MANAGEMENT OF TECHNOLOGY ASSIGNMENT #3 BERNIE ECCLESTONE’S FORMULA FOR FORMULA ONE
UNIVERSITY OF SOUTHERN DENMARK 2013 JANUARY
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VIRÁG SZOMORA
EXAM NR.: 319595
2013 JANUARY
„They say Formula One is a market which it can’t be, obviously. Our market is independent, it’s a sport.” (Bernie Ecclestone)
Formula One is one of the biggest businesses in the world since the 1980s. The motor racing sport itself is more than a century old, and through these years it carried out, survived and fought lot of changes, innovation and development. Since the first Grand Prix in 1906 in Le Mans (won by the Hungarian-born Ferenc Szisz with Renault) almost everything around the sport was…show more content… 5. Leadership prism The Formula One ecosystem has multiple layers of leadership. On the one hand there is the governance of the sport, including three organizations: FIA, FISA and FOCA. These three managed the sport, but as they had different tasks they had different interests as well, thus responsibility and authority were often misaligned. F1 racing at the time was mired in chaos and, among the retired racers and wealthy team owners of which FOCA was comprised, no one had the interest, ability or ambition to lead the charge for change. Then came Ecclestone. He reconfigured the relationships among F1’s governing bodies. He became FOCA president and began the work of transforming a disorganized sport into a global phenomenon. Ha redesigned the tasks of the governing bodies through some agreements and leases, created a new set of rules surrounding the F1 regulation, operation and financing. From year to year
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VIRÁG SZOMORA
EXAM NR.: 319595
2013 JANUARY
he expanded his competence over the other organizations. This process ended when FIA transferred all F1 rights to FOCA, and FOCA fused with Formula One Promotions (Ecclestone’s own company) and created Formula One Management (FOM), that is 100% owned by Ecclestone. Throughout, he maintained tight control, wheeling and dealing with the entities that make up
