Strategic Analysis of Manchester United

strategic Analysis of Manchester unifyThe Football Industry The Barclays autopsy LeagueThe aim of this bailiwick is to undertake a detailed strategic analysis of the Manchester united F.C. with regard to its resource cappower and agonistic positioning, the organisations strategic fit with its surround and its management style with an emphasis on the cultural context of its scheme together (stakeholder expectations). To this end the mission, vision, goals and strategies of the hostelry depart be taken into consideration while strategically evaluating and rendering its management at business (competitive proceeds) and functional (customer look on) level.A classification of strategic analysis tools be overtaking to be utilise in order to wholly appreciate both internal and external implications on the environment the Club operates within. These will primarily include swot up and PEST analysis, Porters four corners analysis, and Value chain of mountains analysis.Market Environment AnalysisBrief analysis of the marketEnglish football, and the FA prime minister League (FAPL) in particular, is today a bigger business than it has ever been, generating record revenues both within its stadia and by dint of the move up value of its broadcast rights. The game is on TV in more countries than ever before and watched by an increasing number of passionate fans all around the world.Despite the rising cost of attendance, football one thousand are as full as they have ever been and FAPL matchday revenues have doubled in exactly eight years. But broadcast rights fees are expected soon to account for a majority mete out of income and younger consumers appear not to be inheriting the club ties that older fans were born into.Mintels research shows that footballs cost to suckers lies in its continued ability to reach mass mainstream audiences rather than in the value of its core audience, which is generally apathetic towards sponsors and their products (ove r half of fans claim not to pay attention to who sponsors what, while just 16% presuppose the brand that sponsors their club matters to them).Football is healthy insulated against recession by the multi-year nature of its media and commercial agreements and by the concomitant that up to half of all seats are paid for before a ball is kicked with era ticket sales.However, the experience of the 1980s recession (where between 1978 and 1984 average attendances in the top passage collapsed from over 28,000 to under 19,000) shows that attendance is vulnerable in a downturn, so that matchday revenues in the 2009/10 season could be at risk.Barclays Premier LeagueRoles and ObjectivesThe mission of the Premier League is to effectively Manage, continually rectify and be regarded as the worlds best league football competition and in this way Generate increase commercial value, using the resulting revenues to further enhance competitions and strengthen the long-term future of the Premier League and its clubs. early(a) objectives include Increasing interest in the Leagues competitions, promote accessibility to live games and ensure that media exposure is utilize to optimum effect.Useing the Leagues power and influence responsibly to improve the game in the UK and abroad through league with the FA, UEFA and other bodies.Createing a quality of competition that provides a platform from which our member clubs suffer achieve singular victor in European or World competitions (source Barclays Premier League formalised website).Relationship with the clubsThe Premier League is owned by 20 Shareholders the member clubs, whose membership in the league is dependent on the performance of their football team in the Barclays Premier League.Another co-owner of The Premier League is the Football Association. season they have the right of veto in special occasions as the appointment of Chairman and head teacher Executive Officer, they are not involved in the decision making process regarding some(prenominal) other area of the Premier League work. The statutory company responsibilities are managed by the Board of Directors who are alike running the day to day business.Relationship with other football bodiesThe Barclays Premier League is widely regarded as the most elite club competition in world football.The Premier League comes under the legal power of the Football Association (the FA) and must submit its rules on yearly basis for approval.Along with its British partners in Scotland, Wales and Northern Ireland, the FA comes under the control of the European governance body the Union of European Football Associations (UEFA). organize in 1954 and based in Geneva, UEFA works and acts on behalf of the member associations to promote football and ensure its welfare on the continent. The organisation is responsible for many high-profile competitions, some involving national teams such as the prestigious European Championships. UEFAs premier club compe titions are the European Champions League and the UEFA Cup, in which Premier League clubs aspire to contest and succeed on a yearly basis.The FA and the 50 other associations of UEFA are all affiliated with the worlds governing body the Federation of International Football Associations, or FIFA. It was formed in 1904 and is now one of the biggest sports organisations oecumenic striving to safeguard the good image of the game internationally and it is responsible for the Laws of the Game.FIFA can also shove off the World Cup as its prized asset the ultimate stage on which a professional footballer can perform and a tournament which captures the imagination of the entire planet (source Barclays Premier League official website).Manchester joined Club ProfileManchester United plc operates as a professional football club in the United Kingdom. Its subsidiaries are Manchester United Football Club, Manchester United Catering (Agency Company), and Manchester United Interactive. In addit ion, the company through a joint venture with Manchester United PLC, Granada, and British Sky Broadcasting, operates MUTV, the companys official channel. The company owns 33.3 per cent in MUTV.Since the late 1990s, the club has been one of the richest in the world with the highest revenue of any football club, and is currently stratified as the richest and most valuable club in any sport, with an estimated value of around 1.136billion as of April 2009. Manchester United was a founding member of the now defunct G-14 group of Europes leading football clubs, and its replacement, the European Club Association. (SourceForbes.com)Manchester United are the most boomingPremier League club having won the title10 times With a start in 1993 when manager Sir Alex Ferguson ended a 26-year wait to lift thePremier League crown.Manchester United Strategic AnalysisFor the purposes of this topic is will be assumed that Strategic Analysis fits within the