Business Environment Analysis of BBC: A Comprehensive Case Study

This case study provides a comprehensive analysis of the British Broadcasting Corporation (BBC) within its contemporary business environment. It examines both the internal and external factors influencing BBC's operations, utilizing tools like SWOT analysis to assess internal strengths and weaknesses, and Porter's Five Forces and PESTLE analysis to evaluate the micro and macro environments, respectively. The report further explores the impact of globalization on BBC's decision-making processes, highlighting both the increased competition and the opportunities for greater knowledge and improved efficiency. Finally, it offers strategic recommendations for BBC to navigate its complex environment and achieve sustainable growth. Desklib provides students access to this case study and numerous other solved assignments.

Contemporary business
environment- case study

Table of Contents
Executive Summary.........................................................................................................................3
INTRODUCTION ..........................................................................................................................4
MAIN BODY...................................................................................................................................4
TASK 1............................................................................................................................................4
Business Environment and Internal Environment Analysis........................................................4
TASK 2............................................................................................................................................5
Micro Environment analysis:.......................................................................................................5
Macro Environment Analysis:.....................................................................................................6
TASK 3............................................................................................................................................8
Impact of globalisation on the decision-making of BBC.............................................................8
TASK 4............................................................................................................................................9
Recommendations to BBC...........................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

Executive Summary
This report is based on a case study in which BBC is an organisation that is taken into
consideration for demonstrating different aspects of this report. In context of this organisation,
various models and theories will going to be discussed which will be based on the the internal as
well as external environment analysis. Moreover, recommendations will also be given to the
respective organisation so that it can achieve its success and growth in a more effective way.

INTRODUCTION
The concept of contemporary business environment consists of a wide competitive
market that changes at a very rapid rate. The owner of any such business organisation must be
worthy in a sufficient way in order to better understand the needs as well as development that are
required to be done within the workplace. This report is based on a case study in which British
Broadcasting Corporation (BBC) is taken into consideration that will help in demonstrating
various prospects of this portfolio (AlAmrani, 2020). Within this report, there will be an internal
environment analysis of respective organisation. Along with it, there will also be external
environment analysis of micro as well as macro environment. Moreover, the impact of
globalisation on the decision-making process of BBC is also going to be described. Furthermore,
recommendations will be given to the organisation in order to attain growth as well as success in
an effective and efficient way.
MAIN BODY
TASK 1
Business Environment and Internal Environment Analysis
Business environment is referred to the aggregate of all the internal and external factors
of an organisation that have a great influence on its performance. It consists of forces such as
suppliers, buyers, government, competitors and factors like technological, social, political and
legal. BBC is a public-sector organisation in broadcasting industry and headquartered in London.
Analysis of business environment of BBC help the organisation in making strategic business
decision.
The analysis of internal environment of British Broadcasting Corporation can be done
with the help of SWOT Analysis (Ali, 2021). This is tool that facilitates an organisation in
analysing its internal strengths as well as weaknesses along with the external opportunities and
threats that are available in the business environment. SWOT Analysis of BBC is given as
follows in order to analyse its internal business environment:
Strengths Weaknesses
Largest broadcaster: BBC is not only the
oldest broadcaster but also the largest one
Controversies: It becomes a major weakness
within the organisation that it has been blamed

within the global world and is having
employee size of almost 23000 manpower.
This big broadcaster will in time achieve
popularity within respective industry (SWOT
Analysis of BBC, 2022).
Advanced marketing strategies: The
organisation is framing advanced advertising
strategies that gives intense competition to its
rivalries and this helps the business in chasing
competitive advantages.
that things regarding news on BBC touch those
issues which are sensitive in global world as
well as increase uproar through excavating
such controversial issues in later period.
High operation cost: While the rivalries of
BBC are dealing with their business operations
at much lesser cost, still BBC is lacking behind
the race which became a weakness for
organisation.
Opportunities Threats
Following trends: It is a great opportunity for
BBC that it can organise programs that are
related to fashion, technology, entertainment,
channel of kids, etc. and can step into the
entertainment zone. It would help the
broadcaster in increasing sales volume and
profits within business.
Trying to be unbiased: Organisation can try
to give news which is unbiased as once it
eliminate tag from itself then it would be
strongest within industry.
High competition: Increasing number of news
channels such as CNN can be a threat for BBC
as it gets disturbed sometimes.
Lack of skilled manpower: It can also be a
threat for broadcaster because it results in slow
growth of profits in certain global markets
(BBC SWOT Analysis / Matrix, 2021).
TASK 2
Micro Environment analysis:
External environment includes micro as well as macro environmental factors that impacts
the functioning of an industry (Bansal and et.al, 2018). The analysis of micro environment can be
done with the help of model of Porter's Five Forces that helps in recognising and analysing the
level of competition within the industry that facilitates in understanding its weaknesses and
threat. The model of Porter's Five Forces in context to BBC is described as under:

