Elements Of A Basic Economic Challenge

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Elements Of A Basic Economic Challenge

  1. 1. Elements of a Basic Economic Challenge <ul><ul><li>Scarce resources </li></ul></ul><ul><ul><ul><li>Time </li></ul></ul></ul><ul><ul><ul><li>Money </li></ul></ul></ul><ul><ul><li>Alternative Uses of those Resources </li></ul></ul>
  2. 2. Common Resources <ul><li>Land </li></ul><ul><li>Labor </li></ul><ul><li>Capital </li></ul>
  3. 3. Land <ul><li>Farmland </li></ul><ul><li>Parkland </li></ul><ul><li>Open Space </li></ul><ul><li>Water </li></ul><ul><li>Air Minerals </li></ul><ul><li>Fossil Fuels </li></ul><ul><li>Receptacle for waste products </li></ul>
  4. 4. Labor <ul><li>Time </li></ul><ul><li>Muscle Power </li></ul><ul><li>Brainpower </li></ul>
  5. 5. Capital <ul><li>Buildings </li></ul><ul><li>Machinery </li></ul><ul><li>Equipment </li></ul><ul><li>Roads </li></ul><ul><li>Bridges </li></ul><ul><li>Tunnels </li></ul>
  6. 6. Components in Economic Decision Making <ul><li>What goods and services? </li></ul><ul><li>How are they produced? </li></ul><ul><li>For whom are they produced? </li></ul><ul><li>How extensively are resources used? </li></ul>
  7. 7. Questions every economy must answer… <ul><li>What should be produced? </li></ul><ul><li>How many should be produced? </li></ul><ul><li>What methods should be used? </li></ul><ul><li>How should the goods be distributed? </li></ul>
  8. 8. Two Kinds of Economies <ul><li>Command economy </li></ul><ul><li>Market economy </li></ul>
  9. 9. Characteristics of a Pure Market Economy <ul><li>Economic freedom </li></ul><ul><li>Economic incentives </li></ul><ul><li>Competition </li></ul><ul><li>Private ownership </li></ul><ul><li>Limited government </li></ul>
  10. 10. Demand Curve <ul><li>Price </li></ul><ul><li>Demand </li></ul><ul><li>Relationship between price and demand </li></ul><ul><li>Price goes down, demand goes up </li></ul>         
  11. 11. Supply Curve <ul><li>Quantity </li></ul><ul><li>Price </li></ul><ul><li>Relationship between quantity and price </li></ul><ul><li>Positive relationship = price increases so does quantity supplied </li></ul>     
  12. 12. Equilibrium Price <ul><li>If the demand increases, the demand curve would shift up and right, and the equilibrium price would increase. </li></ul><ul><li>If the demand decreases, the demand curve would shift down and left, and the equilibrium price would decrease   </li></ul> 
  13. 13. A Comparison of Four Types of Market Structures   Market Number of firms Control over price Type of product Entry Competition Pure competition Very large None Standardized Very easy Price-based Monopolistic competition Large Small Differentiated Fairly easy Non-price Oligopoly Few dominant firms Fair amount of control Standardized or differentiated Difficult Non-price competition for differentiated products Monopoly One Large One Blocked to other firms Non-existant
  14. 14. Bonds <ul><li>Bearer Bonds </li></ul><ul><li>Registered Bonds </li></ul>
  15. 15. Inflation <ul><li>Demand-pull </li></ul><ul><li>Cost-push </li></ul>
  16. 16. What is Economics Then? <ul><li>Macroeconomics </li></ul><ul><li>Microeconomics </li></ul><ul><li>Economies of scale </li></ul><ul><li>Law of Diminishing Returns </li></ul><ul><li>Law of Increasing Costs </li></ul>
  17. 17. Concerns of Unions <ul><li>Job security </li></ul><ul><li>Wages </li></ul><ul><li>Job safety </li></ul><ul><li>Medical benefits </li></ul><ul><li>Insurance benefits </li></ul><ul><li>Pension plans </li></ul>
  18. 18. Key Labor Laws <ul><li>National Labor Relations Act </li></ul><ul><li>Norris-LaGuardia Act </li></ul><ul><li>Taft-Hartley Act </li></ul><ul><li>Landrum-Griffin Act </li></ul>
  19. 19. Common Contract Issues <ul><li>Pay </li></ul><ul><li>Fringe benefits </li></ul><ul><li>Bonuses </li></ul><ul><li>Working conditions </li></ul><ul><li>Job security </li></ul>
  20. 20. Organization Handbook Components <ul><li>Statement of objectives </li></ul><ul><li>Organization history </li></ul><ul><li>Organization chart </li></ul><ul><li>Job descriptions </li></ul><ul><li>Personnel policies and procedures </li></ul><ul><li>Terms and conditions of employment </li></ul><ul><li>Holidays and vacations </li></ul><ul><li>Employee benefits and services </li></ul>
  21. 21. Common Types of Organizational Structures <ul><li>Primitive Structure or Agency Structure </li></ul><ul><li>Functional Structure </li></ul><ul><li>Product Structure </li></ul><ul><li>Territorial Structure </li></ul><ul><li>Customer Structure </li></ul><ul><li>Mixed Structure </li></ul>
  22. 22. Primitive Structure Small Town USA   “ A” Baseball Franchise Organizational Chart             Founder Employees
  23. 23. Internal Factors Influencing Structure Development <ul><li>Size </li></ul><ul><li>Product Diversity </li></ul><ul><li>Employee Characteristics </li></ul>
  24. 24. Chain of Command Levels of Management <ul><li>First-line or sometimes called the front line </li></ul><ul><li>Middle </li></ul><ul><li>Top </li></ul>
  25. 25. Pointers to Assure Effective Delegation of Authority <ul><li>Be sure delegates are willing to accept authority </li></ul><ul><li>Be sure the delegates understand what is expected of them </li></ul><ul><li>Be sure the delegates are qualified </li></ul><ul><li>Establish policies to guide decisions </li></ul><ul><li>Specify deadlines </li></ul><ul><li>Establish an evaluation process </li></ul><ul><li>Reward delegates who get things done </li></ul><ul><li>Admit that others can do a task </li></ul>
  26. 26. Commonly Encountered Resistance to Delegation <ul><li>Proper job information not received </li></ul><ul><li>Lack proper training </li></ul><ul><li>Lack self-confidence & fear failure </li></ul><ul><li>Not provided proper equipment or tools </li></ul><ul><li>Not certain the extent of authority provided </li></ul><ul><li>Not confidence there is anything to gain by accepting the authority </li></ul><ul><li>Find it easier for the manager to make the decisions </li></ul><ul><li>Not paid for this responsibility </li></ul>
  27. 27. Organizing for Financial Management <ul><li>For-profit </li></ul><ul><li>Not-for-profit </li></ul><ul><li>Sole Proprietorship </li></ul><ul><li>General Partnership </li></ul><ul><li>Limited Partnership </li></ul><ul><li>Limited Liability Partnership </li></ul><ul><li>Limited Liability Corporation </li></ul><ul><li>S Corporation </li></ul><ul><li>C Corporation </li></ul>
  28. 28. Common Reasons for Starting a Business … <ul><li>Be own boss </li></ul><ul><li>Financial Independence </li></ul><ul><li>Creative Freedom </li></ul><ul><li>Fully use own skills and knowledge </li></ul>
  29. 29. Questions to Answer for Identifying the Niche … <ul><li>What business am I interested in starting? </li></ul><ul><li>What services or products will I sell? </li></ul><ul><li>Is my idea practical? </li></ul><ul><li>Will my idea fill a need? </li></ul><ul><li>What is my competition? </li></ul><ul><li>What is my business’s advantage over existing firms? </li></ul><ul><li>Can I deliver a better quality service? </li></ul><ul><li>Can I create a demand for my business? </li></ul>
  30. 30. Pre-business Checklist <ul><li>What skills and experience do I bring to the business? </li></ul><ul><li>What will be my legal structure? </li></ul><ul><li>How will my company’s business records be maintained? </li></ul><ul><li>What equipment or supplies will I needed? </li></ul><ul><li>How will I compensate myself? </li></ul><ul><li>What financing will I need? </li></ul><ul><li>Where will my business be located? </li></ul><ul><li>What will I name my business? </li></ul>
  31. 31. Financial Accountability & Reporting <ul><li>Existence and Occurrence </li></ul><ul><li>Completeness </li></ul><ul><li>Rights and Obligations </li></ul><ul><li>Valuation and Allocation </li></ul><ul><li>Presentation and Disclosure </li></ul>
  32. 32. Internal Control <ul><li>It is a process. </li></ul><ul><li>It is affected by the people of the organization. </li></ul><ul><li>It provides reasonable assurance regarding the achievement of objectives </li></ul><ul><li>It is geared to the achievement of the organization’s objectives. </li></ul>
  33. 33. Components of a Control Procedure … <ul><li>Control Environment </li></ul><ul><li>Risk Assessment </li></ul><ul><li>Control Activities </li></ul><ul><li>Information and Communication </li></ul><ul><li>Monitoring </li></ul>
  34. 34. Key Questions the Financial Manager needs to Answer <ul><li>What long-term investments should the organization consider? </li></ul><ul><li>What lines of business will the organization be in? </li></ul><ul><li>What sorts of facilities, machinery, and equipment will the organization need? </li></ul><ul><li>Where will the organization secure the long-term financing to pay for investment? </li></ul><ul><li>Will the organization bring additional investors? </li></ul><ul><li>Will the organization borrow the funds needed? </li></ul><ul><li>How will the organization manage everyday financial activities? </li></ul>
  35. 35. Financial Reports <ul><li>Balance sheet </li></ul><ul><li>Statement of cash flows </li></ul><ul><li>Common-size statements </li></ul><ul><li>Common-size balance sheets </li></ul><ul><li>Common-sized income statements </li></ul>
  36. 36. Auditing <ul><li>Internal auditing or control </li></ul><ul><li>External Auditing </li></ul>
  37. 37. The Internal Control Process: Key Objectives <ul><li>Efficiency and effectiveness of operations </li></ul><ul><li>Reliability and completeness of financial and management information </li></ul><ul><li>Compliance with applicable laws and regulations </li></ul>
  38. 38. Internal control consists of … <ul><li>Management oversight and the control culture </li></ul><ul><li>Risk management </li></ul><ul><li>Control activities </li></ul><ul><li>Information and communication </li></ul><ul><li>Monitoring activities </li></ul>
  39. 39. Characteristics of Performance Information <ul><li>Understandability </li></ul><ul><li>Relevance </li></ul><ul><li>Reliability </li></ul><ul><li>Comparability </li></ul><ul><li>Cost beneficial </li></ul>
