...StaInstructor’s Manual CASE TEACHING NOTES The Formula One constructors Mark Jenkins 1. Introduction This case enables students to explore sources of competitive advantage using the context of Formula One (F1) motorsport. The case highlights the ways in which three particular F1 teams created four situations of competitive dominance for a sustained period. It allows the students to consider individual teams and the generic issues needed to succeed in this specialised context. The case is organised into five parts. The first is a brief overview designed to give those unfamiliar with F1 some understanding of its history and structure. This is followed by four detailed descriptions of particular periods of dominance by an F1 team. The introduction to the case describes the overall nature of Formula One motorsport and its origins in Europe after World War II. It identifies some of the central aspects of being an F1 constructor, such as the need to generate sponsor revenues through increasingly sophisticated marketing strategies, and also the need to design, develop, manufacture and race open-wheel single-seat racecars. Note: the term ‘constructor’ differentiates F1 from other racing series in which race teams compete with bought-in racecars. F1 constructors are effectively in the business of designing and constructing prototypes – each car being unique to each constructor but within a set of pre-defined rules that cover weight, dimensions and other basic parameters. The...
Words: 2514 - Pages: 11
...Formula One Motor Racing In 1997/1998 Formula One’s popularity was at an all time high and two years prior the Federation Internationale de l’Automobile (FIA) had granted Bernie Ecclestone F1’s commercial rights. Ecclestone had sought these rights in order to safeguard his own investments in the digital TV infrastructure technology that was being developed. He was so confident in the technology; he had invested over $100 million through family-owned companies towards R&D. Ecclestone believed that multichannel broadcasting with interactive technology would create a new revenue stream, improve F1’s global appeal, and support his planned initial public offering (IPO). Formula One’s IPO never took place. During this same time period the European Union began an antitrust investigation, claiming the FIA had exercised monopoly power by giving one company exclusive broadcasting rights. Considering so much of F1’s profits come from TV revenue, Ecclestone had to cancel the IPO due to the pending legal case and instead opted for a bond issuance that raised $1.4 billion for his family trust. Taking a company public through the IPO process or financing through a bond issuance, have many advantages and disadvantages for a business. IPO’s provide companies the opportunity to raise capital to grow the business by offering investors an ownership stake in the company without impacting its debt-to-equity ratio. The Juner case is a perfect example of a company decided to go public...
Words: 933 - Pages: 4
...An Unstoppable Force Erik Amy North Central Michigan College Abstract The name may not sound familiar, but Sebastian Vettel is the best Formula One driver thats driving today. Surprisingly, he is the youngest person to do this kind of racing since it started back in 1950. Quincidently, Formula One racing is a lot like NASCAR except the cars look different. Now, it is a popular sport around the world but not as popular here in America and that’s why a lot of people here don’t know a lot about this fast paced sport. In the last three years, Sebastian has won four world championships and could own a fifth next year. Also, he started racing at the age of seven by driving in go-kart races. There are a lot of racing legends when it comes to Formula One, but Sebastian is in a league all his own. When people look back to 2013, they will remember the accomplishments of Sebastian Vettel. Introduction The youngest driver in Formula One history could also be the best driver in Formula One history. Now, not only has he been able to keep up with the big dogs of Formula One like Fernando Alonso and Mark Webber, but he doesn’t only keep up with these guys, he beats them to the finish line almost every time. Not only does he hold records for youngest driver in formula one history, he also holds plenty others as well like the youngest driver to take part in an official practice session of a Grand Prix. That’s pretty impressive for a guy who...
Words: 1302 - Pages: 6
...report, we will base on the dividend payment history and the weekly price for each of the two stocks in the past one year, to calculate the expect return and standard deviation for each of them. According to the ANZ dividend payment history, it shows that the ANZ dividend paid semi-annually (every July and December). So it is still no dividend payment in 2013. According to the BHP dividend payment history, it shows that the BHP dividend paid semi-annually (every March and September). First of all, we should calculate the weekly expected return by formula (1). rt= Pt-Pt-1+ dtPt-1 (Formula 1.) rt= expected return of each week at time t. Pt= closing price at time t. Pt-1= opening price at time t. dt= dividend payment at time t. Then, according to the formula (2), we could get the expected return for each of the two stocks by calculating the mean of all weekly expected return in the past one year. r = t=1nrtn (Formula 2.) n = the number of weeks during the past one year. r = the mean expected return. After getting the mean expected return, we should use r to calculate the standard deviation for each of the two stocks by formula (3). σr= t=1n(rt-r)2n-1 (Formula 3.) rt= expected return of each week at time t. r = the mean expected...
