Assignment 5.1 Updated - Why trade internationally?
In this assignment, I will be RESEARCHING and analyzing two businesses that operate in two
contrasting markets. The businesses which I have chosen are Brompton Bike and
Manchester United F.C.
Section One
i) An explanation of the operation of each business, to include: Pass 1
Brompton Bikes is a private limited company. The British manufacturing business specializes
in the production of foldable bikes. It was founded in 1976 and has now grown into a large
workforce size of 291 employees (2019 figures) The management level is mainly director
level based-92.86%, with the remaining being 7.14% of non-manager level based. Brompton
Bikes does both importing and exporting, they import the resources needed to make the
bikes and then export the final product internationally. The market which they operate is a
small part of the whole UK bicycle industry (‘share of around 4% of all bicycles sold’) In 2017
“The market leader in folding bicycles is Brompton Bicycle Limited which currently
manufactures around 45,000 bicycles per year, most of which are exported to Europe and
the Rest of the World.” Brompton bikes operate in many countries and conduct certain
operations in others. For example, the business chose to set up stores in developing
countries such as China due to its developing economy. China hasn't fully tested the folding
bike industry and BB saw this as a great opportunity. In addition, China's population is
massive, and BB can ensure to gain a lot of new customers. However, BB also conducts
business in more developed economies such as America. This is because America’s economy
is greatly known for its efficient trading which they conduct with overseas economies. As a
result, BB trading with America can ensure healthy and safe exports trades within the
country. Overall, BB handcrafts their bikes in their London factores. The reason being is
because London holds the majority of its target market-wealthy individuals who need an
alternative from cars when getting to work. Furthermore, BB holds the majority of the UK’s
folding Bike industry, and setting up warehouses around the UK creates greater brand
awareness and helps in engulfing the market. They are also starting to sell their bikes in
emerging economies such as Thailand and Turkey as there is a growing middle-class with
strong infrastructure which allows businesses to thrive. Brompton Bikes since they are
established in a number of different countries around the world, and the fact that they have
a customer service department that's specific for international customers, it is certain that
they have parts of the management team that are dedicated/assigned to overseeing
international operations. Unlike Man U they won't have highly paid (director pay) managers
in each country that they operate but the managers responsible for the international work
will report back to the main board of directors.
https://en.wikipedia.org/wiki/Brompton_Bicycle
https://uk.globaldatabase.com/company/brompton-bicycle-limited
https://www.tutor2u.net/business/blog/market-in-focus-folding-bicycles#:~:text=Folding
%20bikes%20are%20a%20very,the%20Rest%20of%20the%20World.
Manchester United F.C. (MU) is a professional football club that was founded in 1878. The
,business is a public limited company and has a workforce size of 922 employees- as of 30th
June 2018 (this number has most likely increased since) Furthermore, the business does not
only manage the soccer team, in relation to the business, MU is involved in many other
activities e.g. ‘media network, foundation, fan zone, news and sports features, and team
merchandise.’ The organization operates on international levels, as they compete in a
numerous number of ‘international tournaments’ e.g. Europa League. Not only this proves
that the business is international, but the company also sells merchandise worldwide. This
merchandise is supposedly being made by women in Cambodian factories, meaning that the
publicly limited company both imports and exports its goods. In addition, Man U also set up
their training camps in certain countries who are known for developing world class players.
For example, Man U hold many Manchester United Soccer Schools (MUSS) Residential
Training Football Camps in England. https://soccercampsinternational.com/england-soccer-
camps/manchester-united-soccer-camp/ This is due to the reputation which England has for
developing world class players, with the likes of Ryan Giggs, Marcus Rashford, Harry Kane
and many more. This also means that Man U receive a high demand for their developed
players, and often profit millions from these players sold to overseas clubs. Similar to
Brompton, Man U do have a management team overseeing international relationships. At
Man U the Global Sport and Entertainment Marketing Leader is Ben Bradly (‘Award winning
global sport and entertainment marketing leader inspiring and developing teams to reach
their potential. Maximising tangible business returns from commercial partnerships. Career
encompasses brand side (Vodafone, Digicel), rights/media owner side (Manchester United,
ESI Media) and global agencies (Octagon, WPP’).
