Virgin and BBC Analysis - Literature review Example

Virgin and BBC Analysis Virgin and BBC Analysis A) Virgin Group Introduction Virgin Group Limited is a British multinational brand venture capital conglomerate that was founded by Richard Branson. It has ventured its core businesses in travelling, lifestyle and entertainment. It also manages ventures I n transport, financial services, food and drink, healthcare and telecommunication. The Virgin Groups ventures consist of more than four hundred companies worldwide. Companies House dates the founding of the company back to 1970s. It became incorporated in 1989 and is a holding company (Enz, 2010). History of organization Inception of The Virgin Group has its foundation in high school adventures of the entrepreneur. In 1966 while Stowe was still a high school student and 16 years, he came up with the first successful business that would shape Virgin; a magazine called Student. 1970 marked the debut of Virgin brand as it made its initial business operations as a retailer selling records by post and undercutting high-street retailers. The name of the company came from a colleague’s comment that all the people who ran that business at the initial stages were novices. In 1971, Branson opened his first record shop along London’s Oxford Street. He escapes with a fine after being convicted of selling records for which he had failed to pay purchase tax. Virgin record label was born in 1973. This was sold almost two decades later to EMI with signed acts including Smashing Pumpkins, Sex Pistols and Janet Jackson. In 1984, the entrepreneur established one of the most recognized ad successful ventures; the Virgin Atlantic Airline. The Virgin Group was placed in the Stock Exchange Market in 1986, but taken private by Branson in 1988. In 1987, the company launched a brand of condoms that targeted the young with the brand name Mates Condoms. The business was sold one year later (Waters, 2006). Industrial classifications  Virgin Group is a holding company. It owns other firms’ outstanding stock. The company does not produce any goods or services itself. Its purpose is to own the shares of other companies. Virgin Group’s position as a holding company allows the reduction of risks for the owners and allows the ownership and control of different companies. The company’s position as a holding company saved the taxpayer a loss of 400 million pounds in 2011 (Sempels et. al., 2013). This was when the company, through Virgin Money agreed to buy Northern Rock , the bank that was rescued by the taxpayer at the beginning of credit crunch, for 747 million pounds. Pushing for a quick deal to have the bank sold to the Virgin Group saved the taxpayer at least 400 million pounds in losses. Additionally, Virgin Group is a conglomerate. It has over 400 corporations and business entities engaged in entirely different business types falling under the same corporate group. It is the parent company with the other Virgin companies forming the subsidiary companies. Business ownership and type The business is privately owned. Branson retains the complete ownership of the company. Despite placing the company in the stock exchange market in 1986, Virgin Group remains completely under the ownership of the founder (Wit & Meyer, 2010). Size and scale Virgin Group is the mother company of 400 other subsidiary companies. By any scale, the company is large. It employs over 50, 000 people directly in addition to indirect employments of people dealing in retailing its services and products. As at 2003, the company had a net worth of 3 billion pounds, an equivalent of 5 billion US dollars. Its size is no doubt large considering the variety of businesses it deals in. 2012 financial overview of the company reveals that it makes an annual revenue of $24 million. Virgin Group operates in over 50 countries (Sempels et. al., 2013). It is a leading investment group and only a few companies can match the recognition of brand and respect it has earned. The business sectors it engages in range from travel, mobile telephony, leisure, holidays, health and wellness and financial services. Aims and purpose Virgin Group’s vision is to be the shopper victor. It aims at delivering brand values in all the businesses it is involved. It has the goal of providing value for currency, offering dazzling customer services, providing superior quality of products and services, pioneering and remaining competitively testing and fun (Murray et. al., 2006). It also aims at providing quality services by motivating employees, assisting and examining consumer feedback for unending enhancement of customer experiences through improvement of its services and products. The company aims at creating products and services that make the lives of its consumers more enjoyable. The company plans a global presence in mobile communications, music, travelling and entertainment retailing. Virgin Group hopes to be in the top 20 global companies by taking advantage of the exciting market that it serves. Functional areas The first and most