The British Broadcasting Corporation Commerce Essay

The BBC – An abbreviation for the British Broadcasting Corporation was founded in 1922 by charter as a public service airing company with the purpose of a deliberate intercession in the media industry. This corporation would be available to the populace as it is funded by all due to it been independent of authorities and managed by board of governors with its income being derived from Television license fee paid by over 20 million places in the United Kingdom. BBC is among the few big airing corporations in the universe that do non publicize but still obtain commercial income through the sale of programme rights and branded merchandises worldwide. The values of the corporation is being driven by these core values- Quality, Creativity, Teamwork, Respect, Trust and its Audience, these values have aided the success of the company around the Earth.This exceeding advantage of public support puts the BBC in a place of high duty by supplying high quality services, alone and dependable feedbacks to hearers and retain high rules in the media industry. As at present, BBC is taking the lead function in the switchover of airing to digital telecasting. The BBC marks to supply and advance aims such as back uping instruction and acquisition, conveying the universe to the UK and frailty versa, and most of all, enabling the public- its viewing audiences, the benefit of emerging communicating engineerings and services.As such the aim of this instance survey is to to the full analyze BBC supplying a elaborate strategic assessment through industrial overview, growing phases and internal environment analysis, together with a choice of strategic options placing competences, competitory competition, and chances and eventually reasoning with strategic solutions for the company ‘s uninterrupted and future growing.

The information will be chiefly restricted to the instance survey highlighted in the mention subdivision.

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Key challenges of the BBC

Lack of structural based agreement and management- under the way and direction of John Brit ( pre- 2000 ) the BBC was structured in a manner that the corporation had internal marker – this separated the direction responsibilities into different divisions covering three countries of BBC broadcast medium: Resources, Programme Production and Programme Broadcasting. Each division had its ain central office in order words, they were independent of each other, this which place them in a place to merchandise programmes with each other in an internal market and other airing company outside of the BBC.In this manner a programme manufacturer is able to engage the usage of studio and outside equipment, at the same clip utilizing external studio and equipment ‘they would sell their programmes both internally and to other broadcasters ‘ . This agreement was made so as to guarantee that the potencies of the administration and the value for money were maximised to the full when compared with other rivals.Harmonizing to the study on assorted sentiments by viewing audiences, the BBC is distant and excessively metropolitan, its answerability ill-defined, its programmes excessively dull or excessively copycat of formats working absolutely adequately on other channels.

Peoples think that the BBC is fighting to be decently in melody with the times and is non in touch with younger people or with people from diverse cultural backgrounds. Some commercial rivals feel that the BBC is excessively free to spread out into countries already good served and so stifles new and existing concerns and bounds creativeness. ( Department for civilization, media and athletics, March 2005 ; Review of the BBC royal charter: A strong BBC, independent of authorities ) .

Constructing one BBC

A reappraisal to the different structural agreement of the broadcast medium company was made under the leading of Grey Dyke. Grey Dyke managed to alter and re-organise the BBC by reexamining its construction and direction procedure, he introduced the term ‘One BBC. ‘ He believed that the BBC should be a topographic point where its people worked collaboratively and every bit good shared a common end and intent which is to make great telecasting programmes and an outstanding lineation servicesGreg Dyke intends to present a flatter construction – in this instance, the different division. Broadcasting and production central offices, this were grounded, go forthing the 17 managers to describe straight to the Director-General instead than to the senior direction with the former division.

These alterations brought BBC programme and channel involvement closer to the Centre of the BBC. The programme production was replaced with three new programming divisions, Drama, Entertainment and Children, these division were to besides describe straight to the director- General. Measures were taken to eliminate the internal competitory behavior within the corporation brought approximately by the internal market. There would be more collaborative commissioning procedure, broadcast and programme manufacturers would work more closely in be aftering their activities.

The BBC organisational construction

In regard to the organisational construction of the BBC, it can be described to dwell of the board of governor, the Executive board, the divisional board – ( news media board, commercial and originative boards ) . The boards that makes up the divisional board all study to the executive board, while executive board which is made up of 9 managers study to the Director-General.As have been mentioned above, the basic purpose of the Greg Dyke ‘s reforms was to cut down cost and organize a simpler organizational construction, this will further better relationship among its member of staff, doing the work environment originative, advanced and contributing.

This success was bounded by three interdependent nucleus values which are net income sharing, free flow of information and employee engagement, it is believed that employee ‘s engagement will give workers better control over their work while net income sharing will avail them the sense of ownership and the free flow of information within the corporation as at when needed will enable the workers a better apprehension and chance to better their work pattern.

Greg Dyke ‘s Goals

Harmonizing to Dyke, the audience, creativeness and programme devising were the first major end of countries targeted for reappraisal. These countries were targeted in order to win and retain its audiences in the technological age and besides making huge picks for consumers. His 2nd end was to raise the proportion of BBC support that is spent on programmes from 76 per centum to 85 per centum over clip and this meant that there would be decrease of direction operating expense from 24 per centum to 15 per centum. Dyke ‘s 3rd end was to make a civilization of coaction in order for people to work together to do great programmes. The 4th end was to alter the manner the administration works in order for determinations to be speedy and influential while retaining sufficient cheques and balances to avoid detrimental errors and this was warranted because of the manner the digital universe is engendering new entrants who acted unfalteringly.

