Business Environment Analysis: The BBC vs. Netflix

BUSINESS ENVIRONMENT
ANALYSIS OF THE BBC VS
NETFLIX

Table of Contents
INTRODUCTION...........................................................................................................................2
MAIN BODY...................................................................................................................................3
1. Functions and Organizational structure of BBC................................................................3
2. Pestle Analysis....................................................................................................................5
3. SWOT analysis...................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Today, entertainment has become one of the most important aspect of the lives of human
beings. Streaming platforms across the world are fulfilling the needs of entertainment of these
people allowing them to choose their particular source of entertainment. The below report
explores the organisational functions and structure of BBC. The British Broadcasting Company
is a British Public Service Broadcaster. The organisation was founded in 1922 and its
headquarters are situated in London, United Kingdom. It compares these aspects of BBC with
the streaming service Netflix (Reichmann, 2019). The report further develops a PESTLE analysis
in order to evaluate the internal environment of the organisation and a SWOT analysis to explore
the important strengths and weaknesses of the organisation.
MAIN BODY
1. Functions and Organizational structure of BBC
Its is important for an organisation to have a proper organisational structure in order to
achieve set growth and advantage and ensure proper management. The organisation is a British
public service broadcaster. It is one of the oldest and the largest broadcaster in the world by the
number of employees. The total number of staff is 35,402 and in order to manage this properly a
supportive and better organisational structure is made for the organisation. The organisation is a
corporation which is independent from direct intervention of the government. The activities of
the organisation are overseen by the BBC Trust which also refers to has the Board of Governors.

(Source: Gliffy, 2019)
The above illustration showcases the organisational structure of BBC. The organisation
operates with the Head board of Governors which makes important decisions to make or bring
changes in the organisation. Under the Board of Governors the director general is the person
which tends to manage the activities of the organisation. In case of its competitor Netflix, its
organisational structure is not complex as BBC's. The CEO is the main authority who makes
important decision in the organisational environment (Jenner, 2018). He provides directions to its
employees in order to achieve set growth for the organisation and the overall functions as per the
given directions of the CEO.
BBC's Director General is the main authority who is responsible to make required
decisions in the organisation. The director general understands and evaluates the activities done
by the organisation and the particular needs of the community in which it is serving. These all
efforts are input by the organisation tends to make the organisation better and strong and it
develops a scenario where the management is working in cooperation in order to achieve set
growth and advantage.
The functioning of the BBC includes four core departments which are its Television,
Radio, Internet and Mobile service provisions. These departments particularly ensures that the
Illustration 1: Organizational Structure of BBC

right services are reaching to the customers by using the broadcasting service platforms across
the world. The other departments which ensures effective functioning within the organisation is
Human Resource, Marketing, Sales, Research and Development, Production, etc. These
departments ensure that the organisation is achieving required growth and advantage and
ensuring proper service provision to its customers. For example, the marketing department of the
BBC ensures that the organisation is promoting itself properly with the usage of right
advertisements and campaigns to gain profitability and business growth (Nielsen, 2016).
Whereas the functioning of Netflix includes department such as Production in which the
production activities are ensured and taking place within the organisation.
The other departments which are included in the functioning of Netflix includes
marketing, human resources, accounting, sales, and research and development. Proper research
and development allows the organisation to reach new standards and develop its streaming
services to the maximum.
(Source: A strategic management case study, 2019)
2. Pestle Analysis
Below explored is the PESTLE analysis showcasing the impact of macro-environmental
factors on the decision making and objectives of Netflix:
Illustration 2: Netflix Organizational Structure

Political: The major political factors which impacts the organisations includes
governmental policies on the streaming platforms and services. The government of United
Kingdom is has imposed a number of policies. BBC has to perform under these policies and is
not having required freedom to operate as per the set needs and requirements. This impacts the
achievement of objectives for the organisation and the management's decision making to perform
freely. In comparison to BBC, its rival Netflix is having required freedom to produce and
develop entertainment programmes provided by the government of United States in order to
achieve set growth and advantage. This allows Netflix to develop its services accordingly to the
needs to global customers and stand as a better streaming platform in the age of globalisation.
Economical: The economical conditions of United Kingdom often make the BBC grow
and suffer both. For example, the recent issue of Brexit made the organisations' management
suffer in terms of making required decisions to maintain its position in the country economics. It
impacts the decision making of organisation's head directors as most of the services provided by
BBC were blocked in the other countries of Europe because of exit of Britain. It rival Netflix is
having freedom of performing as per its set needs and make required decisions to achieve set
growth as the conditions of United Kingdom are favourable to the company.
Social: Factors such as consumer needs and demands often impacts the decision making
of the organisation. Consumer needs of the entertainment when are shifted towards its
competition such as Netflix and Amazon Prime, the organisation tends to face difficulty in
maintaining a better place in the global market. Also, these demands are impacted from the
globalisation and global consumer needs.
Technological: Arrival of new technology such as robotics and artificial intelligence in
the age of globalisation helps BBC to improve its organisational efficiency and achieving its
objectives. It helps the organisations management to make required decisions in promotion and
marketing of the organisation and deliver its services to the people effectively. Its competitors
such as Netflix is having an easy availability of the new technological advancements which is
allowing the company to provide effective services to its customers fast than BBC.
Environmental: Global warming and climate change are the major environmental
situations making the organisation facing difficulties in making required decisions and achieving
its objectives. Globalisation has made the company to reach in new markets and for this it has to
develop satellites broadcasting techniques. The rising temperatures in the environment has made

