This document provides an overview of key concepts relating to managing the internal environment of a sports organization. It discusses the importance of factors like management, organizational resources, mission statements, systems processes, and organizational structure. It also covers quality management and the concept of total quality management. The goal of TQM is to continually deliver customer value through a focus on customers and continuous process improvement. Understanding and managing the internal environment is crucial for sports organizations to achieve their mission and provide value to stakeholders.

1. Unit 2:Unit 2:
The Sport IndustryThe Sport Industry
EnvironmentEnvironment
Mrs. WoodMrs. Wood
Sports ManagementSports Management

2. Chapter OverviewChapter Overview
 Introduction to College note takingIntroduction to College note taking
 Managing in the Internal EnvironmentManaging in the Internal Environment
 Examining QualityExamining Quality
 Total Quality Management (TQM)Total Quality Management (TQM)
 Managing in the External EnvironmentManaging in the External Environment
 Types of External ManagersTypes of External Managers
 Competing in our Global CommunityCompeting in our Global Community

3. Learning to take notes…College styleLearning to take notes…College style
 College Note taking involves the following:College Note taking involves the following:
 Visual Aids (PowerPoint, whiteboard, note guides.)Visual Aids (PowerPoint, whiteboard, note guides.)
 2 out of every 8 classes.2 out of every 8 classes.
 Notes revolving around key termsNotes revolving around key terms
 Student must listen intensely and write down things theyStudent must listen intensely and write down things they
think are important to the main idea (term).think are important to the main idea (term).
 Failure to do so often results in receiving poor grades.Failure to do so often results in receiving poor grades.
 Students should focus on definition and be able toStudents should focus on definition and be able to
provide an example of each concept discussed.provide an example of each concept discussed.
 SUCCESS EQUALS:SUCCESS EQUALS:
 IDENTIFY MAIN IDEA, AND PROVIDE AN EXAMPLEIDENTIFY MAIN IDEA, AND PROVIDE AN EXAMPLE

4. BRAINSTORMBRAINSTORM
(The Internal Environment)(The Internal Environment)
 What do you think are some of theWhat do you think are some of the
things that sports managers most likelythings that sports managers most likely
have to routinely review INSIDE theirhave to routinely review INSIDE their
own companies and among theirown companies and among their
competitors?competitors?

5. Examining the Internal EnvironmentExamining the Internal Environment
 The Internal Environment:The Internal Environment:
1.1. ManagementManagement
2.2. Organizational Resources-( Human,Organizational Resources-( Human,
Financial,Physical, Informational )Financial,Physical, Informational )
3.3. Mission StatementMission Statement
 Five Internal Factors are:Five Internal Factors are:
 Management, Mission, Resources, theManagement, Mission, Resources, the
Systems Process, and Structure.Systems Process, and Structure.
• Includes these factors with
boundaries that affect performance.

6. Exploring the Internal Environment:Exploring the Internal Environment:
MANAGEMENTMANAGEMENT
 Who are they?Who are they?
 Primary Purpose/Responsibility:Primary Purpose/Responsibility:
• Owners, managers, directors
• As an owner you can control
management to an extent. You can
choose who your managers are going to
be and the philosophy, but not how
they actually manage.

7. Exploring the Internal Environment:Exploring the Internal Environment:
Organizational ResourcesOrganizational Resources
 HumanHuman
 FinancialFinancial
 PhysicalPhysical
 Informational ResourcesInformational Resources
NEW

9. Exploring the Internal Environment:Exploring the Internal Environment:
MISSIONMISSION
 Main Purpose:Main Purpose:
 Developed by:Developed by:
 Missions Identify:Missions Identify:
• SCSD Mission: The primary mission of public education is to
provide our young people with those skills necessary to function
effectively in society. Most often our attention and energy is
directed toward the academic skills of READING, LANGUAGE and
MATHEMATICS.
• Owners, Managers, Directors
• Product, Company, Brand,
Team

10. BRAINSTORMBRAINSTORM
 What do you think are some of theWhat do you think are some of the
most important things that you mustmost important things that you must
consider when trying to come up with aconsider when trying to come up with a
mission for a sports organization?mission for a sports organization?

11. Mission Statements ContinuedMission Statements Continued
 Missions must include:Missions must include:
 Purpose:Purpose:
 The Business:The Business:
 Values:Values:
 All components of mission statements mustAll components of mission statements must
be relevant to all stakeholders.be relevant to all stakeholders.

12. Who are Stakeholders?Who are Stakeholders?
 Stakeholders are:Stakeholders are:
 Stakeholders include:Stakeholders include:
 EmployeesEmployees
 AlumniAlumni
 FansFans
 ShareholdersShareholders
 CustomersCustomers
 SuppliersSuppliers
 The GovernmentThe Government
• Anyone who has a stake (interest) in the business.

