Analysis of BBC's Business Environment: A Comprehensive Report

This report provides a comprehensive analysis of the business environment of the British Broadcasting Corporation (BBC). It begins with an abstract and table of contents, followed by an introduction that defines the business environment and its importance. The main body of the report delves into the type, size, and scope of BBC, its organizational structure, and the interrelationship between its functions. It then conducts an external analysis using the PESTLE framework, examining political, economic, social, technological, legal, and environmental factors. An internal analysis utilizing the SWOT framework is also presented, identifying BBC's strengths, weaknesses, opportunities, and threats. The report further explores the impact of globalization on BBC's strategies and decision-making. Finally, it concludes with recommendations based on the analysis.

BUSINESS ENVIRONMENT

Abstract
This report has described the business environment by analysing the structure of the
organization and the type, size of the company by studying the external and internal analysis of
the environment through the PESTLE and SWOT analysis of the BBC channel. So that the
company can study the political, economical, social, technological, legal and environmental
issues and also analyse the strength which can be useful for the growth of the firm, to overcome
weakness or eliminate the weakness which are internal factors and grab the opportunities so that
the company has occurs more market share and counter the threat which are external factor of the
organization. Moreover, the study has also analysed the impact of globalization upon the
decision of the company such that it creates both positive and negative impact upon the business.
Therefore, BBC should develop different strategies which in turn helps to cope up with different
strategy in order to meet the define aim.

Table of Contents
Abstract............................................................................................................................................2
1.INTRODUCTION........................................................................................................................4
MAIN BODY...................................................................................................................................4
2. Discussion and Analysis..............................................................................................................4
2.1 Type, size, and scope of BBC...............................................................................................4
2.2 Organizational structure of BBC...........................................................................................5
2.3.1 External Analysis...............................................................................................................6
2.3.2 Internal Analysis................................................................................................................8
2.4Impact of Globalisation on strategies and decision making of BBC.....................................9
3.CONCLUSION...........................................................................................................................10
4.RECOMMENDATIONS............................................................................................................11
REFERENCES..............................................................................................................................12

1.INTRODUCTION
Business environment is the collection of all internal and external factors that affects the
operation of the business organisation. The internal and external factors affect organisation
directly and indirectly. Internal factors are those factors which are present inside the company.
For e.g., management, plans and policies, human resources, relationship with employees,
marketing resources, financial resources, brand equity, corporate image, etc. External factors are
those factors which are present outside the organisation. It includes both micro and macro
factors. Micro factors are customer, suppliers, public, marketing, media, competitors, talent, etc.
Macro factors are economic, political, legal, technological, and sociological. As environment is
dynamic it changes so frequently, so it’s important to analyse the business environment to attain
the organisational goals or predetermined goals or objectives of the organisation. Business
environment has some basic objectives such as understanding the recent potential changes that
takes place in the environment. Understanding business environment will ensure accurate policy
making or strategic decision making. Business environment plays an important role in smooth
functioning of business, it helps in identifying the opportunities, it helps in assembling the
resources in an efficient way, it assists in planning process and policy making, it helps in
adopting the changes in the business environment, and identifying the threats for the business. It
assists in developing an action plan for technological changes or advancement. This report is
prepared in context of BBC. The purpose of this report is to understand the type, size, and
structure of the BBC organisation including the scopes of BBC. The relationship of functions in
BBC organisation is also discussed along with environmental analysis. The various
environmental analysis is used such as Swot and Pestel analysis. The impact of globalisation on
strategies of BBC and decision making is also observed and taken into consideration.
MAIN BODY
2. Discussion and Analysis
2.1 Type, size, and scope of BBC
BBC is the British Broadcasting Corporation, and it is known as the broadcaster for public
services, situated in London. BBC is one of the largest and oldest (founded 98 years ago)
broadcaster in the world. The type of BBC is Statutory Corporation with royal charter, which
means it is the corporation created by state with a formal grant. It is the largest broadcaster of the