it difficult for both BBC and Netflix to ensure proper provision of services to its customers by
using appropriate satellite communications.
Legal: Legal implications in the global environment sometimes create hindrance for both
BBC and Netflix. For example, in countries where its services are banned are not allowed to be
shown often creates difficulties for the organisation to achieve its set objectives (Jenner, 2018).
Along with it, strict policies and regulations sometimes makes it difficult for the organisation to
make required decision for the organisation.
The above mentioned PESTLE factors explore in what ways decision making and
achievement of objectives is hindered by the external factors in BBC and Netflix.
3. SWOT analysis
Below explored is the SWOT analysis of BBC explaining in what ways the
organisational environment is impacted by the globalisation and its competitors such as Netflix:
Strengths: BBC is having a large consumer platform and its services are being used
globally. Consumers today when think of fresh news and entertainment they immediately tune to
BBC. It is one of the core strengths of the organisation. The political environment is supportive
to the services of BBC in United Kingdom. Also, the global needs are being fulfilled because the
organisation is having a strong reputation since the last 50 years. These strengths are going to
help the organisation in achieving set goals and objectives properly in the future. Netflix has
made it difficult for the organisation to maintain its reputation in the global environment because
people are shifting towards online streaming platforms. It makes the decision making of
organisation difficult in terms of achieving its objectives and ensuring growth and development.
Weaknesses: BBC is having a consumer base which is can be easily shift towards its
competitors when they tend to provide better services and sources of entertainment (Grainge and
Johnson, 2018). Netflix has taken over the market of BBC because of surrounding issues such as
Brexit and Trade war in the global environment. This has made it difficult for the organisation to
develop its products and services and ensure better growth and advantage in the market.
Opportunities: Internet is a large opportunities for BBC. The organisation can launch its
new platform where it can mainly service entertainment programmes to its customers.
Threats: The major threats which are impacting the organisation in the global
environment includes streaming platforms such as Netflix and Amazon Prime (Lobato, 2019). It

is important for the organisation to develop its products and services according to the needs of its
consumers as seen above and by understanding its competition as well.
CONCLUSION
The above report identifies the current place of British Broadcasting Service in the global
environment. It develops an understanding how it competitors such as Netflix and Amazon
Prime are impacting its services. The report showcase the PESTLE analysis to explores the
macro-environmental factors and SWOT analysis to explore the internal factors impacting the
decision making and growth of the organisation.

REFERENCES
Books and Journals
Grainge, P. and Johnson, C., 2018. From catch-up TV to online TV: digital broadcasting and the
case of BBC iPlayer. Screen. 59(1). pp.21-40.
Jenner, M., 2018. Introduction: Netflix and the Re-invention of Television. In Netflix and the Re-
invention of Television (pp. 1-31). Palgrave Macmillan, Cham.
Jenner, M., 2018. Netflix and the Re-invention of Television. Springer.'
Lobato, R., 2019. Netflix Nations: The Geography of Digital Distribution. NYU Press.
Nielsen, J. I., 2016. Points of contact, points of distance: DR/TV 2 meet HBO/Netflix. Northern
Lights: Film & Media Studies Yearbook. 14(1). pp.29-45.
Reichmann, B. T., 2019. " Tough to compete": Adaptation of Michael Dobb's trilogy, House of
Cards, by the BBC and Netflix. Ilha do Desterro A Journal of English Language,
Literatures in English and Cultural Studies. 72(1). pp.213-234.
Online
Netflix Organisational Structure. 2019. [Online]. Available through:
<https://slideplayer.com/slide/4317151/14/images/21/Organizational+Structure.jpg/>
Organizational Structure of BBC. 2019. [Online]. Available through:
<https://go.gliffy.com/go/html5/launch/>