Words: 379 - Pages: 2
...diseases. There are many islands in our country such as Pulau Langkawi, Pulau Redang, Pulau Ketam and many others. Pulau Langkawi has a lot of historitical informations. Those who are in favour of history can go there to explore the history of that place. All the beaches in those islands are beautiful. The sand is soft and white. The accommodation is well-established and that makes those islands ideal places to visit. Following this, there are also international achievements of our country. Those achievements include the existence of Kuala Lumpur International Airport (KLIA), Formula One (F1) racing circuit and the Petronas Twin Towers. KLIA is unique because it has all that is needed for business, entertainment and relaxation within its boundaries. The airport is part and parcel of the Multimedia Super Corridor where high technology industries are being actively developed. Nevertheless, there is a Formula One Race Track near the airport, so foreign car racing enthusiasts from all over the world can come for a visit to gather here. Besides that, Petronas Twin Towers which is a building that soars 452 metres into the sky is once upon a time, the tallest building in the world and yet it is a national pride to the people of...
Words: 270 - Pages: 2
...sprinters reach their highest speed right out of the blocks, and spend the rest of the race slowing down. The winners slow down the least. It's that way with most startups too. The earliest phase is usually the most productive. That's when they have the really big ideas. Imagine what Apple was like when 100% of its employees were either Steve Jobs or Steve Wozniak. The striking thing about this phase is that it's completely different from most people's idea of what business is like. If you looked in people's heads (or stock photo collections) for images representing "business," you'd get images of people dressed up in suits, groups sitting around conference tables looking serious, Powerpoint presentations, people producing thick reports for one another to read. Early stage startups are the exact opposite of this. And yet they're probably the most productive part of the whole economy. Why the disconnect? I think there's a general principle at work here: the less energy people expend on performance, the more they expend on appearances to compensate. More often than not the energy they expend on seeming impressive makes their actual performance worse. A few years ago I read an article in which a car magazine modified the "sports" model of some production car to get the fastest possible standing quarter mile. You know how they did it? They cut off all the crap the manufacturer had bolted onto the car to make it look fast. Business is broken the same way that car was. The effort...
Words: 766 - Pages: 4
...love the sport for it to survive. However when you look at the changes that the sport has made and is planning to make there is a lot of hope. There are a few people and teams in the sport that have actually started trying to and make a change. These ways are hopefully going to catch on or in the end, the sport as a whole could be doomed for failure. In a normal NASCAR race weekend it is estimated that about 6000 gallons of gas are consumed and the cars get an average of 2 – 5 Miles per Gallon (MPG). Formula 1, or F1, cars get about the same MPG at 3.1. This number is much more specific since the engines are much more regulated in F1 series. The average fuel consumption for cars and light trucks in the US is 17.1 MPG. So as you can see, to start off, race cars while achieving amazing feats of speed and lap times, fail in the department of sustainability. The shear amount of gas used is interesting in the fact that if the normal passenger car in the US is 17.1 MPG then one weekend of race fuel could power a normal car for 102,600 miles. Now, if we split that up for the number of cars that run in the weekend, which is 43 cars, then 1628.57 miles for your normal passenger car. So that means, that with the amount of gas NASCAR used you could drive from Auburn, AL to New York city and almost all the way back. That is ridiculous. However when it comes to the race cars themselves there are some companies looking at alternatives. Most of these innovations do not come from NASCAR...
Words: 2564 - Pages: 11
...KARTING Karting is a sport that very few people know about. Actually if you mention the word “Karting” to the general public the first thing that comes to their mind is a children’s game, unfortunately that’s far from reality. However, this sport is actually one of the most physical demanding. Professional drivers are well known for their great resistance to high temperatures, physical and mental stress. It is also the first step for those who want to get to formula 1, or simply are adrenaline junkies. Last summer, a group of friends and I decide to go to Boston F1 in Braintree, MA. We all went there in search of one thing “Glory”, race to each other to see who can be the fastest. Before the race starts you must participate in a 10 minutes instructive course. Which shows you the safety regulations, type of gear and equipment that must be worn during the race. It was my first time at Boston F1, I really had low expectations about this track, because is an indoor track. According to my personal experience indoor karting tracks aren’t as fun as outdoor track, but I was impressed by the track layout. Usually indoor tracks are narrower and have less space to develop high speed, while outdoors tracks also have runoff areas. Which can help to avoid a collision or simply to pull off for a breakdown. But the main reason to all drivers is that gives you more confidence to take turns at higher speeds. Well, the time has arrived to get into the karts. Wearing a red race...
