Business Environment

This document provides an overview of the business environment, specifically focusing on the type, size, and scope of the BBC. It also explores the interrelationship of functions in the organization structure and analyzes the internal and external influencers on business operations through PESTLE and SWOT analyses. The document discusses the impact of political, economic, social, and technological factors on the BBC's decision-making process.

Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
The type, size and scope of the BBC..........................................................................................1
The interrelationship of functions on organisation structure......................................................2
Internal and external influencers via a PESTLE and SWOT analyses on business operations.. 4
The influence of globalisation on organisational strategy and decision making........................7
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business environment refers to the sum of internal and external factors of company that
have an impact on its production system. It is significant collection of individuals and and
several significant internal and external factors that controls performance and productivity. It
helps business to understand about the various factors that have an impact on its performance
and productivity. BBC is an public service broadcaster channel, it known as British Broadcasting
Corporation operates at broadcasting house Westminster, London(Aggarwal, Mittal, and
Rasheed, 2019). BBC is world's oldest national broadcaster and also largest broadcaster by
number of employees. Organisation is employing over 22,000 staff. In this report information
about type, size, scope of BBC is included, also interrelationship between the various function of
organisation structure, to analyse internal and external factors that have an impact on the
organisation PESTEL and SWOT analysis is included. And in the last various influence of
globalisation on organisational strategy and decision making process.
MAIN BODY
The type, size and scope of the BBC.
Type of BBC organisation:
The BBC is an public sector organisation, it was established by Royal Charter, and it was
founded by licence fee paid by United Kingdom. An public sector refers to the organisation that
are owned and operates by the government authorities, exists to provide various services to the
citizens of the country. These organisations does not run for the profit maximisation. The main
motive of these organisations is to provide welfare by the product and service. BBC is an public
service organisation that operates under the public operations.
Size of BBC organisation:
British Broadcasting corporation is one of the largest mass media broadcaster in the
world. Organisation has 22,000 staff in total that are largest in the world, 1600 are in public
sector organisation. The total number of BBC staff of 35,402, including flexible, part time and
fixed contract staff. Total revenue of company is 4.88£9 billion, net income is £69 million,
operating income £52 million, and total asset is £1.172 billion. Organisation is largest and oldest
broadcaster in the world and operates with high turn over and revenues (Ahmad, Masri, and
Lee, 2019).
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Scope of BBC organisation:
Organisation is one of the largest and oldest, main purpose of company is to provide
accurate news and information to help the people by engaging them and connect them around the
world. They support learning for the people of all ages, that help them in understanding about
what is happening in the world and knowledge and information. BBC shows most creative,
highest quality output and services that helps citizens to connect with outside world in most
creative way. BBC work with different values and ethics, they work for making trust of people
on the organisation they think they are honest, independent, impartial. That helps their
organisation grow and have highest viewers in the world (Boone, Kurtz, and Berston, 2019).
They provide better content to their audience that so that people can feel connected to them. All
these values and purpose of organisation helps in better growth in the future and increase the
level of revenues and turnover of the company. BBC has future scope to expand its channel in
multinational country that provide wide range to its network and increase the profit share.
Thus with the type, size and scope of the BBC its can be understand that company is
public sector organisation and operates for the better growth and provide information to its
audience.
The interrelationship of functions on organisation structure.
In business there are various functions, that helps in better growth and success of the
company, and every department of company is interlinked with each other, and there processing
is depended on each other. In the context of BBC company operates various functions in the
company that are interlinked and connected (Crudu, 2019). Below are detail explanation of
various functions that have an impact on the its performance and how they are interrelate with
each other.
 Marketing and human resource department: Marketing department of the BBC helps
in better promotion and advertising of company and also helps in its growth. Whereas,
human resource department ensure the proper functioning of the company and also
provide better production and management in the company. These functions of BBC are
interrelated with each other. The marketing and human resource department department
of the company work with the support and flow, marketing department helps human
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resource by promoting and the business in the market and increase the level of
profitability, and human resource are the people working in the marketing department,
without them they can not work for the better functioning and arrangement of the
company. Thus both the departments are connected with each other.
 IT and marketing department: Information and technology department of the company
ensure that all the technical and technological equipment could work properly. It helps
the company in smooth working and it also help in better productivity of the news.
Whereas, marketing department is connected with IT department because BBC (Dey,
2019) is mass media firm and its processing is depend upon proper functioning of IT
department so that they can provide better information to the audience. Thus the IT
department also connected with marketing because company is using digital marketing
for better growth.
 Finance and human resource department: Finance department of the BBC helps in
better functioning with the proper flow of funds in the organisation. They ensure that all
the department of the company has proper inflow and outflow of cash. Finance
department is also ensure that all the employees and staff of the company get fair pay and
proper funds for the tasks and jobs they have to perform. Both the department are work
for the same goal to fulfil the needs and wants of company from them (Froese, 2019).
