SSM - Blog #1 - Literature Review

Strategy plays an imperative part in the future of sporting organisations. Hoye et. Al (2012) defines strategy in its simplest form as “the match or interface between an organisation and its external environment”. According to Harrison, J & Caron, H (2008) strategic management is:

“The process through which organisations analyse and learn from their internal and external environments, establish strategic direction, create strategies that are intended to help achieve establish goals and execute those strategies, all in an effort to satisfy stakeholders.”

To improve the strategic direction of the organisation, a SWOT Analysis should be completed. A SWOT Analysis is used in comparing the strengths and weaknesses within an organisation and outlining the opportunity and threats (Willams 2009). The SWOT Analysis is completed in two parts, an internal analysis and an external analysis. Hoye et al. (2012) states the internal analysis:

“Covers everything that an organisation has control over, some of which are performed well and can be viewed as capabilities (strengths), while the others are too difficult to do well and can be seen as deficiencies (weaknesses).”

The second part of the SWOT Analysis is the analysis of the external environment which are the factors “the organisation has no direct control over” (Hoye et al. 2012). Harrison, J & Caron, H (2008) state that an organisation utilises this analysis and identifies the main areas to be used in creating strategies.  The purpose of a strategic direction is to “(express) the purposes for which an organisation exists and operates” (Harrison, J & Caron, H 2008). The strategic direction includes a vision and mission statement.

Harrison, J & Caron, H (2008) state that the capacities or industries that an organisation operates to outline it for those who unaware stakeholders and members of the public is done so in a mission statement. A vision statement is an “expression of what the organisation wants to achieve within a period of around three to five years” (Reference). Organisational objectives and Key Performance Indicators (KPI’s) are created and used in “order to establish success or failure” (Hoye et. al, 2012) of the strategic direction and act as measurements in completing a task (Hoye et. al., 2012).

The next step is implementing the strategy. Strategy implementation is “the set of actions firms take to use a strategy after it has been selected” (Foundations 1). Once the strategy has been implemented the strategic control will be the “processes that lead to adjustments in strategic direction, strategies or the implementation plan where necessary” (Harrison, J & Caron, J 2008). The final step of the strategic direction is the strategic restricting which “typically involves a renewed emphasis on the things an organisation does well, combined with a variety of tactics to revitalise the organisation and restrengthen its competitive position” (Harrison, J & Caron, J 2008).

 

REFERENCES

 Hoye, R, Smith, A, Nicholson, M, Steward, B, & Westerbeek, H 2012, Sport Management Principles and Application, 3rd Edn, Routledge, New York, NY.

 Harrison, JS & Caron, JH 2008, Foundations In Strategic Management, Thompson Higher Education, Mason, USA.

 Williams, K 2009, Strategic Management, New York, N.Y: DK Pub, eBook Collection (EBSCOhost), EBSCOhost, viewed 9 November 2013.

 Ireland, DR, Hoskisson, RE, Hitt, MA 2009, Understanding Business Strategy: Concepts and Cases, 2nd Edition, South - Western Cengage Learning, Canada.