Chapter 2 - The Sport Industry Environment Notes

Unit 2:Unit 2:The Sport Industry The Sport Industry

EnvironmentEnvironmentMr. ElsesserMr. Elsesser

Sports ManagementSports Management

Chapter OverviewChapter Overview

Introduction to College note takingIntroduction to College note taking Managing in the Internal EnvironmentManaging in the Internal Environment Examining QualityExamining Quality

Total Quality Management (TQM)Total Quality Management (TQM) Managing in the External EnvironmentManaging in the External Environment Types of External ManagersTypes of External Managers Competing in our Global CommunityCompeting in our Global Community

Learning to take notes…College styleLearning to take notes…College style

College Note taking involves the following:College Note taking involves the following: Visual Aids (PowerPoint, whiteboard, note guides.)Visual Aids (PowerPoint, whiteboard, note guides.)

2 out of every 8 classes. 2 out of every 8 classes.

Notes revolving around key termsNotes revolving around key terms Student must listen intensely and write down things they Student must listen intensely and write down things they

think are important to the main idea (term).think are important to the main idea (term). Failure to do so often results in receiving poor grades.Failure to do so often results in receiving poor grades.

Students should focus on definition and be able to Students should focus on definition and be able to provide an example of each concept discussed. provide an example of each concept discussed.

SUCCESS EQUALS:SUCCESS EQUALS: IDENTIFY MAIN IDEA, AND PROVIDE AN EXAMPLEIDENTIFY MAIN IDEA, AND PROVIDE AN EXAMPLE

BRAINSTORMBRAINSTORM(The Internal Environment)(The Internal Environment)

What do you think are some of the What do you think are some of the things that sports managers most likely things that sports managers most likely have to routinely review INSIDE their have to routinely review INSIDE their own companies and among their own companies and among their competitors? competitors?

Examining the Internal EnvironmentExamining the Internal Environment

The Internal Environment:The Internal Environment:

Five Internal Factors are:Five Internal Factors are: Management, Mission, Resources, the Management, Mission, Resources, the

Systems Process, and Structure.Systems Process, and Structure.

Exploring the Internal Environment:Exploring the Internal Environment:MANAGEMENTMANAGEMENT

Who are they?Who are they?

Primary Purpose/Responsibility: Primary Purpose/Responsibility:

Exploring the Internal Environment:Exploring the Internal Environment:MISSIONMISSION

Main Purpose:Main Purpose:

Developed by:Developed by:

Missions Identify: Missions Identify:

BRAINSTORMBRAINSTORM What do you think are some of the What do you think are some of the

most important things that you must most important things that you must consider when trying to come up with a consider when trying to come up with a mission for a sports organization? mission for a sports organization?

Mission Statements ContinuedMission Statements Continued

Missions must include: Missions must include: Purpose:Purpose:

The Business:The Business:

Values:Values:

All components of mission statements must All components of mission statements must be relevant to all stakeholders. be relevant to all stakeholders.

Who are Stakeholders?Who are Stakeholders?

Stakeholders are: Stakeholders are:

Stakeholders include:Stakeholders include: EmployeesEmployees AlumniAlumni FansFans ShareholdersShareholders CustomersCustomers SuppliersSuppliers The GovernmentThe Government

Example:Example:SMITHTOWN ATHLETICSSMITHTOWN ATHLETICS

Mission Statement:Mission Statement: Interscholastic athletics in the Smithtown Central Interscholastic athletics in the Smithtown Central

School District is a part of the physical education and School District is a part of the physical education and health program and therefore an integral part of the health program and therefore an integral part of the district's total educational program. The district's total educational program. The interscholastic competitive environment provides an interscholastic competitive environment provides an opportunity for our participants to learn positive life opportunity for our participants to learn positive life skills, values and ethics in a climate that demands skills, values and ethics in a climate that demands dedication, responsibility, self-discipline, cooperation, dedication, responsibility, self-discipline, cooperation, a positive work ethic and respect for others. a positive work ethic and respect for others.

Identify Smithtown’s mission, business, and values.Identify Smithtown’s mission, business, and values. Who are their stakeholders? Who are their stakeholders?

Exploring the Internal Environment:Exploring the Internal Environment:RESOURCESRESOURCES

Function:Function:

4 Types:4 Types: Human:Human:

Financial:Financial:

Physical:Physical:

Informational Resources:Informational Resources:

Exploring the Internal Environment:Exploring the Internal Environment:Systems ProcessSystems Process

Function: Function:

4 Components:4 Components: Inputs:Inputs:

Transformation:Transformation:

Outputs:Outputs:

Feedback:Feedback:

FEEDBACKFEEDBACK

The Systems Process DiagramThe Systems Process Diagram

Exploring the Internal Environment:Exploring the Internal Environment:StructureStructure

Function: Function:

Organized as Departments:Organized as Departments: Finance, Marketing, Production, PersonnelFinance, Marketing, Production, Personnel Unlimited and can be as many as neededUnlimited and can be as many as needed Each dept. is headed by a managerEach dept. is headed by a manager

Main Objective:Main Objective:

RESULTRESULT

ResourcesResources

StructureStructure

Systems ProcessSystems Process

ManagementManagement

Means (How?)Means (How?)

