Analysis of BBC's Business Operations, Strategy, and Decisions

This report provides a comprehensive analysis of the British Broadcasting Corporation (BBC), examining its organisational structure, size, scope, and type as a public service broadcaster. The report delves into the internal and external environments influencing the BBC, utilising PESTEL and SWOT analyses to identify key factors affecting its operations. Furthermore, it explores the impact of globalisation on the BBC's strategies and decision-making processes, highlighting how international trends and interconnectedness shape its approach. The report also assesses the influence of the digital revolution on the BBC's business strategies, considering how technological advancements and online platforms have transformed its operations. Finally, the report examines the interrelationship of functional departments like ICT, Broadcasting, customer service, TV and Radio and their impact on the overall strategy of BBC.

Analysis and evaluation of the impact
of organisational elements on
business operations,strategy and
decision making

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK 1............................................................................................................................................3
The brief explanation of the size, scope and type of BBC..........................................................3
TASK 2............................................................................................................................................5
Internal and external environments influencer via PESTEL And SWOT..................................5
TASK 3............................................................................................................................................7
The effect of globalisation on organisational strategy and their decision-making.....................7
TASK 4............................................................................................................................................8
Impact of digital revolution in BBC's business strategies...........................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
We live in the dynamic environment nature where the changes happen all the time. The
organisation must understand the concept of business environment and how the changes effect
the business environment. Business environment is the part where all the conditions, events are
influence the environment and affect the nature of the company. A business environment is
dependent on the external and internal environment of the business (Annarelli and Nonino,
2016). The external environment are beyond the control of the company whereas the internal
environment are easily control and change by the companies in order to make the changes. In
this assignment the chosen organisation is British Broadcasting Corporation, a public service
broadcaster, which is situated in the broadcasting house in Westminster, London. This
organisation was founded in 1922 as the British broadcasting company but in 1927 they changed
their name as British Broadcasting Corporation. The assignment include the various information
which are related to their business operations, strategies and decision-making process. It further
include the type, size and scope of BBC, their interrelationship of the functional departments. In
addition to this internal and external factors are analysis with the help of SWOT and PESTLE
and the brief explanation for the effect of globalisation on the respected company.
MAIN BODY
TASK 1
The brief explanation of the size, scope and type of BBC
Organisations can be explain as the group, structure which are set up for achieving
certain goals. To elaborate the business there are various types of organisation, each were set up
to serve the unique function of the and complete the need of the societies within which they
operate. For British Broadcasting Corporation, its size, scope and type are elaborate further:
Size Of BBC: it is the world oldest broadcaster at the national level. It is offering the
broadcasting services by providing employment to more than 22000 employees and more than
16000 employees are providing service in the public sector broadcasting (Bull and et.al., 2016).
The organisation is set up by royal charter. It provide the more than 10 national TV channels,
regional TV programme, and also providing the internet TV service. In addition, it provide 10
national radio stations and more than 40 local radio stations. They also provide an extensive
website where the people go through with the any information which are needed to them. They

provide there services in more than 42 languages including English. BBC produce their content
in England, Scotland, Wales and N Ireland by offering services included on TV, radio and online
platform.
Type of the organisation: Although there are basically three type of organisation,
Public, Private and Non-profit organisation which are diversified on the basis of profit earning.
Private organisation are those which main motive is to earn the profit by providing best quality
and attract the customers (Zhang, Lu and Gao, 2015). Whereas, the NPO are the one which are
work for the public not for the profit motive. In last the public sector organisation which are set
for the any particular purpose other than profit earning. BBC are the public sector organisation
which are work for serving the customer not for the profit but for satisfying their need. In detail
it is a statuary corporation which work on the different broadcasting channels.
Scope of BBC: Their main mission is to act as the public interest organisation and serve
the customer of the society direct the supply of being impartial. Providing high-quality and
distinctive products and services which not only inform the customer but educate and entertain
them (Christensen, Lægreid and Røvik, 2020). The future scope of the BBC is in the online
platform, where the new technologies are used by the BBC make an impact on the many areas
and customer of BBC. They have a good business culture as they provide the learning
information which are helpful for all age group. They welcome the creative ideas related to their
products and services. BBC welcome the diversifying community which welcome the supportive
creativity. Their funds which are collected by the licensed fee paid by the UK people. They
provide their services on television, radio, BBC world service, other financial expense and online
expenses.
BBC used the various Business theory and one of them is motivational theory which is
given by maslow's hierarchy theory (Day, Gu and Sammons, 2016). Which provide the support
and motivate the employee of BBC so that they provide there best support in the company and
the customers of BBC are satisfied. BBC provide the various channels to their customers which
are helping them to complete there basic need define by the maslow. At the same time they
provide the growth opportunity in the organisation for their employees. BBC provide the current
affairs news, various type of content, BBC studio and different strategies help the company to
provide the growth in long run aspect.

