Manchester United Essay

We aim to increase our tax revenue and favorableness by expanding our in naughty spirits growth businesses that leverage our world(a) residential ara and marketing infrastructure. The key elements of our st stationgy atomic number 18 flip bingles lid our portfolio of orbiculate and regional sponsors We argon hearty positioned to continue to secure sponsorships with leading brands. Over the last hardly a(prenominal) age, we give birth implemented a proactive approach to positioning, securing and supporting sponsors. In addition, we be condenseed on expanding a regional sponsorship model, segmenting reinvigorated opportunities by reaping category and territory. As part of this st outrankgy, we allow loose an office in Asia and be in the process of opening an office in North America. These argon in addition to our London and Manchester offices. Further develop our retail, merchandising, apparel & point of intersection licensing business We will focus on gro takeg this business on a global basis by increasing our crop range and improving distribution through except increment of our wholesale, retail and e-commerce bring.Manchester unify branded retail locations have opened in Singapore, Macau, India and Thailand, and we plan to expand our global retail rumpprint over the future(a) several years. In addition, we will excessively invest to expand our portfolio of product licensees to enhance the range of product offerings available to our followers. Exploit new media & fluent opportunities The rapid shift of media consumption towards internet, mobile and neighborly media platforms presents us with multiple growth opportunities and new revenue streams. Our digital media platforms, much(prenominal) as mobile sites, applications and well-disposed media, are expected to fix one of the primary orders by which we engage and transact with our followers roughly the world. In addition to developing our own digital properties, we intend t o leverage third party media platforms and other social media as a means of further engaging with our followers and creating a source of traffic for our digital media assets. Our new media & mobile offerings are in the early stages of development and present opportunities for future growth. Enhance the compass and distribution of our broadcasting rights The value of live sports programming has grown dramatically in recent years due to changes in how television content is distributed and consumed.Specifically, television consumption has reverse more than than fragmented and audiences for handed-down scheduled television programming have declined as consumer choice increasedwith the emergence of multi-channel television, the development of technologies such as the digital video recorder and the emergence of digital viewing on the internet and mobile devices. The unpredictable outcomes of live sports ensures that individuals consume sports programming in real time and in salutary, resulting in last audiences and increased interest from television broadcasters and advertisers. We are well positioned to benefit from the increased value and the growth in distribution associated with the prime minister League, the Champions League and other competitions.Furthermore, MUTV, our global broadcasting platform, delivers Manchester coupled programming to 54 countries around the world. We plan to expand the distribution of MUTV by improving the quality of its content and its production capabilities. Diversify revenue and improve margins We aim to increase the revenue and operating margins of our business as we further expand into our proud growth commercial businesses, including sponsorship, retail, merchandising, licensing and new media & mobile. By increasing the emphasis on our commercial businesses, we will further diversify our revenue, enabling us to generate improve profitability. The five forces model of Michael porter looks like the succeeding(a) if app lied to Mu Ltd. SUPPLIER POWER lofty diversity of suppliersVolume is important to supplierMU diametricaliates of inputsInputs have a high impact on be and differentiationSwitching cost of firms in the intentness are lowThere is a low Presence of substitute inputsBARRIERS TO ENTRYThere is quite an informal access to inputsThe is a government policy promoting quite loose entry in case authorized registration type of requirements are fulfilled There is economies of scale last capital requirementsThere are strong brand identity in the succer sector of the sports industry Switching be are highEasy access to distribution measly expected retaliationTHREAT OF SUBSTITUTESLow switching costsBuyers are not highly inclined to substitutePrice-performance, to a certain level, has no square off on the preffered team Trade-off of substitutesDEGREE OF RIVALRYHigh exit barriersLow industry concentrationHigh fixed costs/High value addedLow industry growthLow product differencesLow switching co stsHigh brand identityHigh diversity of rivalsBUYER POWERdicker leverage is neither high, neither lowBuyer volume upon successful times are highBuyer information can be considered highBrand identity is strongPrice sensibility is not extremely highProduct differentiation is actually highBuyer concentration vs. industry is lowMany substitutes are availableSource http//www.quickmba.com/ dodging/porter.shtmlKey Performance Indicators (KPI)The other, as mentioned before, is the KPI, or key performance indicators. As the Affiliated League gild lists, the KPI of a sports klubs must be the following( p.3,http//nemjfa.homestead.com/BUSINESSPLAN.pdf ) laborious business planStable administration, close communication between all levels of Club Management High quality coaches at both senior and underage