OBJECTIVES
As a person with knowledge of the Olympic Games, the author has always brought up to his superiors the viability of strategy formation regarding the analysis of this topic and at times fails to understand the reasons or logic behind certain strategic implementations imposed on it.
By delving into this project paper, the author intends to have better insights into how the Olympic Games are thought up, formulated and then imparted down into the respective hosting country. The author hopes to have an in-depth understanding as to how the establishment of the Olympic Games enables countries all over the world to compete effectively and profitably in sports where competition is extremely intense.
In order to reinforce the learning objectives, two key focal issues were focussed upon i.e. innovation and diversity. Innovation was discussed with regard to the Olympic Games where it was renowned for its developmental capabilities to constantly innovate. Diversity came under strategic thinking and formation as the author considered the diverse culture, political climate, economic surroundings, social environment, technological settings, government policies and legal systems in order to better understand the issues being discussed.
EXECUTIVE BRIEF
This essay utilized the Olympic Games for 5 countries (upcoming 2008 Beijing, 2004 Athens, 2000 Sydney, 1996 Atlanta and 1992 Barcelona) as the models to review their past and present impacts, origins, economic and sustainability issues and how they dealt with critical situations. From the analysis, key trends in the Olympic Games for 5 countries were then identified, how they worked and their effectiveness in dealing with critical situations was ascertained. The paper then moved on to assess these Olympic Games with regard to their suitability to critical situations, during which the internal capabilities of these Olympic Games in relation to the strategy being followed by the hosting countries were determined also. An overall analysis of the performance and effectiveness of the Olympic Games for 5 countries was also conducted to assess and compare the capabilities of these Olympic Games with those of others. Gaps in the Olympic Games and hosting environment were then identified.
Finally, several choices of strategies to improve the hosting of the Olympic Games for China as effective means in critical situations were recommended and evaluated in terms of appropriateness to the issues reviewed, feasibility in carrying out the options and acceptability within the key stakeholders and decision makers. Several key implementation issues related to managing strategic change were also addressed as well.
INTRODUCTION
The Olympic Games pertain to the international sports festival that occurs every four years and composed of the summer and winter sporting events. Because of its international stature, the management of such a gigantic sports event requires the hosting country to have a system that can be efficient and effective in terms of the implementation of the policies and tasks necessary to satisfy the needs of the athletes and all of the participants. The hosting of the Olympic Games focuses on the careful management of the processes involved in making the playing venues safe and enjoyable for everybody especially for the athletes.
More often than not, small and relatively underdeveloped countries don’t really have the capabilities to host the Olympic Games. Instead, these countries engage in activities that issue their support for the Olympic Games. These activities include the sending of competitive athletes as well as experienced and well-respected umpires and referees.
However, the Olympic Games deal with all operations done within the hosting country in order to make it successful. Activities such as the management of resources, the control of advertising and media coverage, logistics and evaluations are often related with the management of the Olympic Games. A great deal of emphasis lies on the efficiency and effectiveness of processes. Therefore, the Olympic Games include the analysis and management of internal processes.
BEIJING OLYMPICS 2008
The 29th Olympic Games will be hosted by Beijing, China from August 8, 2008 to August 24, 2008. The city of Beijing won on the bidding to host the 2008 Olympics on July 13, 2001 against other powerful and highly industrialized cities including Paris in France.
Preparations
The organizing committee of the 29th Olympic Games has assigned workers that will have responsibilities in communications, recordkeeping as well as operations scheduling. The management team of the 29th Olympic Games is subdivided into key personnel.
Cargo and freight agents. These people track cargo and freight shipments with connection to the 29th Olympic Games. They may come from airlines, terminals or from shipping docks. They are in charge of keeping the records of missing and destroyed sports items as well as its excess supplies. These people are able to sort the numerous cargos based on their destinations. They also establish payment scheduling with sports agents and arrange the pickup schedule and delivery of freight.
Couriers and messengers. These people are assigned to deliver important business documents and packages of the 29th Olympic Games to other countries and their representatives. They keep records of deliveries and get the recipient’s signature.
Production, planning, and expediting clerks. These people do the coordination of the flow of information, work as well as the materials needed in the hosting of the 29th Olympic Games. These are done usually on a production or work schedule basis. They also the gathering of critical information for reports on, for example, the progress of work and problems encountered in the manufacturing of the new playing venues. They are also scheduling the shipments of sports utilities, costs estimation, and inventories of sports items.
