این متن را باذکر تمام تیترهایش (تاکید میکنم تمام تیترهای مربوطه ، به انگلیسی روان و بصورت مفصل و کامل خلاصه کن :   STRUCTURE OF THE TOP SIX FIRMS

This section presents an overview of the internal structure and organisation of the top six media conglomerates. Table 8.1 presents basic description on each company in regards to revenue, market capitalisation, number of employees, and the number of officers and corporate directors.

officers is 11.3 and the average number of corporate directors is 15.5. In terms of market capitalisation, AOL TW outdistances the other companies by $85 billion. In terms of employees, Vivendi Universal is the largest employer, News Corporation the smallest.
Each of these enterprises is a holding company for other media concerns
and each is organised accordingly. The structure of every media company is in constant flux as a result of change and strategic initiatives. To better understand each company’s purpose, we next review each company’s mission statement.
Mission Statements of the Conglomerates
The company mission statement typically identifies the organisation’s purpose and values (Albarran, Management ofi.., 2002). The actual mission statements vary in length from several paragraphs to a single paragraph. The authors have distilled the material down to present the key aspects of the mission statement. This material is presented in Figure 8.1.
As might be expected, the mission statements espouse similar goals and objectives. For example, all but one company (News Corporation) mention the word “entertainment”
in their statements. Disney emphasises “family
entertainment” while other companies use the terms “consumers,” “customers and “people”. Vivendi, Viacom and News Corp. emphasise their role as creators and distributors of content. Financial goals are inferred or explicitly stated by AOL TW, Disney and News Corp.
In addition to the mission statements, much insight can be gained by looking at each company in terms of its current structure and historical development. Each company is reviewed in the following sections.
AOL 7W Compact Disclosure lists AOL TW’s primary business activities as “information retrieval services; cable and other pay TV services; photographic equipment and supplies” (AOL Time Warner, 2001). However, there is much more to this company than this list of business ventures implies. The company is further described by the Disclosure database as a company that:
Develops and operates branded interactive services including: a worldwide Internet online service and an Internet portal; creates and distributes branded information and entertainment throughout the world; and owns and operates cable networks consisting principally of interests in film entertainment, television production and television broadcasting (AOL Time Warner, 2001).

Figure 8.1: Excerpts from Corporate Mission Statements
Our mission at AOL Time Warner is to become the world’s most respected and valued company by connecting, informing and entertaining people everywhere in innovative ways that will enrich their lives.
The Walt Disney Company’s key objective is to be the world’s premier family entertainment company through the ongomg development of its powerful brand and character franchises. The company’s primary financial goals are to maximise earnings and cash flow from existing businesses and to allocate capital profitably toward growth initiatives that will drive long-term shareholder value.
Vivendi Universal will be the world’s preferred creator and provider of entertainment, education and personalised services to consumers anywhere, at any time, and across all distribution platforms and devices.
Bertelsmann is the most international media corporation, stnving to be the world’s leader in the markets in which they operates. Bertelsmann provide customers with information, education and entertainment through every possible outlet and in every conceivable format.
Viacom 1s a leading global media company, with preeminent positions in broadcast and cable television, radio, outdoor advertising, and online. With programming that appeals to audiences in every demographic category across virtually all media, the company is a leader in the creation, promotion, and distribution of entertainment, news, sports, and music.
The News Corporation Limited is one of the world’s largest media companies [involved in] the production and distribution of motion pictures and television programming;
television, satellite and cable broadcasting; the publication of
newspapers, magazines and books; the production and distribution of promotional and advertismg products and services; the development of digital broadcasting; the development of conditional access and subscriber management systems; and the creation and distribution of popular on-line programming. News Corporation’s success worldwide is attributed to teamwork, communication,
creativity and
determination. These skills, combined with the breadth of our assets, enables us to create customrsed media and marketing soluttons that impact consumers one by one.
Sources adapted from corporate websites as follows: AOL Time Warner-About us (2001); Walt Disney and Company-About us (2001); Discover Vivendi Universal (2001); Bertelsmann profile (2001); About Viacom (2001); and News Corporauon-Investor relanons (2001). 

