Differentiating Between Market Structures Essay

Kudler Fine Foods is the brain child of Kathy Kudler. She envisioned a one stop gourmet food store and has grown to three locations to date. She continues to maintain direct control over large bulk purchase order items, stringent customer service policies, and hiring. This paper discusses how the organization competes in the marketplace and the strengths and weaknesses of the company according to the marketing surveys their customers completed. The following also discusses which market structure best applies to the organization and how that structure positively and negatively affects the firm, how the effectiveness of the competitive strategies in the market structure affect the organization’s long-term profitability, and what competitive strategy recommendations may be made. How Kudler Competes Kudler Foods competes on a differentiation strategy. While the advertising is similar to the average grocery stores in the area, the advertising is not built on a â€Å"loss leader† criteria. Kudler Foods is one of only a few competitors in Orange County that offers a complete gourmet shopping opportunity. The company considered the greatest competition is the Cardiff Seaside Market and is in direct competition to the Encinitas and Del Mar locations. If left unchecked and depending on how effective the new managers are at strategic combinations, the competing store could negatively impact Kudler Foods market share. Something like this could decimate Kudler Foods’ customer base. Active assessment of strategy strengths and weaknesses is necessary to mitigate the challenges of this possibility. Strengths and Weaknesses Kudler Fine Foods marketing surveys were a clear indication of their strengths and weaknesses. Customers were happy with the displays and lay-out of the store. Customers were happy with the merchandise they purchased, even though they were not happy with the value they received for their money. Customers were practically split down the middle about how they felt about the customer service they received. That sentiment is not a reflection on how knowledgeable the customer service person was since customers overwhelmingly voted positively when asked that question. Overall, the customers felt good about the organization, how the company is branding itself as a premier gourmet market, the quality of the products and the knowledge level of the service representative. Best Market Structure The best market structure for Kudler Foods is oligopoly. Oligopoly, as defined by Colander (2010), â€Å"A market structure in which there are only a few firms and firms explicitly take other firms’ likely response into account; there are often significant barriers to entry.† Oligopoly requires strategic thinking. A real life company that has the same market structure as Kudler Foods is Whole Foods Market. Whole Foods Market carries specialty, gourmet food items, meats, wines, cheeses, and bulk food stuffs. Whole Foods Market also offers food and wine tastings, and attracts a wealthier clientele who fancy themselves as â€Å"gourmet foodies.† A large portion of their inventory is organically produced. Their customer service levels are a point of great pride as they know it is not just the food but the service that keep customers coming back. (Whole Foods Market, 2013) There are however, positive and negative effects of this market structure. Positive and Negative Effects A negative effect of oligopoly is that it is largely inefficient – economically and in productivity. What this means is that oligopolies do not produce in the most inexpensive manner nor do they produce the right amount of products according to demand. A positive effect of this market structure is the overall profits. These profits, for the growth purposes of Kudler Foods, could be used for technological advances so they may offer improved products, costs, prices, and allow them to stay ahead of the competition now and in the future to maintain long term profitability. Recommendations A firm recommendation is further train employees to enrich operations and increase customer service. Employees are certainly knowledgeable, as per the marketing survey results, but could use some additional training in increasing customer service skills. This could be accomplished by hiring an expert in the field to come in and teach service skills to the employees. To ensure the skills are used, Kudler Foods could tie a small part of the employee’s compensation to good reports from customers. In addition, Kathy Kudler is making plans to introduce new e-commerce capabilities as well as a catering link on the new website slated for launch in June 2004. These steps will add automation to inventory ordering and reach potential customers outside of the geographical area they currently service (â€Å"Kudler Fine Foods | Administration: Strategic Plan 2003†, 2013). The use of e-commerce will showcase strengths and perhaps give sustained competitive advantage. This new automation will also allow cash flows to go to the geographical expansion Mrs. Kudler wishes to achieve rather than operations functions. Conclusion The main point of this paper was to offer a market analysis for Kudler Foods and offer recommendations based on that analysis. Commitment to strategic plan, both in formulation and implementation are vital. â€Å"As with any plan, simply formulating a good strategy is not enough. Managers also must ensure that the new strategies are implemented effectively and efficiently (Bateman & Snell, p. 150, 2011).† Given the current circumstances, Kudler Foods has an excellent opportunity to maintain the positive cash flow it has been earning. If Kudler Foods will accept that strategy formulation, implementation, and technological advances are essential to securing future significant returns, Kudler Foods will ensure continued success by creating a connection between increased customer service, an internet presence, automated ordering, customer buying habit tracking, and customers’ lives. The sustainable competitive strategic advantage that Kulder Foods wishes to maintain and elo ngate will most certainly be realized. References Colander, D.C. (2010). Economics (8th ed.). Retrieved from The University of Phoenix eBook Collection database. Bateman, T. S., & Snell, S. A. (2011). Management: Leading & Collaborating in a Competitive World (9th ed.). Retrieved from The University of Phoenix eBook Collection database Whole Foods Market, Mission & Values (2013) Retrieved from http://www.wholefoodsmarket.com/mission-values Kudler Fine Foods | Administration: Strategic Plan 2003 (2013). Retrieved from https://ecampus.phoenix.edu/secure/aapd/CIST/VOP/Business/Kudler2/intranet/strategic-plan.asp