  40. 40. What is financial planning? <ul><li>It is the foundation upon which an organization can be a successful future. </li></ul><ul><li>It is much easier for decisions to be made to be made in a proactive manner when a plan is in place. </li></ul><ul><li>Risks are reduced and the organization’s competitiveness is increased. </li></ul><ul><li>Financial planning is an integral part of any strategic plan. </li></ul>
  41. 41. Financial planning can help provide solutions … <ul><li>Funding capital projects </li></ul><ul><li>Developing new products and services </li></ul><ul><li>Retiring products and services </li></ul><ul><li>Selling assets </li></ul><ul><li>Purchasing assets </li></ul><ul><li>Protecting assets </li></ul><ul><li>Relocating an organization </li></ul><ul><li>Tax liabilities </li></ul>
  42. 42. Financial Staff’s Activities <ul><li>Forecasting and planning </li></ul><ul><li>Major investment and financial decisions </li></ul><ul><li>Coordination and control </li></ul><ul><li>Dealing with the financial markets </li></ul><ul><li>Risk management </li></ul>
  43. 43. Cash Planning <ul><li>The process of determining the amount of cash needed at a particular point in the budget year by gathering data from both internal and external sources. </li></ul>
  44. 44. Cash <ul><li>Cash is any medium of exchange that a bank will accept at face value. </li></ul><ul><li>Cash Flow is the difference between the number of dollars that came in and the number that went out. </li></ul><ul><li>Operating cash flow tells the manager whether cash inflow will meet the daily cash outflow. </li></ul><ul><li>Cash flow budget records estimates of cash receipts (cash in) and disbursements (cash out) resulting in an estimate of the cash surplus or deficit. </li></ul>
  45. 45. Profit <ul><li>Profit is the sum remaining after all costs, direct and indirect, are deducted from the revenue of an organization. </li></ul>
  46. 46. Profit <ul><li>Profit is the sum remaining after all costs, direct and indirect, are deducted from the revenue of an organization. </li></ul><ul><li>Revenue is the amount charged to customers for goods or services sold to them. There are alternative terms used to identify revenue including sales, fees earned, rent earned, or fares earned. </li></ul>
  47. 47. Common Measures of Profitability <ul><li>Profit margins on Sales </li></ul><ul><li>Return on Total Assets </li></ul><ul><li>Return on Common Equity </li></ul><ul><li>Return on Investments </li></ul>
  48. 48. Margin <ul><li>Margin is the difference between the cost and the selling price of goods produced and services rendered. </li></ul><ul><li>Profit margin is a profitability measure that defines the relationship between sales and net income. </li></ul>
  49. 49. Capital Budgeting <ul><li>Capital budgeting deals with investment decisions involving fixed assets. It is an outline of planned investments in fixed assets. Further, it is a process of analyzing projects and deciding which ones to include in the capital budget. </li></ul><ul><li>A fixed or permanent asset is one that is long-lived. </li></ul>
  50. 50. Budget <ul><li>The budget is a part of the foundation upon which an organization justifies its mission. It is an estimate of revenue and expenses for a given period of time, usually 1-2 years. Further, the budget is a restatement of the organization’s objectives in financial terms. </li></ul>
  51. 51. Common Budget Types <ul><li>Line item </li></ul><ul><li>Program </li></ul><ul><li>Performance </li></ul><ul><li>Zero-based </li></ul><ul><li>Entrepreneurial </li></ul>
  52. 52. Budgeting Process <ul><li>Collecting data </li></ul><ul><li>Analyzing the data </li></ul><ul><li>Identifying the data collected </li></ul><ul><li>Preparing the budget document </li></ul><ul><li>Implementing the approved budget </li></ul>
  53. 53. Sources of Revenue <ul><li>Membership fees </li></ul><ul><li>Ticket sales </li></ul><ul><li>Admissions fees </li></ul><ul><li>Food concessions </li></ul><ul><li>Corporate sponsorships </li></ul><ul><li>Licensing agreements </li></ul><ul><li>Beverage concession </li></ul><ul><li>Lease agreements </li></ul><ul><li>Parking concession </li></ul><ul><li>Merchandise sales </li></ul><ul><li>Luxury suites </li></ul><ul><li>Club/Premium seating </li></ul><ul><li>Premium restaurant agreements </li></ul>
  54. 54. Sample Expenditures <ul><li>Salaries </li></ul><ul><li>Employee benefits </li></ul><ul><li>Insurance premiums </li></ul><ul><li>Guarantees </li></ul><ul><li>Lease agreements </li></ul><ul><li>Vehicle rentals </li></ul><ul><li>Telephone </li></ul><ul><li>Electricity </li></ul><ul><li>Computer maintenance </li></ul><ul><li>Water & Sewage </li></ul><ul><li>Natural gas </li></ul><ul><li>Office supplies </li></ul><ul><li>Postage </li></ul><ul><li>Duplication </li></ul><ul><li>Printing </li></ul><ul><li>Advertising </li></ul><ul><li>Taxes </li></ul><ul><li>Scholarships </li></ul>
  55. 55. Purchasing Process <ul><li>The selection process </li></ul><ul><li>Needs assessment </li></ul><ul><li>Procurement </li></ul>
  56. 56. Purchasing process ensures purchases will … <ul><li>Meet the program needs </li></ul><ul><li>Provide quality </li></ul><ul><li>Be acquired following proper procedures </li></ul><ul><li>Be properly accounted for </li></ul><ul><li>Be maintained for future safe use </li></ul>
  57. 57. Common Components of a Purchasing Program <ul><li>Standardize </li></ul><ul><li>Quality </li></ul><ul><li>Prompt payment </li></ul><ul><li>Early-bird ordering </li></ul><ul><li>Professional and personal relationships with vendors </li></ul><ul><li>Businesslike approach </li></ul>
  58. 58. Factors to be considered in developing a needs assessment <ul><li>Available space & facilities </li></ul><ul><li>Desired activities </li></ul><ul><li>Safety & health of the participants </li></ul><ul><li>Number of participants </li></ul><ul><li>Cost </li></ul><ul><li>Length of season </li></ul><ul><li>Geographical location </li></ul><ul><li>Fit </li></ul><ul><li>inventory </li></ul><ul><li>Staff & supervision </li></ul><ul><li>Instructor/coach </li></ul><ul><li>Continual learning </li></ul><ul><li>Storage </li></ul><ul><li>Age of participants </li></ul><ul><li>Gender of participants </li></ul><ul><li>Skill of participants </li></ul><ul><li>Physical & mental abilities </li></ul><ul><li>Type of organization </li></ul><ul><li>Prioritizing </li></ul>
  59. 59. Guidelines for selecting equipment and supplies … <ul><li>Determine purchasing power </li></ul><ul><li>Begin & maintain a wish list </li></ul><ul><li>Determine organization needs </li></ul><ul><li>Determine quality desired </li></ul><ul><li>Within budget </li></ul><ul><li>Maintenance friendly </li></ul><ul><li>Reputable company </li></ul><ul><li>Old or new </li></ul><ul><li>Based on program goals </li></ul><ul><li>Determine priority need </li></ul><ul><li>Persons with disabilities </li></ul><ul><li>Safety standards </li></ul><ul><li>Review a variety of vendors </li></ul><ul><li>Consider guarantee </li></ul><ul><li>Usability of equipment </li></ul><ul><li>Companies service record </li></ul>
  60. 60. Guidelines for purchasing equipment and supplies … <ul><li>Purchases meet organization’s requirements </li></ul><ul><li>Purchases have management approval </li></ul><ul><li>Purchasing should be done in advance of need </li></ul><ul><li>Specifications clear </li></ul><ul><li>Low cost with quality </li></ul><ul><li>Reputable business firm </li></ul><ul><li>Central purchasing can save dollars </li></ul><ul><li>All request must have purchase requisitions </li></ul><ul><li>Consider local firms </li></ul><ul><li>Obtain competitive bids </li></ul><ul><li>All purchase should be accompanied with a purchase order </li></ul>
  61. 61. Purchase order should contain the following … <ul><li>Name and contact information for person submitting request </li></ul><ul><li>Name and contact information of the vendor </li></ul><ul><li>Date </li></ul><ul><li>Account number </li></ul><ul><li>Department </li></ul><ul><li>Amount </li></ul><ul><li>Quantity </li></ul><ul><li>Unit </li></ul><ul><li>Description </li></ul><ul><li>Unit price </li></ul><ul><li>Special terms: date for delivery, substitutions, discount </li></ul><ul><li>Requestor’s signature </li></ul><ul><li>Supervisor’s signature </li></ul>
  62. 62. Evaluating Equipment before purchase consider … <ul><li>Safety record </li></ul><ul><li>Special considerations </li></ul><ul><li>Does product meet program needs? </li></ul><ul><li>What is the warranty? </li></ul><ul><li>Who is the manufacturer? </li></ul>
  63. 63. The Procurement Process <ul><li>Need established </li></ul><ul><li>Management consultation </li></ul><ul><li>Initial request submitted </li></ul><ul><li>Request reviewed </li></ul><ul><li>Funds available </li></ul><ul><li>Preparation of specifications </li></ul><ul><li>Receipt of bids </li></ul><ul><li>Comparison of bids </li></ul><ul><li>Recommendation of appropriate bid for purchase </li></ul><ul><li>Purchase order to supplier </li></ul><ul><li>Follow-up, receipt of goods </li></ul><ul><li>Payment authorized </li></ul>
  64. 64. Typical Bid Process <ul><li>Writing specifications for approved item(s) to be purchased </li></ul><ul><li>Receive bids </li></ul><ul><li>Evaluate bids to ensure all specifications have been met </li></ul><ul><li>Choose vendor(s) </li></ul><ul><li>Submit the purchase order </li></ul><ul><li>Receive the equipment </li></ul><ul><li>Pay invoice after equipment or supplies are verified </li></ul>
  65. 65. Writing Specifications   Incomplete Worth BW8 Powercell Baseball Bat or equivalent (does not specify length requested and allows vendor to make judgment on substitution) Complete (without substitutions) Worth BW8 Powercell Baseball Bat, 35” Length, 32 ounce weight, 2 5/8” diameter – No substitutions or alternatives Complete (with substitutions) Worth BW8 Powercell Baseball Bat, 35” Length, 32 ounce weight, 2 5/8” diameter Or Easton LK8 Magnum Bat, 35” Length, 32 ounces weight, 2 5/8” diameter Or Louisville Slugger “YB-17” Baseball Bat, 35” Length, 32 ounce weight, 2 5/8” diameter  
