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Assessment 1: Conceptual frameworks in strategy development

MAN707-Assessment 1
 In recent years, Australia has seen a remarkable growth in the number of event fields.
This is a critical component of nation-building, economic growth, and image marketing. To get a
thorough understanding of the event business, the renowned Australian Motorcycle Grand Prix
and Australian Formula One Grand Prix will be used as examples. Additionally, this paper will
discuss numerous elements of strategy development in light of the previously described
concepts.
These two events are monitored by the Australian Grand Prix Corporation. These two
events have a similar goal, and set of methods established by this organization, but they confront
distinct internal and external influences, as detailed later. This organization's aim and vision are
quite clear: to promote Victoria as a tourist destination via the two grand prix events (AGCP,
2021). One of the primary goals of the inaugural event is to ensure that the island of Philip Island
is included on the schedule of the most renowned premier class motorcycle racing event in the
world. Conversely, the Formula One Grand Prix wants to establish Melbourne and Victoria as
significant tourist destinations. It is evident that this organization's plans for both events are
identical, with slight differences owing to Phillip Island's somewhat isolated location.
To begin, The VRIO model will assess the event's resources' capabilities based on their
worth, uniqueness, imitability, and organizational structure (Chatzoglou et al., 2018). For
Motorcycle Grand Prix, the event has a high value since it is an exclusive and one-of-a-kind
experience not accessible anyplace else in the nation (FIM, 2020). The cliff setting and route
itself are regarded to be the most magnificent, which adds to the track's uniqueness (Dawe,
2017). For starters, the event is scarcely unique, which contributes to its uniqueness. As a result,
the Victorian Government has agreed to host the event until 2027 under a deal with the
International Motorcycling Federation. Additionally, the Australian Grand Prix Corporation has
established plans to guarantee that this event continues to become financially successful
throughout the years, despite external challenges such as transportation and lodging, which will
be detailed later (Regional Development Victoria, 2016). Additionally, this organization delivers
good value for tourists by effectively presenting a major motor racing event (Kim et al., 2017).
The fact that the event's world championship cycle starts in Melbourne adds to its uniqueness.
Sydney and Adelaide, two other major cities, are vying for Melbourne's hosting rights, much as
Melbourne did in 1996 when it stole Adelaide's hosting rights (Fairley, 2011). However, the
Australian Grand Prix Corporation's effective event management strategies and Melbourne's

MAN707-Assessment 1
hosting rights through 2025 have completely covered these grounds (Australian Grand Prix
Corporation, 2019).
In light of Porter's Generic Strategies model, the VRIO model may be utilized to analyze
the two occurrences from a competitive aspect (Dewey, 2018). Differentiation techniques are
possible because of the events' competitive advantages. Due to its geographical location, the
Motorcycle Grand Prix will need focal difference (Dewey, 2018). Differentiation techniques will
be required for the other event if Sydney and Adelaide, its competing cities, are to show a
successful event from an economic and social perspective (Fairley, 2011).
Moreover, PESTEL analysis and application of Porter's Five Forces model to the external
environment are necessary to properly comprehend the present position and strategic
implications of the two occurrences described above. An event's external environment, which
includes political, socio-cultural, technical and environmental considerations, is analysed using
the PESTEL model (Gregoric, 2014)). Given the Victorian Government's continuing backing for
the AGPC to organize the festivities, political issues seem to have a comparable impact on both
events (Fairley, 2011). The state government's continued support for growing tourism in outlying
regions like as Phillip Island has resulted in increased infrastructural improvements (Regional
Tourism Development, 2016). Transport and accommodation are important concerns for guests
to this event (Regional Roads Victoria, 2020), and a major reason why it only made AUD 12
million in total income, compared to the other event's enormous 55 million (AGCP, 2021). The
primary social pressure on both of these events, notably the Formula One Grand Prix, is the fact
that both events lose money on their own. The Victorian government, on the other hand, ignores
this problem and continues to hold these events because of the economic benefits they provide to
Victoria and Australia. They both attract big numbers of foreign and interstate visitors who
spend money on products and services including travel, restaurants, shopping, and lodging,
resulting in increased consumer expenditure in the Victorian economy (Premier of Victoria,
2020). Pressure groups are also concerned about noise pollution, which is a big worry for the
Formula One Grand Prix event. Fairley (2011) claims that it is less of a concern on Phillip Island
because of its sparsely populated surrounds.
Furthermore, The five forces model, developed by Michael Porter, is a technique of
analyzing industrial forces. Consumers' and suppliers' negotiating power, rivalry intensity, and
the possibility of replacements and new entrants are all factors to consider (Michael, 2014). Due

