SIM337: Contemporary Development in Business and Management BBC Report

This report provides a detailed analysis of the British Broadcasting Corporation (BBC), focusing on its contemporary development within the context of external factors. It begins with an introduction to contemporary development in business and management, emphasizing the influence of both internal and external factors on an organization's success. The report then delves into Task 1, examining the external factors impacting the BBC through a PESTLE analysis, covering political, economic, social, technological, legal, and environmental factors. It also applies Porter's Five Forces model to assess the competitive environment. Task 2 explores Corporate Social Responsibility (CSR) and sustainability, evaluating their influence on the BBC and critically assessing the effectiveness of the BBC's responses. The report concludes with a summary of findings and a list of references.

Contemporary
Development in
Business and
Management
Assessment

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
External factors influence over the company..............................................................................3
PESTLE Analysis........................................................................................................................4
Porter’s Five Force Model...........................................................................................................6
TASK 2............................................................................................................................................8
Corporate Social Responsibility (CSR) and Sustainability.........................................................8
Influence and relevance of Corporate Social Responsibility (CSR) and Sustainability on the
company.......................................................................................................................................9
Critical evaluation about the effectiveness of the BBC response to Corporate Social
Responsibility (CSR) and Sustainability...................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Contemporary development is defined as the success and growth of an organisation on
overall basis. Contemporary development is enhancement and enrichment of a company from all
different sources and in all different manners. An organisation its business and its management is
dependent upon various factors which are bifurcated into internal and external factors. Every
company have numerous internal external elements which affects its business and its
management, along with moving it towards growth and success. The internal factors are those
which are present in the entity and which are controllable by that means company and its
management can influence the factors and make efforts to manage them according to the
business of the company. On the other hand external factors are those which are present in the
external environment and on doors organisation do not hold any control or power. In case of
external environment company can only take respective measures and actions to make them say
dribble and beneficial for the management and business (Terziev, 2018). Contemporary
development in business and Management is affected and dependent upon those internal and
external factors having huge influence over the business and more importantly its profits, aims
and objectives. The report is based on BBC that is British Broadcasting Corporation one of the
oldest and the largest broadcasting house in the world. BBC was founded in 1922, 97 years ago
by John Reith and headquartered in London, UK. This report covers the influence of external
factors over BBC with the help of PESTLE analysis and porter's five forces model. Furthermore,
a particular factors is being considered and elaborated along with its impact on the organisation
along with highlighting describing the actions which is taken by organisation in that particular
segment.
TASK 1
External factors influence over the company.
BBC is a multinational organisation which is initially established which business in the UK
nationally and which growth and success moved internationally with more and better services
now the organisation is serving to worldwide people and in worldwide locations. BBC earned its
reputation and goodwill of “honesty and accuracy in the news broadcasting” during the world
war II and it is a public funded organisation. The company started its national broadcast coverage
throughout the UK by 1925 without any interference and influence of political parties and

government. The organisation gets its fund by licence fee charged by UK households and the
early 1970 was a Golden era for the BBC due to recent increase in sales of television sets and
other related electronic equipment’s (Akhtar and et. al., 2018). In next few years BBC introduced
its digital services due to the enhancement of technological advancement and use of technology.
BBC launched its digital Service named as BBC news online which between the leading website
across the UK and one of the leading broadcast online site across Europe. This implies that
which changing environment business conditions and evolution taking place contemporary
development of business and Management is affected by external factors. Therefore, the
PESTLE analysis and porter's five forces model is used to analyse and understand the external
environment of BBC and impact of various factors on the contemporary development of BBC
business.
PESTLE Analysis
PESTLE analysis is basically a framework which is comprises of six components which
broadly affects the business in business environment externally. PESTLE is an acronym of
Political, Economic, Social, Technological, Legal and Environmental factors. PESTLE analysis
provides a valuable insight to the company in relation with the operating challenges that they are
going to face in a particular industry. Pestle analysis of BBC is as follows:
 Political: BBC is an independent and self-regulated organisation which fulfil is public
sector responsibilities, functions and financial operations by Royal charter. The royal
charter of BBC is reviewed by respective governments every 10 years (Myers, 2019).
The checking and review of Royal charter is a process which is used by government for
applying control over the broadcasted content in particular to the news and current
affairs. The political stability that the country has in the recent year is one of the positive
political factors for BBC as the laws which are imposed are mostly in favour of BBC by
looking at is contacts and relations with the politicians and government. As BBC is
regularly reviewed by Royal charter and under the terms of chartered the chairman are
appointed by the government which was in favour of the organisation from past years but
now the company is facing and going to face several problems and challenges as the
government holds huge powers on the management of the company. The real challenges
which are faced by BBC are very e influential and one of the most important factor is of
decriminalization and receiving lower support from the government and other politicians