The term “branded,” used twice to describe the nature of AOL TW’s business, is important. Each of the media conglomerates has experienced a
history of acquiring additional properties that are known brands. Each of these companies uses these brands to differentiate itself from the other media
 
companies.
AOL TW is divided into seven segments comprising one or two principle companies with other acquisitions folded in. Each segment has its own Chairman and Chief Executive Officer, each of whom reports to AOL TW’s Board of Directors, its Chairman, and its CEO. These segments are: Interactive services and properties (America Online), networks (Turner Broadcasting and Home Box Office), publishing (Time Inc. and Time Warner Trade Publishing), music (Warner Music Group), filmed entertainment (Warner Bros. and New Line Cinema), cable systems (Time Warner Cable), and their Interactive Video Division, comprising AOL Time Warner Interactive Video.
Key events in the organisational development of AOL Time Warner are presented in the timeline presented in Table 8.2.
The Walt Disney Company The Walt Disney Company was organised in 1923. Disney achieved notoriety with the debut of the animated character “Mickey Mouse” in 1928. Disney became known as an animated film company and cartoon creator. Later, the company developed theme park operations and moved into merchandising of the Disney family of characters and retail through the Disney stores around the world.
The company is currently organised in a similar fashion to AOL TW, with certain key companies -all brand names-dominating each division. Although each media company assigns their executive officers different responsibilities, the functions of the Walt Disney Company offer a clear picture of the priorities of every media concern.
The 1950s saw the company develop early examples of synergy. Disney used two television programs, “The Mickey Mouse Club,” and “Walt Disney Presents,” to promote Disneyland, the first truly national theme park. This type of relationship is still important to the company and is reflected in its choice of
executive officer positions, as there is a Vice President for Corporate Synergy.
The desire to find alternative revenue streams is also reflected in the
position of Executive Vice President of Merchandise and Creative Services for Disney Store and Disney Direct Marketing. There is also a Senior Executive Vice President and Chief Strategic Officer, indicating the company’s commitment to further acquisitions, mergers and alliances.
The company’s concern for its image-a family and community friendly corporation-is reflected by the positions of Senior Vice President for Corporate Public Service and Vice President for Communications. A timeline for the Walt Disney Company is presented in Table 8.3.
Table 8.3. Walt Disney Co. Timeline 1923

Walt Disney and Co. begins as Disney brothers sign a contract to produce the “Alice Comedy” series for $1500 each.
1928
“Steamboat Willie”, the first animated film with synchronised sound, introduces Mickev Mouse to the American nublic.
 
1937
Disney enters the merchandise arena with the licensing to Ingersol of the Mickey Mouse watch and the creation of the first Mickey Mouse magazine.
1937
“Snow White and the Seven Dwarfs”, the first feature-length animated movie debuts.
1939
The Academy of Motion Picture Arts and Sciences awards “Snow White and the Seven Dwarfs” a snecial Oscar.
Fantasia, the first film to introduce stereophonic sound, is produced.
I 1940
“Song of the South” is the first production to combine live action and 1946
animation.
1954
Disney announces the plans for Disneyland; the park opens in 1955. 1957
Disney enters the live-action market with the release of “Johnny Tremain” in theatres and Zorro on television.
1971
Walt Disney World and Resort opens in Florida. 1982
Epcot Center in Florida celebrates its grand opening. Tron, the first film to make extensive use of computer imagery, is released.
The Disney Channel is launched as a premium service. 1983
“Beauty and the Beast” becomes the first animated film to be 1991
nominated for an Oscar for Best Picture. 1992
Euro Disneyland opens.
1993
Disney acquires Miramax Films. 1995
Disnev and Canital Cities/ABC arzreeto merge. 2001
Disney acquires the Fox Family Worldwide assets for $3.0 billion in cash plus debt. Renames channel ABC Family.
Sources: Ellis (1995); Polsson(2001); Smith & Clark (1999); Waft Disney and Company corporate acquisitions (2001).

