Impact of Business Environment on BBC: An Organizational Analysis

This report provides a comprehensive analysis of the British Broadcasting Corporation (BBC), examining its organizational framework, structure, and the interrelationships between various departments like HR, finance, and marketing. The study delves into the impact of both internal and external environmental factors, including political, social, and economic influences, on the BBC's operations. It explores the company's role as a public service broadcaster based in the UK, its global presence, and its financial structure, including its reliance on television license fees. The report reviews relevant literature on organizational structures, including profit and non-profit organizations, and business types such as micro, small, and medium enterprises, sole traders, partnerships, and private and public limited companies. Furthermore, it analyzes the interrelationship of functions within the BBC and the impact of internal and external factors on the company's performance, including the influence of the global business environment and the BBC's operational divisions. The report concludes by summarizing key findings and insights into the BBC's business environment.

BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Overview......................................................................................................................................3
Literature Review.........................................................................................................................3
Discussion and Analysis..............................................................................................................6
Impact of interrelationship of functions of BBC.........................................................................6
Impact of the internal and external environment on the BBC ....................................................7
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1

INTRODUCTION
The study is about organizational framework and structure of different types, size and scope.
Organization is a structure with a purpose which can be of social service or simply making
profit. It consists of various departments within itself who have different functions to perform
and eventually support to complete the organization's objective. The interrelation between
various departments is discussed in the study like HR, finance, marketing etc. The organization
working in a business environment is affected by various factors like political, social,
economical and thus an analysis regarding these factors is done in the study. Apart from it the
internal factors affecting the company have also been highlighted. In today's era of globalization,
the influence of global business always has an effect on business strategies and decision-making.
The company being taken here is BBC which is a public company communicator based at
London, UK.
MAIN BODY
Overview
British Broadcasting Corporation commonly known as BBC, is public service broadcaster with
HQ at London, UK. It was established on 18 October 1922 and later on formed as British
Broadcasting Corporation in 1927. Its operational division, BBC News is in charge for
broadcasting the news & current affair. Being the world's oldest national broadcaster and
employs more than 35000 employees. BBC has a yearly television fees that charged from all
British households by the British Government. It has a royal charter in its name issued by the
monarch and has its offerings on TV, radio as well as online (Devlin, 2018).
Literature Review
According to Michalski and et.al., (2018), Profit organizations are those business entities which
are assimilated with the chief objective of earning monetary & economic benefits either aiding or
directly in the method. Its existence is primarily in order to generate the profits, to produce more
money than it has invested. In profit organizations, the owners of business decides to keep the all
the earned profits by themselves, or they spend the profits on their business. There are some
organization who decide to share some part of the earned profits to the employees as from their
hard-work and dedication organization have made profit. They share the profits to employees
through the help of several types of compensation ways like EPS (Employee profit sharing).

As per the Crawford, Morgan and Cordery (2018),non-profit organizations are those businesses
that are incorporated not receiving incomes from its business activities but their prime focus is to
allow activities which are basically for the advancement of the society. These organizations do
not need to pay taxes means taxes are exempted but do operate like all other sort of business. In
other words, non-profit is the type of business that is arranged under the rules and regulations
which forbids the distribution of profits to the owner. There are certain defined accounting
practices and tax rules according to which non-profit organization are to be operated.
According to Fergie, Hutchinson and Magee (2020), micro business are those business that have
or employs less than 10 people, for example any self funded business by any individual in which
only 5 people are working and generates approximately $25000 as an annual revenue. Micro
business can also be summarized as the subset of small business. This type business may
consider Business angels, credit cards, invoice factoring, friends and family etc. for finance the
business. Author defines Bulturbayevich and et.al., (2020) small business which operates on
small scale and need less capital investments, fewer no. of people and resources (machinery) to
successfully run the business. These business basically manufacture goods and services on lower
level and it plays a vital role by contributing in the economic development of UK. Proprietor of
the small organization invests his capital once for the place, machinery and plant or hire-
purchase if has lower capital. These business does not invest more than 10 million and are
categorized in small scale industries such as bakeries, candles, chocolates etc. As per Neagu
(2016), medium enterprise or medium size business are one which have invested more than 50
million in plant and machinery and but do not exceed 100 million. Generally, medium size
business are the owned by the family and there ownership is separate from management. The
financing requirements in these businesses are managed through the help of short and long term
debt and various other options such as cash flow finances, hire-purchase, venture capital, bank
overdrafts etc.
From the eye Dungan (2017), Sole trader is type of enterprise which owned by individual person
and without having legal distinction for their business entity. They may have no legal trade mark
with their business name differ, this process basically depend upon country abidance. Mostly,
their business is owned as per required with local authorities. This trader includes self employees
and that must be registered with relevant of time or either based on contracts of employments. A
sole trader keeps all profits of their business after paying taxes, and they do not shared any losses

