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Unique Crisis Response Strategies Relations

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Question:

Discuss About The Unique Crisis Response Strategies Relations?

 

Answer:

Introduction

For the success of any business, it is necessary to evaluate the environmental factors. Evaluating the factors internal and external to the organization has a strong impact on the strategic processes and plan and can be a key determinant in the success of an organization. Once the leaders are able to identify the possible threats and opportunities present in the environment, the activities can be focused in the direction of achievement of strategic goals (Arthur, 2017).

In this respect, the following report focuses on discussing the current strategic position of the company Softball Australia. A brief overview of the company has been provided at the beginning of the report along with its organizational structure, culture and leadership values. The report also includes a SWOT analysis and Porter's five force analysis to evaluate the internal and external factors present in the market.

Overview of the Organization: Softball Australia

Softball Australia is responsible for governing the softball sports in Australia. It is the governing body that comprises of eight member states which include both territories and states, clubs, associations, and all the individual members who are associated with the softball sports (Softball Australia, 2017). These individual members are those who are involved in coaching, playing, officiating or support the game in Australia.

The sport was initially introduced in the year 1939 in NSW when Gordon Young, the NSW’s Director of Physical Education, started promoting the game. However, it was introduced as an organized game in the year 1942 for the recreational purpose for the US nurses that were stationed in Melbourne (Nauright, 2012).

 

Current Strategy of the Company

The current strategy of the operations is focused to achieve its strategic goals by the end of 2020. The strategy of the organization is developed in five key areas which are discussed below:

  • Developing and implementing a strategy that can be listened, communicated and has the capability to engage all the stakeholders and members- for this the organization is adopting alternatives that are concerned with the development of a website which is user-friendly and has a social media footprint. The organization has planned to visit almost every region in a calendar year and develop a system for effective communication and engagement of members.
  • Developing a network of well managed and maintained facilities across the state- the organization is planning to devise a database that has information about all the facilities of places where the softball games have been held. It is also planning to design an asset management plan that would help in determining the true costs.
  • Increase in the participation and development- the organization would be doing this by increasing its members to 5,000, the percentage of junior members to 30%, and coaches by 100% (Softball Western Australia, 2016). The alternatives adopted by the organization would be offering increased activities during calendar events and encouraging the associations to capitalize on the programs in schools, and programs like social 7’s and batter up.
  • Ensuring the sustainability of the softball by increasing the capacity and developing new partnerships across states.

Organizational Structure, Culture and Leadership

The organization follows a functional organizational structure where each portion of the association is grouped as per the purpose. The organization relies on the talent and capabilities of its employees. There are two levels at the top management, the senior most level is comprised of the organisation’s board of directors who are responsible for the strategy formulation and implementation. The next level consists of the organisation’s Chief Executing Officer (CEO).

The next level is the middle management level which consists of different managers responsible for their departments. These managers are appointed for marketing function, sports development, my softball community, office, and handling events (Softball Australia, 2015). The lower level of management is comprised of various coordinators working in the departments, coaches, selectors, and various staff members (See Appendix 1).

Softball Australia fosters a corporate culture of inclusivity where the focus is to make the sports popular among different communities. The organization ensures that the sport is culturally diverse, that is, people from different cultural backgrounds, gender, age groups, and abilities are involved in this sport, either in the form of playing, coaching, mentoring, administrating or promoting the sports.

The leaders of the organization are the board of directors and CEO of the company who is responsible for determining and achieving the strategic goals for the organization. The current panel of the board of directors includes John Hollingsworth (also the chairman), Dennis Cullen, Annette Fidge, Helen Langenberg, Christine Heron, Peter Jon Hartshorne, Ron Gauci, and Fiona Crawford. The board of directors lead the organization and ensure that the sport is well managed and promoted across different states and at the time ensuring its sustainability (Softball Australia, 20171).

 

Internal Analysis: SWOT

The SWOT analysis is a tool used by the organisations to evaluate the internal environment. It stands for Strengths, Weaknesses, Opportunities, and Threats (Sarsby, 2016). A SWOT analysis for the organization, Softball Australia has been presented in the following table.

