Contemporary Developments in Business and Management

Contemporary Developments in
Business and management
Assessment

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
External Factors that affect companies & its importance.......................................................3
Porter's five forces model.......................................................................................................6
TASK 2............................................................................................................................................7
2.1 Relevance of CRM on SKY LIMITED............................................................................7
2.2 Evaluation of effectiveness of organization's response....................................................8
2.3 Areas of improvement in response to SKY LIMITED...................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13
Appendix 1: Company Profile.......................................................................................................15

INTRODUCTION
Businesses are termed as the organisations which executes several operational activities
and also makes required amount of production so that desired range of goods and services can be
manufactured according to the core requirement of customers. Business managers can effectively
gain knowledge by incorporating contemporary practices within the businesses (Alvarez, 2016).
This also supports them in expanding business operations and gaining competitive edge.
The present report is based on Sky Limited, a UK based British Media and
Telecommunication Company. The respective business entity was incorporated in the year 1990
and headquartered in London. SKY is identified as the largest TV broadcaster and Media
Company of Europe in terms of revenue. Sky Limited is having its operations in Ireland, Austria,
Italy, United Kingdom, Germany, Switzerland and Spain. This report will provide description of
external factors belonging business environment which influences organisational effectiveness as
well as its performance. Moreover, customer relationship management will going to be explained
in detailed manner along with its influence over the policies of entity. In last, some suggestions
will be provided related to methods with which performance of the business can be improved in
rightful manner.
TASK 1
External Factors that affect companies & its importance
External environment factor is determined as those components which are directly not
related to the company but still has influence over its functioning and operational activities. In
order to develop understanding over the external environmental factor manager of Sky Limited
have effectively conducted PESTLE analysis for developing their knowledge over the specific
factors that could affects business activity of respective entity and influences its sales as well as
profitability (Anastase and Grigoruț, 2016). All elements of this factors described as below in
detailed manner. PESTLE analysis is determined as the effective framework used to analyse
external environmental factors which place influence over the company's performance (Perera,
2017).
PESTLE ANALYSIS
Political: Under this element, it encompasses government rules, regulation, policies,
procedures that directly impact over organisation decision making process. Recently, UK

government make an initiative in implementing Brexit which negatively influenced SKY
Limited potentiality in attaining increased level of productivity. This is because Brexit requires
modifying the current rules or policies of an organisation which hinder company to attain
sustainable growth among rivalries. However, in order to overcome negative effect, SKY
Limited make an attempt to bring all sort of necessary changes within its business units which
empower them to enlarge its market share and also benefits them by enhancing company's
proficiency ratio in an improved way (Axelsson, 2018)
Economic: In this factor, it is concern with economic growth, interest rate, GDP ratio,
inflation, deflation and many more which effect establishment profit margin ratio. In regard of
SKY Limited, due to rising cost of acquiring content in terms of obtaining the rights of
conducting events like premier league as well as high level of competition, challenged SKY
company in maintaining its brand value inside industry for longer time duration. Henceforth, for
tackling over such challenge, SKY Limited take an initiative in reducing the price of its services
or network which aid them to expand its investment amount for organising premier league in an
improved mode. Moreover, it also help them to retain its existing customers and also enable
them to capture the attention of new consumers towards the brand (Hamilton and Webster,
2018).
Social: This component includes population income, customer taste or preference,
demographic factors and so on which influence company's sales performance. In context of SKY
Limited, it face huge demand from UK population in aspect of viewing channels through
multiple platforms that impose high level of threat over organisation in improving its sales
volume in a stipulated time limit. Hence, for coping with such threat, SKY Limited take an effort
introduce the new 5G network speed into its services that empower all its targeted audience to
acquire the facility of viewing various challenges through different platforms without nay
hindrances or difficulties. Furthermore, it also aid them to enhance its sales growth and also help
them to gain positive response from its customer in an impressive manner. For example, if SKY
Limited put their best concentration over social factor it empower them to identify customer taste
or preference and also to analyse the market competition in a better way. With the practice of
such activity, company can easily enlarge its market share and can gain competitive advantage
among rivalries in an innovative style.