Business Environment Analysis: BBC's Structure, Scope, and Functions

This report offers a comprehensive analysis of the BBC's business environment, examining its organizational structure, including departmental organization and its legal structure as a public sector company, and comparing its scope and size to private and voluntary sector organizations. It explores the types of organizations, including public, private, and voluntary sectors, and their respective characteristics and objectives. The report also includes a SWOT analysis of the BBC, identifying its strengths, weaknesses, opportunities, and threats, and analyzes the interrelation of these factors with macro environmental influences. Furthermore, it details the different organizational functions within the BBC, such as finance, marketing, and human resources, and their interrelationships. The analysis also covers the impact of macro factors on the business environment and concludes with insights into the BBC's strategies for navigating its complex operational landscape. References are provided for further reading.

BUSINESS
ENVIRONMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P1. Types of organization............................................................................................................2
P2 scope and size of different organisations ...............................................................................3
LO 2.................................................................................................................................................5
P3- different type of organizational function and interrelationship.............................................5
LO 4.................................................................................................................................................7
P4 Impact of macro factors on environment ...............................................................................7
Impact of macro factor - .................................................................................................................7
LO 4...............................................................................................................................................10
P5 SWOT of BBC......................................................................................................................10
P6 Interrelation of strength and weakness with macro factors..................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business environment is intangible atmosphere for an organisation consist external and
internal factor. An organisation has direct and indirect affect of these factor upon decision
making power and process of the organisation. This report explaining type of organisation and
factor which affect that particular organisation. It specially focuses on public sector organisation
BBC. This report also contain SWOT and PESTEL analysis to identify factor affecting BBC and
strategies used by BBC to deal with business environment by making balance between its
strength and weakness. Different organisation have different functional so an effort is made to
know the policy of different functional unit to achieve the organisation vision and mission.
LO 1
P1. Types of organization
Public organization-
Public sector organization are governed by the government of the contrary or the state.
These organizations get their fund from tax and fee collected by the governments. Public
organizations are works for providing essential product and service to the people of the country
for example – public transportation, electricity, postal services, gas and oil, healthcare etc.
Purpose of public sector organization is insured supply of essentials to the public at low cost,
Infuse employment opportunities, infrastructure development in underdeveloped areas of the
countries and basic service to weaker section of the society. For example BBC is working as
public firm (Bah and Fang, 2015).The main advantage of being public firm is that it gets funds
from government and board members are not responsible for the liability of company. On other
hand it is fully government by governed thus, lack poor focus over generating profit. It easily
gets franchise in other location.
Private sector – private sector companies are operated by the private person or group of persons.
it has main objective of profit maximization. Government has no control on the functional part of
these entities but government regulates its legal structure. Type of Private sector organization are
individual proprietors, joint ventures, partnership ,NGO etc. private sector mainly gives service
in hospitality services, financial services, I.T services, production of luxurious items. Main
objective of private sector organization is to earn profit to further growth and expansion.
Another objective is to choose organizational structure as per its need .it also aim for maintain
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privacy of financial reports, market plan, strategic decision. It shares all the information to its
stakeholders only (Botha, Kourie and Snyman, 2014). The main advantage for business is that it
can expand into other location without looking at government intervention. It can chosen own
strategy for expansion such as joint venture etc. But board of members are responsible for
liability of company.
Sole proprietorship, partnership, limited liability partnership( LLP) are the common legal
structure followed by private organisation.
Sole proprietorship
In Sole proprietorship individuals start its own business as self employment. They don't
required to register their business as company under company act. But they need to pay tax on
their earning. And, for this they required HMRC number for self assismenet.
Partnership:
In partnership framework, two and more than two people come together for same
business purpose. Members has to pay tax on their profit earning and partners also responsible to
pay liability obligations too. But company (separate legal entity) is not liable to pay corporate
tax.
Limited liability partnership :
There is only one and significance difference between ordinary partnership and LLP, that
in LLP member are not legally bound to pay debts and liberalities personally.