https://uk.linkedin.com/in/benbradley11
https://ir.manutd.com/investor-faqs.aspx#:~:text=How%20many%20employees%20does
%20Manchester,the%20company%20employed%20922%20employees.
https://en.wikipedia.org/wiki/Manchester_United_F.C
https://www.bloomberg.com/profile/company/MANU:US#:~:text=Manchester%20United
%20Plc.,United%20is%20based%20in%20England.
https://www.thesun.co.uk/news/6946264/manchester-united-shirt-110-pounds-made-
cambodia-factory-workers-64p-hour-adidas/#:~:text=MANCHESTER%20United%20shirts
%20costing%20loyal,wage%20called%20for%20by%20campaigners.
ii) the reasons each conducts business internationally, e.g. Pass 1
Growth
When going international, there's a great chance to seek growth for your business.
Brompton bikes saw going international as an opportunity, since it allowed them to
distribute their bikes not just to UK residents, but to over 44 countries, and has stores in
cities in the Netherlands,Italy,Germany,Thailand and China. This seems to be a great
expansion for the business since it experienced its greatest growth in 2019 by selling nearly
, 49,000.
For MU, the same thing happened. Having great popularity as a football club worldwide, has
in no doubt helped the business generate some serious revenue. As it states on their official
website, ‘Our retail, merchandising, apparel and product licensing revenue was £102.1
million, £102.8 million and £104.0 million for each of the years ended 30 June 2019, 2018
and 2017, respectively.’
https://www.theguardian.com/business/2015/aug/17/brompton-bicycle-factory-
expansion#:~:text=Brompton%20exports%20its%20bikes%20to,%2C%20Germany%2C
%20Thailand%20and%20China.
https://ir.manutd.com/company-information/business-model.aspx#:~:text=Our%20retail
%2C%20merchandising%2C%20apparel%20%26,%2C%202018%20and%202017%2C
%20respectively.
Additional revenue streams
Additional revenue streams provide many beneficial factors e.g. if a certain section of the
business is losing money, the revenue generated from the other streams can cover the loss.
MU themselves have many streams of income which i mentioned before, social media,
merchandise, schools etc. But, their most important one’s are the matchdays,commercials
and broadcasting. In 2009 the organisation generated £279 million in revenue. 24% of which
were commercials (£66 million), 35% of which were broadcasting (£98 million) and the
remaining 41% which was generated from the matchdays themselves (£115 million) Since
further international expansion,growth,sponsorships etc. the business grew its revenue by
an estimated 125%. But, that year's revenue was mainly generated by commercials. 44%
commercial (£275 million), 38% broadcasting (£241 million) and the remaining 18% from
matchdays (£111million)
However, Brompton Bikes only generate its revenue from the sales of its foldable bikes,
parts and accessories, bags, clothing, helmets, and lights for their bikes.Instead, the
company is always looking at ways to expand its bicycle industry market share, and so far it
has been going very well for them. ‘According to the London folding bike manufacturer, “its
pre-tax profits increased by 25 percent to GBP 4 million (4.6 million euro) on a total sale of
GBP 42.5 million (49.5 million euro) in the 2018/19 financial year.” Brompton’s gross margin
from 46.5 percent in 2017/18 to 48.9 percent in 2018/19.’
https://ir.manutd.com/company-information/business-model.aspx#:~:text=Broadcasting
%20and%20Matchday.-,Commercial,licensing%3B%20and%20mobile%20%26%20content.
https://www.statista.com/statistics/267743/revenue-segmentation-of-manchester-united/
https://www.bike-eu.com/market/nieuws/2020/01/brompton-thrives-in-sales-and-profit-
10137181?_ga=2.88333147.1511713528.1605552864-828864945.1605552864
Brand exploitation
Going international was a great way in which both businesses raised popularity/awareness
about themselves. Brand exploitation was a great way for these businesses to pretty much
‘advertise themselves’, and it's definitely an important factor which contributed to the
company's financial successes. MU have had a worldwide appeal since the 1950s, fans all
other the world have had access to watch games and enjoy the likes of some of the greatest
In this assignment, I will be RESEARCHING and analyzing two businesses that operate in two
contrasting markets. The businesses which I have chosen are Brompton Bike and
Manchester United F.C.
