Analyzing Richmond Football Club: Management, SWOT, & Engagement

This report examines Richmond Football Club's community engagement strategies, highlighting their importance for the club's image, financial stability, and adherence to governing policies. It delves into both financial and non-financial benefits derived from these engagements, such as increased popularity, market share, and revenue from ticket sales and sponsorships. The report also presents an internal and external organizational analysis using the SWOT and PESTEL models, respectively, to identify the club's strengths, weaknesses, opportunities, threats, and the impact of political, economic, social, technological, environmental, and legal factors. Furthermore, the analysis employs the five forces framework to understand the competitive landscape and strategies for success, addressing threats from new entrants, competition, and other external pressures.

MANAGEMENT IN PRACTICE 1
MANAGEMENT IN PRACTICE
Name of student
Name of instructor
Name of institution
Date

MANAGEMENT IN PRACTICE 2
Richmond’s community engagement
Richmond football club believes that community engagement is having a bold and
strong hospitality for the society (Anon., 2018). The football club has the culture of
taking care of the surrounding through various projects meant to make the world a
better place. Additionally, the football team engages in social events meant to
entertain and interact with the public. For example, the Richmond football club has
open training sessions where the fans are allowed to watch the players at no fee
(Anon., 2018). Therefore, Richmond is able to bring the community together and
enjoy the sport, which creates unity. Moreover, the football club provides an
opportunity for membership to the club to willing persons through payment of a small
fee. The members are awarded various privileges such as free entry to the stadium
during matches and other events. Richmond football club also provides outstanding
facilities such as the prestigious Maurice Rioli room for hosting corporate and private
events. Furthermore, the club also sponsors local football clubs where the best players
get a chance to join the club to play professional football. The sponsored clubs get a
coach from the Richmond and are allowed to use the training facilities such as the
gym. In addition to that, the club also participates in corporate social responsibility
events such as cleaning the streets and allowing free health checkups at the club’s
medical centre (Bhasin, 2018).
Importance of community engagement
Community engagement is very important for the club since most of the income
generating activities rely on the environment. Richmond football club should have a
positive image to the society to maintain and increase the number of fans who attend
matches and follow the team (Anon., 2018). The club realizes that more income is

MANAGEMENT IN PRACTICE 3
generated when many fans attend matches and pay the club membership fees.
Additionally, the fans also increase the revenue when purchasing jerseys and other
football items from the Richmond stores. Therefore, the club has should have satisfied
and happy fans at all times (Cole-Ingait, 2018).
In addition to that, community engagement is important to the club for fulfilling the
club policies. The club’s governing laws and the government require the members to
engage in events that improve the society (Hinds, 2018). Therefore, the club engages
in cleaning activities, sponsoring local football teams, improving schools and
mentoring children with special needs such as cerebral palsy.
Richmond’s non-financial and financial benefits of community engagement
The club achieves both financial and non-financial benefits by engaging in
community events. The non-financial benefits include such as increased popularity for
the football team. Increased popularity is important for football clubs, which means
that the more followers are an advantage to the club (Juneja, 2018). The increased
popularity leads to increased fans who watch and cheer the team during matches. The
many fans cheering in the stands motivate the players to play a good game thus
increasing the chances for victory. Additionally, the popularity increases the
membership to the club, which results in having many loyal fans participating in the
club events (Juneja, 2018).
Likewise, the community engagement also results in an increased market share for the
club (Pollard, 2018). The community events create a positive image among the people
thus increasing the willingness to follow the club, buy club items such as jerseys and
support the team during matches. Additionally, the large market share and positive
image increase the following on social media platforms such as Facebook, Twitter
and Instagram.

