sport management erasmus 01

7/31/2019 Sport Management ERASMUS 01

1/64

Sport Management

Sport OrganizationsAttila Kajos Assistant Lecturer


2/64

About the subject

Lecturer

Attila Kajos Assistant Lecturer Email: [email protected]

Room: Sport Centre Room no. 10

Form of teaching: Lecture/seminar

Assesment

Activity in class

Preparing and suggesting case studies (2) Prepare of a class paper
mailto:[email protected]:[email protected]


3/64

About the subject

Evaluation

Presence at class 10% (10p 1point/class)

Case studies 15-15% (15-15p 1 CS/class)

Class paper 60% (via email till 30.11.2012)

Topic: Any Sport Management related issue mentioned during thesemester (Managing players/teams/other organizations, Critical viewof a Management problem in connection with a sport organization.

Comparing two nations teams/associations, etc. Throughmanagement issues, etc.)

Marks

Excelllent (5) 86% -

Good (4) 7685%

Satisfactory (3) 66-75%

Pass (2) 51-65%

Fail (1) 0-50%


4/64

Course Objectives

Basic Management Knowledge

The environment of an Organization Influenting factors

Structural forms

Roles of the manager

Motivational theories

Sport Management

Sport management elements and its environment. The

three sectors of sport.

Sport and Government. The role of state in sport

development (state and the three sectors). Reason and

effect of state intervention.


5/64

Course Objectives

Managing Sport Organizations

The sports clubs environment. Sport and non-profit sector. Professional sport. Media, Sponsorship, Player

management (With case study).

The role of Strategy in Sport

Tasks of a sport manager

Sport Marketing

Sport as a Complex Product

Creating the Marketing Strategy (STP)

Creating the Marketing Mix (7P)

Sport Marketing Case study


6/64

Introduction to

Management


7/64

Organization

Organization

A social unit of people, systematically structured andmanaged to meet a need or to pursue collective goals on a

continuing basis.

Organizations Institutes, Clubs (amateur/profressional, Firms,

Multinational companies, etc)


8/64

Management

To Manage means

all the activities and tasks undertaken by one or morepersons for the purpose of planning and controlling theactivities of others in order to achieve an objective orcomplete an activity that could not be achieved by theothers acting independently. (Koontz et al. 1980)

Managemenet contains

Planning

Organizing

Staffing Directing

Controlling


9/64

All managers carry out the functions of planning,

organizing, staffing, leading, and controlling,although the time spent in each function will differ

and the skills required by managers at different

organizational levels vary.

Still, all managers are engaged in getting things donethrough people. ... The managerial activities,

grouped into the managerial functions of planning,

organizing, staffing, leading, and controlling, are

carried out by all managers, but the practices and

methods must be adapted to the particular tasks,

enterprises, and situation. (Weichrich, 1993)


10/64

The factors influencing the organization I.

1. Macro-Environmental Factors (PEST)

1. Political environment

2. Economic environment

3. Technological envoronment

4. Social environment

2. Inner Factors1. Size

2. Information technology

3. History

4. Terms of employees5. Geographic dispersion

6. Resources

7. Rate of cooperation


11/64

The factors influencing the organization II.

3. The characteristics of the members

1. Professionalism2. Leadership knowledge

3. Authority

4. General directing and planning objectives

5. The capability of coping with conflicts

6. Tha ability and willingnes to communicate

7. Tha ability and willingnes to cooperate

8. Role flexibility

9. Motivational and interest structure


12/64

The factors influencing the organization III.

4. The characteristics of the main functions

1. Diversity2. Verticality

3. Complexity

4. Durability

5. Freshness

5. Strategy

6. The current Organizational Structure


13/64

The interaction of the factors

I. Macro-economical factors

II. Inner Factors

IV. The

characteristics of

the main functions

III. Characteristics

of the Org.

V. Strategy VI. The current

Org. Structure

New Organizational Structure, Operational- and Behavioral

forms


14/64

Environmental attributes


15/64

1. Political environment

Political environment can be analysed as all the

Government measures that can affect directlyorindirectly the development of a company's business

and may influence negatively or positively on their

performance.

