International Sport Management Exam 1

Olympic Issues- Host City Selection

"Two-phase" election proceeding Implemented December 1999 for 2008 First Phase NOC of each country selects a city and each selected city then becomes an applicant for the IOC to consider Second Phase Candidature file: a written document produced by each Candidate city Visit from the IOC Evaluation Commission IOC meets and votes

Governance of Sport- Local or State Level

(Club, Team, Association) Coaches athletes, organizes participation Registered with national leagues or federations

Globalization in Sport

(Economic considerations are most significant) the need to expand markets and drive profits by (inter)national companies using sport as a sponsorship platform Diversification in assets, capital flows, and new market lead to globalize (culture elements also play a role (ex) Cultural uniqueness through opening and closing ceremonies at the Olympic games

Governance of Sport- International Level

(ICC, FIFA) Governs and develops the sport on a global level and runs major international events such as World Cups

Governance of Sport- Regional Level

(NFL, NHL, MLB) Where there is no overriding international authority, the regional league governs level and runs major team events

Governance of Sport- National Level

(National Sport League) Develops sport and runs national events Affiliated with international governing body

Finance- Sport Infrastructure

(Private)Heavily rely on funding by local communities and governments Affects the organization and community One time international event or local team Citizens have taken action to voice their opinion and positions about stadiums financing and construction

Reasons to Enter the Global Marketplace

1. Access to new markets and the subsequent development of new customers 2. Enhanced marketing opportunities 3. Resource acquisition (personnel, facilities, technology, financial resources) 4. Sport and brand growth 5. Profit generation Clear, measurable, and realistic goals & objectives are needed (i.e., 20% increase in sales in 6 months)

5 Steps of Strategic Management Process

1. Establishing the organization's direction 2. Analyzing the situation 3. Developing strategy 4. Implementing strategy 5. Evaluating results

International competencies for sport managers

1. Personal Reflexivity- Sport managers should be reflexive about themselves, their actions, and their worldviews 2. Sensitivity to Cultural Differences- Sport mangers need to be receptive and sensitive to cultural differences 3. Flexible Expertise- A sport manager requires flexible expertise (Operational expertise, Communication expertise, Systems and critical analysis expertise)

Why is the Olympics Special- Symbol

120+ year history (or 2700+) Philosophy of Olympism The Olympic Rings Torch Relay Ceremonies (e.g., opening, closing)

Why is the Olympics Special- Size

200+ nations 11238 athletes (Rio 16) 2790 (Sochi 14) 20,000 Media 45,000 Volunteers Multi Sport (39 in Rio, 15in Pyeongchang)

Why is the Olympics Special- Games

221 events in 23 sports (LA 1984) to 306 events in 39 sports (Rio 2016) 46 evets (Calgary 1988) to 102 events (PyeongChang 2018)

Culture Shock

A sense of confusion and uncertainty sometimes with feelings of anxiety that may affect people exposed to an alien culture or environment without adequate preparation (p. 64)

Localization

Adaptation of nonlocal elements to the local context (e.g., language, rules)

ANOC (Association of National Olympic Committees)

Africa: Association of National Olympic Committees of Africa (ANOCA) America: Pan American Sports Organization (PASO) Asia: Olympic Council of Asia (OCA) Europe: European Olympic Committees (EOC) Oceania: Oceania National Olympic Committees (ONOC)

Three stages mark the organizational socialization process for new employees

Anticipatory socialization (occurs before entry) Encounter or accommodation (newcomer enters the org.) Adaptation or role management (newcomer adapts & settles into the job)

Olympic Issues- Substance Abuse and Doping

Athletes want the edge Cocaine Alcohol Synthetic hormones (steroids) Ben Johnson (1988) Tests positive for anabolic steroids Tour de France (1998) Police raid finds banned substances in bulk Drug Test implemented in 68 WADA-1999

Organizational Culture

Comprises values, beliefs, and assumptions that help guide decision making and describe why an organization is what it is

Finance- External Revenue

Concessions, Parking, Ticket sales, Corporate sponsorship, Media and broadcast rights, Suite and premium seat, Naming rights, Publications & Media, Booster and support, Loans, Merchandise sales