MISSIONMISSION

ALL ADDS INTO ALL ADDS INTO MISSION, MISSION,

WHICH YIELDS WHICH YIELDS FINAL RESULTS FINAL RESULTS OF OF ORGANIZATIONORGANIZATION

Mission is the Mission is the BIG DADDY! BIG DADDY!

BRAINSTORMBRAINSTORM Why is “quality” important to an Why is “quality” important to an

organization? organization? How does quality effect what a How does quality effect what a

customer or fan perceives as “value?” customer or fan perceives as “value?”

QUALITY: QUALITY: The Cornerstone of SuccessThe Cornerstone of Success

Quality is:Quality is:

Customer Value is:Customer Value is:

Combining Value and QualityCombining Value and Quality

Customers not only buy the Customers not only buy the product/service, they buy the benefit product/service, they buy the benefit they expect to achieve from it.they expect to achieve from it.

Example:Example: The Yankees and Red Sox make big The Yankees and Red Sox make big

dollars on their rivalry series games, as dollars on their rivalry series games, as their fans expect to see high-quality and their fans expect to see high-quality and intense games; while also watching star intense games; while also watching star players compete like Alex Rodriguez and players compete like Alex Rodriguez and David Ortiz. David Ortiz.

How does an organization strive How does an organization strive for and deliver quality?for and deliver quality?

Total Quality Management (TQM):Total Quality Management (TQM):

Who is responsible for it? Who is responsible for it?

Total Quality Management (TQM)Total Quality Management (TQM)

Carried out through 2 primary principlesCarried out through 2 primary principles Primary Principle #1:Primary Principle #1:

Primary Principle #2:Primary Principle #2:

Example: Example:

BRAINSTORMBRAINSTORM(The External Environment)(The External Environment)

What do you think are factors outside What do you think are factors outside the organization that influence what the organization that influence what happens inside an organization? happens inside an organization?

Examining the External EnvironmentExamining the External Environment

The External Environment:The External Environment:

External Factors include:External Factors include: Competition, Suppliers, Workforce, Competition, Suppliers, Workforce,

Customers, Shareholders, Society, Customers, Shareholders, Society, Technology, Economy, Governments.Technology, Economy, Governments.

The Influence of the The Influence of the External Environment:External Environment:

External Factor #1:External Factor #1: CUSTOMERSCUSTOMERS Who are they? Who are they?

The Influence: The Influence:


External Factor #2:External Factor #2: COMPETITIONCOMPETITION What is it? What is it?



External Factor #3:External Factor #3: SUPPLIERSSUPPLIERS What is it? What is it?



External Factor #4:External Factor #4: WORKFORCEWORKFORCE Who are they? Who are they?



External Factor #5:External Factor #5: SHAREHOLDERSSHAREHOLDERS Who are they?Who are they?



External Factor #6:External Factor #6: SOCIETYSOCIETY Who are they?Who are they?



External Factor #7:External Factor #7: TECHNOLOGYTECHNOLOGY What is it?What is it?



External Factor #8:External Factor #8: THE ECONOMYTHE ECONOMY What is it?What is it?



External Factor #9:External Factor #9: GovernmentsGovernments What is it?What is it?


Types of Management in the Types of Management in the External EnvironmentExternal Environment

External factors change at fast chaotic pacesExternal factors change at fast chaotic paces Managers must be interactive and ready to thriveManagers must be interactive and ready to thrive

3 Types of Managers: 3 Types of Managers: REACTIVE MANAGERS:REACTIVE MANAGERS:

RESPONSIVE MANAGERS:RESPONSIVE MANAGERS:

INTERACTIVE MANAGERS:INTERACTIVE MANAGERS:

Competing in our Competing in our Global CommunityGlobal Community

Primary Purpose:Primary Purpose: Necessary for organizational survival!Necessary for organizational survival!

Increases sales and profitsIncreases sales and profits

3 Methods of Conducting Business:3 Methods of Conducting Business: Domestic Business (Method #1)Domestic Business (Method #1)

Potential Customer Base about 268 Million Potential Customer Base about 268 Million PeoplePeople

Competing in our Competing in our Global Community (Method #2)Global Community (Method #2) International BusinessInternational Business

Example: Set-up a business in one of the 15 Example: Set-up a business in one of the 15 European Union (EU) countries, would add 350 European Union (EU) countries, would add 350 million people. million people.

Expands Total Potential Customer Base to 725 millionExpands Total Potential Customer Base to 725 million

Competing in our Competing in our Global Community (Method #3)Global Community (Method #3) Multinational Corporation (MC)Multinational Corporation (MC)

Must have international sales of at least 25% or Must have international sales of at least 25% or more. more.

You never start you own global business, but you You never start you own global business, but you may become an international manager. may become an international manager.

Global Sourcing Global Sourcing

The difference between domestic The difference between domestic managers and global managers lies in managers and global managers lies in where they look for the best deal on where they look for the best deal on inputs and where they can be most inputs and where they can be most advantageously transformed into advantageously transformed into outputs.outputs.

Chapter 2 - The Sport Industry Environment Notes

Education

Transcript of Chapter 2 - The Sport Industry Environment Notes