descriptions below the process of conducting research on the business environment within which an organisation operates and on the organisation itself, in order to formulate strategy.BNET phone line Dictionary a theoretically informed judgment of the environment in which an organisation is operating, together with an understanding of the organisations interaction with its environment in order to improve organisational efficiency and effectiveness by increasing the organisations qualification to deploy and redeploy its resources intelligently.Professor Les Worrall, Wolverhampton Business SchoolThe market environment comprises a combination of the Barclays Premier League industry itself and the wider macro environment in which Manchester United F.C. operates. In addition, it highlights the market environments and critic success factors.The unique resources of Manchester United and the core competences of the Club are outlined in the analysis described below.SWOT AnalysisIn order to conduct a blanket(prenominal) market envir onment analysis and evaluate the conditions in the market environment that Manchester United F.C. occupies, a brief introduction of the Barclays Premier League and Manchester United F.C., summarizing the key aspects in a SWOT analysis Which will be the first step towards implementing a range of analytical tools (fig.1) The SWOT Analysis is the most popular instrument utilized in strategic planning and organizational problem solving.PEST analysisThe purpose of the PEST analysis below is to short outline the political and legal, economic, sociocultural and technological issues together with their implications on the performance of The Club, hence describing the external environment within Manchester United operates (fig 2)Porters four corners analysisThe four corners analysis is a useful tool for analysing competitors as it emphasises that the objective of competitive analysis should always be on generating insights into the future. In this case the model is used to develop a profile of the likely strategy changes a competitor might make and how successful it might be and determine competitors probable reaction to the range of industry shifts and environmental changes that may fall (Fig. 3)Quite straightforward, the competitors future strategy stems from the competitors motivation to exceed or overperform another Club and sets a variety of objectives pr actions to be completed with the implementation of their prospective strategy. However, these objectives should reflect on the Clubs capabilities as well as the skills of the individual players and staff at senior management level. Here it is essential to develop a absolved assumption on what creates value for a specific team as well as what are the relationships and networks the respective business has developed. For instance, Manchester United is one of the most successful teams in the history of football resulting in average attendance higher than any other team in the UK and extremely high brand consciousn ess (fig. 4).This means that together with the Clubs financial stability, strength of the senior management team and proven ability to serve a variety of channels Manchester United PLC is well on the way of creating and implementing in a sustainable way a winning strategy.Value chain analysisFurther to the description above, value chain analysis is based on the principle that organisations exist to create value for their customers. Furtermore it is a comprehensive technique for analysing an organisations source of competitive advantage. In the analysis, the organisations activities are divided into separate sets of activities that add value. The organisation can more effectively evaluate its internal capabilities by identifying and examining each of these activities. Each value adding activity is considered to be a source of competitive advantage. For Manchester United these include Manchester United Football Club, Manchester United Catering (Agency Company), and Manchester United I nteractive, the joint venture with Manchester United PLC, Granada, and British Sky Broadcasting, that operates MUTV. These are run on the basis of patriarchal and support activities, as Primary activities are those that physically create a product, as well as market the product, deliver the product to the customer and provide after-sales support and Support activities are those that facilitate the unproblematic activities. Crucial for the organisation is the process of identifying the activities that are critical to customers satisfaction and market success, such as creating competitiove advantage in competitions, hence the ticket sales and merchandising activity regarded to the process.Strategic fit AnalysisThe beginning(a) field of research that is required to be taken into account is the whole new product knowledge and research concerning Manchester Uniteds existing product selection. This is required to be examined principally as if Manchester United requires guaranteeing th at they are doing well in their present market prior to going into a new market. At first, Manchester United will require investigating into their existing product selection, however, with such broad variety of products, it is vital for Manchester United to valuate which of their products are perforating well in the market.ConclusionManchester United is in a very competitive recognise at present Currently ranked as the richest and most valuable club in any sport, with an estimated value of around 1.136billion. It has the highest average attendance than any other team in English football and receives a large amount of funds through sponsorships and agreements (merchandising). Nonetheless the Club requires to be cautious that they are not getting self-satisfied and that they are focusing on the market, and the requirements of their clients and followers. By implementing the research into their markets, it will renounce them to build up products for the clients, which will bring abo ut sustained support from the fans and success.ReferencesDess G Miller A. (1998) Strategic Management, 3rd edition, McGraw Hill Johnson GLynch R. (2003) Corporate Strategy, 3rd edition, FT/Prentice signPettinger R (2004) Contemporary Strategic Management, Palgrave McMillan, BasingstokeScholes K Whittington R. (2005,) Exploring Corporate Strategy Text and Cases, 7th edition, FT/Prentice HallWeeks, P. (2006), Managing People, Finance and Marketing, Pearson Education Limited, Essexhttp//www.cbc.ca/sports/story/2004/05/22/manchesterunited040522.htmlhttp//www.european-football-statistics.co.uk/attn/attneng.htm.http//www.forbes.com/lists/2009/34/soccer-values-09_Soccer-Team-Valuations_Rank.html.http//www.manutd.comhttp// www.news.bbc.co.uk/1/hi/business/4463534.stmhttp//www.premierleague.comhttp//www.skysports.com/story/0,19528,11667_2972778,00.htmlMintel reports Anglia Ruskin University digital Library