How to do Internal and External Analysis of a company strategically, and on the basis of this how to interpret.

1. STRATEGIC MANAGEMENT
STRATEGIES FOR INTERNALAND
EXTERNAL FACTORS

2. ARSENAL VS CHELSEA
STRATEGIC MANAGEMENT
Azmina Submitted
Kashif Ali Zahid to
Qurat ul Ain Sir Faisal Qureshi
Muhammad Saad Qureshi
Muhammad Asad Ahmed
Rehan Ali

3. ARSENAL VS CHELSEA
VS

4. ARSENAL

5. INTRODUCTION OF ARSENAL
 Arsenal Football Club is an English professional
football club in North London that plays in the
Premier League. One of the most successful clubs in
English football, they have won 13 First Division
and Premier League titles and 10 FA Cups. They
hold the record for the longest uninterrupted period
in the English top flight and are the only side to have
completed a Premier League season unbeaten.
Arsenal are also the third most valuable club in the
world as of 2010, valued at $1.2 billion.

6. CHELSEA

7. INTRODUCTION OF CHELSEA
 Chelsea Football Club is an English professional football club based in west
London. Founded in 1905, they play in the Premier League and have spent most
of their history in the top tier of English football. Chelseahave been English
champions four times, FA Cup winners six times and League Cup winners four
times. They have also been successful in Europe, winning the UEFA Cup
Winners' Cup twice.
 The club had their first major success in 1955, when they won the league
championship. Chelsea won several cup competitions during the 1960s and
1970s, but after that did not win another major title until 1997. The past decade
has been the most successful period in Chelsea’s history, capped by winning
Premier League titles in 2005, 2006 and 2010, and reaching their first UEFA
Champions League final in 2008.
 The club's home is the 41,841 capacity StamfordBridge football stadium in
Fulham, where they have played since their establishment. In 2003, they were
bought by Russian oil magnate Roman Abramovich, who is estimated to have a
networthof 17 billion UK Sterling.

8. IFAS OF ARSENAL
Internal Strategic
Factor
Weight Rating Weighted
Score
Comments
Strength
Strong fan binding/loyalty 0.10 5 0.5
Good training system for
players
0.05 4 .2
Corporate social
responsibility(Community
work)
0.05 5 .25
Strong marketing of Arsenal
brand and its merchandise
0.15 4 .6
Large capacity of Emirates
stadium with capacity of
60,000 spectators
0.1 3 .3

9. Internal Strategic
Factor
Weight Rating Weighted
Score
Comments
Weakness
Labeled in media having
defensive approach
0.10 2 .2
In consistent performance
in the league matches
0.2 3 .6
Lack of world class
players
0.10 3 .3
Drenched English premier
League
0.05 4 .2
Labeled in media having
defensive approach
0.10 2 .2
Total 1.00 3.55

10. EFAS OF ARSENAL
External Strategic Factor Weight Rating Weighted
Score
Opportunities
To attract lower class and
students
0.10 2 .2
To play matches in other
European countries & south
American countries
0.15 4 .60
IPOs in Stock Exchange 0.10 2 .2
Introduce membership/loyalty
card & give discount on buying
merchandise of Arsenal
0.10 1 .10
Attracting good international
player by offering better
0.20 4 .80

11. External Strategic Factor Weight Rating Weighted
Score
Comments
Threats
Change in crest without
consulting fan. They might
end up losing fans
0.05 3 .15
Competitors attracting good
players from Arsenal and
other teams
0.15 4 .6
Fan loyalty can change due to
switch in teams
0.10 3 .30
Fan conflict with
management over name of
stadium
0.05 3 .15
Total 1.00 3.1

12. IFAS OF CHELSEA
Internal Strategic Factor Weight Rating Weighted
Score
Comments
Strength
Strong fan binding/loyalty 0.15 3 .45
Good marketing of Chelsea
and its products
.15 3 .45
Strong sponsorship 0.10 5 .5
Strong marketing of Chelsea
brand and its merchandise
0.10 3 .3
Large capacity of stadium
with capacity of 42,000
spectators
0.10 5 .5
Strong fan binding/loyalty 0.15 3 .45

13. Internal Strategic Factor Weight Rating Weighted
Score
Comments
Weakness
Not too popular as compared
to its rivals
0.1 2 .2
Lack of Management 0.15 2 .3
Departure of good can
hamper its performance
0.1 2 .2
Drenched English premier
League
0.05 3 .15
Not too popular as compared
to its rivals
0.1 2 .2
Total 1.00 3.05

14. EFAS OF CHELSEA
External Strategic Factor Weight Rating Weighted
Score
Comments
Opportunities
To explore global fan bases
like India, China, South
America
0.15 2 .3
IPOs in Stock Exchange 0.15 2 .3
Introduce membership/loyalty
card & give discount on
buying merchandise of
Chelsea
0.15 2 .3

