Executive Summary:
This report gives an overview of Sky Plc, it looks in to the products and services that Sky have to offer, like Broadband and TV packages. It also gives a summary of what the company want to achieve with its customers. With over 21 million customers across 5 different countries Sky is growing from strength to strength.
With a revenue of £11.3bn in 2015 Sky saw a 10% increase on the year before, showing that even in an ever difficult economy, staying committed to your goals and your people, growth is still possible.
The report looks in to external factors that could affect the company’s growth 2016 such as; The whole sale of its premium channels, this is something that is a long term issue for Sky as it doesn’t give them a unique edge over its competitors. Another element is the financial state of the global market, even though Sky is achieving its goals at present, this could change and could be affected by exchanges rates, rate of inflation and the amount that the public have to spend.
The function and structure of the company have a large impact on how the business is run, the report looks in to some of the functions such as: HR and Customer service. By different functions pulling and working together it can improve productivity and turnover. Building on these relationships and supporting one another can create great team spirit and a strong work force.

1.1 Who are Sky Plc
Sky is Europe’s leading entertainment company. The group serves 21 million customers across five countries: Italy, Germany, Austria, the UK and Ireland. Sky offer the best and broadest range of content, deliver market-leading customer service and use innovative new technology to give customers a better TV experience, whenever and wherever they choose [Sky.com; about sky plc].
1.2 Products and services
Sky offer a range of packages for both the TV, Broadband and Talk. * TV; Bundles, channels and shows, equipment, installations and set up * Broadband packages; Sky broadband fibre and talk, Sky broadband and fibre and Sky talk
Services to its customers: * Free broadband testing * Ability to compare broadband speeds * On line account management * Engineer visits * Helpline * Sky Go (to watch Sky on the go)
1.3 Sky’s Customers * Over 21 million customers [corporate.sky.com] * Committed to their customers by giving them great customer service * Improving the customer experience * They have invested in services to help people with disabilities and people who are hard of hearing * Sky want to be a family friendly company to all its customers
The Sky customer is someone that is after the most up to date programs, movies and box sets. The customer wants broadband that is reliable, quick and cost effective. They want to know that someone is there at the end of the phone to answer any questions, queries or complaints that they many have. Sky is committed to act quickly and effectively with its complaints, the customer is directed to the on line ‘Complaint code’ section of the website where it gives clear instruction about how to log a complaint and what happens next.
1.4.1 The Goals at Sky
Sky’s’ mission statement – ‘Making life better by entertaining and connecting people’ * Their moto ‘Believe in better’ * Making products affordable * Committed to providing excellent customer service * Committed to behaving responsibly and doing the right things within the community * Committed to their people * Build a long term durable business

1.4.2 Sky’s Business model * To provide great content to its customer * Market leading innovation * A customer focus – they are led by their customers * Growing Pay TV sales * Selling more to customers – up selling * Targeting opportunities with companies that complement their offering
Sky want to create value within its business model and they look to do this by investing long term to build a durable business. They look to see the bigger picture; they know that their business can have an impact on its communities. Driving efficiency – focusing on operating costs and driving down costs where they can.
Lastly they invest in people that they employee, this is critical to their success. Sky have and continue to invest in its people, having recently set up a ‘Sky Development’ portal offering e-learning, online seminars and video content.
1.4.3 Financial position - 2015 * Revenue for 2015; £11,283bn (Adjusted revenue to include subscription, Transactional, wholesale and advertising) * 5% growth on 2014 - £10,776bn * Operating profit; £1,400bn – this is an 18% growth on 2014 * Using complimentary brands has increased customer growth of 506,000 net new customers * 3.3 million new paid for subscriptions
1.5.1 External factors that could affect the business in 2016 Organisational factors | Short, Medium or Long term effect | Importance or impact | Internal or External | Sky has to wholesale some of its premium channels to its competitors | Long term | Unique edge over competitors is taken away - so could impact the business and its customers | External - legal.(Ofcom.com) | Technology | Short, medium and long term | A failure to develop technology in line with a changing market could erode the groups competitive position | External | Economic conditions | Medium/long term | The ever challenging conditions of the economy remains uncertain. A significant decline could see the group struggle to retain customers in certain territories. | External | Financial | Short, Medium, long term | The Group is exposed to financial market risks and may be impacted by fluctuations in foreign exchange and interest rates. Any increase in the financial leverage of the Group may limit the Group’s financial flexibility. | External |

1.5.2 Regulatory matters that are ongoing with Sky Plc which have an impact on the business: * European Commission investigation – formal investigation in to pay TV services in the EU; impact on the financial position. * Ofcom Competition Act – Complaint from BT, Sky abusing their dominance; impact on growth and profits * Virgin Media complaint – regarding competition law; impact of financial, growth and profit.

2.1.1 Sky Plc – organisational structure
Sky has a large board of directors consisting of 12 board members; * 9 non-executive directors * 1 Chairman – Nick Ferguson CBE * 1 Group Chief Executive Office – Jeremey Darroch * 1 Group CFO & MD – Andrew Griffith
Sky then have 12 executive teams with a ‘Head of’ for each of those teams that manage different areas of the business on a day to day bases. Sky Italia and Sky Deutschland have their own management teams
2.1.2 – Functions of the organisation:
Sky Plc is a large worldwide company with many different functions operating within the business, 4 key functions are: * Customer Service – Chris Stylianou is the Managing Director of the customer service Group, he would oversee the contact centre, in-home installations and service operations. * Technology Centre – Dider Lebrat is the Chief Technology Officer, he would develop the technology strategy with his team, look at development, IT and the internet. * Human Resources – Deborah Baker is the Group Director for People, she oversees the HR functions within the group. * Legal – James Conyers is the Group General Counsel for the group, he is responsible for all the legal and regulatory affairs.

