Analyzing Development and Change in the Media Industries

Every untroubled analyst or researcher moldinessiness grasp the importance of apply sundry(a) analytical tools as well as visual acquired immune deficiency syndrome to comprehend various dilemmas approach by companies. In the case of BBC we moldinessiness use various analytic tools to provide an overview of the view beingness facial gestured by BBC in 2001. Holistically, we must insure all channelises and aspects of BBC in 1999 and 200. The infra visual guardianship, Diagram A, is a representation of some financial highlights. This aid is a creation from data provided in the case study, and uses a swivel table in excel to illustration the percentage changes per financial highlight.The graph below this diagram reflects the actual numerical change and percentage change be they negative or positive. You shag see that operating gelt switch dropped considerably from 1999 to 2000 a full 25%. For a participation the like BBC this is a huge loss. In addition, turnover has incrementd both worldwide as well as on a concourse direct. Via this statistical abridgment, it can be verified that the partnership is suffering from employee disgruntlement and minify in ratings.In terms of using abstract to determine a tooth root, the company necessitys to a fault to provide a break-even analysis and sensitivity analysis to determine at which point the company is making an adequate put on margin as well as a range of probabilities that a decision or alternative decision is acceptable. (Case Study, BBC). Initially we shall look at why producing it hold programmes might be a source of encounter for BBC. BBC has over time and experience developed into one of the worlds leading broadcasters and programme makers.Ren buzz off goted for its emphasis on high quality, accuracy of insurance coverage stories, and neutrality BBC must recognize that this must be upheld as it consumes its aver programmes. In all f cinchness, BBC has the responsibility of purs uing all stories with protrude regard to who or what is paying it. Revenue that is generated should not be based upon the payers expectations yet on the equality and justification for the story. BBC is faced with these aspects as it produces its own programmes because the hand that compensationds it might not be supportive of particular stories or reporting.In addition, as BBC is part of the print industry via its own magazine it must retain its tax income why printing stories that interest its clientele. This financial situation guides BBC as it modernizes and uses b atomic number 18-ass technology to present stories in an interesting manner. In its effort to preserve its reputation for accuracy and impartiality, BBCs precaution construction had also come under scrutiny. Managers who had been recruited or hired from breakside the substantial might not have had the companys philosophy or accepted the companys historic approach to accuracy.Producing programmes in-house might have the managers external influences associated with its handling of stories. Bureaucratic tendencies might halter creativity and invoke change away from the BBC value system. This might in turn lead consumers to believe that impartiality, accuracy, and fairness has been compromised on BBCs part. (Case Study, BBC). Secondly, we shall examine why competing for ratings with early(a) television channels is obviously a huge area of conflict for BBC. In the modern world, there are some channels ranging from your basic channels to cable to direct tv.These massive tot up of channels have a tendency to give frequently preference to consumers. BBC motifs to solicitude on surveying and determining exactly what the consumer desires to see. Stories need to continue to be accurate but also contain new skills of reporting and a different manner of creative thinking in pronounce to compete for ratings. The case study relates how the 1990 Broadcasting Act required both ITV and BBC compa nies to have at least 25% of its programmes from the independent sector. As this situation occurred, morale among employees and prices dropped due to redundant stories and broadcastings.Ratings were also adversely touched by the company seeing and recognizing that its news could no longer be tailored to fit its overseas listeners and would take on a capital of the United Kingdom bias. This was get over by retaining the dedicated newsroom already based in furnish House. In general, this is always a threat to their ratings should they fail to consider oversea listeners interests and expectations. (Case Study, BBC). Finally, being a orbiculate provider is an area of conflict for BBC because like stated above the company needs to retain ratings from its oversea and global listeners.In order to be successful at this it needs to tailor its stories without losing its listeners in London as well. Because globally there are different adroitness of communicating, the company also needs t o focus on external suppliers to produce TV content which is interactive, online sites which are user-friendly and informative, and strategically position itself to have a well-organized and structured organization. Global expectations also call for having search engines, a website which is efficient to navigate through with(predicate), video and audio streaming, voting applications, and auditory sense management (website, opta).Question 3 How should the decision making assist be followed in order to make good decisions to do to the situation faced by the BBC in 2001? In order to adequately address this concern I must first iterate upon the importance and significance of the decision making change. This process itself consists of a variety of step-by-step action plan which should be adhered to. As these locomote are laid out I will tell how BBC needs to or has responded during each of these steps.Furthermore, I will distinguish if these steps have ensured that BBC is making g ood decisions about responding to the dilemmas facing the company in 2001. Depending on how well the company is handling these steps deems its success or failure level. So, the first step of the decision making process is identifying the problem. By identifying the problem the analyzer can put a name or face to the situation. This enables the company to achieve an initial understanding of where to focus their attentions and perhaps which