INTRODUCTION:
Borussia Dortmund is a well renowned German football club, which has achieved success over the period of time. Due to its marvellous success and achievements, over the period of time it has earned the satisfaction and confidence of its fans as well as it has also increased its overall fan base over the period of time.
The club later listed itself as a commercial organisation at the end of 1999. The club owned many world class players which has enabled the club to earn many trophies and football cups. In addition to this, it has attracted many shareholders by performing effectively in the club.
Furthermore, due to some inconsistencies the club faced serious financial crisis and had reported a continuous loss over the period of last 5 fiscal years. This has increased the challenges for the managers of the club that what strategies should they implement in order to save the club from dissolution.
DILEMMA:
Following inconsistencies have occurred due to which the club has faced losses.
- Investors were not allowed by the top management of the club to take dominant position. The management of the club has full control on the club, irrespective of their share holdings.
This has decreased the overall confidence and satisfaction of shareholders as well as it has also decreased the overall attraction of the investors for the club - In 2000, HeikoHerrlich, one of the premium player of the club who has scored approximately 75 goals in 243 league games, got injured which has decreased the overall competency of the club. Announcement of the fact has substantially decreased the share price of Dortmund to a considerable limit.
- Due to the inability to qualify for the international tournaments such as Champion’s league, the income of the club has been limited considerably. Thus, this has increased the overall gap between the club’s income and the salaries of the players.
- Amoroso, who was also the key player of the club had also left BVB due to his injury and argument with the coach and other team members. This had also created a significant negative impact on the business of the club.
Thus, these events has decreased the overall financial strength of the club as well as this has caused the club to incur huge losses...................
This is just a sample partial case solution. Please place the order on the website to order your own originally done case solution.
Related Case Solutions & Analyses:
GSKs Acquisition of Sirtris: Independence or Integration
Merck: Managing Vioxx (E)
Carrefour China: Maintaining Its Past Glory or Drowning in the Sea of Competition
Negotiation Self-Assessment
Toyota: Repositioning the Brand in Europe (A)
How Apple’s iPhone 6 Prices Can Help Its Asian Suppliers
Virgin Active Gym: The Best Place To Shape Your Life
The Nissan Corporation
Aldi Brand
Target Corporation: The Canadian Decision
