The paper "Business Environment - Competition & Markets Authority" is an outstanding example of a business assignment. An economic system defines the mechanism through which a society attempts to meet material needs and wants of individuals through the production of goods and services. The scarcity of resources means that society has to decide about the activities that should be given priority and those which can be neglected (Orr 2011 p. 22). AC 1.2 MCFC Stakeholders Needs/Expectations What the organisation does to meet the needs of stakeholders How successful? Fans Entertaining football, recruitment of top players, trophies. The club has purchased top players in all positions and hired to managers.
The club has also invested in a state of the art training facility The club has recently won two Premier League titles. MCFC has also qualified to play in the Champions League. However, there has been no Champions League success. Fans expect the club get to the latter stages of the competition, and finally, win in the near future (MCFC, 2015). Shareholders Trophies, returns on investment, media exposure. The club employs top players and coaches to guarantee entry into the lucrative Champions League.
Winning trophies also satisfies shareholders. The club has been unsuccessful in terms of generating returns on investment due to the massive investments in top players. However, winning the Premier League, Capital One Cup, and the FA Cup in recent years has satisfied the shareholders (MCFC, 2015). But a higher degree of satisfaction will come with winning the Champions League. Employees Good compensation, recognition, good working conditions, team to win trophies. The team attracts top employees from the profession, invests in top-notch facilities, and aims to win all competitions it enters. MCFC has been very successful in meeting the needs of employees.
Its wealth means that it can offer competitive salaries, and MCFC has opened what can be considered as the best football facilities in the country (Wheeler 2014). The recent domestic win also means that employees get satisfaction for being part of a successful organisation. Sponsors Brand exposure MCFC renamed its stadium to become the Etihad Stadium to promote the brand of its main sponsor the Etihad Airways. Players also wear kits that display the Etihad logo to promote the brand. MCFC has successfully promoted the brand of its various sponsors.
For instance, hosting clubs such as Barcelona and Real Madrid at the Etihad Stadium in the Champions League exposes the Etihad brand to a global audience. Players Good compensation, professional training, good working conditions, trophies, national team involvement. MCFC employs managers who have already achieved success in the game. The club has also invested in a state of the art training facility known as the Etihad Campus (Wheeler 2014). The club continues to recruit top players to improve the chances of winning trophies. The players are the stakeholders who derive the highest level of satisfaction.
The earn some of the highest wages in European football and train in a world-class facility (Wheeler 2014). The club has managed to win trophies, and it provides its players with the platform to be called for their national teams and earn global recognition. Organisations (FIFA, UEFA, Premier League, FA) Expects clubs to follow rules of the game, have legal player transfers, and become good ambassadors of football to attract more fans. The club consults these organisations on various issues. The club tries to ensure that it follows all the rules. The team has failed in meeting Financial Fair Play regulations and paid a massive fine for this failure.
In addition, their squads for European Competition will be restricted, and the club will have to be careful in handling future transfers (Gibson 2014). Media Expects MCFC to play entertaining football and gain match-day audiences, prevent hooliganism or racism. The club accepts to follow schedules created by the media to maximise viewership. The club schedules regular interviews with managers. Players also get media opportunities. The club has been successful in meeting the needs of the media.
MCFC plays entertaining attacking football and fields global stars like Sergio Aguero and Yaya Toure. The popular matches between MCFC and local rivals Manchester United is an example of MCFC’ s success in attracting a huge audience for the media. AC 1.3 Legal Responsibilities Strategies Employed to meet them Prevent hooliganism and racism The club retains a list of all the people who attend matches, as well as their seat numbers. Hooligans or racists can be tracked with ease. The club also has surveillance systems and employs many stewards during matches. Follow the rules of the game The club consults football organisations like the FA and the Premier League in order to understand existing and new rules of the game. Employment law The recruitment of various employees who work in the football section or business sections complies with relevant employment laws.