Interrelationship of the functional area: Business organisation are separate their task
according to their functional area and department. The main functional area which are divide in
BBC, are ICT, Broadcasting, customer service, TV and Radio (Dereli, 2015). These department
are helpful in containing the information which provide the support to the company in the future
growth. As all the department are interrelated in the BBC, like the marketing department are
consider all the information and make a proper plan in relate to planning, organisation, directing
and managing the all departments. They have to make a coordination with other department like
finance, R&D, and digital marketing department. The Human resource department must have to
make coordination with the managing department because that department tell the HR
department about the vacant position and in which department the employees are need. So this is
how the interrelationship in between the department are connected and work in BBC.
TASK 2
Internal and external environments influencer via PESTEL And SWOT
The internal and external environment of the business like BBC. The impact of macro
factors are influence the different department among the international, national and regional level
(De Baerdemaeker and Bruggeman, 2015). In the BBC it is important to use an updated external
and internal environment so that they would reduce the wrong forecasting effect within the
organisation. They provide the inputs which are helpful in making the strategies and testing the
development planning . The PESTEL and SWOT analysis are discussed:
PESTEL analysis:
 Political factor: The Boards director are mainly hold and focus on the responsibilities of
the BBC. It is the self regulating broadcasting company which are mainly focus on the
current issues and political issues which may give impact on the organisation's decisions.
Major political factors which may pressurize BBC and evaluate the truth of the news
which are broadcast by organisation.
 Economic factors: In the mid of 1980, British market change their nature from
centralised to decentralised. As the impact the government cut the cost which put an
impact on the reduction of the company's budget. As they pay high licensing fee which
affect the dividend of the company in the next some years. Furthermore the global
economic impact create a reformation in the BBC structure.

 Social factors: They use the different structural design to meet the customer's changing
demand in the market. Like they started to broadcast the cartoon channels in order to
complete the heavy demand fall of the UK market.
 Technological factor: The new software technologies and updated software with the
internet connections are useful for BBC (Felix, Rauschnabel and Hinsch, 2017). To
reduce the cost reduction in BBC they used the re-engineering programme which are
helpful in resource utilizations. As its implication BBC make the brief changes in their
website.
 Legal factors: UK government provide the permit BBC for provide a limited period
broadcast. In the BBC they needed to make a shift and adjust the market environment to
meet the market shift.
SWOT analysis:
 Strength: BBC has started their journey from 1922, and it has several decades to make
the image to maintain the level and work smoothly in the organisation. It is not oldest but
also largest broadcaster public sector undertaking in the world. Furthermore they use the
updated and advance technology which are helpful for the organisation. As the board of
directors know the behaviour of the journalism so they always try to change and use the
updated technologies in the company.
 Weakness: As it is a wide organisation so they mostly had to face the issues which are
raised related to the broadcast biased news. Because of the such a controversies in the
market most of the time they blamed on the news and area of coverage which are used
by BBC (Van Der Vleuten and et.al., 2015). Another weakness in BBC is they have the
high operating cost, as compare to their competitors. BBC competitors are selling the
same product at the lowest price in the market.
 Opportunities: Their are various opportunities which are helpful in making the impact
in the market. The new technological changes are become trendy and help the people to
become involve in the global events (Flynn, Koufteros and Lu, 2016). Increasing
revenue is the option for the company by going cross sea and make an impact on Asian
and south American market. BBC must try not to be biased and solve the issues which at
general level. Once the company remove the targets so they become the strongest on the
field

 Threats: The threat to the BBC is strong competition in the market, for example CNN is
the strongest competition in the UK market. Another threat is the domestic channels
which are increasing competition to BBC.
TASK 3
The effect of globalisation on organisational strategy and their decision-making
Globalisation which means the whole world is becoming interconnected by trade and
culture exchange. It is the result of increasing human innovation and technological process as the
global market provide the greater opportunities for the people work into the more diversifying
and larger markets across the world (Jahan, Edwards and Bahraminasab, 2016). There are the
various reasons by which the globalisation process is influenced.
Improvement in transportation: having the more improvement in the transportation
will help to expand the globalisation. Larger in the number of cargo ships are reduce the cost of
the transportation in the BBC. Influencing economies of scale are the most important scale to
reduce the operating cost on the larger scale. With the help of globalisation the transportation
will help in transfer goods and people more easily.
Freedom of Trade: WTO promote the free trade between the countries at world wide
network. Which indirectly help to remove the trade barriers of the countries.
Improvement of communication level: The advance internet and mobile
communication will allow the greater communication level across the world. Also this will help
the BBC to spread the information related to what the company serve to there customers.
Cost and trade relation: In BBC, cost of the operations and trade are helpful in reducing
the cost of the company. Also the availability of the labour and skills at the cheapest cost will
help the company to understand the nature of the new market and help them to setup in the
market at the lowest cost.
Competitors and market: while spreading BBC network in the global level, it will make
the impact by increasing competitors in the market (Jenkins and Williamson, 2015). BBC will
not able to use the competitive advantage in the global market. The main competitors of BBC are
ITV, CNN, SKY and FOX NEWS. The undefined market area of BBC help the organisation to
expand globally across the whole world.