  66. 66.     Purchase Order Number 014325   Account Number 10-15320-201 Date June 4, 2003   Subtotal 790.00 Shipping $40.00 Balance Due $830.00   __________________________ _______________________ Requestor Approved by   Special Delivery Instructions: Ship via UPS Ground for arrival by August 1, 2003.     To: FlagHouse Physical Education & Recreation 601 FlagHouse Drive Hasbrouck Hts., NJ 07604-3116 Ship/Bill To: Julia Ann Hypes Dept. of Health, Physical Education and Sport Sciences Morehead State University 201 Laughlin Health Building Morehead, KY 40351   QUANTITY ITEM UNITS DESCRIPTION UNIT PRICE TOTAL 5 G11655 Ea. Wilson Impact Rubber Basketball Size 7 14.00 70.00 10 G5786 Ea. Rawlings “RWW” Leather Basketball Size 6 56.00 560.00 3 G5976 Pr. Thera-Brand Dumbbell Roller 20.00 60.00 10 G11970 Doz. Spalding Top Flight Series X-Out Golf Balls 10.00 100.00            
  67. 67. Public Revenue Streams <ul><li>Tax abatement </li></ul><ul><li>Grants </li></ul><ul><li>Hard Taxes </li></ul><ul><ul><li>Local income tax </li></ul></ul><ul><ul><li>Real estate </li></ul></ul><ul><ul><li>Personal property </li></ul></ul><ul><ul><li>General sales </li></ul></ul><ul><li>Soft Taxes </li></ul><ul><ul><li>Car rental </li></ul></ul><ul><ul><li>Hotel-motel </li></ul></ul><ul><ul><li>player </li></ul></ul><ul><ul><li>Restaurant </li></ul></ul><ul><ul><li>Sin </li></ul></ul><ul><ul><ul><li>Cigarettes </li></ul></ul></ul><ul><ul><ul><li>Alcohol </li></ul></ul></ul><ul><ul><ul><li>Gambling </li></ul></ul></ul><ul><ul><ul><li>Prostitution </li></ul></ul></ul><ul><ul><li>Taxi </li></ul></ul>
  68. 68. Private Funding Sources <ul><li>Cash donations </li></ul><ul><li>In-kind contributions </li></ul><ul><li>Naming rights </li></ul><ul><li>Concessionaire exclusivity agreements </li></ul><ul><li>Food serving rights </li></ul><ul><li>Beverage serving rights </li></ul><ul><li>Premium restaurant rights </li></ul><ul><li>Sponsorship packages </li></ul><ul><li>Life insurance packages </li></ul><ul><li>Lease agreements </li></ul><ul><li>Luxury suites </li></ul><ul><li>Premium seating </li></ul><ul><li>Personal seat licenses </li></ul><ul><li>Parking fees </li></ul><ul><li>Advertising rights </li></ul><ul><li>Vendor/contractor equity </li></ul><ul><li>Bequests and trusts </li></ul><ul><li>Real estate gifts </li></ul>
  69. 69. <ul><li>10 Common Types of Broadcast Media </li></ul><ul><li>ABC, CBS, NBC, FOX, Westinghouse Broadcasting, and Public Broadcasting Service, </li></ul><ul><li>Ultra High Frequency (UHF) Channels, </li></ul><ul><li>Superstations (namely, WGN in Chicago, and WTBS in Atlanta), </li></ul><ul><li>Cable Channels (i.e., TNT in Atlanta, and USA Network in New York City), </li></ul><ul><li>Sports Channels (i.e., Entertainment and Sports Programming Network [ESPN], Sportsvision and Sports Channels in Chicago, St. Louis, Ohio, and Orlando, Prime Network in Houston, Prism in Philadelphia, and Sunshine Network in Orlando, </li></ul><ul><li>Independent Producers, </li></ul><ul><li>Local TV Stations (local Very High Frequency [VHF]), </li></ul><ul><li>Cable Franchises, </li></ul><ul><li>Pay-For-View, and </li></ul><ul><li>Local AM and FM Radio. </li></ul>
  70. 70. Essentials in Financial Planning <ul><li>The mission, goals, and objectives for the overall plan </li></ul><ul><li>An analysis of the organization’s current financial situation </li></ul><ul><li>An analysis of revenue projections versus expense projections </li></ul><ul><li>An analysis of capital projections throughout the financial period of the plan </li></ul><ul><li>Specific information regarding the intended financial state at the end of the time period </li></ul>
  71. 71. Mechanisms for Financing Debt <ul><li>Bonds </li></ul><ul><ul><li>Full-faith and credit obligations </li></ul></ul><ul><ul><li>Non-guaranteed </li></ul></ul><ul><ul><ul><li>Revenue bonds </li></ul></ul></ul><ul><ul><ul><li>Tax increment bonds </li></ul></ul></ul><ul><ul><ul><li>Certificates of participation </li></ul></ul></ul><ul><ul><li>Taxable bonds </li></ul></ul><ul><ul><ul><li>Asset-backed securitizations </li></ul></ul></ul><ul><ul><li>Special bonding authorities </li></ul></ul>
  72. 72. Luxury Seats in Sport Facilities League # suites 2001 # Teams Annual Lease Price MLB 2,286 30 $ 85,000 NBA 2,533 29 $113,000 NFL 4,294 31 $100,000 NHL 2,813 30 $ 77,000 Total 11,926 120 $ 93,750 average price Source: Modified from Howard and Crompton, 2004, 265, 266.   Note: NBA/NHL Shared Arena annual lease price = $199,000.
  73. 73. Sampling of the Number of Club Seats at Various Venues and the prices charged by Teams for their Occupancy   Team Facility Number of Price Range/year Club Seats Lakers (NBA) Staples Ctr 4,500 $12,995 to 14,995/season TrailBlazers (NBA) Rose Garden 2,500 $7,500 to 11,500/season Nuggets (NBA) Pepsi Ctr 1,854 $65 to 100/game Knicks (NBA) Madison Square 3,000 $175 to 1,350/game Coyotes (NHL) American West 1,651 $72/game;$3,250/season Bengals (NFL) Paul Brown 7,700 $995 to 1,900/season Bucs (NFL) Raymond James 12,000 $950 to 2,500/season Ravens (NFL) PSINet 3,196 $108 to 298/game Indians (MLB) Jacobs Field 2,064 $32/game; $1,905/season Rockies (MLB) Coors Field 4,400 $30 to 32/game Rangers (MLB) Arlington 5,700 $2,00 to 3,000/season Source: Modified from Howard and Crompton, 2004, 270
  74. 74. PSLs Average Cost by League League Average Price Range MLB $3,615 –14,600 NBA $ 900 - 5,000 NFL $ 600 – 3,350 NHL $ 750 - 4,000
  75. 75. Groups Benefiting from a Sponsorship <ul><li>The business interest of the sponsoring corporation </li></ul><ul><li>The business interests of the event and participants </li></ul><ul><li>Sponsor’s direct customers </li></ul><ul><li>Customer who buys the product or entertainment </li></ul>
  76. 76. Element in Developing a Sponsorship Philosophy <ul><li>The exchange process </li></ul><ul><li>Philanthropy </li></ul><ul><li>Advertising cost and value </li></ul><ul><li>Return on investment </li></ul><ul><li>Market reaserch </li></ul>
  77. 77. Sponsorship Objectives <ul><li>Achieving sales objectives </li></ul><ul><li>Generating media benefits </li></ul><ul><li>Securing entitlement </li></ul><ul><li>Securing naming rights </li></ul><ul><li>Increasing public awareness of the company, the product, or both </li></ul><ul><li>Altering/reinforcing public perception of the company </li></ul><ul><li>Identifying company with a market segment </li></ul><ul><li>Involving company in the community </li></ul><ul><li>Building good will among decision makers </li></ul><ul><li>Creating an advantage over competitors </li></ul><ul><li>Gaining unique opportunities in terms of hospitality and entertainment </li></ul>
  78. 78. Examples of Athletic Platform <ul><li>The team </li></ul><ul><li>The sport </li></ul><ul><li>The event </li></ul><ul><li>The athlete </li></ul><ul><li>Professional athletics </li></ul><ul><li>Collegiate athletics </li></ul><ul><li>Interscholastic athletics </li></ul><ul><li>Recreational athletics </li></ul>
  79. 79. Components of a Sponsorship Proposal or Agreement <ul><li>Objectives of the sponsorship </li></ul><ul><li>Profile and background of sponsoree </li></ul><ul><li>Promotional opportunities available </li></ul><ul><li>Levels of sponsorship </li></ul><ul><li>Sponsor benefits </li></ul><ul><li>Fee structure </li></ul><ul><li>Payment schedule </li></ul><ul><li>Contract length </li></ul><ul><li>Contract renewal options </li></ul><ul><li>Evaluation methodology </li></ul>
  80. 80. Questions for the planner to ask before drafting proposal <ul><li>How would you describe the organization? </li></ul><ul><li>What is the event to be sponsored? </li></ul><ul><li>What impact do you have on the local community? </li></ul><ul><li>What is the purpose of your event? </li></ul><ul><li>How will the organization involve the community? </li></ul><ul><li>Will the event allow sponsors to reach their consumers? </li></ul><ul><li>Is the event based on a similar successful event? </li></ul><ul><li>Why is the event unique? </li></ul>
  81. 81. Levels of Sponsorship <ul><li>Exclusive sponsorship </li></ul><ul><li>Primary sponsorship </li></ul><ul><li>Subsidiary sponsorship </li></ul><ul><li>Official supplier </li></ul>
  82. 82. Customizing the Package <ul><li>Official status </li></ul><ul><li>Sponsorship fee </li></ul><ul><li>Title rights </li></ul><ul><li>Television exposure </li></ul><ul><li>Public relations and media exposure </li></ul><ul><li>Logo use </li></ul><ul><li>signage </li></ul><ul><li>Advertising rights </li></ul><ul><li>Hospitality rights </li></ul><ul><li>Point-of-sale promotions </li></ul><ul><li>Direct-mail lists </li></ul><ul><li>Product sampling </li></ul><ul><li>Legal liabilities </li></ul><ul><li>Future options </li></ul>
  83. 83. Sponsor Benefits <ul><li>Season tickets </li></ul><ul><li>Advertisement in yearbook, program, or media guide </li></ul><ul><li>Scoreboard/PA exposure </li></ul><ul><li>Special event nights </li></ul><ul><li>Arena signage </li></ul><ul><li>Special items (VIP room, luxury suite, club seats, parking passes) </li></ul>
  84. 84. Sponsorship Pricing <ul><li>Cost-plus </li></ul><ul><li>Competitive market </li></ul><ul><li>Relative-value </li></ul>
  85. 85. Review the following before establishing a price … <ul><li>Degree of primary consumer match with company’s target market </li></ul><ul><li>Size of the primary consumer base </li></ul><ul><li>Potential media publicity </li></ul><ul><li>Sales opportunity, psychological association </li></ul><ul><li>Exposure opportunity </li></ul>
  86. 86. Why Licensing? <ul><li>Consumer demand for logoed apparel has provided sport programs to financially benefit through licensing. In addition to financial gains, exposure for the program is created through the availability of logoed products in the marketplace. </li></ul>
  87. 87. Trademark Classifications <ul><li>Class 6 – metal goods </li></ul><ul><li>Class 16 – paper goods and printed materials </li></ul><ul><li>Class 18 – leather goods </li></ul><ul><li>Class 21 – housewares and glass </li></ul><ul><li>Class 24 – fabrics (pennants and banners) </li></ul><ul><li>Class 25 - clothing </li></ul><ul><li>Class 26 – fancy goods (patches for clothing buttons) </li></ul><ul><li>Class 28 – toys and sporting goods </li></ul><ul><li>Class 41 – education and entertainment services </li></ul><ul><li>TM = Trademark notification </li></ul><ul><li>® = Federally registered mark </li></ul><ul><li>© = Copyright notification </li></ul>
