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Problem: The managers were not completely clear about which is responsible for

which thereby creating a "fragmentation" in the company.

PESTAL

Political:

BBC forced Dyke to resign due to murder complications

Independent from government

Economical:

Beginning - income of L2 billion

Wanted to reduce overhead from 24% to 15%

Sociological:

Was seen more as an institution rather than a company

Culture of collaboration

Technological:

Would use external studios and equipment

Environmental:Iraq War

Legal:

Andrew Gilligans claim that the government had knowingly led the United Kingdom

into war on a false premise

Stakeholder Mapping:

Minimum effort: Employees

Keep informed: Public

Keep satisfied: Government

Key Stakeholders: Board of Directors, Director General, Chief Executive, Editor in

Chief, Regulator of market

SWOT

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Strengths: Reached almost 300 million people world wide

Reputation for diversity

Weaknesses: Dyke did not fit the establishment figure

Opportunities: Sell programs internally and externally

Threats: Fragmentation, Duplication at divisional level

TOWS:

SO- They can sell more products than before externally because of the amount ofpeople they were able to reach and their reputation for diversity.

ST- Maintiaining their reputation for diversity, they can try not to duplicate as much

the other departments.

WO- Despite that Dyke was not the the establishment figure, he was able to sell

many programs

WT- By trying to obtain their standard as a figure, Dyke will be able to recognize a

little more the fragmentation in the process thereby being able to prevent it.

Porters Diamond

Firm strategy, structure and rivalry:

The first steps that Greg Dyke did when first appointed was review the structure and

management

Created an internal market

Designed strict in order bring some 'market discipline' to the organization and to

ensure that each of these three major areas was delivering value for money when

tested against its competitors.

Demand conditions:

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Its broadcasts reached over 50 million people domestically each week and almost

300 million worldwide.

Related and supporting industries

They would sell their programs to other broadcasters.

BBC would rent equipment from others

BBC would rent out their equipment to other studios

Factor conditions

Global reputation for diversityStructural arrangement to bring more market discipline

Value Chain:

Firm infrastructure: The first steps that Greg Dyke did when first appointed was

review the structure and management

Created an internal market

Human resource management: One layer of senior management was cut, so that 17

directors would have to report to the Director-General

Technology development: Improving their skills so that they can be more effective in

the digital world.

Procurement: By creating an internal market and separating the management

responsibilities into divisions

Service: Television Broadcasting

Sources of cost efficiency

Economies of scale: Its broadcasts reached over 50 million people domestically

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each week and almost 300 million worldwide.

Supply costs: Aimed reduction in costs from 24% to 15%

Experience: Since being founded in 1922 to 2000. They had 78 years of

experience.

Product/process design: Greg Dyke proposed management delayering in order to

restructure the organization, cutting overhead costs and improving efficiency.

Multinational structure 

International division: resources(outside broadcast, studio,equipmentetc) programme production and programme broadcastingLocal subsidiaries: broadcast radio and television services Transnational: global reputation for depth and quality dramadocumentaries, news all over the worldGlobal product: the sale of programme rights and branded productsworldwide