SWOT Analysis of Happy Feet - Case Study Example

Contents Contents 1 Introduction 2 SWOT Analysis 5 PESTLE Analysis 8 Financial Breakdown of Shipping, Refurbishing 13 Stakeholders Involved 16 Sponsorship Opportunities 18 Benefit of Happy feet About Giving back and Conclusion 19 Creation of Good Will 19 Impact and Sustainability 21 Enhance the Role of Charity Organizations 21 Works cited 23 Happy Feet Introduction Hundreds of football boots are being used and bought every day in Abu Dhabi, every 6 months we have a new brand and new styles of football boots that comes out. We all know how It is every boys dream to own his first pair of football boots. Nothing beats owning a pair of Omar Abdulrahman’s (Al Ain FC center forward) old football shoes. Can you imagine the number of football boots that are just thrown away in someone’s basement or in the back of his closet because they don’t fit or because they are missing a shoe lace, and then thrown in the trash because of the space its taking? This is why we have come up with an initiative that aims to give back to under developed countries and countries with less than what we have, by giving back old football boots and kits that are donated by the 5 football clubs in Abu Dhabi. Countries around us such as India, Sri Lanka, Africa and the Middle East are examples where they have been impacted by the underdevelopment of the economy, who don’t have enough resources to be sustainable. They all suffer and have been impacted by this not allowing them to enhance or develop their sporting facilities due to lack of proper support from government institutions. This is only possible through the formation of an organization that performs the duty of coordinating the supply of sports kits and old football boots that can be distributed to the respective countries. Happy Feet aims to allocate containers in the 5 football clubs in Abu Dhabi, Al Wahda, Al jazira, Al Dhafra, Baniyas FC and Al Ain FC. Where players and staff can donate all their old football boots and old kits. Happy Feet aims to be formed in Abu Dhabi, collecting and refurbishing old kits and football boots to send to under developed countries or countries that have been impacted by internal conflict such as India, Sri Lanka, Somalia, Palestine and Syria as well as sports academies that can have the opportunity to improve their recreation activities as well as give them a second chance by doing sports in a safe manner. The impact of lack of equipment and resources in these countries has been manifested by the resulting low performance of the countries in international events or lack of participation at all. Consequently, they are unable to tap into the vast array of talents at their disposal leading them to lose out to more powerful nations about international football. The idea of Happy Feet is that it will be a non-profit organization in Abu Dhabi that will be responsible for collecting sports kits and boots and refurbishing them so that they are in a condition in which they can be used by kids and families in under developed countries, instead of running around and playing football bare foot. Following the refurbishment of the boots and washing the kits, with our coordination with a local shipping company, they will be shipped to these countries where the selected charity organizations of that country will be involved in their collection and then distributing them to camps or sports academies where they will be used by youths of various age groups in sports activities. The refurbishment process will involve the recruitment of volunteers who will be trained to perform the tasks such as collection of the boots and kits, fixing the boots, packing the boots and cleaning the kits. By facilitating the growth of sports among the youth in underdeveloped countries in a safely manner, it will be possible to provide them with a better living and a sense of care and an opportunity to perform their sports at a higher level. It is important to point out that most of the activities by Happy Feet are sponsorship and will be funded, the organization is well aware of the fact that sponsorship is not just an act of charity but a return on investment for potential sponsors. The organization will be required to live up to the expectation of sponsors by performing its duty of collecting and refurbishing boots and kits and promoting a give back to the world initiative and to the development of sports in these countries. By sponsoring Happy Feet, potential sponsors stand to gain some benefits such as the creation of positive PR for the brand and raising of awareness on both organizations and raising awareness of the 5 football clubs that are giving back to these countries. This is important, as it will lead to positive and advantageous brand positioning. However, the activities of Happy Feet will be exclusively aimed at giving back to the community and less aimed at making profit in refurbishing the boots and kits, thus why we will need the support of sponsors and stakeholders. Bibliography Gupta, Amit. "The globalization of sports, the rise of non-Western nations, and the impact on international sporting events." The International Journal of the History