Dyke ‘s last end was to do certain that the BBC was decently equipped with the necessary accomplishments it needed to be able to vie in the digital universe.

SWOT Analysis of BBC


Strong trade name perceptual experience: Harmonizing to Alvesson and Thompson 2004, the BBC is a good known trade name when it comes to the universe of News, media and amusement. This well-thought-of trade name is built on its committedness to quality and invention, the corporation has successfully placed itself in the market as a sophisticated trade name based on its quality services which is a cardinal strength to the corporation ‘s accomplishments. With its webs scattered round the Earth coupled with its extremely skilled human resources, it possesses an exceeding experience at garnering intelligence and developing originative programmes. Harmonizing to Harris and Wegg-prosser 2007, ‘The BBC had developed a clear scheme and strong focal point on its aims and ends ‘ .Solid Financial standing: Harmonizing to the one-year reappraisal published for 2008/2009, the BBC gross rose by 9.5 % to ?1,003.

6bn from ?916.3m in the 12 months to 31st March 2009. It could be said that the company made advancement in all of its strategic growing aims despite of the terrible downswing that affected all major sectors of the media and amusement industry. The company has shown the strength of its productions and its fiscal might in a difficult twelvemonth for the full industry through achieving grosss over a billion pounds- BBC Press Office 2009.


The BBC battles against the ferocious competition from its international challengers like the CNN apart from this ; within its internal operation, the company is still faced with the challenge of doing usage of latest engineerings. Quoting Wegg-Prosser, 2001, “ the BBC needs to catch up with the increasing tendency of digital content and concentrate its disbursement on the digital signifier instead than the parallel airing particularly in wireless where the digital wireless is indicated as the dominant engineering of the hereafter ” . The BBC is seen to be excessively conservative and excessively British, a typical illustration is the coverage of the Iraq war whereby the BBC was demoing something different from what other airing companies where telecasting. Based on the war coverage for illustration, the BBC had sanitised their coverage from war zones most particularly when it had to make with dead or hurt British soldiers.

Other country of failings includes the deficit of staffs at their international installations and besides the deficiency of strong communicating with parent company.


The company has a immense market with important chance to develop due to the current tendency in globalization and the flourishing of some state ‘s economic system ; this has placed the company in place with possible growing in some planetary markets. Harmonizing to Alvesson and Thompson 2004, “ based on the corporation being owned by authorities and still being able to bring forth immense sum of support through licence fees along with commercial selling, BBC can work the chances much better than its most competitory ” . The company besides possesses a strong online presence ; the ‘BBCi ‘ is among the most on a regular basis visited site with the proviso of broad assortment of content such as message boards, limited confab services and a hunt engine installation. Other country of chances includes increased repute of satellite wireless plan and besides possible enlargement in some international market.


With chances opened for the company due to globalization, this has besides increased menaces to its local market, as other international companies can come in and vie at its market. Based on this, there will be strong challenges among the assorted trade names which would be caused based on more competition in the industry. In this regards the company demand to rebrand itself in a manner that it will project it to be more modern by availing itself of the latest information communicating engineerings ( ICTs ) . There has besides been more consolidation traveling on between media giants. For illustration is the amalgamation between the CNN and News Corporation ; this is a major menace to BBC ability to rule the market scene.

Geert Hofstede ‘s model

To be able to explicate farther the civilization of the BBC, Jyoti ( 2005 ) made usage of the hofstede ‘s model utilizing the five value dimensions: Individuality, Masculinity, Uncertainty turning away, Confucian dynamism, and Power distance.

Harmonizing to Jyoti ( 2005 ) – Measuring the hereafter of fiscal informations integrating: Organizational construction of the BBC, Individualism/Collectivism is said to be the step of the grade at which persons can incorporate themselves into group. The maleness versus the muliebrity describes the distribution of function of gender within an organisation or society or in order words, step the degree of achievement orientation. Uncertainty turning away measures the ability to get by with the unknown or the anon. state of affairss. Power distance measures the extent to which the less powerful of an organizational acknowledge and anticipate that power is distributed unevenly, in order words it represents the grade of inequality ” . Jyoti ( 2005 ) gave the following mark based on his sentiment that the BBC mark would be low sing power distance due to the three beds of the Board of Governors, the Executive Board and the Divisional Board. He scored BBC medium-high on individuality and medium on maleness because they have a demand to stand out, rather low on uncertainness turning away because the BBC rely on the six nucleus values identified which have aided in its success and allowed it to be conservative and accepted locally which is the UK and besides in legion states all over the universe. He scored the BBC depression on Confucian dynamism based on the fact that the BBC is dependent on engineering which is could alter rapidly within a short period.


In order for BBC to travel frontward, the countries of international issues that are being related to the audiences should be reviewed. The BBC could go through information to audiences through order channels like docudramas, play, covering of athletics programmes and school programmes and non merely concentrate on intelligence and current personal businesss. There should be no bound to the sale of BBC programmes and they should work straight in partnership with assorted UK corporations in order to better the scheme of its programme gross revenues. The BBC has to construct an articulate and consistent published scheme when covering international personal businesss is it developed universe or developing universe. Due to the rebellion in planetary orbiter and overseas telegram communications, BBC must go accustomed to the complex challenges created through the major displacement in the hearing and sing pattern of its audiences in recent old ages.


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