have any specified recruitment plan.*ut in an organization the most important resource is its human resources andappropriate human resources assure an organization that the right number and kind of

people are available at the right time and place so that organizational needs can be

met.

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We have chosen it as a # issue because #uman esource and !anagement includethese factors training and recruitment. As Sesame Workshop works for the children,

they need the right and well trained people to satisfy their child customers. +n this casethere is no specific rules mentioned that how Sesame is recruiting their people fortheir organization. *ut in one area we have found that their group president for

products and international television resigned in %333 and till the mid of (''% theposition was vacant. +f they had any specific recruitment committee then it might nottake such two years to fill up a vacant position. So they must need to focus on thisissue as they are now the largest producer of children$s educational show ande-panding their business all over the world. +f they go without a systematic way theymay not retain the highest potential customer any more.

According to the case here is no specific outline mentioned about their training

process which indicates that their Training and Hevelopment process of employees isalso not designed properly. The Sesame Workshop believes that good script writing isthe key to their success for attracting children. So in the coproduction model theyhave a policy in which they bring some people, around (&?', from their partnercountry to >ew Iork and train them in writing educational J entertaining segmentsfor the show. They also construct puppets to cope up with the local culture andcustoms so that they can capture that local market easily. *ut as they do not have anyspecific TJH plan, for the long run it may not give the same output to the company.So here the needs for a # department arise.

!s Sesame Workshop does not focus on employeesatisfaction< their employee turnover for the organiation isvery high< which indicates low regulation and motivationtowards the employees6

1ompensation policy is the systematic component of #. 2or an organization, it is thekey element to motivate employees which indicates a systematic approach to

providing monetary value to employees for their work performed. To motivateemployees only the monetary rewards are not sufficient. !otivation can make anyimpossible to possible that results through nonmonetary tools in this case. 2or thisreason we want to focus this compensation policy of Sesame Workshop where it is a

bunch of a program producer for the children$s education and is a not for profitorganization. *ut in this case we have not found sufficient information aboutemployee compensation program towards the whole organization. So we could not getthe compensation policy that the organization is currently using for the employees andalso for the satisfaction level of employees. +n one portion of the case a managertalked about the satisfaction level of employees indirectly as like as they makedecisions which makes it so interesting to be there but sometimes frustrating for them.This comment indicates that employees are not =ustified properly in the organization.Sesame Workshop is the largest producer of children$s educational program, which

has already e-panded their business into more than %&' countries so far and had 7%CDmillion revenue at the end of ('''.

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Sesame Workshop has ?'' employees in the organization. 2or a large organizationlike Sesame Workshop it is shocking that they are not following any specific

compensation practice for their employees and e-ecutives. After reading the case wehave found that they are not following any compensation policy to satisfy andmotivate their large number of potential employees and we think that this is becauseof their deficit condition over the past decades. This also led a demotivation towardsthe employee who actually is not satisfied with their =ob as they have to work hard.2or this reason the satisfaction level for the employees are too low to continue their

=ob with this organization and creates a high employee turnover for the organization.6n the other hand Sesame does not provide any performance appraisal for theiremployee contribution which also creates dissatisfaction towards the employees. )venthough the organization wants to financially stable but they don$t focus on theirvaluable employees. As it is a artistic organization providing children$s program, their

employees are also a talent of this profession so loosing them one by one is a greatcost for Sesame because this type of talent employees are not available always in themarket.

This is a # issue because employee satisfaction and low turnover is a tool foremployee motivation and also for encouraging them to be creative in their =ob. And itis a part of compensation included in # practices. Though sometimes it causes harmto the company itself, it has been successful most of the time for the employee to

bring the higher return for the company.

