Etisalat and Barcelona FC

 

Etisalat and Barcelona FC

Introduction

Etisalat is a Telecommunication Company located in the United Arab Emirates that provides communication services to 18 countries in Asia, the Middle East and Africa. It is ranked position 13 in the world based on the mobile size network in the world with 100 million subscribers. It is a renowned internet hub providing internet services in the Middle East and the largest carrier of international voice traffic in the Middle East and Africa. The company was founded in 1976 by International Aeradio and the local partners. It was not until 1983 when the company ownership was transformed, having 60% of the total ownership owned by the United Arab Emirates government while 40% of the remaining was sold to the public. This was a move made by the government to acquire the company from foreigners that is Britain, through the change of ownership structure (Chang, 2006).

The United Arab Emirates government enacted a law (Federal law no 1), which meant that Etisalat was to provide wireless and wired telecommunications in the country and linking the country and other foreign countries. In addition, the company was given the authority to license other telecommunication companies (Epstein & Manzoni, 2004). This was if the companies wanted to own, import, manufacture or even use telecommunication equipment. It is out of this that the company got the entire power to regulate and monopolize the telecommunication sector. Out of the monopoly, the company made a profit growth rate of 80%. Above all, the greatest achievement for the company was the starting of inter-continental operations in 2001. It operated under the brand name Ufone, hence operating out of Islamabad.

On the other hand, Barcelona is a football club in Catalonia that was formed in the year 1899 by Joan Gamper. It was after his call to the people of the region to form a football club that players responded to his idea and formed the football club. Barcelona performed well in the first five years making it one of the best teams in the regions. This was because of good coordination and excellent management of the club. Players were devoted to make money out of the game through club sponsorship by business companies. The team was also intended to provide employment for most players and create room for new talents. The good skills of the team made it recognized across the world as one of the prominent teams in the world. It is vividly clear to say that the team’s success was determined by the good management of the team. This is because of the efficiency of the board’s operation.

It is beyond doubts that the unique agreement between Barcelona and Etisalat was mainly determined by the management team, communication procedures, management plan and the strategic decision making between the two parties.

The job of the managing teams

Management of both Etisalat and FC Barcelona was done by the management teams in the respective teams. The first president of the team was Gamper who had a good history in football, a factor that made him to be credited as the team’s inspiration (Epstein & Manzoni, 2004). He had before been a player of FC Excelsoir in his homeland, Canton, a factor that culminated to him being renowned for his excellent skills in football. During his leadership, Barcelona won its first trophy, Copa Macaya and managed to play in the Copa Del Rey final in which it lost 2-1 to Bizcaya (Scott, et al, 2007). The president had a major goal of helping the club own its own stadium, a factor that would help it generate more income that would make the club financially stable to pursue its goal of being the best football club in the world. Gamper’s good management of the team initiated his subsequent recruitments as the president of the club. He was the club’s president for five different terms between the year 1908 and 1925.

Gamper’s dreams were later achieved in 1909 when the club relocated to camp de la Industria, which could hold a capacity of 8,000. He did not give up but forged forward to launching a campaign to recruit more members. In 1922, he managed to acquire 10,000 members of the club. Later on, the club was moved to Las Cortes with a capacity of 22,000 and expanded to 60,000. Gamper later recruited Jack Greenwell as Barcelona’s first manager.

The signing of the four-year agreement between Barcelona and Etisalat has enabled Etisalat and its entire supplementary to become an international telecom partner of Barcelona in their relevant nations (Scott, et al, 2007). Etisalat has the rights of branding and advertising for Barcelona across the world hence a chief manager of the team in building up the team’s image. In addition, it also has the rights of hosting or organizing two global games for Barcelona in whatever place they like in the world hence the opportunity for them to host the matches in the United Arab Emirates (Chang, 2006). This has enhanced the popularity of the company internationally. The company also makes money out of the matches because it manages all the funds that are contributed courtesy of the matches. It is also beyond doubts that the matches lead to the economic growth of the United Arab Emirates hence a boost to the nation’s gross domestic product. People spend so much in the country during the matches, a factor that increases firms’ profits in the United Arab Emirates (Epstein & Manzoni, 2004). This is especially in the tourism sector where the economy is boosted by different industries such as hotel industry.

