Strategic Management Report: An Analysis of BBC's Strategic Position

This individual management report provides a comprehensive strategic analysis of the British Broadcasting Corporation (BBC). It begins with an executive summary outlining the key areas covered, including a strategic audit encompassing resource, value chain, core competencies, and performance analyses. The report then delves into strategic analysis, utilizing PESTLE and Porter's Five Forces models to assess the external environment and competitive dynamics. The PESTLE analysis examines political, economic, social, technological, legal, and environmental factors impacting the BBC. The Porter's Five Forces analysis evaluates competitive rivalry, the threat of new entrants, supplier and buyer power, and the threat of substitutes. The report concludes with a reflection on the learning process and strategic actions to achieve the BBC's long-term objectives.

Individual
management report

Table of Contents
Executive summary:.........................................................................................................................4
INTRODUCTION...........................................................................................................................5
TASK...............................................................................................................................................5
strategic audit..........................................................................................................................5
Strategic analysis....................................................................................................................7
Reflection.............................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCE.................................................................................................................................12

Executive summary:
Strategic management is defined as the management of different organisational resources
to achieve determined goals and objectives in efficient manner. In strategic management various
activities are involved which are related to setting business objectives, assessing competitive
environment, analyse international environment, develop strategies and ensure that all strategies
are rolled out across organisation to attain determined goals and objectives. In this report British
Broadcasting Corporation (BBC) is taken into consideration that is national leading broadcasting
organisation of UK. In this report strategic audit and strategic analysis is mentioned that help
business to develop strategies through analysing organisational internal and external factors. In
last section reflective essay is coved on the bases of learning to complete this report.

INTRODUCTION
Strategic management is defined as the process of planning, monitoring, analysing as
well as assessing necessities of organisation which are required to meet all goals and objectives
of organisation in efficient manner. As there is regular changes are happened in business
environment that enhances the requirement to develop effective strategies that lead business
operations towards attaining success. It provides overall direction to business through developing
plans and policies for to accomplish objectives. Strategic management facilitates organisation to
gain competitive advantages over other competitors. In this report chosen organisation is British
Broadcasting Corporation (BBC) which is national broadcaster of United Kingdom founded in
1922 by HM Government. Organisation's headquarter situated in London, UK. It provides its
services world widely and employing over 22,219 employees. It broadcast its services through
radio, television and online modes of broadcasting. This report covers strategic audit which
includes resource audit, core competency and performance analysis. Strategic analysis that
includes pestle analysis and porter's five forces models are explained. In last part of organisation
critical reflection through models is mentioned. This report covers strategic actions that help to
accomplish organisational long-term objectives with efficiency.
TASK
strategic audit
Strategic audit is defined as the system or a formal examination of how successfully
organisation operate and how it uses its resources properly for attaining determined goals and
objectives over a specific period of time. The main objective of strategic audit is to develop
strong portfolio of business which provide competitive advantages to business than other
competitors (Aaker, and Moorman, 2017). It is an examination as well as evaluation of business
areas that have power to affect operations of strategic management process within organisation.
As external business environment provides opportunities and threats that can exploit as well as
damage business. There are various steps are taken to audit organisational efficiency are
mentioned below:
Resource audit: It is related to identify the resources which are available in business.
BBC organisation evaluates its resources and their effectiveness to attain organisational goals in
specific period of time. Some resources owned by organisation such as plant, machinery, retail

outlets and trademarks on the other hand, some resources of organisation are owned through
partnership, joint venture and other mediums (Abd, Abbas, and Khudair, 2019). Respective
organisation ensure efficiency and effectiveness of human resources, financial resources,
marketing and other resources for the purpose of attaining determined goals and objectives on
time.
Value chain analysis: It is defined as the activities that are related to business and
provides competitive strengths to business. BBC organisation evaluates these activities and take
decisions accordingly.
 Primary activities are directly concerning with developing and delivering products.
 Secondary activities have no relation with production and they enhance overall
effectiveness of process.
Through auditing these activities organisation can take strategic decisions regarding which
activity is best for organisation to undertake and which activities outsourced by organisation to
get competitive advantages.
Core competencies analysis: These competencies are defined as the capabilities of
business which are critical for business to attain competitive advantages. BBC organisation
conduct proper audit to identify competencies to gain strong market position and higher market
power. Senior managers of BBC organisation analyse activities and competencies which are
required to undertake by organisation in order to accomplish business goals in efficient manner.
Performance analysis: All above audit and analyse helps business to define strategic
capabilities of business. Through conducting these analysis organisation can evaluate business
performance (Bryson, and Edwards, 2017). BBC organisation evaluates its performance on the
bases of how resources are deploy in business, how resources and capabilities are compared with
other industry, how business financial performance is changes over time and various other that
reflects business proficiency.
Portfolio analysis: It analyses overall balance of strategic business unit. As BBC
organisation conducts it operations global level so, it is important for organisation to audit its
portfolio on continuous bases. Through evaluation, organisation ensures that its portfolio is
strong and viable which provides competitive advantages to business than other players (Bryson,
Edwards, and Van Slyke, 2018). BBC organisation take decisions after analysing that market has
potentiality and attractiveness that help in business growth and development.