MANAGEMENT IN PRACTICE 4
On the other hand, community engagement results in financial benefits such as
increased revenues from the sale of match day tickets (Pollard, 2018). The club sells
tickets at the entrance to matches held at the home stadium. Community engagements
boost the club’s image resulting in more fans willing to watch matches at the stadium.
Additional benefits include having sponsors who generate income for the club. The
sponsors prefer clubs with a large following to increase the popularity of the
sponsored brand (Thompson, 2018). Richmond club has used community engagement
to increase the fan base, which has resulted in companies such as Jeep, Nib, Puma,
Swinburne and Hostplus to market through the club. The marketing companies pay
fees, which increase the club’s financial power. Moreover, the club achieves financial
advantages such as tax reduction from the local governments, which appreciate the
level of community engagement shown by the club. Therefore, the club pays less tax
since the government offers subsidies to corporates that develop the community. The
lower taxes reduce Richmond’s expenses and increase the revenues earned. Therefore,
community engagement is very important to the club (Siu, 2018).
External and internal organisation analysis
The Richmond football club is affected by both internal and external factors. The club
cannot control the effects of the external environment. However, the internal
environment factors are easy to influence and derive benefits. The SWOT analysis
assists in analysing the internal factors. On the other hand, the PESTEL, five forces
and the VIRO assist in analyzing the external factors affecting the club. The various
models explain the challenges faced by the organisation and the level which the
operations are affected. Therefore, the SWOT model will focus on the internal factors
of the organisation.

MANAGEMENT IN PRACTICE 5
Richmond’s management has developed various methods to deal with the challenges
posed by the internal and external environment. The community engagement strategy
has assisted the club by reducing the hostility of the challenges posed by the
community who make the external environment. Additionally, the club has developed
various strategies to solve the internal environment challenges.
Analysis of internal factors using SWOT model
The club uses the SWOT management model to deal with the internal environment.
The model has assisted the club to identify the various strengths, weaknesses,
opportunities and threats. Therefore, the club has developed various solutions to
tackle the challenges arising internally using the model.
Richmond football team has various strengths that increase the chances of survival in
the league. The club capitalises on the strengths to earn points in the AFC league. A
strength to Richmond football club includes the large number of fans who turn up
during matches (Hinds, 2018). The fans create a good atmosphere in the stadium,
which results in the players fighting hard to win the games. The fans are a secret
weapon for the team to get points even in difficult matches since opponents are jeered
and demoralized. Additionally, the fans possess the ability to make away stadiums
feel like home grounds for the players, which reduces nervousness and increases the
will to perform and win.
An additional strength includes the ability to maintain strong players at the club. The
players sign prolonged contracts and do not demand to terminate contracts to join
opponent teams. Therefore, the club is able to achieve continuity in the culture of
playing excellently and fighting hard to avoid losing points. Moreover, the retention
prevents the club from spending in the market to find replacements with qualities that

MANAGEMENT IN PRACTICE 6
fill the gap left by the departing players. For example, Richmond football club has
retained Jack Riewoldt who is the club’s vice-captain and a premiership winner
(Naghten, 2018).
Moreover, the club is able to beat close competitors such as Geelong cats. The
Geelong cats have strong players who can challenge Richmond tigers for the league
(Hinds, 2018). However, the Tigers were able to emerge victorious during the league
clash. Additionally, the club has emerged victorious in other clashes, which is a
strength that enables the club to compete for the title.
However, the club has weaknesses that include loss of players to injuries and
suspension. The loss weakens the team during difficult matches and puts stress on the
other players due to the high demand for performance required in the absence of
missing payers. For example, rib and back injuries affect the players, which reduces
performance (Naghten, 2018).
Richmond football club opportunities include the chance to create history by having
the largest following and membership (Tyeson, 2018). The club announced that the
paid-up members amounted to 100,000 individuals, which is a number that most AFL
teams have never achieved. The large number means that the club has enough fans to
fill the stadium during matches. Additionally, the large number has increased the
revenues greatly by paying membership fees.
However, the club also faces threats in the league from other strong teams that
compete for the league. Despite Richmond FC leading the table in the current
premiership, the team faces competition from the second and third teams, which are
the West Coast and Collingwood Fc.

