Bbc Internal Analysis Essay Example

Bbc Internal Analysis Essay Example Bbc Internal Analysis Essay Bbc Internal Analysis Essay Internal analysis SWOT analysis the strengths weakness, opportunities and weakness of a firm. The strength and weakness form the internal analysis whereas the opportunities and weakness form the external analysis. Strengths Strong financial Position BBC’s financial statements for the year 2009-2010 show an availability of ? 478 million and profits of ? 145 millions (BBC 2010). In relative terms BBC has been able to reduce its total costs by 40% from the levels of the year 2000 (BBC 2010). Within first two years of its efficiency plan a savings of ? 533 m has been achieved and is on target to achieve the target savings of almost ? 2billion (BBC 2010). Its total dividends for the year 2009/2010 were ? 74m an increase of ? 5m from the last year a significant achievement considering the global credit crunch in the modern day times (BBC 2010). http://downloads. bbc. co. uk/annualreport/pdf/bbc_ar_online_2009_10. pdf Strong Brand Name and reputation among customers BBC is the largest broadcaster in the world. ( edianewsline. com/news/151/ARTICLE/4930/2009-08-13. html). The strong presence of the brand in the minds of the people can be judged from the figures during major events when the public trusts the news given by BBC over its competitors ( medianewsline. com/news/151/ARTICLE/4930/2009-08-13. html) The financial statements show the BBC has net liabilities. In fact, the BBC has net assets of ? 1. 1billion, excluding the pension scheme deficit of ? 1. 6billion. The defici t represents a long- term liability(bbc 2010). Transmission services and many of other services are outsourced so that to bring some value for money. The net liabilities of ? 532million as at 31 March 2010 . BBC has been exempt from paying any corporation tax or any excess licence fee income as well as the grants which they get from any government departments. On the other hand BBC is answerable to pay corporation tax on capital gains plus it’s every external income. Capital asset expenditure is not entitled on capital allowance that may rise in small differences which lead towards overdue tax assets and liability. The BBC (UK Public Service Broadcasting, BBC World Service and BBC Monitoring) is not liable to corporation tax on any surplus licence fee income or grants received from Government departments. However, it is fully liable for corporation tax on capital gains and on all its other external income. Expenditure on capital assets is not eligible for capital allowances giving rise to temporary differences that would lead to deferred tax assets or liabilities.