Business Formation and Purpose of the BBC and Virgin Organization - Case Study Example

Business formation and purpose The BBC organizations INTRODUCTION The BBC is the worlds leading public service broadcaster. Its mission is to enrich peoples lives with programs that inform, educate and entertain Established by a Royal Charter, the BBC is a public, semi-autonomous transmitter service firm that runs under the UK Household and its license fee is paid by the Household itself. They use the income from the license fee to provide services including 10 national TV channels plus regional programming, 10 national radio stations, 40 local radio stations and an extensive website (Cameron, 2008). BBC World Service broadcasts to the world on TV and online, on radio, providing news and information in 27 languages and world service English language. BBC Worldwide has a number of other commercial ventures. Profits from these activities are returned to the BBC for investment in new programming and services (BBC, No Date). History: In the year 1922 by the public opinion, as well as the spectacular growth and popularity of radio in the United States, had attracted more public pressure on the authorities to deny a full service any longer. After five months of deliberation a company to be known as the British Broadcasting Company was to set up eight stations in major cities around the country. Like this the BBC was born. on November 14th 1922, The British Broadcasting Company started daily transmissions by that time more than one million ten-shilling (50p) authorization had been announced. In 1927 the company was restructured as a public corporation -the BBC which is known today- by its founding father, John (later Lord) Reith, but by this time an even newer technology was being developed -television. In 1926 Baird enlisted the aid of Selfridges in London to put on public demonstrations of his equipment., the BBCs official line was that Bairds pictures were well below standard and that they had too little potential for improvement (BBC, No Date). By 1932 the BBC started regular experimental broadcasting. They offered Baird a studio in their newly acquired premises in Portland Place, Britains first dedicated television studio, was housed in the basement of Broadcasting House, and it was from here that Baird continued to experiment and refine the new medium. Competition came from the Electronic and Music Industries (EMI), based in Hayes, Middlesex, where they had been working with the Marconi Company on developing a high definition system. In May of 1934 the British government appointed a committee for setting up a television service followed by the Seldom Report where The BBC was to be entrusted with the development of television, which had to transmit a definition of not less than 240 lines with a minimum of 25 pictures per second (Teletronic, No Date). Industrial classifications: Industries are classified into 4 sectors, namely- primary, secondary, tertiary and quaternary. The employment structure of a country shows how the labor force is divided into the different sectors. The tertiary sector is also called the service sector and involves the selling of services and skills. They can also act in selling goods and products from primary and secondary industries. Examples of tertiary employment include the transportation, education, health service, entertainment, finance, tourism, retail and sales. BBC’s domain here is tertiary, as it operates in entrainment and service sectors mainly. The BBC is a major employer and buyer of goods and services sourced from outside of the BBC. During 2011/12 the BBC processed 259,305 transactions (new contracts and payments) employed 22,580 employees, and engaged with on-air and off-air freelancers numbering 64,447. Business ownership and type: The BBC is a partially self governing benevolences transmitter operates in a License and Agreement from the administrative wings of the UK goverment. Within the United Kingdom its work is funded principally by an annual television license fee, which is charged to all British households, organizations and companies and using any type of equipment to receive live television broadcasts; the level of the fee is set annually by the British Government and agreed by Parliament. Size and scale: The commissioning of programs from the independent production sector and the way the BBC does business with external suppliers has helped to underpin a dynamic and vibrant commercial production sector which in 2011 had an estimated income of £2.4 billion. The BBC bought in around £1.4 billion worth of goods and services each year to backup the program making and content creation. These transactions are themselves a major source of economic benefit. Aims and purpose: BBC’s mission and vision: 1) To enrich peoples lives with services and programs that inform, educate and entertain. 2) To become the most creative organization in the universe. Their values: Trust is the foundation of the BBC: they are independent, impartial and honest. Audiences are at the bottom line of everything they do. They take pride in delivering quality and value for money. Creativity is the lifeblood of its organization. Respecting everyone and celebrate diversity so that everybody can contribute their best. BBC is a public involvement that brings significant settlement to audience as consumers and to society more generally. Functional areas: 1) The Finance & Business division manages all aspects of the BBCs finances. 2) The Operations Group is responsible for strategy, policy, distribution, property, legal affairs and business continuity, including managing BBC buildings and major infrastructure projects. 3) With the divisions on all aspects of staff management, including recruitment, contracts, and training and development. 4) BBC Marketing, Communications & Audiences works with content-makers throughout the BBC, providing audience insights and delivering marketing and communications campaigns. It is also responsible for communications with the general public, opinion formers and the media. 5) The Future Media & Technology (FM&T) division is responsible for all of the BBCs digital media services. Conclusion: BBC’s plan for how it can best deliver the highest quality programs and content to audiences until the end of the Charter in 2017 set out some clear priorities. These include: 1) A commitment to support the development of a wider ‘public space’, with a growing number of partnerships with other public bodies and commercial bodies which will provide on-going benefits to the creative economy. 2) An increased reliance on commercial income, targeting additional funding from commercial operations of at least £40 million per annum. 