{"id":256,"date":"2008-03-14T13:55:29","date_gmt":"2008-03-14T13:55:29","guid":{"rendered":""},"modified":"2016-10-19T09:41:41","modified_gmt":"2016-10-19T14:41:41","slug":"using-the-business-s-word-strategy-for-sports","status":"publish","type":"post","link":"https:\/\/thesportjournal.org\/article\/using-the-business-s-word-strategy-for-sports\/","title":{"rendered":"Using the Business S-Word — STRATEGY– for Sports"},"content":{"rendered":"
Submitted by: Jim Grant, Donelda S. McKechnie & Ravi Chinta<\/div>\n

Abstract<\/strong><\/p>\n

Mention the s-word — strategy<\/em> — and thoughts go immediately to business issues and the boardroom. Strategy is easily used in the business context but it is just as easily ignored, forgotten, or possibly not even considered in the sports environment. If the s-word — strategy<\/em>— is mentioned in sports, typically it is in reference to upper management or the owners. Then, the objective is dollars and cents — maximizing gate receipts, holding costs in line, and returning profit on investment. Yet, strategy<\/em> can be applied on the field\/on-court\/on-ice; the tactics of strategy are just as relevant in the sports arena as in the business arena.<\/p>\n

<\/p>\n

When business managers talk strategy<\/em>, the ultimate goal is being unique from the competition. Winning in the marketplace is the objective — whether it is winning marketshare or winning customers. For sports managers, winning is also the goal — whether it is being number one or improving on past performances.<\/p>\n

The lessons learned from business strategy<\/em> can be applied to tactics on the sports field. However, organization writers and theorists have largely ignored the parallel (Peatling, 2005). Making the link, some may say, is not realistic, as the outcome would be that \u201coil and water mix\u201d — sports on the field\/court\/ice are not the same as business in the workplace. On the other hand, strategy<\/em> may be the element that a coach or manager is missing from sports play. If strategy<\/em> is used for winning in the business arena, then consider that the same principles have a place when looking for the competitive edge on the sports field\/court\/ice. This paper reviews basic strategy<\/em> tactics and makes suggestions about applying the fundamentals to the competitive sports team.<\/p>\n

Strategy<\/em> in the Game Plan<\/strong><\/p>\n

Effective strategy<\/em> in business is all about being different and anticipating future events in order to react and respond proactively. In sports, also, strategy<\/em> is valuable for achieving the competitive edge that comes from doing things differently. Strategic<\/em> alternatives aim to stretch thinking and to widen the range of options considered. The future can be described in scenario possibilities, which will have different consequences or uncertainties for different competitors. Regardless of business or sports, each team will respond in ways that reflect their goals, assumptions, capabilities, and competencies. Competitive strategy<\/em> is used to reduce the uncertainty that following one course of action will worsen the team\u2019s position vis-\u00e0-vis another plan.<\/p>\n

When setting the game plan, it is important for businesses and sports alike to know where competitors fall on the continuum of good to bad. \u2018Good\u2019 competitors understand and play by the rules of competition. \u2018Bad\u2019 competitors may seem to make their own rules, to benefit their game, regardless of others. Some \u2018bad\u2019 competitors will never become \u2018good\u2019 competitors; it will require battles just to move them along the continuum to make them act with a sense of fair play.<\/p>\n

When a \u2018bad\u2019 competitor appears to be playing outside the rules of the game, it requires continual work to manage a team\u2019s expectations and assumptions. For example, when a team has a player known for violating the rules by getting too excited or by losing control of emotions, then future strategy<\/em> must factor in the likelihood of repeated infringements and the potential to affect the game outcome.<\/p>\n

Strategy<\/em> in the Competitive Arena<\/strong><\/p>\n

Competition necessitates performance-related activities — supporting creativity and innovation, promoting a cohesive culture, implementing measurable actions targeted at success. Competition creates the need for strategy. Competition requires strategy<\/em>. Competitive strategy<\/em> is the search for a favorable position; it aims to establish a profitable, sustainable advantage against others in the game arena.<\/p>\n

Chart 1: five sports pressures requiring competitive strategy<\/em><\/p>\n

\"Chart<\/p>\n
\n

On the sports field\/court\/ice, five forces are also at work that affect the game or season outcome (see Chart 1). For example, at any point in time, the sports manager is concerned about league rivals, key personnel in upper management who pressure for performances that attract spectators, key players that leave the team, the threat of players being sidelined and substitutes with unknown track record taking up positions, and the threat of potential entrants who are the talented young stars eager to take their places with teams willing to risk signing. The unpredictability of sport requires contingency planning or strategy<\/em> when dealing with competitive pressures (Shank, 2005).<\/p>\n

Analysis Leading to Strategy<\/em><\/strong><\/p>\n

In business, the SWOT analysis is central to developing competitive strategy<\/em>. SWOT stands for Strengths<\/em>, Weaknesses<\/em>, Opportunities<\/em>, and Threats<\/em>. The SWOT template is easily adapted for developing competitive strategy<\/em> in sports. Laid out in grid format (see Chart 2), SWOT positions strength and weakness together for the internal view of opportunities and threats related to external issues. In this format, resources and capabilities are matched to the competitive environment. Action choices and alternatives develop from the interrelationships identified within the grid. The result is that strategic<\/em> possibilities become clearer.<\/p>\n

