Unit 21 - The business of sport Flashcards
What is a sports business
Sports business are people, activities and organisations involved in producing, facilitating, promoting, or organising an activity, experience or business enterprise focused on sports
Name the 3 sectors of business
Private, Public and Voluntary.
Name 3 business types of a private sector
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
Name 3 business types of a Public Sector
BUSINESS TYPES INCLUDE
- public leisure cnetres/sports clubs
public parks/playing fields
schools/college
Name 3 types of a Voluntary Sector
TYPES OF BUSINESS INCLUDE
- community teams/groups
charitable causes
Name the 4 organisational structures
Local
National
International
Global
Name 3 Characteristics of a Local Organisation
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
Name 3 characteristics for a National Organisation
Medium to large teams of people
hierarchial structures
multi-site/locations
could be franchise
target group is nationwide
can be private,public or voluntary
Name 3 characteristics of a International Organisation
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
Name 3 characteristics of a Global organisation
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
Name the 3 Organisational Environments
Internal Environment
Micro Environment
Macro Environment
Name 3 examples of the Internal Environment
Employees
Equipment/facilities
Finance
Functional responsibilities
What is the Micro Environment and what is in it
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)
What is the Macro Environment and what is in it
Comprises general forces and trends rather than specific organisations(often know as PEST analysis)
Political Environment
Economic Environment
Social and Cultural environment
Technological environment
What is PEST analysis
Political Environment
Economic Environment
Social and Cultural Environment
Technological Environment
How does a sports business measure success (10 examples name at least 6)
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
Name at least 5 contract types (8 in total)
Part Time
Full TIme
Permanent
Temporary
Contracted
Seasonal
Outsourcing
Voluntary
Name 3 examples of methods of how an organisation retain staff (8 in total)
Bonus schemes/rewards
Progression
Self-development
Positive working environment
Working hours/conditions
Team Spirit
pension/share schemes
Success of organisation
Name 3 examples of how retaining staff may benefit an organisation
Lower/fewer recruitment and training costs
skilled workforce
staff know the customers better
promoting from within
Give 3 examples how retaining staff may benefit the customer
Familiar workforce/environment
Recognising individual needs
Rapport Building
Give 3 examples of how retaining staff may benefit to the staff member
Promotion Opportunities
job Security
Professional Development
Job Satisfaction
Name 3 examples of what the recruitment of staff is dependent on
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
Give 3 examples how a Company/organisation/business may retain customers
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
Name 8 examples of methods for Customer attraction and retention
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
What are the benefits of customer retention/loyalty
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
Give 3 examples why sports businesses use volunteers
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
What are the 3 types of volunteers in sport
Long-term
Short-term
One-off
What roles are undertaken by Volunteers (name 3 examples)
event support staff
Sports coaches/leaders
club/team committees
officials
administrative positions
What does CSR stand for
Corporate Social Responsibility (CSR)
Define CSR
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
What does CSR Involve
CSR involves… ______ (name 3 examples out of 5)
Community Projects
adhering to laws and regulations
environmental and sustainability awareness
positive reputation of the organisation
Give 3 examples of the improtance of CSR to sports organisations
- 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
Give 3 examples of susatinability
Environmentally friendly
Ecologically friendly
Economically viable
Managing and reporting sustainability
Sport organisations
creating lasting legacy
Give 3 examples of Corruption in sport
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)
Give 3 examples of corruption in sports business
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
Give 3 examples of sources of funding
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
Who grants funding in a business give 3 examples
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)
What is QUANGOs
a semi-public administrative body outside the civil service but receiving financial support from the government, which makes senior appointments to it.
Who Requests funding grants give 3 examples
Sports Clubs
Community based organisations
Local schools/colleges
Individual athletes/performers
What is funding is used for give 3 examples
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)
Who obtains funding give 3 examples
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)
What is Commercialisation
the process of managing or running something principally for financial gain.
How has commercialisation developed, in spor and physical activity
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
Give 5 examples of the importance of commercialisation in sport
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
Give 3 examples of the impacts of commecialisation
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
Name 3 characteristics of a Private sector
PROFIT DRIVEN
FUNDED THROUGH PRIVATE INVESTMENT, MEMBERSHIP, FEES, SALES AND SPONSORSHIP
TARGET GROUPS INCLUDE INDIVIDUALS WITH DISPOSABLE INCOME PROFESSIONAL ATHLETES SCHOOLS AND TEAMS
Name 3 characteristics of a Public Sector
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)
Name 3 characteristics of a Voluntary sector
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)