Uefa & Football Governance

Jaime Andreu-Romeo – Head of European Sport Unit, European Commission Leonardo Nascimento de Araujo – AC Milan and FIFA World Cup Champion ‘94 John Barton – T. E. A. M. Marketing Genevieve Berti – Communications Manager of G-14 Marco Brunelli – Lega Calcio and our tutor Richard Bunn – TV and Media consultant Michele Centenaro – Senior Product Manager, Club Competitions, UEFA Jerome Champagne – Deputy Secretary General, FIFA Jean-Paul de la Fuente – Founding Director, Deureka Peter Gillieron – General Secretary, Association Suisse de Football Michel Guenaire – Head of Sport-Law Division, Gide, Loyrette et Nouel, Paris Rodolfo Hecht – President, Media Partners Group Jonathan Hill – Communications and Public Affairs Liaison to the European Union, UEFA GianniInfantino – General Counsel Commercial Legal Services, UEFA Thomas Kurth – General Manager of G-14 Antonio Marchesi â€⠀œ Senior Partner, Deloitte and Touche Sports, Italy Lars-Christer Olsson – Director of Professional Football and Marketing, UEFA Denis Oswald – IOC member and President of FISA (International Rowing Federation) Alex Phillips- Senior Product Manager, Professional Football, UEFA Arnaud Rouger-Conseil Juridique, LFP (Professional Football League – France) Freddy Rumo- President of Executive Board of Neuchatel Xamax FC and former UEFA Vice President Jefferson Slack- Director, Inter Active, FC Internazionale Milano Stefan Szymanski – Professor of Economics, The Business School, Imperial College London Alain Rumpf – Coordinator of the Professional Cycling Council, International Cycling Union (UCI) Additionally we would like to thank UEFA -Division of Services, especially Barbara Rodel, Division of Professional Football and Marketing, especially Marion Haap, Lucia Castelli at Atalanta Bergamasca Calcio, Ruth Beck-Perrenoud from the Olympic Museum for her help in research, our professors at DeMontfort University (Leicester, UK), SDA Bocconi (Milan, IT) Universite de Neuchatel, (Neuchatel, CH), the CIES and FIFA, sponsor of the International Master, especially Vincent Monnier. Finally we thank our families and friends for their patience, support and inspiration, especially during the last phase of this project. 5 PROLOGUEThe headlines of sport news sections have been filled with tension-riddled declarations from football club managers toward football’s organisers about too many matches, national team call-ups at key points in the season and concern over players victim of injuries during â€Å"useless international friendlies. † The response is sometimes swift, sometimes harsh, but always illustrative of the conflicts between the members of the so-called football family. We recognise that all families have conflicts, some tragic, others trivial, but we were struck by the intensity of this banter internally sewing a frown to football’s countenance while still outwardly presenting a naive smile. We began to analyse the relationships and gradually realised that there were some family members with serious concerns who were not addressing each other.We heard the uproar from major club figureheads when UEFA took the nth decision to change its prize event, the Champions League. We also felt the inescapable force of commercialised-globalisation when Brazilian international players flew half-way across the world to China for 90 minutes of football worth US$ 1 million. We shed a tear when Italian legend AC Fiorentina were dissolved and Angelo DiLivio, a FIFA World Cup finalist, voluntarily descended to the fourth and final professional division and set out to paint the second Florentine renaissance, this time named Florentia Viola. We love football and we have a great interest to see the beautiful game continue to flourish to the ends of the Earth.Thus when we saw these unresolved dissonances spreadin g through the game, we made the decision to throw ourselves into the melee and clarify who the actors were, what their interests were and how they were relating to each other. After surveying the field we chose to focus on the clubs and UEFA, and then more specifically on the group of clubs creating the most commotion, the G-14. Their name seemed to pop up everywhere from the headlines, to the European Commission but never from UEFA. We found the door, brushed aside the coats and stepped into the magic wardrobe of UEFA, G-14 and European Football. . . 6 INTRODUCTION I. Aim The final aim of this project is to propose some adjustments to the current governance model of European football in order to address the conflicts arising from the pressures of the modern sport.In order to do that we structured our research to answer the overriding question of â€Å"How do international sport governing bodies adapt and respond to the pressures of lobby groups? †, looking specifically to th e case of UEFA and G-14. With the overriding question in mind, we structured our project to answer the following questions: 1. What are the conflicting circumstances within the governance of European football that are bearing the rise of such lobby groups? 2. How efficiently are those conflicting circumstances being addressed by the pertinent actors? 3. What are the main risks to the sport that can arise from the process in which the conflicts are being managed, and how can those risks be mitigated? II. Paper Structure and Scope The tructure of this paper is sub-divided in five chapters: In the first chapter we present the field of play and provide some background information on the stage and scenario in which the main actions take place. We will demonstrate the current governance structure of European football, briefly touch on the peculiar dynamics of the football industry, present the major relevant stakeholders, their interests and inter-relationships and illustrate the complexi ty of the competition calendar of professional football in Europe. This information will be relevant for the complete understanding of the issues treated in the paper. The second chapter presents the major actors involved in the production of the spectacle of European football.Although we recognize that the media and the major sponsors are important enablers in the distribution and popularisation of European football and its influence over the shaping of the game has been growing along the years, we have chosen to focus the scope of our analysis on the clubs (and with them, the G-14), the national associations, the leagues and UEFA, as we believe those are still the most influential actors in the design of football as a product. After presenting the major actors, in the third chapter we analyse the convergences and divergences of interests among them, the main areas of conflict and the potential risks that such conflicts can impose to the future of European football. We then take a break at chapter four and look outside European football in the search for examples of conflict management at similar sporting contexts. Our objective with chapter four is to learn some lessons that could be applied in the process of defining our final recommendations for the present case.Finally, in chapter five we present a model with recommendations for adjustments to the current governance of European football, with the aim of minimizing the conflicts and tensions among the members of the Football Family. 7 Although UEFA has a broad range of activities touching on every discipline of association football in Europe, the scope of this paper is limited to elite professional men’s football, as this is currently the only form of the game that has achieved significant commercial potential. And it is not until significant flows of money begin to pour over a sport that the major conflicts among different stakeholders start to surface. III. Research Methods and constraints Our res earch was carried out during May and June 2003. It has been structured around a hypothesisdriven approach, a methodology commonly used by management consulting firms.The approach consists in five major steps as shown in Figure I: Figure I – The hypothesis-driven approach 1 2 3 4 5 Overriding question Issue tree Hypotheses Research Analyses & Conclusions 1. Overriding question The Overriding question is the ultimate question the project aims to answer. As mentioned before, we have defined it as: â€Å"How do international sports governing bodies adapt and respond to the pressures of lobby groups? † 2. Issue tree The second step consists in identifying the relevant issues that need to be addressed in order to answer the overriding question. The issue tree is a hierarchical structure of questions that will be answered during the project leading to the final answer to the overriding question.For this paper we have defined three main issues and a set of 24 sub-issues in two different levels as shown in Figure II. 3. Hypotheses Once the issue tree has been defined we have generated the hypotheses for the project. The hypotheses are tentative answers to the issues based on the authors’ intuition and background knowledge on the subject. They may be proved right or they may be discharged after the research and the analyses are conducted. The importance of generating a sound set of hypotheses is that it provides the group with a comprehensive overview of the project’s main messages at its very beginning. 4. Research In this step we have designed the analyses that needed to be conducted to prove or discharge our hypotheses.Based on that set of analyses, we defined the input data to be gathered and determined their potential sources. 8 Input data was collected through the following methods: †¢ Preliminary interviews with representatives of UEFA and G-14 to validate the soundness of the initial list of hypotheses. †¢ Interviews with re presentatives of sport governing bodies, football clubs, national associations, national leagues, governmental bodies, sports marketing companies, media companies, lawyers, economists, players and industry analysts to capture the different views on the subject and its potential developments. †¢ Review of official documents provided by G-14 and UEFA, besides books and papers from academics on matters concerning the scope of our project. Search and review of websites of official governing bodies, clubs, and specialized sport press for relevant news and archive materials. †¢ Final interviews with UEFA and G-14 to discuss and validate our preliminary findings. 5. Analyses and conclusions After finishing the process of data gathering we have conducted the analyses necessary to prove or discharge the hypotheses and have drawn our final conclusions. Research Constraints Although the hypothesis-driven approach adds focus and drive to the project, speeding up the problem solving pr ocess, this project was conducted along six weeks of full-time work and there is some limitation to what can be achieved in such a reduced time frame.Notwithstanding, we have been fortunate by the fact that some of the major exponents in the European football industry were extremely collaborative and candid about the subject, allowing us to conduct twenty three high-level interviews across four different countries covering representatives of and experts on all main stakeholders involved in the subject. Precisely because of time constraints, we have not been able to directly interview executives from TV companies or sponsors, nor have we been able to conduct quantitative analyses on the opinion of fans as far as the issues touched by this paper are concerned. Our conclusions with regards to those groups of stakeholders are based on interviews with industry analysts and any available research material published on the subject.With respect to research materials we have been able to obt ain the majority of information needed to prove or discharge our set of hypotheses, perhaps with the exception of conclusive empirical data about the determinants of demand for sport. This would be particularly useful in allowing the design of more precise scenarios for the future of the game, and further research in this area might prove valuable. 9 Figure II – The original project issue tree (as designed in the first group meeting) Overriding question How do international sport governing bodies adapt and respond to the pressures of lobby groups? The case of UEFA and G14 Issue A What are the conflicts within the internal structure of European Football and why are they arising? A1 What are the interests of UEFA? A2 What are the general interests of the clubs? A3How do those interests interplay? A4 What additional factors could be creating / amplifying conflicts? A1. 1 How does UEFA pursue those interests? A2. 1 How do top clubs pursue those interests? A3. 1 What are the areas of convergence? A1. 2 How do those interests represent the views of the member associations? A2. 2 How do other professional clubs pursue those interests? How do amateur clubs pursue those interests? A3. 2 What are the areas of divergence? A2. 3 Issue B How efficiently are those conflicts being managed? B1 How have past conflicts been managed? B2 What are other examples of conflict management in sports? B3 What lessons can we learn from those examples? Issue CWhat risks can arise for the sport from the management of such conflicts and how can those risks be mitigated? C1 What if UEFA rigidly fixes its position against the Lobbying group? C2 What if UEFA adopts a reactive role towards the conflict? C3 How can UEFA adopt a proactive model to solve conflicts? C1. 1 What are the threats for UEFA coming from G-14? C3. 1 What are the most sensitive areas to be considered by this model? What are the key success factors for the model? C1. 2 What are the threats for G-14? C3. 2 C1. 3 What w ould be the consequences of those threats if carried out? C3. 3 How should the model be designed? 10 CHAPTER ONE: BACKGROUND 1. 1. 1. 1. 1. STRUCTURE OF EUROPEAN FOOTBALL GOVERNANCE AND FOOTBALL – THE PYRAMID STRUCTUREThe governance of association football resembles a pyramid where each layer takes on different responsibilities in different geographical scope. The formation of this pyramid has historical roots in the early stages of organized football in Britain and it has not been a uniform process. As Britain changed from an agrarian to an industrial society in the late 18 century, the games played in the open fields of the countryside were adapted to suit the narrow streets and hard surfaces of the new urban communities. The leisure time determined by sun, seasons, and feudal obligation was replaced by the much more restricted leisure hours decreed by the artificial light of the factories and the needs of the owners.Improvements in roads and transportation allowed games to be played outside the local village, and as steam trains started to link the ever growing towns of Britain, it became possible to play on a national basis the games that the middle class favoured and promoted. This expanding scope involved agreement on rules and the formation of a national governing body. 1 th And that is where the pyramid begins to be formed. With the spread of the sport around the world, the pyramid started evolving from a local and national to an international scope and finally reached its current form as shown in Figure 1. 1: Figure 1. 