MAN707-Assessment 1
to the one-of-a-kind nature of the Motorcycle Grand Prix, buyers have little negotiating power,
and the same notion applies to the Formula One Grand Prix. Due to the event's distant and
regional location, as well as the restricted availability of providers, suppliers have a lot of
bargaining leverage. Even though event providers have a modest edge owing to expensive
arrangements such as exclusive food and beverage contracts, event suppliers enjoy a slight
advantage. Due to the event's high importance and the fact that it is located in the heart of
Melbourne, suppliers' negotiating power for the Formula One Grand Prix is moderate to low. In
both circumstances, the level of rivalry is low. The Superbike world championship leg is also
hosted on Phillip Island; however, the two events are staged at different times of the year, with
the Motorcycle Grand Prix taking place in the fourth quarter of the year and its series in the first.
In its own open-wheel racing class, the other event has no competitors (Kim et al, 2017).
Because of its unique location and experience, the Motorcycle Grand Prix faces little to no
danger of new entrants (Dawe, 2017). The cities of Sydney and Adelaide are vying for the
privilege to host the Formula One Grand Prix, so there is a danger of replacements, but the
signed contract until 2025 helps to entirely eliminate the threat (Premier of Victoria, 2020).
In conclusion, while each of these events are monitored by the same organization, they
are markedly different in terms of strategy, internal or external influence, and so on. It is obvious
that the Motorcycle Grand Prix has some extremely distinct characteristics, whereas the Formula
One Grand Prix faces competition in the future. While each of these events has considerable
challenges, it is cannot denied that the Formula One Grand Prix is the more successful in terms
of economic effect and tourist numbers.

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 References
Australian Grand Prix Corporation. (2021). Annual Report.
https://www.grandprix.com.au/uploads/images/Australian-Grand-Prix-Corporation-Annual-
Report-2020-21-FINAL-5-October-2021.pdf
Chatzoglou. P., Chatzoudes. D., et al. (2018). The role of firm-specific factors in the
strategy-performance relationship : Revisiting the resource-based view of the firm and the VRIO
framework. Management Research Review, 41(1), 46–73. https://doi.org/10.1108/MRR-10-
2016-024.
Dawe, J. (2017). Five magnificent backdrops to MotoGP. https://www.redbull.com/au-
en/motogp-2015-best-views-tracks
Dewey, J. (2018). Porter’s Generic Strategies. Porter’s Generic Strategies- Research
Starters Business, 1–5.
Fairley, S., Tyler, et al. (2011). The Formula One Australian Grand Prix: Exploring the
triple bottom line. Sport Management Review, 14(2), 141-152.
https://doi.org/10.1016/j.smr.2010.07.001
Federation Internationale de Motocylisme. (2020). Federation Internationale de
Motocylisme. http://www.fim-live.com/en/fim/the-federation/about-the-fim/
Gregorić, M. (2014). Pestel Analysis of Tourism Destinations in the Perspective of
Business Tourism (Mice). Tourism & Hospitality Industry, 551–565.
Kim, M. K., Carroll, M., et al. (2017). Measuring the economic impacts of major sports
events: the case of Formula One Grand Prix (F1). Asia Pacific Journal of Tourism Research,
22(1), 64–73. https://doi.org/10.1080/10941665.2016.1176061
Michael, E.D. (2014). Guidelines for applying Porter’s five forces framework: a set of
industry analysis templates. Competitiveness Review, 24(1), 32–45. https://doi.org/10.1108/CR-
06-2013-0059
Premier of Victoria. (2020). Roaring Success: Melbourne secures Grand Prix extension
[Press release]. https://www.premier.vic.gov.au/roaring-success-melbourne- secures-grand-prix-
extension/
Regional Development Victoria. (2016). Phillip Island and San Remo: Visitor Economy
Strategy 2035. https://www.destinationphillipisland.org.au/about/phillip- island-strategic-
tourism-plan/

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