Assignment 4.1: Calculate management risks

Purpose: Learn to think about management mistakes and be aware that risk need to be calculated well.

Task: Imagine a sport related organization which faces economical challenges because of poor financial and economic knowledge. Describe your example briefly and outline a possible solution.

Interaction: Read the solutions of some other learners and explain why you agree or present an alternative solution.

Please note! I was in contact with Lily, the facilitator of this week, and she wishes you to change your focus and perspective in this assignment. She writes: “The week 4 is not intented for the analysis of any global companies or for management issues of professional sports. The whole week is about your own business ideas!” In order to make this clear Lily is giving feedback through her comments!

Regards, Natasa

115 Comments

  1. Paolo De Pasquale

    Hi everybody!!!
    I imagine a swimmingpool with only swimming-learning lessons.
    nowadays water fitness is a very important part of the pool, i think that nowadays can be an error to not consider water fitness like a system to have lots of clients, and than the pool and the society can survive.

    Reply
    1. Jutta Pauschenwein (Post author)

      Hi Paolo, good morning 🙂

      Reply
  2. Luca

    I take the example of a gym, which does not notice the change in market demand and that always offers the same kind of offer every year without noticing that the world of gyms is changing, people always prefer more high activity intensity and group, the solution could be to invest in the renewal of the activities proposed by the gym going to meet an offer that meets the market demand

    Reply
  3. Margarita

    Most people think that commerce is bad. And sport is like charity. Federations receive little money from the state, athletes spend their time and health in order to win medals for the country. I think we need to combine commerce and sports. Where do taxes go that people pay? I think sponsoring sports should not be a charity, but an obligation of big firms. In other countries, those organizations that help athletes receive discounts on taxes or other bonuses. Then large organizations with large income are interested in helping athletes and are looking for athletes whom they want to sponsor.

    Reply
  4. Monika

    I working in Lithuanian Hockey Federation. We are just 3 persons which working with everything, President, Chief Officer (it’s me) and Treasure. So I and President doing all the thing from children’s championship organisation till marketing and sponsors finding.
    We realised that we need more persons to grow up like sport, but our Ministry of Sports don’t understand this.
    Simple system: No money-> no new employees-> no new sponsors-> no money for new employees.
    And this is big problem for lot of country’s and sports. First we must to change our thought about sport system, that we can change something.

    Reply
  5. Alberto Brumana

    In a village near my city there is a table tennis club. I think it’s a nice sport, but in Italy it is not very practiced at a competitive level. To grow and have more economic income I think the club should move to the city, in order to have more visibility and be known by other young athletes, thus obtaining the possibility of new sponsorships.

    Reply
  6. Levente Ali

    I just have so much much experience of this topic, haha! 😂

    In Hungary, there are so much people with economical knowledges, but non of the sport clubs (except the great clubs) employs them, because they think, they know and can do everything by themselves and the professional sports economists are just a waste of money.

    My old club is one of them for example.

    I think, every sports club should employ a sports manager or economist and it should written in law!

    Reply
  7. tomas_eas

    I would like to tell you about one sport school in my town. I see a problem in this organization. This organization don’t have new sport equipments (equipments are very old and obsolete). They don’t have support and school leader don’t want to collaborate to sports clubs. School lose coaches and popularity and big clubs suggest good coaches to come work to their clubs. So I think, that the future belong to strong and big sport clubs, because they can attract support, best coaches and create strong teams.

    Reply
  8. Leila

    Hi,
    When for example, a sport club having economical problems, changes needed immediately. It’s one of the biggest questions. It can happen for so many reasons. I choose the sponsorhsip problem. Think about a club lose it’s main sponsor. It can be really hard to find another one right away for a long term, of course. The fastest way is the media, the internet. You should have som big names in your team as well. After the team found a new sponsor, it has to prove the sponsor, it was a good investment.

    Reply
    1. Kinga Csonkics

      I partly agree with you but I think sportlubs (for example little sport clubs) not always have sponsors. I think the club have to have so much other income. (membership fees, tournament organization,> ticket sales, etc.)

      Reply
  9. Justinas

    I would like to write about one sport federation in Lithuania. Nowadays it gets enough money from our government because of good athletes results. But we forget that sport is sport and you have to think about future. You never know what can happen with your athletes so have to prepare for bad times as well. For me it looks like that this federation could be much better. I think the main problem is that one or two persons taking too much responsibility and doing few things in one moment. I think you can’t be good in everything. So sharing works is much better idea. Because then you can be much more productive. And other thing you have to share information with others and teach younger and less experience people around you. Other thing is lack of transparency. I see that than I am comparing other sports federations. Maybe other federations have not so good results at the moment but in long term i think its much better strategy

    Reply
  10. Tóth Anett

    I think the best way to build a sport related organization is social media. It is really important beacuse nowadays people always on there phone and see what happends in the word. So for example if we have a basketball club with financial problem we can make incoming money from the tickets and from the membership fee. To achieve this we can make facebook events and invite people. Maybe children also come to see the match and they want to do this sport after that.

    Reply
    1. Levente Ali

      I agree! It is a great idea!

      Reply
  11. Povilas

    Hello,
    I think that mora less all sport organizations which promote other than basketball in Lithuania face bigger/smaller financial challenges. All depends from the number of members in particular kids. In addition, this is not all the time related with lack of the economical knowledge, a lot of factors come together decreasing number of people in country (emigration), the fight between the club and the sports over the members and others.
    Povilas

    Reply
  12. Eglė

    I think that the organization which is struggling with financial situation is our federation. Lithuanians are well known and have long history in preparing excellent pentathlon coaches and athletes. This shows good results in all major tournaments at international level. Nevertheless, federation struggling to attract income and to convince different stakeholders (government, sponsors) to support organization. Taking in to account that pentathlon need big financial support, because of different sport events in it. To be honest for me is difficult to say what could be done to solve this problem, maybe it is necessary to check examples from other countries.
    Eglė

    Reply
  13. Kinga Csonkics

    I think it can be a sport club which is supported by a bigger organisation. For example there is a factory and it has a sport club. The factory supports the club, but maybe the factory doesn’t have enough income to maintians itself and the factory needs to close but the sport club is traying to be alive.
    In Hungary there are lot’s example for it. The senior management of the sportclub haven’t checked enough/ or they didn’t understand the competitiveness of the factory.
    After that the club have to maintain themselves or try other opportunities.

    Reply
  14. Nedim Covic

    Example of local football club. Basically most of the failed ideas in business or in sport organisation were related to poor human resource management and unfamiliar directions of money flow. You must be very aware of possible financial outcomes since the way the sport organisation is lead is totally opposite to leading a legal company. Sport organisation is based on getting money by being well known and by being brand. So you have to focus to become a sport brand and to provoke a certain emotions which will help found raise. When you plan something you have to consider costs and human capability to be effective and efficient in resolving tasks.
    1. Gather all the info
    2. Analyse it and interpret it terminally
    3. Do not make fast decision.
    A local club which I mentioned became economically stable thanks to smart decisions and redirecting money into investments instead of costs.

