Introduction
According to McClean (2012), Special Broadcasting Service provides both the radio and television broadcasting services. The main purpose of such service is to make known the cultural diversity that exists in Australia. The programs provided by the company are tailored so as to inform, educate and entertain. The success and the growth prospects of the company are dependent on a number of factors.
The first relates to the regulatory environment, which influences the manner in which the companies operate in the country. This could have a significant bearing on the profitability of the said organization. The other aspect that influences the development of Special Broadcasting Station is the business environment.
Business environment encompasses both the internal and external environment of business. The external environment is comprised of elements such as the political issues, legal issues, social issues, economic issues and technological issues.
On the other hand, the internal environment is comprised of those factors that can be controlled by the business. It is the external environment for which the business must be properly aligned to ensure that it does not fall by the wayside.
Therefore, this paper will deal with the manner in which the regulatory framework and the business environment influence the development of Special Broadcasting Service.
Business and regulatory environments in Australia
Regulatory environment in Australia
Australia is known to be one of the countries with the most efficient and business-friendly regulations. This is intended to spur the level of investments in the country, whose overriding goal is to enhance economic growth in the country. In addition, it is adduced that Australia has very few restrictions when it comes to the product market.
At the same time, the government has very few public investments so as to allow the private investors to enjoy a liberalized environment. This has a positive impact on the economic behavior since the country is not heavily affected by overly restrictive business regulations (‘Business Environment’ 2012).
In addition, the few business restrictions have the effect of expediting the process that needs to be undertaken to start a business in Australia. Australia business regulations are known for being transparent which has the effect of creating an environment that is predictable and conducive for business.
Some of the other areas that are liberalized include foreign exchange controls, capital flows, profit remittances, the government is also said to favor transparent policies that ensure that the business owners are always fully informed about the regulations.
Since regulations are not very stringent, the broadcasting company will be able to increase the number of customers with ease. This is consistent with the business objective of enhancing their market share and consequently their profitability.
In addition, having transparent policies regarding the regulatory framework will ensure that the business owner will operate in a predictable environment which removes the uncertainty aspect that may make the business owners hesitant when it comes to investments.
Business environment in Australia
Given that the Special Broadcasting Service is located in the state of New South Wales, it is important to understand the business environment that is prevalent in that area.
Some of the reasons that make this state be an ideal location of the business include an economy that is both diverse and stable, the regulatory environment that is business friendly, a large pool of skilled personnel, and infrastructure that is supportive of investments (Australia 2012).
It must also be pointed out that Australia is one of the most expensive counties in terms of broadband connection. Towards this end, the government should put in place the necessary measures to bring down this cost, with a view to spurring investment in the media industry.
Economy
‘Australia Autos Report’ (2012) adduces that Australia have recorded economic growth for the last 19 years. The state of New South Wales has consistently been ahead of the other states in terms of the economic output. This points out to the fact that the economy is stable, and it is supportive of investments.
It has also been postulated that the state has a very diverse economy that consists of all the major industries. Additionally, it has been adduced that about 80% of the total income for this state is derived from the service industry. This implies that the media industry is well developed and contributes substantially to the economy of this state.
Australia is said to have a very strong regulatory framework to govern the financial services industry. This enabled it to avoid the negative effects that were occasioned by the most recent global economic recession. This has very positive effect on the service industry since the companies are able to access either short term or long term credit to enable them to go ahead with their expansion plans.
At the same time, the Intellectual Property Rights in Australia are among the best in the world. This tends to favor the service industry because they have most of their assets in the form of Intellectual Properties. Starting up a business in Australia is an easy process. For private limited companies, the process should not take more than 2 days from the time it is initiated.
A robust economy will invariably portend good prospects for Special Broadcasting Service. As a result, the company becomes more competitive in the market than most of its major competitors.
Highly skilled labor force
One of the greatest attractions of investors to this state is that fact that it is very populous than any other state in Australia (‘Chapter 4: Business Environment’ 2012). Another very important feature of this state is that its population is also very highly educated.
This provides a pool of qualified personnel from which the company can recruit its staff, who are going to be instrumental in the attainment of the goals and objectives of the organization. It is postulated that bout 60% of the population are university graduates. In addition, the state hosts a multicultural population, with most of the citizens being able to communicate in other languages in addition to English.
A highly skilled labor force is very desirable for any organization that needs to develop in the long run. Given the kind of the labor force that is prevalent in Australia, the company has a wide pool from which it can draw its workforce. A skilled workforce is such a valuable asset for any organization, as it enables it to achieve its business objectives.
Infrastructure
According to Keller (2013), New South Wales is home to the busiest airport in the whole of Australia. Another very special feature of this state is that it has a very extensive network of electricity. This implies hat the energy needs of the companies are well taken care of in this state.
That notwithstanding, the electricity supply has been reliable most of the times. For the investors that want to set base in Australia, it is claimed the state has cheaper commercial office space as compared to other locations.
Infrastructure is a very key component that influences the development prospects of Special Broadcasting Service. Without the necessary infrastructure, the company cannot realize its objectives, and neither can it develop.
Challenges faced by the media industry in Australia
According to Ross (2012), there has been an increase in the number of businesses offering services in the developed economies and Australia is not an exception.