of Sport 26.12 (2009): 1779-1790. Hazime, Hanan. "From city branding to e-brands in developing countries: An approach to Qatar and Abu Dhabi." African Journal of Business Management5.12 (2011). Madichie, Nnamdi O. "Sharjah Football Club (UAE): still kings?." Emerald Emerging Markets Case Studies 1.4 (2011): 1-11. O. Madichie, Nnamdi. "Ode to a “million dollar” question: does the future of football lie in the Middle East?." Management Decision 51.9 (2013): 1839-1860. SWOT Analysis The involvement of Happy Feet is accompanied with a number of Strengths, Weaknesses, Opportunities and Threats that have the impact on its success in various ways. Strengths - UAE already donates to various locations around the world including countries that have been impacted. - The organization is better placed in Abu Dhabi where there exists various opportunities for investments in non-profit organizations. - Strong position to implement a CSR strategy for football clubs and Government organizations. - Contributing to help in making a name for the Football clubs in Abu Dhabi. - Contribute and develop the resources in underdeveloped countries. - Giving Exposure to Abu Dhabi Football clubs in and outside of the UAE. - Strong financial position with government support of Emarati initiative. - CSR plan can be implemented to football clubs as their own. - Build on the relationship with charity organizations and countries. - Helping kids play in a safe environment. - Developing talent. - Limit the cause of injury by wearing boots and kits. Weaknesses - Sponsors from Abu Dhabi may not be willing to provide the necessary support to the improvement of activities of the Happy Feet organization due to -The underdeveloped countries have focused their interests in other sectors of the economy thus making football development very difficult. - Little focus on development of football among people in camps or academies rather than providing them with basic needs such as food, clothing and housing. - The constraint of financial needs that will have to be based on the support from sponsors such as the football clubs and Government organizations. - There is no guarantee for the support and the organization is more likely to experience financial shortages if these sponsors do not live up to their promises to provide the support to the organization. - Players and Staff or football clubs don’t accept the containers to be placed at the clubs and lack of interest from staff to donate. Opportunities The opportunity associated with the Happy Feet initiative is that it is located in Abu Dhabi where there is adequate access to transport and communication systems. Since the activities of the company are based on shipping of sports kits, and boots from clubs and distributing them to camps and academies, the efficient transport and communication networks will enable this objective to be met. - There will be the ease of movement of shipping systems such as through road as networks or air transport between Abu Dhabi and the target countries: - There is also the opportunity of the effectiveness in management of activities of the organization due to increased communication systems. For instance, it will be possible to communicate with the charity organizations in selected countries regarding the availability of refurbished boots and kits and the management of Happy Feet in Abu Dhabi. - Enhance communication between the head office of Happy Feet and the main charity organization. - It will be possible to know the demographic characteristics of the youths such as age so that the refurbished kits and boots that enable them to play well are provided. - Opportunity for the 5 clubs to implement Happy Feet as there CSR plan by giving back to the world. - Opportunity for government organizations to make a name for themselves and reach out to the world by giving back. - Opportunity to strengthen relationships with Charity organizations. - Opportunity for 5 clubs to be known internationally. - Opportunity that Happy Feet will promote the image of Abu Dhabi as a nation that is concerned for the needs of people in academies both locally and internationally. This will promote cooperation with charity organizations in underdeveloped countries and there will be increased economic exchanges between them thus leading to growth. Threats There are also a number of threats that will have an impact on the performance of Happy Feet initiatives of collection of boots and kits and shipping them to camps. - These countries that need to be provided with the kits have experienced internal conflicts and political instability that will affect the security of activities of Happy Feet such as cooperation with the charity organizations. - Governments of the target countries may not have the priority of developing local football in camps or academies and they may be unwilling to cooperate with Happy Feet to benefit from its products and services. There could also be border disputes and the efforts to ship the boots and kits may be caused by such disputes. -The effectiveness of the activities of Happy Feet will be dependent on the manner in which it makes use of its strengths and opportunities and addresses the