Chapter 2
The Sport Industry Environment
Lussier/Kimball, Sport Management, First Edition
Copyright © 2004, by South-Western, a division of Thomson Learning
PPT2-1
Internal environment
Includes these factors within boundaries that affect performance:
Management
Mission
Resources
The Systems Process
Structure
Lussier/Kimball, Sport Management, First Edition
Copyright © 2004, by South-Western, a division of Thomson Learning
PPT2-2
Mission Statement
An organization’s purpose or reason for being.
YMCA Mission: To put Christian principles into practice
through programs that build healthy spirit, mind and
body for all.
Lussier/Kimball, Sport Management, First Edition
Copyright © 2004, by South-Western, a division of Thomson Learning
PPT2-3
Stakeholders
Stakeholders include:
Employees
Alumni
Fans
Shareholders
Customers
Suppliers
The Government
Lussier/Kimball, Sport Management, First Edition
Copyright © 2004, by South-Western, a division of Thomson Learning
PPT2-4
Internal Factors
Management
Resource
Mission
Systems Process
Structure
Lussier/Kimball, Sport Management, First Edition
Copyright © 2004, by South-Western, a division of Thomson Learning
PPT2-5
Organizational Resources
Human
Financial
Physical
Informational Resources
Lussier/Kimball, Sport Management, First Edition
Copyright © 2004, by South-Western, a division of Thomson Learning
PPT2-6
Human Resources
The organization’s workforce, responsible for
achieving mission and objectives.
Lussier/Kimball, Sport Management, First Edition
Copyright © 2004, by South-Western, a division of Thomson Learning
PPT2-7
Systems Process
Method used to transform inputs into outputs
Inputs
Transformation
Outputs
Feedback
Lussier/Kimball, Sport Management, First Edition
Copyright © 2004, by South-Western, a division of Thomson Learning
PPT2-8
Structure
Structure may be organized into departments:
Finance
Marketing
Production
Personnel
Lussier/Kimball, Sport Management, First Edition
Copyright © 2004, by South-Western, a division of Thomson Learning
PPT2-9
Structure
Each department affects the organization as a
whole,and each department affects every other
department.
Lussier/Kimball, Sport Management, First Edition
Copyright © 2004, by South-Western, a division of Thomson Learning
PPT2-10
Quality
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.
Lussier/Kimball, Sport Management, First Edition
Copyright © 2004, by South-Western, a division of Thomson Learning
PPT2-11
Customer Value
Benefit(s) customers obtain when they buy a
product or service.
Lussier/Kimball, Sport Management, First Edition
Copyright © 2004, by South-Western, a division of Thomson Learning
PPT2-12
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.
Lussier/Kimball, Sport Management, First Edition
Copyright © 2004, by South-Western, a division of Thomson Learning
PPT2-13
Total Quality Management (TQM)
The process through which organization
members focus on the customer in order to
continually improve product value.
Lussier/Kimball, Sport Management, First Edition
Copyright © 2004, by South-Western, a division of Thomson Learning
PPT2-14
Primary Principles of TQM
To deliver customer value
To continually improve the system and its
processes
Lussier/Kimball, Sport Management, First Edition
Copyright © 2004, by South-Western, a division of Thomson Learning
PPT2-15
External Environment
Factors outside organizational boundaries that
affect performance
Lussier/Kimball, Sport Management, First Edition
Copyright © 2004, by South-Western, a division of Thomson Learning
PPT2-16
External Environment Factors
Competition
Suppliers
Workforce
Customers
Shareholders
Society
Technology
Economy
Governments
Lussier/Kimball, Sport Management, First Edition
Copyright © 2004, by South-Western, a division of Thomson Learning
PPT2-17
Customers
Without customers,
organizations cannot exist.
Lussier/Kimball, Sport Management, First Edition
Copyright © 2004, by South-Western, a division of Thomson Learning
PPT2-18
Competition
Organizations must compete with
competitors for customers
Lussier/Kimball, Sport Management, First Edition
Copyright © 2004, by South-Western, a division of Thomson Learning
PPT2-19
Suppliers
Effective managers recognize that
suppliers are a key factor for success
and develop close working
relationships with them.
Lussier/Kimball, Sport Management, First Edition
Copyright © 2004, by South-Western, a division of Thomson Learning
PPT2-20
The Workforce
An organization’s employees have
a direct impact on its performance
Lussier/Kimball, Sport Management, First Edition
Copyright © 2004, by South-Western, a division of Thomson Learning
PPT2-21
Shareholders
Shareholders are the owners of
corporations because they purchased
a “share” (stock) in the corporation.
Lussier/Kimball, Sport Management, First Edition
Copyright © 2004, by South-Western, a division of Thomson Learning
PPT2-22
Society
Society expects business to be
socially responsible and ethical.
Lussier/Kimball, Sport Management, First Edition
Copyright © 2004, by South-Western, a division of Thomson Learning
PPT2-23
Technology
Today computers are a major part
of every firm’s systems process.
Lussier/Kimball, Sport Management, First Edition
Copyright © 2004, by South-Western, a division of Thomson Learning
PPT2-24
The Economy
When business activity is slow,
fewer fans attend live sporting
events.
Lussier/Kimball, Sport Management, First Edition
Copyright © 2004, by South-Western, a division of Thomson Learning
PPT2-25
Governments
Opportunity is often determined by the
support of local government.
Lussier/Kimball, Sport Management, First Edition
Copyright © 2004, by South-Western, a division of Thomson Learning
PPT2-26
Reactive Managers
Make changes only when forced to by external
factors.
Lussier/Kimball, Sport Management, First Edition
Copyright © 2004, by South-Western, a division of Thomson Learning
PPT2-27
Responsive Managers
Prepare for the changes that they predict.
Lussier/Kimball, Sport Management, First Edition
Copyright © 2004, by South-Western, a division of Thomson Learning
PPT2-28
Interactive Managers
Believe they can create a significant part of their
future and control how it will affect the
organization.
Lussier/Kimball, Sport Management, First Edition
Copyright © 2004, by South-Western, a division of Thomson Learning
PPT2-29
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.
Lussier/Kimball, Sport Management, First Edition
Copyright © 2004, by South-Western, a division of Thomson Learning
PPT2-30
Multinational Corporation (MNC)
You may never start your own global business,
but you may become an international manager.
Lussier/Kimball, Sport Management, First Edition
Copyright © 2004, by South-Western, a division of Thomson Learning
PPT2-31
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.
Lussier/Kimball, Sport Management, First Edition
Copyright © 2004, by South-Western, a division of Thomson Learning
PPT2-32