Chapter 14
Creating, Owning, and
Operating a Business
14.1 Entrepreneurship and Business
Ownership
14.2 Managing Human Resources
14.3 Safety and Security
Sports and Entertainment Marketing
© Thomson/South-Western
Winning Strategies
Reeling in a Professional Career
 Aaron Lee Jakub is a professional angler.
 More people fish than play tennis and golf
combined.
 The number of fishing competitions is
growing rapidly.
 Aaron is trying to find sponsors that will
support both his passion for fishing and his
love of working with children.
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Lesson 14.1
Entrepreneurship and Business
Ownership
Goals
 Define entrepreneur and describe
characteristics of successful
entrepreneurs.
 List and describe the key elements of a
business plan.
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Terms
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entrepreneurs
business plan
sole proprietorship
partnership
corporation
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THE IMPORTANCE OF
ENTREPRENEURS
 entrepreneurs
 individuals who take the risk of starting,
owning, and operating a business
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Impact of Entrepreneurs
 In the U.S., there are more than 5.8
million small businesses that contribute
billions of dollars to the economy
annually.
 Nike was begun as a small business.
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What It Takes to Be an
Entrepreneur
 Business goals must be set.
 financial
 nonfinancial
 Strong money management skills are
necessary.
 Cash reserves sufficient to carry the
entrepreneur through the first lean
years are necessary.
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 Entrepreneurs need effective
communication skills.
 written
 oral
 interpersonal
 “You only get one chance to make a
positive first impression.”
 “Thank you!”
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 List five characteristics and skills
required to be a successful entrepreneur.
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THE BUSINESS PLAN
 business plan
 a formal, written document that provides
the details for a proposed new business
 stakeholders
 investors
 lenders
 suppliers
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Key Elements of the Business
Plan
 executive summary
 a brief description of the business idea
 business description
 history and background of the business
idea
 short- and long-term goals
 products and services that will be offered
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 marketing plan
 market research
 strategies
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marketing
pricing
advertising
promotions
 business structure
 ownership structure
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 sole proprietorship
 owned and operated by one person
 partnership
 two or more individuals sign an agreement
to own and operate a business together
 corporation
 business ownership represented by shares
of stock
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 stockholders
 owners of a corporation
 operations management
 the roles of key managers and staff
members
 financial forecast
 current and projected financial statements
 schedule
 deadlines for specific milestones
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 List seven key elements of a good
business plan.
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Lesson 14.2
Managing Human Resources
Goals
 Explain the need for human resources.
 List and discuss the four functions of
human resource departments.
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Terms
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human resources
job analysis
probationary period
salary
fringe benefits
cafeteria plan
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THE IMPORTANCE OF HUMAN
RESOURCE MANAGEMENT
 human resources
 the employees who work for an
organization
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Attracting and Keeping the
Best
 The human resource department needs
to match the right person to the right job.
 The human resource department
 identifies personnel needs
 attracts and maintains an adequate supply
of employees
 matches abilities and interests with specific
jobs
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provides training and development
develops compensation plans
protects employee well being
maintains a satisfying work environment
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 Why is the human resource department
so important for an organization?
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FOUR FUNCTIONS OF HUMAN
RESOURCE DEPARTMENTS
Planning and Staffing
 The planning process involves
examining the company’s current and
future personnel needs.
 job analysis
 the study of a specific job to identify the
duties and skill requirements of the job
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 permanent employees
 individuals with a long-term commitment to
continue working for the business as long
as the business remains profitable
 part-time workers
 employees in permanent on-going jobs
who work less than 30 hours per week
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 temporary employees
 workers hired for a short time to complete
a specific task
 outsourcing or subcontracting
 specific tasks are completed by individuals
who are not employees of the company
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 resume
 a document that “sells” a job candidate’s
qualifications
 application letter
 accompanies a resume
 must capture attention of employer
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Performance Management
 probationary period
 a test period of a few months to determine
if the new employee will fulfill the needs of
the organization
 Performance evaluations determine
whether the employee is meeting the
job requirements.