Internationalization

Describes (1) worldwide dissemination of sport and (2) movement of athletes around the world in pursuit of work

International and Sport Law

Each nation has its own legal framework Numerous sport law statues have roots in the Olympic Movement, the foundation of the Olympic ideology

Global Strategies: Global Partnerships

Enhances marketing opportunities, creates value for both, grows revenue streams. Examples: Manchester United and New York Yankees

Major Responsibilities of IFs at the Olympic Games

Establish the technical rules of their own sports, disciplines, and events Establish results and ranking of competitions Select judges, referees, and other technical officials from the host country or from abroad Enforce the rules of the IOC concerning the eligibility of the participants Require technical provisions

Evaluating Results

Evaluation of the activities and performance of the organization Traditional financial measures: Return on sales, Return on equity (ROE) Satisfaction of stakeholders: Customers, Employees, Suppliers, Community Value of the investment of the firm in different areas: Technology, Human Resources

Role of Sport Federations

Federations can utilize national law but also create their own regulations that govern individual sports

North American & Australian Model

Free-market capitalism is limited. Restrictions are imposed on competition. Unregulated sport league would be unsustainable Pro leagues operate as cartels Teams work collectively to improve the attractiveness of the marketable product. Equalization policy redistributes resources. Leagues are closed systems.

International Cricket Council

Full members: 12 countries Associate members: 92 countries No more affiliate members Mission Statement: Providing a world class environment for international cricket, Delivering major events across three formats, Providing targeted support to Members, Promoting the global game.

IOC Session

General meeting of the membership The 131st IOC session in Lima, Peru The host cities for the 2024 Summer Olympics (Paris) and the 2028 Summer Olympics (Los Angeles) were elected during the 131st IOC Session on September 13, 2017. Once a year in Olympic city (odd years) The 132nd IOC session in PyeongChang, South Korea - the 2018 Winter Olympics Amends the Olympic Charter Elects Olympic cities (every 2 years) Elect IOC EB members for 4 year mandates Approves IOC accounts and commission's report

International Federations (IFs)

Govern their sport at a global level Promote a particular sport or sports internationally During the Olympic Games, responsible for the practical organization of the sports events on the program All the technical aspects of a sport are their responsibility: the rules, equipment, venues, judging, etc. International Federations like the (IAAF), for example, also conduct in and out of competition drug testing

Global Strategies: Foreign Direct Investment

High-risk, high-cost EX. Sketchers has retail stores in 120 countries Arizona Diamondbacks support baseball league and field construction in Mexico

Perez's Model of Corporate Governance- Level 3: Management of Governance

How are the controllers controlled? Nominations Commission Athletes Commission Ethic Commission

Perez's Model of Corporate Governance- Level 4: Governance of Governance

How can IOC decisions be appealed? How can IOC positions be harmonized with those of other sports organizations WADA(World Anti-Doping Agencies) CAS(Court of Arbitration for Sport)

Perez's Model of Corporate Governance- Level 5: Meta- Governance

How does the IOC fit in the legal and societal framework? Following 3 laws Swiss law European law International law

Perez's Model of Corporate Governance- Level 2: Management of Management

How is IOC management Controlled? Organizational structure (3 components): The Session: General meeting of IOC members Adopt/modify policy The Executive Board: Management/overall direction of IOC between meetings Specific responsibilities IOC Commissions: President elected from members of the session Advisory role only Role (finance, TV right, Nominations, Ethics, Athletes)

Perez's Model of Corporate Governance- Level 1: Management

How is the IOC run on a daily basis? IOC (executive) President (CEO) IOC Administration

Intercultural management in sport affects multiple layers of the organization

Human Resource (HR): recruitment, training, labor laws Communications: languages, media handling Financial, marketing, & etc...