1: The pyramidal structure of European football FIFA UEFA National Leagues National Associations REGIONAL ASSOCIATIONS CLUBSThe clubs The clubs are the basic cell and the foundation of the pyramid. Originally founded as local associations their initial objective was to offer the local community the possibility of engaging in the sport, thereby promoting the idea of â€Å"sport for all†. With the introduction of a regular c ompetition, The FA Challenge 1 MURRAY Bill, The world’s game – a history of soccer, University of Illinois Press, 1998, p. 2 11 Cup in 1871, spectator crowds in England began to increase dramatically and in 1901 a crowd of 110,820 turned up to see Tottenham Hotspur and Sheffield United contest the final of the trophy . These crowds were increasingly giving birth to the popularisation of football as a spectator sport.Today, the main objective of top professional football clubs has shifted from the offer of opportunities to engage in the practice of the sport, to the offer of the spectacle of the game and all the attached psychological, emotional and social benefits for the fan. But the clubs still remain the basis and the primary link of contact with the communities. Regional associations Regional associations form the next level; although this form of association is not present in all countries. Clubs are usually affiliated to these organisations. Their scope of action is limited to a region within a country in which they are responsible for organising regional championships or coordinating the sport.National associations The first national association to come into scene was the English Football Association, or simply the FA as it is known today. It emerged from the London FA that became virtually the sole authority for the game in England after different regional associations in England came to a compromise agreement in 1877. By 1905 it had achieved the mark of 10. 000 local clubs affiliated to it. The success of the London FA in establishing its control over other regional associations came with the popularity of the Challenge Cup, instituted in 1871, a competition that is still played today. Also helping to secure the success of the dribbling game was the regular match with Scotland which began officially in 1872. 4 3 2Today, national associations besides organizing club competitions and being responsible for the coordination of a national tea m to represent the country in international competitions are also the supreme regulatory and disciplinary body of the sport within the national boundaries, although, as we will see later, they have limited autonomy and have to abide by the rules of UEFA and FIFA. By doing this they are granted a monopolistic position in the national organization of the game, as FIFA as the ultimate body in the pyramid will only recognize one association per country. National Leagues Some countries such as France, Italy or England know another form of organisation with the introduction in the structure of national leagues. The origin of leagues dates back to the England of the end of the 19 century.In 1885, after a series of complaints about athletes accepting money and the creation of committees to deal with them, followed by threats of serious punishments, the FA legalized professionalism. This meant that players had to be given a regular income. The Challenge Cup was still the main competition. Be ing a knock-out competition, even the best teams could be eliminated in an early round being left with nothing to do. The answer was the Football League. The league was 2 3 4 5 5 th : Ibid, p. 9 Ibid, p. 6 Ibid, p. 7 The elite club competitions are respectively organised in these countries by the ‘Ligue Nationale’, ‘Lega Calcio’ and the ‘Premier League’. 12 ade up of selected teams that agreed to play one another on set dates, on a home and away basis, and promised to field their strongest teams and to give league matches preference over all others. The individuals engaged in the discussions about the new league were essentially self-made men, small business owners and industrialists who came from a social category different from that of the men of the FA. With the FA watching anxiously, discussions were held by those in favour of the league. On 8 September 1888 the new football league kicked off competition with twelve teams. A constitution wo uld be drawn up determining issues such as points scoring system, how to share the gate money, and later, a system of promotion from and relegation to a second division.According to its founder and guiding spirit, the Scottish-born Birmingham businessman William McGregor, the aim of the league was to protect the interests of the clubs taking part in its competition. He openly declared that â€Å"the league should never aspire to be a legislating body†¦ by the very nature of things the League must be a selfish body. † The English Football League conceded the right of the FA to control football in all areas but the organisation of league competition. This meant that the FA was left to control the Challenge Cup, internationals, amateur football and certain matters concerning the rewards and disciplining of the professionals. 6Today, the relationship between national leagues and national associations throughout Europe is very similar to the one verified in England in the lat e 19 th century. While the national association is responsible for the control and development of all aspects and disciplines of football within the national boundaries, the league’s main interest is the commercial development of its major product, a league competition. Although there are tensions from time to time, the two bodies co-habit in relative peace given their share of common interests on the game. UEFA The next level of the pyramid is formed by the continental confederations, or more specifically in the case of Europe, UEFA – The Union of European Football Associations. As the name suggests, UEFA is formed by 52 national associations .It is the governing body of football on the continent of Europe and has as its core mission to safeguard the development of European football at every level of the game and to promote the principles of unity and solidarity, as we will detail later. Along the same lines of the national associations UEFA enjoys a monopolistic posi tion on the organisation of the game in Europe, guaranteed by the pyramid structure. It is relevant to notice that unlike the reality at the national level, where a league takes from the national association the responsibility of organizing and commercially developing an elite competition among clubs, the figure of the league does not exist at the continental level. The task of organizing and commercialising European club competition falls into UEFA’s direct jurisdiction.FIFA FIFA, is the supreme authority of football in the world. Its creation, in 1904, precedes that of the continental confederations, and thus, its membership structure is also formed by national associations. 7 6 7 MURRAY Bill, The world’s game – a history of soccer, University of Illinois Press, 1998, p. 11 See a complete list of UEFA’s member associations at appendix a. 13 Technically, the continental confederations, like UEFA, are not members of FIFA, but are recognized bodies and hav e the right to elect the vice presidents and members of FIFA’s Executive Committee. FIFA’s purpose is to promote and develop the game of football throughout the world, and to be the uardian of the regulations of the game. Unlike national associations, national leagues and continental confederations, FIFA currently does not organise club football competitions, although it regulates over matters that impact club football reality, such as transfer systems, and the coordinated international calendar. FIFA’s activities as far as competition organisation is concerned are currently limited to international competitions among national teams. FIFA is responsible for holding the whole pyramid together. The ownership of the FIFA World Cup, the most important single sporting event in the world, and a large and universal membership base are its main sources of power.By making use of regulations such as the need for a national association to be a member of a continental feder ation for two years before being granted membership to FIFA , and by obliging continental confederations to comply with and enforce compliance with the FIFA statutes, regulations and decisions, and to ensure that international leagues or any other such combination of clubs or leagues shall not be formed without its consent and approval of FIFA , or by prohibiting affiliated national associations and their clubs to play matches or entertain other sports contacts with associations which are not affiliated to FIFA or with clubs belonging to them without FIFA’s consent , it guarantees that the layers and the monopoly of the pyramid in the organisation of football are respected. 1. 1. 2. THE EUROPEAN FOOTBALL INDUSTRY 11 10 9 8Definition of the Football Industry Many people resent the use of the term ‘business’ to describe the activities performed by the main actors in the European football scenario. However, it is undeniable that European football has undergone an ac centuated process of commercialisation, especially in the last fifteen years, which has brought significant amounts of money into the game. Instead of engaging in an emotional and semantic discussion to determine if football is a game, if it is a business or if it is as much a business as it is a game, we will define as football business the group of commercial activities performed by the actors in the football industry, and we will define as football industry the group of legal entities whose commercial activities are rooted in the game of football.However, such a definition of the football industry is a very broad one and for the purpose of this paper it needs to be narrowed down as proposed in Figure 1. 2. 8 9 10 11 FIFA has currently 204 member associations (one per country), which represents a larger membership base than the UN. FIFA Statutes, art 4, par. 1 FIFA Statutes, art. 9, par. 3 FIFA Statutes, art. 57, par. 1 14 Figure 1. 2 – The structure of the football industr y12 Sports Industry Football Other Sports Sporting goods Facility dependent sports services Sport consultation services Spectacle sport Hybrid Sport Participant Sport Club Football National team Football Participant services Spectator services Sponsorship services Media servicesLicence services Scope of this paper Outside the scope of this paper The product-based typology proposed in Figure 1. 2 divides the sport industry into three main segments: Sporting goods, Facility dependent sports services and Sport consultation services. †¢ Sporting goods: companies producing apparel, shoes, equipment, team and/or league merchandise, ‘sport’ licensed products. Examples of companies in this segment include Nike, Adidas and Reebok. †¢ Sport consultation services: companies supplying advice in areas such as management, medical, design, building and maintenance, programming, among others. Examples include IMG, Octagon, and InFront. Facility dependent sports services: orga nisations offering sport as their end product be it as spectacle (matches, competitions) or as access to participation. This segment, like the others, can be further subdivided in three categories: spectacle, participant and hybrid sport. – Spectacle sport: the most prominent feature of organisations in this category is the ability to generate substantial revenues directly or indirectly from spectators. Here, athletes are usually professionals. Examples of organisations in this category are Manchester United, Juventus and the English Premier League. 12 Adapted from WESTERBEEK & SMITH, Sport Business in the Global Marketplace, Palgrave, 2003, p. 87 15 Participant sport: this is the category of entities providing opportunities for people to engage in sporting activities, usually on a non-professional basis, like gyms, community sports centres and amateur sport clubs. – Hybrid sport: in this category, sports organisations offer a mix of spectacle and participant sport. As Westerbeek and Smith 13 point out, governing bodies are likely to be hybrid sport organisations as they are charged with developing a mass participation base for the sport with the ambition of securing its longevity, while encouraging and promoting the few outstanding athletes that can perform in elite spectacle sport, providing the sport with the exposure so essential to its popularity, while developing the basis for spectacle sports’ revenue streams.Once the segmentation is understood, we can then define the European Football Industry in this paper as the group of legal entities acting in the facility dependent sports services, specifically within the boundaries of the spectacle and hybrid sport category in the territory covered by the fifty two member associations of UEFA. It is important to remark that this industry is built on two main pillars, club football and national team football, that ultimately have to â€Å"share† part of the same resources: top-level pla yers, spectatorship, calendar time, among others. Dimension and Growth of the European Football Industry There is no reliable data about the size of the European Football Industry as defined above.Deloitte & Touche estimates that, in the season 2000/2001, it should be close to national team football in Europe is in the range of 90-10% respectively. 15 10 billion. 14 A possible breakdown of this number is shown in Figure 1. 3. We reckon that the split between club football and Another important consideration is the fact that domestic football (in top and lower divisions) is by far the most important segment of the industry. As we can see from Figure 1. 3, the lion’s share of the industry is represented by top-division club football in the domestic leagues, amounting to 6. 6bn, thereof the so-called ‘big-five’ leagues (England, Italy, Spain, Germany and France) dominate 78%.Put in perspective, those numbers are not very impressive, as the entire European Football I ndustry would not even feature in the ranking Fortune Global 500 16 in 2002. What is impressive though, is the consistent fast pace with which this industry has been growing over the past 10 years. The top-division clubs at the ‘big-five’ leagues all grew at similar rates from the mid-1990s to 2001 – between 18% to 24% per annum, 17 while UEFA’s consolidated revenues grew at an impressive rate of 29% per annum 18 during the nine-year period comprised between the seasons 1992/1993 and 2001/2002 mainly 13 14 15 WESTERBEEK & SMITH, Sport Business in the Global Marketplace, Palgrave, 2003 Deloitte & Touche Annual Review of Football Finance – June 2002 – p. 16 A priori, by looking at Figure 1. , this proportion might sound counter-intuitive but we must not forget that a share of UEFA’s and the European federations’ revenues is based on club football. The Fortune Global 500 ranks the 500 largest companies in the world based on their g lobal revenues. In the 2002 ranking, Wal Mart appears as number 1 with global revenues around US$220 billion, while Takenaka, a Japanese company in the construction business ranks 500 with global revenues slightly above US$10bn. DELOITTE & TOUCHE Annual Review of Football Finance 2001/2000 – p. 4 UEFA’s consolidated revenues including amounts paid beforehand – UEFA CEO Annual Report 2002 p. 33 16 17 18 16 riven by the growth of the UEFA Champions League as we will show later. And although these growth rates are recently giving sign of slowing the pace, we believe it is more a matter of an internal adjustment of the industry than the apocalyptical actualisation of the burst of a bubble as many analysts like to put it. Most of the economic fundaments supporting the growth of the European Football Industry are solid, as notwithstanding the latest downsizing in the value of broadcast rights paid for some properties and the breakdown of companies like ISL and KirchMe dia, we do not see signs of an actual decrease in the demand for European Football.Much on the contrary, as we have seen that the TV audience for the 2002/03 UEFA Champions League grew by 9% in relation to the previous year, meaning that the competition produced an average live audience of 46 million viewers per match-week in the larger markets. 