BLL01010492344 : Journal of Sport Management Champaign, IL : Human Kinetics - Management Assignment Help

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A Framework for the Analysis of Strategy in Nonprofit Sport Organizations

In order to anticipate changes and challenges in their environments, sport organizations must formulate strategies. The purpose of this paper is to develop a framework for the study of strategy formulation in nonprofit sport organizations. Based predominantly on MacMillan's (1983) work on the nonprofit sector, and using Canadian national sport organizations as an illustration, this study identified several strategic imperatives to uncover the types of strategies that could be undertaken by nonprofit sport organizations. The imperatives were grouped into two dimensions: program attractiveness and competitive position. Under program attractiveness, the following imperatives were considered: "fundability," size of client base, volunteer appeal, and support group appeal. The dimension of competitive position included the imperatives of equipment costs and affiliation fees. The two dimensions were juxtaposed on a matrix to produce four strategic types: enhancers, innovators, refiners, and explorers. The characteristics of these types and their implications for nonprofit sport organizations are discussed. A number of factors influence the success of any organization, but it is generally acknowledged that the development of a viable strategy is one of the most important (Miles & Snow, 1978; Mintzberg, 1987). The formulation and use of organizational strategies are associated with clearer objectives, better guidelines for employees, improved organizational performance, and an enhanced ability to anticipate and respond to environmental changes (Das, 1990). Although there is a large amount of literature on the topic of organizational strategy, the vast majority of this work has focused on organizations whose primary goals are to make profits (cf. Ansoff, 1965; Chandler, 1962; Miles & Snow, 1978; Miller, 1987, 1990; Porter, 1980, 1985). As Higgins and Vincze (1989) suggest, "Research and analyses based on observation of nonprofit organizations are exceedingly limited. Clearly, they differ from profit-making organizations in many respects, and these differences must be taken into account when Lucie Thibault is with the School of Human Kinetics, University of Ottawa, 125 University Private, Ottawa, ON, Canada KIN 6N5. Trevor Slack is with the Department of Physical Education and Sport Studies, University of Alberta. Bob Hinings is with the Department of Organizational Analysis, University of Alberta. Brought to you by BRITISH LIBRARY | Downloaded 12/10/19 12:21 PM UTC Supplied by the British Library 10 Dec 2019, 12:24 (GMT) 26 Thibault, Slack, and Hinings one analyzes their strategies" (p. 347). In essence, the context in which nonprofit groups operate is different from the context of profit-oriented organizations. Thus, nonprofit organizations do not necessarily "strategize" in the same manner as organizations whose goals are primarily profit oriented. For example, in addition to securing dividends, profit-oriented organizations may have as their objectives to increase their profit margins, to increase their market shares, to be the leaders in their competitive domains, or to capture new market segments (cf. Porter, 1980, 1985, 1987). These priorities may be problematic when one is studying strategy formulation and implementation in nonprofit organizations, because the goals and objectives of these organizations usually focus on providing services and programs, not on making profits (Drucker, 1990). When nonprofit administrators develop strategies, their purposes are generally very different than those of profitoriented organizations. Most nonprofit organizations do not have extensive histories of involvement in strategy formulation (Bryson, 1988; Schendel & Hofer, 1979). One of the major reasons for this lack of involvement has been the organizations' focus on survival. As MacMillan (1983) suggests, nonprofit organizations have been concerned primarily with their survival because of the limited funds available to them. Consequently, these organizations have tended to focus on their immediate circumstances rather than on long-term initiatives. Grayson and Tompkins (1984) called this focus "annualitis, the myopic preoccupation with plans and activities for the next year, but minimal regard for long term strategic implications or opportunities" (p. 137).

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