    Reply
  15. Nedim Covic

    Descriptive Statistics
    N Range Minimum Maximum Mean Std. Deviation Variance Skewness Kurtosis
    IPTEL 11 178 74 252 159.88 53.718 2885.660 .319 -.198
    IPTED 11 185 76 261 174.31 49.207 2421.317 -.214 .986
    IPTFL 11 72 59 131 83.17 20.956 439.156 1.037 1.446
    IPTFD 11 76 66 143 91.67 22.025 485.086 1.271 1.789
    IPQEL 11 5 1 6 3.52 1.353 1.831 .130 1.532
    IPQED 11 5 2 7 3.91 1.606 2.579 .609 -.119
    IPQFL 11 2 1 3 1.81 .538 .290 -.006 .377
    IPQD 11 3 1 3 2.04 .746 .556 .395 .026
    ITQEL30 11 93 36 129 87.58 30.667 940.480 -.282 -1.063
    ITQED30 11 160 23 184 100.02 47.679 2273.244 .237 -.269
    ITQFL30 11 61 45 106 73.69 20.499 420.193 -.015 -1.459
    ITQFD30 11 67 52 119 79.34 23.024 530.115 .456 -1.032
    ITQEL18 11 144 56 200 120.15 42.256 1785.535 .394 .135
    ITQED18 11 125 75 200 124.67 36.603 1339.784 .828 .671
    ITQFL18 11 56 27 82 58.43 19.669 386.872 -.457 -.651
    ITQFD18 11 49 52 101 68.87 16.311 266.062 1.013 -.135
    FPTEL 11 1312 103 1415 289.93 375.864 141273.446 3.228 10.570
    FPTED 11 125 135 260 189.45 40.385 1630.939 .475 -.862
    FPTFL 11 82 55 138 91.35 22.062 486.727 .504 1.128
    FPTFD 11 62 70 132 97.05 22.611 511.239 .493 -1.166
    FPQEL 11 5 2 7 3.90 1.533 2.350 .450 .247
    FPQUED 11 6 2 8 4.29 1.784 3.181 1.073 .616
    FPQFL 11 3 1 3 2.16 .764 .584 .166 -.519
    FPQD 11 9 1 10 2.90 2.487 6.186 2.731 8.163
    FTQEL30 11 115 17 132 77.96 38.576 1488.101 -.156 -1.055
    FTQED30 11 125 31 156 108.26 33.056 1092.731 -1.203 2.419
    FTQFL30 11 92 38 130 77.79 27.881 777.357 .173 -.279
    FTQFD30 11 69 55 124 86.00 20.934 438.250 .250 -.593
    FTQEL18 11 127 71 198 139.48 38.984 1519.718 -.002 -.586
    FTQED18 11 220 5 225 134.53 58.252 3393.324 -.806 1.609
    FTQFL18 11 57 50 106 79.06 19.646 385.955 .015 -1.287
    FTQF18 11 58 54 112 81.40 17.604 309.884 .085 -.322

    Paired Samples Test
    Paired Differences t df Sig. (2-tailed)
    Mean Std. Deviation Std. Error Mean 95% Confidence Interval of the Difference
    Lower Upper
    Pair 1 IPTEL – FPTEL -130.045 382.387 115.294 -386.936 126.845 -1.128 10 .286
    Pair 2 IPTED – FPTED -15.145 23.085 6.961 -30.654 .364 -2.176 10 .055
    Pair 3 IPTFL – FPTFL -8.173 10.240 3.087 -15.052 -1.293 -2.647 10 .024
    Pair 4 IPTFD – FPTFD -5.382 12.032 3.628 -13.465 2.702 -1.483 10 .169
    Pair 5 IPQEL – FPQEL -.376 .676 .204 -.830 .078 -1.845 10 .095
    Pair 6 IPQED – FPQUED -.382 .545 .164 -.748 -.015 -2.322 10 .043
    Pair 7 IPQFL – FPQFL -.350 .611 .184 -.761 .060 -1.900 10 .087
    Pair 8 IPQD – FPQD -.851 2.559 .772 -2.570 .868 -1.103 10 .296
    Pair 9 ITQEL30 – FTQEL30 9.618 22.058 6.651 -5.200 24.437 1.446 10 .179
    Pair 10 ITQED30 – FTQED30 -8.245 31.949 9.633 -29.709 13.218 -.856 10 .412
    Pair 11 ITQFL30 – FTQFL30 -4.100 19.138 5.770 -16.957 8.757 -.711 10 .494
    Pair 12 ITQFD30 – FTQFD30 -6.664 15.183 4.578 -16.863 3.536 -1.456 10 .176
    Pair 13 ITQEL18 – FTQEL18 -19.336 24.829 7.486 -36.017 -2.656 -2.583 10 .027
    Pair 14 ITQED18 – FTQED18 -9.855 44.341 13.369 -39.643 19.934 -.737 10 .478
    Pair 15 ITQFL18 – FTQFL18 -20.636 16.736 5.046 -31.880 -9.393 -4.090 10 .002
    Pair 16 ITQFD18 – FTQF18 -12.527 11.151 3.362 -20.019 -5.036 -3.726 10 .004

    Paired Samples Correlations
    N Correlation Sig.
    Pair 1 IPTEL & FPTEL 11 -.051 .882
    Pair 2 IPTED & FPTED 11 .885 .000
    Pair 3 IPTFL & FPTFL 11 .888 .000
    Pair 4 IPTFD & FPTFD 11 .855 .001
    Pair 5 IPQEL & FPQEL 11 .898 .000
    Pair 6 IPQED & FPQUED 11 .954 .000
    Pair 7 IPQFL & FPQFL 11 .608 .047
    Pair 8 IPQD & FPQD 11 .052 .878
    Pair 9 ITQEL30 & FTQEL30 11 .821 .002
    Pair 10 ITQED30 & FTQED30 11 .744 .009
    Pair 11 ITQFL30 & FTQFL30 11 .727 .011
    Pair 12 ITQFD30 & FTQFD30 11 .765 .006
    Pair 13 ITQEL18 & FTQEL18 11 .816 .002
    Pair 14 ITQED18 & FTQED18 11 .649 .031
    Pair 15 ITQFL18 & FTQFL18 11 .638 .035
    Pair 16 ITQFD18 & FTQF18 11 .786 .004

    Example of local football club. Basically most of the failed ideas in business or in sport organisation were related to poor human resource management and unfamiliar directions of money flow. You must be very aware of possible financial outcomes since the way the sport organisation is lead is totally opposite to leading a legal company. Sport organisation is based on getting money by being well known and by being brand. So you have to focus to become a sport brand and to provoke a certain emotions which will help found raise. When you plan something you have to consider costs and human capability to be effective and efficient in resolving tasks.
    1. Gather all the info
    2. Analyse it and interpret it terminally
    3. Do not make fast decision.
    A local club which I mentioned became economically stable thanks to smart decisions and redirecting money into investments instead of costs.

    Reply
  16. cemotarik

    I live in Bosnia and Herzegovina a small country on Balkan. Country doesn't invest enough money in sport. Because of that we now have many children that are overweight.
    I don't blame only the country I blame also the personal trainers and clubs. Their policy isn't to make a healthy and adaptable children, they only want to make as much money as they can. They don't understand how the world works. If you only think about money the kids will feel that you dont care about them and you will start to lose them. That maybe won't happen right away but the time will come. If I ever start my own club I wouldn't judge kids by their social or economical status. Everyone would be welcome and I would try not only to make them good in sports I would work on them as a living beings. I think if I work like this you will have also money because people will recognize yours efforts.

    Reply
  17. Vilius Sa

    Hi, I would take as an example sport clubs in periphery in Lithuania. In my opinion almost all club face financial problems, because almost all depends from the municipality of that area. If you are in good relations you do not need to thing about anything, but if you did something wrong or government has changed you do not have enough funds to survive. The best solution I think is stop rely on other for money and start run organization independently. Maybe in the beginning will be difficult, but in a long run it will give you advantage. Everything depends on the mindset.
    Vilius

    Reply
  18. Tomas_LT

    I would like to take our boxing club. When we started our facilities weren’t in the best condition and we needed financial support. As we are private club it was difficult. But we decided to extend our service in the club and offer it to different age people. This gave us opportunity to survive and advantage against other clubs.
    Tomas

    Reply
  19. Nikšić Azur Omar

    Hello
    I live in a small country in Bosnia and Herzegovina, unfortunately the sport in it is not so developed. Through their sporting experience and experience with the sports clubs so far, the financial conditions of clubs are very weak. I will cite one example that each of our competitions paid each one our own trip, and besides that, we did not have adequate training conditions, which is why many gave up on further training. In my opinion, some people in the club that manage finances should change. My goal is to help the club find newcomers, get good sponsors, and get new people who will manage the finances in a better way.

    Reply
  20. Raimonda Palionyte

    Hello Everybody,
    I think, that if there is no financial or economic knowledge, there is very important to have human resources. Private initiatives sometimes can be used in the very original ways. And there is no need to have money. I think, that more than money is ideas, human resources, good mood in the sport organization. If the is a good idea engine, some experience in sport, you always will have solutions for situations.

    Reply
  21. Rasa

    Hi,

    I would like to tell about my “business” :))
    4 year ago, we decided to create judo referee association. There was no such thing in Lithuania. There was only veterans referee, who mostly referees because its time to be with old friends.
    It was hard for us. We were young sportsmans, that wants to make a change to referees quality and competitions quality.
    We had a lot pressure, that was from older referees, that its no point to do that, that nothing will change…. you to young… and etc.
    2 years were only proving to everyone that we want to be that change, we want to be respected referee, invested to ourself, studied videos, made seminars, worked as a referee for free, only for practice and opportunity to learn more. I was time that we had to stand out. We offered ourself to coaches, that we can do a lot, and do it with passion. We have been rejectect several times, because of no competitive history and youthness.
    Today, we are young respected referees, in Lithuania, main competitions are supported by our organization and everyone wants to have us in organizing competitions.
    It was hard work, but today, I am the head of referees, my team is 15 young referees, we have waiting list, that’s wants to be part of our team.