 Threat of competitive rivalry: There are numerous competitors in news industry and
some major rivalries of BBC are FOX News, ABC and SKY News and its national
competitors are CNN, ITV, etc (Bogdan and Beata, 2018). These competitors are
constantly working on advanced diversified strategies so there is high threat of
competitive rivalries for BBC.
 Threat of new entrant: New entrants in the industry of news are said to be latest news
channels of Radio or Television. The setup cost in the news industry is very high and
hence becomes a barrier of entry for any new entrant. Therefore, there is a low threat of
entrants for BBC as those new entrants have to pay licence fees and some other charges
also to become a part of news industry.
 Bargaining power of buyers: Because of high level of competition in news industry,
there are several sources. Due to which, buyers have a broad selection of the choices. The
switching cost for buyers is also low and BBC cannot pressurize its customer base in
order to keep on watching this. Hence, there is high bargaining power of buyers of BBC.
 Bargaining power of suppliers: This type of force relies on the numbers as well as the
purchase volume that are made by any organisation. Within news industry, the suppliers
are carrying a specific level of power. For BBC, there are suppliers that are having both
low and high power (Boone, Kurtz and Berston, 2019). High power suppliers are Jay-z,
Brad Pitt and low power suppliers are students, residents and many more. Hence, there is
medium bargaining power of suppliers for BBC.
 Threat of substitutes: There are various substitutes of news industry ans some of them
are newspapers, social websites, magazines, the internet and many more. The news that I
covered b y BBC is also gets covered by its substitutes in an easy way and at low cost.
The switching cost to substitutes is also low and therefore, there is high threat of
substitutes for BBC as its biggest threats are blogs, social media and other websites that
are available to the entire world.
Macro Environment Analysis:
The analysis of macro environment of an organisation can be done through the model of
Pestle Analysis. This framework helps in identifying and analysing the impact of external macro
environment factors such as political, social, economic, technological, legal and environmental

that influence the business operations of an industry. It helps an organisation in making informed
business decisions. Pestle Analysis of BBC is given as below:
 Political factors: These factors are associated with the guidelines of the government of a
country and includes, political stability, trade regulations, and many more. The political
system within United Kingdom is stable as well as strong (Domanovic, 2020). This
political stability supports BBC in its development and growth pace as it allows the
organisation in expansion of its business operations both internally as well as regionally.
It positively impacts the performance of the organisation and increases the sales volume
within the business.
 Economic factors: These kind of factors consists of inflation rate, interest rate,
unemployment rate and many more. The economy of UK is well developed as well as
market-oriented (Suszyński, 2020). There is moderate inflation rate within the country's
economy that helps BBC in growing its business and working in a favourable way
towards rising in the level of confidence of the market share along with the spending
trends of the buyers.
 Social factors: Such types of factors include taste and preferences of the consumers,
education, family size as well as structure, health consciousness, etc. Within the country,
BBC has introduced some aspects that are related with the health in its marketing field.
The organisation has also added unique features of health within their services according
to the consumer research as well as their behaviours (Fascia, 2018). It positively
influence performance of organisation as more market share gets more attracted towards
it.
 Technological factors: The factors that are concerned with technology such as
advancements in technology, internet penetration, using social media, etc. BBC is
developing technological advancements as well as innovations while performing its
business operations. It helps the organisation in enhancing the efficiency as well as
effectiveness within the business (Mirza and Sekhar, 2019). It favourably influenced
functioning of organisation as improved technological infrastructure also facilitates in
capturing foreign direct investment that results in further developments and
advancements.