Olympic Governance Committees

IOC International Olympic Committee IFs International Federations Association of Summer Olympic International Federations (ASOIF) Association of International Olympic Winter Sports Federations (AIOWF) Association of IOC Recognised International Sports Federations (ARISF) NOCs National Olympic Committees OCOG Organizing Committees for the Olympic Games

Global Expansion in MLB

Identified Central America and Japan as areas with greatest potential Used foreign players to drive interest Encouraged broadcasts to local and foreign Latino and Asian markets in native languages Took pro teams to Mexico, Japan, and Puerto Rico Sold licensed products, held clinics abroad Launched World Baseball Classic

IOC Administration

In Lausanne since 1915 Developed by Samaranch 100 employees in 2000, now 632 in 2017) 53 nationalities, 55 % women in 2017 15 departments/directors over 4 city locations Director General(COO) Current COO: Mr. Christophe De Kepper (Belgium) Executive Director of the OG Current ED: Mr. Christophe Dubi (Switzerland) Head of President's Executive Office Spokeswoman (Strategic communication director) Current SCD: Ms. Rebecca Lowell Edwards (USA)

Implementing Strategy

In this phase the manager ensures that the selected strategies are not only consistent with one another but also support the organization's overall mission and goals. Strategies become effective only when they are translated into action Strategies are always related to environment analysis Flat structure (enhances lower costs, centralizes control) vs. Vertical structure (upscale, high quality)

Global Expansion in NFL

Increase the popularity of the sport and raise brand awareness of the sport and league Launched expansion initiatives in Mexico, Canada, and Europe In 2008, 125 broadcasters from 231 countries aired 200,000 hours of programming

Results of Internationalized Sport

Increased opportunities for fan involvement and enjoyment Exposure cultural elements from the hearts and souls of people in local communities to people around the world to cultures from around the world via TV, satellite, computer, computer-mediated tech

Long Term vs Short Term Orientation

Individual's preference to focus and prepare primarily for future events with a longer time frame attached Having a short-term orientation is more presentative of fulfillment of social obligations and protection of one's "face".

Commodifiction

Influence of economic forces on the structure and practice of sport

Intercultural Management

It is concerned with the various ways in which people from diverse backgrounds can work together in an efficient and effective manner

IOC President

Juan Antonio Samaranch(1980-2001) started the trend Jacques Rogge (2001~2013) Thomas Bach (2013~present)

IOC (International Olympic Committee)

June 23, 1894 Founded to govern Olympic organization & policy Headquarters in Lausanne, Switzerland Non-profit organization Independent of any government or nationality Members elected from worldwide sporting community

The Flame

Light at Olympia in Greece, recalling the Ancient Greek roots of the Olympic Games Emphasizes the link between the ancient and modern Games. Announces the Olympic Games and transmits a message of peace and friendship to all those it meets along the way Promotes the culture and natural riches of the regions through which it passes

3 Areas that paved way for Internationalization

Market economies Changing demographics (e.g., increased disposable income and greater leisure time) Large-scale capital investment by public and private sources

Olympic Issues- Financing

Marketing Commission - Broadcast rights (53%) - Licensing and other revenues (2%) - Ticketing (11%) - Sponsorship (34%)

Fédération Internationale de Football Association (FIFA)

Membership 6 Confederations 211 members in 2018 One of the oldest - founded May 21, 1904 Headquarter - Zurich, Switzerland President - Gianni Infantino (9th president, Swiss & Italian) Largest (nongovernmental) international sport governing bodies

The Olympic Games

Most significant sporting competition in the world Scheduled every four years for summer and winter events Olympic gold medals often mean recognition, financial success, nation building, and legitimization of political ideologies. "Citius, Altius, Fortius" motto (Faster, Higher, Stronger) Media extravaganza with 2.5 billion TV viewers Cultural festival International political stage

Why is the Olympics Special- Movement

Movement of promoting the ideals of peace before and during the Olympic Games in 1996 Human Rights in 2008 Support refugees in Afghanistan in 1994 Improve health, develop life skill, and foster peace [Right-to-Play] in 2000

Olympic Issues- Security

Munich 1972 Impact of tragedy Atlanta Games Olympic Park bombing Post 911 Olympic Games Security Closed venues Credentials Metal detectors X-ray screening Hand search $142,857 Security Cost per Athlete in Greece Neared $1B in the 2010 Vancouver Winter Games More than £1B in the 2012 London Summer Games

