Different Challenges and Opportunities faced by Newcastle United FC

MAIN BODY

Theory to link problem/opportunity statement

Different organisations employ various theories to develop solutions to increase productivity in the vulnerable field based on the problem they face. NUFC management will perform brainstorms on the various elements of operating expenses and increase overall revenue as to achieve a better operating profit (Negash, 2014). The basic concept of performance evaluation is to allow companies to raise revenue and operating profit and maximize value for shareholders. This can be done by connecting the plans to methods and implementation via the main systems of aiming, modelling, preparing, scheduling, near management and financial analysis. Balanced Scorecard (BSC) is the world's leading performance management program in terms of priorities, steps, goals and programs relative to one another. The main four viewpoints have been used in a balance scorecard: consumer, finance or accounting, internal business operations, training and development. The significance of satisfying customers seems to be the main aspect of any company. The 'consumer viewpoint' relates to fans that not only make a significant contribution to ticket prices but also watch matches on TV or Internet on regular basis. The financial viewpoint focus to determine the financial information which help in performing the accurate and regular performance review of respective club in regard of income, operating expenses and gross profits. The financial health of NUFC might be a lagging indicant that defines the outcome of previous judgement, but it is still consider to be most crucial for future development. The perspective of inner business practices focus on the efficiency of a business in a specific time period (Dhar and Stein, 2017). For example, throughout annual holiday breaks, NUFC can domestically concentrate on elements of the club. The recruitment of stakeholders is also another dimension of internal business procedures. For the development of importance, placement and talent management are essential. Lastly, the development and training viewpoint focus on the learning of new and advance technologies which is important for continuous growth of team member and whole club. Therefore the manager of Newcastle united Football Club must review performance of player by considering various indicators like aggregate rating in tournaments, performance in training and individual participant attributes. The creation of a BI dashboard system can help to periodically calculate, track and maintain the thorough operating performance (Mooraja, Oyona and Hostettlerb, 2019). The scorecards are being used to record strategic adjustment and achievement with goals and objectives.

Critical analysis and justification of developed dashboard

From the annual reports of NUFC of last 5 years, most of the details are mainly collected for creating the dashboard report. The documenting background of the club can be seen under one of the websites of the department, which listed required information on a chart. the respective dashboard was prepared using significant financial metrics, such as turnover, operating expenses, operating margins and net income (Rud, 2019). A platform would enable administrators, borrowers and creditors recognize current performance deficiencies and enhance performance of the company. It was necessary to obtain data from multiple variables that make a contribution to the complete revenue and operational costs of the different sections and also to incorporate it into one table. For the past five years, NUFC's first level success in a table with data-frame has already been shown. The use in folded and grouped configuration inside the dashboard of various graphs, like the diagram, column graph and bar diagram, enables the BI subscriber to view data graphically attractive. Information can be represented as feasible by the data-frame and the sparkling shown within a pivot table.

In such a table using pivot table for the last 5 years the NUFC leader quality was shown. By using different diagrams, like a pie diagram, column diagram and bar diagram in the positioned and grouped layout, the BI user can view data on a visually appealing basis. Data can be considered viable by the subtotals in a subsequent table format. The section and diagram demonstrate the comprehensive operating expenses and revenue evaluation. The operating costs are very much based on income, pension, insurance, depreciation, lease numbers, amortization as well as other charges (Kerzner, 2011). The biggest achievement comes from wages, pay-as-you-go and loan sums to minimize in order to improve percentage for profit. The primary issue is the fact that the sales of tickets do not increase despite an increase in media and advertisement profits. This diagram shows a 35% rise in profit margin in 2014, while the figure continued slightly equal in 2015 and declined by 3% in 2016. Furthermore, the header graph illustrates operating expenses that appeared to be monitored quite well in 2015 such as 90.1 million GBP and 96.5 million pounds in 2016, relative to 125 million GBP in 2014, due to higher personnel costs as well as other operating expenses. Gradually, minimum turnover and elevated operating costs used to have a significant negative influence on a the club, with their failure of £ 5 m and £ 1.7 m including both in 2012 and 2013. Between 2014 and 2015, the team gained popularity to £ 4.8 m and £ 19.1 m, overall, but again dropped significantly to £ 0.9 m, respectively. The collaboration will introduce new concepts for the work environment of the organization. This is apparent from the trend line which shows the pattern between various earnings (Raynus, 2011). Due to the current balance between revenue and operating expenses, the net income increased significantly to £18.8 and GBP 32.5 million in 2014 and 2015 respectively. In 2016, net income again fell by nearly 85% to £4,6 million. Due to the low margin, the Club did not consider paying dividends and the one possible explanation for that is definitely the champions league football as the NUFC get the 18^th position. Whereas sales from company catering and advertising have improved, management does need to concentrate on enhancing the gaming performance and thereafter raise ticket revenues (Oliver, 2016). Well before the 2016 champions league qualification, United revenue and profit fell year by year the latter of them most strongly however the club even now made a lot of money. The revenue of the team decreased by 3%, from £ 128.8 million to £ 125.8 million and operating income almost twenty times lower at £ 0.9 million compared with the previous period (down at £ 19.1 million). Furthermore, in next year's transactions, the club could almost expect loss due to increasing cost and reducing of operating income. The Premier League as well as its clubs have a number of effects. It requires people they employ who operate within the city and travel they support, as well as forums for cities, towns and industries to participate in contact with the outside world of the world.

