Understanding the Business Environment - BBC and HSBC Holdings Plc

UNDERSTANDING THE BUSINESS
ENVIRONMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
TASK – 1.........................................................................................................................................3
Introduction of BBC....................................................................................................................3
Purpose and objectives of BBC Television.................................................................................4
Market structure in which BBC operates.....................................................................................4
Role of market structure in gaining competitive advantage........................................................4
TASK- 2...........................................................................................................................................4
Definitions...................................................................................................................................4
Stakeholder analysis of BBC.......................................................................................................5
TASK - 3..........................................................................................................................................6
Reasons that state the importance of business environment........................................................6
PESTLE analysis of HSBC Holdings Plc....................................................................................7
Importance of Porter’s Five Forces Model..................................................................................8
Porter’s Five Forces of HSBC Holdings Plc...............................................................................8
Critical influences arising from the competitive market environment........................................9
TASK-4............................................................................................................................................9
Development of the business with reference to short-term and long-term performance............9
Recommendations......................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
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INTRODUCTION
Business environment can be defined as a sum total of the different types of factors
namely, internal and external factors that affects the business operations of an organization. The
internal and external factors include employees, customers, suppliers, customer preferences,
social factors, economic factors and many more. The present report includes discussion of the
factors affecting the business operations of two reputed organizations i.e., BBC and HSBC
Holdings Plc. The BBC is a national broadcaster company based in London, United Kingdom
and the HSBC Holdings Plc is a financial services company and multinational bank which is also
headquartered in London, United Kingdom.
MAIN BODY
TASK – 1
Introduction of BBC
BBC stands for British Broadcasting Corporation. It is a national broadcasting company
based in London, United Kingdom. BBC television is a service of the BBC company. The BBC
television is a Public Owned company which was founded in the year 1922 i.e., 99 years ago.
The company belongs to public television services and provides and produces several television
programmes from its own studio since the year 1932 (Nguyen, Mohamed, and Panuwatwanich,
2018). The Domestic channels of BBC do not provides the audience with any kind of advertising
that is commercial in nature, however, in the years 2013, the company had recorded a mark of 30
% within United Kingdom with respect to overall viewers among the nation. A public owned
company can be defined as a company where the ownership of the enterprise is with the general
public of the nation in the form of shareholders. Anyone can become a general public
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shareholder of the company by purchasing and selling of shares over the counter within the
market or with the help of stock exchange. The BBC Television is a provider of various services
to the existing audience of the company as it provides them with 10 national TV channels,
regional TV programmes, 10 national radio stations and 40 local radio stations, and an internet
TV service within the nation. It also provides the audiences with these services through out the
world and also offers news by ways of online channels as well as TV channels in 42 languages
and English across the globe.
Purpose and objectives of BBC Television
The major purpose of the BBC television is to provide the audience with content that
helps them in engaging the audience towards the brand and providing them high quality,
effective, and impartial services which helps the company in catering to the needs of the
audience (Sentanu, Galih, and Wismanu, 2021). Also, it aims to inform, entertain and educate
the audience by offering them with high quality content.
Market structure in which BBC operates
Market structure can be described as how diverse industries are categorised and
distinguished on the basis of the nature of the competition with respect to its products and
services. There are mainly four types of market structures namely, perfect competition,
oligopoly, monopoly and lastly, monopolistic competition. However, it has been determined on
the basis of the nature of products and services of the BBC television company that it falls under
the category of monopolistic competition within the market. A monopolistic competition market
can be described as a market structure in which there are a number of companies that are offering
a product that is similar to the products offered by other brands however, it is not exactly the
same or identical in nature (Nataliia, Dmytro, and Igor, 2018). Similarly, there are various other
television companies which offers services that are similar to the services provided by the BBC
television and therefore, falls under the category of monopolistic competition.
Role of market structure in gaining competitive advantage
Each of the market structure has its own set of advantages and disadvantages. The market
structure refers to the competition between different firms within a particular market structure on
the basis of the products and services offered by them. The market structure which allows the
firm to gain competitive advantage includes monopolistic competition, and oligopoly market
structure.
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