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Compensation and Benefits
 salary
 annual job compensation
 regardless of number of hours worked
 incentive pay
 compensation based upon the quantity
and quality of completed work
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 fringe benefits
 extra incentives beyond salary and wages
that employers are not required by law to
provide
 cafeteria plan
 employees pick and choose from various
benefit options to best meet their needs
 On average, fringe benefits comprise
20% - 40% of employees’ salaries.
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Employee Relations
 The human resource department:
 provides workplace orientation
 helps with dispute resolution
 protects employees’ rights and well being
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 Explain the importance of job analysis.
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Lesson 14.3
Safety and Security
Goals
 Describe risks and safety strategies at
concert events.
 Describe increased security measures
at sporting events.
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Terms
 crowd surfing
 stage diving
 moshing
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SAFETY RISKS AT CONCERTS
 Large crowds can present safety
problems.
 Accidents at public events can result in
serious injury.
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Risks at Concerts
 Overcrowded events can result in:
 trampled fans
 compression asphyxia
 an intolerable pressure that prevents
individuals from breathing properly
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 crowd surfing
 when a person is lifted above a densely
packed crowd and is passed from person to
person above audience members’ heads
 injury can result
 clothing, including studs, can scratch and bruise
fans
 when a surfer falls
 other audience members fall too
 people can get trampled by the crowd
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 stage diving
 when a performer or fan dives from the
stage into the crowd
 moshing
 a frenzied form of dance in which people in
a circle rotate while simultaneously
slamming into each other
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 mosh-bobbing
 when fans jump up and down in the mosh
pit
 75% of surveyed concert attendees
revealed:
 they feared for their safety during an event
 they received injuries during an event
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Managing the Risks
 assigned seating
 safety and emergency training for
venue personnel
 bans on:
 crowd surfing
 stage diving
 third-time-out rule
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Fan Precautions
 Concert attendees need to proactively
plan for their own safety.
 Arrive early to familiarize yourself with the
venue’s layout, emergency exits, and firstaid locations.
 Plan with friends where to meet if you
become separated.
 Avoid the front of the stage.
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 For outdoor events, be aware of weather
forecasts and observe changing
conditions.
 Avoid crowd surfing, stage diving, and
moshing.
 Leave early to avoid the rush.
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 Why are concerts and sporting events at
risk for accidents?
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INCREASED SECURITY AT
SPORTING EVENTS
 Terrorism, 9/11, and unpredictable
human behavior are all reasons for
increased security at sporting events.
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Security Plans at Ball Parks
and Stadiums
 Large-scale gatherings have
contingency plans in place for
 natural disasters
 terrorist attacks
 Stadium personnel rehearse safety
procedures.
 how to remain calm during a disaster
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 Additional proactive measures at major
sporting events include
 restricting items that are allowed into the
venue
 limiting curbside access to handicapped
individuals
 close-circuit security televisions
 wireless network security to patrol large
areas surrounding an event
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Replacing Police with Wireless
Video Cameras
 New York City spent $9 million to install
500 security cameras throughout the
city.
 Chicago spent about $5 million on a
2,000-camera system.
 $9.8 million is budgeted to install
surveillance cameras and sensors on a
rail line in Washington, D.C.
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 Why should sporting event planners be
concerned with security?
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PERFORMANCE INDICATORS
EVALUATED
 Understand the latest safety trends at
amusement parks.
 Describe the responsibility or liability for
consumer safety at an amusement park.
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 Explain the importance of “caveat emptor”
at an amusement park.
 Explain how safety at amusement parks is
a publicity issue.
 Describe the conflict between maximizing
profit and incorporating all safety measures.
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THINK CRITICALLY
1. Why must amusement parks rank
safety as a top priority?
2. Should an amusement park be held
liable for injuries suffered by guests
who carelessly do not follow rules?
Explain your answer.
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3. Why are some attorneys interested in
personal injuries and deaths suffered at
amusement parks?
4. How does the topic “Safety at
Amusement Parks” involve ethics
issues?
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