Ethics and Governance: Sky Network Television Limited Capstone Project

This report provides an in-depth analysis of Sky Network Television Limited, focusing on its ethics and governance practices within the New Zealand market. The report examines the company's business model, which centers on providing digital satellite services and wholesale channels. It explores the composition and responsibilities of the board of directors, including their decision-making processes, policy changes, and strategies for maintaining stability amidst market competition. The report delves into financial aspects, such as cost control, director remuneration, and CEO compensation, highlighting key decisions and challenges faced by the company. Furthermore, it discusses the application of legitimacy theory and examines the company's responses to competitive pressures. The analysis covers board orientations, competitor analysis, and the balance between price and value. The report concludes with a summary of Sky's strategic approach to maintaining its market position and addressing challenges in the evolving media landscape.

ETHICS AMD
GOVERNANCE :
INDIVIDUAL CAPSTONE
PROJECT

Executive Summary
In this report it represents the Sky Network television limited company and their working in the
New Zealand. They bring new concept in the market regarding providing digital satellite picture,
video and quality to their customers to satisfy their needs and demand at higher scale. The main
concept regarding their invention is that they provide the services in context of whole sale
channels to the customers. They came up with the strong suit relating to the online products and
services, so that not only in present but in future perspective also they carry such business in the
strong manners. The speed of the internet sometimes becomes slower but the concept of satellite
was initiated to bring fast services at wholesale channel. The composition and chairman of the
company resulting in taking all the big decision and also has the rights to changes the polices of
the company. Board came across with various aspects regarding maintaining their stability in the
company in terms of cost control, face their competitors in the business. They maintain all the
ethics and norms imposed by government which is to be followed by the company.

INTRODUCTION
As a researcher the purpose of choosing this topic is that this is the concept which
bring more challenges to the business which are still liable on Internet services.
Online services regarding watching videos, playing games and DVD through
satellite television provides more clear qualities than other services. They also
enhance their business by providing wholesale channels which is affordable by
anyone. The main concept of choosing this topic is regarding that Sky television is
taking care of every person and there main concept is carry all their fans with them
to satisfy their needs and wants. Research is conducted to analyse various facts and
information regarding the selected topic and also their working to face other
competitors in the business with their quality online services. The theory which the
research had applied is regarding examining the difference between the value and
prices which is balanced by the company to increase their goodwill in the market.
Legitimacy theory is applied by the company in order to maintain and implement
their theories in relation to social and environmental factors. The essential
outcomes are resulting in investment in relation to satellite for 20 year to get the
adorable and accurate results in terms of pictures quality and viewing any live
shows and sports. The essential factors resulting in appreciated the working of their
staff and employees and contractors to achieve their targets and goal with their
stipulated time and efforts.

Table of Contents
INTRODUCTION...........................................................................................................................3
SUMMARY.....................................................................................................................................4
BOARD ORIENTATION...............................................................................................................6
INTERPRETATION........................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
The report is all about the Sky Network Television Limited which is specially designed
for the New Zealand payer for watching the sports, shows, live serials through satellite mode. It
is provided in the wholesale channel in the new Zealand which is sponsored by Vodafone. As per
the report it came up with the 7,50,321 subscribers by way through satellite and also provides the
fastest services and beat other service providers through such services (Pielichaty & et.al., 2016).
This concept was brought by Craig Heatley and Jerry Jarvis and founded in 1987 in Auckland,
New Zealand. This concept is specially designed for the people for their personal use and they
satisfy the customers needs at high level (Sky New Zealand, 2019). The main quotes which the
Sky limited company came up to attract the customers views is that Internet or no Internet, we
have New Zealand covered.
From the view point of internal team, they are happy with the more successful and
growth raising year as 2018 which bring more of changes in their technology which they are
implementing and expanding business among the customers (D'Angelo, 2018). This concept is
easily designed for the people which have no access to use the fast internet services. The sport
partner of the Sky limited take care of every individual they know that they didn't leave any of
their fans behind or neglect their views and thoughts of using such services.
It also examined by the Craig Heatley that due to having the more usage of internet why
to bring the concept of satellite transition (Crews & May, 2016). They bring this concept in the
market by viewing the high competition among the competitors which bring challenges in the
business. In 2015, many new sites joined the Sky companies and also promote the services
through the digital satellite method. The services which are joined as NEON regarding the video
on demand which identifies the need of the customer to subscribe the channels and also provide
more business to Sky limited. Same year new online service are also introduced which named as
Fan Pass which is related to sky sports services which is available in the Fan Pass websites or
any other Android phones and iOS device (Ross, 2017). This app is already famous in Facebook,
twitter and linked in and also they are available in the iTunes app stores. In 2017, it is also Sky
discontinued services Of Fatso which is specially designed to provide online DVD and video
games which is also one of the demanding aspects of the customers and same as with the Igloo
which provides prepay subscription to the user by imputing the set up box if they use their
services.

