Business Environment Report: BBC's Operations and Strategic Analysis

This business report delves into the British Broadcasting Corporation (BBC), examining its types, size, and scope as a public service broadcaster. It explores the interrelationships between various functions within the company's structure, such as marketing, human resources, finance, and operations, h...Read More

Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Describe types, size and scope of British broadcasting corporation......................................1
Explain interrelationship of functions on company structure.................................................2
Describe internal and external influencers through a PESTLE and SWOT analyses on
operation of business..............................................................................................................3
Explain the influence of Globalisation on strategy of organisation and decision making....7
CONCLUSION................................................................................................................................8
References:.......................................................................................................................................8

INTRODUCTION
Business environment is quantity and gather of all external and internal factors which
included needs or expectation of customer, demand and supply, clients, owners, government
activities, trends in market, changes in economy, technology innovation, suppliers, workforce
and many more. These factors are causing in positive or negative manner to the industries and
business firms environment and conditions. It helps in measure the opportunities in business,
helpful resources tapping, helps in planning and controlling, improvement in business
performance, organisation, business profitability. There are different types of business
environment such as macro and micro environment, both are essential aspects of business. This
business report is based on British broadcasting corporation, it is a public services broadcaster
based in Westminster in London and it is oldest national broadcaster in all over world. It is
founded in 1922 and founder is John Reith, established under the Royal Charter. The below
report includes, types, size and scope of BBC, interrelation of function on industry structure,
Internal and external factors through PESTLE and SWOT analyses on organisation operation and
factors of globalisation on business strategy and decision making (Cepel, Belas, Rozsa and
Strnad, 2019).
.
MAIN BODY
Describe types, size and scope of British broadcasting corporation
Type:
BBC is public service Broadcaster in London and they serve services which is beneficial
for the society. It is directly administration funded with the helps of taxation, it is portion of the
economy combined of government at all levels and controlled business by the UK government.
They divide category like industry provide their news on TV, online and radio. In current
scenario all are using their online application because it is very handy and easy to use, this
application is also cost effective for society (Devlin, 2018).
Size:
BBC is oldest broadcaster at national level in all over world, this broadcaster is largest in
world in terms of numbers of staff, in organisation their employees number is 22000 in total and
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16000+ staff in public sector. The total number of BBC employees amount in 35402 and in this
many co workers are on part-time job, fixed contract employees and flexible also. They provide
services in world wide and they generate £4.889 billion revenue, £52 million operating income,
69 millions is net income, have total assets is 1.172 billion on annual basis. BBC provide
services on Televisions, radio and on online platform (Dibbs and Dibbs, 2019).
Scope:
BBC have various purposes at public level such as to provide unbiased news and data or
information that is helpful for the people knowing in better manner. It also give the engagement
with the all over World. To helps in suitable learning for people of all age groups. BBC show the
highest quality, most creative and classifiable services and output. There important purpose is to
reflect, represent and provide services the different groups of all the UK's regions and nations.
BBC have more opportunities in market and they contribute in country economy also. Through
this it reflects values and cultures of United Kingdom to the all over world. The main mission of
this broadcaster is to provide services and information which is unbiased, high in quality, logical
and educational and etc. BBC works on different values such as trust is the base of this
Broadcaster, which is honest and independent. They respect all cultures and everyone, they also
celebrate diversity. BBC take pride in quality level delivering and value for amount. Their vision
is to adopting new technologies and explore more channels or platforms for serving their services
it helps in building relationship with people in long term (Genders, 2018).
Explain interrelationship of functions on company structure
BBC have different functions such as Marketing, Human resources management, finance
and operations all are all these are interrelated with each other. Business divided work as per
different functions, each one is important for industry to finish the task and achieve target
objective or goals. Marketing department is based on promotional activities which promote the
services and all over company in market. It includes the selling services to people or other
business, advertisement, research of market and etc. HRM is manage the workforce or their
work in the organisation, they perform various activities such as training of employees, manage
industrial relations, selection and recruitment and manage health or safety. The operation
department is responsible for the provide better quality services to the society or people and
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focus on customer satisfaction. In this includes the manage quality of services and controlling
the quality in effective manner. Finance department is manage the budgets and they deal with to
paying employees, suppliers or receiving payments form the users. They carry various activities
such as increasing finance, budgets prepare, make final accounts and also focus on forecasting in
the business (Hamilton and Webster, 2018).