  88. 88. In-house or Outsourced <ul><li>Scope of the licensing program </li></ul><ul><li>Potential for the sale of the product </li></ul><ul><li>Budget </li></ul><ul><li>Availability of specialized expertise </li></ul>
  89. 89. Licensing Agreement Components <ul><li>Parties involved </li></ul><ul><li>Descriptive marks </li></ul><ul><li>Details of marks </li></ul><ul><li>Exclusive or non-exclusive </li></ul><ul><li>Product sample included </li></ul><ul><li>Compliance review schedule </li></ul><ul><li>Royalty </li></ul><ul><li>Royalty audits </li></ul><ul><li>Royalty exemptions </li></ul><ul><li>Payment schedule </li></ul><ul><li>International distribution </li></ul><ul><li>Contract length </li></ul><ul><li>Contract renewal options </li></ul>
  90. 90. Typical Financial Arrangements with a Franchise <ul><li>The franchisor allowing the franchisee to see its name or brand </li></ul><ul><li>The franchisor exercising continuing control over the franchisee </li></ul><ul><li>The franchisor providing assistance to the franchisee </li></ul><ul><li>The franchisee making periodical payments to the franchisor </li></ul>
  91. 91. Questions to ask before buying a franchise … <ul><li>Are you willing and able to take on the responsibilities of managing your own business? </li></ul><ul><li>Will you enjoy the franchise? </li></ul><ul><li>Are you willing to completely follow the franchise system? </li></ul><ul><li>Do you have a history of success in dealing and interacting with people? </li></ul>
  92. 92. Questions continued <ul><li>Can you afford the franchise? </li></ul><ul><li>Have you carefully studied the legal documents? </li></ul><ul><li>Does the franchise you are considering have a track record of success? </li></ul><ul><li>Are the franchisees generally happy and successful? </li></ul><ul><li>Do you like the franchise’s staff whom you will be working with? </li></ul>
  93. 93. Financing a Sport Franchise <ul><li>Public sources </li></ul><ul><ul><li>Government bonds </li></ul></ul><ul><ul><li>Tax dollars </li></ul></ul><ul><ul><ul><li>Sales </li></ul></ul></ul><ul><ul><ul><li>Hotel-motel </li></ul></ul></ul><ul><ul><ul><li>Utility </li></ul></ul></ul><ul><ul><ul><li>Car rental </li></ul></ul></ul><ul><ul><ul><li>Taxi </li></ul></ul></ul><ul><ul><ul><li>Liquor, cigarettes, gambling </li></ul></ul></ul><ul><ul><ul><li>Road </li></ul></ul></ul><ul><ul><ul><li>Capital improvement </li></ul></ul></ul><ul><li>Private sources </li></ul><ul><ul><li>Food serving rights </li></ul></ul><ul><ul><li>Beverage serving rights </li></ul></ul><ul><ul><li>Premier restaurant rights </li></ul></ul><ul><ul><li>Luxury suites </li></ul></ul><ul><ul><li>Club seats </li></ul></ul><ul><ul><li>Parking rights </li></ul></ul><ul><ul><li>Merchandise sales </li></ul></ul><ul><ul><li>Sponsorship contracts </li></ul></ul><ul><ul><li>Licensing agreements </li></ul></ul><ul><ul><li>Land & money gifts </li></ul></ul>
  94. 94. Product of a Box Office <ul><li>Seating plans </li></ul><ul><li>Ticket system </li></ul><ul><li>Ticketing software </li></ul><ul><li>Outsourcing ticketing </li></ul><ul><li>Online ticketing </li></ul><ul><li>Pricing structure </li></ul><ul><li>Credit card service </li></ul><ul><li>Group sales </li></ul><ul><li>Discounted prices </li></ul><ul><li>Advanced sales </li></ul><ul><li>Sales incentive plans </li></ul><ul><li>Tickets </li></ul><ul><ul><li>General admission </li></ul></ul><ul><ul><li>Reserved </li></ul></ul>
  95. 95. Types of Tickets <ul><li>General admission </li></ul><ul><li>Reserved </li></ul><ul><li>Season ticket </li></ul><ul><li>Mini-season plans </li></ul><ul><li>Individual event </li></ul><ul><li>Complimentary </li></ul><ul><li>Press </li></ul><ul><li>Student </li></ul><ul><li>Rain check </li></ul>
  96. 96. Typical Seating <ul><li>Seating configuration </li></ul><ul><li>Discounting ticket prices </li></ul><ul><li>On sale date </li></ul><ul><li>Group sales </li></ul><ul><li>Tickets to be held </li></ul><ul><li>Usher seats </li></ul><ul><li>Obstructed seats </li></ul><ul><li>House seats </li></ul><ul><li>Obstructed view seats </li></ul><ul><li>When to release house seats </li></ul><ul><li>Seats required for performers </li></ul><ul><li>VIP seats </li></ul><ul><li>Press passes </li></ul><ul><li>Complimentary tickets </li></ul><ul><li>Latecomer seats </li></ul><ul><li>Waiting line policy </li></ul><ul><li>Complimentary tickets unclaimed </li></ul><ul><li>Unpaid reservations unclaimed </li></ul><ul><li>Standing room </li></ul>
  97. 97. Retail Operations <ul><li>Sporting events </li></ul><ul><ul><li>Beverage </li></ul></ul><ul><ul><li>Fast food </li></ul></ul><ul><ul><li>Parking </li></ul></ul><ul><ul><li>Premium Restaurants </li></ul></ul><ul><ul><li>Merchandise sales </li></ul></ul><ul><li>Non-sporting events </li></ul><ul><ul><li>Rentals </li></ul></ul><ul><ul><li>Downhill ski facilities& services </li></ul></ul><ul><ul><li>Equestrian services </li></ul></ul><ul><ul><li>Golf facilities & services </li></ul></ul><ul><ul><li>Marina services </li></ul></ul><ul><ul><li>Shuttle bus service </li></ul></ul><ul><ul><li>Theater productions </li></ul></ul><ul><ul><li>Movie theaters </li></ul></ul><ul><ul><li>Vending machine services </li></ul></ul><ul><ul><li>Aquatics facilities & services </li></ul></ul><ul><ul><li>Hotel/motel services </li></ul></ul>
  98. 98. Major Concessionaires <ul><li>Aramark </li></ul><ul><li>Compass </li></ul><ul><li>Fine Hosts Corporation </li></ul><ul><li>Global Spectrum </li></ul><ul><li>Sodexho </li></ul><ul><li>Sportservice Corporation </li></ul><ul><li>Volume Services Ameria </li></ul>
  99. 99. Food Concession Guidelines <ul><li>Employee appearance </li></ul><ul><li>Training goals </li></ul><ul><li>Maintenance goals </li></ul><ul><li>Operation goals </li></ul><ul><li>Regulations </li></ul><ul><li>Inspections </li></ul><ul><li>Patron comforts </li></ul><ul><li>Safety certification </li></ul><ul><li>Sanitation </li></ul><ul><li>Guest relations </li></ul><ul><li>Professional signs & pricing </li></ul><ul><li>Decorations </li></ul><ul><li>Food handlers guidelines </li></ul>
  100. 100. Effective Alcohol Sales <ul><li>Develop an alcohol management plan </li></ul><ul><li>Develop procedures to stop outside alcohol from entering venue </li></ul><ul><li>Establish crowd control procedures for alcohol management </li></ul><ul><li>Install signage to enlighten patrons about responsible drinking </li></ul><ul><li>Establish a strong ejection policy </li></ul><ul><li>Do not promote or advertise drinking during the event </li></ul>
  101. 101. Continued Sales Strategy <ul><li>Make sure security personnel are aware of crowd demographics </li></ul><ul><li>All staff should complete alcohol management school </li></ul><ul><li>Establish consumption policies </li></ul><ul><li>Tailgating only permitted in parking lots under strict supervision of security personnel </li></ul><ul><li>Establish non-alcohol sections within the venue </li></ul><ul><li>Develop a designated-driver program </li></ul>
  102. 102. Strategies for a successful Parking Concession <ul><li>Purchase adequate liability insurance </li></ul><ul><li>Provide adequate surfacing for the proposed traffic </li></ul><ul><li>Ensure safe entrance and exit areas </li></ul><ul><li>Provide adequate lighting </li></ul><ul><li>Plan for immediate snow and ice removal </li></ul><ul><li>Establish an emergency plan for the space </li></ul><ul><li>Ensure that adequate supervision and security is available </li></ul><ul><li>Provide for the safety of the pedestrians </li></ul><ul><li>Plan a graphic system </li></ul><ul><li>Provide an adequate number of cashiers and attendants </li></ul>
  103. 103. Parking Controls <ul><li>Sensors or loops buried in each entrance line </li></ul><ul><li>A single pass lane </li></ul><ul><li>A cashier or checker watching the sellers and authorizing passes </li></ul><ul><li>Spot checks on sellers </li></ul><ul><li>Different colored tickets for different events, days, or hours </li></ul><ul><li>Cash registers, </li></ul><ul><li>TV monitors </li></ul><ul><li>Clean graphics and signs indicating special entrances </li></ul>
  104. 104. Questions for Finding a Retail Niche <ul><li>How is my store special and unique? </li></ul><ul><li>What groups of people would most benefit by what I offer? </li></ul><ul><li>How have I physically set up my store to be user-friendly in a concerted effort to serve this group of people? </li></ul><ul><li>Is my advertising targeted to the customers I desire to serve? </li></ul><ul><li>What products do I like? </li></ul>
  105. 105. Steps to Becoming a Good Buyer <ul><li>Be specific in defining needs </li></ul><ul><li>Understand the options </li></ul><ul><li>Tell the supplier </li></ul><ul><li>Aim for a win-win situation </li></ul><ul><li>Impose deadlines and conditions </li></ul><ul><li>Seek assistance </li></ul><ul><li>Educate the seller about your special needs </li></ul><ul><li>Look for after-sale service </li></ul><ul><li>Yell for help when necessary </li></ul>
  106. 106. Four Ms in Retail <ul><li>Merchandising </li></ul><ul><li>Markups </li></ul><ul><li>Marketing </li></ul><ul><li>Methodology </li></ul>
  107. 107. Keys to Effective Store Layout <ul><li>Maximizing the space </li></ul><ul><li>Controlling & directing traffic flow </li></ul><ul><li>Maximizing exposure </li></ul>
  108. 108. Common Mistakes Made by Retailers <ul><li>No business plan </li></ul><ul><li>No marketing plan </li></ul><ul><li>No sales plan </li></ul><ul><li>No advisory plan </li></ul><ul><li>No cash reserve or real cash flow </li></ul><ul><li>Ignoring the numbers </li></ul><ul><li>Not being automated </li></ul><ul><li>Not knowing your customer </li></ul><ul><li>Ignoring employees </li></ul><ul><li>Being a lone ranger </li></ul>
  109. 109. Minimizing the Damage <ul><li>Lock it up </li></ul><ul><li>Play traffic cop </li></ul><ul><li>Watch who cleans after the employee store closes </li></ul><ul><li>Encourage employees </li></ul><ul><li>Keep an eye on the future </li></ul>