MANAGEMENT IN PRACTICE 7
Analysis of external factors using the PESTEL model
The PESTEL model is important to the club due to the assistance in identifying the
different external factors affecting the club (Anon., 2018). The model enables the
development of solutions by identifying the factors that cause problems and the
factors that are beneficial.
Political factors
Richmond football club enjoys a stable Australian political environment that enables
the team to operate smoothly. However, the government pressures the club with high
taxes charged on the players’ salaries and the team’s revenues (Government, 2017 ).
The players usually receive very high salaries, which attract more taxes from the
government.
Environmental factors
The club faces environmental challenges during the rainy seasons since the fans are
not able to attend matches. Therefore, the team has few fans cheering the players and
less revenue is earned from the sale of tickets. However, the football club has engaged
in activities that improve the environment such as encouraging recycling (Anon.,
2018).
Social factors
The club faces various social challenges arising from activities such as gambling and
hooliganism among fans. The society has a negative attitude towards gambling, which
has resulted in a reduction of revenue collected from the department (Anon., 2018).
Additionally, some fans have sometimes demonstrated violent behaviour towards
rival fans, which has caused fights in the stadiums. The violent behaviour represents a
social challenge. However, the society is a benefit to the club due to the loyalty to the
team during good and bad times.

MANAGEMENT IN PRACTICE 8
Technological factors
The club has currently faced the need to have an updated website and social media
sites to match the technology advancements. Most fans read football news on the
internet, which prompts the team to develop an application that has all news relating
to the club (Pasteur, 2018). Moreover, the club has an application for customers to use
on laptops and smartphones while betting instead of lining up at the betting counter.
Economic factors
The economic changes pose a challenge to the club with the players’ salaries
increasing with the market demand and inflation. The players’ salaries sometimes
tend to soar to an amount that the club cannot afford (Anon., 2018). Therefore, the
club is forced to increase the match tickets and the costs of merchandise such jerseys.
Legal factors
Richmond football club faces legal issues such the ownership of players at the club.
The legal issue arises when players intend to terminate the contracts or during the sale
of players. The legal conflict arises as to who owns the player between the club and
the player’s agents. Additionally, legal challenges also arise when negotiating the
correct price to charge to companies sponsored for marketing purposes (Anon., 2018).
Analysis of the external environment using the five forces framework
The five forces analysis enables the club to understand the necessary strategies to
succeed in the market by beating competition. The failure to beat competition could
lead to the club’s failure (Juneja, 2018). Therefore, with the five forces framework,
Richmond club understands exactly what to do to win in the competitive football
world.
Threats of new entrants

MANAGEMENT IN PRACTICE 9
The club faces the challenge of new teams joining the league through promotion from
the lower leagues. The new teams qualify to the premiership and bring in new
footballing philosophies and better player to challenge for the league (Anon., 2018).
Therefore, the team faces the difficulty of added competition in winning the league.
Threat of substitution
The club provides entertainment to the fans and other viewers through the sport of
football. The game competes with other sports such as basketball. Therefore, the club
should provide beautiful and appealing football with excellent players who entertain
the fans (Government, 2017 ).
The bargaining power of customers
The customers have a very low bargaining power due to the little choice is given
when determining the prices of services. Richmond club sets prices without
considering the fans reaction since most still pay the high costs (Thompson, 2018).
The customers accept to pay the high prices due to deep loyalty to the team, which
means that the customers could incur any price without worry. Therefore, the club
could sell jerseys at very high prices and still make high sales.
The bargaining power of suppliers
The agents selling players to the teams tend to set very high prices for the players.
The team incurs very high charges when buying the players from other clubs. The
costs increase due to high switching costs experienced by the player (Pyle, 2018).
The Extent of rivalry between competitors
Richmond football club faces very high competition from other teams in the league.
The teams compete to acquire the best players, coaches and backroom staff.
Therefore, the Richmond club ensures quick contact with players showing unique
talents to strengthen the team before the opponents (Pollard, 2018). Additionally, the

