Sport Organizations and their Environment

Organizations have two types of environments, a general environment and a task environment. Right now I am going to focus on the general environment. The general environment of a sport organization is made up of seven different sectors that all impact either the industry around that organization, or the organization itself. These eight different sectors include: economic, socio-cultural, legal, ecological, technological, political and demographic. Each one of these sectors has its own impact on the general environment of a sport organization. The economy significantly impacts a sport organization's environment because it alters patterns of consumption, for example. In an unstable economy, like the one we are in right now, people consume sports differently. Some may not be able to attend actual sporting events now because they've had to cut down on their expenses and may opt to watch them on T.V. This is one example of the many ways that the economy affects sport organizations. The political component essentially is "the extent to which political power is concentrated and the ideology of the party in power are all factors that can influence a sport organization" (Slack & Parent 152). In other words, the political climate surrounding sport organizations will influence what sporting goods, for example, are in demand at a particular time. A socio-cultural factor that impacts the general environment of an organization is the culture in which the organization exists. The example the book provides is in regards to soccer and how the sport has struggled to survive in North America despite how popular the sport is worldwide. "The type of legal system within the country in which the sport organization operates, the jurisdictions overseen by various levels of government, and the existence of laws covering such areas as taxation, unionization, and the regulation of organizations, all constitute the legal conditions affecting a sport organization" (Slack & Parent 152). Demographics refer to the target market of a sport organization. Organizations target their products or services to people of a certain age, ethnicity, gender, etc. depending on who will most likely consumer their product or service. The ecological component refers to the physical environment surrounding an organization and how it impacts putting on an event. For example, weather can significantly impact operations of an event. The other way to look at it is for the organization to be aware of how its activities are affecting the surrounding environment. Last but not least, the technological sector. Technological developments within an organization can improve production or the efficiency of production, which can lead to a company to engage in new activities.

-Kristen Dockery