  110. 110. Successful Retail Stores Accomplish the following <ul><li>Found in prominent locations </li></ul><ul><li>Offer personalized service </li></ul><ul><li>Offer competitive pricing </li></ul><ul><li>Print catalogues for employees </li></ul><ul><li>Merchandise their goods/products </li></ul><ul><li>Consider themselves retail outlets </li></ul><ul><li>Sell innovative goods/products </li></ul><ul><li>Concentrate on apparel and accessories </li></ul><ul><li>Stock regularly needed supplies </li></ul><ul><li>Sell licensed merchandise </li></ul>
  111. 111. Critical Areas for Customers <ul><li>Identify the customers </li></ul><ul><li>Differentiate the customers from one another </li></ul><ul><li>Interact with the customers </li></ul><ul><li>Customize items for the customers </li></ul>
  112. 112. Identifying Customers <ul><li>Use drip irrigation </li></ul><ul><li>Verify & update customer data </li></ul><ul><li>Take inventory of all customer data </li></ul><ul><li>Locate customer-identifying information </li></ul><ul><li>Devise strategies for collecting more data </li></ul><ul><li>Verify information at least every two years </li></ul>
  113. 113. Customer Date Gathered <ul><li>Name </li></ul><ul><li>Mailing address </li></ul><ul><li>Business phone </li></ul><ul><li>Home phone </li></ul><ul><li>Fax number </li></ul><ul><li>E-mail </li></ul><ul><li>Position & title </li></ul><ul><li>Account number </li></ul><ul><li>Frequencies of purchases </li></ul><ul><li>Billing & invoice records </li></ul><ul><li>Warranty records </li></ul><ul><li>Coupon redemption </li></ul><ul><li>Credit card number </li></ul><ul><li>Birthdays </li></ul><ul><li>Anniversaries </li></ul><ul><li>Spouses or significant other’s name </li></ul><ul><li>Children’s names </li></ul><ul><li>Buying history </li></ul><ul><li>Preferences </li></ul><ul><li>Sales force records </li></ul><ul><li>Repair & service records </li></ul><ul><li>Loyalty user-card </li></ul><ul><li>Customer comments </li></ul><ul><li>List swaps </li></ul>
  114. 114. Customer Task List <ul><li>Determine first how many customers are known </li></ul><ul><li>Devise programs to increase the number of customers known </li></ul><ul><li>Establish a common format for identifying customers </li></ul><ul><li>Determine how to link customer with purchases </li></ul><ul><li>Make it easy to capture customer data </li></ul><ul><li>Allow customers to enter & update information </li></ul><ul><li>Develop a system to ensure the contact information is current </li></ul><ul><li>Track all referred to and referred by parameters for all prospects & customers </li></ul><ul><li>Consider programs to increase referrals by current customers </li></ul>
  115. 115. Ranking Customers <ul><li>Prioritize efforts & gain most advantage with most valuable customers </li></ul><ul><li>Tailor behavior toward each customers needs </li></ul><ul><li>Develop a customer profitability and valuation model </li></ul><ul><li>Categorize customers by their differing needs </li></ul>
  116. 116. How-to Interact with Customers <ul><li>Direct sales calls </li></ul><ul><li>E-mail and electronic data interchange </li></ul><ul><li>Fax messages </li></ul><ul><li>Mail </li></ul><ul><li>Point-of-purchase </li></ul><ul><li>Telephone </li></ul><ul><li>Website </li></ul>
  117. 117. Why Sport Teams Lose Fans <ul><li>Not important </li></ul><ul><li>Cost outweighs enjoyment </li></ul><ul><li>Dirty facilities </li></ul><ul><li>Boring food service </li></ul><ul><li>Poor seating </li></ul><ul><li>Inconvenient parking </li></ul><ul><li>No luxury seating </li></ul><ul><li>No picnic areas </li></ul><ul><li>No non-smoking areas </li></ul><ul><li>No non-drinking areas </li></ul><ul><li>No place to change the young children </li></ul><ul><li>Souvenirs too expensive </li></ul><ul><li>No other entertainment but the game itself </li></ul><ul><li>Team is not exciting </li></ul><ul><li>Team fails to win consistently </li></ul><ul><li>No opportunities to meet the players </li></ul>
  118. 118. Increasing the Audience <ul><li>Pre-event entertainment </li></ul><ul><li>Youth games at half-time </li></ul><ul><li>Special group promotions </li></ul><ul><li>Special rates for groups </li></ul><ul><li>Giveaways </li></ul><ul><li>Scheduling doubleheaders </li></ul><ul><li>Use of pep band at events </li></ul><ul><li>Face-painting contest </li></ul><ul><li>Team color night </li></ul><ul><li>Reduced ticket fees </li></ul><ul><li>Shoot-out contests at half-time </li></ul><ul><li>Event buses </li></ul><ul><li>Special days </li></ul><ul><li>Student athletes visiting schools as role models </li></ul><ul><li>Clip-out coupons </li></ul><ul><li>Radio giveaways to listeners </li></ul>
  119. 119. Customer Needs over the Internet <ul><li>Security </li></ul><ul><li>Support </li></ul><ul><li>Information </li></ul><ul><li>privacy </li></ul>
  120. 120. What Sets Customers Off <ul><li>Long delays </li></ul><ul><li>Service or sales problems </li></ul><ul><li>Uncaring or sloppy attitude </li></ul><ul><li>Wasted time </li></ul><ul><li>Failure to listen </li></ul><ul><li>Feeling that you are a number and not an important customer </li></ul><ul><li>Failure to follow customer’s instructions </li></ul><ul><li>Broken promises </li></ul><ul><li>Financial losses = poor service </li></ul><ul><li>Inability to provide needed answers </li></ul><ul><li>Impolite salespersons </li></ul>
  121. 121. Outsourcing <ul><li>Outsourcing is where a third-party service provider hosts a family of integrated applications and infrastructure services. </li></ul><ul><li>A key element of outsourcing revolves around the transfer of control over the outsourced process. </li></ul>
  122. 122. Why outsource? <ul><li>Reduction in operating costs </li></ul><ul><li>Increase in controlling operation costs </li></ul><ul><li>Changing management focus to core business functions </li></ul><ul><li>Accessing world class expertise and capabilities </li></ul><ul><li>Redirecting resources toward activities which have a greater return on investment </li></ul><ul><li>Improve production and eliminate backlogs </li></ul><ul><li>Accessing information and professional solutions to non-business core functions </li></ul>
  123. 123. What could be outsourced? <ul><li>Accounting and bookkeeping services </li></ul><ul><li>Financial services </li></ul><ul><li>Pension record keeping services </li></ul><ul><li>Auditing and taxation services </li></ul><ul><li>Data entry and processing </li></ul><ul><li>E-mail system </li></ul><ul><li>Software development </li></ul><ul><li>Website </li></ul><ul><li>Head hunting </li></ul><ul><li>Concessions </li></ul><ul><li>Safety and security </li></ul><ul><li>Risk management </li></ul><ul><li>Parking </li></ul>
  124. 124. Advantages of Outsourcing <ul><li>Volume purchasing </li></ul><ul><li>Concessionaire can return more revenue to the facility </li></ul><ul><li>Capital outlays for equipment avoided </li></ul><ul><li>Management, staff, purchasing, maintenance, inventory, storage, and vendor relations are eliminated </li></ul><ul><li>The vendor takes the financial risks </li></ul>
  125. 125. Disadvantages of Outsourcing <ul><li>Losing some or all control of the operation </li></ul><ul><li>Vendor failing to recognize needs </li></ul><ul><li>Customer dissatisfied with merchandise or services offered </li></ul><ul><li>Scheduling part-time employees </li></ul><ul><li>Purchasing perishable foodstuffs or imported souvenirs </li></ul><ul><li>Determining what stands are open on a given day </li></ul><ul><li>Deciding whether or not the sanitation policies are enforced </li></ul><ul><li>Determining who is stealing money, food, or merchandise </li></ul>
  126. 126. Advantages of In-House Operations <ul><li>Management has complete control </li></ul><ul><li>Management controls pricing </li></ul><ul><li>The quality of product or service is controlled </li></ul><ul><li>There is greater potential for generating revenue </li></ul>
  127. 127. Components for Concessionaire Agreement <ul><li>Date submitted </li></ul><ul><li>Name, address, phone, fax, and e-mail </li></ul><ul><li>Principal contact </li></ul><ul><li>Historical background of company </li></ul><ul><li>Full description of business philosophy </li></ul><ul><li>Full description of financial objectives </li></ul><ul><li>Commission </li></ul><ul><li>Equipment to be provided </li></ul><ul><li>Insurance coverage </li></ul><ul><li>Full description of personnel training program </li></ul><ul><li>Advertising and promotional efforts </li></ul>
  128. 128. Contract Components <ul><li>Type of merchandise or service to be provided </li></ul><ul><li>License to products or provide a service </li></ul><ul><li>Where products are produced </li></ul><ul><li>Option to renew contract </li></ul><ul><li>Termination clause </li></ul><ul><li>Commission clause </li></ul><ul><li>Insurance </li></ul><ul><li>Indemnification </li></ul><ul><li>Right to remove merchandise </li></ul><ul><li>Maintenance clause </li></ul><ul><li>Establish company-vendor committee </li></ul><ul><li>Store or service hours </li></ul><ul><li>Security </li></ul><ul><li>Vending machine contract </li></ul><ul><li>Monthly management meeting </li></ul><ul><li>Exclusions from the contract </li></ul><ul><li>Definition of gross versus net </li></ul><ul><li>Audit controls </li></ul><ul><li>Buyout provisions </li></ul>
  129. 129. Typical Concession Contracts <ul><li>Commission </li></ul><ul><li>Management Fee </li></ul>
  130. 130. Fund Raising <ul><li>Fund raising is the art of soliciting money for charitable organizations, schools, college/universities, political parties, as well as other worthy organizations and projects. </li></ul>
  131. 131. Fundraising is … <ul><li>Anything that increases revenue streams including, but not limited to: </li></ul><ul><ul><li>Deferred giving </li></ul></ul><ul><ul><li>Donations </li></ul></ul><ul><ul><li>Grants </li></ul></ul><ul><ul><li>Merchandising </li></ul></ul><ul><ul><li>Licensing </li></ul></ul><ul><ul><li>Promotions </li></ul></ul><ul><ul><li>Naming events </li></ul></ul><ul><ul><li>Sponsorships </li></ul></ul><ul><ul><li>Special events </li></ul></ul>