Some political Factors Taxation Policy

Trade regulations

Governmental stability

Unemployment Policy


16/64

2. Technological environment

Characteristics

The frequency of new scientific results The practical adaptation of such technology

The predictability of the development

The complexity of the technology Complex

Simple


17/64

3. Economical Environment

Most important characteristics

Volatility

Dynamic

Static

Complexity

Simple

Easy to forecast Stabil plans available

Task are easy to set

Specialized items

Formalized, strict rules

Strict hierarchy (autocratic)

Complex

Uncertain environment

Decentralized decision making (democratic)

Particpative


18/64

4. Socio-cultural environment

The characteristics of The labour market

The consumers Sex

Age

Income

Education level

Expectation of society from the business Cultural behavior

Religiousness

Attitude towards work

Hofstedes dimensions

Power distance Uncertanity avoidence

Indidualism/collectivism

Masculanity/Feminity

Long-Term Orientation


19/64

II. Inner Factors

Size and its compositives

No. of employees Assets

Annual Revenue

Annual Income

Division of labour inside the organization

Size and alignment

The structure used

Centralizing or decentralizing

The information and communication tools used

The question of size and configuration


20/64

History

Establishing cicumstances

The organizations connections to a single person orsome persons

The age of the organization

The most important episodes in the life of the

organization Changes in the product line

Changes in prices

Changes in profile

Most important innovations

Changes in the leadership/ownership

Structural and/or managerial changes


21/64

Geographic dispersion

Nuber of locations (shops, factories, plants, etc.)

The geographic positions of these locations The distance between the locations

The differences between nations and regions

Differences of city and rural; capital and country(especially in countries like Hungary, Belarus,

Denmark, Sweden, Norway, etc.)

Distribution and transportation cost and availability


22/64

Structural attributes of an

Organization


23/64

Attributes

1. Division of labour

2. Division of competences

1. Span of control

2. Hierarchy of Authority

3. Line vs. Staff

3. Coordinational tools

4. Configuration

f l b


24/64


Dividing the original working into smaller specialized

pieces, untill last process

Defining and arranging these task to individuals

(everyone has to know his/her job in the

organization)

This is one of the basics, when structuring theorganizaton

Department establishing is mainly done through

these principles

i i i f l b


25/64


Main dividing factors

Functions

Products / Product lines - Material

Regional

We differentiate two types

One dimensional organization

It is only divided by one of the above factors

Two or more dimensional organization

Divided by two or more from the above mentioned factors.

2 Di i i f


26/64


Span of control

A wide span of control: a large number of employees

reporting,

A narrow span of control: a small number employees

reporting

The appropriate span of control depends on the

experience, knowledge and skills of the employees and the

nature of the task.

2 Di i i f


27/64


Line vs. Staff

Line positions are those in which people are involved in

producing the main goods or service or make decisions

relating to the production of the main business.

Staff positions These are positions in which people make

recommendations to others but are not directly involved in

the production of the good or service

2 Di i i f t


28/64


Categories

Line

Staff

Li St ff


29/64

Line vs. StaffLine Staff

Pros

Hierarchy and competencies andresponsibilities are clear and certain. Theconnections are easy to overview andsimple. The hierarchy avoids the fraud fromoutside.

Large scale of specialization through thedivision of functions. The instruction andinformational ways are direct. Its a creativeand open environment, where productiveconflicts may occure.

Cons

Much of the time from the highermanageent is used for coordination tasks.The process of instructions and informationscan be very slow and roundabout, with adeep horizontal structure.It can cause personal dependence betweenmanager and staff.

The distinction of competencies andresponsibilities can be hard in the view ofthe entire organization.The conflicts can easlily became personal.

3 C di ti


30/64

3. Coordination

Meanings

The act of state of coordinating or of being coordinated

Proper order of relationship

Harmonious combination or interaction, as of functions or

parts

C di ti l t l


31/64

Coordinational toolsType of coordinational tool Koordincis eszkz

Structural

Hierarchiy (vertical coordintion) AdHoc and regulal commitees,

teams, projects Product managers and matrix type

solutions

Technocratic

Rules, Regulations, Procedures Plans, Programmes, Guides Blueprints, financial plans, general

budget, etc.

Person orientated

Conflict solving Manager recruitment Organizational structure Organizational Culture Training Etc.

