Internal and External Analysis of BBC in Business Environment: A Case Study

This report provides an internal and external analysis of the British Broadcasting Corporation (BBC) in the business environment. It includes a SWOT framework for internal analysis and PESTLE analysis and Porter's Five Forces for external analysis. The report also discusses the impact of globalisation on BBC's decision-making and provides recommendations for the company's growth and success.

Business
Environment
Individual Case
Study

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK...............................................................................................................................................3
Internal Analysis of BBC:......................................................................................................3
External Analysis of BBC:.....................................................................................................4
Impact of globalisation on BBC's decision-making:..............................................................7
CONCLUSION ...............................................................................................................................8
RECOMMENDATION...................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business environment is the combination or set of all external as well as internal element
like needs of consumers, employees, customer expectations, management, suppliers,
stakeholders, practices by government, technological innovation, market trends, social trends and
many more. These element impacts the operations of the organisation and also the how the firm
indirectly or directly works with it. Combination of these elements impacts the business firms
environment and the circumstances (Adewole, and Umoru, 2021). The following report is based
on the British Broadcasting Corporation (BBC) that operates in the broadcasting industry. The
following report will include about the internal environment of the company for which SWOT
framework will be used. In addition to this, external analysis will also be conducted of the
respective firm and in order to do that PESTLE analysis as well as Porter's Five Force
framework will also be utilised. Moreover to this, effect of the globalisation of the respective
firm's decision making will be included in the report and in accordance to given internal as well
as external evaluation of the company, recommendation will be given to them.
TASK
Internal Analysis of BBC:
Strength
 Innovating marketing strategies –
BBC is one of the biggest brand in the
industry as it give brawny competition
to their coevals and they are usually on
the win win position because of their
successful marketing strategies
(Carrillo Evaristo, 2021). Additionally,
company is very much clear about their
objectives so they concentrates on their
marketing campaigns which always
lead to accomplishment of their desired
objectives.
Weakness
 High cost of operation – It is one of
the main weakness of the company. As
BBC is providing quality services to
their consumers. Whereas, their rivals
are operating their business at lower
cost.
 Various domestic channels – There
are several domestic channels which
are growing to give rivalry to the firm
and it might affect the viewership of
the company.

 Old brand recognition – BBC is one
of the oldest channel and after so many
decades, company has maintained their
standards and they are thriving
consistently. This has created a strong
brand image of the firm which is giving
them immense rise to the business.
Opportunity
 Can become trendy – Earlier BBC
used to focus on only serious news and
now they can focus on shifting their
target market by stepping into the
entertainment, reality programs, kids
channel, technology and many more
(Ciacci, Ivaldi, and Soliani, 2021).
This can help the firm in gaining more
consumer base which will lead to the
long term success of the company.
 Expansion – Company can expand its
operations in different countries by
determining the preference of the
people of that particular market share. It
can help the company in gaining more
goodwill around the world as well as
they are more keen to be successful.
Threat
 Brawny Competition – Competition is
one of the biggest threat to the
company as they are in competition
with several growing channels like
CNN. So, this can lead to the company
low profitability in the market.
 Higher controversies – Company is
facing several allegations as BBC
sometimes report on very sensitive
topics in the world, which leads to the
the increasing disruption by digging
such controversial matters.
External Analysis of BBC:
PESTLE Analysis:
It is the framework which is utilised to know the effect of the external elements of the
company, market or organisation (Demjanovičová, and Varmus, 2021). Moreover to this, it