Voluntary sector organization- these organizations have faith to work for society. These
organizations use its earning for social benefits or to make adequate arrangements to
organization itself. Type of voluntary organizations are environment safety groups , free
education, health awareness, advocacy groups, foundations, community groups, charitable trust
works etc. these are non profits as well as nongovernmental in nature. Main objective of these
sectors are work for social accomplishment and welfare of the weaker section of the economy.
Paid and unpaid voluntaries both work in it for social cause (Cai and Yang, 2014). Its main
advantage is that it can fund from big organisation thus, it needs not to think much about funds
and expenses. But it is difficult to gather volunteers and expand operations.
Legal structure of public sector organization-
Legal structure for BBC-
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BBC is public Sector Company working in UK. it is government organization broadcast
news in languages. It use TV, radio and online website as its medium. BBC has departmental
origination structure. Departmental organisation are operated by ministry of government. BBC
acquire its license from home ministry of UK government which is written in royal charter. It
has BBC board at top of the legal structure .This board formulate strategy for all the service and
check performance of BBC executive board. Second level consist BOARD OF EXCUTIVES
makes short term planning for day to day work (Dawson and et.al .,2016). Board of executive is
directed by director general. Each executive has sub division of BBC under them for example
operational division and commercial division .board of director take advice from government in
policy making.
P2 scope and size of different organisations
Public (BBC) Private (McDonalds) Vo (NHS)
Vision BBC have mission to
establish itself as most
trusted and creative
organisation in
journalism in whole
world. It also wants to
provide quality
information and
education to its
viewers.
Mc Donald have the
vision to provide
maximum customer
satisfaction and it has
aspiration to become
customer's property
when it comes to food
and drink (Khan, and
Quaddus, 2015).
NHS is a voluntary
sector organisation
which has vision to
provide high quality
health service with
personal care to each
patient. Practice the
best communication
practice to know the
problem of patient like
listen them carefully.
Market share BBC has 31.57% share
of total viewers of the
industry.
MC Donald has 17 %
of food and drink
industry in U.K.
NHS has small market
share in total voluntary
service provider in
UK.
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Objectives BBC has objective to
customised its content
according to targeted
audiences, maintain
quality of giving
information,
technological develop
to reach to younger
audience.
Objective of the MC-
Donald is to provide
fresh and best quality
food to customer and
maximum return to its
stakeholder as well as
practice good social
responsibility.
NHS want to serve the
best health care to
weaker section of the
society. Help the
government in making
health policy
nationally (Laszlo and
Cescau, 2017).
Scope BBC limited scope to
diversify and
expansion because it
has to take permission
and advice from
government. It has less
autonomy of decision
in comparison of
private and voluntary.
Private sector as MC
Donald has imminence
scope to grow,
expansion and
diversification.
Because it has less
control of government
in decision making as
well as it has profit
maximisation
objective is possible
only expand its
business (Mutuku,
2014). To expand their
business in with in
domestic country, they
prefer franchise. To
establish business
outside the country
joint venture is best*.
Voluntary sector has
very small scope of
expand the business.
As it has less money
for making innovation,
hiring staff and no
adequate money for
marketing. This sector
earns the money and
spent it on acquiring
essentials to weak
people. It does not
have high retain
earning with it.
Legal structure BBC is departmental Mc Donald have type Legal structure of
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unit of government. It
has to take its licence
with home ministry. It
has board of director
on top, board of
executive of each
department under them
and other functional
manager after
executive board of
director.
of organisational
structure It has CEO
directors for all its
business globally. Mc
Donald has
performance based
division . It establishes
a separate division on
the basis of
performance of
particular department
all other organisation
structure it has
functional unit like
finance, marketing,
hr.etc (Wetherly,
2014).
voluntary are trust in
which trustee perform
all the administrative
works. Another is
associations in which
membership is
required to every
individual and these
members perform all
the duties.
Note*
Franchise: it is a market expansion strategy, in which franchisor allow franchisees to produce
and distribute the owner company product and service. Franchisee has to pay agreed amount to
franchisor as earning and profit. Like Mc Donald already has approximately 1100 franchises
within UK.
