©2003 South-Western Thomson Learning

Chapter 6

Strategic Planning in Sports

Sport Management: Responsibility for PerformanceDaniel D. Covell, Peter W. Hess, Julie Siciliano, Sharianne Walker

©2003 South-Western Thomson Learning

Strategic Planning

• Strategic planning is the process of monitoring and analyzing key changes in the environment and developing strategies to increase the organization’s effectiveness in response to changes.

©2003 South-Western Thomson Learning

Strategic Planning

• A Change in Approach to Strategic Planning– Top Down to Organization-wide Involvement

• Importance of Strategic Planning in Sport Organizations

©2003 South-Western Thomson Learning

Professional League Sports

• Size and Scope

• Regulation

• Financial Implications

• Issues

©2003 South-Western Thomson Learning

The Strategic Planning ProcessStep 1

• Establishing the Organization’s Direction– The mission statement– Specific Goals

©2003 South-Western Thomson Learning

The Strategic Planning ProcessStep 2

• Analyzing the Situation: Comparing the Organization to Its Environment– The Two Environments (General and Task)– The Organization’s Competencies – SWOT Analysis (Strengths, Weaknesses,

Opportunities and Threats)

©2003 South-Western Thomson Learning

The Strategic Planning ProcessStep 3

• Developing Strategy– Developing Strategic Alternatives

• Corporate-level strategy– Merger and acquisition/Retrenchment

• Business-level strategy– Differentiation/Cost Leader/Focus

• Functional-level strategy– Key Functional Areas, e.g., marketing, finance, operations

©2003 South-Western Thomson Learning

The Strategic Planning ProcessSteps 4 and 5

• Implementing Strategy and Strategic Control– Implementing Strategy– Strategic Control

• The Strategy Scorecard– Financial

– Customers

– Operations

– Human Resources