Добавил:
Upload Опубликованный материал нарушает ваши авторские права? Сообщите нам.
Вуз: Предмет: Файл:
MU_final_with_bibliofraphy.docx
Скачиваний:
15
Добавлен:
14.11.2018
Размер:
531.05 Кб
Скачать

SAINT-PETERSBURG STATE UNIVERSITY

Graduate School of Management

Fc manchester united strategy: strive for survival

(Contemporary Strategic Analysis Group Project)

MIB-2013:

Nicolay Hutoryanskiy Anton Malyutin Vladimir Shahrour Andrei Shostka Eugene Ulzutuev

St. Petersburg, 2011

Contents

Introduction 4

1. Football club as a business 6

1.1. Industry background 6

1.1.1. Sports perspective 6

1.1.2. Business perspective 8

1.1.3. Integration of sports and business 11

1.2. Brief history of MU 12

1.3. Recent events 15

1.3.1. Glazers debt 15

1.3.2. IPO prospects 17

1.3.3. Financial fair play 19

1.3.4. Increased competition 21

2. Football as a business market 23

2.1. Brief history of football commercialization 23

2.2. Costs for football clubs 23

2.3. Sources of revenue 24

2.4. Competition structure 27

2.5. Strategic maps of competition 28

3. FC MU current situation 40

3.1. FC MU Structure 40

3.2. Financial Performance of the Club 43

3.3. Strategy of the Club 46

4. Strategy analysis 48

4.1. Meso-level – Porter 5 forces analysis 48

4.2. Macro level – PESTEL Analysis 50

4.3. SWOT-Analysis 54

4.4. Implications & Findings 57

Conclusions and Recommendations 60

Introduction

Football club is not a usual target for business school case studies. One of the reasons is that the sports management is a specific part of business theory. Moreover, it can be observed that clubs usually generate no profit and struggle for survival through sponsorship contracts. At least, this has been a case for the previous decades.

Nevertheless, nowadays it seems that business issues are getting more power for a sports club. Undoubtedly, football is one of the most commercialized and popular games in the world. Salaries for the key players and revenues of the clubs account for billions of dollars which calls for proper financial and strategic management. Clubs have become brands and try to spread their presence globally.

Recently UEFA has introduced several proposals in order to separate sports from the business and keep the spectacular level of the show at its best. These changes, the most notable of which is the financial fair-play, are putting additional restrictions on the clubs’ activities and raise new issues of being profitable as well as victorious. Ironically, this only further integrates sports with management and development strategy. It is no wonder that a football club IPO does not sound like nonsense anymore, the business is already among major FCs.

For Manchester United these issues are becoming increasingly important as it is faced with the large debt from its previous history. The acquisition of the Club by Glazers family followed by the restructure and cash outflow puts a hard pressure on the Red Devils. Though in the last years MU has been victorious on the pitch, its performance on the accounting books is not so bright.

Under these circumstances FIFA’s initiatives put additional burden on the Manchester’s management which is already concerned by the fans disappointment and boycotts. The strategic goal for the Club is to enhance the value of its brand and improve the positive experience of the supporters both on the stadium and remotely. But this seems a challenging task if financial fair-play is to be implemented.

Can Manchester United achieve its objectives in the next few years? Will it be as successful on the pitch as in the financial statements? Is this the new point in world’s football history? What can be done in order to continue the Red Devils’ domination? These questions are the main issues of this case study.

Соседние файлы в предмете [НЕСОРТИРОВАННОЕ]