Oprah Winfrey - The Story of an Entrepreneur

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Themes: Corporate Social Responsibility
Period : 1957-2000
Organization :Infosys
Pub Date : 2002
Countries :Japan
Industry : Media and Entertainment

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Case Code : LDEN006
Case Length : 14 Pages
Price: Rs. 300;

Oprah Winfrey - The Story of an Entrepreneur | Case Study

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As far as her employees were concerned, Oprah paid them well and expected quality for money. Reportedly, she did not care about ratings as long as her shows and magazines achieved their objectives. Commenting on this, she said, "Ratings go down when we do an Oprah's Book Club show, but that does not matter. We are getting people to read." Thus, Oprah did not pressure her employees to achieve ratings; instead she emphasized creativity and quality. According to her employees, Oprah took care that her staff did not measure its success on the basis of media reports. She showered praises on her staff once a project was completed; but when that project was recognized by the world and won ratings or awards, her staff received no special treatment from her. In words of Kate Forte, President, Harpo Films "But if it wins big ratings or awards, the boss is mum. It is her reminder that we should not do anything for the external reward." Though there was great demand for Harpo produced movies and television films, Oprah did not bend her rules to exploit that demand. According to Iger, though Disney wanted Harpo to produce more films, Oprah's standards and rules limited Harpo's output to one film per year. Commenting on this, Iger said, "Just because there is a buyer does not mean she is a seller."

Oprah's business decisions were based largely on trust (she referred to this as taking 'leaps of faith'). It was reported that she asked only one question before she made a decision - 'Can I trust you?' Commenting on this, Nancy Petersman, Executive Vice President, Allen & Co (Investment Banking Firm), said "It is all about character with Oprah. We investment bankers do the same sort of thing - try to figure out what people are made of – but with Oprah, it is like someone is looking into your soul." Trust and control over the project were major factors in Oprah's decision making process. Hearst succeeded in winning Oprah’s assent for 'O', despite competition from AOL Time Warner and Conde Nast by winning Oprah's trust. Hearst promised her that the magazine would reflect her values and would work towards translating her message into the written word. To ensure this, Hearst entrusted Oprah with the total editorial control of the magazine. It was the same story with Oprah's investment decisions. Geraldine Laybourne, the co-founder of Oxygen, won Oprah's trust by telling her that she was planning a cable network aimed at providing intent and service to women. The idea appealed to Oprah (in fact she had something similar in her mind) and on an impulse, she invested $20 million in the project and also transferred certain rights to 'The Oprah Winfrey Show library. In return, she received a 25% stake in Oxygen Media.9

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9] In March 2002, it was reported that Oprah regretted her decision to impart certain rights to 'The Oprah Winfrey Show' library to Oxygen Media. She felt that by doing so, she had traded her soul. To undo this mistake, Oprah acquired her rights back and in return she accepted to do a special program on Oxygen Media, 'Oprah After the Show'.