Section One
i) An explanation of the operation of each business, to include: Pass 1
Brompton Bikes is a private limited company. The British manufacturing business specializes
in the production of foldable bikes. It was founded in 1976 and has now grown into a large
workforce size of 291 employees (2019 figures) The management level is mainly director
level based-92.86%, with the remaining being 7.14% of non-manager level based. Brompton
Bikes does both importing and exporting, they import the resources needed to make the
bikes and then export the final product internationally. The market which they operate is a
small part of the whole UK bicycle industry (‘share of around 4% of all bicycles sold’) In 2017
“The market leader in folding bicycles is Brompton Bicycle Limited which currently
manufactures around 45,000 bicycles per year, most of which are exported to Europe and
the Rest of the World.” Brompton bikes operate in many countries and conduct certain
operations in others. For example, the business chose to set up stores in developing
countries such as China due to its developing economy. China hasn't fully tested the folding
bike industry and BB saw this as a great opportunity. In addition, China's population is
massive, and BB can ensure to gain a lot of new customers. However, BB also conducts
business in more developed economies such as America. This is because America’s economy
is greatly known for its efficient trading which they conduct with overseas economies. As a
result, BB trading with America can ensure healthy and safe exports trades within the
country. Overall, BB handcrafts their bikes in their London factores. The reason being is
because London holds the majority of its target market-wealthy individuals who need an
alternative from cars when getting to work. Furthermore, BB holds the majority of the UK’s
folding Bike industry, and setting up warehouses around the UK creates greater brand
awareness and helps in engulfing the market. They are also starting to sell their bikes in
emerging economies such as Thailand and Turkey as there is a growing middle-class with
strong infrastructure which allows businesses to thrive. Brompton Bikes since they are
established in a number of different countries around the world, and the fact that they have
a customer service department that's specific for international customers, it is certain that
they have parts of the management team that are dedicated/assigned to overseeing
international operations. Unlike Man U they won't have highly paid (director pay) managers
in each country that they operate but the managers responsible for the international work
will report back to the main board of directors.
https://en.wikipedia.org/wiki/Brompton_Bicycle
https://uk.globaldatabase.com/company/brompton-bicycle-limited
https://www.tutor2u.net/business/blog/market-in-focus-folding-bicycles#:~:text=Folding
%20bikes%20are%20a%20very,the%20Rest%20of%20the%20World.
Manchester United F.C. (MU) is a professional football club that was founded in 1878. The
,business is a public limited company and has a workforce size of 922 employees- as of 30th
June 2018 (this number has most likely increased since) Furthermore, the business does not
only manage the soccer team, in relation to the business, MU is involved in many other
activities e.g. ‘media network, foundation, fan zone, news and sports features, and team
merchandise.’ The organization operates on international levels, as they compete in a
numerous number of ‘international tournaments’ e.g. Europa League. Not only this proves
that the business is international, but the company also sells merchandise worldwide. This
merchandise is supposedly being made by women in Cambodian factories, meaning that the
publicly limited company both imports and exports its goods. In addition, Man U also set up
their training camps in certain countries who are known for developing world class players.
For example, Man U hold many Manchester United Soccer Schools (MUSS) Residential
Training Football Camps in England. https://soccercampsinternational.com/england-soccer-
camps/manchester-united-soccer-camp/ This is due to the reputation which England has for
developing world class players, with the likes of Ryan Giggs, Marcus Rashford, Harry Kane
and many more. This also means that Man U receive a high demand for their developed
players, and often profit millions from these players sold to overseas clubs. Similar to
Brompton, Man U do have a management team overseeing international relationships. At
Man U the Global Sport and Entertainment Marketing Leader is Ben Bradly (‘Award winning
global sport and entertainment marketing leader inspiring and developing teams to reach
their potential. Maximising tangible business returns from commercial partnerships. Career
encompasses brand side (Vodafone, Digicel), rights/media owner side (Manchester United,
ESI Media) and global agencies (Octagon, WPP’).