world because of its number of employees. BBC has over 22000 staff out of which 16000
peoples are engaged in public sector broadcasting. The total number of staff BBC has including
flexible, part-time and fixed staff is of 35402.
2.2 Organizational structure of BBC
Organisational structure of any organisation refers to the flow of communication and command
or span of control which indicates how information flow from both top level to the operational
level and vice versa which includes instructions from top level and answerability of the lower
level. This helps in specifying job responsibilities and roles to play under it and also states who
report to whom (Freedman, 2019). The organisational structure of BBC is hierarchical which
flows from board of governor on the top position who has been appointed by the queen from the
advice of her ministers consisting of 12 trustees. These 12 trustees form the board of governor
who reports to Queen for their action and performance. Thereafter, comes the executive board
who is to answerable and reports to Board of governor for their performance and actions and
they consist of nine directors. After them comes the three boards that is, journalism board,
creative board, and commercial board who are liable to and report to executive board (McLean,
2018). BBC is form in the British style and followed six values that is, Quality, Respect, Team
work, Creativity, Trust and Audiences which signifies their organisational culture.
Functions and interrelationship between functions in BBC
There are many functions performed in the structure of the organisation such as finance,
marketing, human resource and operations. Under operations there are certain functions
which has been performed like ICT(Information and Communication Technology),
broadcasting, customer services, Television and Radio. The finance and operations
department of BBC work together towards managing corporation's finance and
operations who are responsible for preparing budgets for all divisions, devising long
term strategies and plans of business, collecting licence fee and managing expenses of
the corporation. Marketing department in aiding finance department devises strategies of
marketing which helps in budget cuts where they used restructuring technique in their
marketing operations where focus is made on cross promotion and master branding
(Burns, 2016). The price element in the marketing mix of BBC is its main source of
funding since its inception because one who watch live while it is being broadcasting
then they must have licence for the same which is its main source of finance collected by

the finance department. Human resource department of BBC is responsible for hiring
and maintaining its workforce for the provision of better services to the customers. They
are responsible for carrying out collection of information and communicating the same
to the operational department for facilitating broadcasting, television and radio services
to its audiences. This all indicates that there is a unique interrelationship among various
functions that is to be performed under the organisational structure of BBC. All
department has its important role to play without which the whole organisational
performance would be affected (Hamilton and Webster, 2018). This is true in every
organisation including BBC where different departments are made to perform their
specific functions and failure of one department in carrying out its responsibility would
definitely affect the whole organisation and its performance.
2.3.1 External Analysis
Pestle analysis is a tool which is used to monitor the external environment factor that having an
impact on the firm and breaking down the risk into political, economic , social, technological,
legal, environmental factors. Pestle analysis can be use in focusing on how to manage resources,
risk and return across a firm and identifying the strategies which is very important to every
industry to growth (Christodoulou and Cullinane, 2019). For every organisation before starting
their business it is mandatory to make some rules, responsibilities and some strategies to be plan
as for that the pestle analysis helps to implement such plans and recognise the changes. BBC use
PESTLE analysis tool, so that they can observe the external environment and focus towards
strategies. As the elements are -
Political Environment- As BBC is an self-directed organisation. Political Factor is very
important for TV industries as it provides foreign trade policy, political stability, taxation and
competition towards other news channels. Royal Charter is operating the functions,
responsibilities and financial operations of the organisation. He is the representative by
government. On the other hand, John Major's supporting the BBC holding the public support for
entering into a new market and compete with their competitors.
Economical factor- This factor affecting directly to the economy of the organisation
profitability. As it include economic growth, interest rate, inflation, law, wages, raw material
cost, policies, governmental activities, unemployment rate and so on (Dalirazar and Sabzi, 2020).
Economic factor can be classified into two factor as micro economic and macro economic factor.

