Creating a Company – AllSport Ltd Case Study

Type of paper: Case study

Topic: Business, Company, Sports

Pages: 4

Words: 1100

Published: 2019/10/04

Abstract

AllSport Ltd is a leading sports retail store based in the United Kingdom. It was started in February 2008 with one store in London. It has since expanded to four other locations around the UK. AllSport Ltd retails a wide range of sporting gear and equipment. The company is also engaged in the production of selected sporting gear.  This report was compiled so as to examine the various aspects involved in creating and running a business. The roles of various managers were examined and SWOT and Pestle analyses carried out to examine the company position. It was found that AllSport was in a good position to grow and establish a solid brand presence in the UK and in Europe. It was recommended that management should use the analyses to establish weak points within the company and correct them to build a more successful business.

Introduction

This report provides a detailed report of AllSport Ltd. Based in the United Kingdom. The report was compiled as a result of intensive group work by Mosab, Fahad, Yousf and Mohammed. AllSport Ltd was chosen by the group because it is in the sports retail sector because sports is highly appreciated in the UK and is therefore a flourishing sector.

Reflections and Learning Points

The compilation of this report was a challenging task. The group members were introduced to the concept of ‘team work’ which is essential in the creation and running of business which brings harmony and a sense of purpose for the team members. The team was exposed to the steps involved in creating a business and gained knowledge in the planning process involved.

AllSport Ltd

AllSport Ltd is a leading sports retail store in the United Kingdom. It was started in February 2008 with one store in London. AllSport Ltd is on solid ground. Since its inception it has been growing steadily and expects to continue expansion into other countries in Europe. At the end of the financial year 2008/2009 it had a sales turnover of £ 5 million. In the second financial year, 2009/2010 its profit margin increased to £ 17 million. This year saw the company open other stores located in Manchester, Portsmouth, Perth and Dublin.

AllSport Ltd retails a wide range of sporting gear and equipment. The company is also engaged in the production of selected sporting gear. AllSport has a range of prices suitable for any class of persons. It also retails major sporting brands so as to satisfy the selective customer. AllSport has a labour force of 350 employees in total. Each store employs fifty people with the exception of headquarters which employs 150. This is because the headquarters is involved in production, thus requires more employees.

The main competitors of AllSport include: Sports Shoes; Sweatshop; Walktall; and Shoes International. All these companies enjoy maturity in the market, having been formed long before AllSport. Suppliers of AllSport include: Nevada Wholesale; Trade Sunglasses; Caribee; CMS Tackle Wholesale; Fusion Sport; and LeSports among others. These suppliers are able to supply needed stock on demand.

Organisational Structure

Chief Executive Officer

The CEO oversees and manages the overall running of AllSport. He ensures that AllSport aligns itself with its strategic vision both externally and internally. The CEO therefore ensures that all departments within the company function smoothly and gears it towards achieving its objectives (Blanchard, 2009).

Human Resources Manager

This role is assumed by Yousf. The HR manager is involved in recruitment, where talented personnel are identified, recruited and trained. He is also involved in ensuring that the performance of employees is exemplary and ensures that AllSport conforms to set personnel management practices. This position also ensures that employees receive reasonable compensation and benefits. In addition, it is the responsibility of the HR manager to ensure that employee records are properly maintained (Arbnor and Bjenke, 2008).

Finance Manager

This role is assumed by Mosab. The financial manager is responsible for overseeing preparation and compilation of financial reports. He also directs the investment strategies of AllSport. In addition to operating and executing the strategies of cash management, the financial manager also finds cost effective means of utilizing financial resources, thus increasing its profitability.

Production Manager

This role is assumed by Fahad. The production manager is responsible for ensuring that the sporting gear produced by AllSport is produced efficiently. He also ensures that the goods are of required quality.

Sales Manager

This position is taken up by Mohammed. The sales manager is responsible for ensuring that AllSport achieves its target sales volume annually. He also manages the employees in the sales department. The sales manager should motivate the sales force, impart sales ethics into them and develop a sales culture.

Internal Analysis – SWOT Analysis

Strengths

  • Adequate capital base which is sufficient to carry out its operations.
  • It has managers who are competent in their fields of specialization.
  • Located in towns where there is a constant flow of customers.
  • Is able to price products competitively because it produces some sporting gear.
  • The sporting industry is vibrant and growing, which ensures that AllSport is able to make profits.

Weakness

  • Only located in the United Kingdom thus are unable to take advantage of other markets.
  • It is a relatively new company and has to compete against sporting stores with established presence in the market.
  • The management needs to operate more cohesively in order to achieve AllSport’s objectives.

Opportunities

  • AllSport should explore establishing more stores in other locations in the UK and establishing brand presence which is strong.
  • It should also explore establishing stores in other countries in Europe.
  • It should establish an online store which is a strategy that is gaining popularity among retailers and shoppers.

Threats

  • AllSport does not have an online store like its competitors thus threatening its long term viability as the industry is evolving to become more internet-based.

External Analysis – Pestle Analysis

Political

The sporting industry is affected by European Union legislations, both active and proposed. The greatest threat is posed by the Tobacco legislation which would prevent English teams from being backed by English sponsors and would therefore not be able to advertise their products. This would affect AllSport because it is part of its strategic five-year plan to sponsor English teams and thus provide an avenue for advertising.

Internally, it is necessary to control team jealousies occurring particularly amongst in the sales teams of stores in different locations. The sales people require further training in team work. In addition, the management team also needs to work more cohesively to achieve set goals (Marthur and Kenyon, 2008).

Economic

While the national economy has suffered from global economic turmoil, the UK sporting industry continues to do well. AllSport has benefitted from this having made profits since inception. It is expected that higher profits will be made once the global economy is stabilized.

Sociological

The people in the UK are culturally highly appreciative of sports in its various forms. They are also very health conscious and take personal fitness and exercise seriously.

Technological

AllSport is faced with the challenge of providing the latest technologies in the sporting industry. Technology in this industry is dynamic and it is imperative that AllSport offers the latest in sporting technology.

Legal

Certain changes in EU legislation for example the proposed Tobacco legislation may influence the advertising strategy of AllSport negatively.

Environmental

The sporting industry is becoming more internet-based as major brands establish online stores. AllSport should also try to do the same so as to remain competitive.

Reflections and Learning Points

AllSport Ltd is clearly a vibrant, young business in the sporting industry in the UK. Learning the various roles of managerial positions was challenging. We were able to explore and understand the duties which the human resource, finance, sales and production managers undertake in companies. This has helped us learn that it is important to ensure that roles in the companies are properly defined to guard against any conflict in carrying out duties. Internal and external analyses using SWOT and Pestle reveal that AllSport is in a good position to grow and establish a solid brand presence in the UK and in Europe. According to Blanchard, (2009), management should use the analyses to establish weak points within the company and correct them to build a more successful business. Analysing a business using these techniques (SWOT and Pestle Analysis) was a skill which will prove invaluable to each individual in the team in the future.

References

Arbnor T and Bjenke B  (2008). Methodology for Creating a Business Knowledge. Sweden Sage Publications.

Blanchard R. (2009). Creating Wealth with a Small Business;  Strategies, Tactics and Models for Entrepreneurs. South Carolina; Booksurge Publishing LLC.

Mathur S. and Kenyon A. (2008). Creating a Valuable Business Strategy. Oxford; Elsevier Ltd.