13. Example:Example:
SMITHTOWN ATHLETICSSMITHTOWN ATHLETICS
 Mission Statement:Mission Statement:
 Interscholastic athletics in the Smithtown CentralInterscholastic athletics in the Smithtown Central
School District is a part of the physical education andSchool District is a part of the physical education and
health program and therefore an integral part of thehealth program and therefore an integral part of the
district's total educational program. Thedistrict's total educational program. The
interscholastic competitive environment provides aninterscholastic competitive environment provides an
opportunity for our participants to learn positive lifeopportunity for our participants to learn positive life
skills, values and ethics in a climate that demandsskills, values and ethics in a climate that demands
dedication, responsibility, self-discipline, cooperation,dedication, responsibility, self-discipline, cooperation,
a positive work ethic and respect for others.a positive work ethic and respect for others.
 Identify Smithtown’s mission, business, and values.Identify Smithtown’s mission, business, and values.
 Who are their stakeholders?Who are their stakeholders?

14. Exploring the Internal Environment:Exploring the Internal Environment:
ORGANIZATIONAL RESOURCESORGANIZATIONAL RESOURCES
 Function:Function:
 4 Types:4 Types:
 Human:Human:
 Financial:Financial:
 Physical:Physical:
 Informational Resources:Informational Resources:
The organization is where resources come together. Organizations use
different resources to accomplish goals.
• Employees, managers, directors, fans, players
• Money, capital investments
• Facilities, equipment
• Statistics, event promotions

15. Exploring the Internal Environment:Exploring the Internal Environment:
Systems ProcessSystems Process
 Function:Function:
 4 Components:4 Components:
 Inputs:Inputs:
 Transformation:Transformation:
 Outputs:Outputs:
 Feedback:Feedback:
The process by which resources are transformed to product.
• Raw materials
• Potatoes to French Fries
• Finished Product or Service
• Are they customers happy?

16. FEEDBACKFEEDBACK
The Systems Process DiagramThe Systems Process Diagram

17. Exploring the Internal Environment:Exploring the Internal Environment:
StructureStructure
 Function:Function:
 Organized as Departments:Organized as Departments:
 Finance, Marketing, Production, PersonnelFinance, Marketing, Production, Personnel
 Unlimited and can be as many as neededUnlimited and can be as many as needed
 Each dept. is headed by a managerEach dept. is headed by a manager
 Main Objective:Main Objective:
Each department affects the organization as a whole, and each department
impacts every other department
Obtain goals/ mission statement

18. RESULTRESULT
ResourcesResources
StructureStructure
Systems ProcessSystems Process
ManagementManagement
Means (How?)Means (How?)
MISSIONMISSION
ALL ADDS INTOALL ADDS INTO
MISSION,MISSION,
WHICH YIELDSWHICH YIELDS
FINAL RESULTSFINAL RESULTS
OFOF
ORGANIZATIONORGANIZATION
Mission is theMission is the
BIG DADDY!BIG DADDY!
AlignmentAlignment

19. BRAINSTORMBRAINSTORM
 Why is “quality” important to anWhy is “quality” important to an
organization?organization?
 How does quality effect what aHow does quality effect what a
customer or fan perceives as “value?”customer or fan perceives as “value?”

20. QUALITY:QUALITY:
The Cornerstone of SuccessThe Cornerstone of Success
 Quality is:Quality is:
 Customer Value is:Customer Value is:
• Customers assess the quality of an organization’s
outputs by comparing what they require (or want)
from the product or service to their actual use of or
experience with it.
• Benefit(s) customers obtain
when they buy a product or
service.

21. Combining Value and QualityCombining Value and Quality
 Customers not only buy theCustomers not only buy the
product/service, they buy the benefitproduct/service, they buy the benefit
they expect to achieve from it.they expect to achieve from it.
 Example:Example:
 The Yankees and Red Sox make bigThe Yankees and Red Sox make big
dollars on their rivalry series games, asdollars on their rivalry series games, as
their fans expect to see high-quality andtheir fans expect to see high-quality and
intense games; while also watching starintense games; while also watching star
players compete like Alex Rodriguez andplayers compete like Alex Rodriguez and
David Ortiz.David Ortiz.

22. How does an organization striveHow does an organization strive
for and deliver quality?for and deliver quality?
 Total Quality Management (TQM):Total Quality Management (TQM):
 Who is responsible for it?Who is responsible for it?
• The process through which organization members
focus on the customer in order to continually improve
product value.
• All Employees top to bottom

23. Total Quality Management (TQM)Total Quality Management (TQM)
 Carried out through 2 primary principlesCarried out through 2 primary principles
 Primary Principle #1:Primary Principle #1:
 Primary Principle #2:Primary Principle #2:
 Example:Example:
• To deliver customer value
• To continually improve the system
and its process

24. BRAINSTORMBRAINSTORM
(The External Environment)(The External Environment)
 What do you think are factors outsideWhat do you think are factors outside
the organization that influence whatthe organization that influence what
happens inside an organization?happens inside an organization?

25. Examining the External EnvironmentExamining the External Environment
 The External Environment:The External Environment:
 External Factors include:External Factors include:
 Competition, Suppliers, Workforce,Competition, Suppliers, Workforce,
Customers, Shareholders, Society,Customers, Shareholders, Society,
Technology, Economy, Governments.Technology, Economy, Governments.
• Factors outside organizational boundaries
that affect performance.