SUMMARY
Composition of Board: The composition of the board of director resulting in taking all the big
decision and also has the rights to changes the polices of the company. There decision are mainly
taken at the board meeting and they initiated such rules are bound on management of the
company to follow such rules and activity (Skinner, Smith & Swanson, 2018). Board had the
right to terminate any directors or appoint new directors to hold that place. In case of Sky, John
Fellet considered to be the independent director which takes the sitting fees in the company and
also have to attend the meeting and he is only the currently executive directors on the board.
It clearly reflects the chair persona and the directors of the Sky Limited company and also the
chairperson can be considered as the independent directors of the company.
Reports of the chairperson and CEO
Report of chairperson are enumerated under such planning regarding buildings a strong suite to
fulfil the needs of the customers and provide a base to those customers who are restricted to get
the fast internet services (Leeds, Von Allmen & Matheson, 2018).

Report of CEO MR. John Fellet said in the report regarding their plan and action which they
implemented in Sky regarding the technology advancement or upgrading faster network to the
customers. So that they get the bets quality services at reasonable price.
Remuneration of Directors: Directors remuneration means the fees or any other type of
consideration which can be in terms of money or property to the directors of the company by
committing their work done and such remuneration can be disclosed after getting the approval
from the shareholders and the board of directors (Lartey, 2015). The directors are to be paid
according to the norms and standard set under the companies Act either it is mentioned under the
articles of the association or by any resolution in the general meeting of the company.
Thus, through their report it is clearly examined that the fees which is paid to the director
of Sky Limited company are their current fees which is mentioned in the above table. Thus,
through this table it clearly indicated that directors are not eligible to get any equity benefits or
performance or nay retirement benefits (Kumar, 2016). There role in the organisation is only to
guide the management team to follow the strategy which they are implemented and the
management team are bound to provide results to the strategy which are implemented by the
directors.
Remuneration of Chief executive officer: They get remuneration according to their knowledge
and capabilities which they imposed at the time of committing the work and techniques in the
company. They are considered to be the highest paying person in the company.

From the above table it clearly indicated that, this remuneration structure is of Mr. Fellet
whose base salary is $1,413,057 in 2018 as compared to 2017. There bonus and other benefits
are also inclusive in their remuneration structure and there existence is determined by the board
regarding their performance in the company (Ramirez & Smith, 2016). They are eligible to
prepare the long term goal which is to be achieved by every employees in the company and they
can examine the leadership skill and offer various product and services, pricing strategy which is
to be implemented on every projects which is to be initiated by the Sky limited company.
BOARD ORIENTATION
According to the board committee it was decided by the chairman Mr. Peter Macourt of
the board to hold the meeting and all the important discussion of the company should be initiated
in the board meetings and then accordingly the board report are prepared. The powers are
assigned to the board and the management team to Handel the matters regarding to the
transformation of the business (Scott & Simpson, 2016). The major duties of the chairman is to
help the board meeting, setting up agenda regarding the discussion of that topic and managing
and initiating work to the leader to fulfil the vision and objectives of the company at higher scale.
They have to mange all the affairs of the company whether internally and externally.
Board came across with various aspects regarding to their financial reports such as First it
related to the management team to focus on the cost control services which resulting in defining
the stability of the Sky limited company. As approx $47 million cost is spend in the budgets of
the business which reflecting in overspending of the cost. Company run if they have surplus cash
to invest in other project and if the company spend whole of their cost in few projects, they
cannot spent or save for future projects (Harms, 2018). So the first matter which is raised in
board discussion is related to cost control in the affairs of the company. The second discussion in
the board meeting is related to changes in pricing and packing which results in decreasing the
number of customers and subscriber in which on 31st December 2017 it drops to 46,006 and in
2018 it drops to 11,049 which reflects the life of the sky limited.
The another discussion which the board came across is regarding to the competitor enter
into the market and they attract the customers through different services and scheme which our
company is lacking in providing that. Sky has 7,68,000 customers across the subscriber which
are using such OTT services. Due to high competitors in the market, it came across over 40% is