Etisalat supports the fact that football creates a large social circle in the country hence the reason as to why many people specialize in achieving the best out of the game (Scott, et al, 2007). This means that Etisalat intended to create a large global base of football fans. Etisalat’s Chairman, Mr. Mohammad Omran, endorsed that football creates passion, unity and leadership between people in the world. This is especially to the youths who have talent in football and others who cherish the game. Etisalat had a goal of bringing the world together by the use of the football game hence the reason for the signing of the agreement. In addition to this, the company would use the opportunity to venture into connecting different countries in the world by the use of its telecommunication network technology.

According to the chairperson, it is beyond doubts that football creates a large social network between different countries. This is evident with the world cup championship, which brings together different teams from different countries across the world to compete. This is usually a social event where territorial boundaries are opened and people given the opportunity to interact. Etisalat also had the aim of making football an amazing sport by its telecommunication technology (Scott, et al, 2007). This is because; it provided an international telecommunication network that promoted football. People would be united together through the watching of football matches. Many people who lack the passion for the sport would be attracted by the motivating matches that would be aired courtesy of Etisalat. This is true because a big population of people living in different countries enjoy football matches by watching them courtesy of telecommunication networks.

The president of FC Barcelona supported that the club intention was to project its image to the Middle East and Africa hence the association of the club and Etisalat, a prominent telecommunication company would be beneficial to the club (Chang, 2006). This was a wise idea by the then club president because this would definitely create a good image for the club. In addition to this, Etisalat is a financially stable company hence would support the team financially. The partnership between the club and Etisalat would see Barcelona to its success as the world’s best football club. It is therefore beyond doubts that the job of the managing teams of both Barcelona and Etisalat was to position the club and the company to a higher level. For Etisalat, the company would gain international popularity hence an opportunity for it to make more profits and grow. On the other hand, Barcelona would be supported by the company hence enable the club have a strong team and a strong popularity too. This means that both managing teams worked towards benefiting their organizations by signing up of the agreement.

Communication procedures used

It is the peculiar partnership between the organizations that brought about Etisalat’s enormous growth. Its communication customers grew to 80 million in 18 nations. The communication procedures that were used by both parties and especially Etisalat were meant to boost the organization’s growth (Epstein & Manzoni, 2004). This was pioneered by the financing of the Etisalat football league and other matches courtesy of Etisalat. This procedure by Etisalat was to gather more customers from different countries. For instance, the Brazil-UAE football league was intended to bring unity between Brazil and other teams in the world. It was also a great opportunity for Etisalat to extend its communication network between different countries in the world by sponsoring the league. Etisalat was capable of marketing its products by the use of football matches. This was also bolstered by the presence of the telecommunication network, which created a large communication network for the company.

Etisalat was excited by the increase of the number of its customers and profits hence took another approach of making football an exciting game by providing a telecommunication network to broadcast the games (Chang, 2006). This was to enable many football fans enjoy football at their destinations if they could not manage watching the game at the stadium. The use of the telecommunication network would enable people watch the matches broadcasted to them courtesy of Etisalat. Barcelona would benefit from this communication procedure because it would feature in many leagues organized by Etisalat.

Digital technology was used to ensure that people watched the football matches hence big income to the club. This was provided through the internet, television and radio broadcasts. This was definitely the best communication procedure that Etisalat used in ensuring that the company achieved its goal. It is evident that these communication procedures supported the marketing of Barcelona as a club and the extension of Etisalat’s communication boundary. This means that the communication procedure carried out by Etisalat was viable toward the achievement of both parties’ goals.

            Since Etisalat was a giant in the telecommunication industry, different communication procedures were used in the signing up of the agreement (Scott, et al, 2007). Electronic mail, fax and telephone were used in enhancing communication between the partners. Etisalat’s management team could communicate with Barcelona’s management team over the phone, e-mail or fax. This was during the initial stages of the deal. After familiarization, the managers of the football club met the operational management team of Etisalat in a face to face discussion. After a series of negotiations between the partners supported by different modes of communication, a conference was held in signing of the agreement between the partners. The Chairman of Etisalat could communicate to Barcelona’s president over the phone in missions of ensuring the success of their deal. Fax was also used in the communication between the two partners. After the signing of the deal, the internet (Email) became the main mode of communication between the two parties. It is therefore beyond doubts that the communication procedures used between the two parties were made successful by use of the internet.

