PESTEL of Arsenal Football Club - Essay Example

?Client’s 4 July PESTEL of Arsenal Football Club Arsenal has been without silverware for a really long time now and this has also left the fans fuming, Arsene Wenger has done great work but he needs to start spending money, the recent signing of Podolski has been a good move but the club needs to sign more players to stand any chance of winning silverware. “The political environment does not affect football much and UK is quite politically sound so there is no trouble in that regard. The board members of Arsenal football club also are working in unison to ensure that the club makes progress.” (Hayes, Dean, 2007).  The economic condition of the club is really good compared to other clubs; the club has sold players in the recent past at a good profit. The transfer of Samir Nasri from Arsenal to Manchester City was a really good deal for the club, the transfer of Fabregas from Arsenal to Barcelona was also a really good transfer for the club money wise. Economically the club is quite sound, they also generate revenue by selling season tickets and their stadium is arguably one of the best stadiums in Europe. “Socially the club is really famous and has a large fan base but the fan base can always improve, Arsenal can tap the untapped markets. India is a largely untapped market and Arsenal can easily tap the Indian market but a lot of homework needs to be done in order to do so.” (Hornby, Nick, 1992) Technologically Arsenal is far ahead of most clubs, the club offers all the latest facilities to the players and the coaching staff. The gym is equipped with the most modern of all facilities so that the players can make the full use of the resources available. Environment wise Arsenal needs to do more, the fans often leave trash after almost every game and this is degrading the environment to a large extent, they do not use bins and end up polluting the environment. This needs to be sorted out by the club so that they do not play a role in degrading the environment. The recycling facilities at the Emirates Stadium are not the best and the club needs to make those facilities better so that it plays a role in protecting and safeguarding the environment. The fans should be encouraged to use public transport on match days so that they do not end up polluting the environment by using their vehicles to get to the stadium. Legally the club is in safe hands, the financial fair play regulations brought in by UEFA will not affect the club because it does not spend money excessively, this rule will take a toll on clubs like Manchester City, Chelsea and so on. SWOT Analysis of Arsenal Football Club Arsenal football club is a very famous club based out of England. It is located in North London and has a very huge fan following. It is also known as the Gunners, the club has gone from strength to strength. Arsene Wenger is the present manager and he has done a fantastic job at the club. The club used to play at Highbury earlier but they have invested a lot of money in building a new stadium “Emirates Stadium”. The club does not shell out big money in the transfer market and still finish in the top four more often than not in the Barclays Premier League. Arsene Wenger has made some very sagacious signings off late, Arshavin was bought from Saint Petersburg Russia and he has been a sensational signing for the club. Other major signings include Gallas who was bought from Chelsea, Thomas Vermaelen who was bought from Ajax. Strengths Emirates Stadium: “The new Emirates Stadium is one of the biggest strengths of Arsenal Football Club; the revenue generated is huge from the tickets and other exhibition events that take place at the stadium. The club can invest a little more in the stadium so as to accommodate more supporters, this will fetch more money through tickets and the club will end up making more revenue.” (Joy, Bernard, 1952) Players: Some of the players who play for Arsenal are world class players and the club should capitalize on the same. A lot of money can be generated through merchandize, football is a global sport and it is watched and played by billions across the globe. Arsenal football club must capitalize on this opportunity. Manager: Arsene Wenger is amongst the most respected managers across the globe; he is astute and knows what is required of him. He has played a pivotal role in bringing up several young players, Theo Walcott for instance became a prominent player under Wenger’s watchful eyes. He is the right man for the job and Arsenal will only get better under his guidance. Fan Following: The Gunners are amongst the top four English Clubs, this goes to show that the club is a very big club. The fan following is huge and this is another strength of the club, the revenue generated by selling tickets and by other activities is important for the proper functioning of the