levelsHigh profile and acceptance within the communityStrong Club presence in schools, both primary and secondarySound oval management, high standard of hunting lodge facilitiesSound pecun iary management, expenses kept in line with income base Development of Juniors, specially local based playersManchester get together Ltd. is a very professional connection, and is in possession of these characteristics. It actually inevitably so, if it wants to achieve its declared goal, to be the approximately successful teem in football (http//ir.manutd.com/manutd/about/bustrat/). As to the last part of the question, identifying internal and orthogonal factors, please refer back to the Porters 5 Forces Model above Major cost categories of the party, the drivers behind these costs, and the internal and external factors that crook costs the to the highest degree There are threesome major cost categories, those re new-fangledd to the operation and development of the corporate Manchester unify, the costs related to the operation and development of the sporting ball club, and other, related costs. The corporate costs include such costs as dept and maintance costs, and cos ts related to the commercial activities of the beau monde. Examples of club related cost include the compensation of the players and staff, and get of new players and stuff. The other costs include, for instance infrastructural costs, such as the maintance and development cost of the stadium of MU, the antiquated Trafford. The drivers of the costs of Manchester coupled, and the internal and external factors that influence the cost structure and levels of these cost in all the three major categories can be observed in the second part of question 1, in the Porters Five Forces Model. What companies are comparable companiesOther English football club corporations like Chelsea and inventory of London, Everton, and Liverpool. Companies operating football clubs are very dinstinct from companies of other industries, and the larger football clubs are probably very similar to each other in how they conduct their business, all having some income sources, tickets, clothing, that are the sa me. Method most appropriate to assess the value of the company, advantages and disadvantages of the relative and the DCF regularitys. If we are looking at the performance of the company, probably the profitability is the bar that should be used, because it measures the efficientcy of the financial performance of the company. DCF MethodAdvantagesAs DCF analysis is based on the assumptions of the CAPM, it is an analytically correct valuation method. In contrast to the Comparable Companies analysis, volatile market conditions do not have an impact on the results. DCF therefore is often used as an additional point of reference. Since the discount rate is usually derived from the WACC, the DCF takes account of the relative riskiness of the projected cash flow. Accounting rules do not influence this approach, as valuation is based on projected cash flow. growth period period of electrostatic growth. Multiples appropriate for the comparison of the company with other comparative compani es, what financial and non-financial measures should be a basis of compari in all likelihood the best multiple to measure the success of a club is the highs won to the sum of tied and lose games.This is important, because the more games a club can win, the more the corporate club can achieve in its merchadising, and the more sponsors it will be able to attract. This multiple would be considered to be a non-funancial measure. A financial measure applicable to football corporations would be profitability if the company, as it, though with limmitations, measures how efficiently the club is operating. other financial measure would be the revenues per players in a complete season. ShortcomingsSince the terminal value often represents more than 50% of the inherent DCF value it is therefore highly sensitive to the underlying assumptions, specially regarding the growth character in the terminal value and the discount rate. Using historical stock returns when estimating the beta depen ds heavily on the choice of the index. For volatile companies the beta is very high, resulting in a relatively high discount rate and a low net present value of cash flows. Estimating a correct value by applying the DCF approach therefore depends to a large extend on the expertise and industry knowledge of the individual doing the valuation. Moreover, the DCF approach neither considers different management options nor future enthronization opportunities. It only works if cash flows are subject to little uncertainty and the company is managed by a static management team. It does not get the true value if there are large initial losses, highlyvolatile earnings or immense initial growth rates. (WEITZEL, GELLINGS, BEIMBORN and KNIG, 2003, IS Valuation Methods- Insights from Capital Markets Theory and Practice , p.5-6.) Relative methodAdvantagesAs the comparable companies method is based on public information, market moods and perceptions are reflected, since it measures the relative and not the intrinsic value. Relative valuation is based upon fewer assumptions and can be conducted faster than DCF valuation. ShortcomingsThe simplicity of valuation by multiples is its deficiency Benninga/Sarig 1997, 305. Since no value determinants are give wayd, it is important to carefully select comparable firms. Also, outside(a) variables like mergers and acquisitions in the respective sector can influence stock prices. Figures often fail to experience intangible assets, like quality of management. Hence, CC based valuation should provide a valuable sanity check to assure the validity of a DCF