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Conclusion and Recommendations

In the end of this report it is concluded that NUFC administrators must begin putting money in decent players first. The teams must be instructed and assessed according to the principle of structured scorecard's teaching and development point of view. This helps the team performing well in ligaments to satisfy the fans. This will trigger for growth in tickets sales and advertising coverage. It is recommended that prices and wages be kept low so the huge profits stays at the beginning of the year. NUFC must put more money in advertising and boost its promotion income to boost its aggregate profit margin. They will offer low cost tickets for highly targeted consumers, such as providing high volume tickets to schools where undergraduates purchase them and thus selling more reserved seats. This also means that even a multi-combined team that will more inspired and enthusiastic the entire NUFC. This will also gain better control through the organisation of various races and religions Administrators should productively handle the internal communication. For instance they needs to recruit talented youngsters with a maximum of capital. Apart from wages, players must be provided infrastructure and services which make the club proud to play. At the other side, current trainer could use this talent correctly and ensure that the football league ends up winning ever more tournaments and will continue to play throughout the premiere league. In addition, manager must consider at the financial viewpoint carefully since in 2016, sales dropped 3 percent(£ 3.9 million), the biggest aspect of which is a decrease in media revenues from £ 77.2 million to £ 72.7 points compared to figures for 2015. The figures are as follows. Furthermore, ticket sales decreased by £ 1,7 m and therefore bad performance and champions league are explanations for this reduction, as described in the BSC consumer segment. A recommendation will therefore be have a thorough analysis of the dashboard for executives and accountant personnel, since that will assist them to make individual financial choices efficiently. They must also raise revenues by offering the practice facility for activities like concerts especially during peak-season pauses through promotional marketing. Through advertising well in the competitive £market the ticket revenue will increase that will improve the overall financial stability of NUFC. Operating expenses must, at the other side, be reduced across salaries and wages. The use of SAS reports would enable executives track their spending effectively and improve productivity in the years to come. It will certainly help everyone to boost profits and attract more number of investors to make a investment which will give better future returns. In several years, the training field approach has also been hard to improve. The manager said the club expenditure was inappropriate to enhance in previous interviews. It really is apparent but without huge money you could not make great improvements.

Related Sample:Modern Techniques used for Evaluation of Newcastle Football Club

REFERENCES

• Lee, J. H., and Park, S. C. 2015. Intelligent profitable customers segmentationsystem based on business intelligence tools.Expert systems with applications, 29(1), 145-152.2.
• Negash, S. 2014. Business intelligence. Communications of the association forinformation systems, 13(1), 15.3.
• Dhar, V., and Stein, R. 2017. Seven methods for transforming corporate data into business intelligence (pp. 126-148). Englewood Cliffs, New Jersey: Prentice Hall.4.
• Rud, O. P. 2019. Business intelligence success factors: tools for aligning yourbusiness in the global economy  (Vol. 18). John Wiley & Sons
• Kerzner, H. 2011. Project Management Metrics, KPIs, and Dashboards. NewJersey: John Wiley & Sons.
• Oliver, P. 2016. Devloping Global Management Competencies - Analytics.Edinburgh Gate: Pearson Education Limited.
• Raynus, J. 2011. Improving Business Performance Management. London: CRCPress Taylor & Francis Group
• Mooraja, S., Oyona, D., and Hostettlerb, D. 2019. The balanced scorecard: anecessary good or an unnecessary evil? European Management Journal, 481-491

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