Business Environment Analysis of BBC: A Comprehensive Report

This report provides a comprehensive analysis of the business environment of the British Broadcasting Company (BBC). It begins with an executive summary outlining the key factors influencing BBC's operations, including internal and external elements. The report defines different organizational types and explores the interrelationship between organizational functions, emphasizing the importance of aligning individual and organizational goals for sustainable growth. It examines the type, size, and scope of BBC, detailing its structure and functions. The report then delves into the internal and external influences on BBC, using SWOT analysis to assess its strengths, weaknesses, opportunities, and threats. Finally, the report discusses the impact of globalisation on BBC's strategy and decision-making processes. The report concludes with a summary of the key findings and insights regarding BBC's business environment.

Business Environment

Executive summary:
Business environment is the combination of external and internal factors that impact on
organisation's operations and functions. This report covers all factors occur due to changes in
internal and external environment. In this report, types of organisation can be defined. There are
mainly three types of organisation present in business world that should be understand. It also
covers that organisation's functions are interrelated with each other as it has common goal.
Organisation has a goals that they achieve sustainable growth in market. This goal should be
know by each and every organisation so that they can perform accordingly. Organisation should
integrate individual goals with organisation goal so that they can have a common goal. Every
organisation want that they have global terms in trade. So this report also covers impact of
globalisation on organisation's strategy.

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Type, size and scope of BBC......................................................................................................3
Interrelationship of functions on organization structure.............................................................5
Internal and External Influencers................................................................................................7
Influence of globalisation on organisational strategy and decision making.............................10
CONCLUSION .............................................................................................................................12
REFRENCES.................................................................................................................................13
Books and Journal.....................................................................................................................13

INTRODUCTION
Business environment is the sum of all surrounded internal or external factors that affects
on business operations or functions either positively or negatively (Abreo, Pinzón and Chacón,
2018). It is very important for the organization that they should firstly consider the internal
factors so that they can able to handle external environment. It can be analysis with the help of
PESTLE analysis and SWOT analysis. There are many functions in the organization that
interlink with the business environment because they are directly or indirectly affected by them.
So it is very important for the organization that they should prepare for the unexpected things by
making of their strategies flexible so that they can handle with them. In this context, BBC is
undertaken to understand the external and internal factors that how they can affect them. BBC is
the British broadcasting company established in 1922 that run their business in all over the world
at a very large scale. This report also undertakes the impact of globalisation on business strategy
and decision making of organization.
MAIN BODY
Type, size and scope of BBC
It is very important for the organization that they firstly understand the type, size and
scope of company then afterwards they are able to understand the external or internal factors. In
this report BBC is undertaking as the company which is broadcaster that shows news to
audience. BBC is statutory corporation that means they are independent that not affected by
directly government but it is also true that statutory corporations are made by governments. So it
is the company that is regulated by Ofcom. and BBC Board from April 2017. They has not direct
interventions from government but indirectly exist. It is large organization if size is considering
because they run their business from 1922 that not easy for every organization to survive long
term in market. BBC is the oldest broadcaster of the world so that they serve many services not
only news it also have radio stations in which they performed very well. In company
approximate 22000 employees are currently working in organization (Ahmed and et. al., 2017).
If company include part time, full time or flexible hours staffs then they has nearly 35402
employees that a good number for the large corporation. It can be clearly estimate from the
below bar graph that how company reach on the weekly basis.

It is very important for BBC that they should take necessary steps for extending their
scope so that they can earn and grow better. At this time, BBC has very wide scope because they
run their business globally and they didn't only focus on news channel but also many other
activities. The scope of BBC is mentioned below in the following points:
 The main ambition of BBC that they stated in their objectives that they want to expand
their business through online news so that they can threaten commercial news providers
whether they are local, national and international levels.
 They are creating their own suite so that they can sustainably transition world into
digitalise. They create so that they can damage the local press sector through developing
suite in local news services beyond the UK's communities (Geng, 2017).
 BBC's editorial scope of online news services is continuously rising or expanding that
becomes a very great news for their growth and success. They change their core
broadcasting so that they can explore more opportunities. They are converting into
traditionally commercial editorial areas like celebrity columnists, ‘soft’ news articles, and
magazine ‘lifestyle’ content.
 BBC makes very high quality content that becomes very good for the organization
success and growth because every person like the right and accurate content. They are
always thinking about accuracy so that they can provide the best quality of content to
audience.

