Chapter 2 - The Sport Industry Environment Notes


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Mr. Elsesser's Sports Management class's unit 2 notes.

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Chapter 2 - The Sport Industry Environment Notes

  1. 1. Unit 2: The Sport Industry Environment Mr. Elsesser Sports Management
  2. 2. Chapter Overview <ul><li>Introduction to College note taking </li></ul><ul><li>Managing in the Internal Environment </li></ul><ul><li>Examining Quality </li></ul><ul><ul><li>Total Quality Management (TQM) </li></ul></ul><ul><li>Managing in the External Environment </li></ul><ul><li>Types of External Managers </li></ul><ul><li>Competing in our Global Community </li></ul>
  3. 3. Learning to take notes…College style <ul><li>College Note taking involves the following: </li></ul><ul><ul><li>Visual Aids (PowerPoint, whiteboard, note guides.) </li></ul></ul><ul><ul><ul><li>2 out of every 8 classes. </li></ul></ul></ul><ul><ul><li>Notes revolving around key terms </li></ul></ul><ul><ul><ul><li>Student must listen intensely and write down things they think are important to the main idea (term). </li></ul></ul></ul><ul><ul><ul><li>Failure to do so often results in receiving poor grades. </li></ul></ul></ul><ul><ul><li>Students should focus on definition and be able to provide an example of each concept discussed. </li></ul></ul><ul><ul><li>SUCCESS EQUALS: </li></ul></ul><ul><ul><ul><li>IDENTIFY MAIN IDEA, AND PROVIDE AN EXAMPLE </li></ul></ul></ul>
  4. 4. BRAINSTORM (The Internal Environment) <ul><li>What do you think are some of the things that sports managers most likely have to routinely review INSIDE their own companies and among their competitors? </li></ul>
  5. 5. Examining the Internal Environment <ul><li>The Internal Environment: </li></ul><ul><li>Five Internal Factors are: </li></ul><ul><ul><li>Management, Mission, Resources, the Systems Process, and Structure. </li></ul></ul>
  6. 6. Exploring the Internal Environment: MANAGEMENT <ul><li>Who are they? </li></ul><ul><li>Primary Purpose/Responsibility: </li></ul>
  7. 8. Exploring the Internal Environment: MISSION <ul><li>Main Purpose: </li></ul><ul><li>Developed by: </li></ul><ul><li>Missions Identify: </li></ul>
  8. 9. BRAINSTORM <ul><li>What do you think are some of the most important things that you must consider when trying to come up with a mission for a sports organization? </li></ul>
  9. 10. Mission Statements Continued <ul><li>Missions must include: </li></ul><ul><ul><li>Purpose: </li></ul></ul><ul><ul><li>The Business: </li></ul></ul><ul><ul><li>Values: </li></ul></ul><ul><li>All components of mission statements must be relevant to all stakeholders. </li></ul>
  10. 11. Who are Stakeholders? <ul><li>Stakeholders are: </li></ul><ul><li>Stakeholders include: </li></ul><ul><ul><li>Employees </li></ul></ul><ul><ul><li>Alumni </li></ul></ul><ul><ul><li>Fans </li></ul></ul><ul><ul><li>Shareholders </li></ul></ul><ul><ul><li>Customers </li></ul></ul><ul><ul><li>Suppliers </li></ul></ul><ul><ul><li>The Government </li></ul></ul>
  11. 12. Example: SMITHTOWN ATHLETICS <ul><li>Mission Statement: </li></ul><ul><ul><li>Interscholastic athletics in the Smithtown Central School District is a part of the physical education and health program and therefore an integral part of the district's total educational program.  The interscholastic competitive environment provides an opportunity for our participants to learn positive life skills, values and ethics in a climate that demands dedication, responsibility, self-discipline, cooperation, a positive work ethic and respect for others.  </li></ul></ul><ul><ul><li>Identify Smithtown’s mission, business, and values. </li></ul></ul><ul><ul><li>Who are their stakeholders? </li></ul></ul>
  12. 13. Exploring the Internal Environment: RESOURCES <ul><li>Function: </li></ul><ul><li>4 Types: </li></ul><ul><ul><li>Human: </li></ul></ul><ul><ul><li>Financial: </li></ul></ul><ul><ul><li>Physical: </li></ul></ul><ul><ul><li>Informational Resources: </li></ul></ul>
  13. 14. Exploring the Internal Environment: Systems Process <ul><li>Function: </li></ul><ul><li>4 Components: </li></ul><ul><ul><li>Inputs: </li></ul></ul><ul><ul><li>Transformation: </li></ul></ul><ul><ul><li>Outputs: </li></ul></ul><ul><ul><li>Feedback: </li></ul></ul>
  14. 15. The Systems Process Diagram FEEDBACK
  15. 16. Exploring the Internal Environment: Structure <ul><li>Function: </li></ul><ul><li>Organized as Departments: </li></ul><ul><ul><li>Finance, Marketing, Production, Personnel </li></ul></ul><ul><ul><li>Unlimited and can be as many as needed </li></ul></ul><ul><ul><li>Each dept. is headed by a manager </li></ul></ul><ul><li>Main Objective: </li></ul>
  16. 17. RESULT Resources Structure Systems Process Management Means (How?) MISSION ALL ADDS INTO MISSION, WHICH YIELDS FINAL RESULTS OF ORGANIZATION Mission is the BIG DADDY!