analysis, but it should not be the only valuation method used Benninga/Sarig 1997, 305. (WEITZEL, GELLINGS, BEIMBORN and KNIG, 2003, IS Valuation Methods- Insights from Capital Markets Theory and Practice , p.7-8.) Limitations of applying the relative and the DCF methods to the evaluation of the company, what can be make to overcome this problem There are a number of limitations of applying the relative and the DCF methods to the evaluation of the company.For instance, procure new players and coaches cost a lot of money it is not rare that that amount of money reaches one million euros. As it was seen in the above summary of the disadvantages of the DCF method. A possible solution to this problem, though not very humane, the cost of these players and coaches could be depreciated over the time frame of the contract involved, just as it is done in the case of new infrastructural expenditures. In the case of the Relative method, the problem is that the progression of the team in the national, that is in the premier(a) League, and in the international cups and championships, were much different both in the near yesteryear and will probably be in the future also. This increases the risk of the cyclicality of the business. This cyclicality can be much different in the case of the different corporate clubs, which makes the incomes and thus other results of the companies very difficult tocompare. Links for more informationPorter five forces analysis Wikipedia, the free encyclopedia Porters five forces is a framework for the industry analysis and business strategy development developed by Michael E. Porter of Harvard phone line School in 1979. It draws upon Industrial Organization (IO) economics to derive five forces that determi Performance indicator Wikipedia, the free encyclopediaA performance indicator or key performance indicator (KPI) is a measure of performance. Such measures are commonly used to attend to an organization define and evaluate how successful it is, typically in terms of make progress towards its long-term Manchester united Official Web SiteThe formal site with news, transfer rumours, online ticket sales, live match commentary, video highlights, player profiles, mobile content, wallpapers and more. Manchester unitedManchester get together (ManU) is one of the leading football clubs in the world. ManU has won ma ny 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). IntroductionThe football industry in UK has become customary 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 linked. From this analysis, it will be possible to identify both the internal and external strengths of the company. SWOT analysisSWOT analysis can be used to know the success factors of ManU as well as to identify the strategies to be overcome the clubs weaknesses. Moreover, SWOT analyses will enable the company to identify the opportunities to improve performance. SWOT analysis of Manchester joined is presented below StrengthsThe key strength of Manchester United is its well recognized brand all overthe world. ManU has achieved such good brand name by heavy advertisement through the internet, TV and magazines (Andrews, 2004). This massive advertisement has made the club to get motley sponsors. This means that whenever the company raises any merchandise in the market, indicating their name and symbol, it will be identified by its funs all over the world. Strength of the club is the presence of a full-grown fan base which has improved the financial stability of the club. This big fan base has made a very high purchase figure whenever the tickets are being sold. Furthermore, Manchester United has several(a) distribution channels which enable it to deliver new products introduced into the market. Furthermore, these channels can be used by the Manchester United to obtained feedback from the market concerning their products and performances. WeaknessesFrom the website of the company, it shows that the major weakness is the products and product variety. It is evident that the company has been introducing many diverse products at different occasions. All these diverse products have been introduced from the tee shirt to credit cards indicating that the company has exploit the available sources of income within the company. This action needs to be enquiryed as soon as possible so as to help the company to situate and analyze it products, follow the use of centreive instruments such as the Boston Matrix which will help the company to identify that the products are doing well in the market. Lastly, the club has been so affluent, and it is still operating on such a high level, there is a worrying within the management of the company that it will loose its origin, which has a diverse concentration of the club from football to the proceeds. Such moves might have a great effect to its fans because the fans come from all over the world. OpportunitiesPenetration of the Manchester United to the American market has been one of the major oppor tunities to the company. The company will in future structure its club by entering into coalition with the saucily York Yankees. The New York Yankees is one of the well-off teams in the world. This will assist the company by ensuring that exclusive distribution channels are established in the United States of America. Through this the company will be in a position to enter and present their products in a new market. Furthermore, theManchester United will be in a position to lead all the football clubs in the America, though there will be superior height of risks concerned. The managers believe that by entering a coalition with the Yankees, this threat will be reduced (CNN, 2010). ThreatsManchester United operates under a great threat in