19 Figure 1. 3 – Estimated market size of the European Football Industry 2000/2001 billion 1. 3 1. 2 6. 6 ‘Big-5’ Leagues 10. 0 0. 7 0. 2 10 year average 24% 17% 14% 13% 10% 78% England Italy Spain Germany France growth > 20% p. a. Top division domestic club football1 Lower division domestic club football3 UEFA Club Competitions2 Annualized EURO Cup2 Sources: 1) Deloitte & Touche, 2) UEFA , 3) Authors’ estimatesRevenues of National Associations, Leagues, UEFA, others3 Total1 It is important to notice though, that if the industry has experienced significant growth in revenues in the last decade, profitability has not kept pace. This is mainly because of the rise in the spending on players in a phenomenon known as the ‘prune juice’ effect, which refers to the tendency for revenues generated by football clubs to simply pass through the clubs’ accounts on the way to players’ pockets. Just to illustrate that point, as already mentioned, the consolidated revenues of the top-division clubs in the ‘big-five’ leagues grew at an annual rate between 18% and 24% between the seasons 1995/96 and 2000/01.In the same period the ratio wages/revenues went from 47% to 60% in England, and from 57% to 75% in Italy, just to mention two of the major markets. profitability 21 20 The result is a plunge in the 23 of the industry in the major markets 22 with the most accentuated cases being Italy going from –1% to –19% in six seasons and Spain going from –7% to –28% in four seasons. 19 20 21 22 23 UEFA’s champion audience, Sportbusiness. com, June 3 2003 Analysis of the authors based on the Deloitte and Touche Review of Football Finances – 2002 Measured as Operating Profits / Revenues The exception is Germany that managed to keep its profitability between 8% and 10% during the period There are no available date for Spanish top-division clubs in the seasons 1999/00 and 2000/01 17Business Model of the Football Industry The current business model of the European Football Industry relies on four main revenue streams: 1. Match day revenues – Expenditure of fans on-site, mainly derived from gate receipts (including season tickets). 2. Media rights – Value paid by media companies to acquire the rights of broadcasting a specific sport property. 3. Sponsorship – Mainly derived from brand/name placing on team shirts and around stadia. 4. Other commercial revenues – Mainly revenues from licensed merchandise, but also includes conference and catering services. Figure 1. 4 gives an overview on the proportions of these revenue streams for a sample of domestic leagues. Figure 1. – Breakdown of top-division clubs revenue streams – 2000/01 16% 31% 18% 16% 42% 34% 40% 25% 54% 39% 51% 45% 51% 20% 18% 20% 12% 4% 41% 43% 13% 30% 17% 9% 15% 22% 14% 18% 15% 12% 13% England Italy Spain (97/98) Key: Germany France Portugal Netherlands Norway Matchday Broadcast Sponsorship (includes all commercial revenues for England) Other commercial Source: Deloitte & Touche As we can see from the graph above, TV is in general the single largest contributor to clubs’ revenues in the ‘big-five’ leagues. According to Deloitte & Touche in the season 2000/01, TV responded for 2. 4 billion, or 46% of the 5. 2 billion total revenues of the top-division clubs in the ‘big-five’ leagues.However, this proportion will vary significantly according to the size of the TV market in which the club is located. There is a clear difference between the relevance of TV monies for the top-division clubs in the ‘big-five’ leagues and the top-division clubs in other mid-size or small leagues like Portugal, Netherlands and Norway, as shown in the graph. The Fan: The Heart of the Football Industry Although the importance of television and sponsors is clear in the current business model of the European Football Industry, which might lead us to conclude that those are the most important actors in this industry, the dynamics of the industry rely ultimately on the interest of spectators. Figure 1. shows a simplified map of value relationships between actors in this industry. 18 Figure 1. 5 – Summarized Value Chain of the Football Industry Simplified Simplified 2 Leagues Sponsors ? Clubs B C 1 3 ? Television A Football Fans Population Note: For the sake of simplification this map does not consider some important stakeholders in the Football Industry such as governing bodies and federations, players, clubs’ shareholders, national teams, a mong others The cornerstone of value for the Football Industry is relationship – between fans and the clubs. In this relationship the clubs supply the fans with the game and all the emotional, social and psychological benefits attached to it.The fans, in turn, provide the club with financial resources in the form of gate receipts, season tickets or membership fees and purchase of licensed merchandise besides the emotional association, support, loyalty, exposure, among other non-tangible benefits. Relationship illustrates the fact that clubs need the league structure to create the on-field competition environment required by fans. And the quality of the competition, measured in the quality of teams taking part in that competition and in the level of competitive balance, is one of the most important drivers of demand for football. This relationship between clubs and leagues 24 is one of the ell-known peculiarities of the Football Industry. In any other industry the ideal object ive of the players would be to achieve a monopolistic position driving competitors out of business, whereas in the Football Industry this is not only impossible, but also not desirable, since clubs need to cooperate for the joint-production of the game. However, there are inherent conflicts between teams since the league structure also determines a team’s individual share of industry profits. Relationship reflects the fact that part of the football fans are not necessarily attached to one specific club but have overall interest in a particular competition.The marketing strategy of the UEFA Champions League has the benefit of strengthening this link eventually intending to increase the share of the population interested for European football regardless of a particular team allegiance. In the left side of the map we have television companies. Traditionally, revenues of free-to-air television companies are based on advertisement from sponsors. In order to attract sponsors, 24 Le agues or whatever entity responsible for organising a football competition 19 television companies must be able to attract audience, and this is done by offering content. That is represented by relationship A. Television companies offer content to the public in the quest for an audience.By getting an audience, television companies become attractive to sponsors. That is shown in relationship C. Sponsors will pay to use television as a channel to advertise their products and services to their target markets among the audience. Pay-TV companies have an incremental revenue stream. In addition to advertisement from sponsors they rely on subscription fees from consumers interested in having access to exclusive content. In both cases though, it is clear that audience is key. In markets where the interest for a particular sport captures a large share of the population, which is the case of football in the ‘big-five’ leagues, the link represented in relationships 25TV companies and sponsors realise the importance of and wish to exploit it. That is represented by and relationships ? and ?. In relationship ? , TV companies pay to acquire the right (if possible exclusive) to broadcast individual matches or competitions in the hope to attract an audience. In relationship ? sponsors pay to associate themselves with teams or leagues both as a way to get visibility to sports fans and as a way to associate their brand with the sporting brand they are sponsoring, thus exploring the goodwill present in the link between the fan and the sport. Their ultimate goal is to get the population to consume their products and services.In all cases it is simple to understand that the ultimate source of value for the Football Industry is the interest of the fan for the sport. The fan is the TV viewer, the pay-TV subscriber, the stadium spectator, and potentially the end consumer of the sponsors’ products and services. The larger the fan base and the larger its identificat ion with the sport, the higher the probability that this sport will attract the interest of TV and sponsors. Of course, the potential value of the Football Industry in a particular region will depend also on the size of the TV and the advertisement markets in that region, which in the end bear relation with the demographics of the region. Thus the focal point of he Football Industry is the football fan, 26 and that is the reason why it is crucial for clubs, leagues and governing bodies to understand what drives spectator interest for European football, in other words, what are the drivers of demand for football. Demand for Football Spectatorship Stefan Szymanski summarizes the most important factors driving fan interest for football in three classic elements: 27 Quality of the game Uncertainty of outcome (of the match and of the competition) Success of the fan’s own team 25 26 England, Italy, Spain, Germany and France There are several studies intending to qualify the footbal l fan according to different levels of commitment and interest.For the sake of this paper we qualify as football fan any person interested in the game regardless of the level of commitment. Interview with Stefan SZYMANSKI, Professor of Economics, Imperial College London 27 20 The quality of the game would touch on aspects such as the entertainment and spectacle, the aesthetic pleasure of watching the game, the quality of the visiting team. The uncertainty of outcome has two major aspects: uncertainty of outcome of the match and the uncertainty of outcome of a competition. About the uncertainty of match outcome, the review of the literature shows that generally, the closer the result of the match is expected to be, the more attractive the game will be to fans.Along the same lines fans would be less enthusiastic about a game in which the result is seen as a foregone conclusion. Furthermore this uncertainty must be preserved at all costs, as the integrity of the game is completely conn ected to the integrity of the result. 28 The uncertainty of outcome of the competition is measured in terms of competitive balance. There is general agreement that match attendance will be influenced by the closeness of the championship race. As more teams have a chance of reaching the finals or play-offs, fans will expect a close contest and anticipate high quality play. This anticipation will be reflected in a higher level of fan enjoyment and consumer utility and a boost to crowd size. 29Success of the fan’s own team implies that supporters achieve satisfaction from identifying with a winning team. Arguably, a team that consistently loses will have difficulty attracting large crowds. active supporter bases than their domestic peers. But if a winning season contributes to the increase of the commitment of the supporter base of a specific club and if the fan base, as argued before, is the principal source of goodwill for a club, it seems obvious to state that clubs, as indiv idual entities, will seek to maximize their winning ratios as a way to increase the supporter base. This practice, if successful, will eventually conflict with the element of uncertainty of outcome.The challenge for clubs and organisers of competitions is to understand the optimal combination between those three elements (quality of the game, uncertainty of outcome and success of own team) in the determination of demand for football as they frequently can conflict among themselves. Conclusion In summary, as much as we want to avoid the discussion of football being a business or a game, we must recognise that the dynamics of the football industry present some specific characteristics that make us conclude that football cannot be taken as just a regular business. These special characteristics fall mainly in three inter-related areas: 1. Football clubs are cultural and community assets with associated sporting and community objectives.There is a long and unfinished academic debate argu ing that football clubs are utility 30 That could help to explain why clubs like Manchester United or Real Madrid have larger and more 28 In that sense potential contractual clauses like the one suggested by the press in the Beckham transfer from Manchester United to Real Madrid, in which the acquiring club will pay a bonus to the ceding club based on the former’s future performances at championships at which both teams compete could allow for the public’s perception of match fixing between the two clubs in a specific scenario, which could eventually hurt long-term demand for the game. WESTERBEEK & SMITH, Sport Business in the Global Marketplace, Palgrave, 2003, p. 64 29 30Although formation of fan basis is a more complex phenomenon and depends on many other factors apart from a team’s winning record at a given time. 21 maximisers pursuing non-pecuniary objectives rather than maximisation of economic value as any other business. Sloan 31 argues that while in US professional team sports, many teams have an established track record of profitability, in the case of European football teams, profit making clubs have been very much the exception and not the rule. He goes further explaining that chairmen and directors with a controlling interest in football clubs are usually individuals who have achieved success in business in other fields.Their motives for investing may include a desire for power or prestige, or simple sporting enthusiasm: a wish to see the local club succeed on the field of play. In many cases profit of the club seems unlikely to be the major motivating factor. As one of our experts interviewed puts it: ‘Clubs are too much under the control of local business owners or major individuals in the community looking for personal gain. When these people take the reigns of a club usually they end up satisfying themselves. Many of them have come to my office and said: – For me, investing in a club is just like having a PR c ampaign. Rather than giving money to an advertising agency, I buy a club and since the press talks a lot about me, it has an equivalent effect. ’ . The relationship between the supporter and the club can be very different to a standard customercompany relationship. Lomax 32 explains that most supporters choose their clubs at a young age and then stick to this choice however irrational it may seem at face value. Football supporters are key stakeholders contributing to the club not just by being loyal customers but also by actively adding to the match day spectacle, and often committing financially to keep their club afloat as it was the case with the English supporters of Northampton FC that contributed with money in a fundraising campaign to alleviate the club’s financial distress. 