The Economic and Social Impact of Stoke City FC

The English Premier League is a global brand. Stories abound of travellers from Stoke-on-Trent travelling to far flung corners of the earth, getting into a cab, pub, or conversation and being asked; “Where are you from?” the traveller responds; “I am from Stoke” only to be told; “I know Stoke FC!”, a list of players is usually reeled out including Peter Crouch and co, and from then onward, the conversation takes on a new dimension of familiarity and friendliness.

Peter Crouch Goal Celebration

 

English Premiership Clubs have fans in all corners of the world. Jerseys are sold in Africa, Asia, the Americas, Europe and Australia. Matches are watched on all sorts of devices and football players are household names with kids dreaming of growing up to be like their heroes or even just meeting them someday.

 

Beyond the pitch however, there is another dimension that is closer to home. Football clubs are generating huge revenues and investing these in a variety of ways with a huge impact to their local economies. For example, Stoke FC’s revenue was £11 million in the 2007/2008 football season and then Championship promotion boosted the Club’s revenue even more from commercial, match day and broadcast streams. In the 2015/2016 Stoke FC’s total revenues rose to £119 million, making them the 9th in the Premier League. The growth in the Club’s income since joining the Premier League has enabled it to significantly increase its investment in the region and grow the profile of the Club and the city at home and abroad.  Some key regional and social impact statistics for Stoke FC for the 2015/2016 season are shown in Table 1.

 

Table 1: Key Regional Economic and Social Impact of Stoke City FC Statistics (2015/2016 Season)
2,391 international visits
119,000+ domestic tourists
£7 million visitor spending
301 direct Club employees (FTEs)
£1.3 million spent on local community initiatives
£29 million spent on Club supply chains (some local)

 

In addition to the impact highlighted in Table 1, the Club has also expanded its stadium to boost match day attendance and attract more visitors to the region, invested in players from the UK and abroad to extend the reach of its fan base to other areas of the globe, invested around £4million into its academy providing local young people with opportunities to develop their football careers at the Club, and invested in the Community Trust to work with the wider community to target individuals who want to get back into education, employment or generally improve their health or mental well-being.

 

Not only does success on the pitch attract visitors to the region who spend on travel, accommodation and food and drink, there is the indirect effect from the supply chain and the induced impact from increased employee spending. Analysis from Ernst & Young LLP shows that Stoke City FC generated a total Gross Value Added contribution of 132 million to the region during the 2015/2016 season. £108 million was directly contributed via the club and its tourism, a further £13 million was generated via indirect effects in local supply chains and £10 million was generated via induced effects. This activity also attracts businesses to locate their operations within the area.

Staffordshire University students and staff with Tony Scholes (CEO of Stoke FC)

 

Granted that a lot of the players might not live in the region, the activities of Stoke City FC resulted in an estimated £66million total liability to the Exchequer in 2015/2016. The presence of Stoke City FC also supported many FTE jobs in the regional economy during that period. 301 people were directly employed by the club, 853 people were employed by relevant supply chains, 401 people were employed via tourism to watch Stoke FC, and a further 682 were employed because of induced effects.

 

Beyond these, the Club supports a variety of initiatives to improve the lives of individuals and communities, working with a number of stakeholders including schools, local government and wider supporting organisations (e.g. the premier league). Community activities are delivered by Stoke City FC’s Community Trust (SCCT) which was founded in 1989 and became a registered charity in 2004. Ernst & Young LLP estimate that around 10,900 people have participated in community and charitable programmes in 2015/2016. 119,600 day trips were organised and 304 people have gained at least one qualification as a result of the Clubs initiatives. During the period under review, 10,246 hours of volunteering community work was done with the result of £8.7 million savings for the local community on physical wellbeing and £2.9 million savings on mental well being from increased physical activity.

 

With these key statistics, it is not hard to cheer for our local team. The sporting and commercial success of the Club in recent years, which includes breaking their transfer record twice in the 2015/2016 season, has allowed Stoke FC to further embed itself as a key member of our local economy. We at Staffordshire University will continue to cheer for the club. You should do the same too 😊😊😊!!!