Politics

National governments set policies that affect sport, especially when governmental interests intersect with sport federations and governing bodies EX. Governments are heavily involved in the development of sport infrastructure Seek to host sporting events to encourage tourism, investment, and development High-profile sporting events are seen as highly desirable because of the real or perceived benefits that they bring with them

Developing Strategy

Need to minimize threats and maximize opportunities Organization selections must reflect its mission, opportunities, threats, own strengths, and weaknesses Corporate-level: Merger and Acquisition, retrenchment Business-level: Differentiation, cost leader, focus Functional-level: Production, accounting and finance, research and development, marketing, public relations, human resources

Analyzing the Situation

Need to monitor changes in the industry, in the environment, and within the organization itself SWOT Analysis (Strengths, Weaknesses, Opportunities, Threats) External vs. Internal Environments: The general environment includes macro environmental factors that deal with the external environment, including sociocultural, political, legal, economic, technological, and geographical factors The manager must look at the external environments of both the home country and prospective targeted nations

Olympic Governance

Opposite of government "Decentralization and Relational Management" Closely associated with the concept of decentralization of power and the need for inter-sectoral management

Sociocultural Factors

Population, lifestyle, and social values of a nation

The Torch Relay

Promotes the culture and natural riches of the regions through which it passes the symbolism of the relay - held in Athens in honor of the gods associated with fire A flame was lit for the first time in the stadium at Amsterdam, in 1928. For its part, the torch relay was not introduced until the 1936 Games in Berlin.

Human Resources Manager

Responsible for managing & overseeing the personnel department of a sport organization and involved tasks - recruitment, training, evaluation, interaction

Strategic Management Process

Set of decisions, activities, and plans of action for organization to survive and compete

Religion

Sport can be a mask or magnifier for religious, class, and race differences, manifesting themselves in fan identity EX. of religion in sport Rituals and practices in the Super Bowl (national anthem, military plane flyover) A player point to the sky, kneel in player, or remove a jersey to reveal a religious message Sacred spaces (locker rooms), shrines (hall of fame), guiding texts (rulebooks), fierce devotion of the faithful (fans), deities (stars)

Environmentalism

Sport events held at stadiums, fields, and other venues

Finance- Internal Operation

Stadiums & player salaries are important cost component Manage revenue & expenses Costs for a stadium

Establishing the organization's direction

Starting point of the strategic planning process Vision statement: A written summary of what business the organization is in or seeks to be in Mission statement: organization's philosophy and values. Include basic beliefs, values, and priorities Focuses on an organization's purpose: Describe who we are Describes what we do

Global Expansion in NBA

Tapping into the foreign player markets Sponsoring clinics in Africa and China Opening a new office in Beijing Exclusive rights to foreign markets to sponsors NBA-licensed products in more than 100 countries Using NBA.com to further its global branding Game broadcasts, preseason games, and global programming

Technologies' Benefits

Technology aids in recruitment, retention, training, and utilization of new employers In sales and marketing, online sales methods and web presence etc. are important strategic elements Even, athletes have also taken advantages of the new media platforms to enhance their personal brand

Olympic Issues- Sponsorships

The Olympic Partner Program (TOP) Four-year deal Funding in exchange for exclusive marketing rights Suppliers Providing services for limited marketing rights

Flame and Torch Relay

The Olympic flame and torch relay are the most well-known elements of the Games

Globalization

The attempt to control and regulate access to global flows on one hand and the attempt to resist these processes and recycle their own cultural products

Masculinity-Femininity

The extent to which achievements that are valued have more masculine or feminine qualities Extent to which typical "male" roles characterized by assertiveness and competitiveness e.g., female- nurturing, modesty, caring

Individualism-Collectivism

The extent to which individual effort and success is valued within a country vs. a broader focus and loyalty to the group Highlights the propensity by which people are integrated into groups Collectivism sees high levels of group integration

Olympic Symbol

The five rings represent the five continents They are interlinked to show the universality of Olympism and how athletes from all over the world come together for the Olympic Games.