    Reply
  22. Aleksandras Baranovas

    Hello everyone, i think the best solution for a sport realated organizotion is social media, communication with other people, organizations, showing them quality of what they do. Marketing is the key i think for sports organization, ofcourse quality marketing, videos, photos, posts in social media, ofcourse it will take a time, but i think it works.

    Reply
    1. Raimonda Palionyte

      I think social media, massive information always is the best way to rescue something or to collapse it. It is the most popular way to change situation to any side.

      Reply
  23. Gergye András

    Hi everyone,

    I would like to say some words about my ideas or rather we can call it suggestions. In Hungary we have problems with the attendance of the football matches. I think if we can do some promoting activities, some kind of “americanisation” for example, half-time shows or the players of the teams and the fandom could communicate directly and share each other toughts. Or the spectators could win some money with an easy game (for example he/she kick a penalty or aiming a target with the ball, etc.)
    If we could involve the team in the life of the city it could make more people intresting into watch the matches in the stadium, not just at home front of the television.

    Reply
  24. Denis

    Hi all,
    I would like to tell you about my idea. Like I told you, I am a basketball player and my ideas is connected with basketball.
    Almost every day I see girls playing basketball in woman basketball club “Željezničar”. On almost every game I see potencial, I see a lot of fans on stands, and on my oppinion thats the first step to success.
    Club has no adequate conditions, players does not have good equipment, and good training termines.
    On my opinion changing the club strategy, and education of club management with lot of bit of money, this club got a good future.
    My goal is to help the club by getting into club management, get good trainers for the young girls, get good sponsors and I think that will rejuvenate the club.

    Reply
  25. Sejla

    Hello everyone,

    Since I come from a small BiH state and still feel the consequences of war in every segment of life. He thinks the first problem in our country is the wishes of young people to progress, they have no idea, etc.
    I think that young people need to form clubs of associations etc. To raise awareness and raise sports and sports in this country at a higher level. There is a small amount of sports in BiH, which goes with the conditions of an athlete’s training process. The goal is to create ideas, make a move and move forward. No effort to win.

    Reply
  26. Alma

    Hi everyone

    I live in small country, Bosnia and Herzegovina. In that country, we have so many choices – but 70% of us do not know how to properly use it. You can play a lot of sports – started from the atlethics – base of all other sports, to the martial arts, ball games or some other activities. First problem in my country is that the main authorities do not want to share money and donations equally for top five sports in Bosnia. For example, football national team have the greatest attention, because football is the most popular sport which is displayed all around the world. I play karate for 15 years, and for the last 7 years I am member of national team of BiH, but for that 7 years, my national team did not have financial support from main autohorities., even if karate team of BiH won the most of trophies and medals on all competitions – Europeans, Worlds and other internationals.

    The first step – we can create association whose job will be to help professional athletes and their teams get to financial leaders and get their help. It is very important. The goverment, financial leaders and other sponsors will make marketing for themselvs only if they help our best players from less known and important sports. (example: martial arts – karate)

    Second – If they do not have enough money to help whole team, they have to make selection – the best of the bests, and with the fair play, without bribe or something unfair, they can give money or find sponsors for those athletes.

    Reply
  27. Justina Kraujunaite

    A good example in this case would be women’s basketball team which faces economical challenges because it depends on municipality’s decisions and how they distribute money.
    A possible solution to this – try to find more sponsors by promoting the team via the internet (Facebook, Instagram etc.).

    Reply
  28. Francesco Becchis

    I would to analyze this mark “One Way” is one of the most important manufacturers of sticks in nordic skiing.
    In this year One Way have tried to do also the ski, ski boots and other materials for nordic ski, but with these last materials the succes was not the same of the sticks.
    I don’t know why a very big brand name like One Way failed to do the other materials

    Reply
  29. Nikolaus

    Hi,
    my idea is to offer kids camps which include different sports. When i have a look at the offer of camps in Austria i only find sports camps which are focused on one sport. For example soccer camps, swim camps, mountainbike camps and so on. Most of the parents choose the sport which the kid is already doing for every week. So the kid plays soccer through the year and now the kid should plays soccer at the summer camp too…
    With my idea i want to offer children a bigger spectrum of sports at one single camp. For instance i offer a camp with 3 swim lessons, 3 mountainbike lessons, 3 gymnastic lessons and 3 lessons of playing adventure games. A variety of sport!

    Why am i planning this? In my point of view the maingoal for children at the age of 6 to 12 should be the body- and mindcontrol. With the variety of sport, children are able to reach that goal easily and with mch more fun!

    Niko

    Reply
  30. Furiák Gergő

    To create and manage an organization the most important for you to have enough money and you need a good idea. There is a diagram in the case of the organizations what shows you that the members take the largest role in upkeep almost every organization. This number is about 50%.
    So to create for example a sports club, you need reliable and well-to-do people who could help you with their personality and money. If you can, you can demand some money from the council or you can look around for another sponsor. Later, it could be a good idea to keep some introductory training for free to popularise your organization.

    Reply
    1. Justina Kraujunaite

      Yes, a good manager should know how to communicate and attract sponsors a.k.a. good people who have money. 🙂

      Reply
  31. Matyas Jokai

    Hi everyone!
    It is necessary to look throw the budget, cost structure. Reduce the costs of those which abolition wouldn’t result operational or economical problem. After the examination of the budget a well-planned loan could help the problem. It is a good way in the problem solving to look throw the available objects and devices if there is anything to sell. Other possibility is to find the way how to get other incomes and how much the process would cost (advertising).
    Regards,
    Matyas

    Reply
  32. Lisa

    I work partly in a MTB Club as a Kids Trainer. The Club invested quite something in rebuilding a little bike park on an area which is from the community where they are situated. They build new obstacles to have new parts for the track of a race they organise each year and for the members of the club to train. The biggest income how to refund the investment they have so far is the annual member fees (which aren’t that high) and the annual race, which in the same time also consumes a lot of money. So the actual profit is really small.
    My idea now is to organise workshops which are not only for the people of the Club, but to everybody who wants to join. The members of the Club would have the possibility to join for free or for a small prize (depending on the workshop) and all the other people would have to pay for it. Possible workshops would be: Bike repair, technical training for kids, for adults and for E-Bike riders, One-day bike trips etc.
    So far the Club provides some of these activities already, but only for the Club members. By making them open to everybody the bike park could be refinanced in a more profitable way. I would talk also to the local political associations for support of the workshops and for help to promote them on a bigger scale, not only for private persons, but also for firms.
    And their might be also the advantage of winning some people over to participate in the club and also to pass the passion of MTB further.

    Reply
  33. Zsófi Sárközy

    My idea is about the hungarian orienteering. As it isnt neither an olimpyc sport nor very well-known, they dont get many from the government. They have to look after sponsors, but to convince a firm, more marketing is needed. Now only smaller firms support this sport, mostly that from orienteers… So my idea is to work more about marketing.

    Reply
  34. Amar Čejvan

    Hi, I trained in Travnik F.C. for 10 years.
    I passed youth categories.This club was in the strongest league of Bosnia and Herzegovina,Premier League, now FCT competes in the first league of the Federation of Bosnia and Herzegovina,they are in a very bad fin. situation.One of the main reasons is the bad
    management of the club.The club simply does not look for ways to make progress.They are at the last position in the legue,and this is trick that only 200-400 people are visiting games.Naturally, marketing is falling and it is more difficult to promote the club.I see the solution is to change the management of the club,people who do not see progress.The other goal is to set up qualified trainers who will train young people to play one day for that club,also give the opportunity young players to play and lead the club into new victories Changing the club strategy would lead to big changes

    Reply
    1. Vid Persak

      Great idea¨Amar!

      Reply
  35. Vid Persak

    I would like to talk about my idea of creating a company that is maintaining and building the trails for mountain biking.
    I live in a area that is growing anc converting fast into mtb destination. Trails are growing and new ones are in building. But there is actually no company or a person in near (they are some from abroad) that could handle the big project like building the bike park trails. I would start the business with meeting the deferent people that are already involved into this kind of business. Than I would get together the group of potential coworkers and try to explain the project cost etc. I would go to the parks in our area show them an idea and try to convince them into cooperation.
    After all I would make it happen.
    Cheers Vid

    Reply
    1. Lisa

      I like your idea! MTB is a great sport and everybody can enjoy it.
      You said that a lot of trails are appearing in your area. Are they legal? I know the situation in Austria a bit and here it is pretty uncertain and in a juristic grey zone sometimes to build a new trail in the forest for example.