 

If the X is positive integer – how much should a new IPhone cost?

by Dr Andras Kenez

Several sites reported that Apple use different pricing for its different markets. While the US customers can get the new phone from $999 (£740), the UK prices starts from £999 ($1349). The new X costs only £754 in Japan, £813 in Hong Kong, £952 in China, but the customers in some countries pay even more than in the UK: it is £1027 in France, £1044 in Italy. The most expensive is Hungary with its £1073 price tag: it is cheaper to book a round trip flight to NY and pick up your new phone on your travels.

This difference in the final price is coming from the difference level of consumption taxes (VAT) mostly. The standard rate of VAT is 20% in the UK, 22% in Italy, 25% in Denmark and Sweden and world record 27% in Hungary. Some countries also have other taxes in the final price – therefore up to 25% of the price we pay will directly go to the exchequer of the country. The US prices are exclusive of sales taxes, which vary state-by-state (from 0% in Delaware to 7.25% in California). Without the taxes European prices would be about the same – around £830.

But this is still £90 more than in the US – why? The answer is the foreign exchange rates and channel distribution costs. The higher amount is the price of the exchange risk. Apple is not just calculating the Sterling (Euro etc.) cost of the product, because this value can change due to the changes in currency exchange rates. The stronger the dollar, the less Apple gets for the same price in Pounds (Euros). To avoid this risk, they must build in a buffer to the price against the exchange rate risks – otherwise they would have to amend the retail prices day by day.

Channel distribution costs means the costs of the logistics, all the costs of doing business in the country and the costs of transferring the money from an international market.

Apple Iphone Iphone X Technology Cell Phone

Apple Iphone X Technology Cell Phone

There is also a strategic element in pricing: they ask more here because they can. Companies want to maximise their profit, therefore the final price is not just a calculation of the costs. It is not just Apple – many tech companies ask more for their services in the UK from Amazon to Netflix, and the market verifies their pricing.

After explaining the difference between the prices worldwide, let’s take a look to the price itself. What is behind the $999 (£740)?

The retailers margin is also included in the price. When selling Apple products, resellers’ margin is lower than 10%, some estimate it to be 3-5% in case of the IPhones. Though some products have 40-70% margin, Apple have a pretty good bargaining power when we talk about IPhones. Do not expect price discounts from retailers.

Even if we calculate with 10%, it means that £666,  remains for Apple. Based on the previous financial reports of the company, the production costs less than a third of the phone’s price, while the profit rate is around 40%. It means that the production costs (processor, memory, touchscreen, sensors, cameras, battery, packaging and production) is around £222, the other costs (marketing, research and development, logistics, licences, software) is around £178, and profit of Apple is £266.

Could it be cheaper?

First, this is a strategic decision to keep the prices high. It is positioning: Apple price their products higher than their competition to create a so called perceived value. They want to express their exclusiveness and superior quality in the price. It differentiates the product: a meaningful difference that helps consumers justify spending more. Higher prices mean status and helps control the demand. This brand is not for everyone. You should feel the price.

And customers also pay the price premium for the brand. Customers values the quality, the credibility, the innovation, the social responsibility – and willing to pay for it. Brands can burnish the buyer’s reputation, increase confidence, and can form communities based on the attachment to a product. To build a strong brand is expensive – therefore you can see this not just in the profit rate but also in the marketing costs. So, no, I am afraid it could not be cheaper.

And why is it £999? The 99 ending is psychological pricing: the perception of the customers is different if they see the 9s at the end of the price. It creates the illusion that the phone is cheaper than it really is.

 

Sources: Apple, European Commission, Telegraph, Quora, Guardian, CNN, Business Insider, Digital Trends

Business School accounts on twitter

Main School accounts

Business School @BusinessStaffs several staff and students have access to this account, the main users are Prof Jon Fairburn and Angela Lawrence. Ranked No 1 by Edurank for Business Schools

Tourism and Events – @tourismsu Prof Jon Fairburn and students

Management Team

Dr Peter Jones @pgwjones_dr Dean and ‘selfie king’