After knowing the factors there are various theories which are used and implement by the
BBC to manage the globalisation impact in the market and on the company. First one is theory of
Liberalisation; liberalisation means the process of globalisation, to complete the human desire
for economic and political autonomy in the market (Lichfield, Kettle and Whitbread, 2016). This
theory help the companies to work in the ethical environment, technological advancements,
suitable legal entities and information processing system. Another theory of globalisation is
political realism; here the issues which are pursuits as the national interest and solve the conflicts
which are having in between two and more than two states. It also about the production,
consumption, and discovery of the resources which are useful for political realism. Third theory
of Marxism; it is the theory which is concerned with the production, social exploitation, and
unjustified distribution are used and evaluated in this theory. This theory also investigate the
theory and explore the identity of the people in the globalisation market. All these theory will
help in increasing the awareness about the globalisation and make reduce the impact of the
globalisation in the markets of the UK.
TASK 4
Impact of digital revolution in BBC's business strategies
The impact of digital revolution will spreading across the world, most of the private
sector in the business organisations are invest in digital technologies to get ahead in the
competition. As they are using different business models which are useful in meeting the ever
increasing customer expectations. The increasing digital impact revolution will make an impact
at the broadband industry. The digital revolution will make an impact as the open source
documentary and this would happen as because of the transformation of BBC in 2010 (Miller,
2016). the impact on digital revolution on BBC's business strategies will provide the advance
technologies factor, increasing the high-quality online content which are useful in make an high
investment. Furthermore the low cost production model will help the BBC to work in the market
and make the competitors challenging. The ease of digital revolution will make the easy deal for
the customer, digital capable and informed the data by the BBC to their customers.
Social media, will impact on the lifestyle of the people which make an impact on the
business practices. Prior to the social media, many of the business arrange the live events to find
the targets customers and provide the relevant information within the organisation. Social media

help the organisation which help in managing the cost by lowering the advertisement cost, reach
the targeted audience in the ease and check the performance analysis and make the company
more smarter in the market. Furthermore social media change the lifestyle of the customer which
make the brand awareness in the customers (Sarkis, 2017). Social media platform will increase
the inbound traffic of the website. Social media platform help the search engine optimization
which increase the chances to be found the site online, ability to reach the people. It will also
increase the conversation rate means converting the leads into the customer of the BBC.
Distribution system which enable the access in global markets for the BBC, which serve
at the multinational broadcaster. They are providing and delivering the wide varieties of the
languages and regional services on radio, TV and online. BBC serve their services in UK market
mostly, as they are inspiring and illuminating the life of the people, around the world. There
target audience will be aged in between 15 to 24 mainly. Till now BBC spread its expansion in
the market, by distributing more than 40 languages around the world and now they are targeting
to expand their market in Belgrade to Bangkok (Sharma and Lijuan, 2015). In the distribution
system of the BBC enable the access in the global markets as they operate the level of media in
the landscape operations of UK. BBC's TV help the customer to work and manage the demand of
the customer in the market and with the help of IP address they work as the multiple device.
They also distribute their system as traditional distribution where the live streaming and non-
linear products whereas the online distribution products work on the online platform. It serve
there distribution system by suing a mix in internal and external means of suppliers.
CONCLUSION
From the above assignment it is concluded that the analysis of the elements are used for
the aspect of the organisational valuation in the industry. These elements are used in making the
strategies, business operations and decision-making. The business environment is very important
for the any type of organisation. As there are various type of companies are present which are
divided on their own different basis. With the help of Swot and Pestle analysis important to
know the current position of the company and work according to the need of change within the
organisation. Furthermore the impact of the globalisation will effect the company and there
operational activities. As the impact of globalisation are included as competitors, market size,
business cost and its operations which decrease or increase the impact of the sale. In last the

digital revaluation make a strong impact on the individual personal life and this will make effect
on business strategic activities and solve the decision making situation easily.

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