Joint venture: it is a stargic alliance of two business entities. When an organisation wants
increase its market size with uncertain situation, they prefer this growth model. For instance Mc
Donald has joint venture with CITIC Ltd and CITIC Capita in china. These both are big real
estate group, Which help Mc Donald to grow in china. Company make JV because it is do not
enough knowledge of about marketing condition, cultural aspects and distribution channel in
china.
LO 2
P3- different type of organizational function and interrelationship
Organisation chart
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BBC implements tall structure because it has now become very large to handle its
function. In organisational structure number of department are increased which have same work
of nature of work. Each department work in small area. For instance in above picture there are 9
staff department and they all have same work and small area to perform.
Organization functions includes production, finance, human resources and marketing.
These functional departments are interrelated. BBC applies departmentalisation system which
have finance, human resources and marketing department.
Difference departments and their interrelationship.
Finance department deals all with money. it maintains financial records,keep eyes on
cash flow ,manage working capital, make borrowing arrangements,, budget allocation, check
financial feasibility of any plan, make financial reports for stakeholders etc. marketing
department put its effort to maximize the sale. For increase the sale it has to make various
expenses on promotions ,advertisement, salary and bonus to sale team ,website development, etc.
marketing department avail its fund from finance department (Wheelen and et.al., 2017).
Marketing department make marketing budget to give information about possible expenditure on
marketing and it also makes marketing sale reports so that finance department can check the
performance of marketing effort by ratio analysis.
Human resources and finance department have indirect relation. H.R well know for
managing human capital. When its come to relation between these two HR gives idea to finance
department for expenses make on recruitment and selection process, training and development,
benefits given to employee. Finance give fund to H.R for its smooth working as well as it also
give advice to H.R department for its policy regarding compensation, bonus Incentives etc.
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H.R supply human capital to marketing department as per their need (Adamkashi, 2017).
H.R insure the job role, skill and competencies of individual so that marketing department
efficiently use this source. H.R give training and development to the employee to adopt the
required change demand by marketing team (Dibrell,Fairclough and Davis, 2015).
Marketing department give information to H.R about market trend in context of
employee. like amount of salary offer by their competitors, the latest technological training
requirement, motivational requirement etc. HR use this information in hr policy so that it can
attract the best talent. Marketing department also build image of the organisation in market. This
brand image help HR to get large pool size in recruitment. all the department contribute to
organisation vision and mission of increase profit, large market sharing, increases production try
to make brand image in market as well as among all the stakeholders (Matrix Organizational
Structure – A Quick Guide, 2018).
BBC is board works as finance department. This board make budge and check
performance of each sub department. Comptroller and auditor general check account reports on
the behalf of BBC and provide it to its stakeholders and subsidiaries. Executive committee
perform day to day function related to marketing efforts of BBC and manage its human capital
in accordance with broadcast service providing organization (Wetherly, 2014).
All the departments are working together to achieve vision statement of the company. For
example BBC has vision to establish itself as most trusted and creative in the world. Creativity
of human resource insure this vision because BBC work as new provider. Its mission objective
includes to provide relevant information , and awareness among the people which can
accomplish by proper financial resources and budget (Cai and Yang, 2014).`
Business function and organisational goal:
A business has ultimate vision is to gain higher profit margin, bi market size and
competitor advantage. These objective are reach by organisation function as follows:
Different departments work together for attainment of common goal. Their work have
interdependency, which ensure the product and service quality. HR turns an inefficient group
into efficient team, which imply their individual learning to correct the organisation differences.
These corrective action lead to reduced wastage, lower cost, fewer accidents and mistakes, which
eventually help in gaining competitor advantage. Prod t innovation done by research and
development team render customer experience. And, increased customer experience, enlarges the
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market size and share. Marketing teams efforts contribute in earning more profit by their sales
oriented efforts.
LO 4
P4 Impact of macro factors on environment
Micro factor is set of internal factor which affect a business, Where macro factor affect
the business from outside business environment. External factor can not be controlled. Theses
factor can create variation in performance and output desired by the organisation.
Impact of macro factor -
Political factor
Governments rules, regulation and policies are considered as political factor. Political
have so many positive influence on business as well as public. Government provide
infrastructure facility, tax rebates, public service facility like easy loan ,well defined set of rules
and regulations regarding labour law, contactor law, health and safety law, consumer protection
law etc.