Strengths

·         Knowledgeable and expert national coaches

·         High performances

·         Popularity of programs among people, such as community coaching program and softball batter up

·         Engagement of all stakeholders (Softball Australia, 2012)

 

Weaknesses

·         High costs on participants

·         Ageing state facility

Opportunities

·         Reintroduction in the Olympics for boosting the profile of the sport

·         Uniting softball state-wide to allow wider communities to afford the game

·         Capacity for facility building in terms of coaches and administrators

·         Development of strong financial base that can be used to invest in the sports in future (Softball Australia, 2012)

Threats

·         Probability of reduction in the financial support provided by the government

·         Preference given to other sports for recreational purpose

·         Servicing only regional affiliates (Softball Western Australia, 2016)

Analysis of the Strategic Direction

On the analysis of the strategic plan of the organization, it is apparent that the organization is taking initiatives to further develop its scope in the states and ensuring its sustainability in the future. Most of its strategies developed for 2020 are focused on increasing its capacity, in terms of members, facilities, coaches, officials, and talent (Softball Western Australia, 2016).

The emphasis of the organization is to develop a uniform strategy that can engage its stakeholders and members present across different states and promote the sports. The focus of these strategies lies in facilitating better communication among partners, increasing the facilities, better participation and development, development of talent and ensuring sustainability of softball.

Industry and Competitive Analysis

For analyzing the external environment Porter's five force model is used which measures the industry's attractiveness on the basis of five factors. These factors include the threat of substitutes, the threat of new entrants, industrial rivalry, bargaining power of buyers and bargaining power of suppliers (Porter, 2008).

Industry Rivalry- as per Porter’s model, the main forces that determine the level of industrial rivalry are market maturity, high fixed costs, and competitors. The game was first played in the year 1939 and since then it has gained significant popularity (Softball Australia, 2017). However, in the current context, the other sports are gaining popularity, placing the softball game at a maturity stage (Softball Western Australia, 2016). The costs incurred on the members and participants are also high making the industry moderately attractive.

Bargaining power of customers- the customers of the organization can be categorized into three, namely media outlets, fans, and corporations. Majority of the revenue comes from the fans who watch the games and league matches by buying tickets. The marketing outlets are responsible for bidding rights to broadcast the games and the corporations are involved with providing the sponsorships for different league teams. Considering all the customer groups, it is apparent that the power with the customers is high.

Bargaining power of suppliers- the power of the players is determined on the factors like the interest of other teams in the player, player's performance, star power and free agent status. However, for the industry, the power of the suppliers is low except few exceptional players.

The threat of substitutes- it is observed that the substitute products, that is, the other games played have a strong impact on the softball industry. Most of the fans are associated with softball due to the recreational purpose and are not die-hard fans, which signifies that they can easily switch to other sports they find interesting and entertaining. Moreover, with the introduction of new games, the threat of substitutes in this industry is very high.

The threat of new entrants- even though, the organization is working for many years and has attained a league status, there are still possibilities for new entrants in the industry. However, it would be difficult for the new entrants to survive in the market due to high capital costs, brand reputation, and stiff competition from Softball Australia.

 

Implications of the Internal and External Analysis

It is observed that the national team is less preferred than the male-dominated sports played in Australia. It is apparent from the fact that the national team could not secure the same funding as that of male-dominated sports even after performing better in the international competitions (Stell, 1991). The major challenge faced by the industry is to provide equal opportunities for both men and women while playing softball.

In the year 2005, the registered number of participants were recorded as 38,347 out of which 25,586 members were women. The encouragement by the state and federal governments and a vision of providing equal opportunities to all the talented players, professional sport of women is gaining importance. The impact of this is observed on the female athletes as they have a better opportunity to receive scholarships from Australian Institute of Sports (Commonwealth of Australia, 2006)

Concept and Feasibility

Benchmarking Against Other Leagues

The benchmarking is related to establishment of the standards in the market place. The benchmarking against the other leagues can be established by making strong position in the market, become the league with the highest profit potential as well as defeating the other teams in the sports. The analysis of the threats for the future success of the leagues can help in maintaining the standards (Anderson, 2011). By winning the team oriented competitions, the benchmarking can be established against the other leagues as it will lead to achievements. The benchmarking provides with the profitability in terms of the achievement in the sports as well as in the financial performance (ISA, 2017). The enhanced performance of the league in context to the sports helps in establishing higher reputation in comparison to the other leagues. The set standards will influence the people as well (Nourayi, 2006). The other leagues will also try to match the stands in order to achieve the success. For this purpose, it is essential for the league to maintain the benchmark.