with the New Zealand homes. That means the renaming one are more concentrating on the
services through Internet system. The board also discuss the matters and transaction relating to
the debt entry. They decided that company should continue to given debt services, so that they
can maintain their balance sheet in more strengthen way and also face competitors with different
strategy and techniques (Evensky, Armstrong & Mittra, 2017). They also discuss in their board
meeting regarding the theory relating to the difference between the price and value. As it in
relation to the customers that they pay the price according to the services which the Sky is
providing and similarly in case of value its is the duty of the company to provide the accurate
services to their customers with better quality. Burt due to adapting this theory in prescribed
manner still the goodwill of the company is not raised as per their expectation and the board are
not happy with the results in case of selecting the sport contract. Board also settle their disclosure
in respect of issuing dividend to the shareholder of the company as 7.5 percent per share which
the shareholders are holding in the Sky limited company. Board are oriented to discuss the
crucial matters which reflecting their working in the company and the major matters is related to
the operational activities which they appointed certain department to minutely examine the facts
and figure and also analyse the factors which resulting in decreases in operational activity.
In the respect of above board discussion it results in finding the matters related to
managing all the activities of the company which is based on internal and external affairs and the
company successfully run if they implement various techniques and strategies to beat or face the
competitors in the market (McIntyre-Mills, 2015). By their discussion in the board meeting they
came across with various aspect regarding the operational activities of the Sky limited. Due to
changes in prices and packaging system of the Sky network services of boxes through which
they can serve better services, it results in reducing the demand of customers and their interests
in such services.
It is also discussed in the meeting that company will continue to protect their data and
information from hackers. As there is no result of insecurity or leakage of any channel which is
adapted by anyone else without their permission and authority. Sky company carry the strong
protection security regarding their business activity and right of holder and subscribers of the
channel. In this meeting they also discuss about the motivation and hard work of their
employees, staff members and contractors for upgrading their services on timely aspects and also
solve the matters of the customers and their complain within the time limits (Nambisan, 2015).

Thus, it results in bringing new innovations and creativity in the work which results in bringing
more innovative concepts and the live shows in different pictorial way. The chairman is also
thankful for the services which is provided by the John a chief executive person who serves in
the company for 27 years with the Sky company and retire with services after providing three
channels and 125 employees to their multi tasking work.
The chairman of the Sky company also announced their annual general meeting which is
to held on 18th October 2018 at Sofitel Hotel which is located in Auckland at 10 am onwards.
Board orientation and discussion always reflect the strategies and work scheduling of all the
management of the company and they also reflect the working style which they used to provide
more effective service to the customers (Spotts, 2015). The major discussion is related to
distinguished the products and services regarding the customers segments. As per the demand of
the products and services and then accordingly the services are given and accordingly prices are
implemented. If the customers are not in demanding of watching any channel than the prices are
reduces accordingly similarly as the matters related to watching the quality pictures of video than
thy provide the best quality services with low pricing which results in bringing the competitors in
the business and distracting the customers interests (Abratt, & Bendixen, 2018). The results also
came across of brining the new strategy with the new reality. According to the demand of the
customers are changing they are more concentrating on food series or dancing and other
activities which is adopted by the Sky limited company to bring such changes in their technology
and fulfil the needs and demand of the customers.
INTERPRETATION
Legitimacy theory refers to bringing new changes in the organisation by developing,
implementing and initiating new aspects which bring more profits and subscribers to the
company. The changes which is to be done by the board of directors or initiated to be done by
the directors at the board meetings are in respect of managing the cost control which saves the
internal affairs of the company and also provides risk free activities to the company to take
challenges in the business in near future (Polonsky & Waller, 2018). Managing the cost and
other transaction results in saving the economy in the country and also the shareholders are more
attracted if they see the financial statement of the company which reflects the cost expense as
low and their management criteria in good aspects.

The another legitimacy theory are resulting in proving the low pricing services with the
best quality. Customers mind and interest are easily distracted if they find such type of service
and which are under their budgets. In such case Sky company had to initiate the matter and need
to attract the customers towards their scheme which they are implementing with better quality
products. The next theory is to be implemented by the board of directors in relation to
operational activity as the services which are to be provided by the company are in relation to
customers services are to be innovated more so that no complain can be raised in the near future
regarding the product which the company is offering (Barnosky & et.al, 2016). Sky implemented
various changes which result in developing their stability as they debt their funds in the market
which represents their financial position of the company and also enhance their competitors in
the market to face the challenges in world of competition.
As to organise a company is easy but to manage their affairs both internally and
externally is difficult in that case they appreciate the work of their staff and employees and also
praise them through rewards and increment. So that they can bring more strategies and
innovation at their work and also reviews the personal thoughts and ides of the customers
demand and fulfill it accordingly (Gannaway & Sheppard, 2017). They maintain all the ethics
and government rules and standards which are to be followed by the company on working under
their norms and conditions. By this innovation various channels are innovated and developed
according to the demand of the customers are providing online products and new services in the
field of digital satellite system.

REFERENCES
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Online
Sky New Zealand. 2019. [Online]. Available through: <https://www.sky.co.nz/aboutus>.