Analysing BBC's Business Environment and the Impact of Globalisation

This case study provides an analysis of the British Broadcasting Corporation (BBC) within its dynamic business environment, examining both internal and external factors that influence its operations. Using PESTLE and SWOT frameworks, the report assesses political, economic, social, technological, environmental, and legal influences, alongside strengths, weaknesses, opportunities, and threats. The study further explores the effects of globalisation on the BBC's decision-making processes, highlighting both positive aspects like access to larger markets and negative impacts such as job insecurity and environmental concerns. The report concludes that understanding the business environment is crucial for strategic decision-making, especially in navigating the complexities of globalisation, and emphasizes the need for adaptability and rational global strategies. Desklib provides students access to similar case studies and solved assignments for academic support.

Individual Case Study-
Business Environment

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
Analysis on internal and external factors....................................................................................3
Effects of Globalisation on the decision-making process...........................................................6
CONCLUSION ...............................................................................................................................7
REFERNCES:..................................................................................................................................9
Books and Journals:....................................................................................................................9

INTRODUCTION
In the present scenario, every organisation operates and performs their activities in the
dynamic business environment. Business environment refers a sum of aggregation of different
macro and micro environment factors that influences the long term success and objectives of the
business (Gaganis, Pasiouras and Voulgari, 2019). These factors in the internal and external
business environment can affect each other and work together to influence the performance of
the business. The following report is based upon the case study of British Broadcasting
Corporation (BBC). It is a publicly financed broadcasting system in the United Kingdom and
operate their business under royal charter. In Great Britain, it held the monopoly on TV from its
establishment until 1954. It also held the monopoly on radio as well until 1972. It has
headquartered in Broadcasting House, England. The report consists the analysis on internal and
external business environment for the selected company (Krymov and Kolgan, 2019). It will also
discuss the impact of globalisation on the decision-making process.
TASK
Analysis on internal and external factors.
PESTLE Analysis:
It is an useful framework that will help BBC to make its strategic decisions effectively,
keeping in mind the aspects of external trends and factors of macro business environment. The
BBC pestle analysis will overview various external factors such as political, economic, social,
technological, legal and environmental. The further explanation is as below: Political: As the BBC performs under the royal charter and controlled by a Board of
Governors. Yet, its chairman affirms that the company is performing with the public
interest at its core. It must not get affected by the influences of political and commercial.
Therefore, the firm is not reflecting any interest of publicizer or provide justifications to
its actions to shareholders. Hence, political conditions do affect the company as the UK
government controls the ratio of license fee which is paid by the families. Economic: BBC does not perform their business activities on commercial grounds. As a
non-profit company and national institution, it raise its funds by licence fees. Therefore,
because of the cutting costs in the government spending, the company agreed to keep

their license fee at the existing price for the approaching years (Zahari and Romli, 2019).
However, the notably high income for the BBC is assured. Social factor: It is found that UK is the leader in a digital revolution and endeavour to
improve the quality of well-being by getting Britain entirely linked and having
individuals benefit from the social and cultural benefits of the BBC. It also do not
excludes people because of the financial circumstances. Moreover, consumer behaviour
has also transformed in respect of the exploitation of new media. BBC is highly gets
affected as the people actively participate on the social media networks such as Facebook
or Twitter. Additionally, BBC has launched the channels for the children around 12 of
age, but, somehow, it is quite challenging to gain the attention of more teenagers as the
amount of people watching public service programs is declining. Technological: The use of technologies is increasing day by day and thus consumer
behaviour. Due to the rising exploitation of internet throughout the world, the chosen
firm has improved their website and presently it is viewed by over 25 million audience on
a weekly basis. Environmental: The selected firm is supporting the environment and do create
environment awareness. The head office the BBC is assisted by a water saving toilets and
rainwater harvesting system. Also, they do not provide the disposable cups in their
premises in order to centralised the recycling waste point. Hence, BBC feels responsible
towards the environment and provide ethical and fair services to the society. Legal: The corporation is completely depend on the government as the board of
governors is still selected by them and make decisions on the amount of license fee
(Moro-Visconti, 2021). The broadcasting permission is only permitted for the particular
state and never for infinity.
SWOT Analysis:
SWOT analysis of British Broadcasting Corporation examines the internal and external
factors such as strengths, weaknesses, opportunities and threats. It is proven management tool
that enables BBC to benchmark its performance and success for the longer period of time. The
following is the discussion of SWOT analysis:
Strengths:

 Old Reputation: The company was introduced in the year 1922 and it has become many
decades that it is flourishing and maintained its level on regular basis. This has create a
faith among audience in the news item, broadcast by British Broadcasting Corporation. New and updated: It is one of the main strengths that keep the company ahead of its
competition (Teoli, Sanvictores and An, 2019). They know how to do journalism and
always tries to bring new things to the audience. Some of the key contribution of BBC
are HD Channels, 3D Channels, Colour TV and many more. Largest Broadcaster: BBC is not only one of the oldest and experienced broadcaster but
it is also the largest broadcaster throughout the world. It has 23,000 employees
approximately. As it has a big platform will gradually gain popularity in the broadcasting
sector. Spread Wings: BBC is not only the radio broadcaster and gained the popularity as the
TV broadcaster, but it has stepped into virtual world as well. They perform online
coverage and 120 hours of the news bulletin on TV and radio.
Weaknesses: Biased views: It is the weakness, BBC has raised the arguments on whether it has
broadcasting biased news or not. Unluckily, the main answers were negative. High operating costs: It is one of the main weaknesses of BBC. While, its rivalries are
performing their activities at much reduced cost, BBC is still battling in the race. Raise Controversies: BBC raised the arguments that it has touched the sensitive issues
around the world and increase disruption by digging such controversies further.
Opportunities: Getting more involvement: It is a great opportunity that BBC is getting more
correspondents and covering events at global level by facilitating better analysis. Becoming trendy: While the broadcasting firm was the recognised as the serious news
earlier, now they have encouraged fashion programs, entertainment zone and kids
channel and many more. Great packaging: The broadcasting corporation is enhancing their business day by day
and know what audience like the most. Audience prefer to get the traditional matters,
tagged and packaged in a totally new form.

 Joint Partnership is a good strategy: BBC is becoming famous as they get into the
partnership with other satellite channels (Bradbury and Galloway, 2021). That will bring
numerous growth opportunities for the company. Trying to be unbiased: It is really one of the biggest opportunities for the broadcasting
company. They are trying to provide news which are completely unbiased. One they
remove the label from themselves, they can be the strongest in the industry.
Threats: Strong Competition: BBC is facing intensified competition in its sector. CNN is one of
the main competitors through which BBC gets disturbed.
 Launching of Domestic Channels: There are other local channels as well that give tough
competition to the BBC. It may fall the viewership of the selected broadcasting company.
Effects of Globalisation on the decision-making process
Globalisation can be meant by the process where governments, companies and people
from different locations, countries interact and integrate through global trade and spendings has
impacts on the environment, political systems, culture, human well-being and economic
development around the globe (Perraton, 2019). Globalisation delivers as huge impact on the
organisation's decision-making process. It can be positive and negative impact that needs to be
encountered. BBC can be affected in both ways.
Positive impact of Globalisation on decision-making process: Gives access to a larger market: Going globalisation provides an access to a larger
customer base. It affects the decision-making process of BBC and enables to think about
the exploration of new markets in new country which can boost the sales of the services
and enables to generate more money for the business. Promotes world peace and unity: Globalisation bring governments of different nations
all together and together they tackle the common objectives. They can also enable trade
of goods and services with another country. Provides cheaper goods for audience: Because of the globalisation, there are number of
companies moving together to areas where the production costs are low, in turn, provide
cheaper goods as they are not expensive to make. Hence, audience can also get services
at low costs.
Negative impacts of Globalisation on decision-making process:

 Job insecurity: Globalisation also gives employment to jobless people in developing
nations. It facilitates low cost manufacturing jobs. It also affects the decision-making
process as the managers can provide the job to the people from different countries.
Hence, this could influence on negative note as the local people do not get approach for
the domestic jobs and people for another country tends to get hired for the position.
 Causes environmental damage: Globalisation has led to exaggerated production of
business with an intent to meet the global demand. Exaggerated production means more
exploitation of natural resources and this can be utilised before they are recreated leading
to a negative influence on the environment (Michie, 2019). In respect of BBC, it can
affect their decision-making as there are many developing countries which has distinctive
rules and regulations in respect to environmental protection and also are not restrict as in
developed countries. In order to take advantage of this, organisation leave their country
and perform their business in such economies and harm the environment.
Globalisation significantly influences the decision-making process of managers in the
BBC Corporation. Through globalisation, it facilitates ease to access information and transfer
cultural beliefs and values. This has pressurised managers to mould their leadership patterns and
styles from authoritarian to transformational style of leadership. Workers in such company also
do not provide blind loyalty to the corporation. Loyalty is attained from the rational actions and
decision-making done by managers of the company. Globalisation an transformational leadership
can give enhanced performance even in the competitive international environment. Moreover,
audience also can easily access the data and information about the company and able to compare
quality and costs provided globally (Walter, 2020). This makes organisation to pay high attention
to the needs and wants of viewers. Hence, all such things makes organisation to make global
decisions rationally i.e. which global market to enter, how to enter in the chosen market and
when and how to success or exit from the unattractive markets. All such decisions are taken to
match the demands of future which is completely uncertain (Dick and Rimmer, 2019). Making
such global decision-making involves high level of risks and needs strategies and plans to face it.
CONCLUSION
On the basis of above report, it has been summarised that analysing business environment
is very important to the organisation. It is dynamic in nature which needs to be considered by the
company. Business Environment consists with different factors such as employees, customer

demand and wants, government interference, stakeholders and many more. Macro environment
of business analysed with the help of Pestle framework. It is used to make strategic decisions by
the company. SWOT involves internal and external factors which is analysed for the BBC.
Lastly, it is found that managers of the company needs to examine several aspects before going
international.

REFERNCES:
Books and Journals:
Bradbury, T. and Galloway, C., 2021. SWOT analysis. In Encyclopedia of Sport Management
(pp. 480-482). Edward Elgar Publishing.
Dick, H. and Rimmer, P., 2019. Privatising climate: first world cities in South East Asia. In East
West Perspectives on 21st Century Urban Development (pp. 305-324). Routledge.
Gaganis, C., Pasiouras, F. and Voulgari, F., 2019. Culture, business environment and SMEs'
profitability: Evidence from European Countries. Economic Modelling, 78, pp.275-292.
Krymov, S. M. and Kolgan, M. V., 2019. On the transformation the distribution channel
structure in the digital business environment. In Proceedings of the 33rd International
Business Information Management Association Conference, IBIMA 2019: Education
Excellence and Innovation Management through Vision 2020 (pp. 2222-2226).
Michie, J. ed., 2019. The handbook of globalisation. Edward Elgar Publishing.
Moro-Visconti, R., 2021. FinTech valuation. In Startup Valuation (pp. 245-279). Palgrave
Macmillan, Cham.
Perraton, J., 2019. The scope and implications of globalisation. In The Handbook of
Globalisation, Third Edition. Edward Elgar Publishing.
Teoli, D., Sanvictores, T. and An, J., 2019. SWOT analysis.
Walter, M., 2020. Indigenous sovereignty and the Australian state: Relations in a globalising era.
In Sovereign subjects (pp. 155-167). Routledge.
Zahari, A. R. and Romli, F. I., 2019. Analysis of suborbital flight operation using PESTLE.
Journal of Atmospheric and Solar-Terrestrial Physics, 192, p.104901.