There are many different things that influence whether or not a sports organizations succeeds or fails. In past blogs we have talked about how the structure and design influence the success of sports organizations, and we have also talked about the organizations strategies and how they can help them accomplish their goals. Well there is yet another thing that determines how successful a sports organization is how organizations react to the environments that surround it. In the book it talks about how there are two sectors that influence an organization and those are the general environment and the task environment.
The general environment has less of an impact on organizations than the task environment. The general environment includes things like economic conditions, political situations, legal conditions, ecological factors, sociocultural factors, demographics, and technological developments. These general things effect every organization even if it is not in the sports sector.
The second sector of environment is the task environment. This is the most important sector because everything has a large impact on the sport organization. The five main things in this sector are suppliers, competitors, athletes' groups/staff, regulatory agencies, and customers/members/fans. Sports organization managers and CEOs focus on these five things to better their company. They use planning and forecasting to predict what the environment might be like in the future, and then adjust their goals and strategies from there.
In the article assigned for this week by Alison J. Armstrong-Doherty they talk about how Canadian Universities are concerned about their dependence on non-university sources for financial support. The universities are trying to figure out ways to generate more money, so that they will not be so reliant on the non-university sources. They are doing this in fear of the compromise of the education principles underlying interuniversity athletics. In this study they looked at financial input of various contributors and how it related to the control in athletic departments. When looking at this it would be smart of the universities to shy away from non-university sources for revenue because of the different environmental factors. One of those factors being the possibility of poor economic conditions, which would make the non university donors more likely to donate less money to the school. Even though this is a general environment category it would still have a significant impact on donations.
In any organization top level management must look at and analyze environmental factors. They must determine and forecast the complexity of the environment and the amount of change in the environment. The companies or organizations that do this the best will be the most successful.
1. If you were a top level manager at Nike corporation which environmental factor would you be most concerned with? (demographics, technological developments economic conditions ect.)
2. In regards to the article by Armstrong-Doherty do you agree that shying away from non-university revenue would be a good idea to help uphold the educational principles underlying interuniversity athletics?