or profits with anyone. For investing capital they have exhausted alternative resources in
financial terms.
From the point of view Ribstein (2020), Partnership in business as they shared profits and losses
and multiple owners. Some types of partnership are legally entities in registration with their
states.
Shared liability, as they have limited liability in sharing with their business and partners have to
bear full responsibility, but they are not responsible for some errors to blighter their partners in
business. They are also not permitted in all states along with that often limited liability for some
certain profession like doctors, lawyers etc. Sharing profits, both partners in company they share
all profits which they have earned from their business. Both of them have many rights in their
company equally, and they can make more developed to their organization. Between them
sharing profits is done, with all rules and regulation which they are required to be followed up.
As per the perspective of author Fleming and et.al., (2016), Private limited company is the
company is the one that is not traded on London Stock Exchange or on any other, basically it is
run by its own member. It requires minimum two members to start its operations & there is
compulsion against calling the general meeting annually, neither is any requirement of issuing a
statement or prospectus. Private limited company can start its business just after the
incorporation but transfer of shares is completely restricted. In the private company, written and
signed resolution is received by holding the general meeting.
As noted by JENKINSON (2020), public limited company is one which is listed on the
recognized stock exchange such London Sock Exchange and is traded publicly, the minimum
members required to begin the plc is seven and it is obligatory to arrange statutory general
meeting and inviting all the board members. For the public limited company, it is mandatory to
issue the prospectus and it also needs certificate of commencement after the incorporation to start
its business. In this company, members can easily transfer their part of shares and it is essential
for the public company to appoint an company secretary in their business.
There are few others types of Ownership such as Corporations like C&S as per the Schenk
(2017), C-Corporations which is independent entity which is legal and is closely-held by the
shareholders this means that the corporation or company is legally responsible for its own debts
& its profits are taxed by the government. S Corporation is the another distinct type of company
which is developed by Internal Revenue Service tax elections, business can confront the dual

taxation by making it as S- corporations but it needs to sure that is a domestic company and do
not have more than 100 shareholders.
Discussion and Analysis
BBC is a public supported telecommunication company. Institution has its dominance in
television and Radio set in the UK, run 7 telecasting channels offering premix of programming
which includes pleasure activities, news program, present-day concerns and sports channels. The
companionship was formed in 1922. More than 80% of the company's total revenue comes from
the UK.
The firm is the world's ageing national communicator and galactic in the world by number of
employees. The company has overall 22,000 employees of whom 16,000 are in public sphere
medium (Antonopoulou, 2016). Organization also offers wide range of career opportunities in
the areas of news media, mass medium, application and corporal roles such as human resource,
Finance etc. The leading purpose of the company is to improve citizenry living with curriculum
that intercommunicate, train and entertain by being most imaginative organization in the world.
The company simply do not focus on what they are doing but also care about how to do
something is also important.
In India, BBC operates in nine spoken languages and become the top abroad marketplace. The
communicator records 13% growth to 50 million spectators. BBC rises currently up to 47
million, due to rise in the number of audiences globally. BBC offers services in English language
as well as 42 other speech communication. Most impressive gains for BBC has been seen in
India, Kenya and USA. The USA has become the number 3rd in sizeable market. The income of
the BBC has not fallen but has continued its unstoppable rise. Ministers have insisted on
investing 10% income on useful public services for instance S4C rather than increasing
company's market dominance. By looking top 20 of the most visible domains of UK, BBC stands
on number 8 and a heavyweight with 628 points (Boehmer, 2016).
Impact of interrelationship of functions of BBC
Businesses separate tasks into functional activities. The four main functional areas
include the functional activities. Functional areas involve marketing, operations, HR and finance
department. Interrelationship are when each department has a relationship between other

departments of the organization. The departments need to communicate closely with each other
to work for achieving company's objectives and goals.
The sales department of BBC work collaborative with other departments of the company.
Organization must construct a kinship with the finance division which helps to provide a
monetary fund and amount of currency that will help the sales division to work expeditiously.
Finance department tightly supervise the reimbursement that the business concern has and
guarantee that sales section merchandising the commodity to the customers in effective way to
achieve business goals. In BBC the sales department also works with the help of research and
development department which helps the sales team to work on the tasks which are in favour of
viewers. The research and development team describes the interests of the viewers to the sales
department and make sure that the news and information provided by them on the channel are
relevant and justified in nature.
In BBC, the HR and Finance department works towards one goal i.e. achieving higher level of
performance and profitability. In current scenario, HR managers perform certain duties that were
traditionally performed by finance departments. BBC ensures that the personnel division and
financial unit discuss to each other and work towards the achievement of a particular prescribes
goal. The primal responsibility of human resource manager is to make certain that the
administration has materials with the accurate ability and quality to do work efficiently in the
right positions. To achieve the objective of talent retention the HR team is interdependent on the
finance division for things like financial blue-print, new hiring actions, grooming the existent
manpower etc. Vice a versa the finance department also dependent on the HR to ensure to get
great upper line outcome from employees working in BBC and get the assistance from HR to
design award programs or to maximize returns.
Impact of the internal and external environment on the BBC
Internal factors bring up to anything within the structure and below the power of the
organization. It can be both touchable and unidentifiable. These components can be sorted out
into capability and imperfection of the company. The component which convey optimistic effect
on the institution comes under the strengths of the company vice a versa the element which
brings the negative effect on the company comes under weaknesses (Dalirazar, 2020).