SWOT analysis: SWOT analysis is related to accessing business strengths, weaknesses,
opportunities and threats that can Forster and hinder business performance. BBC organisation
conduct swot analysis for auditing overall strategic positioning of business efficiency and
inefficiency and its related environment.
Recent problem of British broadcasting corporation: British broadcasting corporation faces
formidable challenge as it searches for a new leader. BBC faces hostile government seeking t end
the licence fee for advertising. At that time political polarisation has undermined consensus
about its roles that enhances competition and advancement of technology changing views, habits
and preferences of customers. There is serious criticism on its editorial performance
(Hodgkinson and Healey, 2018). It impacts on business overall performance and customer base
in competitive business environment. Organisation analyse external environment factors and
aspects to develop strategic planning for handling all consequences in effective manner.
Strategic analysis
Strategic analysis is defined as the process which is related to researching organisational
business environment in which it operates business operations. It is important for developing
strategic planning for effective decision-making as well as smoother working of organisation.
BBC organisation uses various business analysis model to analyse and understand organisational
environment and take more strategic decisions for leading business in right direction. Some
strategic analysis models in the context of BBC organisation are mentioned below:
Pestle analysis: Pestle analysis includes various external environmental forces that facilitates
business to shape strategies and competitive landscape as well as provide support to its strategic
decision-making process. Forces of pestle analysis are mentioned below:
Political factor: Political factors influence business long-term sustainability as well as
profitability ration of BBC organisation. As BBC conducts in operations in various countries so,
international presence enhance sensitivity of organisation towards changes in political
environment of different countries. There are various aspects are included in political factor such
as political stability, changes in policies, pressure of governance system, taxation and trade
restrictions that impacts business performance in positive and negative manner (Joyce, 2019).
Changes in regulations and political conditions of different county impacts business performance
and sustainability. Organisation analyse these factors properly and develop actions accordingly
to deal with these aspects efficiently.

Economic factor: It is important for BBC organisation to analyse the some economic
factors like interest rate, labour market conditions, saving and inflation rates which determined
overall economic environment of country that can impacts business performance. BBC
organisation considered these factors to make more efficient and informed decisions. Global
expansion strategy of BBC is influenced by the financial market efficiency as expanding
business operations in efficient financial market improves business liquidity positioning and
strengthening the ability to enter in new market place.
Social factors: Business culture influence from various factors like societal norms, values
as well as trends. Proper understanding demographic trends, consumer spading patterns, power
structure that help business to perform its operations in efficient manner (Meral, 2019).
Marketing department of BBC organisation use these information to target specific segment of
market. Spending pattern and behaviour as well as their interest level is the factor that affect
business performance and functionality. BBC organisation analyse all these factors and develop
effective policies accordingly to attain determined goals and objectives of organisation.
Technological factors: In current business environment, rapid advancement of
technology, innovation and diffusion of technology across globe has increased the importance of
technological factors in the process of strategical decision-making. BBC organisation conducts
detailed analysis that help business to capture technological trends for the purpose of achieving
certain business advantages like enhance profitability and improve organisational operational
efficiency. Respective organisation uses social media marketing to promote business and attracts
customers towards organisation. It impacts business business performance positively.
Organisation also invest in research and development programmes and and adopt innovation that
enhance overall efficiency of organisation in competitive market place.
Legal factors: It is important for organisation to analyse legal structure and compliances
of market before performing operations in them. Careful evaluation of legal aspects helps
business to avoid some serious troubles that can impacts business performance in market. There
are various legal compliances are included in this aspect such as employment protection laws,
consumer protection laws and Intellectual properties laws (Nathan, 2019). BBC organisation
adopts these laws and legislations in business to run business activities and operations in efficient
manner.

