1. Lussier/Kimball, Sport Management, First Edition Copyright © 2004, by South-Western, a division of Thomson Learning PPT4-1 Chapter 4 Strategic and Operational Planning

2. Lussier/Kimball, Sport Management, First Edition Copyright © 2004, by South-Western, a division of Thomson Learning PPT4-2 XFL A great idea does not guarantee success. In fact, for every ten products introduced, eight fail. The reason for this high rate of failure? Poor planning. A prime example is the now-defunct XFL, which was the World Wrestling Federation’s attempt at developing a new professional football league.

3. Lussier/Kimball, Sport Management, First Edition Copyright © 2004, by South-Western, a division of Thomson Learning PPT4-3 In strategic planning, management develops a mission and long-term objectives and determines in advance how they will be accomplished. In operational planning, management sets short-term objectives and determines in advance how they will be accomplished. Strategic vs. Operational Planning

4. Lussier/Kimball, Sport Management, First Edition Copyright © 2004, by South-Western, a division of Thomson Learning PPT4-4 The Strategic Process Develop mission Analyze environment Set objectives Develop strategies Implement and control strategies

5. Lussier/Kimball, Sport Management, First Edition Copyright © 2004, by South-Western, a division of Thomson Learning PPT4-5 Three Levels of Strategies Corporate Business Functional

6. Lussier/Kimball, Sport Management, First Edition Copyright © 2004, by South-Western, a division of Thomson Learning PPT4-6 Situation Analysis Draws out those features in a company’s environment that most directly frame its strategic window of options and opportunities.

7. Lussier/Kimball, Sport Management, First Edition Copyright © 2004, by South-Western, a division of Thomson Learning PPT4-7 Situation Analysis: Three Parts Analysis of the company’s industry and its competition Analysis of the company’s particular situation Analysis of the company’s competitive advantage (or lack thereof)

8. Lussier/Kimball, Sport Management, First Edition Copyright © 2004, by South-Western, a division of Thomson Learning PPT4-8 Five Competitive Forces Rivalry among competing firms Potential development of substitute products and services Potential entry of new competitors Bargaining power of suppliers Bargaining power of consumers

9. Lussier/Kimball, Sport Management, First Edition Copyright © 2004, by South-Western, a division of Thomson Learning PPT4-9 Step 1: Assess present strategy Step 2: Analyze SWOTs Step 3: Assess competitive strength Step 4: Make conclusions Step 5: Decide what issues to address Company Analysis: Five Steps

10. Lussier/Kimball, Sport Management, First Edition Copyright © 2004, by South-Western, a division of Thomson Learning PPT4-10 Competitive Advantage Specifies how the organization offers unique customer value. What makes us different from our competition? Why should a person buy our product or service over the competition’s?

11. Lussier/Kimball, Sport Management, First Edition Copyright © 2004, by South-Western, a division of Thomson Learning PPT4-11 Goals state general targets to be accomplished. Objectives state what is to be accomplished in specific and measurable terms by a certain target date. Goals and Objectives

12. Lussier/Kimball, Sport Management, First Edition Copyright © 2004, by South-Western, a division of Thomson Learning PPT4-12 Management by Objectives MBO is the process by which managers and their teams jointly set objectives, periodically evaluate performance, and reward according to the results.

13. Lussier/Kimball, Sport Management, First Edition Copyright © 2004, by South-Western, a division of Thomson Learning PPT4-13 Grand Strategies Growth Stability Turnaround and Retrenchment Or a combination thereof

14. Lussier/Kimball, Sport Management, First Edition Copyright © 2004, by South-Western, a division of Thomson Learning PPT4-14 Corporate Growth Strategies Concentration Backward integration Forward integration Related and unrelated diversification Mergers Acquisitions

15. Lussier/Kimball, Sport Management, First Edition Copyright © 2004, by South-Western, a division of Thomson Learning PPT4-15 Business Portfolio Analysis Corporations determine which lines of business they will be in and how they will allocate resources among the different lines. A business line—also called a strategic business unit (SBU)—is a distinct business with its own customers that is managed reasonably and independently of the corporation’s other businesses.

16. Lussier/Kimball, Sport Management, First Edition Copyright © 2004, by South-Western, a division of Thomson Learning PPT4-16 BCG Growth-Share Matrix Cash cows Question marks Stars Dogs

17. Lussier/Kimball, Sport Management, First Edition Copyright © 2004, by South-Western, a division of Thomson Learning PPT4-17 Business-Level Strategy Adaptive Strategies: prospecting, defending, and analyzing. Competitive Strategies: Michael Porter identifies three effective business-level : differentiation, cost leadership, and focus.

18. Lussier/Kimball, Sport Management, First Edition Copyright © 2004, by South-Western, a division of Thomson Learning PPT4-18 Product Life Cycle Introduction Growth Maturity Decline

19. Lussier/Kimball, Sport Management, First Edition Copyright © 2004, by South-Western, a division of Thomson Learning PPT4-19 Functional-Level Strategies Operational strategies are used by every functional- level department—marketing, operations, human resources, finance—to achieve corporate- and business-level objectives.