2.2 Working together to optimise performance:
Each of the above functions will need to work together so that the whole of the organisation has the same aims and objectives. To achieve this, communication across the various functions is key.
Some key points are: * They need to perform together to meet the company’s set goals * HR will look to provide the right employees for each role, they will look to recruit if needed, so will work with that particular area to make sure the right candidate is put forwards * Technology will work with design and production, which will then get the backing of finance * Advertising/PR will work with Finance also to decide budgets for the year, they will also work with external parties * Legal will work with the group to make sure that every new product, design, regulatory laws are met and adhere to current standards/legislations
“A small number of people with complementary skills who are committed to a common purpose, performance goals and approach for which they hold themselves mutually accountable” [Katzenbach.R and Smith.D 1993].
2.3.1 – What is Culture?
“It is the infrastructure, the glue that binds together people and processes to generate results” [www.creatingculturechange.com].
A business culture should be; tangible, measureable and observable. The culture reflects on the focus of its employees and processes, which in turn creates happy customers to the business.
Sky’s Cultures:
“As individuals, we believe that effective corporate governance is based on honesty, integrity and transparency, and can only be fully realised within an environment of open, robust and effective debate. This is the Board culture we foster at Sky” [corporate.sky.com]. * The commitment to act responsibly in all they do is integral to the Sky Culture * Sky aim to foster a culture which encourages their employees to fulfil their potential and to strive for continual improvement in all that they do, enabling them to achieve great things together.
2.3.2 – How a culture can affect operations:
“An organization’s culture encompasses everything it does and everything it makes. That is, it not only affects the manner in which managers manage (and consequently shape employee behaviour), but it also affects the way in which the organization processes its product and provides services to its customers” [hr.com] * It can affect productivity – Motivation thrives on a good working culture, if management can achieve this, it will create a long lasting culture for success * Employees – having a positive work force can create a positive mind set, therefore improving the culture within the business.

If Sky loses its focus on the culture they have embedded in to the business this could have a detrimental effect to its employees and its customers. The employees will feel as though they are not appreciated and valued which will in turn impact on the way they work with their customers. If the customer isn’t happy with the service Sky are providing, they will go elsewhere for the TV, Broadband and telephone requirements.
3.1 HRM/L&D activities which can support an organisation in meeting its goals and business objectives: * Staffing: HRM work with the organisation to make sure that it is appropriately staffed and that each staff member is fulfilling their role. A company organigram will be produced, which will show the structure of the company, who works where and what contracts people are working to. This then can create openings for new roles in which the HRM will work with the relevant team manager to form a job role/description and recruit. * Performance rates/objectives: They will need to make sure that all the employees that work for the company are motivated and dedicated to their role – this will help maximise performance rates therefore increasing profitability, employee longevity and loyalty. This can be done via a bonus scheme, promotion, company cars etc. * Non-performance of staff: HRM’s will be asked to assist in disciplinary procedures – they will work with the relevant manager to put a performance plan together to try and improve the employee’s work/mind set and if this can’t be achieved then the discipline route will be taken. * Administration: The HMR has the responsibility of keeping all employee records up to date, so terms and conditions, pay rates, appraisals, training etc. This is required for legal regulations such as National Insurance Rates. As well as employee records, they would have to make sure all staff handbooks, safety manuals etc. were kept up to date in accordance to the latest legislations. [Martin and Whiting 2013]
3.2 HRM and L&D professionals; how they can support line managers and their staff: * HRM and Line Manager: It’s within a company’s interest that both parties work together, mainly because both have a vested interest in the company and want it to achieve success. By working with the line manager and teaching them the role within HR and concerns their staff makes the line manager more efficient in HR tasks and frees up the time of a HRM to work on strategic projects within HR/The business. * The Employees: by working together the HRM can make sure that the company has the right employees with the correct skill set for each role, so increasing productivity without the need to increase the head count – this will then ensure that the staffing budget is within its limit, therefore reducing hiring costs and improving turnover. If new employees are required, an action plan/job role can be defined and the HRM and Line manager can look to recruit. * Conflict: if the HRM and the Line Manger have a close working relationship with each other as well as the employees it can help when it comes to issues such as conflict. The first point of contact for the LM is the HRM, so if there is no relationship there it might be difficult for the HRM to determine the under lying cause of the issue. If the relationship is already there, the HR team will have more confidence in the LM’s and know that each manager documents their employees’ actions, decisions and discrepancies appropriately. This will then make investigations in the work place easier.

4.1 References: 1. Sky.com; about sky plc. Available: www.corporate.sky.com/about-sky/ataglance/sky-plc. Last accessed 3rd Feb 2016. 2. corporate.sky.com/documents/annual-report-2015. Last accessed 3rd Feb 2016. 3. Katzenbach.R and Smith.D (1993) The wisdom of teams. Harvard School Press. 4. Patkinson.P – creating culture change; www.creatingculturechange.com; Google Scholar 5. corporate.sky.com/annual-report-2015 6. hr.com/en/communities/how-culture-affects-productivity – www.hr.com - The Human Resources Social Network.

4.2 Bibliography: 1. Hr.com, (2016). HR.com - The Human Resources Social Network. [online] Available at: http://www.hr.com [Accessed 6 Feb. 2016]. 2. Martin, M. and Whiting, F. (2013). Human Resource Practice. 6th ed. London: CIPD, pp.16-17 and 18 -20 and 262 - 263 and 20-24. 3. http://www.cipd.co.uk/hr-resources/factsheets/strategic-human-resource-management.aspx