Manchester united Manchester United (ManU) is one of the leading football clubs in the world. ManU has won many titles in the football competition making the club to be the most successful football club in the world. The success of this club is contributed by the good management of Sir Alex Ferguson who has been the manager since 1986 when Ron Atkinson left (Official website, ManU). Introduction The football industry in UK has become popular because of the first successes in the industry, an attribute that made it a viable business. The main aim of this report is to analyze the SWOT and PEST analysis of Manchester United. From this analysis, it will be possible to identify both the internal and external strengths of the company. SWOT …show more content…
There is a frequent change of leadership in the company making the club to be disunited. Nonetheless, this will affect the sale of merchandise. Lastly, the club is lacking enough finances for financing academies and junior football, so that they can train the best footballers to ensure smooth succession in the future. PEST Analysis of the Manchester United The club's decision has been affected by macro-environmental factors such as the changes in taxes, new laws, demographic changes and the changes in government policy. The managers of Manchester United can classify these as the political, economical, social and technological factors. Political factors This comprises of the laws which govern the issues affecting the activities of the club. Currently the team is undergoing a problem of paying out its debts which amount to $1.5 billion, a figure which was misappropriated by the greedy owners. The fans of Manchester United from England are preparing to join their efforts to force legislators to consider pro-football legislation in parliament which will aim at fighting the total arrears which has not being paid because of corrupt owners who misuse the funds of the club. Such an action has exploited the loyalties of fans of Manchester United. Economical factors The club has boosted the economy through employment opportunities which have been created to the players and the officials. The positive effect of Manchester United FC is felt globally because
They saw advertisement as an income. And the franchises have increased revenues by using new stadiums and increasing prices for premium seating since 2002. New stadiums have new clubs, restaurants, stores and museums that can be served as new sources of revenues. They made profits by selling merchandise. Also, new stadiums improved the attendance of fans.
Tottenham is part of a stable industry where the demand is inelastic due to enormous fan following
Supporters of the industrialization of Manchester were typically British politicians or businessmen, impressed by the progress and
The controversy between the owners and players concerning how to account the expenses is crucial to understand if the company could be profitable and then able to meet players’ requirements. In this case three problems are under the scrutiny of the arbiter: roster depreciation, player compensation and the transfer pricing of related party operation, thus issues regarding the stadium cost. Players and owners are struggling against each other in order to win the bargain trying to force and emphasize their own reasons. Since they have not reached an agreement yet, a super-partes moderator has been asked to figure out the outcome of the bargain, relying on good and rational
The UEFA FFP Regulations is about improving the financial health of European football club (UEFA, 2014). The regulation have came in force at the end of 2012 season where all clubs had to abide to the rules and regulations to obtain the license to play in the UEFA Champions League (UEFA, 2010). Deloitte (2014a, p. 2) refers the FFP break-even requirement as ‘a change potentially as profound as that brought about by the Bosman ruling.’
The Financial Fair Play draws attention to the reported losses made in European football over the past fifteen years. As football started to grow at an exponential rate, the losses started to mount also. As far back as the early 2000s, several clubs football clubs went bankrupt and faced administration while dealing with huge substantial losses. Prior to the season before the financial fair play was introduced, it was noted that 12 out of the 20 clubs reported an overall loss. This led to the Premier League pre-tax losses reaching an all-time unwanted record of £445 million in 2009/10 and a debt around £3.1 billion in 2008/2009 (Deloitte, 2011). The profitability of the league and its clubs in relation to the Financial Fair Play is determined by the profit and loss accounts (relevant income minus relevant expenses) which aligns with UEFA’s requirement for clubs to break even and improve their profitability. Another two objectives of the regulations mentioned previously also relate to profitability; which are:
Professional football clubs need revenue. It is vital to the financial survival of a club as they have ultimately become a business. Money is a vital necessity to enable the club to function. From paying ground rent to the funding of the youth system and to even signing players for the clubs, it is fundamental that a club is making a profit. The owners of the clubs will want to see profits being made otherwise the club will eventually no longer be able to function.
