Business Environment Individual Case Study

This case study analyzes the internal and external environment of BBC, including SWOT and Porter's five forces analysis. It also discusses the impact of globalization on decision making and provides recommendations for improvement. The report is useful for students studying business environment and related courses.

Business Environment Individual Case Study

Table of Contents
1.Introduction ..................................................................................................................................3
2. Internal Environment (SWOT) ...................................................................................................3
3. External Environment Analysis...................................................................................................4
4. Impact of Globalisation on BBC’s Decision Making .................................................................7
Conclusion ......................................................................................................................................7
Recommendations to the BBC ........................................................................................................8
References .......................................................................................................................................9

1.Introduction
The business environment comprises various factors such as customers, employees,
clients, suppliers, customers, competitors, suppliers, and many others. All the factors that are
internal and external which carry threats and opportunities for the company. The report will
cover the understanding of the internal environment of the BBC, which is one of the leading
corporations in the broadcasting sector which is headquartered in London. The purpose of the
report is also to evaluate the external environment of the company (Hermida and Young, 2019).
As there are various factors that are outside the organization such as economy, society, political
system, regulations, and many others. The report also studies the impact of Globalisation on
Decision Making of BBC because globalization is a link between trade and cultural exchange
which depends upon numerous factors such as environmental, political, and economical factors.
The report also provides recommendations to the company so that it can perform better in the
market with the other competitors (Hamilton and Webster, 2018).
2. Internal Environment (SWOT)
SWOT analysis is one of the best strategic planning tools that can be used by the
management of the BBC in order to understand the situational analysis of the firm. It is
considered to be a vital technique to figure out all the strengths, weaknesses, opportunities &
threats the business is facing in the current business environment. The BBC is one of the leading
firms in the industry and it holds the main position in the market. With the help of SWOT
analysis, the company can coordinate among various departments of the organization for
example marketing, finance, operations, management information systems. The SWOT Analysis
outline benefits an organization to identify its internal factors such as strengths and weaknesses,
& external factors such as opportunities and threats. Internal analysis of BBC is explained
below-
Strength
 The chosen company has a strong
image and is one of the oldest
broadcasters in the world.
 BBC is highly advanced as it has one of
the best technical and graphic designs
Weakness
 The operating cost of BBC is high
which is one of its weaknesses and
other competitors are operating at a
lower cost.

in the market.  It has also been part of controversies as
it highlights the sensitive and
controversial issues in the world.
Opportunities
 It is a popular name in the news and it
can also expand into the various zone
that like fashion, entertainment, kids’
channels, and many others.
 Company has a joint partnership with
other satellite channels that will bring
new opportunities for BBC.
Threats
 It has strong competition from new
channels for example CNN, Fox News,
ITV, and many others.
 The domestic channels are also
increasing in the market which can be a
threat for the company as it can create
an impact on the viewership of the
BBC.
The above-mentioned SWOT analysis mentioned the various strength and weaknesses of the
firm. Such events can take place in the coming future and make a strong impact on the
performance of the company (Liu, 2021).
3. External Environment Analysis
Micro Environmental Analysis (Porter five forces) 400
Porter’s five forces is a framework that helps in analyzing the various competitive forces
of the industry and the forces are Competition in the industry, Potential of new entrants into the
industry, Power of suppliers, Power of customers, and Threat of substitute products.
 Competition in the industry- Being in the news industry, all the companies hold an
important place in the sector. The company has strong competition for example CNN,
Fox News, ITV, and Sky news. Likewise, the company also needs to focus on
differentiating its services so that the actions of competitors will have less effect on its
customers that seek its unique products. The company is growing that is why BBC can
give attention to new customers instead of doing competition with the existing companies
(McLean, 2018).
 Potential of new entrants into the industry- BBC can take advantage of the economies
in the industry by focusing on the new innovations so that it can differentiate its products

from that of new entrants. The company has to spend on marketing and advertising in
order to build strong brand identification in the market. This will help the company in
retaining its customers rather than lose them to new entrants to the market.
 Power of suppliers- As the number of suppliers in the industry in which BBC operates is
more as compared to the buyers. That is why the suppliers have less control over prices
and this makes the bargaining power of suppliers a weak force for the chosen company.
Also, the products and services these suppliers provide are fairly standardized and less
differentiated with low switching costs. This makes it easier for buyers like BBC to
switch suppliers easily. This sorts the bargaining power of suppliers a weaker force.
Along with it, there are no other substitutes for the product other than the ones that the
suppliers provide. This makes the bargaining power of suppliers a stronger force within
the industry.
 Power of customers- BBC should focus on innovation and new techniques with the aim
of attracting buyers. Quality of service is essential for the buyers in such an industry that
is why BBC can attract a number of new customers by implementing the above-
mentioned point. Also, the company can also build a large customer base and that can be
done by marketing efforts aimed at building brand loyalty (Morrison, 2020). Threat of substitute products- The very few substitutes are available in the news industry
as it is an expensive and high-quality industry. The competitors are providing the services
at a lower price with adequate quality. It can be said that the buyers are less likely to
switch to substitute products or services. This means that the threat of substitute products
is weak within the industry. IT can also target on providing greater quality in its services.
As a result, buyers would choose BBC over other companies (Golder and Mitra, 2018).
Macro Environmental Analysis(PESTLE)
The general business environment of the business firm comprises the internal as well as the
external environment on the basis of which business strategies can be taken into consideration.
With context to the chosen company i.e., BBC which is a British online supermarket and is also