MANAGEMENT IN PRACTICE 10
league is very competitive and any moment of weakness that leads to dropping points
could cost the premiership title.
VIRO model analysis of the external environment
The VIRO model analyses the club’s resources, uniqueness and the resulting
competitive advantage (Cole-Ingait, 2018). The analysis will assist to identify how the
club could use the various resources at hand to win challenges caused by the external
environment.
Value
The club has very talented players with unique qualities. Additionally, the resources
present at the club are of high value such as the sponsorship deals. The unique
football talents are difficult to get at the market although the club’s continued victory
in the premiership assists to attract high profile players (Thompson, 2018).
Imitability
The club holds resources and a culture that not most clubs can copy. The pool of high
profile players puts the club in a position that other clubs cannot match due to lack of
appeal. Additionally, the club has wide finances to pay the players better salaries than
what other clubs could afford (Bhasin, 2018).
Rarity
The club has the most fans in the league who have paid up full membership. The fans
cheer the team in all matches and support the club during tough times. The kind of
fans who support the club and pay up full membership is hard to find in the football
world. Therefore, Richmond has a fan base that other clubs lack (Cole-Ingait, 2018).
Organizational support
The club owners offer support to the club and players at all times. The owners pay for
proper training facilities and buy new players to increase the talent within the club.

MANAGEMENT IN PRACTICE 11
Additionally, the club supports the players by employing the best coach to train the
players to perform at the best level possible (Government, 2017 ).
The relationship of community impact and community engagement
Community engagement and social impact positive link since an increase in
community activity increase the impact. The community engagement actions such as
CSR creates a positive image for the team, which results in more club members.
(Cole-Ingait, 2018). Additionally, activities such as sponsoring local football teams,
improving health and education improve the social living standards of people in the
community.

MANAGEMENT IN PRACTICE 12
Bibliography
Anon., 2018. Marketing Theories-PESTEL Analysis. [Online]
Available at: http://www.professionalacademy.com
Anon., 2018. Porter's Five Forces. [Online]
Available at: www.mindtools.com
Anon., 2018. Richmond Football Club. [Online]
Available at: https://www.richmondcorporate.com.au/home
Bhasin, H., 2018. Marketing91. [Online]
Available at: www.marketing91.com
Cole-Ingait, P., 2018. The Socioeconomic Factors Affecting Small Businesses. [Online]
Available at: www.smallbusiness.chron.com
Government, A., 2017. Australia Competition and Consumer Commission. [Online]
Available at: https://www.accc.gov.au
[Accessed 15 August 2017].
Hinds, R., 2018. Tiger Fans Loom as Richmond's Secret Weapon. [Online]
Available at: mobile.abc.net.au/news/2018-07-30/richmond-tigers-fans-are-teams-secret-
weapon-richard-hinds/10049580?pfmredir=sm
Juneja, 2018. Management Study Guide. [Online]
Available at: https://www.managementstudyguide.com
Naghten, T., 2018. Jack Riewoldt Signs Two-Year Contract Extension at Richmond Tigers.
[Online]
Available at: www.sportingnews.com/au/afl/news/jack-riewoldt-signs-two-year-contract-
extension-at-richmond-tigers

MANAGEMENT IN PRACTICE 13
Pasteur, L., 2018. Personal SWOT Analysis. [Online]
Available at: https://www.mindtools.com
Perks, R., 2017. Quality Control Systems and Customer Satisfaction. [Online]
Available at: acdemic.mintel.com
[Accessed 21 April 2018].
Pollard, C., 2018. Key Features of a PR Campaign. [Online]
Available at: https://www.publicrelationssydney.com.au
[Accessed 22 April 2018].
Pyle, S. O., 2018. 3 Digital Marketing Challenges for 2018 (And How to Overcome Them).
[Online]
Available at: www.bizjournals.com
[Accessed 14 May 2018].
Siu, E., 2018. 30 Brands With the Best Digital Marketing Campaigns. [Online]
Available at: www.singlegrain.com
[Accessed 14 May 2018].
Thompson, R., 2018. Stakeholder Analysis. [Online]
Available at: https://www.mindtools.com
[Accessed 26 May 2018].
Tyeson, C., 2018. Richmond Just Became The First Club in AFL History to Crack 100,000
Members. [Online]
Available at: https://www.pedestrian.tv/sport/richmond-just-became-the-first-club-in-AFL-
history-to-crack-100000-members/

MANAGEMENT IN PRACTICE 14