      BR Lisa

      Reply
  36. Teőke Ágoston

    I would like to describe a problem of the Hungarian professional football.
    In our first league the spectators number is constantly decreasing and most of the teams financial base is coming from the Hungarian Football Association not from the market or from investors. Our assosiation has tried to increase the number of the spectators in the past five years but even so it’s just getting worst. (In our country the football is not very enjoyable and to being a football fan is not a popular thing.) It’s because that is not in the club’s interest to attract previous and new fans to the stadium because our system not value the number of the fans. They get the same amount of money whether they are playing in a full or in an empty stadium. In my opinion it could be an indicator of our football’s growth to attract people to stadiums.

    The options to do it:
    My first idea is making regulation’s like teams should invest a part of their incomes (from the assosiation) to makeing good marketing strategy and actions to attract people like: better communication with the targeted audience, more social media activity, discounts like if you are a new supporter you can go in a cheaper price to your first five match, makeing promo videos before big battles, support family’s with cheaper thickets etc.
    My second idea that teams with just few supporter should consider the decision to make the matches free because it’s just more profitable for them because they could earn much more money of the catering than with tickets…

    Reply
  37. Jakub Maly

    Being in charge of a small club team, the financial turnover isn’t as big as in large major league teams, but the financial risks are quite similar. Most club team have their incomes from subventions, sponsoring, membership fees, and prize money. Some of these incomes are fairly stable, however some of them are dependent on the current success of the team. I think the biggest mistakes quite few clubs do is calculating their income based on a successful season. They simply take the risk of assuming that they will have a successful season and make a certain amount of income through prize money and success based subventions. As a club team in Austria, you’re technically not allowed to make profit, so you’re trying to spend the money that you made.
    However, a few challenges during the season, an illness of few players during the championship season, or something else can eliminate a significant amount of the result based income.
    To prevent this, I believe that the club has to secure most it’s money in fix, long term subventions that are independent on the short term results of the club, and focus primarily on the long term development of the club and its athletes. The club has to calculate its financial turnover based on a “best case- worst case” scenario and apply the appropriate average in its spending to avoid financial crisis at the end of the season.

    Reply
  38. Samira Tutundzic

    Hi,
    I would like to describe my club that I train in, it is Karate Club Champion. Karate is not famous as football or basketball, and everyone think that it is so ‘lame’ and not interesting. But first problem is the lack of support from my own country, they dont want to invest in fighting sports because it is not that famous. They are investing in sports and clubs that are not that successful as my club. And all money goes there and result is 0. My opinion is that if they organize money correctly, it would be enough for everyone. Not to push one sport but the others too. We dont go on many competitions because of the financial support that we dont have. And if they give us an opportunity we would make a big and important scores.

    Reply
  39. Massimo Sanna

    I bring my own personal experience of promoting youth tennis practice in a neighborhood with low income levels, the core will not be the economic business but to grow long-term interest in an elitist sport, at least in italy. The idea of doing business should not come to the aid. You will have to find the balance between costs and revenues in the right measures even through the use of crowfunding.
    The first approach will have to be with the schools, paying close attention to the communicative relationship with the institutes, presenting the initiative that is not based on economic interests but on development in the interest of a sport of difficult access for economic reasons.
    The process of communication both institutional and social channels will lead to open door openings, organizing free trials and communication sessions on methods and types of training, these initiatives will have to be programmed in the winter months. I live in Northern Italy, and outdoor tennis can only be practiced in the spring and summer months. Winter will then serve to create the human base for outdoor activities.
    In the months of outdoor practice, the aim is to increase the passion for tennis by young people involved, allowing to create an extended base of users for the winter, critical for structures as a period with management costs high

    Reply
  40. Marco

    My idea is about an international tennis tournament organization.
    Lot of times tournament directors have to find out a great way to make brands do sponsorship programs with them. most of the times this is very difficult but if you invest on the tournament facilities (es. recovery rooms, physiotherapists, stringers, complete ospitality) also good players will come and so fans will follow them too.
    in this way the tournament gains visibility and so sponsors too.

    Reply
  41. Göktuğ

    My idea is about the footballers in Turkey. For example Brazil makes a lot of money with the selling players to abroad. Turkey i think has a very big potential. At this point the most important thing i think soccer coaches which are at the younger ages. Especially in Turkey, there are so many talented young footballers, but there aren’t any well-educated soccer coaches. If i would have a chances or money i definitely set up a coach school. Because the young kids who plays football needs to learn fundemantal of the game. Of course coaches have to know these technics but they don’t know. If the coaches learn how to play football correctly then the kids could be grow up better as a footballers.

    Reply
  42. Žiga Papež

    Hello.

    I would like to analyze my hometown tennis club in which I was training more that 10 years.
    This club was one of the biggest, most modern, classy in the whole Slovenia. They were workig really well, coaches was real good proffessionals, all the courts were in good condition, they were preparing some great events every weekend. They made a lot of money and they were also investing it a lot, so thats why they were doing soo good with the money. After a few years, they just stoped to organize events, they said there coaches are too expensive and they fired them and so on… A lot of us tennis players start to looking for another club beacuse there were no proffesional tennis anymore, just recreational. After that even that guys realized that they dont want to play in tennis club where is no good tennis players to watch them, to learn from them and they left also. The club is now in bankruptcy.

    If they want to open a club again, they need to start witht the first strategy!

    With regards, Žiga

    Reply
    1. Tadej

      Yes žiga, thats right, no investment no future!

      Reply
  43. Sara

    My example is one of the sports club that I was working for. The club is pretty big and it is located in the main city center. It has 4 squash courts, fitness, table tennis and indoor golf. Club is opened now for the 3rd year. Their idea was that the club will work as a ” English premium club”, so only wealthy people could afford it. So their way of advertising was they hired 2 professional coaches from abroad and they invested a lot of money in it. So what happened after a year was that the club didn’t have enough clients to cover all the expenses every month.
    What is better at the start when you are opening club and you want to attract new clients, to have average coaches or the best and expensive coaches for your clients? And with average I don’t mean that coach is not good, he/she is just not famous and top 10 in the world.

    Reply
  44. Ina

    My idea is to create a own collection for sport clothes. I want to specialize on trailrunning and maybe in winter on skimountaineering. The feature of this collection should be the unique design in combination with high quality clothes made in Austria. A financial problem can be that there are a lot of brands für sport clothes, who are able to offer the customers a very cheap product. It would be important to calculate the prize, which the customers will have to pay at the end. One benefit could be that clothes for this sports are gernally more expensive than for sports like for example normally running or skiing.

    Reply
  45. Kristóf Németh

    I would like to write about a Hungarian club team. This team won the Hungarian third division. In the following year they were added to the second class and managed to keep together a significant part of the team. Next season I think they were very lucky, because they won this championship so they got up in the first division. The problems started with this. The team didn’t have:
    – a suitable stadium, so home matches had to play in leased stadiums quite far from their home.
    – properly trained players, so the team wasn’t successful.
    For these reasons, audience and sponsorship subsidies decreased significantly. The club was trying to improve with new coaches or players, but they didn’t get any results. At the end of season the management have made significant debit for stadium rent, travel costs and wages, and moreover they fell out from the first division. Due to the debts they could only start in the third division, but after one year they fall out from the third division too.
    In my oppinion, it would have been better to stay in the second class for a few years until club leadership creates the right material (development of the stadium and gym complex) and financial conditions for playing on a higher level/division. I think better to follow the next theory: go slowly, you are going away.

    Reply
  46. Tadej

    My example is going to be from sport organization who has sport recreation for preschool children (age 4 to 6) which i worked some time ago.

    When organization started with this recreation they managed to set agreement with school to rent their gym for free so that registration fee for parents wouldnt be so high. For some years everything went smoothly, economy went through because gym was free, fee was low(parents happy), organization only had to pay gym teachers. Then after 3 years school decided to start charging rent for the gym. Organization couldnt affort to pay rent herself so this meant that registration fee would have to rise. They set agreament with parents that they can proceed with recreation for kids only if parents all together pay for the rent. In the end only few parents apply their kids for recreation. They had to abandon recreation in that town due to circumstances.