 They are not only focus on BBC news but also they serve many other channels which
entertain by audiences. They innovate their radio stations from traditional into digital
radio stations that means they innovate their technology which is very good for their
scope expansion (Hübl and Fischer, 2017).
Interrelationship of functions on organization structure
Organization has many functions that they should be performed effectively and
efficiently so that they can attain their main objectives and goals. BBC is the company where
they applied two types of structures in their organization so that they can control all the functions
accordingly. It is vital to understand organization structure so that they can interrelate with
functions of an organization. Organization structure is important term that refers to the way in
which functions are divided according to the departments (Kaharuddin and et. al., 2017). With
the help of organization structure person can easily find their jobs so that they can not confused
with their roles and responsibilities. BBC adopt flat and hierarchical structure according to the
objectives and task that means they apply two types of structure in their organization so that they

can ease the tasks and bifurcated according to the objectives. organization has many functions
that they should be performed well so that they can attain their objectives efficiently and
effectively. Those functions are stated below and their interrelations on organization structure is
also mentioned:
Human Resource and Marketing: Marketing is the important department of the
company because it is the one who promotes the goods and services of the organization. BBC is
the broadcaster media so it is very easy for them that they promote their services in the market.
But it can be make sure that those person who are appointed for the job role of marketer, they
should be very good in their job so that they can performed very well. BBC is large organization
so that they has many competitors in the market. Because of that reason they always focusing on
their marketing strategy that made by their marketer that they are effective or not.
The appointment of the marketer is on the hands of human resource department. BBC
needs best journalists in their organization so that they can grow more and more. That means
both functions of organization are interlinked with each other (Lincoln, Guillot and Sargent,
2017). Without HR marketing can not be done very well. Human resource play a very crucial
role in the organization because it is the only department who take care about needs of human in
the organization. They are recruited and selected the most suitable candidate so that they can get
maximum benefits from talented person. Firstly they identify needs of company then they go for
searching agencies so that they can invite a number of candidates in the organization for
interviews. They are selected to the most suitable candidates in the organization so that they can
achieve their desired goals and objectives.
Finance and Information & Technology: Finance is core part of organization because it
acts like a backbone in which they are purchase day to day related materials so that all operations
are run well. It is very important for the organisation that they has strong finance department so
that they can mange their funds very appropriately. It is important because of organization can
take decisions accordingly for their investments whether it is for short term or for long term.
Through finance organization can adopt best technologies for BBC so that they can advertise
their news very easily. It is very useful to overcome with the factor of technological up
gradation. Information and technology is the important term in finance department because of
this they can easily make the budgets and other accounts that are necessary for maintaining
finance. IT is the sector that helps to compete with other organisations. It generate competitions

in the environment and for that BBC can take competitive advantage from this thing. It is very
important to make financial structure and many other things are run with the help of IT. For
example, HR of company make salary accounts of each and every employees only on the basis
of IT. Without IT they go for paperwork which increase hectic for HR manager, time, cost, etc.
Production and Research & Development: Production is refers to the term in which
organization make their own products and services to the customers. BBC is the broadcaster
services that provide services to the customers that means they produce the best news or quality
information to the customers so that they can achieve their desired targets. But it is not easy for
BBC because they need a very high profile research and development department who search the
undisclosed news that is relevant for audience and not release by any other news channels.
Research and development is the important department in the organization because they identify
and develop new opportunities so that they can grasp their market. It is very important function
for the organisation but for that they should have some productions so that they can use this
department (Rahim, 2017). If research and development department can not perform well so it
affects on each and every function of the organization because they are interlinked with each
other. So in this way both are interlinked with each other.
Internal and External Influencers
The internal influence on the operations of the company can be analysed with the help of
SWOT analysis. SWOT analysis is an effective tool which can be used for analysing the internal
working environment and business operations of BBC. This tool will help in establishing
benchmarks for the company to compare their current performance with it and make
improvement if necessary. With this, the SWOT analysis of the company is explained below:
STRENGTHS WEAKNESSE
The strengths of the company refers to those
that transforms the brand into unique
organisation in the market. The strengths are as
follows:
 BBC have establish an effective
reputation in the market due to which
Weaknesses can be defined as the area into
which the company needs to concentrate more
and try to reduce it. The weaknesses of BBC
are as follows:
 The company have been framed under
some controversies due to their debates

the people have developed great faith
on the company (Reilly and Jones III,
2017).
 The company have spread their wings
which have diversified their operation
not only in radio broadcastings but also
in TV platforms.
 BBC is always concentrated towards
their marketing strategies which will
help them in attaining their goals.
on some sensitive issues.
 Also, the company have been blamed
for the biased news which have effected
their corporate image. Moreover, this
reflects their inefficient financial
planning.
 For managing their image, BBC is still
lacking in reducing their increased
operating cost as compare to its
competitors.
OPPORTUNITIES THREATS
The opportunities for the company helps them
to grow bigger and better. For this, the
opportunities of BBC are as follows:
 The company is becoming trendy day
by day by entering into entertainment
zone and organising programmes.
 BBC have stepped into partnership
contract with other satellite channels.
 BBC must try to deliver unbiased news
as after the removal of the tag from
their image they will be turned into an
strong brand.
Threats can be tagged as obstacles in the
growth of the company. In relation with this
BBC have the following threats:
 Competition is the biggest fear for the
company as this will disturb their daily
operating activities (Usunier, Van Herk
and Lee, 2017).
 Also, there are many domestic channels
which are entering the industry due to
which their TRP is getting lesser.
For the external analysis of the business environment of BBC, PESTEL framework can
be applied easily. This will provide the knowledge of the factors that are affecting their growth
prospects in the negative and positive ways. The PESTEL analysis of BBC are as follows: Political Factor: These factors involve the intervention of the government in the decision
making process of the company. BBC have received royal charter due to which they have