Market Position of Rivals

The Softball Australia league faces severe competition from various sports league present in the market. A few of them are National Basketball League, Australian Ice Hockey League etc. The topmost position is acquired by the Basketball League of Australia. It was founded in 1979 and at present 8 teams contest for it out of which seven teams are from Australia and one is from New Zealand. There has been a considerable support of the NBL players to establish the league in Asian countries in the near future. In May 2016, the League began to set up their plans for establishing a team in China. This expansion plan is still into consideration. The players at NBL being at the top most positions receive a remuneration upto A$ 1,000,000 (National Basketball League, 2017) .

The Ice Hockey League of Australia is a popular league among other leagues of Ice hockey but the position of Ice Hockey league in Australia is restricted at its place and still needs to attain higher position. The players of AIHL are not paid for playing ice hockey but are given additional benefits like using the car, getting accommodation by the government. The potential plans of expansion of AIHL are towards Queensland by 2018 and Tasmania by 2020 (Ice Hockey Australia, 2017).

Key Success Factors

A sound organizational structure is required for developing a successful league. Such an organizational structure has a defined hierarchy and clearly defined organizational structure and positions. The employees have a clear sense of responsibility and competence and they fulfill them in the correct order and manner.

Defined goal settings - Softball Australia has a defined Hierarchic goal system. It possesses a proper vision of the goals of the league and work in the direction of their achievement. Various departments of the league have their set department goals and each department works in the direction to fulfill them. For example - the under 19 softball league deals with the proper training and development of the under 19 team whereas the women's team has its own defined functions (schilaneck, 2005).

Financing and controlling - Financing is handled by the cash flows and the contributions of the proprietor groups. Sponsoring of the acquisitions and inputs in the ticketing sales add to the finances of the league. The controlling system and processes are highly qualitative and narrow and comply with the goal settings. A controller is held in charge of all the financial transactions including sales and ticketing. Daily reports are handed over to the supervisors (Howard & Crompton, 2002).

Exterior communication system - A fully implemented Exterior communication systems are followed by the professional leagues which lead to their success. A properly implemented Customer identity conception including corporate communication and philosophy, corporate designing and behavior are maintained (Mueller & Lashbrook, 2017).

A worldwide PR strategy helps these leagues to reach heights of success. An efficient Image controlling, defined media contacts and management of relationships between media and the league are the factors contributing to the success (ToniBrucea & TahliaTinib, 2008).

Good Customer relations include a well maintained customer service and event management. An updated customer service database helps maintaining good relations and recognition among the customers.

The management of the league events is maintained on a huge scale. It involves a tremendous pool of the event management companies to organize the large scale sports events. The media coverage makes it too large and creates a fuss in the market months before the leagues start.

Human resource management is another powerful aspect of such successful professional leagues worldwide. The employees are attracted with a wide variety of materialistic and immaterialist incentives and rewards for them. The players get huge incentives apart from their fixed pays. These materialistic bonuses increase the efficient and the team spirit of the players and motivate them (Sports and HR, Talent |, 2017).

The professional leagues follow an efficient method of leadership based on the communicative pattern. Department meetings are held on a regular basis and club meetings on a monthly basis.

 

League Concept

Sports leagues is the group of Sports team which compete against each other in a particular sport. The leagues may be for the amateurs who platy the sport for entertainment or the professionals which form a complex form of the league events. The players playing in the professional leagues get a huge sum of money and are hundreds in numbers. The professional leagues like AIHL, Softball Australia, and NBL Australia are very popular leagues. Their seasons end for several months and the media coverage is so humongous that it makes the league events quite popular all, over the world (Lentze, 1995).

Organization and Governance of Sports Leagues

There are several methods for the organization of the sports leagues. The teams competing in Sports leagues come from different cities or sometimes even the players of different countries are a part of it. Settlement of the rules of the league, selection of the umpires, the marketing strategies is al, the responsibilities of the organizers. The other challenges include collection of the sufficient revenues to make the league events run into profits (Noll, 2003).

To maintain the efficiency in such events financing and controlling systems should be the perfect. Financing must be handled by the cash flows and the contributions of the proprietor groups. Sponsorship of the acquisitions and inputs of the ticketing sales contribute to the finances of the league.