permits the people or brand to know the vast picture of their external environment they are
placed in.
 Political Factor – Policies that are made by the government plays an essential role in the
business organisation. As because of the change in several policies like tax, foreign trade
as well as instabilities of the government can lead to impact the companies operations. In
context to BBC, presently firm is established in several nations and each possessing their
own political issues (Ghauri, Strange, and Cooke, 2021). So, the emerging instabilities
and tensions in the world's political atmosphere can impact the operations of the company
as well as restrict the success opportunities which are available to the firm.
 Economical Factor – This factor of PESTLE analysis has the leading effect on the
organisation's entire economical success or decline and how the company function their
work in longer period of time. This factor includes inflation, economic growth, exchange
rates and many more. In relation to the BBC, organisation is funded by licence charge
and because of the cost cut of the government budget the organisation is ready to the
government that firm will maintain their fee at the existing price.
 Social Factor – This element of the following framework refers to the social status that
impacts behaviour as well as attitude of the customers of the company. In case of the
BBC, company is leading the digital modifications that functions to increase the living
standards of the consumers with the help of their content.
 Technological Factor – This element involves the latest automation, technology which
minimises the risk of errors as well as makes operations more convenient for the people.
In today's competitive market organisations as well as business firms get support from the
consistent growth in technology. In relation to the BBC, in order to be updates with the
technological growth organisation requires to conduct consistent modifications in their
offerings (Gogokhia, and Berulava, 2021). Additionally company can utilise social
media platform in order to increase their brand recognition in the market area.
 Legal Factor – It means to the several kinds of the laws that are linked to the customer as
well as employee safety, antitrust, health, environment and many more. All types of
organisations need to obey the laws that are made by the government in order to avoid
any legal consequences. In case of the BBC, management need to obey and work with all

the laws as well as norms that are made by the government of different nations in order to
sustain and grow their business smoothly without any legal consequence.
 Environmental Factor – This element means to the ecological factor of the company.
As in current market situation, it has become very essential factor of the macro
environment in which the organisation is working. As due to how the organisations and
business are getting influenced because of the lack of raw material, pollution, natural
resources and many more (Huang, Jie, and Zhen, 2021). In case of BBC, management
can invest in several renewable technology in order to assure their long term success and
it will also enhance the satisfaction of stakeholder and increase the consumer base as well
as goodwill.
Porter's Five Forces of BBC:
This model offers a structure for evaluating the competitive position of the company and
it permits the firm to understand its stability in the industry. It assist in identifying the effect of
the five forces which is bargaining power of buyer as well supplier, competition rivalry, threat of
new entrants, threat of substitutes. Therefore, this model is mentioned below briefly:
 Competition Rivalry – A critical element of this force concentrates on the survival of
the well established competitors that being the main reason for influencing this force by
offering similar goods in the same industry which can lead to the decrease in the market
demand as well as of profitability. In case of BBC, broadcasting industry has many
players but the main competition of the BBC are CNN, Fox News, Sky news and all of
these players are focusing on their expansion abilities, strategies and diversification. So,
this threat is high for the company.
 Bargaining power of buyer – The perspective of how convenient it is for the clients to
influence the rates low on the base of quantity of buyers in the market. It also effect that
the cost to the consumer of switching from one brand to another (Li, and Zhang, 2021).
In context to BBC, as because of the intense competition and availability of several
resources, so the consumer have the broad display of options which has lead to the high
power of the buyer.
 Bargaining power of suppliers – It refers to the suppliers that possess that power of
thrusting up the rates which is based on the uniqueness of their offerings, absolute
strength and size of the supplier as well as cost of switching. In relation to BBC,