weaknesses and threats. This is because, any organization is subject to challenges and it is the role of the stakeholders to ensure their adequate addressing so that the objectives, vision, mission and goals are achieved. PESTLE Analysis Management of the activities of collecting sports kits and boots from the five football clubs in Abu Dhabi, will be affected by a number of Political, Economic, Social, Technological, Legal, and Environmental factors. The effects of these factors can be understood by conducting PESTLE analysis. Political Factors The sponsoring of the activities of Happy Feet is subject to a number of political interferences that have the potential to affect its effectiveness and the scope of its services to the target recipients. There may be a limitation on the range of services it can provide due to authorization compliance requirements by political legislations. Some laws governing sports in Abu Dhabi may not be adequate in addressing its objectives and mission. There is the possibility that a number of political leaders in Abu Dhabi may create policies that limit the amount of support it receives from the government (Hazime 133). This is based on the fact that Happy Feet will be involved in provision of charity services to these countries. There is also the possibility that the activities of Happy Feet may be affected by the political instability. Thus, the safety of shipping of sports boots and kits and the cooperation with the relevant charity organizations will be highly affected. Other problems that may be faced is lack of cooperation from various stakeholders to execute their mandate in the actualization of the initiatives of the organization. For instance, the bureaucracy nature of the activities of the government of Abu Dhabi may affect the actual implementation of the objectives of Happy Feet. Challenges may be encountered during decision-making such as the manner in which administrative duties need to be conducted and the composition of the management boards. Sponsoring organization may encounter difficulties in performing their mandates such as creation of a fund that enables costs of operation of Happy Feet to be met. Thus, it will require considerable effort of campaign and public awareness before the activities of the company are positively received in Abu Dhabi. Economic Factors Various economic factors such as unavailability of adequate financial support for the management of its activities. - The sponsoring organizations may be less effective in responding to requests for funding thus affecting the effectiveness of its charity activities. - The transportation of the kits and boots may also be affected by increased congestion at the airports due to the impact of other travelers who use these means of transport for business and leisure activities. - The economic condition of the target countries such as increased inflation will prevent their ability to cooperate with Happy Feet in actualizing the provision of kits to youths in camps and academies. This is based on the fact that these countries face a number of economic challenges ranging from scarcity of food to depreciation of their Currencies, which will further prevent them from participating in the activities of Happy Feet. Social Factors The involvement of Happy Feet is subject to a number of social factors such as the culture of the people in these countries. - The residents of the target countries have developed a culture of lack of emphasis on youth involvement in sports. For instance, parents are likely to be less effective in providing their children with the right motivation to participate in sporting activities so that they can improve their talents. It will be necessary for Happy Feet to enhance the motivation practices but this may also result into additional cost to the activities of the organization. - Another social factor that is likely to affect the activities of Happy Feet is the increase in epidemics in the camps such as the communicable diseases and deficiency diseases that affect children in these camps. - The activities of Happy Feet may be negatively perceived in most societies in Abu Dhabi as simply as an organization that tries to benefit from financial support in order to provide charity services in a different country. This implies that the founders of the organization will undertake an intense public awareness so that they are fully aware of its goals, objectives and functions. Technological Factors Technological factors will also determine the level of success of the objectives of Happy Feet such as: -The existence of the latest technologies of communication such as the internet and mobile technology will be an advantage to the company in coordinating its activities such as communication with charity organizations. - The level of success in the shipping of the refurbished boots and kits will be determined by the extent to which latest technologies in transport and communication are applied by Happy Feet. For instance, the use of airline technology will be a determining factor on the quickness in which they can ship the boots and kits to charity organizations. - The effectiveness of administrative duties and performing