Sesame Workshop does not have any specific %&=

=epartment for which they may face difficulties in future asthey needs new and innovative ideas for producing theirshows< and also e)panding their business worldwide thoughthey are in deficit condition6

Sesame Workshop has already been the largest single teacher of young children in theworld. Though it is a nonprofit organization it needs to profit to be financially viableall the time. 2rom the case we have found that they do not have any esearch and

Hevelopment department in the organization, though they ground their work inresearch. *ut the growing competitiveness of the business world they must need toadopt the new and innovative ideas to attract more children as well as retain theire-isting customers. As Sesame is popular in all around the world, they must knowabout different culture and norms, customer needs, competitors who already e-ist inthe market and so on. So without knowing all these information about any differentcountries no foreign business can enter into or run the business successfully in thatcountry for longer time. They have to hire the local people to make coproduction. Sothere the new hired employee might not ad=ust with their own business culture forwhich the organization might need to train them according to their corporate cultureor might adopt the new culture themselves to sustain in the new market, which is not

possible without JH.

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According to us this is as a # issue because the Sesame Workshop has to be verycareful to make their show for different countries for which they need to research

about the people for hiring the puppets, writers, musicians etc. as they are spread outinternationally. There culture might be different, hiring process might be different,people might be different, and the compensation policy might be different. So beforespreading out every country in the world, they must know this information very well.Additionally, for the growing competitiveness of the business world they must need toadopt the new and innovative ideas to attract more children as well as retain theire-isting customers. And here rises the need of a JH department.

For having a deficit for many years Sesame Workshopprefers to go for downsiing & laying off their employees to

reduce their operational cost< which causes a high employeeturnover rate for the organiation6

Hownsizing of an organization means that they lay off their employees in a large scaleto reduce their cost and meet their breakeven point as early as possible. +f they canmeet their breakeven they can go for a profit position. *ut this type of largedownsizing creates a frustration towards the potential employees who are workingwith the organization currently. This frustration will also reduce the efficiency of theemployees because the corporation focuses on the employees lay off only to reduce

the cost.

2or this case it is an important # issue which we would like to focus on because itrelates the problem with employees where employees are key element of anorganization and hot topics of #. )mployees are the most important tool for anorganization and without potential employee an organization cannot sustain for a longrun. Heficit for a decade is a frustrating thing for an organization. *ut it is a reality forSesame Workshop. They only saw profit in %33( and %338 and all the time they had tomanage their deficit by some donation or financing activities. Huring these yearsactually they could not manage their operating costs with their operating revenue.

Though the revenue of one program increased by %3 in (''' named Sesame Streetas a result of introduction of @Hragon Tales, this increase of revenue cannot generatemuch revenue which can cover the corporate deficit. 2or this reason they go for thereduction policy of their operating costs which will help to improve the net profit

position for the corporation. So they thought to reduce operating costs by thereductions in corporate staff resulted in a decrease in general and administrative costs.As part of their reductions of employee policy they reduced their employee from morethan C'' to about ?'' which is a large downsizing and create a high employeeturnover. +t is not good for a large organization which wants to e-pand their businesscontinuously.

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Sesame Workshop has a vertical organiational structurewhich was reorganied in -112 and also in -111 to reduce

the managerial time spent on smaller market and to focus onthe larger markets with high potential< which has beencausing harm to the organiational profit margin6

+n %334 the Sesame Workshop had reorganized its organizational structure, which wasmore or less vertically structured. Mertical structure means that they have manyorganizational layers for which it might take too much time to implement a decision.+t might be said that as they are doing their business globally they might need tomaintain many different layers inside their organization. *ut it is mentioned in the

case that the Sesame Workshop is a small firm with limited resources and unlimiteddreams. As they have two agents for all )urope and for Fatin America, they actuallydon$t need to maintain this kind of lengthy hierarchy to make or approve orimplement a decision.

According to the reorganized international activities structure, in Sesame Workshopmain office there is one 0roup


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%ecommendation

n the previous part we have identified some significant # issues from the givencase from various perspectives. After analyzing the case and identifying th

Sesame street case

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