SHMD 129 SPORT MANAGEMENT

1. SHMD 129SPORT MANAGEMENT

2. 13 April

3. External environment Includes factors outside its boundaries that affect its performance. • The 9 factors in external environment are: • Customers • Competition • Suppliers • Workforce • Shareholders • Society • Technology • Economy • Governments

4. 1. customers • Customers purchase products, without customers, organizations cannot exist. • Teams need loyal fans who attend games. • Dissatisfied customers often don’t return. • Sport managers must measure the service quality they provide to attract & retain customers & fans. • Customer value changes, if sport products & teams don’t change companies lose customers & fans to competition.

5. 2. Competition • Organisations must vie with their competitors for customers. • When a competitor lowers prices, firms often have to match these prices to keep customers. • Members remain loyal only as long as they perceive they receive good value for money.

6. 3. Suppliers • Resources of organizations often come from outside the firm. • Organizations buy land, buildings, machines, equipment, natural resources, component parts & merchandise from suppliers.

7. 4. WOrkforce • An organization’s employees have a direct impact on its performance. • The better the employee or player, the higher the pay .

8. 5. Shareholders • Shareholders are the owners of coporations because they have purchased a share (stock) in the corporation. • They can have significant influence on management.

9. 6. Society • Society also exerts pressure on organizations. • Individuals & groups expect change and often get it. • People who live near factories don’ want them to pollute the environment & forced tougher pollution requirements.

10. 7. Technology • The rate of technological change will continue to increase. • The computer has changed the way sport organizations conduct & transact business, and computers are a major part of every firm’s systems process.

11. 8. Economy • Organizations have no control over economic growth, inflation, interest rates, or international exchange rates, yet these factors have direct impact on performance. • Sports are an important part of the economy of many countries, & economic development has provided larger sections of the public with access to sport facilities.

12. 9. Governments • Governments set laws and regulations that businesses must obey.