TEESSIDE BUSINESS SCHOOL

MEDITERRANEAN UNIVERSITY
COLLEGE

Strategic and Change Management

Case study 1: Tottenham Hotspur Plc

Dr. A. R. Morden

George H. Papadakis, PhD

Q.1: Factors a football club takes into

account for developing its strategy:
Environment (micro- and macro-):
Opportunities threats product life cycle
Values:
Corporate culture

Organisational mission
Stakeholders objectives
Organisational power structure
Resources:
Value chain
Product portfolio
Core competences

Tottenhams environment:
Opportunities:
Broad range of income sources (e.g. program sales, merchandise,
sponsorship deals, etc.)
Raising interest of public in sports and specifically in football

Diversification opportunities
Threats:
Declining football attendance
Increasing competition from other sports
Increasing costs associated with players salaries and transfer fees
Decreasing stadium capacity due to safety and seating accommodation
Mature product

Tottenhams values:
Corporate culture mission:
Exciting and entertaining football
Success in competitions
Star players

Stakeholders objectives:
Fans
Shareholders investors

Players (stars vs. youths)

Organisational power structure:
Clash of interest between investors and fans?
Pressures on management and threat of short-term thinking

Tottenhams resources:
Product portfolio:
Football club
Diversification in distribution of sportswear, ladies fashionwear, publishing,
catering, entertainment and conference facilities

Too much diversification?

Core competences:
White Hart Lane
Reputation for its past successes and big names
Loyal fans
Attractiveness of product (football teams exciting gameplay)

Alternative strategies for managing football

players:
Recruiting expensive star players:
Increased revenues (positive association between attendance and stars)
High possibilities of success in competition
Development of enthusiasm in fans

High costs in salaries and transfer fees

Developing young players:
Potential for high return when selling them as stars

Risk of alienation of fans if performance drops

Low cost strategy but demands investment in training facilities
A matter of balance: short-term vs. long-term thinking
A matter of competitive advantage sustainability