Strategic Management in Sports

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First Lecture for the course in Strategic Management in Sports at the SUISM, Interfaculty School of Motor Sciences of The University of Turin. Prof. Marco Porcellana

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Strategic Management in Sports

  1. 1. 1 - INTRODUCTION STRATEGIC MANAGEMENT IN SPORTS 10/0539 Marco Porcellana – marco.porcellana@unito.it
  2. 2. Agenda  Me  You  Review of the course  Let’s start
  3. 3. Me  Degree in Economics and Business – Univ. Torino  Marketing/Export Manager in Consumer Goods  Master in Business Administration – SDA Bocconi, Milano  International Management Program – NYU’s Stern, N.Y.  Strategy Manager in Services  Business Development in Services  53S – SUISM  Experiences in sports:
  4. 4. You 3 questions in 3’ now:  Name  Work  Passion 7 lines during the break this morning:  What do you expect to get out of learning this course? YOUR PERSONAL LEARNING GOAL ?  Provide a written example of ONE CASE that in your opinion, requires EFFECTIVE STRATEGY IMPLEMENTATION. Why?
  5. 5. The course works this way  11 lessons  1 case studies presentations  2 external presentations  1 wind-up lecture  Friday 9.00-11.00 am  Office hours: after class, on appointment (preferably)
  6. 6. This is what you have to do  Attend Class (at least 7 out of 11)  Join the discussion  No books required  Some articles analysed  One book suggested  No ringtones activated  Assessment  50 % Groupwork  50 % Final examination  All details in the syllabus
  7. 7. Course description  Integrative course  Experiences  Studies  Multi-functional issues  finance, marketing, organization,…  Skills  analytical, creative, marketing, financial and managerial  Aim: being able to recognize and analyze organizational problems, developing realistic solutions and effectively tracking goals
  8. 8. Strategos: “The general’s view” Holistic “big picture” General Lower officer (e.g., supply logistics Tactical details infantry, heavy armored vehicles) 40% SCIENCE – 60% ART
  9. 9. Strategy ? Battle of Cannae – phase 1 Romans • 80,000 infantry • 6,000 cavalry Hannibal • 40,000 infantry • 10,000 cavalry 2 August 216 B.C. – Second Punic War
  10. 10. Strategy ? Battle of Cannae – phase 2 2 August 216 B.C. – Second Punic War
  11. 11. Strategy ? Battle of Cannae – phase 3 Romans -50,000 Hannibal wins 2 August 216 B.C. – Second Punic War
  12. 12. The Lessons of Cannae  Strategic thinking can overcome superior resources  Decisevely allocate resources  Gain advantage in some dimension  Neutralize competitor’s advantage  Competitive intelligence is necessary  Planning and execution is equally important  Prof. Czepiel – NYU’s Stern - 2001
  13. 13. One Lesson in sports ?
  14. 14. Puma - recent history  Lost glory at the end of the 80s  Losing money since 1986  In 1991, Jochen Zeitz (28) is chief of Marketing  In 1993, Jochen Zeitz is the new CEO  New vision: focus on regaining control of markets  Created Sport-fashion  Recruited an all-star management team  Defined a 4 phases plan
  15. 15. Puma – IV phase plan  I - II:  Establish solid financial footing  Improve brand equity  III  further explore the potential of the PUMA brand = GROWTH  And financial success contributing positively to the environment in which the company operates = SOCIAL RESPONSIBILITY  IV  Long-term growth  New strong major shareholder
  16. 16. Puma - Sales and Earnings 3000 2500 Net Sales 2000 Net Earnings 1500 1000 500 0 1995 1993 1994 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Phase I Phase II Phase III Phase IV
  17. 17. - 100 300 400 500 600 200 g-03 a-03 l-03 o-03 g-04 a-04 l-04 o-04 g-05 DAX_b100 PUMA_b100 a-05 l-05 o-05 g-06 a-06 PUMA AG share l-06 o-06 g-07 a-07 l-07 o-07 g-08 a-08 l-08 o-08 g-09 a-09 l-09 o-09 g-10
  18. 18. Process Market Corporate Mission, Vision Business Implementation and Goals Resources Functional Performance Measurement
  19. 19. Real Process Discarded Strategy Intended Strategy Deliberate Strategy Realized Strategy Emergent Strategy Prof. H. Mintzberg
  20. 20. Schedule of Topics Topics Links 1 Introduction 2 Vision, Mission and Objectives Communication – Marketing - Economia Aziendale 3 Internal Analysis Gestione e Programmazione Eventi Sportivi 4 External & Industry Analysis Gestione e Programmazione Eventi Sportivi 5 Strategic Choices Filosofia Morale, Comunicazione+Persuasione e Cambiamento, 6 Game Theory Approach to Competitive Statistica Dynamics 7 Strategy Formulation Tools Negotiation 8 Strategy Implementation Comunicazione+Persuasione e Cambiamento, 9 Strategy Review, Evaluation and Control Economia Aziendale

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