  132. 132. Case Statement <ul><li>A case statement is a clear, concise, and compelling explanation why the organization merits the support of its members and others. </li></ul><ul><li>It explains the rationale and objectives of the fund raising program. </li></ul><ul><li>It is the basis for proposals, which will be submitted to corporations, foundations, and individuals. </li></ul>
  133. 133. Steps for Gathering Information for the Critical Review <ul><li>Develop a questionnaire to interview the various stakeholders </li></ul><ul><li>Develop a list of stakeholders </li></ul><ul><li>Critique the mission and beliefs statements and compare to other like organizations </li></ul><ul><li>Examine the goals and objectives of the organization and other similar organizations </li></ul><ul><li>Survey other case statements from similar organizations and communities </li></ul>
  134. 134. Key Ingredients in the Case Statement <ul><li>Description of the compelling need </li></ul><ul><li>Description why the organization is uniquely suited to implement the project </li></ul><ul><li>The purpose and mission of the organization which enables it to implement successfully this project </li></ul><ul><li>How and why the organization was started </li></ul><ul><li>What is the organization doing today in this area that would further support this project </li></ul><ul><li>Where will the organization be five years from now. </li></ul>
  135. 135. Basic Elements of a Fund Raising Program <ul><li>Management structure </li></ul><ul><li>Volunteer requirements established </li></ul><ul><li>Volunteer recruitment </li></ul><ul><li>Identification of giving opportunities </li></ul><ul><li>Overall goal and goals by source </li></ul><ul><li>Cultivation and solicitation strategies </li></ul><ul><li>Public relations </li></ul><ul><li>Prospects at the end of the funnel </li></ul><ul><li>timetable </li></ul>
  136. 136. Guidelines for Fund Raising Plan <ul><li>Must be program specific </li></ul><ul><li>Must establish a prospect list </li></ul><ul><li>Accounting system must be established </li></ul><ul><li>Devise an acknowledgement & follow-up system </li></ul><ul><li>Establish a timetable </li></ul><ul><li>Must have not-for-profit tax status </li></ul><ul><li>Establish a board of directors </li></ul><ul><li>Short- and long-term plan developed </li></ul><ul><li>Prioritized goals </li></ul><ul><li>Simple organizational structure </li></ul><ul><li>Involve an attorney and CPA </li></ul><ul><li>Choose cost-effective projects </li></ul><ul><li>Train staff & volunteers </li></ul>
  137. 137. Fund Raising Issues <ul><li>Definable financial need </li></ul><ul><li>Can fund raising meet needs </li></ul><ul><li>Is this the best why </li></ul><ul><li>Project worthy of support </li></ul><ul><li>Adequate and competent leadership </li></ul><ul><li>Cross-section of volunteers </li></ul><ul><li>Support organization in existence </li></ul><ul><li>Positive reputation </li></ul><ul><li>Cost of raising dollars </li></ul><ul><li>Downside risks </li></ul><ul><li>Time and resource requirements </li></ul><ul><li>Legal issues </li></ul><ul><li>Financial & political climate conducive to success </li></ul>
  138. 138. Components of a Fund Raising Program <ul><li>What </li></ul><ul><li>Where </li></ul><ul><li>Why </li></ul><ul><li>When </li></ul><ul><li>By whom </li></ul><ul><li>Categories or vehicles for giving </li></ul><ul><li>Feasibility </li></ul>
  139. 139. Common Models of Fund Raising <ul><li>Contributor campaigns </li></ul><ul><li>Grant seeking </li></ul><ul><li>Major/planned giving programs </li></ul><ul><li>Product sales </li></ul><ul><li>Membership campaigns </li></ul><ul><li>Special events </li></ul><ul><li>Capital campaigns </li></ul><ul><li>Person-to-person solicitation </li></ul><ul><li>Single-person cultivation </li></ul><ul><li>Telemarketing </li></ul><ul><li>Direct mail solicitation </li></ul><ul><li>Contests of chance </li></ul><ul><li>Annual campaigns </li></ul><ul><li>Memorial requests </li></ul>
  140. 140. Benefits to Contributors <ul><li>Preferred parking </li></ul><ul><li>Complimentary tickets </li></ul><ul><li>Reduced ticket prices </li></ul><ul><li>Special seating </li></ul><ul><li>VIP lounge membership card </li></ul><ul><li>Press guide </li></ul><ul><li>Other publications </li></ul><ul><li>Mention and recognition in game programs </li></ul><ul><li>Travel with team </li></ul><ul><li>Special apparel </li></ul><ul><li>A private booth for home contests </li></ul><ul><li>Named scholarship </li></ul><ul><li>Free golf </li></ul><ul><li>Free or reduce membership to health and wellness center </li></ul><ul><li>Special event ticket priority </li></ul><ul><li>Dinner & banquet seating priority </li></ul><ul><li>Plaques </li></ul><ul><li>Invitations to special events </li></ul><ul><li>Periodic newsletter </li></ul><ul><li>Auto decal </li></ul><ul><li>Away game ticket priority </li></ul><ul><li>Access to press box </li></ul><ul><li>Named scholarship </li></ul><ul><li>Named room </li></ul>
  141. 141. Common Types of Major Gifts <ul><li>Bequests </li></ul><ul><li>Trusts </li></ul><ul><li>Life income </li></ul><ul><li>Life insurance </li></ul><ul><li>Outright gift </li></ul>
  142. 142. Role of Staff/Board for Grants <ul><li>Board Members </li></ul><ul><ul><li>Set annual goals </li></ul></ul><ul><ul><li>Identifies grantmakers </li></ul></ul><ul><ul><li>Cultivates grantors </li></ul></ul><ul><ul><li>Influence to gain access/appointments </li></ul></ul><ul><ul><li>Asks for gift </li></ul></ul><ul><li>Staff </li></ul><ul><ul><li>Develops & administers plan </li></ul></ul><ul><ul><li>Conducts research on grantmakers </li></ul></ul><ul><ul><li>Organizes cultivation process </li></ul></ul><ul><ul><li>Writes proposal </li></ul></ul><ul><ul><li>Provides information for visits </li></ul></ul><ul><ul><li>Accompanies board member and provides information regarding visit </li></ul></ul>
  143. 143. Role of Board/Staff for Major Gifts <ul><li>Board member </li></ul><ul><ul><li>Sets annual goal </li></ul></ul><ul><ul><li>Identifies prospects </li></ul></ul><ul><ul><li>Cultivates prospect </li></ul></ul><ul><ul><li>Uses influence to gain access </li></ul></ul><ul><ul><li>Asks for gift </li></ul></ul><ul><li>Staff </li></ul><ul><ul><li>Develops & administers plan </li></ul></ul><ul><ul><li>Conducts research on grantmakers </li></ul></ul><ul><ul><li>Organizes cultivation process </li></ul></ul><ul><ul><li>Writes proposal </li></ul></ul><ul><ul><li>Provides information for visits </li></ul></ul><ul><ul><li>Accompanies board member and provides information regarding visit </li></ul></ul>
  144. 144. Role of Board/Staff for Special Events <ul><li>Board member </li></ul><ul><ul><li>Set annual goal </li></ul></ul><ul><ul><li>Serves on event committees </li></ul></ul><ul><ul><li>Recruits & solicits sponsorships </li></ul></ul><ul><ul><li>Attends event & recruits attendees/sells tickets </li></ul></ul><ul><li>Staff </li></ul><ul><ul><li>Develops & Administers plan </li></ul></ul><ul><ul><li>Provides staff support to event committee </li></ul></ul><ul><ul><li>Provides research on sponsorship prospects </li></ul></ul><ul><ul><li>Provides staff support during the event </li></ul></ul>
  145. 145. Role of Booster Club Board <ul><li>Help develop fund raising plan </li></ul><ul><li>Ensure the case statement is strong </li></ul><ul><li>Help develop strategies for cultivation </li></ul><ul><li>Evaluate expectation of giving from board </li></ul><ul><li>Solicit gifts at various levels </li></ul><ul><li>Involve other board members </li></ul>
  146. 146. How Board Members Participate <ul><li>Make a personal contribution </li></ul><ul><li>Understand the fund raising plan </li></ul><ul><li>Understand and endorse the case </li></ul><ul><li>Raise money from outside sources </li></ul><ul><ul><li>Identify prospects </li></ul></ul><ul><ul><li>Cultivate prospects </li></ul></ul><ul><ul><li>Ask for gifts </li></ul></ul>
  147. 147. Why Committees? <ul><li>Provides for representation </li></ul><ul><li>Provides for valuable input </li></ul><ul><li>Establishes policy and procedures </li></ul><ul><li>Increases communication </li></ul><ul><li>Allows employee involvement in decision making </li></ul>
  148. 148. Advantages of Committees <ul><li>Unification </li></ul><ul><li>Representation </li></ul><ul><li>Motivation </li></ul><ul><li>Coordination </li></ul><ul><li>Consolidation </li></ul><ul><li>communication </li></ul>
  149. 149. Disadvantages of Committees <ul><li>Increased costs </li></ul><ul><li>Extra time needed to complete task </li></ul><ul><li>Compromise decisions </li></ul><ul><li>Leadership struggles </li></ul><ul><li>Unbalanced representation </li></ul>
  150. 150. Types of Committees <ul><li>Standing committees </li></ul><ul><ul><li>Nomination </li></ul></ul><ul><ul><li>Awards </li></ul></ul><ul><ul><li>Finance </li></ul></ul><ul><ul><li>Human Resource </li></ul></ul><ul><ul><li>Audit </li></ul></ul><ul><ul><li>Constitution or by laws </li></ul></ul><ul><li>Special committees or ad hoc </li></ul><ul><ul><li>Administrative </li></ul></ul><ul><ul><li>Project committees </li></ul></ul>
  151. 151. Structure of a Committee Meeting <ul><li>Call to order </li></ul><ul><li>Roll call </li></ul><ul><li>Minutes of previous meeting </li></ul><ul><li>State the purpose of the meeting </li></ul><ul><li>State briefly the program (agenda) for the meeting </li></ul><ul><li>Discuss and resolve agenda items </li></ul><ul><li>New business </li></ul><ul><li>Adjourn meeting </li></ul>
  152. 152. Sample Agenda <ul><li>Call to order </li></ul><ul><li>Welcome and introductions </li></ul><ul><li>Roll call or attendance </li></ul><ul><li>Approval of the agenda </li></ul><ul><li>Review and acceptance of minutes from last meeting </li></ul><ul><li>Treasurers report </li></ul><ul><li>Other reports </li></ul><ul><li>Action items and discussion </li></ul><ul><li>Discussion items </li></ul><ul><li>Old business </li></ul><ul><li>New business </li></ul><ul><li>Adjournment </li></ul>
  153. 153. Chairperson’s Duties <ul><li>Planning the meeting and establishing the agenda </li></ul><ul><li>Conducting the meeting </li></ul><ul><li>Maintaining records and information </li></ul><ul><li>Getting action on items on the agenda </li></ul><ul><li>Evaluation of committees </li></ul>