    What could be possible solutions?
    Better advertisement for parents that recreation for kids is good for their health, so they would still register their kids to recreation?
    Get some sponsors from that town?

    Reply
  47. Bálint Szalánszki

    I always try to analyze the situations from my sport, football. It is a really complicated sport I think. Because a lot of things have to work together in a player’s life to succeed. After many years I had to realise that the most important thing is the relation with others from „higher-level”. The so-called career management has a main role in football nowadays. It is okay but in many of the cases these people are not interested about their players, their talents. They only want to see money from their career. So I decided earlier to create a management company with a new thinking method where the player’s career and well-being is in the first place.

    In this business we work with only a few person and professional because of the low budget. I reckon this thinking way what we follow is the right direction so I really believe in this company. To reach and have more players we have to have more scouts and football experts who are able to choose the right players for us. But this is hard for us to keep up the competiton with other management groups because they own most of these professionals and players. The solution could be a bank credit with low risk conditons. It could work in our country because football is supported by the state. And if we have the money we could be more efficient and break through the walls and have a fair race for players.

    Reply
    1. Žiga Papež

      Hello. Nice idea. This solution is probably the best. Keep up with the good work!

      Žiga

      Reply
  48. lizz

    I have the idea of a pool of specialists for whole austria and all kind of pro – sports in austria – no matter if winter or summersports, that offer services you need for high performance sports. That means a pool of coaches and physiotherapists and nutrition specialists with high level of knowledge working together and sharing there experinces. That means a pool of mental coaches and psychologist for personality needs…that offer services for young athlets for example – that have great talent and performance and succsess but feel lost in that huge world of high international sportsperformances with all this new attention going wild. That means media supervisors that help athlets how to work with the media. That means specialists in economics to help the athlets in financial questions….and that means a safty net for injured athlets that seeking for a come back or athlets out of shape that are fighting their way back.
    How to finance this pool: it should be a program supported by the state – in combination with the Olympic comity, BSO,…but also companies that sponsor this program in expectation to get the athlets back in their companies, when they are done with their sport – for examble as treenies, or offer them education or jops. Companies are open for motivated employies like athlets. So the program would be a closed circle not just for the companies but also for the state ,which is sponsoring in responibility to socity and is giving back healthier, more sport concious people to society. By the way this new sport awarness would motivate kids to start with sports and would bring new talents back to high performance sports. If parents would know, that their kids can expect good support in the activity they love, they wouls support it even more! To make a long story short – let´s support sport!! Cheers Lizz 🙂

    Reply
  49. Francesca

    Hi everyone,
    I would speak about typical situation Italian wrestling society. I feel lucky because my club is big, with a lot of people and I don’t spent money during the year for competition. They have a good plan of marketing and budget. I think this problem caused by less sport practice of wrestling. One possible solution is search a sponsor to contribute the sporting expenses and increase repayments by federation.

    Reply
    1. Luca Laurenzano

      Hi Francesca,
      How is organized your refund for the competition ? how your society make money beside the subscription?

      Luca

      Reply
      1. francesca

        Hi Luca,
        the federationd refund only the 20% at the society and so ramining must pay athletes or society. My society can pay for all because has a different sport other wrestling and has return to the economy.

        Francesca

        Reply
  50. Jure Lenarcic

    My idea or dream is the same for a very long time. I would love to make a project of building a big and modern whitewater course for canoe slalom races and for tourism. It would have to be design in a way like a football stadium is, with portable roof if possible. Beside racing it would also have to be attractive for tourism. We dont have something or even close to this in Slovenia and i think it would be very good project. The problem starts with a money. To build such thing you need at least 5 million euros if not more. The europe union would sure help but still you need a money to begin with. Kayak canoe federation dont have starting money so i would have to find some investors. Before money problem there is design problem, every design you have to pay a lot of money. There are a lot of obstacles, but maybe the biggest of them all is thinking of most Slovenian people – thats to much money, it is to big project you will never gonna made it. And with that it is really hard to start.

    Reply
  51. Verena

    I want to talk about my own cycling team that I might want to create in the future. It should be a club where female athletes have the financial stability to not having to work next to their professional sport. So the team needs to have a lot of good sponsors of course. Sometimes, teams are opening up and are not able to pay their riders at the end of the season because they are calculating things wrong or miss some parts where they need to spend money on. To not really having the knowledge of all the expenses, that’s the first risk. The other one would be, if you for example plan on making your own race in town, because it’s good advertising for your local sponsors that the whole team is racing in town- and you spend so much money on that event, that in the end the whole event is giving you less money than what you invested in it. So in fact, in the end the whole team is suffering from it and again- the riders might in worst case not be paid at the end of the year, because of lack of money.

    So the solution for it would be, to really have make yourself aware of all the expenses and money that will need to be spent over the year. You need to ask other teams, how much money they needed for what. Ideally get professional help- from people that really know about the topic of finance and economics. And for organizing an event- sometimes its better to make it less big, and really think and calculate better 10 times that saying yes to doing the event, even when you already know in advance that the event might not be good for the financial status of the team. So being honest to yourself if things are affordable is also important I’s say. Less is more sometimes.

    Reply
    1. Jure Lenarcic

      i like your idea and thinking for solution. Being true to your self is the first step of making any idea come into play!

      Reply
  52. Jakob

    I want to analyze my dream of having a gym for conditioning of pro Athletes. I see the biggest risk in this kind of business in small target group and even those groups are not regular (they are training outside their clubs for only like 2-3 months a year). Because I want to make a functional gym for base conditioning, injury prevention and rehab/regeneration, it has to be different as those commercial ones. But the problem is that this kind of fitness attract less people, but you need a mass of people to keep things in plus, since you can only compensate with price so much before it becomes too expensive. So to eliminate this risk of not having enough regular clients. I started thinking that in this kind of fitness you have a big open space where you do your workouts, like a hall. So, this space could be used for group workouts like aerobics, boot camps, yoga, etc. And that could compensate functional gym and still bring enough clients to keep things in plus.
    Still this is all in theory, if I can make a program suitable for both targeted groups, the risk is smaller.

    Reply
  53. Carina

    I want to write about a new athletic shoe company that wants to enter the shoe market. A big challenge in this business is that there are “big players” like Nike, Adidas, Puma, Brooks, New Balance,… who have almost all of the absolut market share.

    Poor financal and economical knowledge may result in just entering a market before you know enough about the environment in which you are operating. In this case the small shoe company might not take into account that the shoe market is already saturated. A good economical analysis would show that there is no need for a higher number of offers.
    In terms of financal planning it is essential to create a detailed business plan with all investments, expenditures and possible revenues to see whether it would be profitable or not.
    By proper planning risks can be minimized and it shows if the business idea you want to implement can be successful or not.

    Reply
  54. Marco Freda

    I would like to analyze the situation of amateurs soccer clubs from the particular aspect of injuries
    Every year, clubs spend a high amount of money for diagnose and rehabilitate injured players who suffers from muscular injuries caused by the wrong training load . In my opinion, all this can be avoided by tasking specialized professional figures able to establish training sessions aimed at preventing physical damage.

    Reply
    1. lizz

      Great idea! cheers lizz 🙂

      Reply
      1. lizz

        …the more you focus on your work quality and on prevention, the less money you need for rehab.

        Reply
  55. Mark Makrai

    My example is one of our plans to the future with my friends. We want to start a Futsal club, it’s a good opportunity but not easy. It depends on lot of things. It has to fit in a lot of criterion to get the financial support from the government, which is necessary to have if you want to be successful. It is also indispensable to get financial promoters who helps with money for commercials. We found a town which hasn’t got a futsal team and they have a sport hall, which they don’t really use, what is very unique nowadays. Our plan is to collaborate with a local school so the children can gets more sport activity and we can make our junior teams from the kids what is a key point in the operation of the enterprise and the biggest risk, cause without them it can’t work. We will have to calculate how much risk we can take, with the investments or how much gov. support we should applied to, how many teams we can set up.

    Reply
  56. Kiss Roland

    Hi Everyone,

    In Hungary thats a normal situation. But nowdays the Govermant will give the money all olimpics sports but the nor olimpics sport not too big finacier…. I saw the two ways. Becouse now Ido Taekwondo and I did Kick-boxing.

    The firs step if the club management will give us a cleaner financial overview. Thats the most importent if the govermant and the sponsors and athlete can check all transfers and financial moving.

    Second They need to aply legal and financial professionals. They can use the money regullary.

