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

1. 1 - INTRODUCTION
STRATEGIC MANAGEMENT
IN SPORTS
10/0539 Marco Porcellana – marco.porcellana@unito.it

2. Agenda
 Me
 You
 Review of the course
 Let’s start

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. 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. 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. 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. 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. 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. 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. Strategy ?
Battle of Cannae – phase 2
2 August 216 B.C. – Second Punic War

11. Strategy ?
Battle of Cannae – phase 3
Romans
-50,000
Hannibal
wins
2 August 216 B.C. – Second Punic War

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. One Lesson in sports
?

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. 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. 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. -
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. Process
Market Corporate
Mission, Vision Business Implementation
and Goals
Resources Functional
Performance
Measurement

19. Real Process
Discarded
Strategy
Intended
Strategy Deliberate
Strategy
Realized
Strategy
Emergent
Strategy
Prof. H. Mintzberg

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