The governing process of leagues comes under the Government of the country under its sports department. The Sports departments fund the league events along with the financial support of the rich businessmen or the celebrities. These top profile people contribute by purchasing the teams and the players by auction. This gives money to the players and the event organization teams. The rules and regulations regarding the conflicts are designed by the Sports Departments of the respective countries (Rodriguez et al., 2007). 

The controlling system and its processes must qualitative and comply with the goal settings of the organizations organizing such events. A controller must be held in charge of all the financial services and transactions including ticketing and sales. Daily reports must be prepared and handed over to supervisors on a regular basis.

Delivery of the Core Product

The delivery of the product depends majorly on the level of the competition among the teams and on the business competition. The delivery of the product depends on the outcomes of the sports which eventually affects the consumers. The consumers identify their favorite teams. The winning team is more likely to become identifiable and the favorite of the consumers.  Initially, league product was developed particularly for the fans that used to attend the games. But today there are various sources of the revenue that are available for the professional sports leagues and the core league product remains while at the same time, the different products are produced by league (Mason, 1999). In order to deliver the core product, the league is required to influence and attract the consumers and make its place in the market. It is essential for the league to use the marketing strategy in order to take the advantage of the potential markets. The one of the difficult task for the leagues is to sell the sports product to the consumers as the consumers are keener towards the sports products that are entertaining for them. The revenue is generated by the selling of the tickets of the league to the fans of the game and this is not provided with the importance by the leagues (Mason, 1999).

Competition be formatted for strategic advantage

The one of the valuable tools for the purpose of understanding the strengths, weaknesses, differences and the similarities of the market position of the rival companies is strategic group mapping. The close competitors are mainly in the nearby or same strategic group. The companies or the leagues which are in the distant strategic groups provides with minor or no threat (Umn.edu, 2017). The various strategic groups’ profit potential differs mainly because of the strengths and weaknesses in each of the market group position. The rivals who have higher profit potential are strongly positioned in the market and the rivals. The competitive pressure of the industry and the drivers of change majorly favor only some of the strategic groups and are unfavorable for the other strategic groups (Linton, 2017).

Team ownership structure

In the history of the sports league, only one type of ownership structure used to exist but in today’s time, there are many types of ownership structure that exists in the sports leagues. For the success of the business and the league, it is essential to create a relatively passionate environment between the supporters of the league and should have the ability to convert a club into brand as well as should have the potential to generate the revenues. Above all, the foundation is the most important by which clubs are developed. The some of the leagues are able to achieve the success with the ownership of the fans (Savino, 2011). This strategy brings success but it also brings criticism of the supports with the public disclosure. The increase in the share provides the supporters with displeasure. The supporter ownership is successful for the some of the leagues and club (Rosner & Shropshire, 2004).

The one ownership model adopted by the league helps in operating the successful business. The one of the type of ownership structure includes the ownership of the clubs as well as operated by league. The clubs are organized independently. The owners as well as the ownership groups are the shareholders of the league. The ownership structure in which the league is owned by the owner group is operated by the owner group itself. (Savino, 2011).

Home and away season vs event structure

The events provide the sports benefits to the participants as well as provide the benefits related to the social, educational and cultural. The events are helpful in the promotion and the development of the sport. In Australia, the day carnival is hosted by Australia for the purpose to provide the opportunities to the young players of Australia as well as to attract the junior player towards the softball through the tournament (Softball Australia, 2017).

The Waverly Easter carnival is conducted by the Waverly Softball Association for the purpose to attract the junior age player during the holidays of Easter annually. This provides the opportunities through the tournament to the teams and develops the young players for future (Littleleague, 2017).

The master events of national as well as international level are hosted for the purpose to offer the physical activity in a festival and social environment. The softball has become the one of the sports in which people take the highest participation in master games (Softball Australia, 2017).      

The university events are hosted by the Australian University Sport. The various types of events are hosted by AUS. The participants should be enrolled in an educational institution for the diploma, degree or certificate course. The events of AUS offers friendly as well as competitive environment. The social program is also conducted during the event for the purpose to improve the experience of the participants (Softball Australia, 2017).

 

References

Anderson, T.R., 2011. Benchmarking In Sports. International Series in Operations Research & Management Science, 71(1), pp.443-54.

