With revenue cut in half, expenditures will need to be reduced to accommodate the new situation (Southampton Leisure Holdings PLC. 2006). The team management will need to make key decisions on players, as salaries are the largest single expense. A plan will need to be implemented that can reduce the costs associated with player demands and still provide a reasonable opportunity to compete towards a goal of promotion back into the Premier Division.
Management will be required to draw up a business plan that reflects the business strategy of the team. Loss of revenue from relegation will mean restructuring the player roster and may amount to the loss of the best players. Other players may be sold to generate immediate cash. One of the first tasks of the budget will be to realistically match salaries and goals to achieve the required end. Management may set a long-term goal of remaining in Division 1 until they are competitive enough to produce a profit in the Premier League.
Alternately, a team may set a goal of returning to the Premier League after only one season in the Championship League. This would involve structuring player expense to increase the probability of being promoted. The team may spend all their available cash as well as incur further debt. However, management needs to plan beyond the current season as well. Promotion to the Premier League may not be any financial advantage if they are unable to compete in the future at that level. Loss of cash and increased debt has the potential of creating a yo-yo situation where the team is alternately promoted and again relegated.
A key consideration of relegation has to do with whether a team actually is financially better off by being promoted to a higher league. A Premier League team operates in a local market for selling tickets and a national market for selling media rights. In both cases, the demand for a team's products depends on its quality, the opponents, and their market. In general, teams in more populous, wealthier markets will generate more revenue. (Noll 2002 p. 172). Promotion into a league that is too strong for the market in which the team is located may have a negative effect due to marginal costs. The advantage of the increased press coverage that results in greater demand may be offset by the increased marginal player expense (Noll 2002 p. 173). Thus, a team that should be in a lower league from the perspective of profit maximisation may set goals that are not in the best financial interests of the stakeholders.
Establishing a budgetary control process will be a necessity and require naming key individuals in each department that will be responsible for maintaining expenditures within the budget, and meeting the long term objectives. A sound approach to generating a good budget is characterised by the participation of as many people as possible, a budget that will consider the whole organisation, and utilises effective standards of performance. The budget must be flexible enough to allow for changing circumstances and analysing ongoing revenue and costs.
A budget committee should be comprised of senior members of the organisation and should be represented by every part of the organisation. The budgetary committee will be responsib
In football, winning is not everything, it is the only thing. This age-old adage has prompted teams to pursue winning, and placement into the upper leagues, that denied all realism and practicality. A team in the Premier League can stand to gain far more money from gate receipts and broadcast royalties than a team in the Division 1 Coca-Cola Championship League…
Academic pressures create adverse psychological affects on students’ abilities as well as behavior. Although academic pressures are meant to create good competitive spirit and learning atmosphere for students, they cause substantial stress also. Stress is known to be a silent killer of mental, physical and psychological wellbeing of humans at all ages.
Accordingly, this brief analysis will seek to measure and analyze six specific aspects of both organizational and environmental change as a function of helping the reader to understand the overall size and extent of which these changes impact upon the organization as a whole.
The district lies in the state of Arizona which has passed the Arizona Constitution Article XI and Title 15 of the Arizona Revised Statutes to be followed by the schools and colleges of the district. The districts are bound to publish their budgets in the newspaper for public awareness as budgetary revenues include the amount paid by the tax payers.
The need for controlling function in everyday life is also indispensable. In business parlance, controlling and controlling techniques have specific meaning and significance. Effective business management is incomplete unless controlling functions are performed. In the sequence of management processes, controlling is considered the last one.
Why can we call sport as being a global activity is because now the competition level has risen among countries and the events are held nearly throughout the globe without the reason of "popularity" in the region involved. For example, in "Formula One", we have a Finnish champion but there is no "Race-track" present in Finland.
The researcher of this essay will make an earnest attempt to compare and contrast two case studies of strategic management techniques in the public sector in order to examine a) the impact of strategic leadership and b) the impact of strategic management processes on the effectiveness of an organization.
By setting comprehensible and defined objectives based upon the budget, the employees very well comprehend what is expected out of them and can hence feel more motivated. Even though, it requires that the objectives are set on a suitable
This has been brought by the need for international quality measurement and evaluation of business practices and performance. This development has resulted in the need for standardization of business practices globally, through creation and standardization of total quality management systems like ISO 9000 for companies.
Fordism, which entails methods of large-scale manufacture of cars and large-scale managing of industrial employees through intricately designed manufacturing methods characterized by a moving assembling, was developed by Ford in 1914.This essay will consider the control mechanisms at Ford that has been the most useful.
r, the Cost & Management Accountants (CIMA) Institute defines budgetary control as “The establishment of budgets relating the responsibilities of executives to the requirements of a policy, and the continuous comparison of actual with budgeted results, either to secure by
4 pages (1000 words)Essay
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