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Vivendi Universal
 
Vivendi Universal is the newest global media entity, created
in December 2000 as a result of a merger between Vivendi, the Seagram Company Ltd., and Canal +. However, its base company is older than any other media company except Bertelsmann. The merger combined Vivendi’s assets with Seagram’s film, television and music holdings (including Universal
Studios) and Canal +‘s programming and distribution capacity (Merchants of Cool, 2001).
Vivendi Universal has operations in water, waste management, energy, transport services and nonferrous wiring (Vivendi Universal, 2001). These interests provide an industrial economic base that separates it from other media giants and relieves them from downturns in the economy as advertising revenue declines. In fact, Vivendi Universal only receives 48% of their total revenue
from media ventures (Leonard, 2001).
The company’s formula for success, according to Guyon (2001) is to “first, separate your old-fashioned, reliable, cash-generating utility business from your glamorous but risky media business. Then take most of your debt-in Vivendi’s case, $16.9 billion-and stick it in the utility business.” This strategic division
of assets has encouraged further acquisitions by removing the necessity to raise extra cash to retire existing debt. Vivendi’s timeline is presented in Table 8.4.

Table 8.4. Vivendi Universal Timeline 1853
Creation of Compagnie G&r&ale des Eaux (CGE) in France. 1924
Seagram, which deals in spirits and wines, is created.
1980-1986 CGE expands, diversifies and starts international operations in water, waste management, energy, and transport services and also expands in telecom and Media.
CGE participates in the creation of Canal+, the first Pay-TV 1983
channel in France.
1996
Creation of Cegetel to provide telecommunications services-it becomes the second largest operator on the French market. Acquisition of NetHold, a Dutch set-top box manufacturer; a 1997
major step in Canal+ Pay TV successful intemationalisation. Launch of the digital TV offer in Spain and Italy.
Company changes its name to Vivendi. 1998
Vivendi launches Vizzavi (a multi-access portal) in France in June. 2000
Vivendi completes acquisition of Seagram; becomes Vivendi 2000
Universal.
Vivendi invests $1.5 billion in EchoStar; acquires USA networks 2001
for $10.3 billion.
Source: Discover Vivendi Universal group: The group history, (2001); Vivendi seals deal, (2001).

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Viacom Viacom’s strategy is built around brand names that appeal to audiences in every demographic category across all media. The company is heavily identified with its CEO and majority owner, Sumner Redstone. In terms of divisional structure, the company divides its segments into seven areas. The Broadcast and Cable Television Group consists of the CBS Television Network and the United Paramount Network (UPN); Comedy Central; Showtime Networks Inc.- Showtime, The Movie Channel, FLIX, and the Sundance Channel-and the Viacom Television Stations Group. Also included in this division are the MTV Networks, which comprise MTV, Nickelodeon, VHl,
TNN, MTV2, Nick at Nite, TV Land, CMT, and The Digital Suite.
The network has also extended its brand identity by sponsoring films, books, and other online and consumer products. This division also includes BET (Black Entertainment Television), The Jazz Channel, BET International,
BET Books, BET Pictures, and BET.com. Paramount Television has six production units: Paramount Network Television, Viacom Productions, Spelling Television, Big Ticket Television, Paramount Domestic Television, and Paramount International Television. CBS Enterprises consists of King World Productions Inc., the domestic syndication branch, CBS Broadcast International and King World International Productions. Viacom Plus-the company’s sales and marketing arm- is also in this division. The Radio and Outdoor Division contains Infinity Broadcasting and Viacom Outdoor.
The Motion Pictures and Theatrical Exhibition Division includes Paramount Pictures, Paramount Home Entertainment, Famous Players-Canada’s oldest theatrical exhibitor-United
International Pictures (IJIP), United Cinemas
International (UCI), Viacom Consumer Products (entertainment licensing), and Famous Music Publishing. Blockbuster-the worlds largest renter of videos, DVDs, and video games-comprises Viacom’s Video Division. The company also has an Internet Division, a Publishing Division and a Paramount Theme Parks Division.
Significant developments in the history of Viacom are presented in Table 8.5.
Bertelsmann A.G. Bertelsmann is the only privately held media conglomerate; with 7 1% of its shares held by the Bertelsmann Foundation, 21% by the Mohn family (descendants of the founder), and 7% by the ZEIT Foundation. Thomas Middelhoff is the company CEO. The members of the board, except for the Chairman/CEO, are responsible for one of the company’s corporate divisions. Two divisions are not represented on the board, the RTL Group and BertelsmannSpringer. The RTL Group is in the process of moving towards limited public ownership.

