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190 Cards in this Set
- Front
- Back
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What Is Sport Management?
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Sport management is a multidisciplinary field that integrates the sport industry and management.
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Evolution of Sport Management, as a Profession
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One of the oldest professions in the world
Ball games played by the Mayans Olympic type games in Herea, Greece Ancient Olympics Gladiator contests – Russell Crowe, Charlton Heston Jousting and archery contests in early England |
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Evolution of Sport Management, Academically
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First program in the US at Ohio University in 1966 started by Dr. James Mason
Now – over 200 in the US. Hundreds of programs and organizations worldwide in all continents except the Antarctic and the Arctic |
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Size of Sport Industry
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One estimate states that the sport industry is a $350 to $400 billion-a-year industry.
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Sport Management Academic Organizations
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AASM – Asian Association for Sport Management
ALGEDE – Latin America Sport Management Association ANZSLA – Australia/New Zealand Sport Law Association ASMA – African Association for Sport Management EASM – European Society for Sport Management NASSM- North American Society for Sport Management SMAANZ – Sport Management Association of Australia and New Zealand WASM – World Association for Sport Management |
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Examples of Careers in the Sport Industry
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Athletic directors (ADs)
Stadium and arena management Sport marketing agencies Players’ agent Sport broadcasting Recreation management Sporting goods manufacturers Managing in professional leagues |
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Career Planning: External Career
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job description
organizational type geographical location |
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Career Planning: Internal Career
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personal characteristics
job dimensions complexity interaction consumer service v. professional/human service feedback |
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Career Myths in Sport Management
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-Sport Management degree is a ticket to success
-It’s not who you know, it’s not what you know, but it is who knows you -Most employment opportunities are in pro sports or college sports -Jobs are glamorous and exciting -Jobs pay well |
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Responsibilities
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To achieve objectives sport manager must effectively use resources:
Human Resources – most valuable. Financial Resources Physical Resources Informational Resources |
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Three Most Important Traits
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Here are the three most important traits of successful managers, according to the results of a Gallup poll:
1. Integrity 2. Industriousness 3. Ability to get along with people |
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Managers Who Fail
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-Limited viewpoint –my way or the highway. Don’t follow the theory of equifinality.
-Unable to understand others -Don’t work well with others -Indecisive -Lack initiative -Don’t assume responsibility -Lack integrity |
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Management Skills
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Technical skills – techno person/no tech person
People skills Communication skills – written, spoken, listening Conceptual skills – understand abstract ideas Decision-making skills – do something |
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What Do Sport Managers Do?: Management Functions
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Planning. Starting point in the management process.
Organizing. Delegating and controlling. Leading. Influencing employees to work. Controlling. Mechanisms to achieve objectives. |
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What Do Sport Managers Do?: Non-Management Functions
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Copying, typing, making phone calls
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Planning
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Focuses on setting goals and objectives
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Types of Plans
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-Strategic- achieve highest level goals
-Operational which includes single use – detailed -Functional- focus on what operational plans are designed to accomplish -Business- examines the product, marketing, legal, financial and general business outlook |
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Short-term v. Long-term Planning: Short Term
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Typically cover less than one year
Focus on activities that have a sense of urgency |
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Short-term v. Long-term Planning: Long Term
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Focus on the future
Maximize revenue generation Plan years in advance Have to be realistic |
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Organizing
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-Blend of HRM and leadership
-One of the most difficult tasks – assign the right person with the right skills and interests to the right job -Manager must provide resources -Create job descriptions -Organizational flowchart |
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Leading
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-Put everything into place
-Structured system for executing plans -Get off your rear end |
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Controlling
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-Involves evaluating the results
-Monitoring process to ensure that goals and objectives are met |
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Management Roles
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-Interpersonal Roles
Figurehead, liaison, leader -Informational Roles Spokesperson, answer person -Decisional Roles Resource allocator, negotiator |
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Three Levels of Management
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-Top Managers (General)
Manage the entire organization or major parts of it. -Middle Managers (General/Functional) Report to top managers and supervise first-line managers -First-Line Managers (Project) Implement middle managers operational plans |
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Managing Large Business
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Planning – formal objectives, plans
Organizing – formal structure Leading - participative Controlling – sophisticated systems Role – resource allocator |
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Managing Small Business
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Planning – Informal
Organizing – informal structures Leading – tend to be autocratic Controlling – less sophisticated Role – Entrepreneur and spokesperson |
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Profits (vs. Nonprofits)
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make profit, pay their workers, charge fees
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Nonprofits (vs. Profits)
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measure performance differently, unpaid volunteers, have fund raisers and get money from governments
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Difference between Profits vs. Nonprofits
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how they measure performance, how they staff their companies, how they get funds
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Internal Environment
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The organization’s internal environment includes the factors within its boundaries that affect its performance
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Examples of Internal Environment factors
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Management
Mission Resources Systems process Structure |
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Effective managers must:
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develop their organization’s internal environment with a culture of success and constantly scan the external environment for business opportunities
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Mission
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The organization’s mission is its purpose or reason for being. Can also be defined as the outcome the organization strives to attain.