  154. 154. Secretary’s Duties <ul><li>Take minutes </li></ul><ul><li>Take attendance </li></ul><ul><li>Prepare minutes for approval </li></ul><ul><li>Maintain a file for the minutes </li></ul><ul><li>Collect committee reports </li></ul><ul><li>Collect staff reports </li></ul>
  155. 155. Treasurer’s Duties <ul><li>Prepare monthly financial reports </li></ul><ul><li>Sign checks (i.e., payroll, expenses, etc.) </li></ul><ul><li>Invest surplus dollars </li></ul><ul><li>Maintain checks and balances </li></ul><ul><li>Prepare a financial report to the board monthly </li></ul>
  156. 156. Components of an Orientation Program <ul><li>Emphasize the importance of being a committee member </li></ul><ul><li>Explain duties of members and officers </li></ul><ul><li>Review committee’s authority </li></ul><ul><li>Review committee’s charge </li></ul><ul><li>Review organization’s policies, practices, and procedures </li></ul><ul><li>Review constitution and by-laws </li></ul><ul><li>Provide a list of all members and contact information </li></ul><ul><li>Review previous minutes </li></ul><ul><li>Review committee’s projects </li></ul><ul><li>Review schedule of meetings, locations, dates, and times </li></ul><ul><li>Review all current assignments of individual committee members </li></ul><ul><li>Review previous membership </li></ul><ul><li>Criteria for selecting new members </li></ul><ul><li>Identify staff and their roles </li></ul><ul><li>Review short- and long-range strategic plan </li></ul>
  157. 157. Components of a Grant Workbook <ul><li>Developing & evaluating proposal ideas, how-to </li></ul><ul><li>Proposal list </li></ul><ul><li>Redefining proposal ideas to find more funding sources </li></ul><ul><li>Expanded and redefined proposal list </li></ul><ul><li>Needs assessment </li></ul><ul><li>Documenting need </li></ul><ul><li>Private funding source research tools </li></ul><ul><li>How to contact private funding source </li></ul><ul><li>Uniqueness </li></ul><ul><li>Case statement </li></ul><ul><li>Advocates, how to use the </li></ul><ul><li>Advocate list </li></ul><ul><li>Advisory committees, how to develop community support </li></ul><ul><li>Advisory committee list </li></ul><ul><li>Government funding sources </li></ul><ul><li>List government funding programs with deadlines </li></ul><ul><li>Sample letters of proposal </li></ul>
  158. 158. Brainstorming Technique <ul><li>Appoint a neutral group leader or employ an outside facilitator </li></ul><ul><li>Appoint a recorder </li></ul><ul><li>Set a time limit – 10 minutes </li></ul><ul><li>State one question or problem </li></ul><ul><li>As each group to generate answers to the problem </li></ul><ul><li>Encourage group members to piggyback on each other’s answers </li></ul><ul><li>Record and post all answers, combining those that are similar. </li></ul>
  159. 159. Reviewing Project from Different Perspectives <ul><li>Subject areas </li></ul><ul><li>Constituencies group </li></ul><ul><li>Type of grant </li></ul><ul><li>Project location </li></ul>
  160. 160. Needs Assessment Approaches <ul><li>Key informant </li></ul><ul><li>Case studies </li></ul><ul><li>Community forum </li></ul><ul><li>Social indicators </li></ul><ul><li>survey </li></ul>
  161. 161. Typical Proposal Sequence <ul><li>Cover letter </li></ul><ul><li>Title page </li></ul><ul><li>Executive summary </li></ul><ul><li>Introduction </li></ul><ul><li>Problem/need </li></ul><ul><li>Goals and objectives </li></ul><ul><li>Methods </li></ul><ul><li>Assessment or evaluation of the project </li></ul><ul><li>Future funding </li></ul><ul><li>Dissemination </li></ul><ul><li>Budget </li></ul><ul><li>attachments </li></ul>
  162. 162. Common Writing Tips <ul><li>Follow the guidelines exactly </li></ul><ul><li>Fill in all the blanks </li></ul><ul><li>Double check all computations </li></ul><ul><li>Repeat anything they ask for </li></ul><ul><li>Your writing style must reflect what the funding source wants </li></ul><ul><li>Begin each section with a strong motivating lead sentence </li></ul><ul><li>Vocabulary – shorter words are generally better than long, complex words </li></ul><ul><li>Style –easily skimmable </li></ul><ul><li>Use short sentences </li></ul><ul><li>Use an active voice and describe emotions and feelings </li></ul><ul><li>Use humor </li></ul><ul><li>Ask the funding source a question and answer it </li></ul><ul><li>Use contractions </li></ul><ul><li>Use short paragraphs – five to seven lines </li></ul><ul><li>Visual attractiveness – use underlining, bullets, bold headings, pictures, charts and graphs </li></ul>
  163. 163. Trends Affecting Not-for-Profits <ul><li>Leadership’s role </li></ul><ul><li>Value-return on investment </li></ul><ul><li>Responsiveness </li></ul><ul><li>Technology use </li></ul><ul><li>Change loops </li></ul><ul><li>Revenue sources </li></ul><ul><li>Generational issues </li></ul><ul><li>Workforce </li></ul><ul><li>Outsourcing &co-souring </li></ul><ul><li>Governance </li></ul><ul><li>Competition & alliances </li></ul><ul><li>Consolidation & mergers </li></ul><ul><li>Globalization </li></ul><ul><li>Image building </li></ul>
  164. 164. What is a Booster Club? <ul><li>A booster club is a not-for-profit entity organized to raise funds for a sport or other organization. </li></ul><ul><li>It is generally an organization operated by volunteers and, in some cases, a few paid staff. </li></ul>
  165. 165. Typical Components of a Constitution or by laws <ul><li>Officers </li></ul><ul><ul><li>terms </li></ul></ul><ul><li>Board </li></ul><ul><ul><li>Terms </li></ul></ul><ul><ul><li>Criteria for membership </li></ul></ul><ul><li>Committees </li></ul><ul><ul><li>Standing </li></ul></ul><ul><ul><li>Ad Hoc </li></ul></ul><ul><li>Board meetings </li></ul><ul><li>Membership categories </li></ul><ul><li>Purpose </li></ul><ul><li>Dissolution </li></ul>
  166. 166. Typical Officers <ul><li>President </li></ul><ul><li>Vice president </li></ul><ul><li>Secretary </li></ul><ul><li>Treasurer </li></ul>
  167. 167. Volunteer Characteristics <ul><li>25% rule </li></ul><ul><li>20% rule </li></ul><ul><li>Volunteers have feelings </li></ul><ul><li>Volunteers have needs </li></ul><ul><li>Volunteers have specific interests </li></ul><ul><li>Volunteers have specific competencies </li></ul><ul><li>Volunteers are individuals </li></ul><ul><li>Volunteers are not professionals </li></ul><ul><li>Volunteers are not paid staff </li></ul><ul><li>Volunteers desire to be of assistance </li></ul><ul><li>Volunteers have the potential to be excellent recruiters </li></ul><ul><li>Volunteers can be educated to assume a variety of roles </li></ul><ul><li>Volunteers are able to grow in professional competency </li></ul>
  168. 168. Recruiting Methods for Volunteers <ul><li>Making the event or activity fun </li></ul><ul><li>Finding out what the volunteer(s) respond to </li></ul><ul><li>Involving the volunteer and family </li></ul><ul><li>Making it easy, attractive, and interesting to volunteer </li></ul><ul><li>Making the volunteer responsible for something </li></ul><ul><li>Treating the volunteer with respect </li></ul><ul><li>Asking for referrals </li></ul><ul><li>Planning social events for the volunteers </li></ul><ul><li>Paying for a volunteer’s training </li></ul><ul><li>Placing volunteers’ photographs on bulletin boards </li></ul>
  169. 169. Before Recruiting Begins <ul><li>Train recruiters </li></ul><ul><li>Develop job descriptions </li></ul><ul><li>Identify potential volunteers </li></ul><ul><li>Match people with jobs </li></ul><ul><li>Obtain approvals </li></ul><ul><li>Annual plans </li></ul><ul><li>Establish recruiting techniques </li></ul><ul><ul><li>Grow your own volunteers </li></ul></ul><ul><ul><li>Appointment from within </li></ul></ul><ul><ul><li>Referrals </li></ul></ul><ul><ul><li>Friendship groups </li></ul></ul><ul><ul><li>Family involvement </li></ul></ul><ul><ul><li>Benefit packages </li></ul></ul><ul><ul><li>Peripheral groups </li></ul></ul><ul><ul><li>Use of media to communicate volunteer opportunities </li></ul></ul>
  170. 170. Retaining Volunteers <ul><li>by making </li></ul><ul><ul><li>The event or activity attractive to belong </li></ul></ul><ul><ul><li>Certain the event is well organized </li></ul></ul><ul><ul><li>People feel needed and appreciated </li></ul></ul><ul><ul><li>Sure there is a friendly atmosphere </li></ul></ul><ul><ul><li>A special effort to call volunteers </li></ul></ul><ul><ul><li>Certain the volunteer understands duties </li></ul></ul><ul><ul><li>Sure to get volunteers input </li></ul></ul><ul><ul><li>A special effort to recognize or reward volunteers </li></ul></ul><ul><ul><li>The event or activity fun </li></ul></ul><ul><ul><li>Certain that everyone receives an appropriate thank you </li></ul></ul>
  171. 171. Volunteer Orientation Models <ul><li>Large group sessions </li></ul><ul><li>Small group sessions </li></ul><ul><li>Personal, one-on-one orientation sessions </li></ul><ul><li>Personal, one-on-one mentoring </li></ul>
  172. 172. Orientation Agenda <ul><li>Philosophical & conceptual framework of the organization </li></ul><ul><li>Content of the various organization’s programs </li></ul><ul><li>Governance of the organization </li></ul><ul><li>Organization of the various organization’s programs </li></ul><ul><li>History of the organization </li></ul><ul><li>Policies & procedures of the organization </li></ul><ul><li>Bylaws and the proper conduct of business </li></ul><ul><li>Ethics issues </li></ul><ul><li>Benefits of volunteering and special privileges </li></ul><ul><li>Identification of key people in the organization </li></ul><ul><li>Telephone numbers of key people </li></ul><ul><li>Realistic job previews </li></ul>
  173. 173. Elements of Supervision <ul><li>Establishing criteria of success, standards of performance, and programs objectives such as the job description and annual plan of work </li></ul><ul><li>Measuring actual volunteer performance with respect to these stated criteria of success through observation, conferences, and evaluation </li></ul><ul><li>Making corrections, as needed, through managerial action. </li></ul>