In BBC context, the interrelation between marketing and HRM department make a
strategies which is execute by the marketing department in more effective way, HRM is select
skilled employees as per requirements for the company so they perform in better manner in
marketing and promotional activities. HR managers adopting the marketing techniques to make
their hiring process more easier and smother. the marketing department interact with the
brand of the corporation to customers, the association of HR and marketing communicates the
brand of the business to employees. Working jointly, HR finds the most excellent
persons to promote and make the brand, while promotion creates and deliver the brand
significance to employees. Interrelation between finance and Operation department is essential
for the business growth in effective way, both play huge role in organisation. Finance department
provide fund to the operation department for the production of goods and services and finance
manager monitor performance on regular basis so they can manage budgets and operation
managers focus on quality of services and goods which is provide to the society or in market.
Making proper budgets and maintain quality of services is provide more sales and reach out
more people from different locations.
Describe internal and external influencers through a PESTLE and SWOT analyses on operation
of business
PESTLE Analysis
It explain a structure of macro or external factors on environment basis which is used in
scanning elements of strategic management in environment. It includes various factors such as
political, economical, sociological, technological, legal and environmental (Jones and Jones,
2019).
Political factor: BBC is independent organization or self regulated also, the company's
functions, financial operations and responsibilities of public sector are declared by a royal
charter. He is reviewed by the several UK government every ten years. The government have
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utilize the review of royal charter as procedure of usage of control all over content of broadcast,
In specific current affairs and news. As a outcome of which the government planned an direct
privatisation of BBC in 1986. BBC have very restricted policies ruled by the government some
time they feel pressurized for doing activities (Jones and Jones, 2019).
Economical factor: In the mid of 1980, the British market shift in market and trends in
economy, the structure of company were changing from centralised to decentralised in support of
excuse the authorities that was generally practices in industry in that time. The reformation of
company framework was now observe as basic to economical management. It was dominantly
order the public sector. In order to save structure of firm, the response was extraordinary. The
BBC take decision about to inherent an cultural change in company with the motive of
responding to political, environmental shifts of the period of time. Decentralisation of this
organisation was measured to be crucial factor for its aliveness, where changes in cultures was
central towards objectives or goals achieving a framework on decentralisation manner.
Sociological factor: Culture of business derives better causation from the values, societal
norms and market trends. Knowing in better manner the demographic power framework, trends,
spending patterns of customers and beliefs sharing can helps in BBC. Effective design or
marketing messages and corporate objective or goals fulfil with the support of pestle analysis. In
company the marketing department of BBC can help the data or information retrieved from,
environmental , social analysis to consider the various factors to conduct external environmental
analysis. In this there are different factors that are influence to BBC such as trends on the basis
of demographic, in this changes in patterns of demographic such as trends of migration, ageing
population and variables of socio economic have paramount essential for business at
international level like BBC. Observe the statistic characteristics can useful for BBC in selecting
the best market segment with maximum level of growth potential. The organisation and
strategies of market are influenced by movement, it is necessary for BBC to know the customer's
attitude on general basis towards the motion as it can influence organisation capability to get
managers of international level to host the country. There are equality and power distance are
involved in sociological factor (Lawrie, 2019).
Technological factor: there are different factors which are influence to BBC such as
social media marketing, innovation in technology and development, technology research and
their development, affect on cost framework or value chain, short product life cycle and etc.
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BBC should consider the latest technological innovations very carefully to order in front of the
competition. A closed eye should be keep an observing the 5g and deciding its possible to
provide business results in positive manner with support to increasing experience of people ,
speed increasing and access expand. Innovation or development in technologies such as this can
get main transformation in the organisation and success rules for player in market all are
resetting and they considering maturity stage and development of technology n individual
market is also essential. Enter in market where advancement of technology has not meet
maturity in the BBC. It van enhance the share of market by centring on emerging innovations of
technologies. BBC requires suitable investments make by competitors on a macro or micro level
to know the benefits of new technologies that frame the structure and enhance the values.
