LO1 Flashcards
What is a sports business?
They are people, activities or organisations involved in producing, promoting, facilitating or organising any enterprise, activity or experience focused on sports
What are the 3 sectors?
- Public
- Private
- Voluntary
Public sector characteristics
- Main goal isn’t profit
- Aims to increase participation and inclusion
- Funded by the local/national government, membership fees or private donations
- Target groups = low income, local communities, children, elderly
Public sector examples
- Schools/colleges
- Public parks and playing fields
- Public leisure centres and sports clubs e.g. places leisure
Private sector characteristics
- Profit driven
- Funded by private investment, membership fees, sales, sponsorships
- Target groups = People with disposable income
Private sector examples
- Football teams
- Betting
- Private gyms e.g. David Lloyd
- Shops e.g. Nike, Adidas
- Personal trainers
- Sports media e.g. Sky Sports
- Sports nutrition
Voluntary sector characteristics
- Not-for-profit
- Social purposes e.g. increase participation
- Likely to have charitable status
- Self fulfillment or give to community
- Funded by membership fees, donations, sponsorships, loans, private investment
- Target group = Low incomes
Voluntary sector examples
- Charities e.g. sports aid who help athletes financially to be able to train and compete
- Community teams/groups
What are the organisational structures?
- Local
- National
- International
- Global
Characteristics of a local organisation
- Run by a small team or individual
- Can be entrepreneurial
- Can have shared job roles
- Single site or low number of premises
- Target = local community
Examples of local organisations
- Alexandra sports in Portswood
National organisation characteristics
- Medium to large teams of people
- Hierarchical structures
- Multi site locations
- Could be a franchise
- Could be public, private or voluntary
- Target nationwide
National organisation examples
- Places leisure
- Sports direct
International organisation characteristics
- Large team of people
- Complex hierarchical structure
- High number of sites
- Products tailored e.g. landlocked country won’t have any sailing items
- Can be public, private or voluntary
- Target group = international
International organisation examples
- Decathlon
- IGB’s
- Soccer aid
- Parkrun
Global organisations characteristics
- Very large team of people
- Complex hierarchical structure
- High number of sites in every country traded in
- Could be franchised
- Most likely to be private, maybe voluntary but not public
- Target group = global
Global organisation examples
- Nike
- Adidas
What are the 3 components of the business environment model?
Internal (full control), micro (some control), macro (no control)
What does internal environment include?
- Employees (who you employ)
- Equipment (amount, expense, condition)
- Finance (funding, investment opportunities, sources of income)
- Functional responsibilities (how functions happen and how employees meet their objectives)
What does micro environment include?
- Customers (has to find customers)
- Competitors (no company enjoys monopoly)
- Suppliers (they will provide resources need by the company)
- Stakeholders and shareholders (expect a return on investment)
What does the macro environment mean?
General forces and trends (PEST analysis)
What does a macro environment include?
- Political factors (laws, government agencies and pressure groups e.g. environmental protection laws, pricing)
- Economic environment (Factors that affect customer purchasing power and spending patterns. Important criteria: GDP, sales tax/VAT, unemployment, inflation, disposable personal income)
- Social and cultural environment (affect basic values, preferences and behaviour)
- Technological environment (factors that create new technologies meaning new product and marketing opportunities e.g. smartphones, bluetooth etc)
PEST case study Under Armour: Political
- Wars in countries near production (discourage global expansion)
PEST case study Under Armour: Economical
- Rising labour (Asia) = increase product price
PEST case study Under Armour: Social
- Establish reputation for quality product and reasonable price
PEST case study Under Armour: Technological
- Keeping up with technology e.g.my fitness pal
- More active on social media
SWOT case study Under Armour: Strengths
- Digital apps
SWOT case study Under Armour: Weaknesses
- High investment expenditure
SWOT case study Under Armour: Opportunities
- Introduce new products
SWOT case study Under Armour: Threats
- Competition e.g. Nike, Adidas