Macro economic factor deals with the demand whereas micro economic factor deals with the
way people spend there incomes. BBC decided to change the organisation culture with an aim of
responding to regulatory shifts of the times.
Socio-cultural factor- As the social factor considered to the lifestyle and the cultural trends of
the society. These factor include population growth, age , wealth, religion, buying habits,
population, career attitude and so on. This factor having an direct effect to the customers as to
understand there needs and wants. Decentralisation of the organisation can be considered to
reduce the functionary of government. As BBC has always maintain the position in the market
by broadcasting with a view ship.
Technological factor- An organisation must improve their technologies as per the market
competition. The BBC took initiative towards changes in techniques so that they can maximise
their market share in competitive market (Nandonde, 2019). As it update themselves and provide
digital services, the managers and producers would support the investment made by TV and
Radio program at that time. Along with digital services, the organisation also follow the
approach of Business Process Redesign (BPR) to expand their business towards growth and
reduce the cost of decentralisation of the organisation.
Environmental Factor- This factor involves the nearby environment which affect the business .
An environmental factor is a factor that influences living organisms. The technological changes,
political changes influence the culture change of the organisation. That means a business is
growing through digital production. The environmental changes impact towards marketisation or
entering into a new market and a new trading system. As the internal market was build to
improve the organisation structure. The BBC formed a new trading system for production by
offering some strategies and control programmes of their firm.
Legal Factor- As the organisation must be clear about there legal factors. It includes health and
safety , equal opportunity, consumers rights and law, licenses, product labelling and product
safety (Simões, 2020). They must be aware about any changes occurred in the legislation. The
BBC needed to adjust their internal environment and meet the legal factors. Legal factors are
very crucial to followed by BBC.

2.3.2 Internal Analysis
The primary purpose of SWOT analysis is to identify the strength of the company that can be
use for expanding the growth and external opportunities and protect BBC strength and overcome
from threat and eliminate weakness. SWOT analysis is a practice through which different
strategies are carried out for the organisation (Abdel-Basset, Mohamed and Smarandache, 2018).
At the time of market competitions while faces some of the issues regarding the external and
internal environment the businesses must re-think the strategies by the help of SWOT analysis.
BBC maintaining his current position in market by analysing and reviewing the SWOT analysis.
As strength and weakness is a part of internal factor whereas opportunity and threat are comes
under external factor. SWOT analysis is strategy planning tool that analysis the present strength,
weakness, opportunities , threats. The SWOT analysis helps the managers of the BBC to develop
four types of strategies-
Strength- BBC is one of the leading company that has various strength to grow in the market
place. These strength of BBC is not only help them to grow in a market share but also helps in
developing new market (Vlados, 2019). BBC has build super performance in new market and by
building new revenue streams BBC generate good returns on capital expenditure. BBC can
expands into new product categories because it has a strong brand portfolio. It has a reliable
suppliers of raw materials and having a successful market strategies for its products.
Weakness- It is an area where a firm can improve themselves to overcome the weakness and
build on its competitive advantages and strategic positioning. With its present culture it has faced
challenges in moving to other product segments. The BBC has not able to handle the new entries
entered in the market and has lost small amount of market share. So they has to build feedback
mechanism directly from sales team and overcome through this challenge. BBC need more
investment in new technologies so that they can accomplish the vision of the company.
Opportunities- The acceptance of new technologies and government agreement has provided
BBC to build an opportunity to get into a new market. BBC having an opportunity to drive at
home and take its advantage and increase market share in the product categories. The new
taxation policy having an impact the way of doing a business and establish new technologies to
increase the profitability of BBC and the market development can lead higher competition the
BBC modify their product compete in market to expand their business.