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Table 8.5. Viacom Timeline 1967

Sumner Redstone named President of National Amusements, Inc. Simon and Schuster purchased by Gulf + Western (later becomes Paramount).
Showtime debuts as a premium service and competitor to HBO. Viacom debuts Nickelodeon, and The Movie Channel, a second pay channel.
,
Viacom launches MTV.
Sumner Redstone named Chairman of National Amusements, Inc. National Amusements acquires controlling interest; Redstone named Chairman.
Along with Chris-Craft Industries, Viacom launches UPN.
Viacom acquires Paramount Communications, Blockbuster and Simon and Schuster in separate transactions.
Viacom acquires CBS in largest media transaction to date.
BHC Communications sells its half-interest in UPN to Viacom for $5 billion.
1 Viacom folds Infinity Broadcasting into company; acquires BET.

Source: About Viacom, 2001.
Eight of Bertelsmann’s ten divisions are under an over-arching strategic business unit. The Content unit includes most companies (entities with book, music, magazine, newspaper, television, radio and professional information interests). The Arvato division, with its thirty subsidiaries, forms the Media Service unit.
The Direct-to-Customer Businesses unit encompasses
Bertelsmann’s DirectGroup (Bertelsmann, “Facts and Figures,” 2001). Table 8.6 lists key events in the company’s history.
Like Viacom, News Corporation is best known through its
Chairman and CEO, Rupert Murdoch. In the early 195Os, Murdoch inherited a regional Australian newspaper and in the span of fifty years has been transformed into one of the world’s most recognised media moguls. Like other media giants, News Corporation consists of many brand name companies, e.g., Twentieth Century Fox, The Times, the New York Post, and the Los Angeles Dodgers. The company operates several divisions: book publishing, cable and
 
satellite television, filmed entertainment, magazines and inserts, newspapers, television, and other assets.

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Table 8.6. Bertelsmann Timeline 1834
1921
1962
1969
1980
1986
1997

1998
1999
2000
2001

Carl Bertelsmann founds C. Bertelsmann Verlag, a book printing company.
The fourth generation of ownership led by Heinrich Mohn (1885-1955) succeeds in achieving a broad readership for the company.
Bertelsmann establishes a Spanish book club, Circulo de Lectores, in Barcelona.
Bertelsmann acquires interests in magazine industry through Gruner + Jahr.
Bertelsmann acquires Bantam Books. Bertelsmann acquires RCA records.
Bertelsmann merges the Ufa Film- und Femseh-GmbH with Compagnie Luxembourgeoise de TCl&liffusion (CLT), to form the largest television enterprise in Europe. Bertelsmann also established the first book club in China.
Bertelsmann acquires Random House; merges it with Bantam Doubleday Dell.
Bertelsmann launches BOL - the most international media shop in the world, with operations in Germany, the Netherlands, France, Great Britain, Spain, Switzerland and a huge selection of books and music. Bertelsmann arranges for a merger between CLT-UFA and the British company Pearson TV, forming the RTL Group-the first complete corporate division of Bertelsmann to go public.
Establishes alliance with Napster music service; with other partners launches MusicNet online music service.
 
Source:Bertelsmann history, 200

1.

Rupert Murdoch and his family dominate the organisation of the company. Murdoch and two of his sons serve on the board of directors of the corporation. Compact Disclosures reports of the 2,037,326,936 outstanding shares, as of June 30, 2000, the corporation’s officers and board members own 2,084,37 (over
10%) (News Corporation, 2001).
In addition to 10% of the voting stock held by News Corporation’s officers and board members, the Cruden Trust-an entity controlled by the Murdoch family--controls 40% of the company’s outstanding stock (Shawcross, 1997: 381). A timeline of News Corporation’s Development is listed in Table 8.7.

