Oprah Winfrey - The Story of an Entrepreneur

Oprah – The Entreprenuer Contd...

For instance, when Oprah found that the production costs of her show amounted to $50 million annually (which was double the expenditure incurred by other day-time talk shows), she called up Doug Pattison, Harpo's CFO, and said "That is okay, but that is also enough. I think we can keep it at $50 million." 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.

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Case Details

Case Code : LDEN006
Themes: Corporate Social Responsibility/Woman Entrepreneurs
Case Length : 14 Pages
Period : 1957-2000
Organization : Infosys
Pub Date : 2002
Teaching Note : Not Available
Countries : Japan
Industry : Media and Entertainment

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