this field because other big teams like Manchester City and Arsenal which are currently improving in their performances. These and other teams have become very big competitors to the club. Furthermore, the Manchester United FC has been facing intern al threats to the team. There is a frequent change of leaders in the company making the club to be disunited. Nonetheless, this will affect the sale of merchandise. Lastly, the club is lacking(p) enough finances for financing academies and junior football, so that they can train the best footballers to ensure subdued succession in the future. PEST Analysis of the Manchester UnitedThe clubs 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 crystalize these as the political, economical, social and technological factors. Political factorsThis 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 t heir efforts to force legislators to consider pro-football legislation in parliament which will aim at struggle 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 factorsThe club has boosted the economy through employment opportunities which have been created to the players and the positives. The positive effect of Manchester United FC is entangle globally because they employ the best playersglobally. Secondly, this soccer club has been a catalyst in the regional development because of the positive financial flows which are generated by the supporters of the team across the world. Lastly, the club has a positive influence on the economy because its officials are thrown from all over the world. These officials spend an average of 15on basic needs such as food, drinks etc. in a single match. If the supporters are from foreign countries they bring i n foreign currencies which will eventually boosts the Balance of Payments in the country TechnologyTechnology has contributed positively to the foot ball games since the players are capable of playing at night due to the availability of electricity. Furthermore, technology has facilitated various people from different parts of the world to come across football irregardless of there locations. Technology has facilitated fans of the club to obtain information from the internet concerning the performances of the company. This has benefited those Manchester United fans to get updates incase they had missed to watch the game. SocialManchester United just like any other football team has united many people especially the funs of football. People have interacted all over the world because of football. People from different age groups normally watch football because it is either their favorite game or because they want to watch just for leisure. Football has become part of the society in t he current world, everybody in the world reproofs of football, either English Premier League or the world cup championships. This is very important since it has affected the society in a positive way i.e. it can create employment in the region. For example, the world cup will be in South Africa this year. The South African government will collect a lot of review article in terms of taxation, sales of tickets and any other taxable stuff. This will have close human relationship with the social cultural factors though indirectly (Masterman, 2009). Manchester United has contributed a lot in the context of the social cultural factors as it employs players from different parts of the world. They normal select stars from different leagues and employ them. From a research done by Masterman, Manchester is the leading club in the payment package they offer to its employees. handicraft strategyThe team has carried research concerning their product development in the market. This is very im portant as it will help the team to improve their performance in their product in the present market before strategizing on how to enter the new market. ConclusionManchester United is the leading team in the football industry and to celebrate this position, they have to focus on the market and the needs of its clients and followers. The company has further improved on their product through carrying research these improvements have brought success in the club and improve the support of the team. The board of directors has also done their best by employing the best players to represent the club. This will make the team to perform well in the field whenever they have a game. Furthermore, these directors ensure that the discipline is well maintained in the company because the fans and its competitors are closely watching what is going on in the company. BibliographyAndrews, D. L. (2004) Manchester United a thematic study. Routledge UK. Barthold, D. 2009. The Business of European Footba ll. GRIN Verlag, (3). Pp 36-38 Masterman, G. 2009. Strategic Sports Event Management Olympic Edition Hospitality, Leisureand Tourism Series. Butterworth-Heinemann, (2). Pp 65-67 Manchester United. 