club. Weaknesses A Barren run Arsenal is yet to win major title in 6 years, this will have a direct impact on the fan following. The revenue and the TV rights might get affected should they fail to win a title this year. It is high time for them to win a major title. This is one of the biggest weaknesses of Arsenal football club. Squad: Arsenal is a team made up of youngsters; they need to spend more money in the transfer market. They must buy an experienced player who can support and instill confidence in the team. This will help them win more titles and this will also help the loyalty and the financial position of the club. Marketing: The marketing strategy of the club is still far behind the other top three clubs in England, the club needs to sort out its marketing strategy only then can they become a genuine powerhouse. Opportunities Global Reach of Football: “Arsenal football club must try and maximize its fan base, football is a global sport and it reaches out to countless people across the globe. Arsenal must capitalize on the reach of the sport. This can only be done by winning major titles and to do so they require good players. They must make good signings in the transfer market so that they can win more trophies.” (Roper, Alan, 2003) Private Hands: Arsenal is the only football club in the top four clubs that isn’t owned by a private owner, the other three clubs namely Chelsea, Manchester United and Liverpool are all owned either by an individual or by two people. The club can invite bids so that more money can be invested in the club, this will ensure the availability of funds which can be well spend in the transfer market to buy good players who can win the club more trophies. Threats The other Big Clubs: “Manchester United and Chelsea are the biggest threats to Arsenal, even Liverpool football club is a very genuine threat to Arsenal. These clubs have much more money than Arsenal to spend. Manchester United is in debt so they might not spend money in the next few months. Chelsea and Liverpool may spend money, this will strengthen their current squad and it will give them a better chance of winning major titles. Arsenal need to ensure that they ward off these threats.” (Maidment, Jem, 2005) Manchester United: Manchester United is the most popular football club in the world; it is the biggest threat to Arsenal. The club has won three premier league titles on the trot. This goes to show their dominance in the Barclays Premier League. The fan following of Manchester United is much better than that of Arsenal football club. This dominance is the biggest threat for Arsenal; they need to win trophies in order to put this dominance to an end. It again comes down to buying good players, performance on the field is everything in football and a team who performs well will get everything at the end of the day, be it money or be it an increased fan following. Arsenal must ensure that they start winning games consistently; there is no room for error at the highest level. Once Arsenal can start winning back to back games they can become genuine powerhouse of Europe. This needs a lot of planning and restructuring, the most important thing required at the moment is performing on the field. Good performance will maximize the chances of Arsenal winning the league, they must go all out in order to ensure that they win the Barclays premier league this year. The other clubs will give Arsenal a run for their money. References Hayes, Dean (2007). Arsenal: The Football Facts. John Blake. ISBN 978-1-84454-433-2. Hornby, Nick (1992). Fever Pitch. Indigo. ISBN 978-0-575-40015-3. Maidment, Jem (2005). The Official Arsenal 100 Greatest Games. Hamlyn. ISBN 0-600-61376-3. Maidment, Jem (2006). The Official Arsenal Encyclopedia. Hamlyn. ISBN 978-0-600-61549-1. Roper, Alan (2003). The Real Arsenal Story: In the Days of Gog. Wherry. ISBN 0-9546259-0-0. Bibliography Joy, Bernard (1952). Forward Arsenal!. Phoenix House. Soar & Tyler (2005). The Official Illustrated History of Arsenal. pp. 32–33. Soar & Tyler (2005). The Official Illustrated History of Arsenal. p. 40. Soar & Tyler (2005). The Official Illustrated History of Arsenal. p. 18. Soar, Phil & Tyler, Martin (2000). The Official Illustrated History of Arsenal. Hamlyn. ISBN 978-0-600-60175-3. Soar, Phil & Tyler, Martin (2005). The Official Illustrated History of Arsenal. Hamlyn. ISBN 0-600-61344-5. Spurling, Jon (2004). Rebels For The Cause: The Alternative History of Arsenal Football Club. Mainstream. ISBN 0-575-40015-3. Spurling, Jon (2004). Rebels for the Cause: The Alternative History of Arsenal Football Club. Mainstream. ISBN 978-1-84018-900-1. Stammers, Steve (2008). Arsenal: The Official Biography – The Compelling Story of an Amazing Club. Hamlyn. ISBN 978-0-600-61892-8. Weaver, Graham (2005). Gunners' Glory: 14 Milestones in Arsenal's History. Mainstream. ISBN 1-84018-667-4. Read More