decision analysis

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Decision Analysis

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Table of Contents
The Juventus Problem 3
The course of the Problem 4
Different Alternatives 5
Evaluate the Alternatives and Weigh the Evidence 7
Payoff 8
Decision Tree 8
An Alternative and Risk Matrix for the Alternative. 9
Plan to Make Decision Tangible and Achievable 10
Conclusion 11
References 12

The Juventus Problem

The problem at Juventus is that they have been unable to win the group stage and go through it in the Champions League. This means Juventus will not be able to get significant revenue from the Champions League. If we add that Juventus is third in the league, 10 points behind the first place, we can assume that this year will be again not profitable for Juventus (Bonn, 2022). Considering that they already have a considerable debt, my problem will be how Juventus will economically react to this possible future crisis—for example, not doing a vast market campaign this summer, selling players, or focusing on the youth players.

An effective decision-making process is systematic, considers all relevant information, and makes decisions in the organization’s best interest. In order to make an effective decision, the decision-maker must first identify the problem that needs to be solved or the question that needs to be answered. Once the problem has been identified, the decision-maker must gather all relevant information. This information can come from various sources, such as market research, financial reports, and data analysis (Bonn, 2022). Once all of the relevant information has been gathered, the decision-maker must then analyze this information and come up with a solution that is in the organization’s best interest.

The problem at Juventus is a big one because it will directly affect their revenue. Without being able to compete in the Champions League, Juventus will miss out on much money. This could lead to them selling players or focusing on youth players to stay financially afloat. The problem is also a big one because it could affect their morale. If Juventus cannot compete for e in the Champions League, it will be a significant disappointment for the players, the coaches, and the fans.

The course of the Problem

Since its formation in 1897, Juventus FC has been one of the most successful Italian and European football clubs. The club has won 33 domestic titles, including nine consecutive Serie A titles between 2011 and 2019 and two Intercontinental Cups. They have also reached two UEFA Champions League finals, in 1997 and 2003, losing both times (Bonn, 2022). In recent years, however, Juventus have struggled to replicate its previous success at the highest level. The main reason for this is the club’s financial situation. Despite its on-field success, Juventus have been plagued by financial problems for much of its history. In 2006, the club was relegated to Serie B due to the Calciopoli scandal, which saw them implicated in a match-fixing scandal (Porzio, 2022). This resulted in a significant loss of revenue and several high-profile players leaving the club. Juventus managed to control its financial situation in the years since, but they have still been far from profitable. The club has posted losses in three of the last four years. This is mainly due to their heavy spending on players, which has not always been matched by corresponding revenue from match-day receipts, television rights, and other sources.

The main reason for the problem at Juventus is that they have not been able to progress through the group stage of the Champions League in recent years. This means that Juventus will not be able to receive the same revenue from the Champions League as they have in previous years. In addition, Juventus are currently third in the league, 10 points behind the first-place team (Porzio, 2022). This suggests that this year will again be unprofitable for Juventus. Given that Juventus already have a large amount of debt, my problem will be how Juventus will react economically to this potential future crisis. For example, Juventus may choose not to do an extensive summer market campaign, sell players, or focus on youth players.

Another reason why Juventus may not be able to make a profit this year because they failed to win the group stage of the Champions League. This means that they will not receive the same amount of money from the Champions League as they have in previous years. Juventus also spent much money on new signings this summer, which has put them at risk of not making a profit. Juventus are currently third in the league, 10 points behind the first place (Porzio, 2022). This makes it unlikely that they will win the league this year, further impacting their financial situation. The club has been in debt for several years, and this season’s poor performance will likely worsen its financial situation. This could lead to the club selling some star players or quitting the business altogether. As Juventus’ squad is relatively old, they will need to invest in new players shortly to maintain their competitiveness (Porzio, 2022). However, this will not be easy, given their current financial situation. The club is burdened with a high wage bill and will need to generate significant revenue to fund any new signings. This may prove difficult given the current economic climate and the competition they face from other clubs.

Different Alternatives

As one of Europe’s most iconic and successful clubs, Juventus FC has a huge fan base worldwide. The club has won numerous prestigious titles, including the UEFA Champions League, the Serie A, and the Coppa Italia. However, this year for the first time in 8 years, Juventus did not win the group stage and did not qualify for the Champions League (Porzio, 2022). This means that Juventus will not be able to get the same revenue from the Champions League. In addition, Juventus is currently third in the league, 10 points behind the first place. This could mean that this year will be another financial loss for the club. In light of this, the club may need to make tough decisions to stay afloat.

One option that Juventus FC may consider is reducing its expenses. By reducing their expenses, the club may need to cut their staff or player wages. This would allow the club to save money and potentially generate more revenue (Porzio, 2022). Reducing expenses will help Juventus in revenue generation because it will allow the club to save money. This money can then be used to invest in other club areas or pay off debts. In addition, reducing expenses will help Juventus maintain its current success. The club can free up money to reinvest in the team by cutting staff or player wages. This will help to ensure that Juventus can continue to compete at the highest level.

Another option that Juventus FC may consider is selling players to generate revenue. This would allow the club to bring in much-needed money. In addition, selling players could help the team maintain a competitive squad (Doyle, 2022). The team can free up space on the roster for younger or more talented players by selling players who are no longer needed or are not performing well. This can help to keep the team competitive and improve their chances of success in the future.