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Mission should be relevant to...
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all stakeholders:
Employees Alumni Fans Shareholders Customers Suppliers Government |
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Organizational Resources
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Human
Financial Physical Informational |
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Systems Process
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is the method used to transform inputs into outputs.
-Inputs -Transformation -Outputs -Feedback |
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Structure must be organized into:
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*Departments
-Finance -Marketing -Production -Personnel *Each department affects the organization as a whole, and each department affects every other department. |
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Quality in Sports
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Customers assess the quality of an organization’s outputs by comparing what they require (or want) from the product to their actual use of, or experience with, the product or service.
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Customer value
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is the benefit(s) that customers obtain if they buy a product or service.
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People confuse...
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quality, value and cost
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Total quality management
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is the process through which everyone in the organization focuses on the customer in order to continually improve product value.
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Two principles of TQM:
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To deliver customer value
To continually improve the system and its processes |
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External Environment
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includes factors outside the boundaries of the organization that affect its performance.
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Nine Factors in the External Environment
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1. Customers
2. Competition 3. Suppliers 4. Workforce 5. Shareholders 6. Society 7. Technology 8. Economy 9. Governments |
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The Customers
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-Without customers, organizations cannot exist.
-Must work to keep your customers and gain new ones. |
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The Competition
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-Organizations must compete with their competitors for customers.
-Strategic moves and pricing are important. |
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Suppliers
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-Effective managers recognize that suppliers are a key factor in their success and develop close working relationships with them.
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The Workforce
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An organization’s employees have a direct impact on its performance.
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Shareholders
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Shareholders are the owners of corporations because they have purchased a share (stock) in the corporation.
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Society
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Society expects business to be socially responsible and ethical.
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Technology
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-Today, computers are a major part of every firm’s systems process.
-Internet and other forms of social media have impacted the sport business. -Facebook, Twitter, LinkedIn |
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The Economy
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When business activity is slow, fewer fans attend games live at the stadium.
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Governments
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The difference between the door opening to opportunity and the door closing on it is often determined by the support of local government.
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Chaos Theory
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need for managers to adapt quickly to a constantly changing environment
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Reactive managers
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make changes only when forced to by external factors
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Responsive managers
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prepare for change that they predict will come about
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Interactive managers
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believe they can create a significant part of their future and thereby control how it will affect their organization.
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Most profound phenomenon of the 20th century
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was the globalization of sport –American sports going overseas and international sports coming to America.
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Problems with Conducting Sport Business in a Global Environment
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language problems
different economies workforces and cultures not to mention the geographical problems. |
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Domestic firm
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conducts business in only one country
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International business
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primarily based in one country but transacts business in other countries
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Multinational corporation
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have significant operations in more than one country
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3 Ways to Classify business in a global environment
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Domestic firm
International business Multinational corporation |
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Taking a Sport Business Global
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No longer whether we should go global but how we go global and how fast.
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Reasons for going global:
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-Making economies of scale and scope
-Increasing marketing power -Gaining knowledge enhancements that lead to stronger capabilities and innovation -Exploring entrepreneurial opportunities |
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Global Sourcing
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The difference between domestic managers and global managers is:
-where they look for the best deal on inputs and -where they think inputs can be most advantageously transformed into outputs |
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Importing and Exporting
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Ex: U.S. retailers must import Adidas sneakers (based in Germany) in order to sell them.
