Sports and Entertainment Marketing © Thomson/South-Western ChapterChapter Creating, Owning, and Operating a Business 14.1 Entrepreneurship and Business Ownership 14.2 Managing Human Resources 14.3 Safety and Security 14

Sports and Entertainment Marketing © Thomson/South-Western Chapter 14 Slide 2 Winning Strategies Aaron Lee Jakub is a professional angler. More people fish than play tennis and golf combined. The number of fishing competitions is growing rapidly. Aaron is trying to find sponsors that will support both his passion for fishing and his love of working with children. Reeling in a Professional Career

Sports and Entertainment Marketing © Thomson/South-Western Chapter 14 Slide 3 Lesson 14.1 Entrepreneurship and Business Ownership Goals Define entrepreneur and describe characteristics of successful entrepreneurs. List and describe the key elements of a business plan.

Sports and Entertainment Marketing © Thomson/South-Western Chapter 14 Slide 4 Terms entrepreneurs business plan sole proprietorship partnership corporation

Sports and Entertainment Marketing © Thomson/South-Western Chapter 14 Slide 5 THE IMPORTANCE OF ENTREPRENEURS entrepreneurs individuals who take the risk of starting, owning, and operating a business

Sports and Entertainment Marketing © Thomson/South-Western Chapter 14 Slide 6 Impact of Entrepreneurs In the U.S., there are more than 5.8 million small businesses that contribute billions of dollars to the economy annually. Nike was begun as a small business.

Sports and Entertainment Marketing © Thomson/South-Western Chapter 14 Slide 7 What It Takes to Be an Entrepreneur Business goals must be set. financial nonfinancial Strong money management skills are necessary. Cash reserves sufficient to carry the entrepreneur through the first lean years are necessary.

Sports and Entertainment Marketing © Thomson/South-Western Chapter 14 Slide 8 written oral interpersonal “You only get one chance to make a positive first impression.” “Thank you!” Entrepreneurs need effective communication skills.

Sports and Entertainment Marketing © Thomson/South-Western Chapter 14 Slide 9 List five characteristics and skills required to be a successful entrepreneur.

Sports and Entertainment Marketing © Thomson/South-Western Chapter 14 Slide 10 THE BUSINESS PLAN business plan a formal, written document that provides the details for a proposed new business stakeholders investors lenders suppliers

Sports and Entertainment Marketing © Thomson/South-Western Chapter 14 Slide 11 Key Elements of the Business Plan executive summary a brief description of the business idea business description history and background of the business idea short- and long-term goals products and services that will be offered

Sports and Entertainment Marketing © Thomson/South-Western Chapter 14 Slide 12 market research strategies marketing pricing advertising promotions business structure ownership structure marketing plan

Sports and Entertainment Marketing © Thomson/South-Western Chapter 14 Slide 13 owned and operated by one person partnership two or more individuals sign an agreement to own and operate a business together corporation business ownership represented by shares of stock sole proprietorship

Sports and Entertainment Marketing © Thomson/South-Western Chapter 14 Slide 14 owners of a corporation operations management the roles of key managers and staff members financial forecast current and projected financial statements schedule deadlines for specific milestones stockholders

Sports and Entertainment Marketing © Thomson/South-Western Chapter 14 Slide 15 List seven key elements of a good business plan.

Sports and Entertainment Marketing © Thomson/South-Western Chapter 14 Slide 16 Lesson 14.2 Managing Human Resources Goals Explain the need for human resources. List and discuss the four functions of human resource departments.

Sports and Entertainment Marketing © Thomson/South-Western Chapter 14 Slide 17 Terms human resources job analysis probationary period salary fringe benefits cafeteria plan

Sports and Entertainment Marketing © Thomson/South-Western Chapter 14 Slide 18 THE IMPORTANCE OF HUMAN RESOURCE MANAGEMENT human resources the employees who work for an organization

Sports and Entertainment Marketing © Thomson/South-Western Chapter 14 Slide 19 Attracting and Keeping the Best The human resource department needs to match the right person to the right job. The human resource department identifies personnel needs attracts and maintains an adequate supply of employees matches abilities and interests with specific jobs

Sports and Entertainment Marketing © Thomson/South-Western Chapter 14 Slide 20 develops compensation plans protects employee well being maintains a satisfying work environment provides training and development

Sports and Entertainment Marketing © Thomson/South-Western Chapter 14 Slide 21 Why is the human resource department so important for an organization?

Sports and Entertainment Marketing © Thomson/South-Western Chapter 14 Slide 22 FOUR FUNCTIONS OF HUMAN RESOURCE DEPARTMENTS Planning and Staffing The planning process involves examining the company’s current and future personnel needs. job analysis the study of a specific job to identify the duties and skill requirements of the job

Sports and Entertainment Marketing © Thomson/South-Western Chapter 14 Slide 23 individuals with a long-term commitment to continue working for the business as long as the business remains profitable part-time workers employees in permanent on-going jobs who work less than 30 hours per week permanent employees

Sports and Entertainment Marketing © Thomson/South-Western Chapter 14 Slide 24 workers hired for a short time to complete a specific task outsourcing or subcontracting specific tasks are completed by individuals who are not employees of the company temporary employees

Sports and Entertainment Marketing © Thomson/South-Western Chapter 14 Slide 25 a document that “sells” a job candidate’s qualifications application letter accompanies a resume must capture attention of employer resume

Sports and Entertainment Marketing © Thomson/South-Western Chapter 14 Slide 26 Performance Management probationary period a test period of a few months to determine if the new employee will fulfill the needs of the organization Performance evaluations determine whether the employee is meeting the job requirements.