Positive impact: government make financial law which help organisation to take
borrowing from the local market, sometime government financially help bankrupt. BBC take
fund and assistance from British government (Bah and Fang, 2015). BBC is at strong side as
compare of other new channels because it is very close to government, so that it can acquire
information direct form UK authority.
Negative: – government sometimes inter fair in business activities for public interest
which slow down the de scion making , frequent change of government can result the frequent
change in business policy also. Strong government control over the business entities losses the
autonomy in business decisions, government can change the labour law, employment law in
election time to please trade unions and workers. BBC is strongly controlled British by home
ministry. BBC's news cotent get checked under “review of Royal Charter”. As organisation has
high centralised structure, it had to face problem in getting the resources to obtain technological
change in Mid 1990s
Economical factor
Positive impact : Economical factor consist income level of people, tax, employment
rate, labour cost, interest rate, exchange rate etc. economical factor give an estimation of income
expenditure, product are customised according to disposal income of the people. Finance
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department take borrowing, funding, expenses. BBC had to change its organisational structure
and culture from ‘centralised’ to ‘decentralised’ because of changing trend in economic. This
changes bring betterment in its business activity. BBC even get positive image among people
mind as they opt less bureaucracy(Botha, Kourie and Snyman, 2014).
Negative factor:economical factor can increase the cost of the production like increase
labour cost, high exchange rate, high interest rate on loans. It can also reduce the sale if there
high inflation in economy and less employment rate.
Social factor-
Positive impact : Social factor give information about trend and choices of the people
which a business use as segmentation, targeting and marketing practices. BBC changes the
advertisements contents according to cultural practice of particular country. People have negative
tendency for centralised organisation structure. They think their fund can be misused by some
strong people, who are seated on higher position. When BBC changed its approach, it also earns
the trust of people regarding their investment. Now people like to put their money in BBC
without fear, company also avail the finance without much effort.
Negative impact : social factor set a boundary to business in which it has to perform all
the activities. Like organisation have to provide its service according to acceptance of people .
For example BBC do not use religious controversial advertisement in Asian country (Cai and
Yang, 2014).
Technical factor
Positive: technological factor are change in technical process used by the specific
industry. Technological changes increase the production, efficiency, competency, customer
satisfaction. It reduces the wastage and human error possibility. BBC use talk walker to keep its
eyes on social issues. Technology helped BBC as increased market share. The Latest
broadcasting satellites help in smooth internet facility. Now BBC can broadcast its news across
the word.
Negative impact: frequent change in technology can increase the cost on innovation,
research and development and training burden. Organisation have to do frequent hiring of
technical sound person, high cost of the latest software and production machine. BBC has huge
of cost of designing graphic software and latest technology using in journalism. At early stage of
technological changes organisation had faced issue in acquire the technological competency.
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Even allocation of resources also was a big headache like it has to put its money simultaneously
in Business Process Re-engineering and investments in radio and TV in order to adopt the digital
revelation.
Environmental factor :
It is the affect the climate nature environment and the geographical factor.
Positive impact: In BBC environmental factor is a digital factor because of the company
use the broadcasting that is flexible. Throw the environment the industry develop new treading
system. BBC had to change its structure in order to counter the impact of Globalisation of
broadcast industry, it also brought reconstruction. This change also influenced the
materialization. It improved the trading system.
Negative impact : Some areas the broadcasting are restricted because of the globalisation
impact. The Government instruction in areas the company not apply the company broadcasting
for the health and environment effect. Deregulatory environment forced BBC to change its
company's culture and internal environment in the 1980s.
Legal factor
Legal factor consist various law and regulation which are made the government to
protect public interest. Like consumer law, employment law, health and safety law, patent law
etc. it will increase.
Positive factor: legal factor provide a lawful simple and easy framework that will help to
reduce legal problem and effect of the BBC company.
Negative factor: some law increase the cost with giving any input like salary given to
pregnant lady in maternity leave , consumer law increase the recall cost. BBC paid huge amount
as fine for broadcast sensitive issue which is breach of broadcast law (Dawson and et.al .,2016).
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