In performance management, setting a goal is a major step. A business must have a goal. Achieving the goal will require specific tactics, measures and activities to be undertaken. Setting a goal is just the start. The major step is realizing that goal. A specific goal is better than a broad goal and a hard specific goal is better than a simple goal (Rolstadas, 2012). Los Angeles Tribune has been experiencing several problems that require to be addressed for the survival of the company.

A major problem with the company is that the cost of paper is rising. The goal in this case will be to minimize the cost of the paper without affecting the revenue. Los Angeles Tribune does not produce the papers rather the company procures from another company.  There are many companies that supply papers and thus the company should embark on comparing different prices of paper in the market.  Again, most of the papers being printed end up being returned due to a low customer base. The company should estimate demand of the papers to match supply and prevent wastage (Rolstadas, 2012). Success will be measured by the new cost of paper compared to the old cost of paper. The cost should be measured relative to the revenue. If a lower cost leads to lower revenue, then the goal is not a success. The lower cost should maintain the revenue or increase the revenue.

The other problem with the company is that the cost of distribution is rising. The goal is to reduce the distribution cost without lowering the number of newspapers distributed. The newspapers are distributed using trucks. One way to minimize the distribution cost is to pull out the number of trucks used.  This will mean that the available trucks will have to work extra. However, pulling out some trucks will eliminate their insurance and maintenance costs.  However, if the cost increase on the available trucks is more than the cost cut on the pulled out trucks, then the tactic is a failure. The company should pull out the trucks to a point where the cost increase on available trucks is lower than the cost reduced.  In addition, the supply of the newspaper must meet the demand to maintain revenue. If the company manages to reduce the cost of distribution while maintaining the distribution revenue, then the goal is achieved (Hassan, 2015).

Another problem to be addressed is the circulation revenue. The goal here is to increase the circulation revenue relatively to distribution cost. The distribution revenue depends on the number of customers willing to buy the newspaper. First the company can lower the price of the newspaper to woe more customers. In addition, most of the customers are in the 40+ age range. This means that the younger generation is not buying the newspapers.  The newspaper should be able to accommodate all people in terms of content. The younger generation is more into entertainment, sports, and celebrities among others.  The newspaper should have different forums targeting a specific generation.  This way, the customer base will increase increasing demand (Hassan, 2015). Success will however be possible if the increase in demand brings in more revenue than the cost involved in managing it. If the cost of producing and circuiting the extra demand is relatively lower than the revenue from increased demand, then the goal is achieved.

References

Hassan, M. (2015). Marketing management trainee Department on printing and packaging industry.

Rolstadas, A. (Ed.). (2012). Performance management: A business process benchmarking approach. Springer Science & Business Media.

 
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