Chart 2: the SWOT grid<\/p>\n

\"Chart<\/div>\n

Maximizing SWOT for Strategy<\/em><\/strong><\/p>\n

The \u2018how-to\u2019 for maximizing SWOT has four fundamentals (Dwight and Tanner, 2006):<\/p>\n\n\n\n\n\n\n
\u221a<\/th>\nConsider the external and internal concerns with honesty. Face the negative.<\/td>\n<\/tr>\n
\u221a<\/th>\nTake a broad approach so as not to ignore relevant issues. Go deep and wide.<\/td>\n<\/tr>\n
\u221a<\/th>\nExamine the past and consider what the future may bring. Move beyond the immediate.<\/td>\n<\/tr>\n
\u221a<\/th>\nSeek the opinions and the perceptions of others. \u2018Two [or more] heads are better than one.\u2019<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Once the grid is completed, strategy alternatives can be identified, considered, assessed, and evaluated. Remembering that strategy is a goal-oriented action that stems from the fit or match between internal and external environments, four approaches become evident:<\/p>\n\n\n\n\n\n\n
S-O Strategy:<\/th>\n<\/td>\nleverage internal strengths \u2013 exploit external opportunities<\/td>\n<\/tr>\n
S-T Strategy:<\/th>\n<\/td>\nleverage internal strengths \u2013 avert external threats<\/td>\n<\/tr>\n
W-O Strategy:<\/th>\n<\/td>\novercome internal weaknesses \u2013 exploit external opportunities<\/td>\n<\/tr>\n
W-T Strategy:<\/th>\n<\/td>\novercome internal weaknesses \u2013 avert external threats<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Developing Strategy<\/em> from SWOT<\/strong><\/p>\n

The SWOT matrix for a fictitious university basketball team is shown in Table 1. Assuming that the coach followed the four fundamentals — honesty, broad approach, moving beyond the immediate, and questioning others — the grid reflects the team\u2019s strengths, weaknesses, opportunities, and threats. The coach wants strategy alternatives that will help the team gain an advantage, on court and off, in the competitive environment.<\/p>\n

The SWOT grid highlights the team\u2019s resources and capabilities alongside the external issues that can be exploited or must be averted. Numerous combinations can be put together but the starting point is identifying the internal strengths and weaknesses and then systematically covering the opportunities and threats. Reference to the competitive pressures identified in the five forces model complete the application — business to sports (see Table 2).<\/p>\n

Table 1: SWOT matrix for a university basketball team<\/p>\n

\"Table<\/p>\n

Table 2: developing strategy from SWOT<\/em><\/p>\n\n\n\n\n\n\n\n
Competitive Pressure<\/th>\nSWOT<\/th>\nStrategy<\/em><\/th>\n<\/tr>\n
key personnel in upper management pressure teams to perform to attract spectators<\/td>\nS-O<\/th>\nvideo crew record plays to sell game clips to a local TV channel, which promotes the team and the games<\/td>\n<\/tr>\n
key players leave the team<\/td>\nS-T<\/th>\na program whereby key players will mentor new players, which reinforces the team culture and spirit to offset the loss of key players when they graduate<\/td>\n<\/tr>\n
league rivals have coaching talent<\/td>\nW-O<\/th>\nno assistant coach with depth of experience on staff but funding is being increased, which presents a recruitment opportunity<\/td>\n<\/tr>\n
threat from potential entrants who are the talented young stars eager to take their place with teams willing to risk their signing<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

The strategy<\/em> for using the business s-word in sport<\/strong><\/p>\n

Taking the strategy<\/em> principles from business and using them in the sports environment is a logical application. The frameworks used in one are equally relevant to the other. It is the critical thinking behind any strategy<\/em> development that contributes to effectiveness. The business manager who can assess a competitive situation and maximize the team competencies to best advantage will understand the importance of strategy<\/em>. The sports manager who can develop strategy<\/em> from in-depth knowledge about player capabilities and maximize the team position in the competitive environment will know the value of the business s-word. In sum, basic strategy<\/em> tactics are equally relevant to business and sports.<\/p>\n

References<\/strong><\/p>\n

Bradford, R.W. and Duncan, J.P. (2000) Simplified strategic planning: A no-nonsense guide for busy people who want results fast! Chandler House Press, Worcester, MA, USA.<\/p>\n

Dwyer, R.F. and Tanner, J.F. (2006) Business marketing, connecting strategy, relationships and learning. International Edition, McGraw-Hill\/Irwin, Singapore.<\/p>\n

Peatling, G.K. (2005) Rethinking the history of criticism of organized sport. The Social History Society, 2(3), p 353-371.<\/p>\n

Porter, M. (1985) Competitive advantage. Free Press, New York, USA.<\/p>\n

Shank, M.D. (2005) Sports marketing, a strategic perspective. International Edition. Pearson Education, New Jersey, USA.<\/p>\n","protected":false},"excerpt":{"rendered":"

Submitted by: Jim Grant, Donelda S. McKechnie & Ravi Chinta<\/div>\n

Abstract<\/strong><\/p>\n

Mention the s-word — strategy<\/em> — and thoughts go immediately to business issues and the boardroom. Strategy is easily used in the business context but it is just as easily ignored, forgotten, or possibly not even considered in the sports environment. If the s-word — strategy<\/em>— is mentioned in sports, typically it is in reference to upper management or the owners. Then, the objective is dollars and cents — maximizing gate receipts, holding costs in line, and returning profit on investment. Yet, strategy<\/em> can be applied on the field\/on-court\/on-ice; the tactics of strategy are just as relevant in the sports arena as in the business arena.<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true,"jetpack_social_options":[]},"categories":[290,291,296],"tags":[27,76,77,8],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p4btio-48","jetpack-related-posts":[{"id":263,"url":"https:\/\/thesportjournal.org\/article\/book-review-2006-sports-market-place-directory\/","url_meta":{"origin":256,"position":0},"title":"Book Review: 2006 Sports Market Place Directory","date":"March 14, 2008","format":false,"excerpt":"Submitted by: Glaucio Scremin The sports industry is a multifaceted, multibillion dollar industry. 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