Chapter 3
Strategic
Management
and Policy Development
Chapter Overview
Introduction
Strategic Management
 a. The definition of strategic management
 b. Strategic decision making
 c. The 5 Ps’ of strategy
 c. Executing the strategic plan
Policy
 a.
 b.
 c.
What is a policy?
The importance of policy in sport organizations
Developing policy
Strategic Management Activities and Policy Development
Defining Strategic Management
(Pearce and Robinson, 2007)
 Involves decisions and action plans evolving from the
organization’s mission
 Considers both internal and external environments
 Involves short- and long-term objectives and plans
 Requires strategic choices in budget resource allocation
 In summary it involves planning, organizing,
leading, and evaluating.
Levels of Strategy
Your Point of View
 Consider this statement:
Timing is everything in
strategic decision making.
 Is this true, do you think so?
Why or why not?
 What factors might apply
when determining the
best time to make a
decision?
The Five Ps of Strategy
(Mintzberg, 1988)
 Planning- setting a course of action.
 Purpose- actions that are deliberate or
emergent based on change or opportunity.
 Ploy- specific maneuver to deal with an issue.
 Position- location of the organization relative to
its business and competitors.
 Perspective- culture or perspective of the
organization.
Executing the Strategic
Management Plan (Belcourt &
McBey, 2010)
 Define the vision or purpose
 Convert the vision to measurable objectives
 Define a plan to achieve the goal
 Implement the plan
 Measure results and revise the plan accordingly
Some Common Strategic Decisions
in Sport Organizations
 Developing partnerships with
sponsors or other organizations
 Long-term planning
 Establishing an organizational
brand
 Shifting programming
dramatically
APPLY THE STRATEGIC
DECISION
The legendary sprinter has
dominated races over the last 10
years. It started way back in 2002
when he started winning gold's at
the junior championships and it’s
continued up to the present. In total,
Bolt has won six Olympic and eight
World Championship gold medals.
In Olympic competition, he’s never
won anything but gold. The guy has
just simply dominated the track
world for a long time now.
By the time the 2016 games roll
around, Bolt will be 29 going on 30,
so he will no doubt have his toughest
challenge in front of him. It’s still a
long time in the future, but to this
point, there’s absolutely no reason
to doubt the greatest sprinter we’ve
ever seen.
USAIN BOLT
Steps in Strategic Decision Making
(Chelladurai, 2009)
 Define the problem
 List all possible alternatives
 Assess the pros and cons
 Consider the global and long-term impacts of the various alternatives
 Select the best course of action
 Remember good decisions are made when the data is accurate and
the means of using it appropriately. In the business world, analytics
is analyzing information to give insight.
Importance of Strategy
in Sport Management
 To plan effectively because when the stakes are high,
poor management can mean losing a billion-dollar
product line.
 To capitalize on opportunities- businesses at warp-speed
can only have an advantage is solid strategy is in place.
 To make effective decisions-no decision is a decision, a
decision can be effective or ineffective.
 To enhance the manager’s entrepreneurial role(Mintzberg, 1975) describes 4 roles, entrepreneur,
disturbance handler, resource allocator, and the
negotiator.
MANAGERS
(Mintzberg, 1975) describes 4 roles:
entrepreneur: a person who
starts/manages a business and take
greater risk than most.
disturbance handler: in leadership a
person who handles problems and solve
them or find a solution.
resource allocator: In a professional
setting, a resource allocator distributes
funding, of course, but also determines
such things as: space needs, how many
people are needed and where their skills
should be applied, how long a project will
take, how much time each worker will
spend on the project, and how many and
what kind of supplies or equipment are
needed.
The negotiator : person who discusses a
problem with the aim of achieving
agreement between different people or
groups.
What Is a Policy?
 Broad guidelines or procedures for meeting organizational objectives
 General, written statements that provide a framework for decision
making and a common direction for all parts of the organization
 Different from objectives, strategies, procedures, or philosophy
 Assignment:
 Give the differences between (policy, objectives, strategies, procedures,
and philosophy). Refer to page 51.
Policy
 All organizations deal with
various difficult situations
 The answer may not be
immediately clear; and the
consequences could be farreaching
 Policies are needed to deal with
these issues/ situations:
 Finance, human resources,
facility use and control,
equipment, travel, public
relations, promotion, and other
items related to managing risk.
Despite years of protesting by tennis pioneer Billie
Jean King and others, in 2005 the French Open and
Wimbledon still refused to pay women's and men's
players equally through all rounds. In 2005, Williams
met with officials from both tournaments, arguing
that female tennis players should be paid as much
as male tennis players.[43] Although WTA tour
President Larry Scott commented that she left "a
very meaningful impression", Williams's demands
were rejected.
Case Method Analysis Steps for
Developing Policy
 Define the issue and the facts,
the scope of the problem, its
impact for the organization
 Collect and assess information
on both sides of the issue
 Evaluate the potential impact
of each option
 Choose the favored option
and specifically define the
action
VENUS WILLIAMS AND EQUAL
PAY IN TENNIS
CASE STUDY:
Use the case method
analysis steps for
developing a policy for
both.
Policy Example #1
CASE STUDY
 CASE STUDY # 2
 Using the case method
analysis steps.
 As a member of the
coaching staff, you
notice that after a
victorious win the team
often go to various
drinking establishments
to celebrate. This could
possibly become a
major problem. What is
a good policy that you
can enforce that can
cover that and other
behaviors?
CASE STUDY
#3
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