Sports and Entertainment Marketing © Thomson/South-Western Chapter 14 Slide 27 Compensation and Benefits salary annual job compensation regardless of number of hours worked incentive pay compensation based upon the quantity and quality of completed work

Sports and Entertainment Marketing © Thomson/South-Western Chapter 14 Slide 28 extra incentives beyond salary and wages that employers are not required by law to provide cafeteria plan employees pick and choose from various benefit options to best meet their needs On average, fringe benefits comprise 20% - 40% of employees’ salaries. fringe benefits

Sports and Entertainment Marketing © Thomson/South-Western Chapter 14 Slide 29 Employee Relations The human resource department: provides workplace orientation helps with dispute resolution protects employees’ rights and well being

Sports and Entertainment Marketing © Thomson/South-Western Chapter 14 Slide 30 Explain the importance of job analysis.

Sports and Entertainment Marketing © Thomson/South-Western Chapter 14 Slide 31 Lesson 14.3 Safety and Security Goals Describe risks and safety strategies at concert events. Describe increased security measures at sporting events.

Sports and Entertainment Marketing © Thomson/South-Western Chapter 14 Slide 32 Terms crowd surfing stage diving moshing

Sports and Entertainment Marketing © Thomson/South-Western Chapter 14 Slide 33 SAFETY RISKS AT CONCERTS Large crowds can present safety problems. Accidents at public events can result in serious injury.

Sports and Entertainment Marketing © Thomson/South-Western Chapter 14 Slide 34 Risks at Concerts Overcrowded events can result in: trampled fans compression asphyxia an intolerable pressure that prevents individuals from breathing properly

Sports and Entertainment Marketing © Thomson/South-Western Chapter 14 Slide 35 when a person is lifted above a densely packed crowd and is passed from person to person above audience members’ heads injury can result clothing, including studs, can scratch and bruise fans when a surfer falls other audience members fall too people can get trampled by the crowd crowd surfing

Sports and Entertainment Marketing © Thomson/South-Western Chapter 14 Slide 36 when a performer or fan dives from the stage into the crowd moshing a frenzied form of dance in which people in a circle rotate while simultaneously slamming into each other stage diving

Sports and Entertainment Marketing © Thomson/South-Western Chapter 14 Slide 37 when fans jump up and down in the mosh pit 75% of surveyed concert attendees revealed: they feared for their safety during an event they received injuries during an event mosh-bobbing

Sports and Entertainment Marketing © Thomson/South-Western Chapter 14 Slide 38 Managing the Risks assigned seating safety and emergency training for venue personnel bans on: crowd surfing stage diving third-time-out rule

Sports and Entertainment Marketing © Thomson/South-Western Chapter 14 Slide 39 Fan Precautions Concert attendees need to proactively plan for their own safety. Arrive early to familiarize yourself with the venue’s layout, emergency exits, and first- aid locations. Plan with friends where to meet if you become separated. Avoid the front of the stage.

Sports and Entertainment Marketing © Thomson/South-Western Chapter 14 Slide 40 Avoid crowd surfing, stage diving, and moshing. Leave early to avoid the rush. For outdoor events, be aware of weather forecasts and observe changing conditions.

Sports and Entertainment Marketing © Thomson/South-Western Chapter 14 Slide 41 Why are concerts and sporting events at risk for accidents?

Sports and Entertainment Marketing © Thomson/South-Western Chapter 14 Slide 42 INCREASED SECURITY AT SPORTING EVENTS Terrorism, 9/11, and unpredictable human behavior are all reasons for increased security at sporting events.

Sports and Entertainment Marketing © Thomson/South-Western Chapter 14 Slide 43 Security Plans at Ball Parks and Stadiums Large-scale gatherings have contingency plans in place for natural disasters terrorist attacks Stadium personnel rehearse safety procedures. how to remain calm during a disaster

Sports and Entertainment Marketing © Thomson/South-Western Chapter 14 Slide 44 restricting items that are allowed into the venue limiting curbside access to handicapped individuals close-circuit security televisions wireless network security to patrol large areas surrounding an event Additional proactive measures at major sporting events include

Sports and Entertainment Marketing © Thomson/South-Western Chapter 14 Slide 45 Replacing Police with Wireless Video Cameras New York City spent $9 million to install 500 security cameras throughout the city. Chicago spent about $5 million on a 2,000-camera system. $9.8 million is budgeted to install surveillance cameras and sensors on a rail line in Washington, D.C.

Sports and Entertainment Marketing © Thomson/South-Western Chapter 14 Slide 46 Why should sporting event planners be concerned with security?

Sports and Entertainment Marketing © Thomson/South-Western Chapter 14 Slide 47 PERFORMANCE INDICATORS EVALUATED Understand the latest safety trends at amusement parks. Describe the responsibility or liability for consumer safety at an amusement park.

Sports and Entertainment Marketing © Thomson/South-Western Chapter 14 Slide 48 Explain how safety at amusement parks is a publicity issue. Describe the conflict between maximizing profit and incorporating all safety measures. Explain the importance of “caveat emptor” at an amusement park.

Sports and Entertainment Marketing © Thomson/South-Western Chapter 14 Slide 49 THINK CRITICALLY 1.Why must amusement parks rank safety as a top priority? 2.Should an amusement park be held liable for injuries suffered by guests who carelessly do not follow rules? Explain your answer.

Sports and Entertainment Marketing © Thomson/South-Western Chapter 14 Slide 50 4.How does the topic “Safety at Amusement Parks” involve ethics issues? 3.Why are some attorneys interested in personal injuries and deaths suffered at amusement parks?