scheduling operations will also be determined by the extent to which the latest technologies such as the internet and intranet are used by the organization. This will enable sharing of information and making decisions without the need to move from one location to another. Environmental Factors There are various environmental factors that are likely to affect the level of effectiveness of Happy Feet in the donation of sports boots. The existence of windy weather conditions coupled by accumulation of dust in the settlement areas in these countries. This is likely to pose threat to training activities among youths in the camps and academies, they may not use the products effectively. There is also the chance that environmental factor such as the business environment in Abu Dhabi will affect the effectiveness of the shipping of the boots and kits. The level of flight bookings at the airports will affect the ability of the organization to transport to the relevant charity organizations. Legal Issues Since Happy Feet will be an organization in Abu Dhabi involved in an international activity, it will be required that it complies with the legal procedures that companies are expected to follow during operations. The registration hurdle is one of the challenges that the founders of Happy Feet could face. This is attributable to stringent regulations about sports-related entities which have increased in number and most of which are driven by profit margins and other dubious interests. Contractual obligations to sponsors and other entities are also bound to create legal challenges if these are breached or deemed to have been breached. Financial Breakdown of Shipping, Refurbishing The operation of Happy Feet will not require much cost as it is minimal. It will be primarily from the freight needed to transport. We will have volunteers and students from schools to help clean the equipment and fix any boots that need to replace with new laces. Cost for washing the old kits before shipping, so having an agreement with a local laundry to take care of cleaning and washing the kits before being shipped will be costly depending on the number of kits we receive on a monthly basis. Or to be more effective in cost saving, we would take boots and kits as excess baggage and pay by cash. The incurrence of costs in the performance of tasks, undertaking of administrative duties and collection and refurbishing of old boots and kits from football clubs to the collection centers at the organization’s head office before being shipped or transported. For instance, Costs will also be incurred in terms of transport in seeking the sports kits, equipment and other sports facilities from the five clubs that have been asked to participate in the donation. Initial Setup Costs During the set up of the organization, there will be the need to acquire the license for the operation of the organization and the acquisition of the relevant documentations. This is a process that will require costs such as payments for the licenses. The organization will also need to create adequately designed offices that enable its performance of duties with little difficulties and making arrangements for the collection and delivery of sports equipment from football clubs to the camps. It will also be recommended that finances are set aside for the purpose of providing training to the staff of the organization, recruitment of more staff and managers as well as enhancing the human resource aspects. The total Initial setup costs that will cover everything including, wages, refurbishment, transportation, and containers are estimated to be 300,000AED. Administrative Costs It will also be necessary to set aside funds for payments of employees and other committee members involved in facilitating the activities of the organization. In order to achieve this, there will be the need for a budget that enables understanding of various areas of expenditure such as licensing before the organization becomes operational. The following figure shows a budget that will be suitable for the management of finances of the organization when it is in its first year of operation. It is estimate that the total administrative costs will be 10,000AED. Refurbishing Costs There will also be costs during the payment of Laces, Studs, Cleaning the boots. Staff involved will have no cost as we will use volunteers from schools and kids from schools who would like to contribute to this good cause. Minimum wage will be for an employee of a driver that will be recruited to collect all equipment from the 5 football clubs. 2 car drivers at 2,000AED per month. There will be the costs of purchase of various materials used in the refurbishing such as those involved in improving the quality and usability of the kits and boots. In addition, there will be the need to purchase the refurbishing products that enable the staff to perform their tasks in an effective manner. The estimated cost of equipment including Laces, and cleaning products is 50 AED. The overall refurbishing costs including the products will be 15,000AED per month. 