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Table 8.7. News Corporation timeline

th Network, FX Network, 50%), the Golf Channel,

Source: Merchants of Cool, (2001); Shawcross, (1997). PERFORMANCE
OF THE TOP SIX FIRMS

Having examined organisational structure and development, we now turn attention to the issue of performance. Performance can be studied in many ways. For example, performance can be tied to industrial organisation analysis, by focusing on the variables of production and allocative efficiencies, as well as progress and equity (Albarran, Media Economics, 2002). For our purposes, performance is best reflected in financial data on the six firms to indicate their ability to increase profits, and in all cases but Bertelsmann, shareholder value. Table 8.8 presents basic financial information for each firm except Bertelsmann, with data on total assets, total debt, and debt-to-equity and total assets-to-equity ratios.

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Table 8.8. Financial Information on Publicly Traded Companies. Total

Vivendi’s large asset base is attributed to the company’s industrial sectors. Viacom has the largest debt load of the public firms. All five companies have very low debt-to-equity ratios, indicating good financial management. Total assets-to-equity ratio is also very similar, with all companies having an asset base at least 1.5 times as large as their equity.
Performance ratios such as profit margins, return on equity, and return on assets provide other indications of economic performance, as well as estimates on earnings per share. Table 8.9 lists these data for the five publicly traded firms.
Table 8.9. Company Performance Ratios (2000) and Earnings Per Share (2000-2001). Company
As the table illustrates, AOL TW has the strongest performance ratios and EPS estimates, followed by News Corp. Viacom’s high debt load led to negative performances for all 2000 performance ratios. While these data help
analyse the company, the poor American and global economy in 2000 and 2001 are reflected in the subdued performance data and EPS estimates for all companies except for AOL TW.

STRATEGY OF THE TOP SIX FIRMS
This section considers the primary strategies used by these six media firms in executing their business plans. We can only assessstrategies at the macro level, because within each company their respective divisions and brands within these divisions all operate with individual strategic business models and objectives.
There are two broad strategic objectives that each of these companies is engaged in: content and distribution. In terms of content, every firm has either developed or acquired significant content brands well known to consumers. The “richest” companies in terms of content include Viacom, Disney, AOL TW and News Corporation. Vivendi Universal’s most visible content is in their motion picture (Universal Studios) and music divisions, while Bertelsmann is best known through its publishing and music divisions.
In terms of distribution, all six companies are engaged in distribution, but utilising different forms. For example, AOL TW and Viacom distribute content via broadcasting, cable, the Internet and print. Disney concentrates on broadcasting, cable and the Internet. News Corporation is the leading distributor of content via satellite, but also offers distribution via broadcasting, cable and publishing. Vivendi’s and Bertelsmann’s distribution efforts are primarily on
the European continent, yet both companies are targeting the United States Vivendi’s December 2001
through their successful Internet operations.
acquisition of USA networks provides a much needed distribution platform in the United States that the company will build upon. Vivendi also acquired a
$1.5 billion stake in EchoStar, increasing its U.S. distribution options (Vivendi seals deal, 2001).
The joint emphasis on content and distribution lead to another common First coined by Negroponte
strategy among media firms known as repurposing.
(1993, the term has come to mean content produced in one arena that is reused or repackaged for other arenas. Albarran and Dimmick (1996) refer to
 
repurposing in economic terms as “economies of multiformity.” During the
2001-2002 television season, examples of repurposing was found among the broadcast and cable networks owned by AOL TW, Disney, and News Corp.

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The program Charmed is first broadcast on AOL TW’s WB television network, then repurposed on cable networks TBS and TNT. Two programs airing on the Fox network, 24 and Nathan’s Choice, are repurposed on FX. Disney regularly repurposes Good Morning America and other portions of their prime-time lineup on the cable network ABC Family.
Strategic alliances and partnerships is a fourth generic strategy used by these firms. Strategic alliances and partnerships offer several benefits to
companies, including the sharing of risks and rewards, providing access to new markets and increasing shareholder and company value (Albarran, Management oJ.., 2002). With the beginning of the 21st century, most strategic alliances between these companies and other firms were devoted to developing and
marketing programming and other forms of media content; expanding into nondomestic markets, and dev eloping e-commerce and Internet strategies.
Producing and distributing television and film content became the first logical areas where strategic partnerships were widely used among media
companies to lower costs, but partnerships have expanded to other areas. In the recording industry, the impact of the Napster controversy led to two different consortiums offering online music distribution. MusicNet’s principal partners include AOL TW, Bertelsmann, EMI and RealNetworks, while Pressplay’s
initial partners consist of Vivendi Universal, Sony, Yahoo and Microsoft. Finally, diversification is a fifth strategy used by these companies.
Diversification refers to the different segments or divisions that the company draws revenues (and losses) from. In reviewing the histories of all six of these firms, one can easily see that these companies became more diversified over the years through a series of mergers and acquisitions. Likewise, in some cases the companies divested of assets that were considered non-essential to the core mission of each firm.
At the end of 2001, each of the six firms reviewed in this study were diversified to the extent that they had multiple divisions with media-related activities. But several firms hold assets that are non-media related. For example, Disney, AOL TW and Viacom holdings include theme parks, retail stores and merchandising opportunities. Disney and News Corporation both own professional sports franchises. Vivendi Universal has about half of its assets in the areas of water and waste utilities, telecommunications, and manufacturing.