Environmental factors: In current environment, growing consciousness regarding
environmental as well as changing climate conditions enhance the importance of environmental
factors in organisation. There are various factors are included in it such as environmental
standards, laws and regulations across different market. BBC organisation considered these
factors for avoiding undesired circumstances carefully (O’Boyle, 2017). Respective organisation
adopts recycling and waste management process as well as adopts renewable technologies that
plays important role in protecting environment from negative impacts.
Porter's five forces analysis: As British Broadcasting Corporation is the leading news
broadcasting organisation in the world which is established in UK. Organisation has eight
Pixelvision channels, 10 radio stations , 40 local radio stations and various websites. Forces of
porter's five forces model are mentioned below:
Competitive rivalry: As news industry has very few players and each participant covers
significant market share of industry. Competition level for BBC organisation is high, main
competitors of respective organisation are American new channels like ABC, Sky news but BBC
organisation still covers 40% market share of UK news industry. All competitors of organisation
are working on competitive strategies, expansion and distribution capabilities and
diversifications. Thus, all players in industry are strong and less in number which enhanace
competition level within industry.
Threat of new entrants: New entrants of new channel industry are from either local place
or international. The industry possess extraordinary setup cost that create barrier for new
entrants. Existing new channels have strong customer loyalty and they cover higher market share
as well. In industry various rules and regulations are imposed by the government and it consists
high license fee as well (Opałka,and Jarosiński,2019). As the barriers to enter in market are very
high so, overall threat from new entrants is low for BBC organisation.
Bargaining power of suppliers: As bargaining power of supplier depends on their
numbers as well as purchases that are made by organisations. In new industry suppliers are both
domestic and international who hold certain level of power. Different county has different laws
and regulations regarding news publication so international suppliers holds some power and the
other aspect is experience, popularity as well as demand of viewers and listeners. So, the
bargaining power of suppliers is moderate for BBC organisation in industry.

Bargaining power of buyers: As news industry possess intense rivalry and it has
availability of various resources, buyers or customers. For paid channels, competitors offer
cheapest packages and the switching cost for buyers is low. BBC organisation have various free
channels at national and international level that enhances organisational customer base. Thus,
bargaining power of buyers is high for organisation.
Threat of substitutes: There are various substitutes are available of BBC organisation
such as magazines, newspaper, social websites and internet. Some news which is provided by
BBC are available on other substitute platforms even in convenience and low cost. The cost of
switching is also low. Therefore, threat of substitutes are high for organisation.
All these strategic analysis are done by the British broadcasting corporation to analyse its
environment and their impacts on business operations (Oppio, and Bottero, 2018). After
analysing these factors business take effective decisions in order to run business operations
efficiently and gain competitive advantages then other competitors.
Reflection
While doing this project I have analysed that for companies it is very important to
evaluate there external environment in order to examine what challenges they could face in the
market. I have concluded that strategic management is a process of making schemes are
planning which could help an organization in accomplishing its organizational goals. While
doing this project I have learned that there are various steps to audit organizational efficiencies
such as value chain analysis, Resource audit, core competencies and many others. I have also
gain knowledge about SWOT analysis which is described as a marketing tool that helps in
examine strengths and weaknesses of a company. The SWOT analysis is also used to explore the
opportunities in the market along with calculating the risk or challenges an organization could
face while operating their business in market. I have analysed that SWOT analysis it’s very
important for company because it helps them in making sustainable strategies which could help
them in surviving in market for long time. While completing this project I have also gain some
knowledge about PESTLE analysis which is a marketing tool that helps companies in evaluating
external factors that could impact their business operations. I learnt from PESTLE analysis that
there are various factors which could influence the working of a company from outside. These
external factors could be related to political issues, social preferences, technological
advancements, environmental issues and economical challenges that company could experience

while operating their business. From this project I also gain some information about Porter's 5
forces which helps a company in evaluating elements which could influence the functioning of a
company (Silin, Dvoryadkina and Antipin, 2018). From Porter’s 5 forces I gained knowledge
that there are five types of competitive forces which could helps in examining the power of
external components. From this model I have conclude that the power of customers or suppliers
could be high or low which depends on the availability of product or services. I analyse that the
threads of substitute products could be minimised by offering unique and quality products to
customer base. The competition could be minimised if company offers something innovative and
different from it’s competitors in order to survive in the market for long time.
CONCLUSION
From the above report it has been concluded that strategic management is very important
for companies to implement so that they can make effective strategies to gain competitive
advantage in the market. It has also been discussed in the report from which it could be evaluated
that for companies it is very vital to calculate their strengths and weaknesses so that they can
perform better in the market. It has also been encapsulated from the above report that for an
organization it is very important to examine their external factors so that they can deal with
uncertainties. It can also be concluded that porters five forces help companies in examining there
competitive forces. In the end it could be said that for companies to ensure their survival for long
time have to make effective scheme or planning that could help them in operating business
operations smoothly.

REFERENCE
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