SWOT Analysis of BBC
Strengths
It is the largest broadcaster of the nation with government approval and support. It has a diverse
workforce employing around 2000 journalists. It maintains a number of foreign bureaus and has
correspondents in a number of countries. The company has an old reputation and a customer
following with faith in the news of BBC (Grainge and Johnson, 2018).
Weaknesses
It has been reported by many people that the views of BBC are biased thus getting its popularity
graph down. BBC has high operational costs which lessens down the net profitability of the
organisation compared to its competitors and this leaves BBC behind them (Bloom, 2016).
Opportunities
BBC has entered in entertainment zone and programs on fashion, technology etc. are being
shown. Thus they have entered a new zone apart from news. BBC should be unbiased in news
and cater to the audience all over. BBC can have a partnership with other satellite channels as
this will bring more business opportunities. BBC can organise global events which can
strengthen their image as a global brand (Devlin, 2018).
Threats
Rising Competition among news channels like CNN are giving competition to viewership of
BBC. Also rise in domestic channels catering to domestic audiences along with newspapers are
also giving competition to BBC.
On the adverse to internal component, the extrinsic factors are those who effects the external
and below no control of the fellowship. Taking consideration of external factors the businessmen
take appropriate changes to their merchandising program to make it more versatile. External
factors includes: (Edeling, 2018). Political factors:Political factors include the decisions and laws that are made by the
government. Tax, laws and political stability are under the political factors. BBC is a self-
regulating organization. The organizations duties, roles and transactions are controlled by
Royal Charter. Government had used the revaluation of royal charter as a procedure of
control over broadcast content. As a result of which, the government proposed
unquestioning privatization of the BBC in 1986.

 Economic factors:After the organizational changes from centralized to decentralized,
organization decided to build an structure ethnic change with an purpose of
environmental and political shifts of the times. Fragmentation of the BBC was known as
a crucial factor for its survival. Socio-cultural factors: Governmental addition point out the BBC and doubted the sequel
of treasury. Dissemination was used as an large importance to cut down the bureaucracy.
Post bureaucratic also, BBC proves itself to be the desirable receiver of government
resources. With a significant number of viewership the company kept up its prominence
as an genuine news broadcaster.
 Technological factors: In mid 1990s, BBC took an inaugural of fetching the
establishment online. In order to podcast the computerized work, the measures have to be
put into mechanism whereas the administrators and producers support the speculation
made in telecasting and Radiocommunications. Along with its digital services the
establishment also went below other business organization technologies to reducing the
cost of doing business.
 Legal factors
The legal factors which concern BBC are that it is still controlled by government. Government
decides the license fee for it and some people are of the view that government may not be
depositing the whole amount with BBC and keeping some part themselves. The board of
directors are still appointed by the government thus signifying government's control over the
corporation. The Royal charter also issued by the monarch in previous times has to be renewed
by the Corporation after every ten years. BBC had to adjust its internal environmental culture
according to the deregulatories which came up in 1980s (Grainge and Johnson, 2018).
 Environmental factors
BBC has been active on environmental issues like recycling and rain water harvesting.
Disposable cups are not allowed in office and they have a centralised recycling system. The head
office is supported by a rain water harvesting system. Energy saving lights installation in office
show the concern of the company towards eco-friendly measures. The organisation promotes fair
trade products. BBC has been taking sponsorship of events related to global environmental
concerns and doing its bit in environment sustainability. BBC also takes participation in

environment campaigns to spread awareness about the need for organisations to reduce their
carbon footprint (Bloom, 2016).
CONCLUSION
It can be concluded that BBC is an organization which having served public for many decades
has to make some necessary changes in its structure to stay in competition for viewership. The
rising competition and marketing strategies adopted by satellite channels are advanced and BBC
will have to match up to them. They have to understand the internal and external factors
influencing their business and accordingly respond to them by making suitable changes. The
corporation has made changes like offering programs on entertainment, children's shows etc. and
diversified from its traditional offering of news. It will have to focus on extending its viewership
to a new segment of customers.

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