Sky Limited: External Factors, CRM, and Business Performance Report

This report provides an in-depth analysis of Sky Limited, a UK-based media and telecommunications company, focusing on contemporary developments in business and management. The report begins with an introduction to Sky Limited, its operations, and its position in the European market. It then delves into the external factors affecting the company, utilizing PESTLE analysis to examine the political, economic, social, technological, legal, and environmental influences. The report also applies Porter's five forces model to assess the competitive landscape of the telecommunications industry. Furthermore, the report explores the relevance of Customer Relationship Management (CRM) to Sky Limited, evaluating its effectiveness and suggesting areas for improvement. The report concludes with a summary of findings and recommendations for enhancing Sky Limited's business performance.

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.

Technological: Under this determinant, it is link with innovation, advancement,
automation and many more for gaining competitive advantage within prescribed time duration.
However, in case of SKY Limited, they face huge challenges from its competitors like BBC,
Virgin and etc. in regard of acquiring innovative technologies or techniques for exploring the
market share in an amended manner (Barrett, 2016) . Due to which, it reduces its capability in
managing its productivity ratio among competitors in an impressive manner. Henceforth, SKY
Limited make an effort to adopt various novel technologies like 3-D, HD features that motive its
consumers to enjoy the different programs in an effective way and also help them to generate
positive response towards the brand. With the help of such initiation, SKY Limited is able to
place its brand in an aggressive or competent position and also lead them to enrich its customer
base in an improved manner in a desired time period without nay obstacles.
Legal: It encompasses all the relevant laws as well as legislations pertaining to a nation
that need to be followed by businesses operating within its confines. It is crucial for corporations
in the modern era to operate in a legal and ethical manner in order to ensure its sustainability for
a long period of time in future (Boyer, 2014). In this regard, SKY Limited is acknowledged to be
operating in telecommunications sector which is confined by a number of laws. The main law is
recognized to be The UK Communications Act, 2003 which consists of a number of provisions
that need to be strictly followed by organizations functioning in concerned sector. Other
important laws are Wireless Telegraphy Act 2006, Electronic Communications and Wireless
Telegraphy Regulations 2011 and many more. In an instance whereby the respective company
fails to follow such legislations, it would have to face imposition of fines and penalties.
Environmental: This aspect of macro environmental analysis consists of green policies,
sustainable development, recycling, waste management, attitude towards use of renewable
resources of energy and many more. In this regard, with the rapid increase in globalization,
customers across the globe expect companies to act in a sustainable and socially responsible
manner. Such base of customers requires the brand to be more conscious and attentive towards
the need to protect as well as preserve environment (Brewster, 2019). In this relation, SKY
Limited is a well renowned organization which takes into account all the environmental laws and
implements sustainable policies in its premises in order to increase its market share with the
evolution of time.

Porter's five forces model
Porter's five force model was given by Michael Porter. The proposed framework is
helpful for the company in analysing whole industry in rightful manner. This also aware
company about certain area of improvement that can provide higher profitability to the company
in effective manner. With reference to telecommunication industry, all five influential forces of
porter's model are explained as below in appropriate manner:
Threat of new entrants (Low): Influence of this force is quite low for Sky Limited. This is
because telecommunication industry is having lots of entry barrier like legislations for initiating
work, slow pace of regulations etc. which directly makes it difficult for new entrants to enter into
the same industry (Brocke and Rosemann, 2014). Along with this, it can be said that Sky Limited
is having strong position as well as customer base in Europe, thus it would be difficult for new
entrant to compete the existing position of Sky Limited within the same industry.
Competitive Rivalry (High): Competition within telecommunication industry is very
dense. The Sky Limited has several competitors within like BT group, Virgin media, Talk Talk
group, Plusnet, Singtel, VIACOM, Orange etc. This clear depicts that customers might approach
to another telecom service if they will not feel satisfied with the services offered by SKY
Limited. This shows that influence of this force is high due to high competitiveness within the
industry. Thus if the company do not provide products and services to customers according to
their demand then their customers might move to another company belonging to the same
industry.
Threat of Substitute (high): It has been analysed that competitiveness within the industry
is very high. Therefore, it can be said that market leader of the same industry focuses on bringing
something new for customers that can be seen as the substitute product. This depicts that
influence of this force is high for Sky Limited.
Bargaining power of suppliers (Low): Number of supplier in telecommunication
communication industry is very high. This simply means that the company can approach any
supplier for bringing raw material according to their requirement and also gets agrees on their
provided quotation rate (Cui and Li, 2017). This means that bargaining power of supplier is very
low and manager of Sky Limited has higher power so that they can approach any of the supplier
on the basis of their core requirements.

