Chapter 2

The Sport Industry Environment

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Internal environment
Includes these factors within boundaries that affect performance: Management Mission Resources The Systems Process Structure

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Mission Statement
An organizations purpose or reason for being.
YMCA Mission: To put Christian principles into practice through programs that build healthy spirit, mind and body for all.

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Stakeholders
Stakeholders include: Employees Alumni Fans Shareholders Customers Suppliers The Government
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Internal Factors
Management Resource Mission Systems Process Structure

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Organizational Resources
Human Financial Physical Informational Resources

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Human Resources
The organizations workforce, responsible for achieving mission and objectives.

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Systems Process
Method used to transform inputs into outputs Inputs Transformation Outputs Feedback

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Structure
Structure may be organized into departments: Finance Marketing Production Personnel

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Structure
Each department affects the organization as a whole,and each department affects every other department.

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Quality
Customers assess the quality of an organizations outputs by comparing what they require (or want) from the product or service to their actual use of, or experience with, it.

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Customer Value
Benefit(s) customers obtain when they buy a product or service.

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Value and Quality

When we bought tickets to a Washington Wizards/Boston Celtics game, we expected to watch a high-quality game, and we wanted to see star player Michael Jordan, who would be playing with the Wizards.

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Total Quality Management (TQM)

The process through which organization members focus on the customer in order to continually improve product value.

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Primary Principles of TQM

To deliver customer value To continually improve the system and its processes

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External Environment
Factors outside organizational boundaries that affect performance

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External Environment Factors

Competition Suppliers Workforce Customers Shareholders Society Technology Economy Governments
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Customers
Without customers,
organizations cannot exist.

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Competition

Organizations must compete with competitors for customers

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Suppliers
Effective managers recognize that suppliers are a key factor for success and develop close working relationships with them.

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The Workforce

An organizations employees have a direct impact on its performance

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Shareholders
Shareholders are the owners of corporations because they purchased a share (stock) in the corporation.

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Society

Society expects business to be socially responsible and ethical.

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Technology

Today computers are a major part of every firms systems process.

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The Economy

When business activity is slow, fewer fans attend live sporting events.

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Governments
Opportunity is often determined by the support of local government.

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Reactive Managers
Make changes only when forced to by external factors.

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Responsive Managers
Prepare for the changes that they predict.

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Interactive Managers
Believe they can create a significant part of their future and control how it will affect the organization.

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International Business
If you expand to the European Union (EU) by setting up operations in one of those 15 countries, you have 350 million more potential customers, for a total of around 725 million.

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Multinational Corporation (MNC)

You may never start your own global business, but you may become an international manager.

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Global Sourcing
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.

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