described as the world's largest dedicated online grocery retailer. Management of the business
firm takes key considerations for analyzing the business environment of the business firm that
allows providing a better work environment under which aims and desired objectives of the
business firm can be achieved. Being in a broadcast business firm faces the threat of competition
while operating various business tasks in the market. For the purpose of analysing key external
factors affecting the working of the business firm PESTLE analysis for the business firm is being
taken into consideration (Sargent and et. al., 2018);
 Political: Political factors are considered to be the important factors that affect the
working of the business firm. Under such factors, key considerations to political laws,
Bureaucracy, taxation, etc. are being taken into consideration. The company when
operating and engaged in an open market then, has to face difficulties as these factors
affect the productive workings of the business firm. BBC is a self-regulated company
and there are a number of government agencies that help in reducing the risk of vast
pressure by one agency. On the other hand, it affects both the time and cost of doing
business and getting certifications and clearances (Collinson and et. al., 2020).
 Economic: Economic factors comprise various elements like inflation rate, saving rates
foreign exchange rates, and many others. In reference to the company, the demand Shifts
from Goods Economy to Service Economy that is why the share of services in the
economy is increasing as compared to the share of manufacturing, goods, agriculture
sector, and many others. Also, when the GDP rate increases that are a clear sign of
increased demand in the economy. BBC can adopt such economic trends by expanding
the level of its product range and targeting new customers by providing the best services.
It can be done by studying the behaviour of the consumers and monitoring their buying
behaviour.
 Technological: innovative technological factors are being taken into consideration as it
can be a high threat for the business firm because the competitors of the BBC can also
make use of such technology with the aim of getting better in its working. The chosen
company also interacts with people by using social media and also gathers feedback by
making use of social media channels. Along with it, companies like BBC have also
started using social media for the aim of recruitment and also highlighting the trends in
the business community in reference to social media.

 Environmental Factors: Customers are becoming more aware of environmental factors
that why it led to an increase in demand for recycled products for the purpose of
consumption. BBC should also tie-up with various waste management authorities so that
they can implement all such activities in the company to avoid any hassles in the future.
 Legal Factors: BBC should consider all the legal factors of the country such as BBC
should know about the consumer laws in order to understand the behavior of authorities
towards consumer protection laws. Along with it, transparency is important for the
decision-making process. Moreover, BBC has always given a high level of importance to
the health and safety of the employees so that it can be more beneficial for both
employees and the company.
4. Impact of Globalisation on BBC’s Decision Making
Globalization has allowed the free movement of labor and capital across international borders
and now the people are able to work in another country. This has led to bringing more financial
freedom in various countries. It is a global trend and affects the transfer of the values and beliefs
& the company. Due to globalization, governments have reduced the number of barriers to
international trade and most countries have got benefits due to this. It is seen that some
governments still protect their national firms from intense competition in the market. This
suggests that management decides whether to enter a foreign market or not that will be based on
international trade barriers of the country. Such factors affected the decision-making and
adapting strategies as the global environment changed of the company (Biswas and et. al., 2019).
Conclusion
The changes in the business environment are unpredictable and that can be a risky
situation for the company that is why with the aim of predicting the nature of future happenings
of the economic and social environment the chosen company can make use of various
frameworks. The report highlighted such frameworks as SWOT, PESTLE, Porter’s five forces
with the ultimate goal of analysing the external and internal environment. Globalization has
allowed the free movement of labor and capital across international borders and now the people
are able to work in another country. The report also highlighted the impact of globalization on
the decision-making process of the chosen company. Also, there are some recommendations for
the BBs in order to get rid of the loopholes of the company (Barnes, 2018).

Recommendations to the BBC
From the above-given information, it has been recommended that mass industry is a medium in
delivering the news to the public. There are some recommendations to the chosen organization
which are explained below-
 It must ensure that information which is provided by the BBC must be reliable and not
fake as many people trust the company. Regular feedback from the customers is also
essential and also pay attention to the suggestion of the customers as a reminder of the list
as it can be a game-changer for the company. The company will be able to discover its
potential with the help of suggestions.
 BBC can conduct market research to understand the supply-demand situation within the
industry and prevent overproduction. It must provide such content which the people
really want. Instead of following the market trends, the company should provide quality
and real content for creating high value for its clients.
 Along with it, the management should be more strategic and be very good in delegating
the work to others and they should delegate the right things to the people at the right
level. That will further enhance the level of productivity of the company in the market.

References
Books and Journals
Barnes, D., 2018. Operations Management. Macmillan International Higher Education.
Biswas, S., Sharif, K., Li, F., Maharjan, S., Mohanty, S.P. and Wang, Y., 2019. PoBT: A
lightweight consensus algorithm for scalable IoT business blockchain. IEEE Internet of
Things Journal, 7(3), pp.2343-2355.
Collinson, S., Narula, R., Qamar, A. and Rugman, A.M., 2020. International business. Pearson
UK.
Golder, P.N. and Mitra, D. eds., 2018. Handbook of research on new product development.
Edward Elgar Publishing.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Hermida, A. and Young, M.L., 2019. Data journalism and the regeneration of news. Routledge.
Liu, X., 2021. Chinese multinational enterprises operating in Western Economies: Huawei in the
US and the UK. Journal of Contemporary China, 30(129), pp.368-385.
McLean, D.F., 2018. The great british broadcasting competition: A multi-disciplinary analysis of
the emergence of BBC television. Media History, 24(1), pp.46-70.
Morrison, J., 2020. The Global business environment: towards sustainability?. Red Globe Press.
Sargent, K., Cooper, J., Mellwig, B. and McDonald, M., 2018. Coworking and the disruption of
the current corporate real estate model. Corporate Real Estate Journal, 7(3), pp.267-276.