Strategic Management Essay

3124 Words May 29th, 2010 13 Pages
1.0 Introduction
Strategic Management focuses on the long-term scope and direction of the organization which enables it to achieve advantages through matching resources to the changing environment to meet the need of the market and fulfill stakeholder’s expectations. The following is a strategic analysis of Manchester United, a member of the Barclay’s Premier league in the 2009 - 10 football season. This analysis is divided into three parts, namely; Market environment Analysis, Football Club Strategic Analysis and Strategic fit analysis.

Table of Contents

Market Environment Analysis
The Barclay’s Primer League
PESTEL Analysis
2.3 Porter’s Five Forces Model
3 -
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Local employment laws in different countries will impact upon the club’s ability to obtain overseas player’s and should be critically examined similarly, immigration laws would affect the issuance of work permits to foreign players. Government regulations to protect fans from fights and football hooliganism must be considered.

Porter’s Five Forces Model
The Five Forces Model developed by Michael Porter has proven to be a useful tool for analysing the market environment. These competitive forces are: the threat of new entrants into an industry, the bargaining power of buyers, the bargaining power of suppliers, the threat of substitute products and services, and the extent of rivalry among competitors in an industry.
The threat of new entrants
The threat of new entrants describes the possibility that the profits of established firms may be eroded by the entry of new competitors in the market. Threat of entry is dependent on barriers to entry in the industry such as high capital requirements and product differentiation exists. Starting a professional football league requires a large financial investment to compete. Additionally, the strong brand image of the existing football leagues and customer loyalty proves to be another barrier, as entrants would have to invest large sums of money in order to overcome this.
The bargaining power of buyers
Buyers may pose threats an industry by forcing prices down, bargaining for more services

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