Words: 475 - Pages: 2
...Roejohn Remzo P. Tiolengco 2 – 21 I. Introduction A. Brief facts about Formula One B. Formula One: The Pinnacle of Motor Sports II. The Formula A. The Chassis 1. Materials 2. Aerodynamics 3. Wheels 4. Maintenance B. The Power unit 1. Specifications 2. Development 3. Power 4. Loads C. The Driver 1. Talent 2. Fitness III. Conclusion A. Summary B. Recommendation The Elements of Formula One Formula One cars truly are a masterpiece of engineering, These cars are the most technologically advanced, most rapidly developed cars in the world and are unmatched at what they do. A product of the human mind that pushes technology and man to its absolute limits. Formula One is the pinnacle of motor sports racing. The heart of a Formula One car is the chassis – the part of the automobile onto which everything is bolted and attached. Like most modern cars and aircraft, Formula One race cars feature monocoque construction. Monocoque is a French word meaning “single shell” which refers to the process of making the entire body out of a single piece of material. This material is a strong composite that is made up of spun carbon fibre set in resin or carbon fibres layered over aluminium mesh. The end result, a car that weighs in at just three-quarters of a ton. This lightweight bodywork also enables the car to reach speeds in excess of 300 kilometres per hour. (How Stuff Works, 2007 ) When you move at such phenomenal speeds, you need a lot of traction...
Words: 1474 - Pages: 6
...is a world apart from Formula One. Both are exceedingly popular, yet they lie at diverse ends of the motor sports spectrum. Most people who have an obsession with cars and racing may know about Nascar and Formula One, the two most respected names in motorsports today. At first glance, Nascar and Formula One seem very similar; however, a closer look reveals many differences such as aerodynamics, mechanical caliber, speed and horsepower, race tracks, fan base, and histories. Auto racing is a popular, fast paced sport. Nascar and Formula One draw large audiences on television, radio and at live events. Spectators are drawn by the danger, speed, competition, and displays of automotive machinery and the drivers behind the steering wheels. However, Nascar and Formula One are separated in numerous ways. The car chassis style is so different that they conduct races in notably different ways and the organizational rules that they must follow, makes for a different driving experience. Formula One vehicles depend so much on aerodynamics, passing other cars on the track is not a main part of the Formula One racing strategy. Formula One races aim to be fast, but the cars do not change positions, very often. Nascar, on the other hand, rely on passing other cars on the track, to run and win the races. While Formula One may have too little passing abilities, Nascar may suffer from too much of it. Furthermore, bumping or trading paint, is against the rules in Formula One but is warranted in...
Words: 261 - Pages: 2
...NASCAR and Formula 1 Both have their roots in the car races of the early 1900's. The European races of the 20's and 30's for Formula 1 and the beach course races at Daytona Beach, Florida in the 30's. Formula One is open wheel racing, meaning simply that the cars' wheels are open, or not covered by the skin of the vehicle. The sport is basically technology driven. Manufacturers spend time and money in research and development to produce new parts construction materials to make their cars faster than the next guy. The courses are generally road courses, a term meaning that the course consists of left and right turns as well as straights. As mentioned by others Formula 1 races are sometimes run on courses made of blocked off city streets. They also race in the rain and use a different type of fuel. Formula 1 races take place all over the world. NASCAR is stock car racing, meaning that the cars are loosely based on 4 door sedans currently in production by the auto makers that compete in the series; Ford, Chevrolet, Dodge, and Toyota starting in 2007. The cars do use older technology, but they are meant to emulate the classic American hot rods. It's the idea of taking what you have and doing enough modifications to beat the other guy. Although, in NASCAR, those modifications must meet the standards and fit the rules. They compete on many different tracks, although most are considered oval. There are many configurations though; ovals, tri-ovals, quad-ovals, nearly rectangular...