  17. 18. BRAINSTORM <ul><li>Why is “quality” important to an organization? </li></ul><ul><li>How does quality effect what a customer or fan perceives as “value?” </li></ul>
  18. 19. QUALITY: The Cornerstone of Success <ul><li>Quality is: </li></ul><ul><li>Customer Value is: </li></ul>
  19. 20. Combining Value and Quality <ul><li>Customers not only buy the product/service, they buy the benefit they expect to achieve from it. </li></ul><ul><li>Example: </li></ul><ul><ul><li>The Yankees and Red Sox make big dollars on their rivalry series games, as their fans expect to see high-quality and intense games; while also watching star players compete like Alex Rodriguez and David Ortiz. </li></ul></ul>
  20. 21. How does an organization strive for and deliver quality? <ul><li>Total Quality Management (TQM): </li></ul><ul><li>Who is responsible for it? </li></ul>
  21. 22. Total Quality Management (TQM) <ul><li>Carried out through 2 primary principles </li></ul><ul><li>Primary Principle #1: </li></ul><ul><li>Primary Principle #2: </li></ul><ul><li>Example: </li></ul>
  22. 23. BRAINSTORM (The External Environment) <ul><li>What do you think are factors outside the organization that influence what happens inside an organization? </li></ul>
  23. 24. Examining the External Environment <ul><li>The External Environment: </li></ul><ul><li>External Factors include: </li></ul><ul><ul><li>Competition, Suppliers, Workforce, Customers, Shareholders, Society, Technology, Economy, Governments. </li></ul></ul>
  24. 25. The Influence of the External Environment: <ul><li>External Factor #1: CUSTOMERS </li></ul><ul><ul><li>Who are they? </li></ul></ul><ul><li>The Influence: </li></ul>
  25. 26. The Influence of the External Environment: <ul><li>External Factor #2: COMPETITION </li></ul><ul><ul><li>What is it? </li></ul></ul><ul><li>The Influence: </li></ul>
  26. 27. The Influence of the External Environment: <ul><li>External Factor #3: SUPPLIERS </li></ul><ul><ul><li>What is it? </li></ul></ul><ul><li>The Influence: </li></ul>
  27. 28. The Influence of the External Environment: <ul><li>External Factor #4: WORKFORCE </li></ul><ul><ul><li>Who are they? </li></ul></ul><ul><li>The Influence: </li></ul>
  28. 29. The Influence of the External Environment: <ul><li>External Factor #5: SHAREHOLDERS </li></ul><ul><ul><li>Who are they? </li></ul></ul><ul><li>The Influence: </li></ul>
  29. 30. The Influence of the External Environment: <ul><li>External Factor #6: SOCIETY </li></ul><ul><ul><li>Who are they? </li></ul></ul><ul><li>The Influence: </li></ul>
  30. 31. The Influence of the External Environment: <ul><li>External Factor #7: TECHNOLOGY </li></ul><ul><ul><li>What is it? </li></ul></ul><ul><li>The Influence: </li></ul>
  31. 32. The Influence of the External Environment: <ul><li>External Factor #8: THE ECONOMY </li></ul><ul><ul><li>What is it? </li></ul></ul><ul><li>The Influence: </li></ul>
  32. 33. The Influence of the External Environment: <ul><li>External Factor #9: Governments </li></ul><ul><ul><li>What is it? </li></ul></ul><ul><li>The Influence: </li></ul>
  33. 34. Types of Management in the External Environment <ul><li>External factors change at fast chaotic paces </li></ul><ul><ul><li>Managers must be interactive and ready to thrive </li></ul></ul><ul><li>3 Types of Managers: </li></ul><ul><ul><li>REACTIVE MANAGERS: </li></ul></ul><ul><ul><li>RESPONSIVE MANAGERS: </li></ul></ul><ul><ul><li>INTERACTIVE MANAGERS: </li></ul></ul>
  34. 35. Competing in our Global Community <ul><li>Primary Purpose: </li></ul><ul><ul><li>Necessary for organizational survival! </li></ul></ul><ul><ul><ul><li>Increases sales and profits </li></ul></ul></ul><ul><li>3 Methods of Conducting Business: </li></ul><ul><ul><li>Domestic Business (Method #1) </li></ul></ul><ul><ul><ul><li>Potential Customer Base about 268 Million People </li></ul></ul></ul>
  35. 36. Competing in our Global Community (Method #2) <ul><ul><li>International Business </li></ul></ul><ul><ul><ul><li>Example: Set-up a business in one of the 15 European Union (EU) countries, would add 350 million people. </li></ul></ul></ul><ul><ul><ul><ul><li>Expands Total Potential Customer Base to 725 million </li></ul></ul></ul></ul>
  36. 37. Competing in our Global Community (Method #3) <ul><ul><li>Multinational Corporation (MC) </li></ul></ul><ul><ul><ul><li>Must have international sales of at least 25% or more. </li></ul></ul></ul><ul><ul><ul><li>You never start you own global business, but you may become an international manager. </li></ul></ul></ul>
  37. 38. Global Sourcing <ul><li>The difference between domestic managers and global managers lies in where they look for the best deal on inputs and where they can be most advantageously transformed into outputs. </li></ul>