Assessing the Risks and Rewards of BC Sports Coaching Expanding to Portsmouth

Managers must continually assess risk and reward when making critical decisions, especially in uncertain situations. A sports coaching company that specialises in teaching school PE wish to expand their business to the Portsmouth area. As a business consultant to the company, critically analyse the potential risk and reward of this venture.

Arguments must be underpinned by the academic business theory and models taught in this unit. Your business strategy document will discuss current issues of business management and produce a forecast for future sustainability within a set business plan format. This assessment is designed to give you the opportunity to research and explore in greater detail the areas of Sports Business Management that were covered within the lecture and seminar programme.

You will be required to follow the structure below to complete the assessment:

1. Executive summary
2. Business vision
3. External analysis
4. Internal analysis
5. Marketing strategy
6. Financial report

 In addition to the standard marking criteria provided on the unit Moodle site particular attention will be focused on:

• The extent to which the main themes (above) are discussed and analysed
• Evidence of the depth in which a topic has been investigated (research beyond the lecture and seminar readings is highly recommended)
• The accuracy of the referencing
• Any further research, notes, illustrations or statistics that are relevant to the topic

1. Demonstrate understanding of environmental factors which influence the management of the sports business industry.
2. Evaluate and apply sports management principles to solve real-lift business problems.

Making use of your feedback

Please see comments in previously assessed Essay/Written Assessments in the below units

1. Introduction to Sport, Business and Management (L4)
2. Theoretical Perspectives on Contemporary Sport (L4)

Company Information

BC Sports Coaching is a business which specialises in delivering PE and after school sports in primary clubs. We mainly operate in Wiltshire (roughly 200 hours per week) and some small areas of Hampshire (20 hours per week). We wish to expand our business to the Portsmouth area where there is a high density of schools per area.

Our organisation is structured as follows: PE coaching staff (26 employees), two area managers, and one CEO. Area managers are required to coordinate all business within their geographic area, liase with schools to ensure high quality provision, and generate new business.

We require you to analyse the market that we wish to join in order for us to identify the competitive intensity of the industry. There are a number of competitors in the Portsmouth and wider Hampshire area that we need to be aware of.

Fees

We charge schools £32 per hour (PE) and parents £3 per child (After school clubs). We need a minimum of 8 children per after school club to make it a viable enterprise.

We also have a budget of £1000 to spend on marketing materials. We require you to create a marketing strategy to target these schools and generate new business for the company. You will need to produce leaflets/banners as appropriate to distribute to schools. We have allocated 1 day of current staff time to prepare these marketing materials for sending. We would like a combination of physical materials (i.e., leaflets) and a viral marketing campaign which is linked.

Staffing

We will need to hire additional staff to cover these new schools and you will need to factor this into your sustainability plan. One full time staff member requires a minimum of 10 hours of PE/after school club delivery to be sustainable. One part time member of staff requires a minimum of 5 hours of PE/after school club delivery to be sustainable. One full time staff member costs £1083.00 per month, and one part time member of staff costs £500.00 per month.

Forecasting

You will need to work out how much income we can realistically generate over the next year, how much this will cost in terms of staffing and marketing, and what marketing strategy we can implement in order to make it successful.