2008. The Official Manchester United Annual 2009 Official ManchesterThe Manchester United Football Club is one of the most popular football clubs in the world. This English football club has its base at Old Trafford Stadium, which is located in Trafford, Greater Manchester. Manchester United is the founder member of 1992 Premier League. Being the second most successful team in the entire history of English football, Manchester United Football Club has over 330 million fans globally. The club has been participating in the top division English football since 1938. The Manchester United Football Club is also popular by its nickname, The Red Devils. In November 1986 when Alex Ferguson became the manager of the Club, Manchester United reached to the peak of success and won 20 major titles.The M anchester United Football Club has won the Premier League and First Division 17 times and is trailing behind Liverpool by just one title. Manchester United became the first English Football Club to win the European Cup in 1968. The Club has the record of winning maximum number of FA Cup titles. From late 90s until date, Manchester United remains one of the richest football clubs with a total value of 897 million. In 1998-99, Manchester United became the first ever and the only club to win the Treble. In the year 2000, the club became a founding member for the G-14 group. This is a group of the Big European football clubs. In the year 2005, American businessperson Malcolm Glazer took a controlling interest in Manchester United. With the Red Football Ltd as the investment vehicle, Malcolm took 75% control of the club and the club was de-listed from the Stock Exchange. Initially the jersey of Manchester United was yellow and putting surface in color but in 1902, the club changed it to red jerseys with white shorts and black socks. Manchester United has sponsorship deals with various companies.AIG, Nike, Audi, Budweiser, Betfred, Xfm Manchester are some of the sponsors for the club. The Manchester United football club has its own football ground at Sir Matt Busby Way, Old Trafford, Greater Manchester, England. The stadium opened on 19 February 1910 and the total strength of the stadium is 76,212. It is a difficult job to determine the greatest rival of Manchester United Football Club. fit to some people, Liverpool is the biggest rival of Manchester. Leeds, Manchester City and Arsenal are also the other known rivals of the Club. So faraway, the Club has bagged 3 European Cup/ UEFA Champions League, 1 UEFA Cup Winners Cup and 1 European Super Cup. Manchester United Football Club has also won 1 Intercontinental Cup/ piece Cup Championship. Facts 5% of the world population is the supporters of Manchester United Football Club. The Club has won 10 Premier leagues, 7 First division leagues and 2 Second division leagues. Manchester United won 11 FA Cups, 2 League cups and 16 FA Charity/Community Shield.In the next few articles, let us realize about the sports teams brand-building strategies. The most common strategy followed by most of the teams is Sponsorship with other global brandsBeing associated with other international brand names lends global presence to brands as they go worldwide. If we talk about the most richest soccer club, Manchester United, they have 44 official sponsors associated with the club. ane of the biggest tie up old in the year 2002 was Manchester Uniteds tie up with Nike. Both Manchester United and Nike gained in global stature after the announcement of their global tie-in 2002.Now such is the case that Nike has to discuss a 303 million kit supply deal with Manchester United and they might well have to anyhow pulsate out this huge sum of cash if they want to maintain their association with Manchester United. One month from now, this strategically important meeting will be talking place and the American sport wear company will have to come up with an enormous sum to satisfy the clubs owners. The lave logo has adorned some of the greatest teams and players in the history of the game, including Manchester United legends Eric Cantona, Ruud van Nistelrooy and Cristiano Ronaldo. Of the current squad, Wayne Rooney, Javier Hernandez, the Da Silva twins, Chris Smalling, Patrice Evra, Paul Scholes and Rio Ferdinand all wear Nike boots along with the standard kits. In recent years, Manchester United has form commercial alliances with a number of global players in other industries Vodafone, Pepsi, DHL and Aon were all added to the clubs sponsorship list. chthonian these arrangements, the club gains from sponsors international reputations and sponsors gain from their association with a such big sports brand. And Manchester United is talking full advantage of this to reach out to new segment of soccer f ans and in turn helping in strengthening its brand equity. In July, United announced a staggering 357 million deal with cosmopolitan Motors for the Chevrolet logo to be worn on their shirts for seven seasons from 2014. Chevrolets eight-year cooperatorship with Manchester United kicked off this summer with a series of friendly matches, bringing the worlds favourite football team to their fans in South Africa, Europe and China. The support for, and commitment to Manchester United and its passionate fans worldwide will go far beyond the pre-season games as General Motors look to join the fans in celebrating all that is beautiful about the game. One of the biggest logistics company which is present in 220 countries and territories worldwide has tied up United in 2011.DHL were made prudent to undertake a range of logistics services on behalf of Manchester United for three years. Just like DHL, Manchester United standsfor passion, teamwork and can-do spirit. And its those same charact eristics that have enabled both DHL and Manchester United to remain at the top of their game and thus join together and build its brand. The last two deals done recently by Manchester United were with the two sponsors from China (Wahaha, a soft drinks manufacturer and China Construction Bank (CCB). Both have tied up for a three year deal. CCB will hold the exclusive rights to produce the official Manchester United branded credit card in Mainland China. Wahaha has been the largest beverage producer in China for the past 11 years and will be the clubs first official soft drinks partner in the country. This is just one of the many strategic decision taken by this 135-year-old soccer club from Britain. In the coming article, I would write about Manchester Uniteds Asian Strategy, mainly spotlight its entry into the Indian market.