Nottingham Forest PESTEL

2.2 External Analysis :

PESTEL Framework :

A PESTEL analysis is divided into 6 points, corresponding to the 6 letters making up the anagram. This tool is used to define the environment in which the club operates. This is the first step in the strategic analysis.

Political :

• The club is subject to the governing bodies of football on several levels. From a national point of view, it is under the authority of the Football Association (FA), while at the European level it is controlled by UEFA. These two bodies can make decisions about the club in case of financial mismanagement for example. Thus, Financial Fair Play, to which the club is subject, resulted in a ban on recruitment in 2014, following the club's poor financial results.

Economical :

• The city of Nottingham is one of the 10 most dynamic British cities, with strong growth in employment, and superior corporate development in the rest of the country. In addition, the city is home to more than 60,000 students. These various factors mean that the inhabitants of the city have a strong economic potential, which they can invest in ticketing or merchandising.
• Taxation of 50% of salaries above 150,000 Pounds Sterling, which concerns the majority of the players of the club in England.
• The club's sponsorship contracts depend to a large extent on companies linked to the club's current owner. This creates uncertainty about the club's long-term funding. Moreover, they are not local sponsors in the vast majority of cases, creating a break between the image of the club and its sponsors.
• Debts of the club have been sponge following the acquisition of the club by the Greek businessman and president of the Olympiakos FC, Mr.Evangelos Marinakis.
• Much of the revenue comes from the broadcasting of matches. The club averaged (for season 2014/2015) of its revenues from TV rights was 26%. It will be even more this year with the renegotiation of TV in the British football.

Social :

• The city of Nottingham has 321,500 inhabitants (including 60,000 students), and its urban area is 730,000. This pool of people represents a potential supporters that the club could touch. In addition, population growth is 1.2% per year.
• It’s a multicultural city, composed of a cosmopolitan population that finds itself united in the stadiums. Football is considered as a social cement.
• The supporters of the club are the cornerstone of the club. They represent the base of ticketing and merchandising revenues. Indirectly, they participate in the sporting results of the team by fulfilling the role of the 12th man in the stadium. Annoy the fans would put the club in jeopardy.

Technological :

• Development of the club's digital presence through social networks; 312 766 loving the Facebook page of the club, 251 000 followers on Twitter and 53 600 on Instagram.
• Website of the club serving as a communication and sales support (merchandising & ticketing). The majority of ticket sales are now online.
• The spread of matches evolves with technology. We have moved from a radio / newspaper model to a television dominated model. Eventually, we should witness the emergence of a hybrid model with the broadcast of matches in cross-channel.

Environmental :

• Environmental awareness since the 2010s: regulations concerning the construction of new buildings and their carbon footprint.
• Consumer pressure on ethics and environmental protection: the emergence of a willingness to consume responsibly.

Legal :

• Safety regulations in and around the stadium. Accentuated following the terrorist attacks in Europe in recent years. Respects of UEFA rules on stadiums.
• Measures taken following England's hooliganism in the 1990s.
• "Laws of the Game" concerning the rules of football, and the running of the various competitions.

Identification of Threats and Opportunities :

• Opportunities :

• The Increase in the amounts of generalized transfers in the UEFA zone (allows to sell former youth player from the academy at more interesting price).
• The acquisition of the club by a Greek businessman is an important opportunity for the club to join back the elite of English football absent since 1999.

• Threats :

• Relegation in League One the third Division in England could be a disaster for the club.
• Its direct competitors in the English championship also possess considerable financial power : during the transfer periods Nottingham Forest face his competitors on markets and it’s becoming more and more difficult to get a confirmed player for a reasonable price.
• Increase in the amounts of generalized transfers on the UEFA zone (Difficulty recruiting)
• Strengthening of the financial Fair Play by 2018.

Porter's five forces analysis :

The Porter matrix is a tool for analyzing the forces present in a competitive universe. There are five important forces that determine the competitive power of a company in

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