Bargaining power of Buyers (High): Influence of this force is higher for Sky Limited.
This is because customers are the one who have major power of attaining deciding that whether
they want to buy the product or not. It can be said that, if these customer finds same products or
services offered by other service provider at similar prices with same quality then they will
definitely switch the company. This clear shows influence of buyers bargaining power is higher
for Sky Limited.
TASK 2
Customer relationship management is considered as the effective approach that is
adopted by business association for developing positive relationship with their potential
customers in appropriate manner. The respective approach is valuable for the company in
enhancing their sustainability at marketplace by engaging customers with them for longer period
of time. In order to develop strong relationship with the customers, the company often make use
of several communication medium like telephone, websites, live chat, social media, email etc. so
that they can easily interact with them at regular basis. This interaction also allows company in
developing their knowledge on the changing demand and expectation of potential customers
(Gamble, Peteraf and Thompson, 2014). This knowledge is further helpful for the company
while developing rightful strategies for attracting customers in rightful manner. With reference to
the telecommunication industry, it has been analysed that the companies belonging to this sector
mainly make use customer relationship management software through which they gather
information about the proposed customers. This attained information directly supports respective
company in improvising its existing products and services for enhancing satisfaction level of the
customers in effective way.
2.1 Relevance of CRM on SKY LIMITED
Customer relationship management is basically determined as the approach that has been
adopted by businesses for managing their relationship with its potential customers (Badwa and
et. al., 2017).
Customer Relationship Management is a crucial concept that is significant for companies
operating across the globe in order to ensure their long term sustainability at market place. In this
relation, it can be said that SKY Limited being a service sector organization needs to leverage
this concept in an effective manner so as to build a rapport within the audience. Looking upon

this, the management of this enterprise takes several initiatives or measures with a view to
engage customers in a meaningful conversation and build healthy relations with them. Thus,
business manager of SKY Limited prefers to adopt CRM software in order to develop its
relationship with the customers in effective manner and also influence them to remain loyal with
them for longer period of time. The respective company uses advance technological tools that
support them in communicating to the customers at regular basis in a rapid manner. Usage of
good level of technology allows company in providing high quality of services to customers that
directly results in the improvement of customers loyalty with the same company in appropriate
manner. Along with this, it can be further said that incorporation of CRM approach helps
company in improvement of its sales performance that ultimately results in the quick
enhancement of their profitability in rightful manner. It has been analyzed that top management
of the SKY Limited believes that usage of CRM is highly effective for them as it allows them to
engage the main stakeholder group with them in an effectual manner (Lawton, 2017).
In addition to the relevance of CRM as identified above, it can also be said that customer
relationship management also places major influence over the organizational policies as well as
decision making process. This can be said on the premise that SKY Limited ensures that its
corporate policies as well as decision making is devised while centering upon the customers.
This provides aid to them in satisfying the needs of customers in desired manner. The key
decisions of company as well as its primary business operations are designed in a way which can
cater to the needs and preferences of clientele. SKY Limited operates within telecommunications
sector which is a part of service industry, thus by emphasizing upon customer base as the central
element for its policies and decisions, the respective firm intend to inflate its market share in
rapid course of time.
2.2 Evaluation of effectiveness of organization's response
Sky Limited is determined as one of the largest companies in Europe belonging to
telecommunication industry. Even though the company is largest company but still it is offering
its services within Europe only. The respective manager of the company develops certain
strategies and taking numerous of initiatives for attaining their respectful goals and objectives
and also gains competitive edge in rightful manner. In order to remain competitive at
marketplace, the respective manager of Sky Limited emphasizes on developing their relationship
with the customers in effective manner. For this, they make use of customer relationship

management approach which supports them in positive manner in attaining their goals with
customers support and gain competitive edge towards the same (Lawton, 2017). The potential
and effectiveness of Customer Relationship Management on Sky Limited is described below:
Customer is considered as the person who buys services offered by the companies
(Wilson and et. al., 2016). Customers are considered as the integral part of the company who
plays an essential role in the growth of firm. It can be said that if an organisation has positive
support of customers then it is easier for them to attain success and at the same time if the
respective company is not having any support from customers’ side then it would not be easier
for them to remain competitive and gain competitive edge in quicker manner. It can be said that
usage of CRM directly helps company in developing their relationship with the customers. With
reference to Sky Limited, it can be said that manager of this company emphasises on increasing
customer loyalty towards the entity. For this, marketing team of the business focuses on
gathering detailed market data from the customers who includes information associated with the
respective needs and demand. By developing knowledge on these, it would be easier for the
manager of the company to modify their services as the per the requirement of the customers.
This also provides equivalent contribution in the sales performance of the company and boost up
their profitability ratio.
This basically has both the positive as well as negative side. The positive zone can be seen
with the help of example, for instance, if company takes regular based feedbacks from the
customers then them area able to remain in constant touch with the customers. This is also
supportive in developing their positive image among customers. On the other hand, the same
concept or approach also has its own negative side too (Leonidou and Hultman, 2019). The first
and foremost negative influence associated with CRM is its high cost while incorporating latest
technology that also results in the decline of revenue generation of the Sky Limited. Along with
this, it can be said that if the manager of Sky Limited are not able to fulfil promises made by
them then it could directly develop their negative image among customers which might also
result in the decline in sales performance as well as profitability of the company
2.3 Areas of improvement in response to SKY LIMITED
SKY Limited is identified as the Europe's largest telecommunication company that is
having its operation in many nations. The company is having strong customer base as its quality
of services is higher as compared to its competitors. This directly influences interest of

