An Empirical Study On Growth Of International Management Group

This thesis focuses on International Management Group, a well-known international sports brand, which is growing quickly in China. Carefully tracking the footsteps of the company’s growth both globally and at home in China, armed with<the theory on evolution of firms>, the author attempts to break away from the traditional analytical method which is solely based on a static marketplace or focus on a single resource within companies, and instead, makes comprehensive use of the theory on endogenous and exogenous growth. By combining both of these theories coupled with the application of the basics of economics and management, this thesis explores the driving forces behind IMG’s rapid growth in China as well as potential roadblocks in the future in an attempt to help IMG play fully to its competitive strengths and be smart about its failings in a complicated and ever-changing marketplace such as China’s sports industry.Coming through IMG’s track-records and its current business in China, the author finds it revealing that IMG is currently at the preliminary stage of rapid growth. Its sports agency business and event moderation are both going strong and are showing large room for potential growth in the future. Sports agency business is the core business of the company while event moderation and golf course design are two growing businesses. Broadcasting privileges and corporate consultation are areas where the group is still looking for opportunities. All of these areas are very susceptible to even minor changes in the marketplace. A PEST macro-and micro-environment analysis of IMG reveals that it is now faced with both opportunities and challenges. Its strengths in some areas can be easily learned and emulated by its Chinese counterparts and it could even be leapfrogged and suddenly finds itself lagging behind. Therefore, an internal analysis is called for to identify the contributors to and detractors from the company’s growth. Guided by the Penrose theory, this thesis finds that the increases in internal recourses and in service efficiency have been big drivers of IMG’s growth, while the erosion of core competence, organizational running-in and distorted incentives have put brakes on the company’s growth. This thesis therefore concludes that IMG should take a well thought-out development view, be alert to any changes in the internal and external environment, focus on increasing organic resources and start diversifying its businesses.