The use of PEST analysis can be seen effective for business such as their strategic planning, marketing, and product development. Furthermore, PEST ensures that company`s performance is aligned positively with the powerful forces of change that are affecting business environment (Porter, 1985). PEST have four factors which are Political, Economic, Social, and Technological. However, we use these factors to check how they interplay to the business or the activity of an organization.Using PEST analysis is important when a company decided to enter its business operation into new markets and new countries. In this case, using PEST will help to adapt effectively to the realities of the new environment and to make contingency plans for threats by preparing business and strategic plans (Byars, 1991; Cooper, 2000).
PEST analysis (Political, Economic, Social and Technological analysis) describes a framework of macro-environmental factors used in the environmental scanning component of strategic management. Some analysts added Legal and rearranged the mnemonic to SLEPT;[1] inserting Environmental factors expanded it to PESTEL or PESTLE, which is popular in the United Kingdom.[2] The model has recently been further extended to STEEPLE and STEEPLED, adding Ethics and Demographic factors. It is a part of the external analysis when conducting a strategic analysis or doing market
The game of football is the most popular game on earth. Many people start to love the game in a young age and throughout the years usually get connected to a specific team. Every fan wants the best for his team, but the problems start when a group of fans think they can manage the club better and use Illegitimate ways to get what they want, or when they decide to use the stage to show their hate for someone. Currently the law dictates that the club should pay for the actions of its fans, I think that this is an irrational law and it should be changed immediately.
Sir Alexander Ferguson, a former Scottish soccer player and manager, is well known and highly recognized for his time managing at Manchester United from 1986 to 2013. His time spent at Manchester United is analyzed by fellow coworkers, managers, and players as one of the most successful in his field and most commendable of all time. Ferguson could probably be called the greatest football coach of all time. With 26 seasons as the central piece at Manchester United, Sir Alex Ferguson won 13 English Premier League titles, and 25 other domestic and international trophies. Ferguson was a man of consistency during his tenure as Man U’s club manager placing at least in top three of the league every year. Before
Although, the case study of Manchester United gives us a good example of a brand’s ability to globalize, it does not give us a clear picture into how a league as a whole accomplishes these same goals. To get this clear picture of a successful global soccer league we can review a case study by Matthew Holt that examines the UEFA Champions League and its ability to succeed. The UEFA Champions League(UCL) was established after the UEFA European cup started to see more revenue increases based on the increase in television and digital technologies. (Holt, 2007) The goal of the UCL was to increase revenue through a newly structured European club soccer league. The first way that UCL accomplished this was through centralized marketing. This was accomplished through selling the television rights as the UCL brand rather than allowing the clubs to individually sell the rights to the games. This increased the value of the television rights and in turn increased the profitability of the clubs. (Holt, 2007) UEFA sold this UCL brand
With normative stakeholder theory one tries to explain (in these settings) why football clubs should take into account the interests of the stakeholders. It is easy to sympathize with the customer group in this matter. They are the foundation stone that has built the club through the years and they have invested money, emotions and their private time. But they are not as important as they once was for the club. This given that another stakeholder group (Suppliers e.g. broadcasting companies, sponsors etc.) now serves the business with monetary funding’s, hence the times have changed. Ultimately though, the suppliers will almost certainly vanish if the customers stop buying the product. Shareholders and employees can easier than the customers in this case find another business to join, they are not exclusive in the same way as the customers.
The aim of this report is to analyse Picard´s market performance as well as challenges in its operating market using the PEST analysis tool, in order to identify if the company has prospects of entering and succeeding in the UK based on Porter´s five forces model.
Managers often find themselves being sacked and replaced, sometimes only lasting a matter of days before having to move on. In this essay I will be investigating the performance of Premier League football teams, both with a change of manager and without, to see if there is evidence of a correlation between the changing managers and the results of football clubs.