-With exporting, domestic firms sell their products to foreign buyers. -Companies like Spalding export their products to almost every country in the world. |
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Licensing
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Under a licensing agreement, one company allows another to use its intellectual assets, such as brand name, trademarks, technology, patents, or copyrights.
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Contracting
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-With global contract manufacturing, a company has a foreign firm manufacture the goods but it retains the marketing process.
*Nike uses this approach because it doesn’t own any manufacturing facilities. |
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Joint Venture
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-Created when firms share ownership (partnership) of a new enterprise.
-Each contributes something to the new venture. |
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Direct Investment
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Direct investment occurs when a company builds or purchases operating facilities (subsidiaries) in a foreign country.
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Risks in Global Sport Management
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-Preventing and dealing with violence and fan control around and in the facility.
-Extreme example – beheading and quartering of a soccer official in Brazil. Why? Official killed a player. -Major health risks. |
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Ethics in Sport Management
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-An organization’s ethics are the collective behavior of its employees.
-There is no shortage of unethical behavior in sports. |
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Examples of unethical behavior in sports:
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criminal behavior on and off the field/court, drug use, ticket scalping, gambling, sexual abuse
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Why good people do bad things
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Personality
Moral Development The Situation Justification |
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Personality
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integrity is considered a personality trait
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Moral Development
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Kohlberg’s model
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The Situation
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situation influences behavior
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Justification
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all sorts of reasons to justify behavior – moral, conventional, displacement of responsibility, disregard for the consequences, etc.
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Simple Guidelines to Ethical Behavior
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Golden and Platinum Rules
Four-Way Test Stakeholder’s Approach to Ethics Going Beyond the Stakeholder’s Approach |
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Golden and Platinum Rules
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Treat people as you would have them treat you/treat others as they want to be treated
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Four-Way Test
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Is it the Truth; Is it Fair to all Concerned; Will it Build Better Friendship; Will it be beneficial to all concerned
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Stakeholder’s Approach to Ethics
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create win/win situations.
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Going Beyond the Stakeholder’s Approach
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Make sacrifices for others’ benefit.
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Managing Ethics
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Code of ethics
Support and Example of Top Management Enforcing Ethical Behavior |
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Codes of ethics
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(also called codes of conduct) state the importance of conducting business in an ethical manner and provide guidelines for ethical behavior.
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Support and Example of Top Management
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Hard to enforce if top management doesn’t comply
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Enforcing Ethical Behavior
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If not enforced questionable business practices will continue
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Social Responsibility
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=is the conscious effort to operate in a manner that creates a win–win situation for all stakeholders.
-Have to be a good corporate citizen -Can you name a corporation which isn’t? -It does pay to be socially responsible. |
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Four Levels of Social Responsibility
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1. Social obstruction
2. Social obligation 3. Social reaction 4. Social Involvement |
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Measuring Social Responsibility
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=measures corporate social responsibility.
How well are we doing? |
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Downsizing
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The organization’s resources are cut, and more is done with less in an effort to increase productivity.
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Reengineering
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job tasks are redesigned to save time and money. Reengineered work usually requires fewer workers and far fewer managers.
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Problem solving and decision making
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=are crucial skills for effective managers.
-The sport industry is not immune to bad decisions—witness the Starter Corporation. |
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Daily Decision Making
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Some researchers claim that managers typically make about 80 decisions daily, or one every 5 or 6 minutes; others claim that daily decisions number in the hundreds.
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A problem exists
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whenever company or team objectives are not being met.
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Problem solving
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is the process of taking corrective action to meet objectives.
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Decision making
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is the process of selecting a course of action that will solve a problem.
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Decision Styles
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Reflexive Style
Reflective Style Consistent Style |
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Reflexive style
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Shoot from the hip—that is, make snap decisions without taking the time to get all the information needed and without considering alternatives.
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Reflective style:
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Take plenty of time to decide, gathering considerable information and analyzing numerous alternatives. Can lead to paralysis by analysis.
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Consistent style
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Don’t rush and don’t waste time. Know when more information is needed and when it’s time to stop analyzing and get moving.
