Strategy

Strategy formulation is an important task of senior managers and sport boards. It has become increasingly important in sport organisations all over the world, as the process of professionalisation in sport organisations continues. Rational planning leading to deliberate strategic actions underpins strategic processes adopted by the vast array of sport organisations. Sport organisations, however, do not exist solely in the world of rational planning as those responsible for planning are often subject to an intense emotional environment as the fortunes of teams and athletes fluctuate during competitions, or a season of competition. Notwithstanding the need to recognise the environment in which sport operates as a leisure pursuit, some formal processes are required to map out a pattern of actions for all those involved with a specific sport to guide behaviour. Strategy in its simplest form is a pattern of actions designed to chart a course to achieve a sport organisation’s objectives and in general to achieve on-field success and to grow the game. Understanding an industry’s competitive forces is critical to exercising strategic choices. Porter’s (1979) competitive forces analysis provides a mechanism by which to conduct this exercise and having done so to choose patterns of actions designed to create a competitive advantage. It is important to identify a competitive advantage for a sport organisation that creates a sustainable and enduring advantage. In heavily regulated professional sport leagues, it can be difficult to identify, create, and sustain a competitive advantage. This serves to sharpen the importance and need for refined strategic processes to identify a competitive edge. Strategic planning is used as the main tool through which senior managers examine the environment to determine competitive forces, identify internal capabilities and competencies, determine a vision and mission statement and values to guide organisational behaviour before exercising strategic choice. Strategic choice is the process of selecting a pattern of actions or strategy(ies) designed to allow a sport organisation to achieve its key strategic goals and objectives. This process is ongoing as a sport organisation constantly monitors its progress against these objectives and refines and modifies its strategies as circumstances change. Strategic choice involves selection of a pattern of actions from a vast array of strategies largely falling into four categories, namely generic, vertical, and horizontal integration, diversification, and cooperative strategies. In sport, competing successfully is often multidimensional and not solely focused on achieving bottom line financial outcomes. On-field success is obviously important in professional sport, and at many other levels in the sport system. Moreover, building ‘shareholder wealth’ in sport has more to do with building communities, social capital and bonding, a sense of belonging among fans, fan engagement, providing the opportunity for participation, and the associated joy of skills mastery and volunteer involvement than solely financial outcomes. Strategy matters because, if undertaken with skill and diligence by sport managers, it will account for and facilitate these multiple outcomes relative to the purpose of a sport organisations at all levels in a purposeful and meaningful manner.