4 C fi ti


32/64

4. Configuration

The organizational structure derived from the

previously mentioned

The materialization of the organization

Characteristics

Depth (the number of vertical hierarchy levels)

Width (the number of horizontal levels)

Size (the number of staff under a certain manager)

Str ct res


33/64

Structures

Functional structure

Requirements Static environment, narrow product-line

Characteristics Strict hierarchy, regulation, centralization, mainly vertical

coordination,

Advantages Efficiency, easier communication

Disadvantages Isolation of units, Egoist units, coordinational problems

Manufacturing Sales R & D Accounting &

Finance

CEO

Divisional structures


34/64


Product Structure

Market structures

Manufaacturing Sales

Soup

Division

Manufacturing Sales

Nuts

Division

CEO

Sales Customer

Service

Corporate

Customers

Sales Customer

Service

Individual

Customers

CEO



35/64


Geographic Structure

Sales Customer

Service

West

Sales Customer

Service

East

CEO

Divisional structure


36/64

Divisional structure

Characteristics

Wide range of heterogeneous products, product lines,

dynamic environment

Decentralized by primer functions/products/geographiclyand centralized inside the dimensions

Horizontal coordination between groups is not typical

Coordinating with mainly technocratic tools Advantages

Strategic and Operative tasks are easy to separte

Strong market orientation, Low horizontal coordination

costs Disadvantages

Division egism, Harder integration of strategic andoperative goals, duplication of effort, paralell functions

Matrix structure


37/64

Matrix structure

Matrix structure


38/64

Matrix structure

Characteristics

Dynamic and heterogeneous environment, complex and risky

tasks, developed communication skills Not strictly regulated

Two dimension working together on the problem in the pointof intersection

The managers of the dimensions must have the samecompetences

Mainly personal orientated coordination is used

Advantages

Adaptivity, Innovative, Higher performance

Disatvantages The delimination of competencies is hard, Rivalry of managers,

Overlaboured groups, Decision avoidance, Responsibilityavoidance and devolution, Needs good skills from the staff


39/64

Before Strategy making -

PEST and SWOT analysis

PEST analysis


40/64

PEST analysis

Political trends

Political, legal and regulatory issues affecting the comany

Identifying political trends, rules, etc.

Economic trends

Macroeconmic (Prosperity,Recession,Depression,Recovery)

Smaller trends (Change in income,

Cultural and Social trends

Values, beliefs, tradition of a given society (field ofoperation)

Demography (population, age, free time spending, etc.)

Technology trends

On and off-market technology innovation and technologyacceptance

Micro Environment


41/64

Micro Environment

Competitors G

eneral

Public

Suppliers

Company Distributors

Customers

ConsumersAudience

The core of the Straregy

Value net

Competitor analisys


42/64

Competitor analisys

1. Identify

The level of competition (direct, indirect)

2. Recognition and Evaluation

Monitoring system

Strategy, goals, strong and weak points, reactions, etc.

3. Competitive strategy The group of competitors

Positioning

Unique selling proposition (USP)

Other competitive advantages

SWOT analysis


43/64

SWOT analysis

Whai is it?

A scan of the internal and external environment

an important part of the strategic planning process.

It is used by

Management

Marketing

Finance

Logistics

etc.

Process of SWOT


44/64

Process of SWOT

Choosing the Environmental

characteristics

Analyzing the external (macro-

and micro) environmnet

Analyzing the inner

(organizational) environment

Comparing the factors

Acting possibilities

Environmental

Opoortunities

Environmental

Threats

OrganizationalStrengts

Organizational

Weaknesses

-Choosing the decisive alternatives

-Comparing analyss

-Decision making

Strenghts


45/64

Strenghts

A firm's strengths are its resources and capabilities

that can be used as a basis for developing a

competitive advantage.

Examples

patents

strong brand names

good reputation among customers

cost advantages from proprietary know-how

exclusive access to high grade natural resources

favorable access to distribution networks

Weaknesses


46/64

Weaknesses

The absence of certain strengths may be viewed as a

weakness.

Examples

lack of patent protection

a weak brand name

poor reputation among customers

high cost structure

lack of access to the best natural resources

lack of access to key distribution channels

Opportunities


47/64

Opportunities

The external environmental analysis may reveal

certain new opportunities for profit and growth.

Examples

an unfulfilled customer need

arrival of new technologies

loosening of regulations

removal of international trade barriers

Threats


48/64

Threats

Changes in the external environmental also may

present threats to the firm.

Examples

shifts in consumer tastes away from the firm's products

emergence of substitute products

new regulations

increased trade barriers

The SWOT matrix (type 1)


49/64

The SWOT matrix (type 1)

SWOT matrix (type 2)


50/64

SWOT matrix (type 2)

S-O strategies pursue opportunities that are a good fit to thecompany's strengths.

W-O strategies overcome weaknesses to pursueopportunities.

S-T strategies identify ways that the firm can use its strengthsto reduce its vulnerability to external threats.

