chapter2 thesportindustryenvironmentfinal-cw2

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

EnvironmentEnvironmentMrs. WoodMrs. Wood

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:

1.1. ManagementManagement

2.2. Organizational Resources-( Human, Organizational Resources-( Human, Financial,Physical, Informational )Financial,Physical, Informational )

3.3. Mission StatementMission Statement Five Internal Factors are:Five Internal Factors are:

Management, Mission, Resources, the Systems Management, Mission, Resources, the Systems Process, and Structure.Process, and Structure.

• Includes these factors with boundaries that affect performance.

Exploring the Internal Environment:Exploring the Internal Environment:MANAGEMENTMANAGEMENT

Who are they?Who are they?

Primary Purpose/Responsibility: Primary Purpose/Responsibility:

• Owners, managers, directors

• As an owner you can control management to an extent. You can choose who your managers are going to be and the philosophy, but not how they actually manage.

Exploring the Internal Environment:Exploring the Internal Environment:Organizational ResourcesOrganizational Resources

HumanHuman FinancialFinancial Physical Physical Informational Resources Informational Resources

NEW

Exploring the Internal Environment:Exploring the Internal Environment:MISSIONMISSION

Main Purpose:Main Purpose:

Developed by:Developed by:

Missions Identify: Missions Identify:

• SCSD Mission: The primary mission of public education is to provide our young people with those skills necessary to function effectively in society. Most often our attention and energy is

directed toward the academic skills of READING, LANGUAGE and MATHEMATICS.

• Owners, Managers, Directors

• Product, Company, Brand, Team

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

• Anyone who has a stake (interest) in the business.

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:ORGANIZATIONAL RESOURCESORGANIZATIONAL RESOURCES Function:Function:

4 Types:4 Types: Human:Human:

Financial:Financial:

Physical:Physical:

Informational Resources:Informational Resources:

The organization is where resources come together. Organizations use different resources to accomplish goals.

• Employees, managers, directors, fans, players

• Money, capital investments

• Facilities, equipment

• Statistics, event promotions

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:

The process by which resources are transformed to product.

• Raw materials

• Potatoes to French Fries

• Finished Product or Service

• Are they customers happy?

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:

Each department affects the organization as a whole, and each department impacts every other department

Obtain goals/ mission statement

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!

AlignmentAlignment

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:

• Customers assess the quality of an organization’s outputs by comparing what they require (or want) from the product or service to their actual use of or experience with it.

• Benefit(s) customers obtain when they buy a product or service.

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?

• The process through which organization members focus on the customer in order to continually improve product value.

• All Employees top to bottom

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:

• To deliver customer value

• To continually improve the system and its process

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.

• Factors outside organizational boundaries that affect performance.

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:

• People who purchase the good or service.

• Without customers organizations CANNOT exist

• Family, Friends, Media

• They either purchase or not


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


• Other companies that sell similar goods or services.

• Organizations must compete with competitors for customers

• Other Companies, pricing, media


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


• Effective managers recognize that suppliers are a key factor for success and develop close working relationships with them

• Provide resources to produce products. ( + / - price or quality


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


• An organization’s employees have a direct impact on its performance.

• Good customer service vs bad


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


• Shareholders are the owners of a corporation because they purchased “share” (stock) in the corporation.

• They believe in the company or not


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


• Society expects business to be socially responsible and ethical

• Socially acceptable companies and products


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


• Today computers are a major part of every firm’s systems process

• Better, faster, cheaper products.


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


• When business activity is slow, fewer fans attend live sporting events.

• Has impact on net income.


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


• Opportunity is often determined by the support of local government.

• Business operations ie tax

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:

• Make changes only when forced to by external factors

• Prepare for the changes that they predict.

• Believe they can create a significant part of their future and control how it will effect the organization.

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

• Business activities that take place with in one nation (ie US only, Germany only)

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

• Products made in one country, and sold in another.

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

• Products made and established all over the world.

• Examples Mc Donald’s, NIKE, ADIDAS

Global Sourcing Global Sourcing (Outsourcing around the globe) (Outsourcing around the globe)

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 where they look for the best deal on best deal on inputsinputs and where they can be most and where they can be most advantageously advantageously transformed into transformed into outputs.outputs.

chapter2 thesportindustryenvironmentfinal-cw2

Education

internal factors

internal environmentmanaging

internal environmentexamining

sports managers

main idea term

external environmentmanaging

exampleidentify main

visual aids powerpoint