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Six Steps of Effective Decision Making
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1. Define the problem or opportunity
2. Set objectives and criteria 3. Generate alternatives 4. Select the most feasible alternative 5. Implement the decision 6. Control the results |
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programmed decisions
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=recurring or routine situations
-decision makers use decision rules, or organizational policies and procedures, to make the decision. -A typical decision rule: Order X number of golf balls every time stock reaches level Y. |
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nonprogrammed decisions
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=significant and nonrecurring and nonroutine situations
-decision makers use the six-step decision making process |
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Decision Making Conditions
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Certainty
Risk Uncertainty |
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Certainty
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managers know the outcome
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Risk
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don’t know the outcome in advance but can assign probabilities of occurrence to each one.
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Uncertainty
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lack of information or knowledge makes the outcome unpredictable so the probabilities cannot be assigned easily.
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Decision Models
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Classical Rational Model
Bounded Rational Model |
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Classical Rational Model
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-Uses optimizing – the best possible alternative
-The more unstructured the decision and the higher the risk and uncertainty, the greater the need to conduct the research required in the rational model. -Want to optimize when you make nonprogrammed decisions in uncertain/high risk certain conditions |
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Bounded Rational Model
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-Uses satisficing – selects the first alternative that meets certain specified minimal criteria.
-You satisfice when you make programmed decisions in low risk or highly uncertain conditions. |
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Why Use a Group
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More ideas are possible
More information is available Alternative perspectives become accessible Fairness of the decision is judged, in part, by who had the input |
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Whom to Include in a Group?
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-Persons who have the requisite information
-Persons affected by the decision or who may have to cooperate in implementing the group’s decision -Persons who add diverse viewpoints, beliefs, or inclinations |
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Upside of Group Decision Making
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Better quality decisions
More information, more alternatives, and heightened creativity and innovation Better understanding of the problem and the decision Greater commitment to the decision Improved morale and motivation Good training |
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Downside of Group Decision Making
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Wasted time and slower decision making
Satisficing Domination by subgroup or individual and goal displacement Conformity and groupthink |
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Problems with Group Decision Making
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Social loafing
Status influence Limited creative flexibility Plunging in |
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Social Loafing
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-Joint product - rewards to individual group members rarely contingent on their individual performance
-Impossible to specify percentage of outcome attributable to each -Therefore, some members will reduce their efforts |
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Status Influence
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-High status individuals likely to wield more influence
-Manifests itself in terms of group process & the outcome of group’s work -Higher status individuals more likely to speak and be spoken to -High status input deemed more credible |
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Limited Creative Flexibility
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-People often fail to search through an adequate array of analogies
-Focus on a common mental model which may limit the subset of analogies -Balance of divergent and convergent thinking Active search and then an evaluation |
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Plunging In
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Often do this without adequately probing the problem or establishing sufficient alternatives
Begin convergent thinking without having engaged in sufficient divergent thinking |
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Distinguish Symptoms from the Cause/Problem
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-Symptoms only indicate there is a problem. They don’t tell you what is causing the problem.
*Symptom – late to practice. *Cause – illness, transportation, etc. |
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Objectives
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state what the individual, group, or organization intends to accomplish. Objectives can address a problem of long or short standing, or they can address opportunities in the marketplace.
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Criteria
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are the standards that must be met to accomplish the objective.
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Step 3: Generate Alternatives
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-You will often find that there are many ways to solve a problem.
*Creativity *Innovation -Prepare, incubate and illuminate, and evaluate and reevaluate |
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innovation
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alters what is established by introducing something new.
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Creativity
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is a way of thinking that generates new solutions to problems and new ways to approach opportunities.
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Use Information and Technology
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The more important the decision need more information. Too much information can paralyze the process.