  174. 174. Common Solutions to Conflict Management <ul><li>Retraining </li></ul><ul><li>Reassignment </li></ul><ul><li>Redesign </li></ul><ul><li>Dismissal </li></ul>
  175. 175. Factors causing Conflict <ul><li>Lack of agreement about program goals </li></ul><ul><li>Ill-defined & unmeasurable objectives </li></ul><ul><li>Absence of a preconceived plan </li></ul><ul><li>Excluded from the planning process </li></ul><ul><li>Inaccessibility of leaders </li></ul><ul><li>Distortion of information accidentally or deliberately </li></ul><ul><li>Lack of trust </li></ul><ul><li>Hidden agendas </li></ul><ul><li>Ineffective listening </li></ul><ul><li>A belief in absolutes </li></ul><ul><li>A belief that only two sides of an issue exist and that one must be right and the other wrong </li></ul><ul><li>Individual differences </li></ul><ul><li>Misunderstandings about territory, policy, authority, and role expectations </li></ul>
  176. 176. Common Types of Awards <ul><li>Group recognition </li></ul><ul><li>Individual Recognition </li></ul><ul><li>Informal recognition </li></ul><ul><li>Public & media recognition </li></ul><ul><li>Formal recognition </li></ul>
  177. 177. Possible Areas of Liability <ul><li>Buildings </li></ul><ul><li>Motor vehicles </li></ul><ul><li>Program activities </li></ul><ul><li>Employee conduct </li></ul><ul><li>Business general liability </li></ul><ul><li>Performance guarantees </li></ul><ul><li>Financial security </li></ul><ul><li>Fringes for employees as prescribed by law </li></ul>
  178. 178. Insurance Coverages Available <ul><li>Professional teams, athletes and events </li></ul><ul><li>Amateur athletes and events </li></ul><ul><li>College and high teams and athletes </li></ul><ul><li>Athletic associations </li></ul><ul><li>Accident and injury coverage </li></ul><ul><li>Sport venues </li></ul><ul><li>Promotions & special events </li></ul><ul><li>General public liability </li></ul><ul><li>Liability coverage protecting employees, directors, and officers </li></ul><ul><li>Sports camps </li></ul><ul><li>Transportation insurance </li></ul><ul><li>Catastrophic injury </li></ul><ul><li>Disability </li></ul><ul><li>Youth & adult teams and leagues </li></ul><ul><li>Health, fitness, sport clubs </li></ul><ul><li>Vehicle insurance </li></ul><ul><li>Protection of finances and operations </li></ul>
  179. 179. Components of a Comprehensive Insurance Program <ul><li>Should include , but not limited to: </li></ul><ul><ul><li>Property </li></ul></ul><ul><ul><ul><li>Fire, flood, hurricane, tornado, and/or earthquake </li></ul></ul></ul><ul><ul><li>Business income </li></ul></ul><ul><ul><li>Commercial liability </li></ul></ul><ul><ul><li>Machinery and equipment </li></ul></ul><ul><ul><li>Employment practice liability </li></ul></ul><ul><ul><li>Special liability </li></ul></ul><ul><ul><li>Bonding </li></ul></ul><ul><ul><li>Crime insurance </li></ul></ul><ul><ul><li>Employee benefits </li></ul></ul>
  180. 180. Basic Liability Areas Insurance Companies Review to Determine Insurability <ul><li>Security </li></ul><ul><li>Maintenance </li></ul><ul><li>Housekeeping </li></ul><ul><li>Emergency services </li></ul><ul><li>Parking and traffic control </li></ul><ul><li>Concessions </li></ul><ul><li>Chemical usage & storage </li></ul><ul><li>Staff training & preparedness </li></ul><ul><li>Fiscal operations </li></ul><ul><li>Staff supervision </li></ul><ul><li>Activity planning </li></ul><ul><li>Equipment used in building & grounds maintenance and sport equipment </li></ul>
  181. 181. Checklist for Securing Insurance - Never assume you are covered; - Always check your insurance coverage; - Check insurance policy at least twice a year for changes and to be sure you still have adequate coverage; - File a report on an incident as soon as it happens and submit a proper claim to the insurance company; - Anyone involved in an activity outside their job jurisdiction or areas of control may seek to secure more personal liability coverage; - Be aware of potential hazards and report them to the necessary people or group; - Secure a short-term group accident policy to cover special activities when risk is forseeable; - Analyze the liability aspects of your program or area and ensure adequate coverage in these areas; - Have release forms; they may solve small liability problems because the participants acknowledge the risk they are assuming and their voluntary participation in the program, but do not rely on them to solve any negligent actions and have participants in events obtain medicals.
  182. 182. Considerations Before Selecting Deductible <ul><li>Access student-athlete’s or patron’s primary insurance first </li></ul><ul><li>Select a higher deductible </li></ul><ul><li>Review physical activity involved and gender, lower for contact activities and lower for non-contact activities </li></ul><ul><li>Coordinate all medical care through HMO or a special arrangement with local hospital </li></ul><ul><li>Consider placing a physician on a stipend </li></ul><ul><li>Establish a referral policy to maximize in-house medical services </li></ul>
  183. 183. Selecting Appropriate Insurance Program <ul><li>Select a competent independent insurance consultant </li></ul><ul><li>Know insurance vendors and the various types of products available </li></ul><ul><li>Secure a number of quotes </li></ul><ul><li>Seek adequate coverage </li></ul><ul><li>Identify risks </li></ul><ul><li>Insure the correct risks </li></ul><ul><li>Always reduce insurance costs by establishing a risk management plan and preventing or reducing risks </li></ul><ul><li>Understand the basic policy and exclusions </li></ul>
  184. 184. Elements in Effective Financial Governance <ul><li>Defining the roles & responsibilities of the board of directors & senior management in the risk management process </li></ul><ul><li>Developing appropriate checks and balances for effective oversight & control of risk development </li></ul><ul><li>Establishing policy & control guidelines </li></ul><ul><li>Designing risk measurement & reporting procedures </li></ul>
  185. 185. Checklist for risk management <ul><li>Is there a risk management policy? </li></ul><ul><li>Does the policy clearly define the underlying business rationale? </li></ul><ul><li>Is the hedge orientation towards a “market view” or a defined strategy? </li></ul><ul><li>Does the policy include approval levels? </li></ul><ul><li>Is there an oversight function? </li></ul><ul><li>Is there a clear reporting to senior management about business risks? </li></ul><ul><li>Do proper expertise & systems reside in-house to identify & identify risk? </li></ul><ul><li>Is there risk management expertise within the organization? </li></ul><ul><li>Are management reports reviewed by senior management? </li></ul><ul><li>Does the Board periodically review performance? </li></ul>
  186. 186. Sport Entity Risk Management Concerns <ul><li>Property loss </li></ul><ul><ul><li>Stationary, mobile, & leased </li></ul></ul><ul><li>Employee safety & health </li></ul><ul><ul><li>Accident prevention </li></ul></ul><ul><ul><li>Industrial hygiene </li></ul></ul><ul><li>Personnel </li></ul><ul><ul><li>Workers compensation </li></ul></ul><ul><ul><li>Pension plans </li></ul></ul><ul><ul><li>Key personnel loss </li></ul></ul><ul><ul><li>Contractual employees </li></ul></ul><ul><ul><li>Insurance </li></ul></ul><ul><ul><ul><li>Life, disability, & health </li></ul></ul></ul><ul><li>Liability control </li></ul><ul><ul><li>General, vehicle, & product </li></ul></ul><ul><li>Environmental protection </li></ul><ul><ul><li>Storage, pollution control, & waste disposal </li></ul></ul><ul><li>Emergency planning </li></ul><ul><ul><li>Crowd control, fire, bombing, & spectator health emergencies </li></ul></ul><ul><li>Financial risk </li></ul><ul><ul><li>Interest rate risk </li></ul></ul><ul><ul><li>Credit risk </li></ul></ul><ul><ul><li>Currency risk </li></ul></ul><ul><ul><li>Liquidity risk </li></ul></ul><ul><ul><li>Theft of product </li></ul></ul><ul><ul><li>Theft or money </li></ul></ul><ul><ul><li>Market risk </li></ul></ul>
  187. 187. Property Insurance Checklist <ul><li>Identify & value buildings, equipment, and land </li></ul><ul><li>Identify & value property leased from others </li></ul><ul><li>Identify & value property leased to others </li></ul><ul><li>Identify location & value of stationary inventory (average cost) </li></ul><ul><li>Identify and value inventory being transported (average cost) </li></ul><ul><li>Identify & value property under construction </li></ul><ul><li>Identify & value owned or leased vehicles </li></ul><ul><li>Identify special perils to which property is exposed </li></ul>
  188. 188. Liability Loss Sources <ul><li>Bodily or personal injury to employee, customers, or guests </li></ul><ul><li>Property damage to real or personal property of others </li></ul><ul><li>Intentional injury to people or their reputations, including illegal accusations or restraint of alleged shoplifters </li></ul><ul><li>Wrongful hiring, sexual harassment, or invasion of privacy or employees or job applicants </li></ul><ul><li>Vicarious liability </li></ul>
  189. 189. Potential Methods for Dealing with Potential Losses <ul><li>Risk avoidance </li></ul><ul><li>Risk assumption </li></ul><ul><li>Risk transfer through insurance </li></ul><ul><li>Risk transfer other than insurance </li></ul><ul><li>Self-insurance </li></ul><ul><li>Loss prevention </li></ul><ul><li>Loss reduction </li></ul>
  190. 190. Assuming risk = <ul><li>Loss costs are small and will be funded by current cash flow </li></ul><ul><li>Loss exposure are retained and funded with a cash reserve </li></ul><ul><li>Loss exposures are retained & recognized in an unfunded reserve account </li></ul><ul><li>A self-insured plan is in operation </li></ul>
  191. 191. Common Loss Reduction Activities <ul><li>Automatic fire sprinkler system </li></ul><ul><li>Fire walls and doors </li></ul><ul><li>Training replacement personnel </li></ul><ul><li>Regular training of all personnel </li></ul><ul><li>Evacuation plans </li></ul><ul><li>Crowd control plans </li></ul><ul><li>Disaster plans </li></ul><ul><li>Security plans </li></ul>

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