actionable plans must be considered to resolve the situation.For BCC, their chief problems lie in deciding how much authority and responsibility it should invest in other companies creating its programmes, how much should BBC compete for its ratings as a public service broadcaster, and to what level should BBC act as a global provider. To identify the problem they need to find the source of the problem. In this case, the source of the problem lies in the authorize fee and the governments control of its programmes. Having identified the problem, yo u can focus on focusing on the problem versus the symptoms of it.This focus allows BBC to specify objectives and aim decision criteria or requirements which can aid in selecting a solution. By selecting decision criteria BBC can decide which methods it might undertake to rectify the situations that they are facing. For instance, BBCs commercial run found itself forced to produce its own magazine containing its own programme leanings. It saw that it could either remain out of the print industry, ignore that other newspapers were refusing to publish enlarge on its programs, or decide to supplement their own earnings by creating the BBC Enterprising LTD (BBC Worldwide).This also gave them a foothold in seeing a strong increase in its revenue and sales. For 2001, the company saw that past performances of inefficiency and losing audiences in the face of rapid increase in cable channels was threatening its prosperity. In the decision making process it began to develop suitable alterna tives. Depending on the character or significance of the problem, selecting an alternative or even listing out alternatives requires must analysis. By listing out alternatives, BBC can see a variety of them as well as produce creative alternatives which can either be simple or complex.One alternative is for BBC is to ignore the problem. By ignoring it, BBC can save money and time on implementations or changes but it can lose the rest of its consumer loyalty or its ratings. In addition, management would not recognize modernization, new grocery stores, new technologies, and the need for improved consumer interests. Furthermore, follow effectiveness would continue to be a problem as change magnitude argument from digital, cable, and satellite channels continued to prosper. Lastly, by ignoring the situation the certain employee disgruntlement would remain and turnover would continue to occur (Stevenson 70-73).This turnover is a professedly loss of talent and experience. In general , this alternative is not logical nor practical. In fact, BBC should develop alternatives which limit the growth of management, reorganize the structure, seek to overcome restrictions to their licensing fee agreement, focus on surveying what the consumer wishes to listen too, and determine what times to air their shows. Programmes could continue to be contracted out to get new and various coverage points and view points.Another alterative would be to have more in-house services or from the private sector in order to be financially more combative. By tailoring their programming to what the consumer wanted and scheduling those programmes in the periods that consumers would watch, there would be an increase in ratings and audience figures. This general analysis and comparison of alternatives allows the company to brainstorm which best practice or solution is most effective. Financial number crunching and comparative analysis to other competitive firms would also be wise.At this point, BBC should select its best alternative. In this case, ignoring the situation is not practical. Deciding to continue with government handling is not proactive or financially secure. So, it should select to adhere to focus on increasing ratings and audience figures. External consultants and internal representatives should hash out any such details about complying with the licensing fee agreements while focusing on modern complications and how to overcome them. By adopting a different method of funding to replace and support its income, it can overcome these dilemmas.At this point in its decision making process, BBC would have to implement the decided upon alternative after having a report listing out the pros, cons, financial rewards, and financial pitfalls should it not do so. In addition, a SWOT analysis should be completed of the strengths, weaknesses, opportunities, and threats of proceeding with the alternative (Stevenson 70-73). The decision-making process for BBC does not end at implementing the final and chosen alternative. Instead, the company must monitor, critique, and evaluate the alternative as it is carried out to ensure that the results are being obtained.A little adjustments here and there can be made to plug the company is going in the right direction. Consumers can be surveyed, employee reconstructive feedback can be requested, financial reports should be comparing the quarters at all times, and management should be fully aware of all aspects. exclusively in all, this is a very time consuming process which requires much awareness and preparedness for BBC. Question 4 Does Government policy confine the ability of the BBC to respond to its situation in 2001? If so, explain how.It is obvious through the case study, that government policy is indeed constraining the ability of BBC to respond to its situation in 2001. This is occurring because there is a system of the licensing fee. BBC is dependent on the government of each period to determine if and how it is to continue its programming as well as how much funding is to be made purchasable to it. As the political climate was favoring deregulation and a free market place, BBC found itself in a position where its license fee revenue was decreasing (Case Study, BBC).The company was being encouraged to consider venturing into commercial avenues in order to supplement its income while continuing to pay an extraordinary gist to continue to hold onto its license. These fees were continuing to increase each year, as multi-channel competition between providers increased. Works Cited Case Study The BBC. BA in business organization Studies Website Opta Creating New Businesses Case-Studies-Media. Retrieved March 29, 2007. http//www. opta. com/who_we_serve_casestudies_media_print. htm Stevenson, William J. Production and Operations Management. Fourth Edition. Von Hoffman Press. 1993