company is having the dominant position in the market because of their goodwill so the
bargaining power of the suppliers is moderate for them.
 Threat of new entrants – An industry which is profitable attracts new possible
competitors which effects on the revenue making of the existing company. Unless, there
are abiding as well as brawny barriers to enter for like major capital needed, patents and
many more (Palalić, and et.al., 2021). In relation to the BBC, this threat is low to the
company as in order to enter in such industry, new entrants needs major investment
requirement as well as resources. It is essential for the top level management to
concentrate on providing quality services and maintain their consumer base as it will
assist them in dealing with the new competition.
 Threat of Substitutes – It refers to the firms are afraid that offerings of the other
company might replace their own goods in the same market share and it can lead to the .
In case of BBC, the force is high for the firm as there are various alternatives in the new
industry such as, social media, news papers, internet, magazines and many more.
Impact of globalisation on BBC's decision-making:
Global diversification refers to the strategic choice by which BBC decides to tap into the
global market in accordance to grow, attain sustainable benefit of competition and enhanced its
sales as well as market share in several nations. In addition to this, internationalisation has
enhanced access to data and movement of cultural beliefs and values. It has forced the leaders of
the BBC to alter their style of leadership which can be more beneficial in the sustainability of the
company in the different country (Yustian, 2021). Management should focus on providing
information, evaluate the rates as well as quality of services offered internationally. It has pushed
the management of BBC to focus on the needs of the consumers in different nations more
closely. Additionally, internationalisation has enhanced the uncertainties which has raise the
requirement for utilisation of the risk management equipments in decision-making as well as
implementation of the global techniques.
Moreover to this, enhanced risk of decisions and major competition from the
internationalisation has pushed the organisation to alter their functions across boundaries of the
country in accordance to grow and gain more market share. Internationalisation has impacted the
decision making techniques because of it has made the BBC to change their leadership style in

accordance to the need of the employees of the different nations, use of global diversification,
minimise the barriers and implementation of strategies.
CONCLUSION
From the above report it has been concluded that, it is very much essential for the
respective firm to evaluate its internal elements in which company need to eliminate their
probable threats as well as weaknesses. Additionally, management should focus on optimal
utilisation of their strengths in order to grab their possible opportunities in the market. Moreover
to this, company is operating in a very competitive environment. After the company's external
analysis, it has stated that company is having brawny goodwill in the marketplace and obeying
all the factors and in accordance to that firm takes several decisions.
RECOMMENDATION
 From the above report it has been recommended to the company that before expanding
into the new market area organisation should conduct appropriate research regarding the
needs and wants of the consumers there in that market share. It will assist the firm in
avoiding the expensive scaling errors and understand the exceeding opportunities of the
business permitting the company to reduce the risk before tapping into the new
international markets.
 It has also been recommended to the company that management can send the expatriates
in the country where the firm is planning to expand which can help them in establishing
the business there effectively and efficiently.

REFERENCES
Books and Journals
Adewole, E.G. and Umoru, T.A., 2021. Perceived Influence of Business Environment on Small
and Medium Scale Enterprises Success in Nigeria. European Journal of Business and
Management Research, 6(6), pp.195-200.
Carrillo Evaristo, M., 2021. Ambidexterity in a service company and the business environment
as a trigger for strategic flexibility: a case study.
Ciacci, A., Ivaldi, E. and Soliani, R., 2021. A Potential Business Environment of Smart Cities: A
Subjective Approach. In Strategic Outlook in Business and Finance Innovation:
Multidimensional Policies for Emerging Economies. Emerald Publishing Limited.
Demjanovičová, M. and Varmus, M., 2021. Changing the Perception of Business Values in the
Perspective of Environmental Sustainability. Sustainability, 13(9), p.5226.
Ghauri, P., Strange, R. and Cooke, F.L., 2021. Research on international business: The new
realities. International Business Review, 30(2), p.101794.
Gogokhia, T. and Berulava, G., 2021. Business environment reforms, innovation and firm
productivity in transition economies. Eurasian Business Review, 11(2), pp.221-245.
Huang, Y., Jie, X. and Zhen, W., 2021, August. Research on Construction and Application of
Evaluation Index System of Green Business Environment. In International Conference
on Management Science and Engineering Management (pp. 133-145). Springer, Cham.
Li, J. and Zhang, T., 2021, December. The Influence Mechanism of Business Environment on
the Allocation of Entrepreneurship. In International Conference on Business
Intelligence and Information Technology (pp. 613-622). Springer, Cham.
Palalić, R., and et.al., 2021. Impact of networking and business environment on student
leadership styles. International Entrepreneurship and Management Journal, 17(1),
pp.447-475.
Yustian, O., 2021. Uncertainty of the business environment affecting business success due to the
Covid-19 pandemic. Management Science Letters, 11(5), pp.1549-1556.