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Commonwealth of Australia. 2006. Environment, Communications, Information Technology and the Arts References Committee. About time! Women in sport and recreation in Australia. [Online]. Available at: https://wwda.org.au/wp-content/uploads/2013/12/sportfr06.pdf [Accessed on: 27 September 2017].

Howard, D.R. & Crompton, J.L., 2002. The growth and ?nancial status of professional sports in North America: insights for English soccer league? Taylor & Francis Ltd.

Ice Hockey Australia, 2017. Welcome To Ice Hockey Australia! [Online] Available at: https://www.iha.org.au/ [Accessed 2017].

ISA, 2017. Competitive Benchmarking Services. [Online] Available at: https://www.isa-sports.com/competitive-benchmarking.php [Accessed 2017].

Lentze, G., 1995. The Legal Concept of Professional Sports Leagues. Marquette Sports Law Review, 6(1), pp.65-94.

Linton, I., 2017. How Are Competitive Rivals Positioned in the economics? [Online] Available at: https://smallbusiness.chron.com/competitive-rivals-positioned-marketplace-38921.html [Accessed 2017].

Littleleague, 2017. Structure of Little League Baseball and Softball. [Online] Available at: https://www.littleleague.org/learn/about/structure.htm [Accessed 2017].

Mason, D.S., 1999. What is the sports product and who buys it? The marketing of professional sports leagues. European Journal of Marketiung, 33(3), pp.402-18.

Mueller, J. & Lashbrook, L., 2017. Sports Media & Communication Course. [Online] Available at: https://www.sportsmanagementworldwide.com/courses/sports-marketing-communications [Accessed 2017].

National Basketball League, 2017. National Basketball League. [Online] Available at: https://www.nbl.com.au/ [Accessed 2017].

Nauright, J. 2012. Sports around the World: History, Culture, and Practice [4 volumes]: History, Culture, and Practice. Denver: ABC-CLIO.

Noll, R.G., 2003. The Organization of Sports Leagues. Stanford University.

Nourayi, M.M., 2006. Profitability in professional sports and benchmarking: the case of NBA franchises. Benchmarking: An International Journal, 13(3), pp.252-71.

Porter, M.E. 2008. Competitive Strategy: Techniques for Analyzing Industries and Competitors. New York: Simon and Schuster.

Rodriguez, P., Kessene, S. & Garcia, J., 2007. Governance and competition in professional sports leagues. 1st ed. Universidad de Oviedo.

Rosner, S. & Shropshire, K.L., 2004. The Business of Sports. Jones & Bartlett Learning.

Sarsby, A. 2016. SWOT Analysis. Lulu.com.

Savino, C., 2011. Ownership Structure Of Clubs In The MLS And Abroad. Vox Media Inc.

schilaneck, M., 2005. Key Economic Success factors in professional Sporting Clubs. University of Bayreuth, Germany.

Softball Australia. 2012. Annual Report. [Online]. Available at: https://websites.sportstg.com/get_file.cgi?id=3785526 [Accessed on: 27 September 2017].

Softball Australia. 2015. Softball Australia Organizational Structure. [Online]. Available at: https://assets.softball.org.au/dl/sal/Policies%20&%20procedures/Organisational%20Structure/Organisational%20Chart%20Updated%20May%202015FINAL.pdf [Accessed on: 27 September 2017].

Softball Australia. 2017. History. [Online]. Available at: https://www.softball.org.au/about/ [Accessed on: 27 September 2017].

Softball Australia. 2017. Board of Directors. [Online]. Available at: https://www.softball.org.au/about/board-of-directors/ [Accessed on: 27 September 2017].

Softball Australia, 2017. Tours & Events. [Online] Available at: https://www.softball.org.au/tours-events/ [Accessed 2017].

Softball Western Australia. 2016. Softball WA – 2020 Strategy. [Online]. Accounting at: https://websites.sportstg.com/get_file.cgi?id=35764452 [Accessed on: 27 September 2017].

Sports and HR, Talent |, 2017. This Year's Final Four Proves The Value of "Well Placed" over "Top" Talent. [Online] Available at: https://www.hrcapitalist.com/sports_and_hr/ [Accessed 2017].

Stell, M. K. 1991. Half the Race, A history of Australian women in sport. North Ryde: Harper Collins

ToniBrucea & TahliaTinib, 2008. Unique crisis response strategies in sports public relations: Rugby league and the case for diversion. Public Relations Review, 34(2), pp.108-15.

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