26. The Influence of theThe Influence of the
External Environment:External Environment:
 External Factor #1:External Factor #1: CUSTOMERSCUSTOMERS
 Who are they?Who are they?
 The Influence:The Influence:
• People who purchase the good or service.
• Without customers organizations CANNOT exist
• Family, Friends, Media
• They either purchase or not

27. The Influence of theThe Influence of the
External Environment:External Environment:
 External Factor #2:External Factor #2: COMPETITIONCOMPETITION
 What is it?What is it?
 The Influence:The Influence:
• Other companies that sell similar goods or
services.
• Organizations must compete with
competitors for customers
• Other Companies, pricing, media

28. The Influence of theThe Influence of the
External Environment:External Environment:
 External Factor #3:External Factor #3: SUPPLIERSSUPPLIERS
 What is it?What is it?
 The Influence:The Influence:
• Effective managers recognize that suppliers are
a key factor for success and develop close
working relationships with them
• Provide resources to produce
products. ( + / - price or quality

29. The Influence of theThe Influence of the
External Environment:External Environment:
 External Factor #4:External Factor #4: WORKFORCEWORKFORCE
 Who are they?Who are they?
 The Influence:The Influence:
• An organization’s employees have a
direct impact on its performance.
• Good customer service vs bad

30. The Influence of theThe Influence of the
External Environment:External Environment:
 External Factor #5:External Factor #5: SHAREHOLDERSSHAREHOLDERS
 Who are they?Who are they?
 The Influence:The Influence:
• Shareholders are the owners of a corporation
because they purchased “share” (stock) in the
corporation.
• They believe in the company or
not

31. The Influence of theThe Influence of the
External Environment:External Environment:
 External Factor #6:External Factor #6: SOCIETYSOCIETY
 Who are they?Who are they?
 The Influence:The Influence:
• Society expects business to be socially
responsible and ethical
• Socially acceptable
companies and products

32. The Influence of theThe Influence of the
External Environment:External Environment:
 External Factor #7:External Factor #7: TECHNOLOGYTECHNOLOGY
 What is it?What is it?
 The Influence:The Influence:
• Today computers are a major part of
every firm’s systems process
• Better, faster, cheaper products.

33. The Influence of theThe Influence of the
External Environment:External Environment:
 External Factor #8:External Factor #8: THE ECONOMYTHE ECONOMY
 What is it?What is it?
 The Influence:The Influence:
• When business activity is slow, fewer fans attend
live sporting events.
• Has impact on net
income.

34. The Influence of theThe Influence of the
External Environment:External Environment:
 External Factor #9:External Factor #9: GovernmentsGovernments
 What is it?What is it?
 The Influence:The Influence:
• Opportunity is often determined by
the support of local government.
• Business operations ie tax

35. Types of Management in theTypes of Management in the
External EnvironmentExternal Environment
 External factors change at fast chaotic pacesExternal factors change at fast chaotic paces
 Managers must be interactive and ready to thriveManagers must be interactive and ready to thrive
 3 Types of Managers:3 Types of Managers:
 REACTIVE MANAGERS:REACTIVE MANAGERS:
 RESPONSIVE MANAGERS:RESPONSIVE MANAGERS:
 INTERACTIVE MANAGERS:INTERACTIVE MANAGERS:
• Make changes only when forced to by
external factors
• Prepare for the changes that they
predict.
• Believe they can create a significant part of their future and
control how it will effect the organization.

36. Competing in ourCompeting in our
Global CommunityGlobal Community
 Primary Purpose:Primary Purpose:
 Necessary for organizational survival!Necessary for organizational survival!
 Increases sales and profitsIncreases sales and profits
 3 Methods of Conducting Business:3 Methods of Conducting Business:
 Domestic Business (Method #1)Domestic Business (Method #1)
 Potential Customer Base about 268 MillionPotential Customer Base about 268 Million
PeoplePeople
• Business activities that take place with in
one nation (ie US only, Germany only)

37. Competing in ourCompeting in our
Global Community (Method #2)Global Community (Method #2)
 International BusinessInternational Business
 Example: Set-up a business in one of the 15Example: Set-up a business in one of the 15
European Union (EU) countries, would add 350European Union (EU) countries, would add 350
million people.million people.
 Expands Total Potential Customer Base to 725 millionExpands Total Potential Customer Base to 725 million
• Products made in one country, and sold in
another.

38. Competing in ourCompeting in our
Global Community (Method #3)Global Community (Method #3)
 Multinational Corporation (MNC or MC )Multinational Corporation (MNC or MC )
 Must have international sales of at least 25% orMust have international sales of at least 25% or
more.more.
 You never start you own global business, but youYou never start you own global business, but you
may become an international manager.may become an international manager.
• Products made and established all over the world.
• Examples Mc Donald’s, NIKE, ADIDAS

39. Global SourcingGlobal Sourcing
(Outsourcing around the globe)(Outsourcing around the globe)
 The difference between domesticThe difference between domestic
managers and global managers lies inmanagers and global managers lies in
where they look for thewhere they look for the best deal onbest deal on
inputsinputs and where they can be mostand where they can be most
advantageouslyadvantageously transformed intotransformed into
outputs.outputs.