The club retains legal counsel to advise them on how to adhere to employment laws. Financial fair play The club strives to grow its revenue so as to be able to spend in the football transfer market. The club has paid a fine for its previous breaches of financial fair play (Gibson 2014). Respect player contracts, carry out legal recruitment of academy players, respect Bosman rule The club has an academy that develops local and international teenagers.
The club has to respect the rules regarding local and international transfers of vulnerable children. The club respects the contracts of senior players who retain the right to move and work for any other club in Europe. Business Responsibilities Strategies Employed to meet them High match-day attendances The club moved from the old stadium, Maine Road, to the new City of Manchester Stadium, which had an improved capacity of 48,000.
The move allowed the firm to collect higher matchday revenues, an important source of income for football clubs (MCFC 2015). Football merchandise sales The club attracts world-class players from across the globe. These stars help the club to sell football merchandise and give the club much-needed income. Entry to the Champions League The club has consistently qualified for the Champions League. This gives the club additional revenue from the extra matches as well as huge fees from the media. Sponsorships The club attracts some of the wealthiest sponsors in the planet. For example, Etihad Airways paid the club £ 400 to get the naming rights for the club’ s stadium (Taylor 2011). Taxes The club has to pay various taxes to national and local governments as it functions like any other company. Social Responsibilities Strategies Employed Employ workers from the city A club's most important social responsibility is to employ people from its vicinity.
Manchester City recruits as many people as possible from the city in order to raise the standards of living in the area during times of economic hardship. Redevelop the area around the stadium and academy The city of Manchester has several rundown areas around Ancoats and New Islington.
MCFC has decided to invest £ 1 billion in these areas to build 6000 new homes (Jupp 2014). Develop local English talent England has performed poorly in recent competitions like the 2014 World Cup. MCFC has a social responsibility to locate and give chances to local English players. Consequently, the firm has developed a state of the art training facility that scouts and develops local talent (Wheeler 2014). Engage with charity bodies MCFC has a number of selected charity partners during each season. These charities benefit from support for their activities, initiatives, and fundraising (MCFC 2015b). Improve educations standards in the area In addition to developing football skills, MCFC also focuses on education.
An example is its Ready, Steady, Work program that teaches teens some of the skills they would need to get employed (MCFC 2015c). TASK 2 AC 2.1 Historical societies concentrated on the production of food while current society concentrates on allocating resources to other goods and services due to food security. There are three types of economic systems; centrally planned, free market and mixed market. Centrally planned systems refer to those where the government is in full control of the allocation of resources.
Individuals and private businesses have no say in decision-making. In addition, government decisions do not respond to demand and supply forces, meaning that there are frequent surpluses and shortages in countries that use this system (Orr 2011, p. 33). As such, there is an ineffective allocation of resources in centrally planned economic systems. North Korea is an example of a country that uses this system. The country is secluded from the rest of the world meaning that it has access to limited resources.
Thus, the government has decided to oversee the allocation of limited resources. Free market systems are those where corporations are in control of the allocation of resources with minimal government interference. Supply and demand forces play a pivotal role in determining the allocation of resources leading to high levels of competition (Orr 2011, p. 22). It is evident that this system leads to a highly efficient allocation of resources. The main limitation of the free market system is that a few private corporations might profit while the needs of the public are ignored due to a lack of desire to create not-for-profit goods and services like infrastructure.
A completely free-market economic system is unattainable in the real world. But a nation like Hong Kong has an economic system that tends towards a free market system (Forbes 2015). The absence of government intervention can be seen in the lack of quotas and tariffs on imported goods. The third economic system is a mixed economic system. The system combines the features of the free market and centrally planned economic systems (Orr 2011, 42).
Globalisation has caused many governments to move towards the mixed economic system. The allocation of resources is efficient as the needs of the public and private corporations are considered. The UK and the USA are countries that use the system. They both have vast resources that are mostly in private hands, but the governments regulate the allocation of these resources through measures such as antitrust laws and taxation.
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