Thus, both the department of the BBC have interrelationship with each other, and they
also work for the better growth and successful functioning.
 R&D and IT: The research and development department of the company helps in better
collection of information from the outside world. In the context of BBC the research and
development department of the company is an most important function, because the
working of the company depends on the all the information they get from the R&D
department (Gaganis, Pasiouras, and Voulgari, 2019). R&D department of the company
gets help from the information department by using various technologies that help them
in better collection of information. Thus, both the department of the company are
interlinked with each other and helps BBC in proper functioning and better development
of company.
Thus, from the above discussion it can understand that various departments of BBC, are
interlinked with each other. The growth and success of company depend on the better
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coordination in these functions. Company can make various strategies that could help making
better coordination in the various functions.
Internal and external influencers via a PESTLE and SWOT analyses on business operations.
There are several internal and external factors that can impact the business and its decision
making process. To analyse these factors below are detail explanation of SWOT and PESTEL
analyse in the context of BBC.
SWOT analysis of BBC:
This analysis use to identify the current position on company before making any strategy.
SWOT analysis helps in identify the internal and external factors of the organisation that could
have an impact on its performance. SWOT analysis of BBC could helps to understand the
various internal strength and weakness of organisation and external threats and opportunities.
Below is detail discussion on SWOT analysis of organisation.
 Strength of BBC: Strength refers to the various areas that help business to make unique
identity in the business and increase the level of growth. It helps organisation to be
always ahead of competitors. In the context of BBC, the major strength of organisation is
its old reputation, company has started its business from 1922, and from the several
decades company maintain its business in the market. It has made huge faith in the mind
of its audience by providing them accurate news (Gursoy, and Chi, 2020). BBC also
maintain its image as largest broadcaster in the world by approx 23,000 employees that
helps in better growth and market image to the company. Using being updated from the
other broadcaster is one of the best strategy of organisation. They make their journalism
creative by brining new things to their viewer. Thus with the several, strength company
maintain to being on the top of broadcasting world.
 Weakness of BBC: Weakness refers to the various areas of business where organisation
needs to concentrate more and gain better opportunities in the future. In the context of
BBC, one of the biggest weakness of the broadcast channel is they provide biased news
to their viewers (Ingenbleek, 2019). BBC has raised debate on whether their news is
biased or not and the results are always negative, and this could impact its brand image in
the market. Sometimes the news BBC provide increase the level of controversies,
organisation should focus on this could make their viewer think about the news they are
providing. High operating cost also impact the business of BBC, because the competitors
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of organisation conduct their news on lower cost that makes their businesses more
profitable. Thus, these are the major weakness of the organisation, where BBC should
focus to make their channel more effective.
 Opportunities for BBC: Opportunities refers to all the areas of business that could
provide better growth and success in the future. These are the factor that can provide
more revenues to the company. In the terms of BBC, the major opportunity for its
business is become more trendy, BBC was serious new channel earlier but in recent time
organisation has take initiative to become entertainment zone for its viewers and conduct
fashion show programs, technology, kids channels etc. BBC also have the opportunity to
get involved in global event that could make its business more growing and successful in
the broadcast industry (Khan, 2019). Joint partnership with satellite channels is also an
opportunity for the company. Thus, there are various opportunities for the BBC that
could make the business of organisation more profitable in broadcast industry.
 Threats for BBC: This are the areas of business which can affect the growth and
profitability at any time. In the terms of BBC channel, there is strong competition in the
broadcast industry for the company. It can disturb the operations of the company and can
reduce its growth. Also launching domestic channels, there are starting of other domestic
channels that could give competition to BBC. It may affect the viewer ship of company.
Thus, there are limited threats for the business of BBC that could affect its growth.
PESTEL analysis of BBC:
This analysis is an framework that is used by marker to analyse the macro environment of
business. It also helps in analysing all the factor that could have an impact on the performance
and decision making of business (Liguori, and Pittz, 2020). PESTEL analysis of BBC could help
the organisation in development of insight about the various factors that could impact its
performance and growth in the market. Below is detail discussion on the various macro
environment factors that have an impact on the decision making process of BBC.
 Political factors: These factors explain the impact of government and government's
policy on the operation of organisation or industry. This could include political policy
and also stability of government of an particular country. In the context of BBC,
organisation is self independent and self regulated, it is an public sector organisation
whose responsibilities, functions and financial operation was started by Royal Charter.