3.As already mentioned, the Football Industry depends on both competition and co-operation among clubs. Football then redistributes income from leading to lagging clubs (and leagues) in orde r to promote competitive balance. This redistribution of income would not be allowed in most traditional industries. The combination of those three factors makes the dynamics of the football industry special in relation to most of the other regular forms of businesses. 1. 1. 3. STAKEHOLDERS’ M AP After analysing the governance structure and the dynamics of the European Football Industry, it makes sense to map its stakeholders in a more comprehensive way. Figure 1. 6 depicts those stakeholders: 31SLOANE Peter, The economics of professional football: The football club as a utility maximiser, Scottish Journal of Political Economy pp. 121-145, June 1971 32 LOMAX Brian, Democracy and Fandom: Developing a supporters’ trust at Northampton Town FC, in: GARLAND John, MALCOLM Dominic and ROWE Michael (Ed),The Future of Football – Challenges for the 21st century, Frank Cass, 2000 22 Figure 1. 6 – Stakeholders Map of the European Football Industry Non Non Exhaustive Exhaustive Fans / Spectators Club Patrons Clubs UEFA Stock Market G-14 European Union Players National Leagues National Associations FIFA European Football Industry Media Sponsors Press Once the stakeholders are identified we will make use of table 1. to map their interests, analyse their bargaining power, identify the main groups over which they exercise their power and qualify the types of pressures suffered by each group. Some of the points covered in this section are introductory and will be explained in more details later, but we think it is important to bear in mind the relationships described below, as they will be helpful to understand the nature of the conflicts treated in this paper. Table 1. 1 – General overview of stakeholders interests, power and pressures Stakeholder Main Interests †¢ Identification †¢ Entertainment Power Focal point of the industry but not sufficiently organised (H/M)* Vulnerability Not sufficiently organised †¢ Too emotionally a ttached to the game, will accept poor treatment †¢ Internal conflict between individual and cooperative objectives Pressure exerted Pressure received Fans / Spectators †¢ Spectacle †¢ Psychological satisfaction †¢ Social Integration Immediate pressure for sport performance over clubs Community Fans (H/M) Press (H) Players (H) Pressure on Governing Bodies and leagues over a number of issues related to the regulation of the game (Revenue sharing, competition format, supply of players to national teams, calendar) Patrons (H) UEFA (H) G-14 (H/M) Media (H/M) FIFA (H) Sponsors (H) Leagues (H) Stock Market (H) Nat. Assoc. (H) Increase demand for football Clubs †¢ On pitch performance limited by budget constraints Basic cell of the industry, controls the most valuable assets for the production of the game (H)* †¢ Short-term view †¢ Little control over main cost items †¢ Not a homogeneous and organized group †¢ Lacks direct representation at highe r decision making level *High (H), Medium (M), Low (L) 23 Table 1. 1 – General overview of stakeholders interests, power and pressures – continued Stakeholder Main Interests †¢ Develop the following of the game in Europe Power* Vulnerability Pressure exerted Pressure received* G-14 (H) Other clubs (M) FIFA (H) UEFA †¢ Keep tight control of the game in Europe †¢ Promote solidarity †¢ Promote port for all †¢ Develop other disciplines of the game †¢ Develop the following of the game universally Detains the natural monopoly in the organisation of the game in Europe, holds the key for eligibility of players and clubs at competitions (H) †¢ Relies too much on elite club competition to fund its activities Pressure on clubs and players to comply with the regulations and principles EU (H) Press (H) Fans (L) Media (M) Sponsors (L) Players (M) Leagues (L) FIFA †¢ Keep a strong control of the game †¢ Promote solidarity †¢ Develop o ther disciplines of the game †¢ Content – to get audience from the fans Is the supreme body of world football (H) †¢ Relies too much on one single national team event to fund its activitiesPressure on national associations, confederations, clubs to comply with the rules and regulations of the game EU (H) Media (M) Sponsors (L) Confederations (M) Media †¢ Has an interest in the game as long as it generates audience. Will switch to other content options as soon as it does not †¢ Content – to get readership from the fans Is the single major investor in the game. Without TV money Football collapses (H) †¢ Limited bargaining power over the price of top events †¢ Limited concern about the long term issues of the game †¢ Subject to competition law Pressure on leagues and UEFA for changes in the format in the quest for immediate rise in audienceFans (H) EU (H) Internal competition (H) Sponsors (H) Press Extremely influential over fans (H) Has the control over the national game, is represented with decision power at UEFA and FIFA, owns the national teams – a major source of passion (H/M) Usually controls the central marketing of domestic competitions (M) In the top level, due to the limited supply of talent and due to identification of fans (H). In the lower level due to the high replaceability (L) †¢ Credibility It is the ‘Big Brother’ watching the steps of Clubs, National Associations, Leagues and Players Fans (H) Other types of media (H) National Leagues (H) Players (H) National Associations Aligned with FIFA and UEFA at the domestic level Being confined to national borders may suffer from globalisation tendencies Pressure on the clubs, and on the leagues G-14 (H) Clubs (M) Fans (M) Media (H) Press (H) National leagues †¢ Organise club competition at the domestic level †¢ Commercial optimisation of domestic competition Being confined to national borders may suffer from globalisation tendencies Pressure on the clubs for cooperation over the quest for individual objectives, pressure on national associations Clubs (H) Media (H) Fans (L) †¢ Self realisation Players †¢ Financial security †¢ Status †¢ In general not too organised †¢ Incredibly risky and specific career – shortClubs (H/M) Pressure on the clubs for better labour conditions Fans (H) Press (H) Nat. Assoc. (H/M) Leagues (M) *High (H), Medium (M), Low (L) 24 Table 1. 1 – General overview of stakeholders interests, power and pressures – continued Stakeholder Main Interests †¢ Guarantee fair trade in the industry †¢ Help Federations to implement professional management †¢ Keep the balance among football and other industries †¢ Increase representation of top clubs in the decision making process of professional club football at international level †¢ Advise clubs on current financial challenges Power Vulnerability Pressure exerted Pressure received EU Can change the structure in which the professional level of the game is managed (H)Most of the time acts like an observer, not taking action until an actor complains †¢ Do not represent all top clubs †¢ Not officially recognised by UEFA †¢ Cannot impede UEFA or FIFA to directly deal with individual member clubs †¢ Threatening behaviour †¢ Relegation / Promotion system †¢ Eligibility for international competitions Pressure on the governing bodies on anti-competitive practices Industry sectors (H) Member states (H) G-14 (The Lobby Group) Represents the major top clubs in Europe (H) Pressure on UEFA, FIFA, national associations, other clubs and the EU Fans (L), UEFA (H), Member clubs (L) Stock Market †¢ Maximisation of shareholder valueImportant source of funds for some clubs, but not very representative in the industry as a whole (M/L) †¢ Too dependant on the highs and lows of sporting performance †¢ Subject to regulations made by people who may not be profit seekers †¢ Limited sensitivity to the long term peculiarities of the game †¢ Limited control over the sponsorship agreement Pressure on the listed clubs for diversification of revenues and for financial returns Regulatory bodies (H) Fans (L) †¢ Visibility to fans Sponsors †¢ Association with the goodwill of clubs and competitions One of the major sources of revenue in the Industry(H) †¢ Reduced bargaining power over the price of top events †¢ Internal competition in the sponsorship industryPressure on competition organisers, clubs and players Shareholders (H) Other sponsors (H) Club Patrons †¢ Prestige †¢ Value transfer to other businesses Owner and benefactor of the club (H) Too much emotionally involved with the club Over players for pitch performance Fans (M), Players (H), Community (H) *High (H), Medium (M), Low (L) 25 1. 1. 4. PROFESSIONAL FOOTBALL COMPETITION CALENDAR The pyramid structure of football gove rnance, along with the international nature of the game impose additional challenges to the organisation of competition in Europe. All layers of the pyramid rely mainly on the organisation and participation at competitions to generate the funds for their activities.Be it FIFA with its quadrennial World Cup or biennial Confederations’ Cup , UEFA with the Euro or the UEFA Champions League, the National Associations with the participation in the international competitions for national teams organised by FIFA and UEFA or with the organisation of the domestic cups, the national leagues with the organisation of the domestic league, or the clubs participating in domestic and international competitions, all actors depend ultimately on competition to subsist. The complexity in the organisation of the competition calendar comes from the fact that the actors have to share the same restricted resources: players and time.National team competitions, to be able to exploit their full commerc ial potential, have to count on the presence of top players, often the same players that are fighting for top teams in club competitions. International club competitions, along the same lines, hope to count with the participation of the most popular clubs, the same ones participating in domestic competitions. All of this constrained by the fact that there are only 52 weeks in the year, and there is a physical limitation to the number of matches a player can play in a given period of time. Thus it is not an easy task to find the right combination of supply among the different types of competitions: the one that will maximise the utility for the football fan. Figure 1. shows the configuration of the football calendar for the season 2002/2003, displaying the major competitions currently being played at the elite level of football in Europe. Figure 1. 7 – European Competition Calendar – Elite Professional Football – Season 2002/2003 2002 June July August September O ctober November December 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 Week Domestic League1) Domestic Cup6) UEFA Champions League2) UEFA Cup2) UEFA Intertoto Cup Super Cup / Intercontinental FIFA World Cup7) Euro (qualification) International Friendlies3) 4) Na tio n Te al am Cl u b Week 4) Domestic League1) Domestic Cup6) UEFA Champions League2) UEFA Cup2) UEFA Intertoto Cup Super Cup / Intercontinental FIFA World Cup7) Euro (qualification) International Friendlies3) 003 Season 02/03 January February March April May J Total 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Matchdates 38 10 23 15 10 2 9 8 4 Na tio n Te al am Notes: Cl ub 1) Based on the English Premier League 2) Including qualifying rounds 3) According to FIFA Coordinated International Calendar 4) Week 22 starts on Monday May 26th and finishes on Sunday June 1st 5) Weekend matches include Monday and Friday for the Domestic League 6) Based on the FA Cup – Starting at the 3rd round when Premier League clubs join the cup 7) Maximum of 7 matches per national team Key: Weekend matches5) Mid-week matches Source: Analysis of the authors based on data from Rec. Sport.Soccer Statistics Foundation (RSSSF), UEFA and FIFA 26 Figure 1. 7 shows that the majority of the annual football activity is based on domestic club football, including a domestic league and a domestic cup. Although the graph is based on the Premier League and the FA Cup, the activity in other countries follow a similar pattern. There is usually a domestic league being played from August to May mainly during the weekends with a number of match dates varying slightly depending on the number of participants at the top division of the league (usually between 18 and 20 in the major markets), and there is a domestic cup usually being played during the mid weeks over around 10 rounds. he UEFA Intertoto Cup. UEFA Champions League Eligibility for the UEFA Champions League depends on th e technical performance of clubs at their domestic leagues, and on the ranking of national associations prepared by UEFA. As an example, the champions and the runners-up at the English Premier League automatically secure a berth among the 32 participants at the UEFA Champions League, while the third and fourth places will play at a qualifying stage. The same is valid for Spain and Italy. But countries ranked lower by UEFA receive a reduced number of berths for the competitions with some countries receiving only a place at the qualifying phases.The competition is preceded by three qualifying phases played by 56 clubs entering in different stages. From the qualifying phases 16 clubs eventually gain access to the competition. Those clubs join the other 16 that secured an automatic berth, totalling 32 clubs. Currently, the 32 clubs play a first group stage (eight groups of four teams) with the two top teams in each group qualifying for a second group stage (four groups of four teams). T he group stages are followed by a knock out stage (quarter finals and semi finals) with home and away matches followed by a one leg final match at a predetermined venue. For the season 2003/04 UEFA has decided to eliminate the second group stage, meaning that the sixteen clubs ualifying from the first group stage (eight groups of four teams) will enter directly into the knock out stage (eighth finals, quarter finals, semi finals, and the final). This will reduce the maximum number of matches per club from 17 to 13. UEFA Cup Eligibility for the UEFA Cup is open to teams finishing in leading positions behind the champions in the domestic top divisions, besides the winners of the national cup competition, the winners of the league cup competition in certain countries, the three winners of the final matches at the UEFA Intertoto Cup and three clubs from UEFA’s annual fair play assessment. The UEFA Cup is a knock-out competition played home and away (except for the final match whi ch is played in a one leg match) and is preceded by a qualifying stage.At the third round, the eight teams falling in third place at the first group stage of the UEFA Champions League, also join the UEFA Cup. Figure 1. 8 Illustrates the format of the UEFA Cup, which is currently being revised by UEFA. 34 33 In the international scenario, there are three main club competitions currently being organised by UEFA, The UEFA Champions League, The UEFA Cup and 33 The domestic cup usually counts on the participation of clubs from many professional divisions, but the top clubs will join the cup at an advanced stage. Not considering the qualifying rounds 34 27 Figure 1. 8 – Format of the UEFA Cup # of Clubs 82 41 + 52 96 48 24 + 3 From Intertoto Qualifying Stage First Round Second Round + 8 From UCL 32 16 8 4 2 Champion Third Round Eighth Finals