Don’t want any information withheld. |
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Useful information is:
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(1) timeliness
(2) quality (3) completeness (4) relevance. |
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Group Problem Solving Techniques
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Brainstorming
Synectics Nominal Grouping Consensus Mapping Delphi Technique |
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Brainstorming
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*Key principle - separate divergent and convergent thinking
-Begins with idea generation many ideas, no criticism, quantity not quality, combine ideas -Requires a leader and recorder -Finishes with idea evaluation |
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Synectics
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-Use role playing and fantasizing
-Focuses on generating novel ideas rather than a large number of ideas -Exact nature of the problem is purposefully not stated initially so that group members avoid preconceptions |
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Nominal Grouping
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-Useful if time too short for brainstorming
-Begins with stimulus question -Have leader and recorder -Individuals write ideas, contribute one idea at a time, discuss each idea, rank ideas and discuss rankings |
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Consensus Mapping
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-Develops group agreement on a problem solution
-If consensus cannot be reached the group does not make a decision -In consensus mapping the group categorizes or clusters ideas rather than choosing a single decision |
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Delphi
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-Use when persons cannot meet or when status differences threaten group partiality
-Excellent tool for pooling expert judgment -Establish panel, work anonymously, panel sent the question, correspondence goes to a facilitator, responses collated, new material sent, repeat until consensus emerges -Labor intensive and time consuming |
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Facilitating Group Decision Making/Problem Solving
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Sequencing the process
Assuring balanced participation -Reinforcing, soliciting, prompting, probing Maintaining a task oriented climate -Encourage divergent thinking, restate goal, put issue aside temporarily, openly discuss hurt feelings, reestablish consensus |
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Use Decision Trees
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-Have several alternatives
-Create a tree to give you a visual path to make a better decision -Write down every alternative, list -potential outcomes, and choices |
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Step 4: Select the Most Feasible Alternative
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-Generating and evaluating alternatives at the same time often lead to satisficing and wasting time on poorly developed alternatives.
-Can use Quantitative Analyses or Cost-Benefit Analyses |
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Quantitative Analyses
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Break-even analysis
Capital Budgeting Queuing Theory Probability Theory |
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Break-even analysis
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calculates the volume of sales or revenue that will result in a profit. The break-even point occurs at the level where no profit or loss results
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Capital Budgeting
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involves the use of the payback approach or discounted cash flow.
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Queuing Theory
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addresses waiting time
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Probability Theory
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Calculate the probability of success
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Cost Benefit Analysis
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-More subjective than quantitative analysis.
-Sometimes it is impossible to assign a probability to a benefit received for a cost -How much is a human being worth? |
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Step 5: Implement the Decision
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How you implement your plan is crucial to its success or failure.
Must think out the implementation carefully and then carry it out. |
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Step 6: Control the Results
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-Control methods should be developed during planning.
-Establish checkpoints to determine whether the chosen alternative is solving the problem. -If not, consider corrective action. -More important, if the implementation continues to go poorly, don’t remain married to your decision—that is, don’t rule out a “divorce.” |
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Importance of Planning
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Planning is one of the most important tasks managers do.
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Planning has three major benefits
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-speedier decision making
-better management of resources, -clearer identification of the action steps needed in order to reach important goals |
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Strategic Planning (v. Operational Planning)
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-Management develops a mission and long-term objectives and determines in advance how they will be accomplished.
-Typically developed by top-level managers for 5 years and are reviewed and revised every year. |
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Operational Planning (v. Strategic Planning)
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-Management sets short-term objectives and determines in advance how they will be accomplished.
-Developed for time frames of one year or less by middle or front-line managers. |
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Strategic Process
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About developing both long and short range plans.
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Strategic Process: Managers...
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(1) develop the mission
(2) analyze the environment (3) set objectives (4) develop strategies (5) implement and control the strategies. |
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Developing strategies takes place at three levels
Three Levels of Strategies |
-Corporate – company manages multiple lines of businesses
-Business – focus is on managing one line of business -Functional – focus is on managing one area of the business |
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Analysis of the Environment
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Create value, strategy must fit with the capabilities of the firm and its external environment.
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situation analysis
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draws out those features in a company’s environment that most directly frame its strategic window of options and opportunities.
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Three Parts of a Situation Analysis
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Analysis of the company’s industry and its competition
Analysis of the company’s particular situation Analysis of the company’s competitive advantage (or lack thereof) |
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Industry Analysis & Five Competitive Forces
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Rivalry among competing firms
Potential development of substitute products and services Potential entry of new competitors Bargaining power of suppliers Bargaining power of consumers |
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Competing Firms
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Scrambling and jockeying for position.
Businesses compete for customers by price, quality and speed. |
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Development of Substitutes
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This occurs when companies from other industries try to move into the market.
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Entry of New Competitors
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How difficult and costly is it for new businesses to enter the industry?
Example – Under Armour |
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Bargaining Power of Suppliers
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-How dependent is the business on its suppliers?