Research of technology and development is most important in a characterized environment by
unique disruption. Adoption of latest technology helps in providing high quality services and
easier the product life cycle (Logan, 2020).
Legal factor: It is important factor in pestle structure, BBC cannot explore or enter in
new market without research of legal environment in deeply and regulatory framework of the
new customer market. The careful assessment of legal aspects is needed to avoid bringing into
serious problems. There are different factors that is determinant BBC such as protection laws of
employees, consumer protection laws, intellectual property laws and etc. BBC follow health and
safety laws , UK have strict rule and regulations to ensure safety of employees. Organisation
provide security of work environment to the staff it is their moral and ethical obligation. The
information and data protection is major issue due to customer's security and their privacy
concerns. BBC require to analyse the information or data protection regulation to defend the
users data.
Environmental factor: this essential for BBC, there are different factors such as waste
and recycling management, technologies renewable, climatic and whether situations, attitude
towards those products which are eco friendly in nature and regulations of environment to avoid
resource reduction. Climatic changes and whether conditions can influence the efficiency of
organisation. In current scenario mostly people are aware a bout the environmental causes so
BBC try to use green friendly materials and reduction of resources in BBC are reflect the
negative image (Whittington, 2018).
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It is concluded that PESTLE analysis is essential tools for BBC which involve a deep analysis of
external environmental factors which shape the environment of business. Ranging from political
factor to environmental factor both comprises different variables which is influence the
strategically decision making procedure of BBC.
SWOT Analysis
Strength: This is essential for business for making it unique at market level. BBC have
effective and old reputation in market they started journey from 1922 and it become most
popular mass media industry in all over world. It is a largest broadcaster and use advanced
marketing strategies which helps in more improvement. In market they have strong market image
and use latest technologies to reach out more areas and people. BBC know the pulsation of
journalism and for all time have a propensity to carry new equipment to the viewers. Colour TV,
3D channels, HD channels, etc. are the involvement of BBC (Martins and Nienaber, 2018).
Weakness: There are various areas where BBC need to give extra attention and need
more improvement. Such as some times they have biased views when they conduct debate. In
market most of topics creates controversies in market that affect in negative manner. In
organisation they have high operating cost and this is major weakness of BBC while other
competitors are conduction their business at lower cost as compare to BBC.
Opportunity: It means to those areas which useful to grow m ore and provide better or
more opportunities in market. BBC is becoming more trendy day by day and they were getting
more involvement in organisation. Their joint partnership is also on good level and their revenue
increasing day by day. The popular reflection of BBC has crossed the deep and has its effect on
the Asian and South-American marketplace from where they are reaching sufficient revenues.
Threat: In BBC there are certain threats for BBC such as they have strong competitors
like CNN and domestic channels launching is biggest threat of BBC, there are diverse channels
which are rising to supply rivalry to BBC. Shortage of skilled employees in assured global
market represent a threat to stable development of income for BBC in those market. altering
customer purchasing behavior from online platforms could be a threat to the existing physical
transportation determined supply chain model. increasing raw material can pretense a threat to
the BBC productivity (McLean, 2018).
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Explain the influence of Globalisation on strategy of organisation and decision making
The organization strategies as well as decision making is affected by globalization. In
context with the global environment there are lot of uncertainties which lead to changes in
organisational decisions as well as changes in their strategies. When an organization promotes
their product on international basis they face intense pressure. Globalisation means to remove all
kind of obstacles and start trading internationally which lead to innovation in technology,
different culture, producing goods across different countries through which business gets
expanded internationally also. So, as in the case BBC their strategies and decision were also
changed because the company is dealing in mass media and doing business internationally their
decisions related to media was completely changed as well as certain strategies. At international
level media is completely different as compared to businesses around the nation only.