get the patient rights. The company is an statutory corporation but independent from
direct government interventions (Ren, Fosso Wamba and Childe, 2017). The political
conditions of UK will effect the company on the other hand it might also create effective
opportunities for the company also. With this, the factor can be considered as threat for
the BBC. Economical Factor: Since the company is serving their services across the globe, they
contribute the major portion of their profit to the GDP of UK. With this the company can
convert their organisational culture into decentralised form. In the meanwhile, UK have
faced recession which have impacted the level of prices (Zhao, Zhang and Kwon, 2018).
With this, the factor can be considered as threat for BBC as the economic conditions can
not be predicted easily. Social Factor: The broadcaster company provides services in multiple regional
languages. As the company is providing web portals in many languages which depicts
that they are effected by the socio-cultural disparities of UK. Also, the company is
working t a global level due to which they have to follow the culture of multiple regions.
This factor can be considered as an opportunity as BBC will be able to expand their
operations. Technological Factors: The new trends in UK will provide numerous opportunity for a
broadcaster company like BBC. As the company is based on technological operations and
for this they require new technological techniques. This will help the company in
upgrading their services and if they will not follow the trends then they will be tagged as
obsolete technological company which will impact their productivity and profitability.
With this the factor can be considered as opportunity and threat both for BBC. Legal Factor: The company is working in the external environment in UK and for
running their operations smoothly they have to follow certain rules and regulations. As
the company is serving broadcasting services due to which they are being targeted by
numerous controversies. So the company must follow rules and regulations properly in
order to establish a good government support. This factor can be considered as a threat
for BBC (Caiazza, Shimizu and Yoshikawa, 2017).
 Environmental Factor: These factors involve that the company must provide trustworthy
information to their respondents. If the company will provide accurate information to the

customers then this will help BBC to establish a leading position in the industry. The
environmental policies of UK might effect their operations. This factor can be counted as
threat for the company.
Influence of globalisation on organisational strategy and decision making.
Globalisation can be defined as a process of developing interaction among the companies
and cultures across the globe. For this the company aims at establishing interdependence on the
world's economies. BBC have diversified its operations at various countries due to which it have
enhance their customer base. Also, the company have entered into various new markets and
established an effective image. Although the company have been tagged as biased news
broadcaster but they are trying to remove it (Gromoff, Bilinkis and Kazantsev, 2017). In the
mean time the company is interacting with other regions and try to gather the news for
broadcasting through their services. But this have emerged as a threat. As the company will face
an extensive competition from different satellite channels across the globe. The theory of
globalisation theory are as follows:
Theory of transformational-ism: This theory of globalisation deals with the
interconnection between political, cultural and economic matters across the globe. As in this the
world is creating a shared social place. In this relation, BBC uses this theory in order to drive
change in the company and will develop an understanding of how to work with people. Also, the
theory will enabler the attainment of the organisational strategy of the company.
The organisational strategy of BBC defines the importance of communication and media and
along with this the company is prioritising developmental issues which will support marginalised
groups across the world. The globalisation will help the company to get an overview of the
developmental issues across the globe and will address them in front of general public. Also, the
company follows the strategic decision making process in which the company takes decision
after analysing their strategic objectives.
There are driving factors which effect the BBC business environment namely;
international business, trade, markets and competition. The competition factors involves that the
company is effected by the entrance of various local and domestic satellite channels that will
reduce their market share in the industry. The international market sometimes creates obstacles
for the company as they have to develop their knowledge about the current issues and will have

to serve them differently (Leke, Chironga and Desvaux, 2018). Due to which the operating cost
of the company gets increased as they have to expand their business internationally with the
effective services.
Digital revolution can be defined as the shifting from the mechanical technology to
digital technology. This is considered to be the third industrial revolution. This revolution have
impacted the BBC company. Due to this new business models will capture the markets online.
Also, the new social media trends have impacted their distribution networks in a positive way.
As the company is planning to enhance their scope in the online world. This will help them in
creating an competitive advantage in the industry. In addition to this they will be able to enhance
their productivity, profitability and potential growth prospects. Their distribution networks will
be transformed in such a way that the users will establish an direct link with their services. With
this the company can develop major business practices that will help them in engaging large
customers towards their effective services (Oliver and Parrett, 2018). As customer engagement is
the key for their success and the company emphasises on providing accurate and authenticate
information to their respondents. Due to this the company will be able to attain maximum profits
which can be applied towards reducing their threats and weaknesses. Due to the digital
revolution the customers will be able to get an high quality content online which will shift the
linear viewing trends to on demand and time shifted viewing.
CONCLUSION
From the above study it can be concluded that BBC is an statutory corporation who is
independent from government operations. Also, this report provides an evaluation of the
interrelationship between different operational functions on organisational structure. With this
there is an analysis of the internal and external environment of the company. Furthermore, it
discusses the concept of globalisation and its influence on organisational strategy and decision
making process. With this, it will evaluate the impact of digital revolution on BBC's business
strategy. Lastly, it will discuss that how social media have impacted the business practices and
distribution networks of company.