Abstract
The purpose of this review was to critically discuss an environmental analysis that considers the needs of sports organisations. The main objectives were to discuss the determinants in the micro environment, the market environment and the macro environment that will influence the strategic management and the development of a business strategy. Sport has progressed from a pursuit of leisure to a multi-million industry and due to this shift, the need for sound commercial business principles in managing, developing and promoting sports organisations has increased. Studies have found that the characteristics and historical culture of sport make the sports organisation unique in the sense that it requires adapted commercial business principles when conducting strategic management. Sport is increasingly becoming more commercialised and the need for sound management principles is apparent. Due to the unique nature of sports organisations, it is clear that business-management principles, such as strategic management and environmental analyses, have to be adapted to suit the needs of the sports organisation. Previous literature was collected and synthesised to form an analytical framework of the sports’ organisations environmental analysis. Key words: Business management, strategic management, environmental analysis, sports management, sports organisations.
Highlights
Sport has progressed from a pure pursuit of leisure to a multi-million dollar industry (Chadwick, 2009:191)
The management of sports organisations is viewed from two contrasting philosophical approaches: at the one side of the continuum, sport is seen as a unique cultural institution with a host of special features, including a rich history, emotional connections, tribal links and social relevance that standard business practices will only erode, and on the other side, sport is viewed as nothing more than a generic business enterprise subject to government regulations, market pressures and customer demands (Smith and Stewart, 2010:1)
It has been found that the unique characteristics and deeply rooted historical culture found in sport make the sports organisation unique in the sense that it requires adapted commercial business principles (Shilbury et al, 2008:218)
Summary
The purpose of this review was to critically discuss an environmental analysis that considers the needs of sports organisations. Sport has progressed from a pursuit of leisure to a multi-million industry and due to this shift, the need for sound commercial business principles in managing, developing and promoting sports organisations has increased. Studies have found that the characteristics and historical culture of sport make the sports organisation unique in the sense that it requires adapted commercial business principles when conducting strategic management. Sport is increasingly becoming more commercialised and the need for sound management principles is apparent. Due to the unique nature of sports organisations, it is clear that business-management principles, such as strategic management and environmental analyses, have to be adapted to suit the needs of the sports organisation.
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