Globalisation affected BBC strategies because they had to change their media technology as at
international level latest technologies are being used (Nikitina and Lapiņa, 2019). To achieve
success and remain at the top level in mass media industry decision making also changes. The
influence of globalisation on strategies as well as decision making is explained as below:- Exchange of technology:- This is the main thing which company change in their strategy
that is exchange of technology. When company starts doing international business they
had to change their old technology also through which they make strategies regarding
usage of new technology. Technology is the most important tool of competition. Due to
globalisation, the speed of technology also increases. In context with international market
their technology is completely different and preferences of customers are also more. So,
It influences company strategies as they had to make sure that they are using correct
technology in expanding their business at international level. Leadership and decision making:- Globalisation has also influenced decision making
process of business. As, doing business at international level they had to change their
leadership style also as earlier they were using only traditional form of leadership.
Through different leadership styles a proper strategic implementation is also to be done
by management teams through using appropriate leadership style which will lead to
success (Polkinghorne and Taylor, 2019).
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 Handling risks:- When an organisation starts doing businesses at global level they need
to make decisions regarding risks which they may face. As future is uncertain decisions
are made regarding changed demands of consumers in future (Rudin, 2018).
CONCLUSION
It is concluded that business environment is an essential part to study about because it
gives a proper learning and knowledge about various factors associated with it. Learning from
the case study is a more effective way of having the deep and real time knowledge about the
management and business concepts. This report has efficiently taken the BBC into consideration
in the form of case study so that better analysis of impact of organizational elements such as
business operations, strategy and decision making could be learned. This report covers the
interpretation of type, size and scope of BBC, observing, interrelationship of various functions of
organizational structure, examining the external and internal factors which affects the firm such
as PESTLE and SWOT factors and determining the influence of globalization on organizational
strategy and decision making. Therefore, a deep identification of business environment have
been done in the report for better understanding of the concepts of business.
References:
Books and Journals
Cepel, M., Belas, J., Rozsa, Z. and Strnad, Z., 2019. Selected economic factors of the quality of
business environment. Journal of International Studies.
Devlin, J.P., 2018. A Level Playing Field: The BBC and Independent Radio. In From Analogue
to Digital Radio (pp. 93-122). Palgrave Macmillan, Cham.
Dibbs, M. and Dibbs, M., 2019. Radio Fun and the BBC Variety Department, 1922--67. Springer
International Publishing.
Genders, A., 2018. Radio as a screen medium in BBC arts broadcasting. Journal of Radio &
Audio Media, 25(1), pp.142-155.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Jones, B. and Jones, R., 2019. Public service chatbots: Automating conversation with BBC
News. Digital Journalism, 7(8), pp.1032-1053.
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Jones, B. and Jones, R., 2019. Public service chatbots: Automating conversation with BBC
News. Digital Journalism, 7(8), pp.1032-1053.
Lawrie, A., 2019. The BBC, Group Listening, and ‘The Changing World’. Media History, 25(3),
pp.279-291.
Logan, A., 2020. Gender, Radio Broadcasting and the Role of the Public Intellectual: The BBC
Career of Margery Fry, 1928–1958. Historical Journal of Film, Radio and Television, 40(2),
pp.389-406.
Martins, N. and Nienaber, H., 2018. The influence of time on employee engagement in the SA
business environment. International Journal of Productivity and Performance Management.
McLean, D.F., 2018. The great british broadcasting competition: A multi-disciplinary analysis of
the emergence of BBC television. Media History, 24(1), pp.46-70.
Nikitina, T. and Lapiņa, I., 2019. Creating and managing knowledge towards managerial
competence development in contemporary business environment. Knowledge Management
Research & Practice, 17(1), pp.96-107.
Polkinghorne, M. and Taylor, J., 2019. Switching on the BBC: using recursive abstraction to
undertake a narrative inquiry-based investigation into the BBC’s early strategic business and
management issues. SAGE Research Methods Cases, pp.1-20.
Rudin, R., 2018. Dial the difference—how and why BBC local radio and independent local radio
developed different news services. Journal of Radio & Audio Media, 25(2), pp.284-297.
Whittington, I., 2018. Writing the Radio War: Literature, Politics, and the BBC, 1939-1945.
Edinburgh University Press.
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