distinctive and obvious resources of the Virgin Group are the Virgin people and Richard Branson; the entities that make up Virgin Group. Branson’s entrepreneurial flair and charismatic style is an asset that many competing organizations have not been able to replicate. It is the personality of the entrepreneur that is synonymous with the Virgin Brand and makes the company unique. Similarly, Virgin Group attracts Virgin people of particular type. In combination with Branson, the Virgin people form a sound human capital that is distinctive to Virgin Group and hard for other companies to copy. Also related to the people who make up the firm is the Virgin Group culture. The culture at Virgin Group has been built over the years and distinguishes the working environment within the company’s establishments and other firms. Virgin Group culture does not look for clones. It requires that Virgin people live like a family and have the Virgin flair. The attributes present in Virgin people meld together to create a distinctive company culture that Virgin Group alone can claim to have (Sempels et. al., 2013). Conclusion Virgin Group case provides reasonable and profound evidence that establishing a successful business venture requires more than just capital. Virgin Group came up from a mind that was willing to adventure. Despite failures a few times, Branson has never given up expanding his enterprise. It takes risk-takers to succeed. In addition, building the right culture is crucial for success of a company. The culture at Virgin Group has been built over the years and distinguishes the working environment within the company’s establishments and other firms. Virgin Group hopes to be in the top 20 global companies by taking advantage of the exciting market that it serves. With the current trend, it may soon reach its target. B) British Broadcasting Company Introduction BBC remains a giant and a well- known broadcasting cooperation across the globe, it possesses large subsidiaries such BBC Austria and BBC worldwide. BBC distributes its contents via, internet, radio and television. The company is a public service organization and majorly sources its funds from license fee. BBC also has a charter that spells out its functions to the public sector. The major source of revenue for the company comes from license fee. As well as funds from the public, BBC also sells and transfers ownership of rights of its contents globally. The company in the last few years has also engaged in selling television formats shows such as, “strictly come dancing to America,” which was done recently and present in the world entertainment industry. History of the organization British Broadcasting Company started its life in broadcasting industry in 1992, this was as a result of the UK government licensing six major radio dealers in the country this formed a new outfit in the industry. BBC had a staff of four members and was financed by post office at that particular time. The first broadcast of the organization came from London on the 14th of November 1992. John Reith became the managing director a month later. BBC at this time only dealt with radio broadcasts, this was ideal for its success because during 1930s people gathered to listen for national and sport events using radios (Alcock 2013 pg 567). The company also became a major factor in commissioning of drama and music events. The TV aspect of BBC took effect on 2nd November 1936 but, later suspended following outbreak of war in 1939. War brought major challenges to the firm, including bombing of their broadcasting house. Television business made steady improvements, from its headquarters in Alexandra despite competition by other media houses such as ITV. The company managed the competition and brought in new channels in the market. World service radio was integrated together with BBC world television and satellite channels boasting the operation of BBC in general. During 1990s the company invested in internet services, such as online broadcast and use of digital transmission. The products offered by the company have diversified over time and this includes children shows, cultural networks as well as a collection of radio services. Industrial classification BBC cooperation is fully owned by commercial subsidiary of British Broadcasting Corporation, this was formulated by restructuring of its predecessor BBC enterprise. It’s a multi media broadcaster, offering a wide range of languages, local and regional services on radio, online, TV and via online portable devices (Artz & Kamalipour 2010 pg 567). BBC makes use of several platforms to reach its audience of 166 million people globally. These platforms include shortwave, FM, AM, cable channels and satellites technology. The news sites include audio and visual contents these offers an opportunity to enter global debate. The company has established a multilingual radio platform in conjunction with partner FM stations around the globe. In addition to these products it has a network of partnership supplying content to mobile phones and