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The Royal Charter is reviewed by the government form 10 years. However the political
stability of UK is an positive factors for the performance of BBC. But frequent changes
in government policies could harm the business of organisation, to protect the business
from governmental uncertainty company should study all the current trend in political
scenario of UK that could help in better growth and success of the company.
 Economical factors: These factors refers to the various change in economy condition
and policy of country and its impact on the performance of business or industry. In the
context of BBC the GDP growth rate of UK analyse the organisation's ability to pursue
its long term growth strategies, and operating in such a market decrease the cost of
production of company. The economic development of UK directly impact the growth of
the country(RAO, 2020). Labour market condition, depend on the demand and supply of
the talented people at the work place. BBC should focus on the market condition and
should attract talented and skilled employees at work place so it could help them in better
growth.
 Social factors: this factors refers to the various changes in the trend and culture of the
people that have an influence on the performance and decision making process of the
business. In the context of BBC, change in demographic patterns of UK, such as ageing
population, socio economical variable have prominent impact on the performance of
international business like BBC. Study demographic patterns could help the business of
BBC such they can find the right segmented market of the viewer that helps its business
to have growth and stable market.
 Technological factors: The development in information technology could help the
business of BBC to grow and maintain high success. In UK there is high technology
development and innovation that can affect the business and increase the operating cost
of the company(Rofiq, and Pramono, 2019). BBC should consider investment made by
the competitor on macro and micro to understand how new technology impact the
business of company. BBC should focus on investment on technology that helps in better
development and growth.
 Environmental Factors: This factors refers to the all the rule and regulation of the
government on the particular industry in order to protect the environment of the
company. In the context of BBC, organisation can use renewable technologies that can
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benefit it an long term sustainability in the business. BBC sometimes face the threat from
the weather and climate conditions of UK, and it impact the efficiency of business. It
could also impact the supply chain of the company.
 Legal Factors: This factor refers to the all law and regulation of government that could
impact the performance and decision making process of the business(Sinha, 2020). In the
context of BBC, in there are various employee protection law that company should
follow, they should focus on health and safety laws as UK has strict regulation to ensure
the labour safety. In UK there is also customers protection law that company should
follow in order to gain growth.
Thus, from the above PESTEL analysis of BBC it can be understand that company is face
different kind of factors that have an influence on its business and growth.
The influence of globalisation on organisational strategy and decision making.
Globalisation refers to the change in the areas, and led to opening new business in new
market and country. Globalisation of business impact the performance and the decision making
of particular business orb industry(Ślusarczyk, and UL HAQUE, 2019). Company has huge
impact on its decision making and organisational strategies because of global expansion of
business. In the context of BBC, the business of organisation is well established and world
largest in mass media industry. If company wants to develop its business in the internation
country they have to adopt new strategies that could help in better functioning and proper
growth. Below are the detail discussion about how the globalisation of company can impact its
business strategies and decision making process.
Impact on organisational strategies: In the context of BBC if company wants to an
expansion in its business in multinational business and development of its broadcasting
corporation in other country, they have to adopt the strategies according to the market of the
country and growth in the of its economy. That could impact its performance of the company in
the market and its growth. BBC can follow the various market trends and economy trends of the
destination country where they can expand its business and increase the growth. So that the
influence of market and business does not affect the performance of the company. Thus,
globalisation in the business could have huge impact on the performance company, but it could
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also be beneficial for the company to have global expansion of business in order to gain
successful operation in other countries. To make its operation successful in other country
company can proper development of performance in other country.
Impact on decision-making: in the context of BBC company can operate its business in
most effective way they are working in their country. But globalisation of channel could make it
difficult for the country to manage the business in other countries(Vlados, and Chatzinikolaou,
2019). The decision making process of the organisation also get effected from the globalisation
of BBC channels in other countries. BBC can operates in other countries by enhancing the
decision making process and making various decision according to the other countries.
Thus, from the above information its can understand that company has huge impact on the
decision making process and its growth if they make global expansion in the other countries.
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CONCLUSION
From the above analysis it can be conclude that business environment have various
internal and external factors that have an impact on its performance. Organisation have different
size, scope, type that helps in understand the market position of the company. Interrelationship
with various functions of the company helps in effective working of the organisation structure.
SWOT and PESTEL analysis helps the company in better understanding about the internal and
external factors that have an impact on its performance. There are several influence of
globalisation on the company's strategies and decision making process and how company can
analyse these impact in business.
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REFERENCES
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Relation to the Changing Business Environment. Global Business & Management
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Moldova. In Strategic Optimization of Medium-Sized Enterprises in the Global Market (pp.
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Dey, S., 2019. Business environment.
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RAO, S.P., 2020. International business environment. HIMALAYA.
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market orientation in turbulence business environment.
Sinha, V.C., 2020. Business environment. SBPD Publishing House.
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