Power distance

The level of acceptance regarding the distribution of power in an organization High-organizations where persons of lesser power accept and expect decision making from positions of authority Low-organizations where authorities foster a close working relationship with subordinates and include them in decision making

Nationalism

The most common form of nationalism is promoting the characteristics of the nation-state itself The most popular form of nationalist behavior in many countries is in sport. Highly emotional support to national team

Economics in Sport

The way in which sport organization personnel manage resources in the face of fluctuating consumer demand and consumption patterns coupled with inconsistent access to resources (e.g., revenue, equipment) Economic fluctuations alter the sport landscape and affect the costs and revenues associated with managing teams and events Sport organizations will be affected differently depending on its location when fluctuations in the business cycle occur

OCOGs Tasks (Organizing Committees for the Olympic Games)

To give equal treatment to every sport on the programme and ensure that competitions are held according to the rules of the International Sports Federations (IFs) To choose and, if necessary, create the required installations: competition venues, stadiums and training halls; to arrange for the required equipment To lodge the athletes, their entourage, the officials To organise medical services To solve transportation problems To meet the requirements of the mass media in order to offer the public the best possible information on the Games To organise cultural events that are an essential element of the celebration of the Olympic Games To write the Final Report on the celebration of the Games in the two official languages and distribute it within two years after the end of the Games

The world of sport is at a crossroads

Today's sport leagues around the world are filled with coaches, players, and even team owners from various backgrounds. Challenges because of sport labor migration (various backgrounds) Increased global mobility within professional and amateur sport

Organizational Culture- Level 3: Basic Assumptions

Unconscious, taken-for-granted beliefs Habits of perception Thoughts and feelings (ultimate sources)

Regionalization

Within the framework of internationalization Blocs of countries, market areas within a specific geographical, cultural or economic condition EX. The Union of European Football Associations (UEFA) The UEFA Champions league, The UEFA Euro 2020 Pan American Games South-East Asian Games...

Olympism

a philosophy of life which places sport at the service of humanity. This philosophy is based on the interaction of the qualities of the body, will and mind. Olympism is expressed through actions which link sport to culture and education

Technological Factors

advancement, innovation

Political and Legal Factors

congress, political groups

Customers

demand to see their team win Championship

Investors

desire an adequate return on their investments

Negative Economic Impact

economic downturn, and change of perception

Suppliers

equipment, food, merchandise etc.

Geographic Factors

location, climate, ease of access

Global Strategies: Strategic Alliances

lower degree of risk, cost, and involvement Joint ventures Sponsorship & licensing agreements Franchising Outsourcing

Organizational Culture- Level 2: Values & Beliefs

org. strategies, goals, philosophies, mission/vision statements Company strategies/ goals/ philosophy Espoused justification of existence

Franchises

players, backroom staff, administrator, maintenance workers etc.

Positive Economic Impact

social benefits of community, shared identity, status for the city or country, economic benefits, and political benefits

Economic Factors

supply and demand, the labor profile(size, productivity), availability and cost of capital

Ethnocentrism

the attitude that one's own group, ethnicity, or nationality is superior to others Language difference, business laws, taxation laws, immigration laws, impediments sanctioned by local or regional trade organizations Personal values and ways of doing things may drastically differ complicates matters of integration, socialization, and daily work life(e.g., making business deal with tech.)

Uncertainty Avoidance

the extent to which people are (un)comfortable dealing with unstructured situations propensity or intolerance for uncertainty and ambiguity in society low-there is greater acceptance to having less rules, laws, regulations, and change high-prefer rules, laws, and regulations want to minimize risk taking, and less tolerant

Organizational Culture- Level 1: Artifacts

the most visible manifestations of org. culture Visible signs/ org. structures/ org. processes

Consumer Culture

the term used to describe the capitalist, or market economy, ideology whereby individuals aspire to ever-higher standards of living and material consumption

Employee Socialization

to equip new employees with the proper tools& knowledge of important values