which is impacting the organisation and its well-being. It has seen that the political
environment of BBC has been changed from the past to the current situations. The
government is seeking the need taking back control of the operations and functions of
BBC which is definitely not a positive impact on the organisation.
 Economical: These are those factors which pertain to the economy of the country that
BBC is operating. The increasing GDP and interest rate in the country would effective
the growth of BBC as it will result in more investment individuals are willing to borrow
and invest more and more money for earning higher profits and returns. One of the most
potential economic factors which will affect the growth of BBC is the stability of the
currency as an unstable currency will discourage and decreases foreign investment and
international investors to make further investment in the organisation.
 Social: The factor is social element which has direct reflection to the society and on the
population in which BBC operates and for which the company provides and broadcast
news another important information. BBC is a public funded organisation which impact
on the growth of business as the funds and investment stocks its success and growth also
gets hindered. The organisation has always maintained its reputation as an honest and
accurate broadcaster with the significant number of viewership from very long time and
its presence in the marketplace from last 98 years makes the social environment and
social factor beneficial for the organisation its growth and success (Clifford, 2018).
 Technological: The digital and technological environment around the globe and buried
economy is rapidly in frequently changing which is dismantling the price structure and
competitive landscape of industry in a very short amount of time. Therefore it is become
very essential and important for BBC to constantly and consistently innovate not only for
the sake of increasing possible profits and becoming market leader but also to prevent
excellence in the near future. This is one factor which is taken very seriously and BBC
makes efforts and take initiatives to be competitive in the technological world. BBC took
initiative to take BBC online and introduce it digital platform in 1990 and brought
cultural strange in the organisation and its structure. Various investments how made in
TV and radio programs at that time for broadcasting the BBC digital services. The
organisation still takes initiative and moves with the technological changes and

increasing digitalization in order to be competitive and effective in the external
environment and in front of all the competitors national and international.
 Legal: The legal factor concentrates and focuses more on the legal structure given by
government institutes and the frameworks issued by the political parties. BBC develop its
policies on the role as it is an independent and self-regulated organisation but these
policies and legal framework of the company are made in accordance and by aligning
them to the legal structures and frameworks provided by the government for the
respective industry (Malik and Jasińska-Biliczak, 2018). Intellectual property laws and
other data protection laws are in place to protect the ideas and patents of the company
which are profitable and potential it because of secrecy and rarity.
 Environmental: The last and the most recent factor which is added into PESTLE
framework is environmental effects over the organisation and its business. The changing
environmental condition and increasing global warming this is one of the most important
and influential factor which can affect the growth and success of an organisation. Every
company have some corporate social responsibility which they need to fulfil in favour of
the society and the nature for what they are taking from it while doing their business.
These social responsibilities are not mandatory by the loss but to few organisations who
are producing a lot of waste they are under obligation towards the corporate social
responsibility (Temelkova, 2018). BBC is responsible towards the society in only e and
most important manner is to provide them honest and true vision about what is happening
in their country and around the globe. In current scenario all different economics are
facing and fighting with the deadliest disease is named as coronavirus as or COVID19.
Being a news and current affair broadcasted it is the responsibility of BBC to provide all
the data and information to people about the situation of the world and their own country
along with providing them through to knowledge in relation with the measures and ways
government is taking to fight with this virus and keep it away from the population in
order to make the world and their country a better place to live and sustain.
Porter’s Five Force Model
One another very e beneficial and informative tools which can help organisations to analyse
and understand their external business environment is Porter’s Five Force’s model. This
framework is made of five elements which are very essential for organisations and in this case

BBC to know and accordingly develop their strategies for gaining their competitive edge and
sustaining in the marketplace. The five elements of porter's five forces and their impact on BBC
are described underneath.
 Threat of new entrants: This factor refers the new news channels of TV and radios in
the local or International entering the industry and competitive environment (Kolk and
Rivera-Santos, 2018). There are many are use and restrictions for individuals before
entering any industry and one of the biggest barrier of the industry in which BBC
operates is the extremely high setup cost. Along with it BBC has in extremely strong and
valuable customer loyalty with it. Therefore, it is very difficult for any new businesses to
enter the market by investing huge cost and establishing brand awareness.
 Bargaining power of Suppliers: The power of supplier depends on the number and the
volume of purchases about the company and also on the number of purchases available in
the market. Bargaining power of suppliers of BBC is medium as different nations have
different suppliers and also different rules and regulations regarding the publication of
news. So in the news industry the supplier’s power depends upon the regulation and laws
of the particular country along with the potentiality of their information for the relevant
channel and data source (Al Qurtuby and Aldamer, 2018).
 Bargaining power of Buyers: This factor refers to the power of the customers of BBC.
Meaning power of customers is high due to the intense rivalry and many different sources
available in the marketplace to the buyers. The choice is present in front of the buyers are
very large. There are both paid and unpaid channels and in that segment also this element
has power over BBC.
 Threat of Substitute: This threat is obviously very high in the current scenario for the
BC and all the other news channels. Increasing power of substitute such as magazines
news blogs internet social media websites etc., is due to the increasing digitalisation and
technological advancements. Internet and social media is becoming the part of to day life
of people which cannot be taken away from them. Therefore the power of substitutes is
very high in case of success of BBC and news industry.
 Competitive Rivalry: The last but not the least element is existing competition. Most
potential element and factor which affects the growth and success of organisations and in
this scenario the BBC is existing competitors. The news industry has very few players but

