Unit 21 - The business of sport

Question 1

What is a sports business

Answer 1

Sports business are people, activities and organisations involved in producing, facilitating, promoting, or organising an activity, experience or business enterprise focused on sports

Question 2

Name the 3 sectors of business

Answer 2

Private, Public and Voluntary.

Question 3

Name 3 business types of a private sector

Answer 3

EXAMPLES OF BUSINESS TYPES INCLUDE, ie
- Retail, (Sports Direct)
- Professional sports clubs
- Private leisure centres/sorts clubs (e.g. Virgin Active, David Lloyd)
- Personal trainers/fitness instructions
- consultancy agencies
- marketing and sponsorship agencies
- Sports media compaies (e.g. Sky Sports, BT Sport, ESPN)
- Equipment manufactures (e.g. Umbro, Gilbert)
- Sports technology
- Sports betting companies (e.g. USN, MaxiMuscle)
- International governing bodies (e.g. FIFA)
- Sports rehabilitation/therapy

Question 4

Name 3 business types of a Public Sector

Answer 4

BUSINESS TYPES INCLUDE
- public leisure cnetres/sports clubs
public parks/playing fields
schools/college

Question 5

Name 3 types of a Voluntary Sector

Answer 5

TYPES OF BUSINESS INCLUDE
- community teams/groups
charitable causes

Question 6

Name the 4 organisational structures

Answer 6

Local
National
International
Global

Question 7

Name 3 Characteristics of a Local Organisation

Answer 7

Individuals/small teams of staff
Can be entrepreneurial
Can involve shared job roles
Target group is local community/small geographical area
Single sire/low number of premises
Can be private, public or voluntary

Question 8

Name 3 characteristics for a National Organisation

Answer 8

Medium to large teams of people
hierarchial structures
multi-site/locations
could be franchise
target group is nationwide
can be private,public or voluntary

Question 9

Name 3 characteristics of a International Organisation

Answer 9

Large teams of people
Product can be tailored to suit different countries
complex hierarchical structures
typically have a high number of sites/locations but not necessarily in every country they trade in may use intermediaries/deal in export
target group will be international but not worldwide
can be private or voluntary not likely to be public

Question 10

Name 3 characteristics of a Global organisation

Answer 10

Very large teams of people
complex hierarchical structure traded in
global target audience
Could be franchised
More likely to be private, could be voluntary but not likely to be public

Question 11

Name the 3 Organisational Environments

Answer 11

Internal Environment
Micro Environment
Macro Environment

Question 12

Name 3 examples of the Internal Environment

Answer 12

Employees
Equipment/facilities
Finance
Functional responsibilities

Question 13

What is the Micro Environment and what is in it

Answer 13

Comprises all those organisations and individuals who directly or indirectly affect the activities of a company
- Customers
- Competitors
- Intermediaries (e.g. Shareholders)
- Often analysed by using the SWOT Analysis
- Strengths and Weaknesses (Internal)
-Opportunities and Threats (External)

Question 14

What is the Macro Environment and what is in it

Answer 14

Comprises general forces and trends rather than specific organisations(often know as PEST analysis)
Political Environment
Economic Environment
Social and Cultural environment
Technological environment

Question 15

What is PEST analysis

Answer 15

Political Environment
Economic Environment
Social and Cultural Environment
Technological Environment

Question 16

How does a sports business measure success (10 examples name at least 6)

Answer 16

Profitability/Maximising income
Share Price
Customer satisfaction/low number of complaints
Growth/reach/inclusion of product/service
Reputation
Repeat business/Customer loyalty/customer retention
Reputation
Expansion of winning
Legacy
Winning trophies and competitions
Recognisability

Question 17

Name at least 5 contract types (8 in total)

Answer 17

Part Time
Full TIme
Permanent
Temporary
Contracted
Seasonal
Outsourcing
Voluntary

Question 18

Name 3 examples of methods of how an organisation retain staff (8 in total)

Answer 18

Bonus schemes/rewards
Progression
Self-development
Positive working environment
Working hours/conditions
Team Spirit
pension/share schemes
Success of organisation

Question 19

Name 3 examples of how retaining staff may benefit an organisation

Answer 19

Lower/fewer recruitment and training costs
skilled workforce
staff know the customers better
promoting from within