    Thanks your Attention.

    Reply
  57. Vilma

    imagine a sport club which is overcrowded – a new strainer started to work there and therefore more people started to attend the lessons. due to this success the club management decided to rent new sport hall and signed one year contract for the premises. Unfortunately, after some month some people who attended the training decided to stop it and therefore the club lost income and the need to have additional sport hall. despite the changed need the contract was signed for a year, so the club had to pay for the premise that he no longer needed.
    in this situation at first was taken a decision not properly evaluated – the risk of loosing people and it means loosing income was not evaluated. so first of all – do not make a decision to quickly. In addition to this, the sport club could looked for partners who might need a sport hall and share the hall renting fee, or the club could organize some open lessons for the people to invite them to learn more about the sport. moreover, the club could try to negotiate the signed contract to get some benefits or even terminate the contract.

    Reply
  58. Simone Fumero

    My father has been managing a dilettant sports company for several years now, since a very small company has no significant sponsors, and it is self-managing everything with the players’ share from the youth to the first team. Every year before starting, he calculates the risk factor, looking at whether he can pay the coaches of the various teams, not counting the annual installment fee that comes, so he can be sure to pay the staff even if he does not have hypothetically players.

    Reply
    1. Carina

      I also think that planning and thinking about possible scenarios is really important to calculate the risk!
      I’ve heard that businesses often work with scenarios and calculate based on “best case”, “realistic case” and “worst case” to be aware that one should not always just expect the best scenarios.

      Reply
  59. Alberto Franceschi

    Related to this assignment, personally I experienced a similar situation but without considering a start-up or sport club, simply in the organization process of a sport event. Along with 6 young student-athletes, we organized a sport event focused on coaching education, sport promotional activities and athletics competition. We faced several problems in collecting the resources needed to pay the event expenses. The common formula of creating sponsorship/partnership was not enough successful so we decided to create a different solution.
    Decision making and problem solving were the key factor along with our sport passion. We create a crowdfunding campaign for the event creating video, material and several contents in order to create an environment favorable for sport culture and young social involvement.
    At the end, the crowdfunding was successful and despite the low amount of sponsorship we run the event with a relevant international and local satisfaction.

    Reply
  60. Mateja

    Hello!
    My example is sports company which core product is providing the athletes (elite& age groupers) during the winter time a better and warmer environment for their trainings. Several time per year are organised training camps in nice and warm locations with great sports infrastructure connected with all needs of elite athletes.
    After three successful years of successful organising training camps the number of participants are going slightly down and new clients are not coming, so business and income are going down.
    Solution can be finding a new market with targeting families, children or friends of athletes and organising for them some sports activities, shorter trips and sightseeing tours around the location of training camps. Or just ensuring the baby care (a little garden, babysitters) for parents who want to have some free times for themselves or their sports activities.
    With higher numbers of participants it is possible to have lower prices (higher discounts) in accommodations or just higher standars of of accommodation for the same money.
    Consenquently the sports company will ensure higher income with a new niche market, low risk and low financial investment.

    Reply
  61. Viktoria

    My example for this assignment is a fictive one. It should just be an example of a case which may often happen in real business life.

    So let’s choose a personal training center as example.

    The case could be:
    The boss of the company searches for a room / place where to create a fitness studio or personal training studio. He/she invests money of his/her own and money from the bank for the equipment, the rent and the personal. The first period is quite successful. After some months the costs are way higher than the income. So after two years of quite low success he/she runs down the business.

    The problem could be:
    The boss and owner of the company didn’t choose the right place/location for the fitness studio. The competition there might be too big. The owner didn’t have a long-term idea and strategy to follow. The solution for him/her was to run down the business to don’t have risks and problems anymore.

    The solution could be:
    1. the boss need to make a solide and properly analysis of the market: analysis of the competition in general, analysis of the competition around this place/location, analysis of different fitness branches and lines of business
    2. the boss need to create a strategy including a vision, mission and goals. These must be divided into short-term and long-term goals to control the process and business. In general he/she needs to evaluate a USP for the business to make it unique and valueable.
    3. the boss need to accept some uncertainties for the future and some uncomfortable situation in order to be successful in the future.

    I think these 3 points are very important and crucial for every start-up and to have the right basics, which many companies may not have.

    Reply
    1. Norbert

      Very real example, Viktoria! 😉 What I read between your lines is (maybe pt 4) that is important to do “the Business” (analyses, Marketing, strategy, USPs, etc.) all the time – even if you are having good times and things seem to work alone. Like in sports – you need to maintain your top shape.

      Reply
    2. Lili

      I also agree with you, Victoria. You have written very clearly the “mandatory” tasks. Prior to launching a company, it is very important to determine the purpose, organization, and operation we want to achieve (including the environment, target group, competitors’ analysis). And it’s not enough to take about one or two months for this preparation period. To think carefully about the question, clarify our ideas, shape the implementation, and see the key points, we need enough time. But we often skip and / or shorten this period. And then there is a greater risk that our hopes will not come to the reality. If we follow the steps you have defined, we can significantly reduce the risk of starting businesses.

      Reply
  62. Norbert

    Let’s imagine a newly founded “sports centre“ which offers individual support including training, coaching, nutrition, therapy, regeneration, courses, events, etc. – everything that sportspeople need (and want). The main target group are amateurs and since there are plenty of other providers (independent and companies) in almost every area we are suffering from a small number of (new) clients. We have invested our money and use bank support to build up a solid infrastructure including a building, equipment, etc. and because of our athletic background our knowlegde is also top level.

    A possible solution without much financial or economic investments/knowledge could be to “think outside the box“ – meaning not to focus on existing sportspeople but rather take on indeed new athletes. For instance – we could look for companies that are planning to invest in corporate healthcare and start some action on a non-cash basis to use their reputation and network for a consequent growing of our services (and income).

    Another one could be to turn the focus on young people and (try to) lighten the low physical standard of our kids and really do a kind of a “daily lesson of gym“.

    Any other suggestions for our mission to make our vision of “a healthy generation“ come true?

    Reply
    1. Viktoria

      I like your example, because firstly, I thought of a similar one. Second, because your idea and your “thinking outside the box” is a strategy I endorse!

      I think many companies and firms make one big mistake: they don’t think outside the box and above all, they generate short-term ideas and projects.

      Reply
    2. Lili

      Hi Norbert,
      In the case you mentioned – the newly founded “sports center”, which offers individual support … – is a crucial question of location, transport, density of population, and, last but not least, office supply. If these points of view seem to be viable to the sports center, you should look at (successful) competitors in the neighborhood. First of all, it is very useful to learn their offerings and their prices, their season tickets system. These factors will reveal a lot about the people who can be addressed. These factors fundamentally affect the business opportunities of the sports center.

      Reply
    3. lizz

      Great thoughts! cheers lizz

      Reply
      1. lizz

        …I ment the idea of Norbert in building a healthier generation…cheers lizz

        Reply
  63. Lorenzo Zaccone

    I wanted to analize the case of the football society for which I play. I never agreed the fact that the ticket’price for the match it’s 10 euros because we aren’t professionals but amateur. I can’t believe that for some national cup’s matches of Torino FC that is in Serie A The price is the same!! The result is that obviously the stadiums are always empty (as it is fair to be at that price), and also who play suffers for this. Considering the receipts I think it would be far more productive than the entry cost less or even free and that the same collection was made through the catering service, without considering who plays and the show itself would enjoy beyond any say!

    Reply
    1. Vilma

      I totaly agree that to pay for a ticket the same price for both amateurs and professionals is not a good business decision. Amateur game could be used for promotion of the sport and additional services like catering and sports attributes could generate additional income. To sum up, amateur game would also generate profit and in addition to this would make the sport more attractive!

      Reply
    2. Lili

      Hi Lorenzo
      have you checked the mission statement of your club published on its homepage, what do they think what is their job? (Probably its vision statement is not public).It is possible that this statement is not clear enough for the club management to really know what service they offer and for whom. Spectators of an amateur club are mostly friends, family members, opponents who are happy to share the joy of a common experience. I fully agree with you that asking money for ticket at this amateur level only annoys the viewers, but at the same time its business outlook is negligible. Catering that enhances the common experience, however, gives many advantages in business as well.

