Mufc Case Study - Strategic Management
Strategic Management – Case Study #2
Manchester United FC
Question #1
The Manchester United club can adopt different ownership types as follows:
Private owned company – This is the current ownership form. In terms of expectations we find it appropriate to distinguish between a family owned business like MUFC was before 1991 and a company owned by investor groups such the Glazers. It is more likely that a conflict in expectations would arise in the latter. As in the case of MUFC, investors would seek to maximize profits by “turning the club into a product” while taking significant debts which puts the club’s future risk. This may result in a conflict with the fans expectations which don’t care for profit but for performance and tradition. Whereas if a family owned the club their expiations might be more similar to the fans’ expectations.
Public limited company- The goal of a PLC is to maximize profits. So a similar conflict of expectations might arise as in the private owned company case. However, the gap can be somewhat mediated if fans acquire shares of the company as was the case for MUFC.
Ownership by members – In this form the club is owned by members. In this form the clubs are not businesses per se, thus the differences in expectations are much less acute.
Rich Benefactor- In this form a rich tycoon provides the club with funds with zero cost. In this case supporters’ expectations of keeping the clubs tradition and culture might conflict with the benefactor’s expectations.
Question #2
|Power |Interest |
| | |Low |High |
| |Low |foreign customers, Government,|Sponsors, Media |
| |
Manchester United FC
Question #1
The Manchester United club can adopt different ownership types as follows:
Private owned company – This is the current ownership form. In terms of expectations we find it appropriate to distinguish between a family owned business like MUFC was before 1991 and a company owned by investor groups such the Glazers. It is more likely that a conflict in expectations would arise in the latter. As in the case of MUFC, investors would seek to maximize profits by “turning the club into a product” while taking significant debts which puts the club’s future risk. This may result in a conflict with the fans expectations which don’t care for profit but for performance and tradition. Whereas if a family owned the club their expiations might be more similar to the fans’ expectations.
Public limited company- The goal of a PLC is to maximize profits. So a similar conflict of expectations might arise as in the private owned company case. However, the gap can be somewhat mediated if fans acquire shares of the company as was the case for MUFC.
Ownership by members – In this form the club is owned by members. In this form the clubs are not businesses per se, thus the differences in expectations are much less acute.
Rich Benefactor- In this form a rich tycoon provides the club with funds with zero cost. In this case supporters’ expectations of keeping the clubs tradition and culture might conflict with the benefactor’s expectations.
Question #2
|Power |Interest |
| | |Low |High |
| |Low |foreign customers, Government,|Sponsors, Media |
| |