https://uk.linkedin.com/in/benbradley11
https://ir.manutd.com/investor-faqs.aspx#:~:text=How%20many%20employees%20does
%20Manchester,the%20company%20employed%20922%20employees.
https://en.wikipedia.org/wiki/Manchester_United_F.C
https://www.bloomberg.com/profile/company/MANU:US#:~:text=Manchester%20United
%20Plc.,United%20is%20based%20in%20England.
https://www.thesun.co.uk/news/6946264/manchester-united-shirt-110-pounds-made-
cambodia-factory-workers-64p-hour-adidas/#:~:text=MANCHESTER%20United%20shirts
%20costing%20loyal,wage%20called%20for%20by%20campaigners.
ii) the reasons each conducts business internationally, e.g. Pass 1
Growth
When going international, there's a great chance to seek growth for your business.
Brompton bikes saw going international as an opportunity, since it allowed them to
distribute their bikes not just to UK residents, but to over 44 countries, and has stores in
cities in the Netherlands,Italy,Germany,Thailand and China. This seems to be a great
expansion for the business since it experienced its greatest growth in 2019 by selling nearly
, 49,000.
For MU, the same thing happened. Having great popularity as a football club worldwide, has
in no doubt helped the business generate some serious revenue. As it states on their official
website, ‘Our retail, merchandising, apparel and product licensing revenue was £102.1
million, £102.8 million and £104.0 million for each of the years ended 30 June 2019, 2018
and 2017, respectively.’
https://www.theguardian.com/business/2015/aug/17/brompton-bicycle-factory-
expansion#:~:text=Brompton%20exports%20its%20bikes%20to,%2C%20Germany%2C
%20Thailand%20and%20China.
https://ir.manutd.com/company-information/business-model.aspx#:~:text=Our%20retail
%2C%20merchandising%2C%20apparel%20%26,%2C%202018%20and%202017%2C
%20respectively.
Additional revenue streams
Additional revenue streams provide many beneficial factors e.g. if a certain section of the
business is losing money, the revenue generated from the other streams can cover the loss.
MU themselves have many streams of income which i mentioned before, social media,
merchandise, schools etc. But, their most important one’s are the matchdays,commercials
and broadcasting. In 2009 the organisation generated £279 million in revenue. 24% of which
were commercials (£66 million), 35% of which were broadcasting (£98 million) and the
remaining 41% which was generated from the matchdays themselves (£115 million) Since
further international expansion,growth,sponsorships etc. the business grew its revenue by
an estimated 125%. But, that year's revenue was mainly generated by commercials. 44%
commercial (£275 million), 38% broadcasting (£241 million) and the remaining 18% from
matchdays (£111million)
However, Brompton Bikes only generate its revenue from the sales of its foldable bikes,
parts and accessories, bags, clothing, helmets, and lights for their bikes.Instead, the
company is always looking at ways to expand its bicycle industry market share, and so far it
has been going very well for them. ‘According to the London folding bike manufacturer, “its
pre-tax profits increased by 25 percent to GBP 4 million (4.6 million euro) on a total sale of
GBP 42.5 million (49.5 million euro) in the 2018/19 financial year.” Brompton’s gross margin
from 46.5 percent in 2017/18 to 48.9 percent in 2018/19.’
https://ir.manutd.com/company-information/business-model.aspx#:~:text=Broadcasting
%20and%20Matchday.-,Commercial,licensing%3B%20and%20mobile%20%26%20content.
https://www.statista.com/statistics/267743/revenue-segmentation-of-manchester-united/
https://www.bike-eu.com/market/nieuws/2020/01/brompton-thrives-in-sales-and-profit-
10137181?_ga=2.88333147.1511713528.1605552864-828864945.1605552864
Brand exploitation
Going international was a great way in which both businesses raised popularity/awareness
about themselves. Brand exploitation was a great way for these businesses to pretty much
‘advertise themselves’, and it's definitely an important factor which contributed to the
company's financial successes. MU have had a worldwide appeal since the 1950s, fans all
other the world have had access to watch games and enjoy the likes of some of the greatest