 Legal factors: These factors involve laws and legislations that are framed by legislative
system of the country such as employment laws, health and safety laws, anti-
discrimination laws and many more. Within BBC, the department of human resource is
constantly organising workshops as well as sessions of training for its manpower in order
to involve them and creating awareness among them regarding employment laws with
legal systems. It positively influence business operations of organisation as it is working
in an ethical environment.
 Environmental factors: Such factors are associated with the environment like recycling,
pollution, waste management, green consumption, etc (Gupta, 2021). In context to BBC,
the organisation is required to associate itself and register with authorities and institutions
of waste management for following regulations, avoiding any future hassles and
maintaining checks. It helps in building positive brand image within the market and attain
success in an effective way.
TASK 3
Impact of globalisation on the decision-making of BBC
In context to a business, the process of globalisation refers to conducting business
operations on the global scale in order to serve products as well as services (Thapayom, 2022).
The concept consists of most of the economies of the world that are working altogether and
conducting its business operations. Globalisation has both favourable as well as unfavourable
impact on an organisation and within news industry it has great influence on the business. The
impact of globalisation on the decision-making of BBC is described as follows:
Increased competition: The process of globalisation has increased the competition
within broadcasting industry. This influence the process of decision-making of BBC as the
organisation has to diversified its business strategies in a very frequent way which takes a lot of
time in designing those strategies (LIU, LIU and CHEN, 2020). It negatively influenced the
business operations of organisation as instead of designing new business strategies, the
respective business could focus on other fields in which it is lacked behind.
Greater knowledge: Globalisation has also positively influenced the business in such a
way that it has increased the knowledge within the human resources of the organisation. In
relation to BBC, the manpower within the organisation has increased their knowledge due to

which strong and strategic business decisions are framed by them that helps the organisation in
chasing competitive advantage over rivalries in the industry.
Improved efficiency: The process of globalisation has positively impact the business and
its operations in another way through improving the overall efficiency of the organisation
(Rezaee, 2020). In relation to BBC, the process of globalisation has positively influenced the
decision-making of the business as the process of globalisation has improved the performance as
well as efficiency of its employees through training sessions. This facilitates in framing strategic
decisions within the organisation.
TASK 4
Recommendations to BBC
From above discussion, it is recommended to BBC that the respective organisation
should consider the internal as well as external factors of the environment that greatly influenced
the functioning of business (Liu, 2021). It is also recommended to the organisation that it should
analyse its weaknesses so that it can make improvements through designing differentiated
business strategies. The organisation should chase the opportunities that are available to it in the
market and overcome the threats with the help of gaining advantages through those
opportunities. Another recommendations that can be given to BBC are that the respective
organisation should maintain its concentration on the preferences as well as perceptions of its
potential market share so that customer loyalty can be maintained in an effective way within the
business. It is also recommended to BBC that the organisation must adhere all the laws as well as
legislations that are framed the legislative system of the country as it help the business in
maintaining its positive word-of-mouth within the market place (Lubanga, Simel and Belinda,
2021). These recommendations would provide assistance to the business in gaining competitive
advantages over the competitors in market and also facilitates in achieving the growth and
success in an efficient and effective manner.
CONCLUSION
From above explanation of the report, it has been concluded that with the help of
analysing the business environment, an organisation could attain the level of profitability as well
as efficiency. In this report, various models and frameworks of analysing the business
environment have been used by the organisation. In order to analyse the internal business

environment, the model of SWOT analysis has been used and for analysing the impact of factors
of micro and macro external environment, the framework of Pestle and Porter's five forces have
been used by organisation. This has helped the business in making strategic business decisions to
chase competitive benefits in the industry. Moreover, this report has also been included the
impact of globalisation on the decision-making process of the organisation. Furthermore,
recommendations have been given to the organisation so that it could get success in a more
effective way.

REFERENCES
Books and Journals
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Boone, L. E., Kurtz, D. L. and Berston, S., 2019. Contemporary business. John Wiley & Sons.
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Gupta, R., 2021. LEADERSHIP IN PRACTICE-CONTEMPORARY VIEW. Journal of
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Upgrading of Export products. Contemporary Finance & Economics. (11). p.100.
Liu, Y., 2021. Business Environment Construction and Its Prospects in China’s Logistics
Industry. In Contemporary Logistics in China (pp. 199-222). Springer, Singapore.
Lubanga, C., Simel, S. and Belinda, K., 2021. Investigating The Effectiveness of Recruitment
and Selection Methods in Contemporary Public Sector Organizations: A Case of Narok
Level Four County Hospital.
Mirza, A. P. and Sekhar, A., 2019. Role of Virtual Learning Portals in Postgraduate Students’
Employability and Leadership in the Modern Australian Business Environment. In 5th
Asia Pacific Conference on Contemporary Research (APCCR-2019): Proceedings. Asia
Pacific Institute Of Advanced Research.
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Online:
SWOT Analysis of BBC, 2022[Online] Available
Through:<https://www.marketing91.com/swot-analysis-bbc/>

BBC SWOT Analysis / Matrix, 2021[Online] Available
Through:<http://fernfortuniversity.com/term-papers/swot/1433/1158-bbc.php>