all of these have their significant market share of the overall industry that names no one
has higher power over others they all are competitive with one another holding equal
power and opportunities in the marketplace and in the industry (Xie and Redding, 2018).
The current scenario and situation of the markets and the world it is very competitive in
case of news industry because of the COVID19 situation. The only industry which is
profitable and in business in the current scenario of the world is used industry and
therefore it is the most competitive industry right now. BBC is one of the leading news
channels in the UK and around the world, has number of competitors local and
international which can affect its growth and success.
TASK 2
Corporate Social Responsibility (CSR) and Sustainability.
The corporate social responsibility that is CSR and sustainability are two separate concepts
which exists in the business environment what they are aligned and treated as similar by some
businesses and organisations. Corporate Social Responsibility (CSR) refers to the company’s
commitment practicing and working according to the environmental and social sustainability and
be a good steward of the environment and social landscapes in which they are dealing. Social
responsibility a voluntary act and practice of company which they undertake in order to
determine the favours and contribute some part towards the society of which they are taken for
developing and running the business smoothly (Carbery and Cross, 2018). Sustainability on the
other hand is described as the ability of an entity to maintain and develop various systems and
processes which are in favour for three factors that is environmentally socially and economically.
This is a comprehensive approach of Management related to all different business practices by
focusing them on created and maximizing long-term economic social and environmental values.
The corporate social responsibility and sustainability concepts processes are the response to the
challenges of the modern world facing organisation from the public and private sector. While
practicing many organisations make use of the term corporate social responsibility and
sustainability interchangeably but both of these concepts are different from each other. The
reason behind companies and marketers use these terms interchangeably is because of the motive
of these concepts that is of economic social and environmental enhancement. But this activities
are separate can be aligned by the organisations while conducting few practices in relation to

both the concepts for better results and effective implementation of different actions. Aligning
social responsibility and sustainability concept can help the company enhance and improve its
goodwill in front of his customers and other general public along with gaining growth and
success in the industry and the competitive environment (James and et. al., 2018).
Influence and relevance of Corporate Social Responsibility (CSR) and Sustainability on the
company.
BBC or British Broadcasting Corporation, is on the top and leads the news industry in the
world by maintaining its reputation of a true and accurate information on news provider. BBC
provides all sort of information with the help of their news channels and digital platforms to the
people and reach to them at all times. The company has a very large customer base as it is
operating in national and international markets from very long time which give it an advantage
of acquiring a large customer and their loyalty. Along with it the organisation also has a very
large network of suppliers locally and in international offices. All these key elements groups
have large and potential influence on the success and growth of BBC (Harmon, 2019). There are
other factors also which are internal and external both that have large impact on the business of
BBC can turn the market according to them within a very short span of time. Therefore they also
have impact on company’s corporate social responsibility and sustainability policies.
 Customers influence: Customers and the buyers satisfaction and Quality services is one
of the most important and ultimate goal of organisations in news industry and therefore it
is the ultimate goal of BBC also. Customer’s behaviour are dependent upon the overall
performance and product quality of the company. The brand image of BBC is 1 is the
potential element which brings large amount of customers towards it. Customers also
have a very large and efficient influence over the sustainability and corporate social
responsibility strategies of BBC as they are the ultimate resource of it by which company
can grow and in hands with the changing market conditions and increasing competitive
rivalries.
 Employee's influence: The human resource is referred to as employees of every
organisation and in news industry they are also the most important resource of
organisation. Employees have influence over the sustainability and CSR practices of
BBC as they are the one who are going to implement and execute the plans of the
company. This it is very important for organisation like BBC to engage their employees