Rachel Gowers @rggowers   Associate Dean Recruitment and e-sports

Alison Maguire @AMAG45   Head of Department- Accounting, Finance and Economics

Dr Vish  Maheshwari @DrVish_M Head of Business, Management and Marketing

Academics

Tony Bickley – @tonybickley    Accounting  and #parlez-vous digital

Prof Rune By @Prof_RuneTBy Organisational Behaviour & Change Leadership

Isabel Clarke @theisabelclarke Events management

Dr Nurdilek Dalziel @NurdilekDalziel Digital marketing

Paul Dobson @PaulDobsonuk Digital marketing, entrepreneurship, SMEs, social enterprises

Dr Jana Fiserova @DrJanaFiserova Economics, DBA and European partnerships

Dr Andy Hanks @ajhanks_dr  HRM, CIPD, trade unions

Dr Andy Hirst @AndyHirst1956 International Business, Supply Chain Management, Risk Mgt Project Mgt, Strategy and Leadership

Dr Mehtap Hisarciklilar @MHisarciklilar  Economics, PhD enquiries

Dr John Hudson @brucie_rooster  Employee well being

Dr Andras Kenez @Andras_Kenez  Marketing

Angela Lawrence @IteroAnge  Apprenticeships and marketing

Dr Tolu Olarewaju @ToluOlarewaju Economics

Karl McCormack –  @KMcCormackSU Accounting

Bharati Singh @BharatiCSingh Strategy and banking

Carol Southall @cdesouthall  Tourism and Events Management

Hazel Squires – @HazelSquire Under-graduate Business Management Award Leader, Small Business Charter and Silverworkers project

Mark Wordley @markwordleyUK Accounting and finance, work placements and SMEs

Courses

MSc Digital Marketing Management  @MScDigStaffs

Projects

EU project @Silverworkers 

EU project  EUFORIA @XKeuforia

Top tips for improving your blog writing

I’ve been asked a few times over the past few months about tips for writing a blog so I’ve jotted a few notes from my experience of working with various businesses and marketing professional.

1. Know your audience and your market

Even before writing a blog you need to research what key words potential customers and current customers are using. In addition, research what key words competitors are using that is getting them hits to their website and do a gap analysis with your website.

2. Make it Search Engine Optimisation (SEO) friendly but ensure it’s readable

St.Helens, England - January 15th 2012: iPad2 in females hands displaying google search engine page. Google is one of the biggest search engines in the world. iPad2 was launched in March 2011.

I’ve come across a blog recently where it was obvious that the author must have been trying to include key SEO words in their blog with little useful information or thought to the reader. If people are not linking to it, etc it may not be SEO friendly.

3. Make the title of the blog honest!

One of the easiest ways to lose customers is to fail to deliver on a promise, so ensure that the title is an accurate description of your blog.

4. Prioritise your information

Yellow note paper with exclamation mark

Make the main point of your blog the first paragraph they read or they may not understand what your blog is about and why they are reading it.

5. Use graphics and bullet points

Help make your blog readable by including photos, pictures and some structure via headings, subheadings and bullet points. Use original photos, a lot of organisations buy or use stock photos and it can be a big disappointment to readers to come across photos they have seen several times before. Graphics also have the advantage of looking good when you promote your blog eg: via twitter and Facebook.

6. Leave it a day

After writing your blog you might think of other ideas. Editing and grammar checking might be easier after giving it a rest. You can also check your blog before posting it by using tools such as Grammarly or Hemingway apps.
Re-read it, is your blog…interesting or useful?

7. Make it easy to navigate

If you are creating your own blog and have some control, add a top and side navigation bar. Make it easy for readers to go to your favourite blogs that is relevant for a long time (known as evergreen blogs). If you are using WordPress there are lots of themes available free of charge with easy to setup navigation bars, but choose or buy a decent theme.

8. Use white-space

White-space can make a blog easier to read, eg via increasing the line spacing or padding around images.

9. Use a readable font type and size.

12 point might look good on a A4 sheet of paper but 16 point is far more readable on a screen.

10. Has your blog made an impact?

Assuming you have google analytics or equivalent, has your blog increased hits to your website using the right key words? Has it increased backlinks and had positive read comments? If not, it might need editing and checking to make sure it’s SEO friendly, for example, there is an optimum density for key words, more than this density will make it SEO unfriendly.

Good luck with your blog 🙂

Paul Dobson BSc(Hons), DIT, DMS, MSc, MA, MBA, PGCHPE, FHEA, FCMI, MAM