Words: 1256 - Pages: 6
...Racing Today motorsports is leading sport activates. The two leading types of racing are NASCAR, and FORMULA ONE also known as FORMULA ONE. NASCAR which includes Truck series, Nationwide, and Sprint cup series FORMULA ONE only has one division which is the FORMULA ONE. The total amount of people that watch motorsports is ”527million people” http://en.wikipedia.org/wiki/Formula_One#cite_note-4 National Association Stock Car Auto Racing is commonly referred to as NASCAR. NASCAR is the most popular type of motorsports which has an average of 75million people “http://www.backseatblonde.com/December6.html.” NASCAR has 28 races a season. NASCAR’s cars use the top brands which consist of Chevy, Dodge, Toyota, and Ford. Each car must have at least three stock parts: the hood, roof, and the trunk. Each engine for the cars is similar but has different parts that make them different. “Most top racing teams build their own engines from scratch. The total cost of these engines, which take more than 100 hours to build, is anywhere between $45,000 and $80,000.” [Source: Martin, Hendrick Motorsports]. “At Hendrick Motosports, a racing shop that supports four different Sprint Cup teams, a 95-person engine department cranks out more than 600 engines a year.” [source: Hendrick Motorsports].” http://auto.howstuffworks.com/auto-racing/nascar/nascar-basics/nascar-race-car-cost1.htm . Tires are very different from our street tires. They are wider and have tougher material because of the extreme...
Words: 625 - Pages: 3
...Compare and Contrast Paper It has long been said that the redneck sport of the United States is the National Association for Stock Car Auto Racing more formerly known as NASCAR. Some people may not know about the other auto racing series that occasionally comes to the United States to compete. That series is known as Formula 1. NASCAR and Formula 1 have stark differences in where they race, how they race. Did you know that both series average speed is faster than the speed needed for a Boeing 747? A Boeing 747 requires between 150 to 200 miles per hour to take off. Right off the bat, the differences start. One of the biggest differences is the locations that these two series race. NASCAR primary races in the United States but does occasionally race in Mexico and Canada, although they did not during this past year’s season. NASCAR races in 23 cities around the country hitting many of them twice a season (2013 NASCAR Sprint Cup Series TV Broadcast Schedule). Formula 1 currently races in 19 different countries, spanning four continents and hitting each track only once during the season. NASCAR has an average of 36 races a season, while Formula 1 currently has 20 races a season. The next comparison is the vehicles that are used to provide all of the entertainment value that we see on television on a weekly basis. NASCAR drivers race in a closed wheel, closed driver compartment car. Due to NASCAR’s ongoing commitment to safety and entertainment NASCAR recently developed a brand...
Words: 645 - Pages: 3
...Ferrari: A Story of Dedication, Distinction and Really, Really Fast Cars. Speed, power and beauty, these are the words that come to mind when you think of one of the greatest names in automobiles, Ferrari, Manufacturing outstanding cars since 1947, Ferrari has stayed ahead of the majority of its competitors tand built a global luxury brand that includes more than sports cars. I have been fascinated by Ferraris for as long as I can remember. Also, I have read and studied about Ferraris, and have done a lot of research on the Internet. Today, I will tell you about Ferrari has established itself as an important part of automobile history. After listening to my speech, my audience will understand the history Ferrari and how it has developed into a global luxury brand that includes more than sports cars. The Ferrari a symbol in itself, is a highly prized and sought-after car. This specific sport's car speaks of status. The Ferrari has long been sought after because of its ability to quench the need for speed. Ferrari's importance in the history of travel is unrivaled because of its worldwide recognition and how its helped shape other automobiles. First, I will discuss how Enzo Ferrari fell in love with driving and car engineering in his youth and gained substantial race car test driving experience. Second, I will discuss how Enzo Ferrari leaves Alfa Romeo to start his own company and to make his own cars. Finally, I will discuss how Ferrari no longer relies just on selling...
Words: 1225 - Pages: 5
...Describe what is meant by the ‘marketing mix’ and what the key ingredients of the mix are. The marketing mix consists of four basic elements; Product, Price, Place and Promotion. They are extremely important when reaching the objective of the chosen business. The marketing mix will vary depending on the type of business because they do not all sell the same product, have same budget or have the same competition. For example, Infinti’s marketing mix consists of a luxury car product which sells for premium price as it is a quality product. Infinti is expanding globally and its cars are sold around the world in state of the art dealerships and are promoted through the sports industries, with Red Bull and Sebastian Vettel being famously involved within the business. Explain the difference between above- the-line and below-the-line promotional activity. Above the line promotion is paid for communication in the independent media. This would cover advertisements on TV, articles in magazines/newspapers, broadcasts on the Radio, online advertisement and billboards in relevant places/roadsides. Above the line promotion can also be seen by anyone outside the aimed audience. For example Infinti broadcasts TV adverts across the globe to highlight the quality of its product. Below the line promotion main aim is to target its audience more directly. It has a set audience it wants to communicate with and this is done through public relations, sponsorships, hospitality, merchandising...
Words: 704 - Pages: 3