W-T strategies establish a defensive plan to prevent the firm'sweaknesses from making it highly susceptible to externalthreats.


51/64

Strategy

Strategy


52/64

Strategy

Strategy is

the determination of the basic long-term goals and

objectives of an enterprise, and the adoption of courses of

action and the allocation of resources necessary for

carrying out these goals (Chandler, 1962)

Strategic management

analyzes the major initiatives taken by a company's top

management on behalf of owners, involving resources and

performance in external and internal environments. (Nag

et al., 2007)

Strategic management (Chaffe, 1985)


53/64

Strategic management (Chaffe, 1985)

Involves adapting the organization to its businessenvironment

is fluid and complex. Change creates novel combinationsof circumstances requiring unstructured non-repetitiveresponses.

affects the entire organization by providing direction.

involves both strategy formation (content) and alsostrategy implementation (process).

is partially planned and partially unplanned.

is done at several levels: overall corporate strategy, and

individual business strategies involves both conceptual and analytical thought

processes

Lamb (1984)


54/64

Lamb (1984)

Strategic management is an ongoing process that

evaluates and controls the business and the

industries in which the company is involved;

Assesses its competitors and sets goals and strategies

to meet all existing and potential competitors;

and then reassesses each strategy annually orquarterly [i.e. regularly] to determine how it has

been implemented and whether it has succeeded or

needs replacement by a new strategy to meet

changed circumstances, new technology, new

competitors, a new economic environment, or a new

social, financial, or political environment.

How to choose the strategy?


55/64

How to choose the strategy?

The basis of competition (Porter, 1998)

Differentiation (higher price for few)

Cost (low price for all)

Segmentation (Niche strategy)

Main characteristics (Johnson et al., 2008) Suitability

Feasibility

Acceptability

Hierarchical definition of Strategy


56/64

gy

Vision (Shank, 2005)


57/64

( , )

A long term road map of where the organization is

headed. It creates organizational purpose and

identity.

A well writen vision is necessary for the effective

leadership of an organization.

The vision should address the following Where does the organization plan go from here?

What business do we want to be in?

What customer needs do we want to satisfy?

What capabilities are required for the future?

Mission


58/64

The key question of the mission

What is the main mission and goal of the organization (an

abstract value: creating

What are the main (core) values of our organizations?

What behavioral norms it follows?

What sort of political and social role it tries to fulfill?

The mission statement in the USA (Shank, 2005)


59/64

( , )

The mission is a written statement about the

organizations present situation. Its purpose is to

inform the stakeholders (e.g. owners, consumers,

suppliers, etc.) about the direction of the

organization.

The key question of the mission statement What business are we currently in?

Who are our current customers?

What is the scope of our market?

Strategy


60/64

gy

Types of strategies

Corporate strategy (the overall strategy of the company

stated in the mission and vision)

Business strategy (strategy of a single firm or product

line/product, etc.)

Functional strategy

Marketing strategy

Traditional Strategy Goals


61/64

gy

Value creation and Value sharing

Building strong leadership ans good motivation

Revenue growth

Optimalizing the Value Chain

New Product Innovation

Contracting (eg. with Suppliers, distributors, etc.)

Quality of the product

Branding issues

Customer engagement

Globalization (wider range of operation)

Tactics


62/64

Are the smaller, and mid term components of the

Strategic Goals

It gives us the answer to How?

Eg. Strategic Goal - Increase revenue

Increase productivity

Increase marketing/advertising activity

Give some reduction for regular/big customers

Increase effectiveness (with managerial tools eg.

Motivation)

Etc.

Operations and Actions


63/64

p

The exact process of the decided tactics

Sale of 50% until 09.30. to 10.05.

Buy 2, get one free

Increase the bonus if the production rises with 10%

Find a better supplier for a component

Sign a contract with somebody, etc. Short term issues

Relatively urgent issues

Need to do issues

Etc.

Robin Hood case study questions


64/64

1. What was the original mission and vision of Robin Hoodand the Marrymen?

2. Identify Robins main problems.1. Make a brief PEST analysis

2. Make a brief SWOT analysis

3. With the help of the environment scanning, identify themain strategic and operational problems. Which ones

are the most immediate ones?4. What strategic options does Robin Hood have?

Eg. Killing the Sheriff, Accepting the barons offer, etc.

5. What operations and actions plans do you recommend

to Robin?6. How should Robin implement the recommended plan,and what steps will need to be taken, to make therecommended strategy work?

sport management erasmus 01

Documents