Another option that Juventus FC may consider is focusing on its youth academy. By developing young players, the club would eventually be able to sell them for a profit. In addition, focusing on their youth academy would allow Juventus to maintain a high level of play, even if they cannot spend as much money on players in the transfer market. Focusing on its youth academy would also help Juventus in revenue generation. The club could save money on transfer fees and wages for players. In addition, they would be able to sell players for a profit. This would allow Juventus to generate the revenue they need to maintain its high level of play. Juventus FC has one of the best youth academies in Europe (Doyle, 2022). By focusing on their youth academy, they would be able to maintain a high level of play, even if they cannot spend as much money on players in the transfer market. In addition, focusing on its youth academy would allow Juventus to generate the revenue they need to maintain its high level of play. Juventus FC will need to carefully consider all of its options to make the best decision for the club’s future. Whichever route they decide to take, they will need to ensure they make decisions with the club’s long-term success in mind.

Evaluate the Alternatives and Weigh the Evidence

After evaluating all of the options, Juventus FC may focus on its youth academy. This option would allow the club to develop young players who could eventually be sold for a profit. Although this option may take some time to generate revenue, it would be a more sustainable option for the club in the long run. Selling players would allow the club to generate some much-needed income. However, this option would only be a short-term solution and would not be sustainable in the long run. Reducing expenses may also be a viable option for the club. The club may reduce costs and improve its financial situation by cutting staff or player wages. After weighing all the evidence, Juventus FC may decide that focusing on its youth academy is the best option for the club’s future. This option would allow the club to develop young players who could eventually be sold for a profit. Although this option may take some time to generate revenue, it would be a more sustainable option for the club in the long run.

Payoff

Alternatives Options

Revenues

Expenses

Focusing on Youth Academy

Low in the short-term but has the potential to generate more revenue in the long term.

It may be higher in the short term but can reduce expenses in the long term.

Selling Players

High in the short-term but will not generate revenue in the long-term

Low in the short-term but will increase expenses in the long-term

Reducing Expenses

Low in the short-term but has the potential to generate more revenue in the long-term

.Low in the short-term, but has the potential to reduce expenses in the long-term.

Decision Tree

When it comes to making decisions about the future of Juventus FC, there are a few different options that need to be considered. The first is whether or not to reduce expenses. If the club decides to reduce the costs, they will need to cut staff or player wages. However, this could hurt the quality of the team. The second option is to sell players. This would generate much-needed revenue but could also weaken the group. The third option is to focus on the youth academy. This would allow the club to develop young players who could eventually be sold for a profit.

An Alternative and Risk Matrix for the Alternative.

After careful consideration of all the options, it has been decided that the best course of action for Juventus FC is to focus on their youth academy. This option has been selected because it offers the best potential for long-term success. By developing young players, Juventus FC will be able to generate revenue in the future by selling these players for a profit. Additionally, this option will allow Juventus FC to maintain a high level of success, even if they cannot compete in the Champions League. However, this option is not without its risks. There is always the potential that young players will develop differently than expected and be unable to reach their full potential. Additionally, Juventus FC may need more revenue from player sales to offset their expenses.

Plan to Make Decision Tangible and Achievable

To make this decision tangible and achievable, Juventus FC will need to develop a plan for its youth academy. This plan should include a budget for player development and a project for how these players will be used. Additionally, Juventus FC will need to create a timeline for when they expect to see results from their academy. By doing this, they will be able to track their progress and ensure that their academy meets their expectations.

Risk

Low Risk

Medium Risk

High Risk

Young players will not develop as expected.

Risk: Juventus FC has a history of success with their youth academy and has a plan for player development.

There is always the potential that young players will fail to meet their potential.

If Juventus FC cannot develop successful young players, they will be unable to offset their expenses.

Juventus FC will not be able to generate enough revenue from player sales

If Juventus FC can develop a few successful young players, they should be able to generate enough income to offset their expenses.

The amount of revenue generated from player sales will depend on the success of the players Juventus FC develops.

If Juventus FC cannot sell any of its players, it will not be able to generate the revenue they need to offset its expenses.

Conclusion

After careful consideration of all the options, it has been decided that the best course of action for Juventus FC is to focus on their youth academy. This option has been selected because it offers the best potential for long-term success. By developing young players, Juventus FC will be able to generate revenue in the future by selling these players for a profit. Additionally, this option will allow Juventus FC to maintain a high level of success, even if they cannot compete in the Champions League. Although this option is not without risks, it is the best option for the club’s future.

References

Bonn, K. (2022).
Champions League permutations and scenarios for qualification: How teams can reach knockout stage in final 2022 UEFA group matches. Www.sportingnews.com. https://www.sportingnews.com/us/soccer/news/champions-league-permutations-scenarios-teams-qualify-knockout/u2nw70uc9glacjwrvzdqa83o

Doyle, M. (2022).
Juventus out of the Champions League: If this isn’t failure, then what is? | Goal.com. Www.goal.com. https://www.goal.com/en-ke/news/juventus-out-champions-league-allegri-failure/blt68b873b3a460f722

Porzio, F. (2022).
Juventus crash out UEFA Champions League group stage: Three reasons why Massimiliano Allegri’s team failed. CBSSports.com. https://www.cbssports.com/soccer/news/juventus-crash-out-uefa-champions-league-group-stage-three-reasons-why-massimiliano-allegris-team-failed/

Option 3: Focus on Youth Academy
This would allow the club to develop young players who could eventually be sold for a profit.

Option 2: Sell Players
This would generate some much-needed revenue, but it could also weaken the team.

Option 1: Reduce Expenses
If the club decides to reduce expenses, they will need to make cuts to staff or player wages. – However, this could have a negative impact on the quality of the team.