4 pairs of boots per hour, 8 hours per day, 5 days per week 32 pairs per day which is 224 pairs a week Cost per pair 15AED Shipping Costs The shipping of the refurbished boots and kits to the designated charity organizations will involve incurring of a cost such either by a cargo company or as excess baggage on cash basis. It is estimated that there will be a total of 1 trip every month from Abu Dhabi to a different country each month Thus, a total of 12 trips per year that will be budgeted for. Each trip during the shipping process will involve a cost of 3,000AED. Thus, equals annual cost of 36,000AED. The summary of the financial breakdown is as illustrated in the table below. Financial Breakdown of Shipping and Refurbishing annually Area of Expenditure Amount in AED Initial Set-Up Costs 300,000 Administrative Costs 10,000 Refurbishing Costs 190,800 Shipping Costs 36,000 Miscellaneous 63,200 TOTAL 236,800 Table 1. Financial Breakdown of the Happy Feet organization Stakeholders Involved Abu Dhabi Sports Council (ADSC) One of the stakeholders that will enable the accomplishment of this initiative is the Abu Dhabi Sports Council. This is an organization that helps support the development of sports and will be involved in activities such as the authorization of Happy Feet to participate in the collection of old boots and kits and refurbishing them so that they can be shipped to selected underdeveloped countries. This stakeholder will be involved in cooperation with Happy Feet to ensure its activities are conducted and the support from the government is sought so that the objectives of the organization are achieved. Furthermore, the Abu Dhabi Sports Council will can be involved by including Happy Feet as there CSR strategy every year by giving back to the world. The Five Football Clubs Al Wahda, Al Jazira, Al Dhafra, Baniyas FC and Al Ain FC, will be another stakeholder in the initiatives of Happy Feet such as during the donation of old boots and kits. These football clubs have been identified to have academies as well as the football team that represent the clubs in events. Thus, it is suggested that through cooperation with these clubs, it will be possible to get the required football boots and kits which are the targeted products by Happy Feet. Happy feet will provide each of these clubs with containers for players of different age groups so that they can drop off the old boots. Shipping Company Another stakeholder will be a shipping company such as Etihad Airways that has a number of cargo aircrafts. This airline will be preferred because it charges lower transport cost and provides efficient cargo transport services. In order to benefit from the services of the airline, its management will be contacted and a Memorandum of Understanding (MOU) will be signed where it will be the first choice airline for Happy Feet during the shipping. A potential sponsor. Charity organizations in the target countries Charity organizations in the target countries will be stakeholders for this initiative In each of these countries, a memorandum of understanding (MoU) will be signed where they will be responsible for the collection of the refurbished boots and kits and distributing them to camps and academies. Since these two organizations are non-profit, it will be possible to sign the MoU and ensure the objectives of Happy Feet are achieved. Sponsorship Opportunities There are a number of sponsoring organizations that Happy Feet will partner with for this purpose. In order to achieve this, the agency will be involved in collaboration with local sponsoring organizations as well as international sponsors. The sponsors will be responsible for provision of funds and resources that enable promotion of football clubs in the target countries. The organization will be involved in seeking funding for the running of a number of activities such as administrative duties and collection of old kits, boots and refurbishment activities so that they can be distributed to the academies where youths undergo training in football. Abu Dhabi Sports Council One of the potential sponsors for Happy Feet will be ADSC. The organization will seek the involvement of the sports department to contribute partly to the activities of the organization such as allocation of payments for the staff and setting aside funds aimed at promoting Happy Feet among the youth and development of academies. Giving access to the 5 football clubs. ADSC will also contribute to the provision of areas where containers can be allocated for collection.. Other Sponsors within Abu Dhabi There are a number of organizations in Abu Dhabi that can provide sponsorships to Happy Feet such as the UAE Football Association, Etihad Airways and Mubadala Development Company. These organizations have been involved in provision of sponsorships to football clubs in the UAE and outside. For instance, Mubadala Development Company has been involved in promoting diversification of the economy in Abu Dhabi. It is under the establishment and ownership of the government and it has been involved in the management of long-term capital investments for the purpose of delivering strong financial outcomes and social benefits to various sectors of the Abu Dhabi economy. The sponsorship of Mubadala can be in form of the costs of shipment