However, the downside to this is that, the service industry in Australia has been buffeted by a lot of pressures emanating form the international and the domestic business environments. It must be appreciated that the media industry falls under the service industry.
One of the challenges that are faced by the firms operating in the service industry is the failure by the government to appreciate the significant contribution that the industry makes by way of balance of payments.
The apparent negligence by the government of this crucial sector of the economy has somewhat been exacerbated by the fact that the other industries are performing well, which serves to mask the deplorable state that the service industry is in.
This implies that the service industry is lacking the key infrastructure that may be required to propel it forward. The responsibility for the development of this key infrastructure is dependent upon the joint efforts of the service industry as well as the government.
It must be appreciated that there has been advancement in technology, which if properly harnessed can lead to better prospects of the service industry. There are two key drivers that can be used to spur development in the service industry namely- technology and new business processes.
Development of the Special Broadcasting Service
Looking at the business environment and regulatory framework in Australia, it is apparent that Special Broadcasting Service is not unduly restricted (Khan 2010). This would have the effect of increasing the opportunities for growth and development.
Inasmuch as there are challenges which can work against their favor, they can be surmounted by putting in place the necessary business processes and making use of technology. This could make Special Broadcasting Services to be a company of choice for the fast growing clientele.
The possible impact of transnational corporations and digital technologies
Digital technologies
According to Trending Topics (2012), the digital technology has impacted heavily on the media industry. It has resulted to new ways of doing things, and it has rendered some other business processes to be obsolete. Of utmost concern is the fact that the viewers have the ability to determine what to view and at what time.
This is in sharp contrast to the traditional setup whereby the broadcasting company had the final say on the content as well as the timing of their programs. The digital technologies coupled with diminishing economic prospects have had the effect of destabilizing the media industry.
Those companies that will adopt the digital technologies in the provision of broadcasting services will have an upper hand over those that do not take advantage of it. However, there are some who will incorporate the digital technology with the traditional approaches of broadcasting services. At the same time, there are those that will carry out complete overhaul of the manner in which they deliver their services to their audience.
The digital technologies have increased the content that is available in the internet. Looking at Australia, it is estimated that about 70% of the entire population are in a position to access internet services. Additionally, it is adduced that about 80% of those who are aged over 14 years have a constant access to the internet. Additionally, about 20% are able to access the internet using their mobile phones.
Consequently, the media industry should strive to make use of the internet to transmit programs, improve the quality of the services, and also encourage the audience to be actively involved in ensuring that they get quality content. Additionally, this technology can be used to enhance the quality of the images relayed by the television broadcasters.
Some of the strategies that can be adopted to counteract the negative effect of digital technologies include: having a very wide presence on the web, and having a very vigorous advertising campaign on the internet. The broadcasting companies should also levy a fee on the content that is found on the internet.
There are two ways in which the digital technology can be defined. One relates to the manner in which the broadcasting stations transmit their content. On the other hand, digital technology can also relate to the new version of TV formats that are currently in the market. It is postulated that these different aspects of digitalization should be understood by all the stakeholders in the media industry.
This will enable the government to make the right policies that are in conformity with the new trends in the media industries, which have been spawned by the digital technologies. Without the right policies, the media industries will not be able to adapt appropriately to the changes that are being brought about by the digital technologies.
However, the government in Australia has made some strides in the regulation of the digital content that is being relayed by broadcasting stations such as Special Broadcasting Service.
Transnational corporations
According to Li & Foster (2012), transnational corporations are those companies that operate in more than one country. In the media industry this relates to those broadcasting stations that are in operation in more than one country.
This could have a substantial effect on the operations of the industry in that the smaller companies, which have not ventured in other markets, might not be appropriately positioned to compete effectively. It has also been postulated that transnational companies have a higher chance of becoming more competitive due to their financial strength.
It has also been said that for those media companies that want to compete effectively, they can consider diversifying their operations in other regions. Another impact of the transnational companies on the media industry is the emergence of media companies that have increasingly gained strength, which has enabled them to exert their influence in the rest of the world as compared to the localized media houses.
It can be said that the multinational media houses dominated the media industry. This is because they have vast resources that can be used to take advantage of the business opportunities in the industry.
Conclusion
It can be seen that both digital technology and multinational corporations have far reaching consequences in the media industries. For companies like Special Broadcasting Services whose operations are localized, they might find it difficult to compete effectively in the prevailing business environment. This could partly be due to the fact that they might not have the necessary financial ‘muscles’ to compete effectively.
At the same time, the business environment and the regulatory framework have a tremendous influence in the manner in which the media house carries out their operations. Regulatory framework dictates the activities that can be undertaken and those that cannot be undertaken by the concerned entity.
In addition, the regulatory framework outlines the process that must be undertaken by the investor that may wish to invest in Australia. However, it must be acknowledged that Australia provides a business friendly regulatory framework. This can have the effect of spurring investments especially in the media industry.
This business-friendly regulatory environment will have the effect of enhancing the development of Special Broadcasting Services.
In those areas that the broadcasting station is challenged in terms of digital technology, it should look for ways of adapting to ensure that it takes advantage of the opportunities that are provided by the technology. The company should also consider diversifying its operations with a view to enhancing its financial position, which would have the effect of enhancing its competitive advantage.
Reference List
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