=If the business has only one major supplier and no available alternatives, the supplier has great bargaining power. |
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Bargaining Power of Consumers
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-Consumers of footwear have power because they can shift to other manufacturers on a mere whim, or because of a new style, better price, higher quality, greater convenience, or a host of other reasons.
-However, consumers lose power when they are loyal to a single business like Nike and want to buy only Nike footwear. |
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Analysis of the Company Situation
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Managers use this when they develop business strategies and to determine issues to be addressed in the next 3 steps of the strategic process
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Complete company situation has 5 steps:
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(1) access present strategy
(2) analyze SWOTs (3) assess competitive strength (4) make conclusions (5) decide what issues to address |
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Competitive Advantage
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-What makes us different from our competition?
-Why should a person buy our product or service rather than the competition’s product or service? -Finding core competencies and benchmarking go hand in hand with developing competitive advantage |
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Goals
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State general targets to be accomplished.
Must have them to be successful Goals are your target |
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Objectives
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-State what is to be accomplished in specific and measurable terms by a certain target date.
-Objectives guide the development of plans and let you know if you are achieving your target |
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To write an objective:
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Start with:
Add an action verb: Insert a single, specific, and measurable result: Choose a target date |
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Example of Writing an objective:
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Example:
To increase sales in international markets by 7%-9% in each quarter of the next fiscal year (2013). |
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Criteria to Write Objectives
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Single result
Specific result Measurable result Target date Realistic objective Team-set objective Team commitment |
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Management by objectives (MBO)
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-is the process by which managers and their teams jointly set objectives, periodically evaluate performance, and reward according to the results.
-Set individual objectives and plans, give feedback and evaluate performance, and reward according to performance |
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Corporate Level Strategy
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Currently in the 4th part of the strategic process.
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Corporate level strategies have 3 parts:
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Grand
corporate growth portfolio analysis |
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Grand Strategies
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Growth – attempt to increase size
Stability – hold and maintain Turnaround and retrenchment – do a 180 and dig in Or some combination of these |
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Corporate Growth Strategies
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Concentration
Forward integration Backward integration Related and unrelated diversification Mergers Acquisitions |
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Concentration
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grows existing lines aggressively
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Forward integration
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line of business closer to the consumer
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Backward integration
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– line of business is further away
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Related and unrelated diversification
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go into an unrelated line of business
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Mergers
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companies form a new company
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Acquisitions
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one business buys part or all of another business
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Business Portfolio Analysis
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Corporations determine which lines of business they will be in and how they will allocate resources among the various lines.
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A business line—also called a strategic business unit (SBU)
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is a distinct business with its own customers that is managed reasonably independently of the corporation’s other businesses.
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Business-Level Strategy
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Each line of business must develop its own strategy.
Adaptive strategies Competitive strategies Product life cycle |
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Adaptive Strategies
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-Prospecting – aggressively offering new products or entering new markets
-Defending – stay with their current product line and markets and focus on maintaining or increasing market share -Analyzing – middle of the continuum. Move into new markets cautiously. |
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Competitive Strategies
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-Product differentiation – stress the advantages of their product over those of competitors
-Cost leadership – stress lower prices to attract customers. Must have tight control and an efficient systems process -Focus – target a specific regional market, product line or buyer group |
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Product Life Cycle
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-Development – research and testing.
-Introduction –high levels of promotion. Make consumers aware. -Growth – Competition enters the market. Differentiate by stressing benefits of your brand -Maturity –Few new consumers. Maintain/ offer promotions for repeat purchase -Decline – Sales steadily decline. Eliminate, harvest or maintain? |
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Functional-Level Strategies
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Operational strategies: are used by every functional-level department—marketing, operations, human resources, finance—to achieve corporate- and business-level objectives.
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Functional-Level Strategies (con't)
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-Marketing – defining the target market, finding out what the customer wants, and how to add customer value
-Operations – responsible for systems processes that convert inputs into outputs -Human Resources – work with all departments -Finance – finance business through a variety of methods, prepare financial statements, optimizing use of cash reserves -Other areas – R and D for example |
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Implementing and Controlling
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-Many strategies fail because they are not successfully implemented.
-Might be because strategic planners didn’t do their job -As strategies are implemented they must be controlled -Make sure that management objectives are achieved |