      Reply
  64. ASHOK KUMAR

    I want to express my dream and first attempt it was one and half year earlier to begin with Fencing League in India (for National Level). I gave my presentation to some company owners regarding all about my ideas of organisation, management, financial involvements, technical aspects, matches, Number of team, Number of players and we had a discussion on it and they were agreed to buy or start with 8 teams in each weapon/event (as there are three events/weapon in fencing). There were few persons from federation also. so, it was like a joint venture. But later on I wasn’t catch-up with the term that is called “follow Up” and it resulted in no further progress. May be the persons from companies used to hold survey for financial risk or Investment-Returns/gains policy. This was my failure to turn the opportunity or my dream into reality.

    Now, 2 months earlier I got another chance with some businessman who is very interested to build on it and like my concept, but he wants to make it mega international event and assured me to get some more stake holders for it. I am supposed to invest no capital and also I am having not any to invest in, but the whole conduct idea/stage and planning, technical aspect, rules & regulation is of mine. There is big financial mobilization is require for such an mega event, We are going to hire professionals for accounts and Finance purpose and some of from event management also. Now I am gonna afraid of Financial Risk involvement for stake holders, there is an uncertainty in my mind when I am calculating Budget and values after going through
    Richard A Lambert’s video on “Finance and Accountancy” as there is an example of manager’s job two types extreme fixing of bottom line or not paying any attention fixing at very high line. This video give a real picture of awareness for the risk factors lies in entrepreneurship, and helps in strategy of Finance and Accountancy for a firm.

    I am also looking into the aspect of popularization of the event with positive media support because, future of this business relays on fame a lot. Vedio from TEDx Westmount: Hicham Amrani, How to deal with uncertainty, gives courage and it is giving clear distinctions for uncertainty: Real or Perceived, Doubt

    Reply
    1. Lili

      this is a great dream, a great challenge and a huge business!
      If I understand right, you’ve already found an “angel” investor who is willing to invest in your idea, but who wants to turn into an active partner as well. If you have already started a start-up, you have a greater chance of retaining the original concept than when a full capital comes from an investor (and not from bank). In this latter case, he is essentially in charge of business risk, he wants to talk about how to develop the company, he will increasingly give you operational tasks (as the real owner of the entrepreneurship, regardless to the original concept and its parent). Can you imagine a different form of financing, a different ownership structure?

      Reply
  65. martin

    id ike to take red ice Martigny for that assignment

    they started in the 3rd Division in swiss hockey and then moved up to the second Division
    they brought in big Sponsors and tried to compete with the top
    their Goal was to move up to the first Division but they had 2 Major Problems.
    Martigny is a small town and no mather how good they played there first couple of years the couldnt fill the rink and had low attendance so they bought some big names their last year payed big salaries same Output low attendance.

    that leads to their second Problem the spent Money and to many People had the power so there was no Control any more.

    the rest is history they had 2 Million dept and went bancrupt

    so in my opinion the could have become a great Organisation in the second Division and maybe from time to time get more fans in there Building instead they rushed it and wanted to jump to the big league.
    the Need of a new rink or a renovation of the old rink didnt help either.
    they had the Money so why not invest it in the future (infrastructure and so on) instead of expensive players

    Reply
    1. Vilma

      It seems that they only saw one goal-play in higher division. Unfortunately, this goal lead to bad decissions. It could be great idea to evaluate all risks – even the worst before you take action!

      Reply
  66. Jaka

    ESPN. It is a U.S.-based global cable and satellite sports television channel owned by The Walt Disney Company and Hearst Communications (80%,20%), established in 1979. We all heard about it at least once, right? So that is why you are probably asking why i choose it for this assignment. It is because from 2013 till 2017 they lost 12 million subscribers. They ruthlessly raised the cost of ESPN itself. Just a few cable channels get more than 2 dollars a month per cable subscriber. ESPN charges over 7 dollars a month per subscriber, and if you are also subscribed for other ESPN channels it sums up over 10 dollars per month which is quite expensive. We can also say that internet is damaging ESPN, because sometimes they were known for their show called “SportsCenter” where they put together highlights from “yesterday’s game. Nowadays you can easily find every highlight on youtube or Twitter.. They responded with laying off around 100 reporters, trying to move away from sport reporting. But as Sean Davis said “When your ship is sinking, tossing a few deck chairs over the side isn’t going to accomplish much”. I agree with that, so i think they will have to find another solution, maybe lower the price for broadcast or not to pay massive long-term fixed costs for the right to air professional sports events. The basic problem is that it pays too much for content and costs too much for consumers. Consumers also said that when they wanted to watch sports they clicked over to ESPN but they got everything but sports.

    They still broadcast some of most important leagues like NBA and NFL and also college football playoffs in US. And that is why they still remains profitable, but they are no longer the reliable cash cow for Disney that they once were. I think that they made some poor financial decisions which led them to some sort of crisis. Don’t get me wrong, they still earn a huge amounts of money but they could earn immensely more.

    Reply
  67. Rozsnyai-Kovács Aletta

    My example would be a supplement company, called Body Fortress, who (next to many other brands) used protein spiking: an act to increase their profit margin by adding cheaper ingredients while fooling the lab test for protein. However about a few years ago after some testing they were exposed and sued, therefore their incomes drastically decreased. Their management mistake is kind of obvious at this point, the company should have thought of the risk that their products would be recalled by Food and Drug Administration, instead of wanting to make a significant amount of money very quickly.

    Reply
    1. Lorenzo Zaccone

      I completely agree with you analysis Aletta, I also think that try to earn at the expense of people’s health is shameful so I think it’s right they’ve got what they deserve!

      Reply
      1. Lorenzo Zaccone

        with your analysis * sorry!

        Reply
  68. Gianpiero

    My example is a basket club for which I’ve worked some time ago.
    The team in the previous year won the championship, so it reached a higher championship with further distances but also a higher competitivity level of play (in which none of the players have been played).
    The management chose to reward economically the team that reached the result (for gratitude) and hire only one player for the new category.
    Unfortunately the only new player injured himself very soon, it was impossible to add new players because the society had no money and so, at the end of the season, the team moved back to the lower level.
    Maybe was better compleletly rebuild the team for the new season with new players already ready for the new championship and also try to ask something more to the sponsors before the start of the season, in order to have an “extra budget” to be used in case of emergency or to be used immediately for the roster.

    Reply
  69. Amela

    I would like to write about the Lubiana hokey club Olimpia, that is facing hard times because of the lack of financial, marketing and economics knowledge. In most local sports clubs the main and most common problem is the financial exhaustion and the advantage the management is taking for their own enrichment, the exploitation, corruption of the main actors that are employed there. In this particular case there were taken many wrong decisions that increased the club’s debt- buying foreign players that didn’t bring the expected results, for example. The club started owning money to players, so they started leaving the club. Sponsors also left the club. Because of all that, the players that remained were not motivated to make good results and it was really hard for them to even train in these conditions and atmosphere.I see the solution in a more active role of the city management of Lubiana, gain more “small sponsors” because nowdays it is hard to get like 200.000€ from one sponsor, but is easier to make a deal for less, like 1.000 or 5.000€ and have several sponsors instead of only one. All the energy should be invested in the young slovenian players and attract new ones for the future with a great marketing strategy that will make this sport more popular and bring more viewers to matches.

    Reply
    1. Jaka

      I totally agree with you Amela. But i also see another solution here. You already said that club should invest in young Slovenian players, i agree with that, but instead of buying foreign ones the club should raise and make good players and than sell them abroad and get money from foreign clubs which are obviously richer. That, i think is a win win situation. That is my opinion because Slovenian league is not that strong, and i think it is extremely hard for any Slovenian club to become as rich as some foreign clubs. Maybe rich is not the right word but i hope you understood me.

      Reply
      1. martin

        i agree too but jaka the Problem in hockey is there is no Transfer fee so the Players only help you if you get them up from the Juniors and then give them Long term contracts which they wont sign because they wanna Play in a bigger league and make more Money.
        but youre right the ones that arent good enough to be top shots abroad and are still good enough for the Team can help you.

        Reply
        1. Norbert

          Interesting case – can be transferred to many other sports somehow, I guess. You already mentioned it but I think it is really important to define what and where you want to go – in short-, medium- and longterm view. Thus, this Mission and Vision-staff is not that unimportant. What would it be in your opinion for the Club? Realistic?

          Reply
  70. Jonathan

    Calculating management risk the purpose of every organisation or business is to make profit and established well in the long run.