Threat- Threat is an external factor of every company in which limitation of low quality of
product is a threat for BBC's product especially in low income market. As a company which is
operating many countries occurring different currency fluctuation especially provide a volatile
political climate in number of market across the world (Büyüközkan, Mukul and Kongar, 2020).
BBC for growth of profits having an threat of shortage of skilled workforce in certain global
market. And changing the mind of customers buying behaviour from online channels could be a
threat for physical store.
2.4Impact of Globalisation on strategies and decision making of BBC
Globalisation affects various societies, cultures and economies in all respect. It shifts the
standard shift in economic thinking. The effect of globalisation has major impact on the various
aspects of the world. Its effects not only influence the financial conditions but also the industrial
sector. BBC is Broadcasting Company, which means that it broadcasts the information through
various mediums such as radio, television, internet, etc. (Booth, 2020) The broadcasting
company plays an important role in shaping the human brain or mind. The various theorists say
that media plays a vital role in accelerating the globalisation. The most visible effect of
globalisation, which is shown on BBC it wide spread of communication. (Mills, 2020) To spread
the information, the introduction of newspaper, internet, TV and magazines, etc. has a significant
role in bringing people together from all over the world. The globalisation has both advantages
and disadvantages on broadcasting or media industry. But the advantages are much more
beneficial than disadvantages. The introduction of mass media has benefitted in transmitting the
information in an effective way. Globalisation has not only made advertising easy but also
opened up the other fields too for broader communication bringing various industries, companies
and countries together. Internet has played a major role in transforming the minds of human
through digital media. With an ease of internet, large number of people are getting an
information through just one click. It is one of the easiest way to engaged in for getting more and
more knowledge in today’s fast changing world. The BBC or broadcasting company also uses
media to advertise their contents or to publicise the data collected by them.
Globalisation has so much to do on the corporate structure of BBC. Newspapers departments
take their own distributing and printing responsibility, television department do their own
production and broadcasting and the small fil studio are concerned with their own distribution

responsibility (Holbeche, 2018). Television has also played an important role in transmitting the
information of one country to another. In media globalisation, television has a remarkable
approach to the society. BBC uses various television programs to transmit their collected or
useful information to people or countries, which helps in increasing the knowledge of all people
who wants to learn about other countries or want to know gain knowledge of others. With
thehelp of television media people can learn about the sensitive issues prevailing in other
countries, various political issues of countries. The information related with economic issues or
market is also broadcasted by BBC like updates on share market, brokers and stocks.
Globalisation is one of the debatable topic with much more of positive impacts. It is one the
major source which helps in bringing people together from all over the world. Globalisation in
BBC has more positive advantage than negative advantage, it has remarkable achievement in
development of the economy.
3.CONCLUSION
From the above report it has been concluded that BBC is a statutory corporation formed
in a British style and considered to be the oldest and largest broadcasting company. It has
hierarchical structure in its organisation which indicates chain of command and span of control
in the BBC. In its structure there are many functions performed which all equivalently
contributing towards BBC's success. These all functions are interrelated to each other in some or
the other way where one function facilitates other functions performance. Like any other
organisation BBC also has impact of internal and external factors in the business environment
where it operates. These internal factors are explained with help of SWOT analysis and external
factors are explained with the help of PESTEL analysis in this report which is helpful in
understanding how a big corporation like BBC has an impact of such internal and external
factors. Thereafter, the impact of globalisation of world's economies on the strategies and
decision making in BBC has been explained which indicates that how its media coverage
increases after globalisation which helps in wide spread communication between countries of the
world. This would definitely helpful for BBC in increasing its audience's base. In this way the
whole report revolves around the various aspects in the business environment of BBC.

4.RECOMMENDATIONS
It can be recommendate from above research that BBC must identify the strength by focusing
towards their customers and expand their business to increase their market share. BBC build
their brand name by entering into the new market and compete with other businesses and
produce new product so that they can make unique image towards other competitors. And grab
the opportunity where they can see any scope of increasing their market share. BBC is highly
leading company who adopt different strategies to grow and develop their business. They must
determine their goal so that they have a clarity towards their work. They must use a strategy and
advertise themselves so that they can maximise the profitability and growth and also focuse
towards the audience so that they will entertain them.

REFERENCES
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