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Transgressors of Convention Essay Example | Topics and Well Written Essays - 2750 words

Transgressors of Convention - Essay Example The researcher of the essay "Transgressors of Convention" gives a critique on three works of Modern art. Modern art consists of includes cubism, expressionism and constructivism. Other forms of modern art, examined in this paper, are Primitivism, Avant-Garde and Performance Art. Their relationship to other works in the Modern art era include their similarities in color usage, strength, vividness, shock factor and other types of emotional appeal, minimalist approaches, unexplained elements or nonrepresentational elements, even lack of traditional materials. Their differences show the desire of an artist to be individually judged from their counterparts, despite evidence that explains the subconcious ‘community’ that shows up in all artists’ work. As Sholette writes, â€Å"how can the artist be defined as an autonomous producer detached from politics, history and the market?† given the constant grouping of people, even through debit cards that are created wit h a computer program called â€Å"Clever†. "Clever locates these Web-based fraternities "even before members are aware of their community's existence. And â€Å"the boundary between Self and Other is fluid rather than fixed. And â€Å"the boundary between Self and Other is fluid rather than fixed.† The Activist art collective critiques the bourgeois notion of self-institutionalization. But much of Modern art is simply the â€Å"challenging of the power of realism† by producing pieces with their own power. Die Bruckebegan as an offshoot of German expressionistism.... o be the evolutionary 'bridge' between the man of today and the 'superman' of tomorrow, but instead seemed to show their yearning to return to natural origins. Primitivism provides an alternative to the "sophisticated illusionism" and offered a more 'authentic' way of being. (Stokstad 2002) Three Nudes - Dune Picture from Nidden 1913 This work is representative of that which draws from primitivistic concepts2 of Africa, South America, "children and the mentally ill." (Stokstad 2002) Semi-representational, the figures in the piece are developed as a part of the whole instead of being separated from the background, as in portrait work. The message seems to be about the unity between these women figures and Nature. Considered crude drawing and simplistic in its arrangement of elements, the composition holds power in its saturation of color, the strength of its lines, the movement of its forms. Despite its seeming lack of thought, the design elements are planned and executed as well as a formal painting. The Die Brucke artists did go back to Nature to northern Germany during their summer breaks and their paintings often reflected their dislike for urban life, urban alienation. The contrasts are shown from their paintings of the psychological distancing of city society (Kirchner, Street, Berlin) to the inviting warmth of Three Nudes. (Stokstad 2002) Perhaps the freedom felt by more citizens of Europe in the early part of last century led the Die Brucke artists toward greater criticism of their world, to Expressionism and Activist art. But it was still not socially acceptable. 2 The word 'primitive' . . . categorized art of Africa, Pacific Islands and indigenous Americas . . . means 'early' . . . implies that these civilizations are frozen in their cultural development