in determining and development of most effective strategies for the purpose of growth
and plausible success in the marketplace from other competitors. Employee engagement
also brings competitive advantage towards the company as employee productivity is an
very influential factor for attaining a competitive inch and success in the competitive
market (Harper-Shipman, 2019).
 Competitors influence: The news industry is having very high competitive environment
and BBC the competitive rivalry is also holding high power. This is because in the news
industry there are very less competitors as compared to other industries but the market
share is equally divided in those leading news retailers and this prove that competitors
and competition have a very large influence over the growth and success of BBC. The
company needs to conduct market research and services in order to know no and gain
knowledge about the sustainability and CSR practices followed by its competitors in
order to be one step ahead of them and being more sustainable.
 Self-influence: The organisation BBC is involved in corporate social responsibility
activities and sustainability practices and their personal influence and involvement in
such actions refers to as self-influence (Syed and Tariq, 2018). The actions and practices
processes which are used by BBC in favour of their corporate social responsibility and
sustainability strategy directly have influence over the customers and their business. This
automatically influence the growth and success of the organisation due to you there
initiative and efforts made towards the corporate social responsibilities and sustainable
means of processes. The Goodwill of the company is improved along with the customers
as they develop a positive image of BBC in their minds. External factors such as
governmental or political and environmental factors will be in favour of the company, all
these external and internal elements will be ultimately moving the organisation towards
success and better development.
 Public influence: In business of earning profits aim of company is of satisfied customers,
the public refers to the people are a mixture of potential customers of the company's
offerings and who are not the customers but can be potential buyer in the future (Grima
and Thalassinos, 2018). Therefore public influence is also a very influential and
impacting element towards the growth and success of all different kind of organisations
situated in separate industries. BBC is news broadcasting organisation which renders all

updates and information about the current scenario and situation of the market and all
different segments basically what exactly is happening in their country and in the world.
Therefore public is the potential and most important sources which can influence and
improve the growth and development of BBC. The company and employees of it has to
work by keeping in mind all different types of people present in the society where they
are operating and to whom they are serving. In news industry public influence is foremost
as they decide the existence and potentiality of a news channel more than any other
element.
Critical evaluation about the effectiveness of the BBC response to Corporate Social
Responsibility (CSR) and Sustainability.
 Greener Broadcasting: As a news and broadcaster BBC have been broadcasting many
environmental and sustainability issues from very long period in the programs and
content which are being broadcasted. But the organisation as largest BBC having huge
impact over thinking and mentality of people with the help of their programs decided to
embed environmental and sustainability operations in the running structure of the
organisation (Gbadamosi, 2019). The Initiative and approach environmental
sustainability which is taken by BBC is named as greener broadcasting. It has been
recognised by the organisation that as a publicly funded company it is their duty to ensure
that they are taking measures to keep the environment clean and imposing very little
impact on the environment and nature of the country. The organisation is creating and
aiming for sustainable working conditions by which they are informing and engaging
employees in working in low carbon, efficient environment, using minimum resources,
producing minimum waste and travelling only when necessary. The company is buying
renewable electricity to power their buildings along with offering training and awareness
campaigns for the staff. Also BBC makes target for reducing carbon emissions in line
with science-based methodology and cutting single use of plastic. BBC also collaborated
with the Bafta Albert consortium and who promotes the Albert sustainable production
tools and partnering with other broadcast and technology life cycle to share best practices
and stimulate demand for green products and services.
 Educate: BBC wants to stimulate both formal and informal learning across the range of
subjects and issues which are currently being faced by the world (Newburry, Liberman

and de Miranda Oliveira Jr, 2019). The organisation encourages people to learn
throughout their lifetime cover as many different topics as possible through methods
which are aiming to be accessible engaging and challenging. BBC events are the greatest
way to learn something from the UK greatest experts. Many outreach activities conducted
by BBC which enables them to come face to face with audience and provide
opportunities for participation. One of the greatest example of these events are BBC news
school report which helps children's to learn more about news and citizenship. More than
25000 children's around the UK takes part in School News Day event which is conducted
by BBC. In this event the whole day was broadcasted on multimedia channels school
report life and feature mixed media content created by participating schools.
 Targeted audience: BBC acknowledges the unique role which is played by the people
and the targeted audience in serving towards the environmental and sustainable issues.
Therefore the organisation made its sure that their audience in customers understand
interest the contribution of BBC towards a sustainable world and informed and inspired
about the contribution they can make as individuals (Apostolopoulos and et. al., 2018).
The company develop programs and reports which are being published and broadcasted
on social media and with the help of news channels radios and other names of delivering
information. In these reports and programs company continuously provide the updates to
the people about their improvement and progress towards the motive of greener
broadcasting and making the world more sustainable. Along with it in these reports which
are freely made available to the people who are far away and cannot be reachable by
many others competitors and news channels. These reports contain the reflection over
environmental issues and their relevance towards the lives of people across the globe and
themselves. Through these reports BBC inspire and inform people about the increasing
environmental destruction which are caused mostly by the humans and for which various
measures are necessary to be taken by the people in order to secure and procure the
environment mother nature and ultimately the world.
CONCLUSION
The above report summarises that contemporary development of business and Management
of a company is affected and influenced by various internal and external factors. Contemporary
development basically refers to the success in growth of organisation in the competitive and