SUMMARY AND CONCLUSIONS
This study provides a review and analysis of the world’s largest media firms by
 
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performance and business strategy. Three of the top six companies are based in the U.S., two are based in Europe, and one in Australia. In regards to structure, each company operates multiple divisions, and each company has a sin-&w number of corporate officers and directors. Revenues, market capitalisation and number of employees vary among the six firms. All firms are publicly traded companies with the exception of Bertelsmann, which is privately held.
A review of performance data found variation among the six firms in terms
of selected financial ratios. Vivendi Universal has the largest asset base and also the lowest debt. Viacom currently carries the largest debt load of the firms, and the debt has negatively impacted the company’s performance in terms of profitability estimates and earnings per share projections. Of the six firms analysed, AOL TW had the strongest profitability margins and the largest EPS estimates for 2001-2002.
Regarding strategy, each of the six fiis represents a conglomerate
structure, with many divisions having their own leadership and support staff. As such, they have multiple strategic plans in place reflective of the needs of the various divisions.
Five macro-level strategies were observed by examining all six firms. Each
firm is heavily engaged in creating and developing media content, in many cases across a number of different platforms and mediums. Every company is
involved in producing for motion pictures and television; a number of companies are involved in publishing. All of the companies are also engaged in a distribution strategy, or delivering content to consumers either via over-the-air broadcasting or some type of subscriptions.
Repurposing of content is a third generic strategy used by these firms. Repurposing allows content to be repackaged or reused over different media markets and products. A fourth strategy is in the area of strategic partnerships and alliances, designed to share rewards and risks and develop new products and services across markets. Finally, diversification at the corporate level is another observed strategy, enabling these companies to draw revenues from multiple business segments composed of both media- and non-media related assets.
These billion-dollar media companies, whether identified as megamedia corporations or transnational media companies, dominate the global media landscape at the start of the 21st century. In reviewing their corporate history and development, it is unlikely these companies are finished in terms of future acquisitions. AOL TW and Bertelsmann both tried to acquire EMI records but were thwarted by regulators. AOL TW is one of several suitors after the cable television assets of AT&T. In reality, the question is how big might these companies eventually become.3 And how much of the various media markets (e.g., publishing, motion pictures, television, etc.) might these fiis one day control?

Clearly, these giants have put considerable pressure on “smaller” firms to
also grow in size and stature in order to compete with these established leaders. General Electric, through its NBC division is one such company. In the fall of
2001, NBC acquired the assets of Telemundo, the second largest Spanishlanguage broadcaster in the Un ited States. NBC is also frequently rumoured to
be trying to buy the movie studios owned by Sony, as NBC is the only broadcast network not affiliated with a major studio. AT&T has decided to sell its cable television assets, rather than attempt to grow larger. Telefonica acquired Terra Lycos in order to strengthen its Internet divisions and also gain a stronger position in the growing Latin American market.
In conclusion, there is little doubt that a global media oligopoly is now in operation, dominating many segments of the media marketplace. For regulators and members of society, the challenge is not to try and figure out how to “breakup” these companies- but rather how to learn how to live and function in a world where the media industries are dominated by a handful of companies.
Only time will tell if the number of players in this global oligopoly grows in size, or actually shrinks in the years ahead.