Ch.4
National Basketball AssociationShooting for Overseas Success
1.
What global attitude do you think the NBA and its member teams exhibit?Explain why this attitude has or hasn’t contributed to the NBA’s globalsuccess.
The NBA and its member teams appear to exhibit the geocentric attitude, aworld-oriented view that focuses on using the best approaches and peoplefrom around the globe. From this perspective, major issues and decisions areviewed globally by looking for the best approaches and people regardless of country origin. This attitude has contributed to the NBA’s success becausethe decision makers recognized that, in order to successfully transplant theNBA, they would have to use the best approaches and people no matterwhere they were from. They also tailored their product to best meet theneeds of the various markets they were looking at.2.
What legal-political, economic, and cultural differences might be significant to an NBA team recruiting a player from a foreign country? How would youdeal with these differences? As NBA teams start playing in other countries,would these differences change? Explain.
Legal-political differences could arise in terms of contractual terms andconditions. Economic differences probably wouldn’t be as significant becausea player from a foreign country would probably want to be paid in U.S.dollars. However, currency exchange rates might present a challenge.Cultural differences could arise in terms of how a player adapted to therealities and expectations of team members, coaches, and audiences. Mostlikely as each country has a different set of norms and cultural values.3.
How has the NBA exhibited effective and efficient managing in the globalenvironment?
The NBA has capitalized on its inherent popularity around the world. Inaddition, David J. Stern, NBA’s commissioner, has been instrumental inmarketing both the game of basketball and Michael Jordan globally. Heunderstood the similarities and differences between the domestic (U.S.) andforeign markets. In addition, the league itself reflects a geocentric attitude inthat it has been willing to showcase talent from around the globe.(For another assessment of the NBA’s success in global markets, youcan look at, e.g., William Echikson, “Michael, the NBA, and the Slam-Dunkingof Paris,”
Business Week,
November 3, 1997, p. 82. available in our library)4.
What could other organizations learn from the NBA’s global experience?
Physical presence of the corporation is necessary. It is not sufficient to just“sell” the product (or the play games as in the NBA). It is necessary todevelop a “relationship” with consumers in different countries in which youare doing business. Developing a truly international web presence can alsobe effective. Understanding and being sensitive to different cultural values isa key to success as well. (remember the HSBC TV commercial, “the world’slocal bank”?)
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National Basketball Association
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