customers towards them as they are the only one in Europe which is providing higher quality of
broadcaster in the same continent. Even though the respective company has strong customers
base and its own area of specialization it can be said that management of the respective company
is still required to focus on several areas for making improvement in rightful manner (Pels,
Njegovan and Behrens, 2017). Some of the core areas of improved which must be considered by
manager of Sky Limited are explained below:
Strengthening customer service team: This is first area of improvement that is required
to be considered by manager of Sky Limited. According to this, the respective manager should
focus on providing equivalent support to customer by connecting with them regularly and in
prominent member. This can be effectively done by strengthening customers service team. It is
essential for manager of Sky Limited to emphasize on hiring best communicator in customer
service team who will be able to communicate and manage their relationship with the customers
effectively by communicating to them at regular basis. This communication will done by making
use of social media platform and taking feedback for their every customer.
Make use of social platform: This is termed as the another improvement area that must
be used by business manager of Sky Limited. In this, it suggested to manager of Sky Limited to
make use of social platform that is so that they can develop strong relationship with the
customers. It can be said that social platform allows business manager in enhancing
communication level with the customers. In this communication they gets opportunity to develop
their knowledge about the changing demand and requirement of customers. With this interaction
it is easier for the manager to take required measures for meeting up customers demand in
appropriate way. For instance: Customer relationship manager of SKY Limited can make their
page on social media platform like Facebook. The manager could further initiate campaign
associated with their products and services and can further ask its team members as well as
satisfied customers to share it on the same platform. This will work as the promotional method
for the company. As a result, it will place influence over sales performance of the company too
because social campaign have ultimately developed knowledge of more number of people about
the products and services.
Adopt latest technology: Technology has made things easier for the businesses in
executing their work in rightful manner. It can be said that business manager of the Sky Limited
is required to develop their understanding over latest tools and technologies that is required to

adopted by them for simplifying functioning of employees (Renwic, 2018). Incorporation of new
technology like new Software associated with CRM will also create requirement of training and
development sessions for employees which will effectively provide instruction to employees
about the usage of new technological tool which is helpful for them in executing their work in
rightful manner.
By incorporating all of these initiative within the company, it can be said that manager of
will be able to improvise their business function in rightful manner. Along with this, these
improved areas will allow business manager of the company in enhancing productivity as well.
Also, it would be easier for them to maintain strong relationship with the customers effectively
which will contribute in the enhancement of their sustainability. As a result, it can be said that
implication of suggestions within Sky Limited will support in quick attainment of their
respective goals and objectives within the provided time. Along with this, it can be said that
incorporation of the above stated suggestions will directly provides support to the Sky Limited in
executing their business operations simpler manner. This also enhances number of opportunities
for the same company within the industry that maximises their profitability. It also provides
support to the company in leading industry by remaining favourite among the customers.
CONCLUSION
From the above mentioned report, it is comprehended that over the period of time
business manager of the company requires to develop their skills and knowledge time to time in
order to perform their business activities in effective manner and attain their respective goals and
objective in quicker manner. Along with this, Usage of PESTLE analysis have provided support
in analysing external market factors that become threat for the company or provide them
opportunity to attain success in quicker manner. Also, usage of Porter's five force analysis have
provided support in analysing whole industry deeper manner so that required modification can be
made by business manager in timely manner. In order to enhance sustainability within the
industry, it is essential for business associations to develop strong relationship with the
customers. This could be done by them with the usage of technological based tools like
Websites, Facebook, LinkedIn etc. Positive influence of customers directly supports company in
managing their business activities and growing their performance effectively at marketplace in
rapid manner.

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Appendix 1: Company Profile
Company Trade name Sky
Industry Telecommunication and mass media
Overview of company The company basically deals in telecom industry. The main
products offered by this company are Direct-broadcast
satellite, pay television, broadcasting, broadband and
telephony services
Founded 1990
Founder Rupert Murdoch
Headquarter Isleworth, UK
Area Served Europe
Number of employees Approx 31500