Risk Management Paper Essay Example | Topics and Well Written Essays - 1000 words

Risk Management Paper - Essay Example It is essential to define what a risk is, too. A risk is any form of activity or behavior that shall create a sense of either wellness or the absolute lack of it (implication in the form of negativity) for the subject at hand. In this case, the subject is the management domain within a particular organization which is ready to assess the risk that shall be encountered within its folds, and which will mean success or the lack thereof within the related communicative settings. Risk management within the aegis of justice and security organizations is all the more important because there is minimal chance of having any error within the related folds. By this, one emphasizes the need for understanding how risk management should be taken up as a practice in its own right and what more could be done to bring about a sense of ease and comfort within the security organizations and justice realms (Davidsson, 2010). Risk management strategies take care of transferring the risk towards another p arty or even avoiding the risk once and for all. This is so important because it clearly justifies the role of risk being a deterrent towards culmination of a number of tasks, behaviors and activities. Therefore risk management shapes up quite a few beliefs if seen from the justice and security organizations’ point of view. Risk management is a source of providing ease when the justice regimes require the proper implementation of codes and procedures within the judicial angles (Palmieri, 2011). If the judicial angles are not being given the significance that these richly deserve, then this means that the risk management aspects have not been properly utilized or even not thought about of being used in the first place. Risk management within the aegis of security and justice is of paramount importance. This is because risk management finds out the exact basis through which the decisions will be taken into proper perspectives Pelzer, 2009). It would make the lives easier of the people who are related with such fields and give them an avenue to explore their own basis, discern where they are going wrong and find out how success will be attained at the end of the day as far as justice and security organizations are concerned. The risk management domains gain an even more significant role in this day and age because the amount of risk involved within a transaction is directly proportional to how much the justice and security organizations can achieve and acquire at the end of the day (Massingham, 2010). The risk management avenues have been able to muster up confidence within the economic and financial angles of the world’s most sought after organizations and the reason for the same lies on the shoulders of the people who have made it a possibility. What is even more interesting is the fact that risk management has been able to make its point get heard and discerned properly within the context of the justice and security organizations ever so dominant ly now than ever before. In terms of understanding how management works, risk management will only solve the issues that plague it in more ways than one. This would mean that the risk man

Airline Industry and the Economy Essay Example | Topics and Well Written Essays - 2250 words

Airline Industry and the Economy - Essay Example The shape of the economy is determined by its fiscal and monetary policies, market regulations, capital and export markets, degree of stability and competition, factor endowment and social ahead capital. Fiscal and monetary policies involve government expenditures, money supply, interest rates, currency exchange and inflation rates, and the operation of the banking system. The objectives of fiscal and monetary measures are to keep government from deficit spending and provide stability in money supply, interest rates, prices and the banking system. Once these conditions are emplaced and government spends within limits to avoid heavy external debt, capital credit is available for industries, purchasing power is strong and the economy produces a wide range of goods for the export market. As for market regulation, some of its cornerstones are the efforts to maintain a healthy balance between competition and cooperation and to discourage monopoly and oligopoly. The reason is that where co mpetition is completely unregulated and trade monopolies or oligopolies are allowed to operate, the large enterprises are likely to devour the smaller ones. Factor endowment relates to the supply of land and capital and the size and health of the workforce, while social ahead capital has to do with the availability and quality of power, water, communication systems, housing and transportation. The economy will have difficulty taking off if land and capital are hard to come by and labor supply could not meet the demand of industries in terms of skilled and able-bodied workforce. The economic engine will likewise sputter if water and power supply is unreliable, housing is scarce and expensive, and communication and transportation systems are inefficient. In the transport sector, the airline industry is the most sensitive to economic ups-and-downs and the most vulnerable to natural and man-made disasters, terrorist acts, wars and extreme weather events. This was once again demonstrated in 2001 when air travel worldwide grounded to a halt in the aftermath of 9/11. Flag carriers Swissair of Switzerland and Sabena of Brazil folded up, while several US airlines placed themselves in bankruptcy proceedings to avoid complete collapse. From 2001 until 2005, the airline industry worldwide suffered losses reaching $43 billion, which was equivalent to the combined capitalization of 13 US airlines in today's terms. Even British Airways, the world's biggest international airline, was unable to pay shareholder dividends for four years, had to trim 5,800 jobs and to introduce pay cuts to managers. In the US, the government came to the rescue of the distressed airline industry by allotting a $15-billion bailout fund. The industry used the assistance to hire back some 10,000 workers that were laid off at the height of the crisis, which was the primary concern of the state. In the absence of such economic upheavals, the main concerns of the airline industry are the costs of aircraft acquisition and maintenance, fuel and salaries. These are the direct operating costs of airlines,