3) A renewed commitment to use the BBC’s funding, brand and technology to drive economic growth across the UK. They are already making good progress in implementing these strategic objectives. In 2012/13 they will take forward a number of initiatives which will enhance the BBC’s support for the creative industries. Virgin Organization: Introduction: Virgin is a leading international investment group and one of the worlds most spotlighted and respected brands. Conceived in 1970 and by Sir Richard Branson, the Virgin Group has grown to successful businesses in various sectors ranging from mobile travel, telephony, financial services, music, leisure, holidays and health & wellness. Virgin employs around the world more than 50,000 people, operating in over many countries. Global branded revenues of £15bn ($24bn) in 2012 (B, 2013).   History: In the early 80s Richard Branson was probably best known for Virgin Records - the legendaryRecord label that signed famous names like the Rolling Stones, Janet Jackson and The Human League. In 1984 Virgin Atlantic Airways was born. By the end of the decade they had flown over 1 million passengers and started shaking up services onboard by being the first airline to offer individual TVs to their business class passengers. In 1992 Richard sold Virgin Music to The EMI and invested the proceeds into Virgin Atlantic, improving on an already great service. In 1999 Richard sold a 49% stake in the company to Singapore Airlines valuing us at a minimum of £1.225bn. In the same year, for services to entrepreneurship Richard received a knighthood. In 2003 the launch of Virgin Atlantic’s introduction of profound Upper Class Suite, the longest and most cozy flat bed and seat in business class. In March 2006 the new Virgin Clubhouse at Heathrow opened. In 2007 Virgin introduced the launch of Virgin Atlantics brand new check in facilities at Heathrow Terminal Three. In 2008 they operated an advanced biofuel demonstration with Boeing and engine manufacturer. Industrial classifications: Virgin group falls under the headline of tertiary sector, as it has been grown in service sector, availing its customer services like mobile telephony, travel, financial services, leisure, music, holidays and health & wellness etc (Emsting, 2008). Business ownership and type: Virgin Group Ltd. is a British transnational identified venture capital clustered founded by entrepreneur Richard Branson. Although Branson retains complete ownership and control of the Virgin Brand, the commercial set-up of companies using it is varied and complex. Each of the companies operating under the Virgin brand is a separate entity, with Branson Completely owning some and holding minority or majority stakes in others. Occasionally, he simply licenses the brand to a company that has purchased a division from him, such as Virgin Mobile USA, Virgin Mobile Australia, Virgin Radio, Virgin Music (now part of EMI) and Virgin Media (now part of Liberty Global). Size and scale: Virgin has created more than 300 branded company worldwide, employing approximately 50,000 people , In 2009 Global branded revenue exceeded £11.5 billion (approx US $ 18 billion). Led by 51%-owned Virgin Atlantic Airways, The groups travel-related operations are among its largest cash generators. The airline flies around the world with to about 35 destinations a fleet of almost 40 aircraft Virgin Blue, which operates. Its Australian low-fare cousin, a fleet of some 80 aircraft. Virgin Group also runs Virgin Rail and sells tour packages. Besides travel and leisure, financial services and telecom (Virgin Media) included the groups major operating areas. Aims and purpose : 1) To provide value against money for their customers, 2) Good quality, 3) Brilliant customer services, 4) Implying more technology and innovative idea which ultimately would generate profits. 5) Although the virgin group has no corporate structure, Branson, senior executives and its adviser do form a team that guides strategy, business development, and overall financial control. As such any strategic objectives that would include changes in either the management, financial or organizational structures, or that would entail diversifying or consolidating any of its entities would almost surely be considered only if such objectives are in cosort, are in group’s abiding culture. Functional areas: 1) Its telecom division working and giving service continuously to grab a larger market, 2) Its airline division is positioned as one of the world’s topmost airline companies. Virgin are consistently improving and developing themselvesto provide luxurious airlines experience to the customers (Thottam, 2008). 3) Its music record department has collected fame worldwide, and it’s a most renowned name in this industries. This division works for betterment of its sound recording system from their early days. 4) Virgin galactic introduced as a luxury space tourism in the history of all time. Though it is an expensive one, they are trying their best to cater the market and they are hoping for potential customer base in the future. Conclusion: Being a multinational company Virgin group has spreader through worldwide; the group continues to look for growth opportunities to offset the airline industrys ups and downs. Emerging Virgin projects include alternative energy, stem-cell storage, and other innovations that strike Sir Richards mind. Virgin Galactic, Virgins space travel wing that was pulled out the ground in 2010 when a extended compound test rocket had taken flight.. The space line has tied up with Orbital Sciences and Sierra Nevada to compete for NASA funding for developing private-sector space taxis. It has received deposits from 400 customers (more than $54 million) to soar into space on a ship named Enterprise sometime in 2012. The company launched into another new sector in 2010 when it formed Virgin Healthcare, fueled by the purchase of a 75% interest in Assura Medicals. The British health care supplier manages about 30 general practitioner clinics in the UK. The move followed Virgins introduction of Virgin Digital Help (Murphy, 2008). Virgins aviation industry of any nation acts as a contributor of its economic growth. Helps in globalization and creating an international image. It is the best in terms of fastest, safest and convenient mode of travel. References: BBC. (No Date). The economic value Of the BBC. Retrieved from: http://downloads.bbc.co.uk/aboutthebbc/insidethebbc/howwework/reports/pdf/bbc_economic_impact_2013.pdf. BBC. (No Date). History of the BBC. Retrieved from http://www.bbc.co.uk/historyofthebbc/. Teletronic. (No Date). THE HISTORY OF THE BBC: THE FIRST TV EA. Retrieved from http://www.teletronic.co.uk/tvera.htm B, N. (2013). Virgin America triumphant. Retrieved From http://www.economist.com/blogs/gulliver/2013/06/best-airlines?zid=303&ah=27090cf03414b8c5065d64ed0dad813d. Emsting, A. (2008). Richard Branson and the Virgin Group’s biofuel investment: From palm oil and soya biodiesel in trains to synthetic biology for aviation fuels. Retrieved from http://www.biofuelwatch.org.uk/files/virgin_factsheet.pdf. Murphy. A., 12 (2008) Global Strategy of Virgin Group. Retrieved from http://www.richardmurphy.us/Global%20Strategy%20of%20Virgin%20Group.pdf. Cameron, A. (2003). 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