15. EFAS OF CHELSEA
External Strategic Factor Weight Rating Weighted
Score
Comments
Threats
Competitors attracting good
players from CHELSEA and
other teams
0.15 4 .6
Fan loyalty can change due to
switch in teams
0.10 3 .3
Financial instability by buying
expensive players
0.2 2 .4
Players and management
conflict
0.1 2 .2
Total 1.00 2.40

16. TOWS OF ARSENAL
IFAS
Strength Weaknesses
EFAS
Opportunities
 Due to brand loyalists of
the fans, they must go
abroad to play matches
 Due to strong financial
backing, buy famous
competitors players.
 Attract new fans from other
clubs
 To attract students and lower
class in an already saturated
market
Threats
 To overcome Fan loyalty
due to switch in players
with membership/loyalty
card.
 Fan conflict with
management over name of
stadium, whenever decision
is made, the management
 To overcome threats of
players switching, Arsenal
must give more non-cash
incentives.

17. TOWS OF CHELSEA
IFAS
Strength Weaknesses
EFAS
Opportunities  Due to brand loyalists of the
fans, they must go abroad to
play matches
 Introduce
membership/loyalty card &
give discount on buying
merchandise of Chelsea, due
to strong marketing
strategies
 Not too popular as
compared to its rivals, they
must buy famous players
 Due to Lack of
Management, they must
hire best entrepreneurs
Threats  Fan loyalty can change due
to players switching in other
teams, same can be
 Financial stability can be
achieved by good
management

18. ARSENAL SPACE MATRIX
 Financial Strengths (FS) Environment Stability (ES)
 Return on Investment = +4 Tecnological Change
= -3
 Leverage = +3 Rate of Inflation = -4
 Liquidity = +3 Demand Variability = -2
 Working Capital = +4 Price range of competitive products=
-4
 Cash Flow = +3 Barriers to entry= -5
 Ease of Exit = +2 Competitive pressure= -6
 Risk Involved = +2 Price elasticity demand= -4
 Total Score = +21 Total Score = -28
 Average = +3 Average = -4
 Industry Strength (IS) Competitive Advantage (CA)
 Growth Potential= +6 Market share= -2
 Profit Potential= +5 Product Quality= -2
 Technological know how= +4 Product Life Cycle= -3
 Resource Utilization= +4 Customer Loyalty= -1
 Capital Requirement= +4 Competition’s capacity utilization= -2
 Ease of Entry= +2 Technological know how= -3
 Productivity, capacity, utilization= +3 Control over suppliers and
 Total Score = +28 distributors= -3
 Average = +4 Total Score = -16
 Average = -2.28
 ES Average Score = -4 + Average FS Score( + 3) = - 1
 Average CA Score = -2.28 + Average IS Score ( 4) = + 1.72

19. ARSENAL SPACE MATRIX
FS
ES
CA
IS

20. ARSENAL SPACE MATRIX (RECOMMENDATION)
•Arsenal strategy is Aggressive
•The competition faced by Arsenal is stiff as other League teams are also
offering good contracts to international players which are a great asset to
any club team

21. CHELSEA SPACE MATRIX
 Financial Strengths (FS) Environment Stability (ES)
 Return on Investment = +3 Tecnological Change = -4
 Leverage = +3 Rate of Inflation = -4
 Liquidity = +2 Demand Variability = -2
 Working Capital = +3 Price range of competitive products= -4
 Cash Flow = +2 Barriers to entry= -5
 Ease of Exit = +2 Competitive pressure= -6
 Risk Involved = +2 Price elasticity demand= -4
 Total Score = +17 Total Score = -29
 Average = +2.43 Average = -4.14
 Industry Strength (IS) Competitive Advantage (CA)
 Growth Potential= +6 Market share= -4
 Profit Potential= +5 Product Quality= -3
 Technological know how= +4 Product Life Cycle= -3
 Resource Utilization= +4 Customer Loyalty= -2
 Capital Requirement= +4 Competition’s capacity utilization= -3
 Ease of Entry= +2 Technological know how= -4
 Productivity, capacity, utilization= +3 Control over suppliers and
 Total Score = +28 distributors= -3
 Average = +4 Total Score = -22
 Average = -3.14
 ES Average Score = -4.14 + Average FS Score( + 2.43) = - 1.71
 Average CA Score = -3.14 + Average IS Score ( +4) = + 0.86

22. CHELSEA SPACE MATRIX
FS
CA
IS
ES

23. CHELSEA SPACE MATRIX
 Chelsea strategy is aggressive considering
the fierce competition among the clubs
 It has to overcome its financial instability
 By visiting teams abroad it can overcome its
financial crunch