Contemporary Developments in Business and Management Assessment

CONTEMPORARY
DEVELOPMENTS IN BUSINESS
AND MANAGEMENT
ASSESSMENT

Table of Contents
INTRODUCTION...........................................................................................................................2
TASK 1............................................................................................................................................2
Primary external influence to which BBC is subject and their importance for the organization 2
APPENDIX......................................................................................................................................5
Organization’s profile..................................................................................................................5
TASK 2............................................................................................................................................6
Relevance to BBC and its influence on policies and decision making........................................6
Evaluation of Response of BBC..................................................................................................7
Recommendations........................................................................................................................9
CONCLUSION..............................................................................................................................11
REREFENCES..............................................................................................................................12
1

INTRODUCTION
Contemporary development in business discusses about what are the recent changes that
have been made in businesses and this is important for businesses to know as this gives correct
idea about what are the current trends going on. This enables company to keep its practices along
with the time and changing trends. This report will discuss about the changing trends in business
in context of BBC. British Broadcasting Corporation which is a British public service
broadcasting agency headquartered at London (Johnston, 2017). This was founded in 1922 and
its broadcasting services are provided in form of television, radio and web portals. This report
will discuss about the primary external influence to influence and affect BBC along with what
are their importance for the BBC. These are important as they provide idea about whether they
are harmful and negatively affect or present opportunity for the organisation. Marketing
communication mix was another point of discussion in relation with BBC. Communication mix
is a set of forms and method of communication which organisation can adopt to transfer its
message to its customers and potential customers.
TASK 1
Primary external influence to which BBC is subject and their importance for the organization
There are various kinds of tools that can be used for analysis of external factors influence
upon organizations. PESTLE analysis is one of the most commonly used tools that can be used
for conducting external analysis of business, so that impact outside factors upon the organization
can be analysed or identified. PESTLE analysis focuses on external factors such as: Political,
Economic, Social, Technological, Environmental and Legal factors that can impact BBC.
Political Factors: It is one of the most important factors that can impact survival chances or
profitability of an organization. There are various kinds of political factors that can impact BBC
in many different ways (Laviosa and et. al., 2017). BBC is a self- regulatory and independent
organization. Main responsibilities, functions and finances are stated by Royal Charter. In every
year’s government reviews Royal Charter. Government has even made a process named
as ‘review of Royal Charter’ that helps in gaining control over applications of broadcasting
content especially current affairs and news. It has been observed that political factors have a
positive influence over functioning and operations of BBC. Political policies do influence BBC
as majority of the license fee is controlled by the government. However, they have faced various
kinds of pressure from the government as license for broadcasting has never been issued for
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infinite time period because of which they have faced various kinds of conflicts. It has also been
observed that political stability of government in recent years has also helped BBC to gain
stability within the market, has also helped in expansion of their business operation in a much
better and appropriate manner.
Economic Factors: Economic factors are those factors that are related to overall economy of a
country. these factors also impact organizations like BBC. BBC do not operate on commercial
ground. They are basically a national institute and a non-profitable organization. Overall GDP or
growth rate of country can impact the way in which BBC can grow in near future as it is mainly
funded by license fee which helps in delivering more than £3.5 billion a year (Johnston and
Robertson, 2019). But recently Government has decided to cut down government spending due
to which BBC agreed to keep the current license fee at the defined amount and focus on reducing
their overall budget by at least percent. other than this interest rate of a country also helps in
deciding how many individuals or other organizations are willing to invest within the
organization i.e. if the interest rates are higher then it will result in larger amount of investment
which will further result in growth for BBC.
Social Factors: It has been observed that UK has always been a leader in striving quality of life
by getting Britain completely connected. Impact of social factor can be directly seen upon
overall operations of BBC. It has also been observed that Britain has always benefitted from
social and cultural benefits of BBC. BBC has expanded their business till such an extent that
their consumers behaviour has also changed especially in terms of usage of new media. Today
most of the consumers prefer using internet in their everyday lives as it easily provides latest
news, developments and many more (Ezeah and Emmanuel, 2016). Most of the people today
prefer using social networking sites such as Facebook, Twitter etc. These changes within social
life of people has also brought changes within BBC. BBC has also started their online channels
has created their page on social networking sites so that latest news can be delivered to their
consumers in an easy and appropriate manner. They have also introduced various channels for
children and young generation which will help them to increase their consumer base. This
initiative has been taken because their number of viewers of public- service programmes were
decreasing drastically.
Technological Factors: Technological factors can directly impact overall profitability and
competitive advantage that organization has in a very short duration of time period. In past few
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