of the refurbished kits from the organization to the target charity organizations that distribute the kits to the respective countries. Involvement of International Sponsorships Happy Feet can cooperate with established clubs in the development of football activities in these countries as the selection of sports equipments and kits to be distributed to academies. Happy Feet can also seek the sponsorship of travel companies such as airlines to provide them with subsidized transport costs for the refurbished boots and kits to the targeted countries Benefit of Happy feet About Giving back and Conclusion Enhancement of talent Development Among Youth in Camps and Academies The activities of Happy Feet will be effective in ensuring the success of youths in the involvement in sports activities by providing them with boots and kits from the 5 clubs. Creation of Good Will The sponsors that provide various forms of support to the activities of Happy Feet will benefit from goodwill of their interests in the development of football. In addition, the goodwill obtained by various sponsors such as the Abu Dhabi Sports Council and other local sponsors will enable the clubs also benefit from increased awareness of their brand and can attract more potential sponsors for the clubs internationally when they see they are giving back to the world. There will also be goodwill for charity organizations in these countries that will be involved in the distribution of the sports boots and kits to the relevant beneficiaries such as the youths in the camps and academies. Enhancing the Culture of playing Football in Camps Developing academies that don’t have money for the right resources Provide new opportunities Provide a sense of hope A sense of good will Benefit of Transfer of Image In most cases sponsoring organizations are not focused on presenting their brands during provision of sponsorships to sports academies or during the development of talent among the youth. On the other hand, the involvement of Happy Feet in the collection and refurbishment of kits and boots from the selected clubs and shipping them to the relevant charity organizations will be an initiative that will enhance brand image building. Consequently, sponsoring the activities of Happy Feet will be a strategy for memory reactivation. Due to the link between Happy Feet and sponsors for the provision of sports attires and boots to the target camps and academies, there will be a more positive attitude towards sports in general and more focus on these under developed countries. This is also viewed as a strategy that will enhance the seriousness with which the government of Abu Dhabi handles sports activities so that the country can be involved in the improvement of football in undeveloped countries. Impact and Sustainability Promote the Development of Football and its academies The overall impact of activities of Happy Feet is that it will promote the development of football in underdeveloped countries where it is not well developed. There will be increased utilization of talents and youths who show the skills in football will have the opportunity practice more sports with shoes to run with. The opportunity to join a club where they can develop their career possibly. it will be possible to promote the popularity of Abu Dhabi football Club Improve the health and Fitness of children in underdeveloped countries it will be possible to achieve a state of healthy condition for children in under developed countries. This is due to the fact that playing football promotes health and fitness of an individual. The impacts of diseases brought by lack of exercise will be prevented. Another general impact is that there will be increased diplomatic ties between UAE and under developed countries. Thus it will be possible to provide additional support in various areas such as improving the conditions in these countries. Enhance the Role of Charity Organizations The involvement of charity organizations will be effective in monitoring the condition of youths in the countries and creating solutions that can be implemented under cooperation with Happy Feet. This is because, Happy Feet and Charity organizations are two non-profit making organizations and their roles can supplement one another. There is also the impact of improving the general image of Abu Dhabi in promoting the football clubs through the initiative of refurbishing and shipping old boots. Works cited Hazime, Hanan. "From city branding to e-brands in developing countries: An approach to Qatar and Abu Dhabi." African Journal of Business Management5.12 (2011). O’Brien, James, Ramin Keivani, and John Glasson. "Towards a new paradigm in environmental policy development in high-income developing countries: The case of Abu Dhabi, United Arab Emirates." Progress in Planning 68.4 (2007): 201-256. Ponzini, Davide. "Large scale development projects and star architecture in the absence of democratic politics: The case of Abu Dhabi, UAE." Cities28.3 (2011): 251-259. http://www.nationsonline.org/oneworld/third_world.htm Program in Sports Management – 2015-2016 Final project HAPPY FEET Done By: Saif Thabet Houriya Taher Submission Date: 25 June 2016 Read More