    Management risk is know as many cases poor decisions or decisions made by management for the benefit of the management

    result.In business organisations like Puma,nike or adidas this business organisation they set up a capital market in the process

    of securing the market within the long range of time.I will give a brief example of myself in the year 2011 we set up a football school

    for youth in Poland we name it Academy Los Puma.Before we open the academy we made research we made sure everything

    was in place in terms of equipment for training the football stadium,coaches,trainers even sponsors from Mcdonald.we put a

    serious advertisement in the city bill boards you name it.But one thing we did not put into consideration was the RISK of making

    Business in that city the second thing is the environment situation of the city,and the third is the financial and economic situation

    of the city.this are the risk we failed to put into calculations before we decided to open our academy.My conclusion is, the

    possible solution to calculate management risk is to make budget set out a capital market which will see the management

    for a long period of time.

    Reply
  71. Florian Schabereiter

    Hey Jutta!
    I always check the material of the new week at Sunday evening/night because this point of time is the one with the highes probability of having time. Than I have the possibility to do the new material completely focused. It´s easier for me when I have the time to sit some hours and going threw the material in one instead of Monday a bit Thuesday nothing and maybe Wednesday a bit. So It´s easier for me to draw lines and connect it with prior learning material or the reality.
    Usually before my season starts which means autumn, I should have the most time at Sunday evening/night.

    Reply
    1. Natasa Sfiri

      That’s a good time management you have Florian! It is nice to have such organised learners like you in the group! 🙂

      Reply
  72. Andrea Regis

    First of all, I have to say that I have not completely understood what it supposed to do in this homework.
    SO, I apologise if I will not do the right thing.
    What I am writing now is about Decathlon, the company who is one of the leader in the sport clothes.
    The starting of the company has been in 1976, with the idea of a sport shop in which the costumers could take the different objects of different marks.
    The switch is arrived 10 years later, with the starting of the own production with the brand of Decathlon.
    The other big step has been done with the introduction of brands who reflects the ideas of Decathlon (one is the the protection of the environment): the costumers know today that if they want at Decathlon a swim cloth, the brand will be Nabaiji, or if they want something for the running, the brand will be Kalenji.
    Low price and a medium quality is the key of the bis succes of Decathlon.
    I’m a professions, and it’s impossible for me to but something for my competition at Decathlon (I will go on Mizuno, Adidas, Underarmour), but the biggest part of the costumers, are not professions! they have to have a good product, with low price, and for this Decathlon is perfect!
    I think that financially, Decathlon is really strong: I’m not inside their business plan, but they never failed and in the last years, they are always being bigger. This is a sign of progress in my opinion.

    Reply
    1. Marc

      Hi Andrea,
      I think Decathlon is nowadays a model company and the nightmare of their competitors. They are innovative, they adapt consequently, and the online shop is state of the art. I cannot see a weakness of Decathlon or a reason why they will fail in future.

      Reply
    2. Natasa Sfiri

      Dear Andrea,

      Your contribution is very good, but I think you are taking a different approach. Instead of dealing with an organisation that is facing financial difficulties and analysing the finacial risks they did not consider, you analyse what a successful company is doing, so that they do not have finacial difficulties.
      I will ask Lily to give you some feedback as well.
      Regards,
      Natasa

      Reply
    3. Lili

      I agree with most of the decathlon analysis. However, I do not go on analyze this company’s or any others’ success which have been operating on the market for decades. Considering our MOOC-approach it is important to focus on our own newly established (or desired) venture and try to create its mission and vision. Because we want to operate our business as such a successful company as Decathlon is. I’m trying to turn our group back to the starting point 

      Reply
      1. Andrea Regis

        So, I think I was right at the beginning, saying that I haven’t understood 100% this homework.
        Sorry, but I have to ask again what is supposed to do here.
        I don’t know any sport organisation with financial problems. I know bigger reality with more possibilities of investments and littler reality of sport organisation, with no chances of investments.
        The only thing I can think about in this moment, about the littler reality is that using a free channel to promote itself is the best goal to achieve. Today Twitter, Facebook, Instagram are the easyest way everyone has to promote for free their company?sport organisation.
        If the littler reality doesn’t have money for spot on the paper, innovations, or whatever useful, social media is the good start to have an hope of a better business.
        Being able to “sell yourself”(as a personal trainer for example), or a product on the social medias, it’s a good starting point.

        Reply
  73. Marc

    To me a sports related organization is either a sports club a federation, but also a corporation, which produces sports equipment. The first company that comes to my mind is NIKE and the sweatshop crises, but also Reebok, the sports apparel manufacturer, faced an economical and financial crisis in the end of the eighties. The latter one gained market leadership during the aerobic and fitness boom by providing fitness products. But customer preferences changed, the aerobic and fitness boom of the eighties ended, and Reebok lost 50% of its market share sliding into an economic and financial crisis. The situation required a change and Reebok started to produce sports apparel and sports shoes. They sponsored NBA (basketball), NFL (football), NHL (ice hockey) and MLB (baseball), but also tennis stars like Venus Williams. After restructuring the organization into 5 divisions with different brands, the company was back on the track.
    So, management shouldn’t rely only on one product, even if it is a cash cow. A diversified product portfolio balances the risk, Reebok realized this (late) after the crises. A modern globalized business environment makes it necessary to permanently adapt and try out new innovative products, to be the first in a new market. To avoid typical management mistakes, it is important to listen to internal analysts and to be sensitive to present and future trends. A manager should be near the market and have a clear vision of future developments.

    Reply
  74. Gottfried Eisenberger

    My example for this Assignment ist SportsDirect. SportsDirect entered the Austrian Market in 2013 by taking over Sports Eybl and Sport Experts stores. They converted the high-quality stores into cheap, low quality sports articles stores. This conversion did not work the way they wanted it to work. I guess Austria was the wrong market for these kinds of cheap goods. Sports Direct has since been writing red numbers and has not been able to establish a good position on the Austrian Sports Market. They have had to close many of their locations and make way for other, more successful Sports brands.
    So SportsDirect is definitely a company with poor financial and economic knowledge of the Austrian Market.

    Do you guys like shopping at Sports Direct? Do you think the things you buy there are good quality?

    Reply
    1. Florian Schabereiter

      Hi Gottfried!

      Very good analysis! I share your opinion about Sports Direct. Well, I thinks they have good quality products too – but I don´t like shopping there. It makes me feel like I´m in a dollar shop…

      Reply
  75. Florian Schabereiter

    One organization faced with economical challenges is the Norwegian ski federation. Nowadays the federation has a good financial system and background. The do well – but if you look back in the cronies you can find a ski federation suffering from financial problems. Why?

    In the olympic year of 1994 Norway, exactly Lillehammer, was the host city for this mega event. To raise the motivation for good results the national ski federation set a very high reward for (gold) medals. At the end Norway got the 2nd place behind Russia with 26 medals (10 of them were gold ones). This was a very good result – especially as a host nation. The drawback of it was that they had to give a very high amount of rewards (much higher than expected) to the athletes which brought the federation into financial crisis. I guess they have been insolvency too.

    In my opinion this results because they put an idea directly into reality without thinking of future consequences. They did not think of what it might cost to get a lot of medals. As the followed insolvency showed you cannot´t life or work over your capabilities – neither in sports. But it seems that they learned from it because today it femmes that they are doing financially good.

    A solution could have been accounting. They could have calculated/projected the “best case” (which is in the financially point of view the worst) and the “realistic case”. Even if the probability of winning such an amount of medals is very low, you have to think a bout it and of all consequences within your current strategy. After that you have some numbers to look on it and may find a compromise or another strategy… Projecting and thinking of the consequences would be a good solution I would say!

    Reply
    1. Florian Schabereiter

      sorry for my bad vocabulary -> “If you look back in the history” instead of “conies”

      Reply
    2. Jutta Pauschenwein (Post author)

      Wow Florian, you’re the first to start week 4. How did you realize that the new material was already online yesterday night? Bye, Jutta

      Reply
      1. Florian Schabereiter

        Hey Jutta!
        I always check the material of the new week at Sunday evening/night because this point of time is the one with the highes probability of having time. Than I have the possibility to do the new material completely focused. It´s easier for me when I have the time to sit some hours and going threw the material in one instead of Monday a bit Thuesday nothing and maybe Wednesday a bit. So It´s easier for me to draw lines and connect it with prior learning material or the reality.
        Usually before my season starts which means autumn, I should have the most time at Sunday evening/night.

        Reply
        1. Jutta Pauschenwein (Post author)

          Ah, thank you for your explanation. I love Sunday nights as well – it’s time to look back to the last week and forward to the new one 🙂

          Reply

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