Question 20

Give 3 examples how retaining staff may benefit the customer

Answer 20

Familiar workforce/environment
Recognising individual needs
Rapport Building

Question 21

Give 3 examples of how retaining staff may benefit to the staff member

Answer 21

Promotion Opportunities
job Security
Professional Development
Job Satisfaction

Question 22

Name 3 examples of what the recruitment of staff is dependent on

Answer 22

Sector
Roles and requirements (e.g. legal requirements such as minimum age or licence to practice, personal qualities such s communication skills)
Local needs/demographics
Budget available

Question 23

Give 3 examples how a Company/organisation/business may retain customers

Answer 23

Create a strong onboarding experience
Provide personalized customer experiences
Build trust with your customers
implement a customer feedback loop
maintain a customer communication calendar
send a company newsletter
start a customer education program
offer unique services

Question 24

Name 8 examples of methods for Customer attraction and retention

Answer 24

Quality of a product/output
Quality of customer service
identify of customer service
identify and understand target group
reputation/positive word of mouth
success of organisation
offers/discounts
marketing and promotion
benchmarking/best practice
competitiveness
loyalty/reward schemes
relationship between quality of product/service, customer satisfaction and customer/retention/loyalty

Question 25

What are the benefits of customer retention/loyalty

Answer 25

Cost of attraction vs cost of retention
impact on reputation
predictability of income/financial security
loyal customers are less likely to switch to competitors, more likely to buy more, less price sensitive
it makes the employees job easier if they know what customers want
regular customers are less expensive to service due to familiarity with product/service

Question 26

Give 3 examples why sports businesses use volunteers

Answer 26

Cost (cheaper)
Inclusion
meeting objectives
funding criteria
advocacy
nature of organisations (e.g. one off events)
avoids legal/contract issues
positive reflection of organisation
corporate social responsibility
supporting employability and development
supporting local communities

Question 27

What are the 3 types of volunteers in sport

Answer 27

Long-term
Short-term
One-off

Question 28

What roles are undertaken by Volunteers (name 3 examples)

Answer 28

event support staff
Sports coaches/leaders
club/team committees
officials
administrative positions

Question 29

What does CSR stand for

Answer 29

Corporate Social Responsibility (CSR)

Question 30

Define CSR

Answer 30

An approach where the business considers the impacts and which its activity has he society and the environment and contributes to sustainable development by delivering economic, social and environmental benefits for all stakeholders

Question 31

What does CSR Involve
CSR involves… ______ (name 3 examples out of 5)

Answer 31

Community Projects
adhering to laws and regulations
environmental and sustainability awareness
positive reputation of the organisation

Question 32

Give 3 examples of the improtance of CSR to sports organisations

Answer 32

• A way to meet social and community obligations
• Improves organisation’s reputation
• Develop positive corporate image
• Can be used as a marketing tool/strategy
• Can increase commercial success
• Reaching and engaging with more people from across the entire social and demographic spectrum
• It is a regulatory requirement for many sports organisations
• Can enable access to funding
• It is the correct thing to do ethically
• Consumers are increasingly focussed on CSR issues
• Sport is an effective CSR medium/sport reflects the values of CSR, e.g. fair play, caring for community, inclusivity
• CSR more part of the culture of sports organisations now than previously

Question 33

Give 3 examples of susatinability

Answer 33

Environmentally friendly
Ecologically friendly
Economically viable
Managing and reporting sustainability
Sport organisations
creating lasting legacy

Question 34

Give 3 examples of Corruption in sport

Answer 34

Cheating (e.g. usage of illegal equipment, foul play)
Match fixing (e.g. throwing a game, betting patterns, spot fixing, insider dealings)
Doping (e.g. use of banned substances/performance enhancing drugs, blood doping, sports not signed up to WADA code)
Breaking Financial regulations (e.g. financial fair play in football, salary caps, tax avoidance/evasion)
Bribes and kickbacks (e.g. vote rigging in relation to hosting major events)
Money laundering through sport (e.g. investment into sports clubs from unregulated sources)

Question 35

Give 3 examples of corruption in sports business

Answer 35

Acceptance of unethical practice in sport (e.g. product sponsored by an athlete who has failed a drug test)
breaking financial regulations
Bribe and kickbacks
money laundering through sport

Question 36

Give 3 examples of sources of funding

Answer 36

Sales/sponsorship deals
Loans/bonds
grants
memberships
debentures (e.g. long-term season ticket/corporate facilities/private boxes)
Philanthropic donations
selling shares
fundraising activities/events

Question 37

Who grants funding in a business give 3 examples

Answer 37

Influence of Government and DCMS (Department of Culture Media and Sport)
Strategic role of QUANGOs ie. UK sport
Role of NGBs
Local governments
funding for inclusion/community/disadvantaged groups
Funding from sports businesses (e.g. sponsorship of events)

Question 38

What is QUANGOs

Answer 38

a semi-public administrative body outside the civil service but receiving financial support from the government, which makes senior appointments to it.