Competing Values Framework Essay Example | Topics and Well Written Essays - 1500 words

Competing Values Framework - Essay Example However, for successful implementation of this strategy, leaders have to do so by keeping the organizational culture in mind as well as understanding that the daily tensions that exist in the within their organization greatly affect their plans (Hartnell & Kinicki, 2011). The competing values framework comprises of these competing positive tensions, divided into four quadrants. For over 5 years of research and testing, results prove that competing values framework is a successful way of fostering good leadership, improving organizational effectiveness and promoting value creation. According to model, the four quadrants comprise of four hotly competing values within every organization which include collaborate, create, compete and control. In an organization’s limited resources including time, finances and labour, these four values really compete with each (Thakor, 2010). How effectively the leaders of the organization allocate for these resources determine their level of succe ss as business leaders. Their ability to respond to the tensions created by these competing values shapes the organization’s culture, practices, products and its efficiency in growing its operations (Rai, 2011). AÂ   Competing Values Framework Questionnaire developed for this purpose measures three important organizational aspects; purposes, people and practices. Purpose measures the future outcomes that a company hopes to achieve in future, practices measures the current organizational practices while people determine the individual leadership approach.... Their ability to respond to the tensions created by these competing values shapes the organization’s culture, practices, products and its efficiency in growing its operations (Rai, 2011). A Â  Competing Values Framework Questionnaire developed for this purpose measures three important organizational aspects; purposes, people and practices. Purpose measures the future outcomes that a company hopes to achieve in future, practices measures the current organizational practices while people determine the individual leadership approach of all members of the organization in their respective capacities (Moore, Kizer, & Jeon, 2011). According to Sharimllah et al (2011),the developers of the model urge business leaders to use the CVF model in measuring their level of effectiveness. Although there are different ways of defining organizational effectiveness as the competitive value model points out, companies ought to align themselves in the right definition of effectiveness. After align ing themselves, companies can thereby find an innovative potential in achieving their desired growth and outcomes. There are two ways of measuring the competing values assessment. One is at the individual level and the other at the team level. Individually, assessment focuses on the personal development and career planning ability while at the team level assessment focuses on the team development and creating a shared vision and shared valued among the group members. The initial step in competitive value framework is completion of the competing value assessment, which takes place either by the entire organizational members or by strategic business units. After

Human motivation Essay Example for Free

Human motivation Essay

Comparative Analysis Of Two Peer Reviewed Journals Commerce Essay

Comparative Analysis Of Two Peer Reviewed Journals Commerce Essay As said in the assignment we have to select a topic which is taken with two peered reviewed journal articles and making our own topic to understand the comparative analysis. The topic we have selected is the The relationship between the employees retention and the employees motivation. Accordingly two articles we were selected Performance and Motivation Prepared by Alfred W. Huf III, and Employee retention and turnover: Using Motivational Variables as a panacea. By Michael O. Samuel and Crispen Chipunza. The author of the first article says Performance and Motivation the main aim of this article is to look at the link between Performance and motivation. This article is mainly aiming to the employees prospective and how they have performed while we have to uplift the quality of the life of them. Most of the cases in the article have shown that how we can keep the performance in a top level and getting the employees full utilization. Motivation is always following the rules of the leadership and if there is a proper leadership in the organization we can have top level motivation as well. And also this article discussed that how the employees motivated by having the Non-cashed rewards and the cashed rewards. This is more important that it also described that the few famous policy makers like Herzberg, Maslow, and Taylor have some contradictions and the author of this article shows and discussed the facts regarding this matter. According to the authors of the Second article- Employee retention and turnover: Using Motivational Variables as a panacea aims to emphasize a research that will tell the story of why the people working in an organization and is leaving the organization. It is described intrinsic and extrinsic factors that will influenced to the turnover of the employees in workplace. And for this they have chosen few organizations and they also have done a research regarding this. They have experiment the motivational factors that affect the turnover and the retention as well. So this is a research based article that will guide us to the important factors on motivation and the turnover or retention of an organisation. It is hard to keep the skilled employees in an organisation. We have to provide many incentives and many rewards to retain those people. So, the motivational factors which we have to consider are the most important factors in any kind of organization. In this article they have shown some theoretical and practical factors that influenced the employees turnover and the retention. It is very hard for the mangers to retain their skilled employees into the organisation. We have to have a good plan to retain the employees where we have to wo rk hard for it. By this understanding also we can identify certain similarities and as well as the disparities of this two articles. Further this report will provide more specific analysis of these two articles. Comparative Analysis: From the first article Performance and Motivation there are mainly aiming to find out the link between the motivation and the performance within the large organizational behaviors. Which author describes that is really essential to improve at the Motivation and reduce the turnover in the organization. But from the second article Employee retention and turnover: Using Motivational Variables as a panacea. discuss about the motivational factors or the variables that will keep the workers in the organization. And also it is very important to keep the skilled workers bond to the organisation. So the two articles have the main similarity among the motivation and the retention of skilled workers. In the first article it is discussed that the few case studies which will guide us to identify some factors that are important to understand the motivational factors in an organization. And also it describes the theoretical comparison as well. The Non-cashed rewards can be a vital part of employees motivation. The author of the first article describes that the non-cashed rewards such as flex time, goal based incentives, and the rewarding the employee of the month will motivate the employee rather than giving some amount of money to the workers. It is also said that communicating this among the employees is the most important part of motivation the people. So these kinds of motivational events may lead to the top performing employees in an organization. In the incentive packages we must consider to give a merchandiser awards that are more effective than the top seller trips. According to the author we can have meetings after every week or month and decided that we can offer the merchandiser award. This is also in the same category of motivation by no-cashed rewards. And also in this article the author has suggest some critical motivational factor that is the employees can show or suggest the changes they need while they performing well. This is very crucial that if an employee is trying to go somewhere else for better offer he can suggest that the need of his difficulty. And also people trying to perform well otherwise they may not have any chances to bargain the incentives. This is a kind of culture making by the employees that they need to perform well. And within this culture employer have not to worry about the employees turn over. And there is one thing that arises in the article that the relationship between employer and employee is so important to the retention of employees. This can be done by having a conversation with the employee and the employer. The employer can ask the stories that the bad and the good situation from the employees of their life. So this will create a big bond between the two parties and the employee may unable to bargain incentives after this kind of conversation. And finally we have seen some important motivational factor in the later part of the article. The motivating language speaks by the leader or the manger to the workers. This is the most influencing way that one can suggest for better motivation and high performance of working. As we can see the above factors can be used as the motivational factors in an organization. So it is important to know the other well established factors in the second article to compare the linkage between the two articles. We have found in the second article that the authors have stated the theoretical aspects of the motivation. The Herzberg has defined some motivational factors that can be taken in to consideration. These are the intrinsic variables he defined achievements, recognitions, advancements, responsibility, work itself and the growth. These are some of the famous motivational factors that can be used to retain the employees. However the article also stated that the extrinsic factors also may have some influenced on the workers retention and the turnover. The factors we have identified in the article are competitive salary, friendly working environment, better interpersonal relationship, and the most important job security. This article is mainly bridging the literature of the motivational factors and the current practical knowledge and makes some model that will describe the entire story of why the employees turnover and retention happens. The second article found many practical factors that will directly effect the motivation and the retention of the employees. So we can find some extrinsic and intrinsic motivational factors that influence to the employee turnover and the retention. It is found the following motivation variables have significant influence over the employees motivation, retention and the turnover as well. Training and development Job security Sense of belonging to the organisation Interesting/ challenging work environment Innovative thinking freedom . Conclusion: So as we have discussed in the study there are many motivational factors we can identify from the two articles. The major findings from the article No: 01shows the theoretical aspects of how the motivation should be used to make better performance in an organization. And the Article No: 02 shows us the practical approaches that will make the motivation to reduce the turn over and retain the skilled workers in an organization. We can identify some important factors in the second article which are related to grow in the organisation. And also there are some factors that will be must there to retain the skilled workers and meantime we can make the employees more experience and well trained. According to the second article we found that some motivational factors are crucial for influencing the employees decisions. Training and development, competitive salary package and job security and recognition /rewards are the main motivational variables that will influence the worker capacity up and also better performance in the workplace as well. In the first article is also shows us the motivational factors that will describe the factors which are related to the cases and getting the essence of that studies. We can find some motivational factors in the first article can be very important to the performance of the workers.