Formula 1 Constructor - Choose a Team - Ferrari
The resources, capabilities and attributes that are required for the success in Formula One (F1) can be looked on a number of dimensions taking into consideration the unique and fast paced context of Formula One. F1 is a highly competitive industry and based in a rapidly changing environment, which has been defined by Porter’s five forces (Appendix One). Key resources within F1 are both tangible and intangible and can be considered under the following broad categories:
Physical Resources:
The car and its components such as engines and chassis are vital resources but the technological advancement determines its ability to win races. Test Tracks are also vital physical resources both in the competitive context and in the ability to test cars, the location of such tracks may also be an important factor. Own testing and development equipment is also important for technological advancement and knowledge gain. Factories are also an important physical resource for constructors.
Financial Resources:
High start up costs and continued running costs involved with the sport, result in the need for high capital investment, for example a medium sized constructor needs £30-£50 million capital investment as a basis for being competitive. The majority of team finance is generated through sponsorship - a lucrative sponsorship deal can help improve a team’s level of performance through cash injection alone. Fans are a huge resource for the sport as they act as a huge funding society for Formula One. At present tickets cost upwards of £330 per race and for VIP access £1700. Revenue is also provided by prize money from winning championship points and through shareholders within each constructor.
Human Resources:
Team Principles are an important aspect to every constructor. Initially, teams were managed by the founders themselves, but as time has moved on the emphasis has shifted to managers and their ability to run the team in a business manner. The intangible resource of their
Physical Resources:
The car and its components such as engines and chassis are vital resources but the technological advancement determines its ability to win races. Test Tracks are also vital physical resources both in the competitive context and in the ability to test cars, the location of such tracks may also be an important factor. Own testing and development equipment is also important for technological advancement and knowledge gain. Factories are also an important physical resource for constructors.
Financial Resources:
High start up costs and continued running costs involved with the sport, result in the need for high capital investment, for example a medium sized constructor needs £30-£50 million capital investment as a basis for being competitive. The majority of team finance is generated through sponsorship - a lucrative sponsorship deal can help improve a team’s level of performance through cash injection alone. Fans are a huge resource for the sport as they act as a huge funding society for Formula One. At present tickets cost upwards of £330 per race and for VIP access £1700. Revenue is also provided by prize money from winning championship points and through shareholders within each constructor.
Human Resources:
Team Principles are an important aspect to every constructor. Initially, teams were managed by the founders themselves, but as time has moved on the emphasis has shifted to managers and their ability to run the team in a business manner. The intangible resource of their
References: Laura * Proof reading: Laura * Printing: Aashir * Compile appendix: Aashir, Laura, Vanessa