 

Plan for management

The strategic plan plotted by Etisalat was to achieve the best out of the partnership. It had a plan to increase its profits, extend its communication network in the world and become the leading telecommunication company. In order for it to increase its profits, it was hard for the company to hike its prices in fear of losing its customers (Scott, et al, 2007). The only solution to this target was to extend the corporation’s network in order to earn more profits from volume sales.

On the other hand, Barcelona had its management plan of becoming one of the world’s popular best football clubs. The solution to this was for the team to be able to finance or host football leagues. The club would participate in the leagues and through their participation, they would earn popularity and experiences in football hence become recognized in the world.

The goals of both parties complement each other hence the reason as to why they had to unite in striking their deal. The objective of both parties was to benefit from their association hence the reason as to why the parties had to come up with the right communication procedure (Chang, 2006). The discussion between Barcelona’s management team and Etisalat’s management team enabled both parties to come up with the concrete communication procedure that would meet the needs of their set goals. The strategic plan for the partners was to use football as a method of benefiting both teams. Etisalat sponsored Barcelona to play with other international teams making the team gain popularity and earn more from the game as it extended its communication networks. The efficiency of the partnership would be run by appointed people from both sides of the parties hence the combination of their efforts would lead to a perfect plan for management of the partnership.

 

Decision-making

Decision-making was done by the management teams from both sides. Concrete and possible decisions were made in achieving the set goals in both parties. This involved contributions by specific members of both parties on the terms and conditions to be applied in the agreement. After the parties recognized that, the deal was viable for both organizations, right decisions were plotted for action to take place. This was through combined efforts between both parties. The planning of the leagues was done by FC Barcelona while Etisalat was to sponsor the leagues and use the opportunity to advertise its products. It is therefore clear that decision-making took place between the parties through coordination and support from both parties.

SWOT analysis

In their SWOT analysis, the association had its strengths in football and telecommunication providing services. The weakness of the association during the initial days was the lack of experience in the venture because it was the first unique association between organizations (Scott, et al, 2007). It was though considered as a minor weakness because both parties were determined to achieve their goals. Concerning the opportunity, it is evident that both teams had an open opportunity to exploit of which they managed. The threats of the association were competition from other companies or the coming up of a sterile project. After the SWOT analysis, FC Barcelona and Etisalat worked towards the achievement of their goals. It is therefore proven beyond doubts that the signing of the four-year agreement between Barcelona and Etisalat was a viable plan for both parties (Chang, 2006).

Conclusion

            Agreements are signed by parties with specific objectives or concrete agendas that need to be implemented in their corporations hence they are important to both sides. Companies are therefore out to benefit from the agreements. The signing of the agreement between FC Barcelona and Etisalat Telecommunication Company has been of great importance to the parties and the entire world. The world has benefited from Etisalat’s services of telecommunication because of the social network created. Etisalat has enabled people in different parts of the world socialize in different ways. People are able to learn more about other countries hence promote interaction between people from different nations. The peculiar partnership between Barcelona and Etisalat was a breakthrough to the success of other telecommunication companies and football club. They discovered that they would make more profits due to the enormous support from their partner (Scott, et al, 2007). This was a blueprint to super operational management of other corporations hence made the world business a competitive field that needed innovative organizations with fruitful ideas. It is therefore clear that the signing of the agreement between Barcelona and Etisalat was of great benefit to the entire world. This is evident by trade carried out between different nations in the world. The association between Etisalat and FC Barcelona remains to be a positive strategic plan to everybody in the world and especially to Barcelona and Etisalat.

References:

Chang, J. F. (2006). Business Process Management Systems: Strategy and Implementation. Boca Raton, FL: Auerbach Publications.

D’Andrea, G., & Quelch, J. A. (2001). Cases in Strategic Marketing Management: Business Strategies in Latin America. Upper Saddle River, N.J.: Prentice Hall.

Epstein, M. J, & Manzoni, J. F. (2004). Performance Measurement and Management Control: Superior Organization Performance. Amsterdam: Elsevier JAI.

Rodes i Català, A. (2000). Los fundadores del F.C. Barcelona. [1st ed.]. Barcelona: Edicions Joica.

Scott, A. J., & Garofoli, G. (2007). Development on the Ground: Clusters, Networks and Regions in Emerging Economies. London: Routledge.

 

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