wireless devices including TV channels. BBC is guaranteed funds from license fee and global service are supplemented income from commercial activities carried out. Business Ownership and type BBC was formed on a constitutional basis following the Royal charter, these makes it a state owned and controlled corporation. The charter spells out public purposes of the company and also outlines duties of trust and board of directors. The charter is renewable and subject to changes, agreement with secretary of state complements the charter. This charter contains details on topics to be undertaken by the broadcaster, funding and regulatory obligations. The charter is an important legal document for the business because it separates it from the government. Under this agreement the company is not allowed to advertise sponsored programs on their network. It is expected not to involve in broadcasting any opinion of its own in controversial issues, current affairs and matters of public policy they should be impartial in all aspects. Size and scale BBC is head quartered in London and has other several major production centers such as, Birmingham and Cardiff and other small centers all over United Kingdom. The company is the globe oldest media house it has a staff of about 23,000 people which makes it largest in the world. The firm is a semi autonomous public service company. Outside the UK the company is providing direct broadcasting services and retransmission contracts offered to regional radio stations. BBC is a fully integrated global company doing business in over 200 countries worldwide (Artz & Kamalipour 2010 pg 67). The firm brings market comprehension and brand development in the broadcasting industry. BBC upfront and attract funding in all international co-production partners. It monetize programs and design them in formats that upholds right ownership and sell them in various countries, BBC also takes part in building of international multimedia brands. BBC is able to compete in the global market and provides access to best talents, contents and ensure healthy competition in the world market. Aim and purpose The main aims and purpose of BBC are mainly public oriented, to create a sustainable citizenship and civil society all over the world, promoting education, innovation and cultural development and continuity (Great & Great 2011 pg 234). This is achieved through films, reflecting UK culture and attitudes BBC brings the globe in UK and UK to the globe. It also fosters digital brain all over the world. The broadcaster also ensures that certain characteristics are met that will separate its content from other media houses, these includes innovation, high quality, originality and witty stories all BBC products should bare at least one of these characteristics. Conclusion BBC is a giant in the media industry and will remain in business of public service television broadcast in UK. However, it has potential competitors such ITV, S4C and Channel 4 among other; they all make important contribution in the generation of high quality products worldwide. BBC has also contributed significantly in the programming industry across a wide range of genres. These include art, drama, current affairs, news and regional programming. The UK believes that by sustaining popularity of public service broadcast will complement and compete ensuring quality and diversity (Great & Great 2011 pg 234). BBC has reduced its major overhead operation cost however, there are areas where it could further reduction of expenditures. BBC also does not have a coordinated approach to challenge its operation expenditure, meaning the organization still has potential to further its business. References Alcock, D. (2013). Illustrating BBC-Basic. Cambridge: Cambridge University Press. Artz, L., & Kamalipour, Y. R. (2010). The media globe: Trends in international mass media. Lanham, Md: Rowman & Littlefield. Enz, C. A. (2010). Hospitality strategic management: Concepts and cases. Hoboken, N.J: John Wiley & Sons. Great Britain., & Great Britain. (2011). FCO performance and finances: Third report of session 2010-11. London: Stationery Office. Great Britain., & Great Britain. (2011). The BBCs management of its digital media initiative: Twenty-ninth report of session 2010-11 : report, together with formal minutes, oral and written evidence. London: Stationery Office. Mudhai, O. F., Tettey, W., Banda, F., & Palgrave Connect (Online service). (2009). African media and the digital public sphere. New York, NY: Palgrave Macmillan. Murray, P., Murray, P., Poole, D., & Jones, G. (2006). Contemporary issues in management and organisational behaviour. South Melbourne, Vic: Thomson Learning Sempels, C., Hoffmann, J., & Palgrave Connect (Online service). (2013). Sustainable innovation strategy: Creating value in a world of finite resources. Waters, C. D. J. (2006). Operations strategy. London: Thomson Learning. Wit, B. ., & Meyer, R. (2010). Strategy: Process, content, context ; an international perspective. Andover, Hampshire: Cengage Learning. Read More