Question 39

Who Requests funding grants give 3 examples

Answer 39

Sports Clubs
Community based organisations
Local schools/colleges
Individual athletes/performers

Question 40

What is funding is used for give 3 examples

Answer 40

New/improved facilities
Kit/equipment
Group works/grounskeeping
running events (e.g. Sainsbury’s School Games, Invictus Games, Corporate Games, Asda Kwik Cricket)
Coaching/training
Initiatives for increasing participation (e.g. The Girl Can, Living for Sport, Kickz, Sportivate)

Question 41

Who obtains funding give 3 examples

Answer 41

Application methods (e.g. application forms, bids)
Meeting funding body criteria, i.e
providing need/demand for service/product
Having clear goals/impact
proven/demonstrating ability to deliver outcome
eligibility (e.g. recognised sport, size of organisation, location)

Question 42

What is Commercialisation

Answer 42

the process of managing or running something principally for financial gain.

Question 43

How has commercialisation developed, in spor and physical activity

Answer 43

Move from amaeture to professional in different sports
commercialisation defined as “to be managed or exploited in order to make a profit”
transformation of sport from leisre activity to paif spectator/performaer activity
introduction of sponsorship
introduction of large media contracts to have exclusive rights to show sports
importance of customer/fan engagement
impact of mass media
influence on new social media and digital marketing in sport

Question 44

Give 5 examples of the importance of commercialisation in sport

Answer 44

Increase in revenue
improvement to stadia
new forms of sponsorship
improvement to training facilities/training of coaches
recruitment and development of employees/players
increase exposure to a national/international/global audience
increased fan base/reach
introduction of the global sport superstar
increased product range

Question 45

Give 3 examples of the impacts of commecialisation

Answer 45

Changes in who controls sport
over-reliance on funds/monies from media deals
influence of new technology
changing rules in sport to make more sustainable for television coverage
more pressure on players i.e. extended seasons, player injuries, payer burn out, early retirement
introduction of Global sport brands
media intrusion into sports stars’ lives
impact of social media - positive/negative
rising cost of spectatorship (both live and through media)
disconnect between fans and performers

Question 46

Name 3 characteristics of a Private sector

Answer 46

PROFIT DRIVEN
FUNDED THROUGH PRIVATE INVESTMENT, MEMBERSHIP, FEES, SALES AND SPONSORSHIP
TARGET GROUPS INCLUDE INDIVIDUALS WITH DISPOSABLE INCOME PROFESSIONAL ATHLETES SCHOOLS AND TEAMS

Question 47

Name 3 characteristics of a Public Sector

Answer 47

NO FOR PROFIT ORGANISATIONS
AIM TO INCREASE PARTICIPATION/INCLUSION
FUNDED BY LOCAL OR NATIONAL GOVERNMENT, MEMBERSHIP, FEES, LOTTERY FUNDING, PRIVATE DONATIONS
TARGET GROUPS INCLUDE PEOPLE ON LOW INCOME, LOCAL COMMUNITIES AND SPECIFIC, (e.g older adults, children)

Question 48

Name 3 characteristics of a Voluntary sector

Answer 48

NOT FOR PROFIT ORGANISATIONS
EXIST TO FULFIL A SPECIFIC SOCIAL PURPOSE, (e.g. aim to increase participation/inclusio)
NORMALLY SET UP AS A CHARITABLE STATUS
SELF-FULFILMENT/GIVING SOMETHING BACK TO THE COMMUNITY
FUNDED BY MEMBERSHIP FEES, DONATIONS, SPONSORSHIPS, LOANS AND PRIVATE INVESTMENT
TARGET GROUPS INCLUDE PEOPLE ON LOW INCOME, LOCAL COMMUNITIES AND SPECIFIC GROUP (e.e older adults children)