Corporate Strategy : Manchester United
[pic] 4G – Corporate Strategy Assignment 2 Name of the student: AMINE JIRARI Class: 4G5 Instructions: Please, read the Manchester United Case carefully, then, answer the questions using the template provided. Format: – Individual based – Font: Times New Roman, 12, single space – Max 4 pages (See below) o Page 1 (list of stakeholders) o Page 2 (Stakeholder mapping : actual situation from the case) o Page 3 (Stakeholder mapping: preferred situation) o Page 4 (Justify the “preferred” mapping)
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Question 1: Please, list all the stakeholders of Manchester United, and sort them on, based on pertinent criteria First of all, we are going to give a definition of the word “stakeholders”. In fact, according to the definition given by Miss Castellano’s class, this term means: “groups or individuals affected by and affecting organizational objectives” (Freeman and McVea 2005). Then we can classify stakeholders by categories: internal or external stakeholders. In this example, we are processing to list the stakeholders of Manchester United. Internal stakeholders:
Board of directors: Martin Edwards Executive directors: Peter Kenyon (chief executive) Managers: Sir Alex Ferguson Employees: Staff, players (Van Nistelrooy, David Beckam,…) The Manchester United Satellite (MUTV) External stakeholders: Competitors: FC Barcelona, Real Madrid FC, Chelsea Customers: supporters/admirers all over the world (from working class or high class) Alliances: New York Yankees (baseball team), Broadcasting Company, SFX players’ agent Company, which are economic partners Sponsors: Vodafone, Nike Investors: big shareholders, little shareholders
Community: EUFA, FIFA, G14 which are international sports organizations Medias (especially British Medias) Now we are going to fill in the stakeholders mapping in order to identify their power and level of interest. Question 2: Please, fill out the stakeholder map of Manchester United based on the information provided in the case [pic] Question 3: Please, fill out the stakeholder map of Manchester United for a “preferred situation” [pic] Question 4: Please, justify your choices regarding the way you filled out the map of the “preferred situation”.
Now we are going to justify my choices by positioning me towards Manchester United what is the most advantageous for the firm. First, it is important to reduce the power of the players’ agents (SFX) because they negotiate contracts at the best price to have big commissions which makes climb the bid and the company (Manchester United) loses money. Additionally, the club negotiates better contracts when it’s directly made with the players. Secondly, it is essential to limit the power of the manager Sir Alex Ferguson because there is a too big dependence of him.
In fact, if the club wishes to win more thanks to its marketing and commercial acts it would be necessary to get rid of it. Remember us; it was Alex Ferguson who had decided to sell Beckam to the Real Madrid football club while the player represents an important part in the marketing incomes of the club. Concerning the Medias, it is necessary to decrease their capacities of actions. It is them who detain and spread the information and of this fact they are capable of destroying the corporate image and the notoriety of the club.
Let us not forget it involves the 4th power! On the other hand, it would be interesting for the club to increase its partnership with the Yankee’s team by increasing their power, to export their image outside the country and outside Europe and seduce other supporters and have more admirers in the world. In the same order of ideas Nike stays a partner to preserve because of the 50/50 contract that unites the 2 companies. Indeed, the club signed with the most famous brand in the area of the sport a contract which allows it to make climb its figures.
Finally, it is indispensable to decrease players’ level of interest to prevent them from using and abusing of their power as they think best, and to make decisions which could turn out harmful for the club. They risk not respecting any more the authority and the decisions of the manager which could dangerous. ———————– Staff MUTV Broadcasting Company Little shareholders SFX (players’ agents) Other customers (foreigners) Competitors Vodafone EUFA/FIFA Big shareholders NY Yankees Nike Sir Alex Ferguson
Peter Kenyon Martin Edwards Board of directors Working class supporters (customers) Members of G14 group Players Medias Actual Situation Power Level of Interest Low Low High High Staff MUTV Broadcasting Company SFX (players’ agents) Little shareholders Working class and other supporters Competitors Sir Alex Ferguson Vodafone Nike NY Yankees Players EUFA/FIFA Big shareholders Medias Peter kenyon Martin Edwards Members of G14 group Board of directors Preferred Situation Power Level of Interest Low Low High High