Shipping, receiving, and traffic clerks. These people are in charge of tracking all shipments of sports items being transferred among businesses, suppliers, and customers. Shipping clerks assemble and ship merchandise of sports items and their ingredients. Receiving clerks do the verification and recording of information on incoming merchandise. Traffic clerks do the recording of the destination and costs of all incoming and outgoing sports items shipments.
Stock clerks and order fillers. These people are in charge of receiving and the storage of the sports items as well as the maintenance and distribution of inventories. These inventories may include sports merchandises, supplies, or even ingredients. They may perform all of the abovementioned tasks and even those commonly handled by shipping and receiving clerks.
Marketing and Promotional Campaigns
The organizers of the Beijing Olympics issued a press release regarding the launching of the 29th Olympic Games, but other methods including Internet releases were also conducted. However, in order for these tools and techniques to be effectively utilized by the media, they must be able to generate a great interest from the public. For this to happen, the organizers of the 29th Olympic Games manipulated the press release in order to be a perfect match to the public. The organizers of the 29th Olympic Games believed that the most successful publicity releases are often related to topics that the general public can easily relate to.
Publicity is a term that is closely related to public relations. While public relations refers to the proper management of all means of communication among the organization and the people involved, publicity, on the other hand, is the careful management of a product or service’s means of communication between the organization and the general public. Therefore, it is basically an informative process. However, its main objective is the promotion of products and services being offered by an organization. Thus, a publicity plan is being made along the process in order to obtain excellent press coverage for the organization’s products.
The advantages of the publicity programs made by the organizers of the 29th Olympic Games include having low costs, and its credibility. New technologies such as the Internet and convergence are gradually changing the cost-structure. The disadvantages include the lack of control over how the releases will be used, and the accumulation of frustration regarding the low percentage of releases that are being accepted by the media.
ATHENS OLYMPICS 2004
The 28th Olympic Games was hosted by Athens, Greece, over a period of 17 days from August 13 to August 29, 2004. The city of Athens won on the bidding to host the 2004 Olympics on September 5, 1997 against other powerful and highly industrialized cities including Rome in Italy. A total of 11,099 athletes from 202 countries participated in the 28th Olympic Games, with the US, China and Russia topping the medal tally boards.
Preparations
Planning was a necessary function within the 28th Olympic Games. In the Olympic Games this process is often very difficult because of the fast rate of change and the occurrences of unplanned events. The organizers of the 28th Olympic Games used several methodologies depending on the rate of demand and the price of the tickets. Nevertheless, the objectives of the organizers of the 28th Olympic Games for every transaction did not change: efficiency and effectiveness.
Planning was implemented by the organizers of the 28th Olympic Games in order for its activities and resources to be coordinated over time. This enabled the organizers of the 28th Olympic Games to achieve its goals with minimal resource utilization. Planning also enabled the organizers of the 28th Olympic Games to monitor the progress of their plans at regular intervals and maintain their control over operations. Planning within the 28th Olympic Games involved four elements: scheduling, labor planning, equipment planning, and cost planning.
- Scheduling involved the specification of the beginning, the length or the duration, and end of the planned activities.
- Labor planning involved allocating the necessary personnel and delegation of responsibilities and resources
- Equipment planning involved identifying the types and needs in terms of equipments.
- Cost planning involved determining the costs and the possibility of their occurrence.
Marketing and Promotional Campaigns
In a general sense, advertising was utilized by the organizers of the 28th Olympic Games to be able to impart to the public the existence of such a spectacular sporting event in Athens. In a way, advertising was also able to provide critical information regarding the 28th Olympic Games to the public. Since the advertising campaigns for the 28th Olympic Games were achieved effectively, this led to an increased demand for its media coverage.
Advertising refers to the paid promotion of goods and services through a sponsoring organization or company. While marketing has the objective to choose markets that have the capacity to purchase a product, advertising, on the other hand, is the paid communication through which relevant information about the product is conveyed to potential consumers.
There were three main objectives of advertisements for the 28th Olympic Games: (1) conveying relevant information regarding the 28th Olympic Games; (2) persuading the public to support the 28th Olympic Games; and, (3) keep the 28th Olympic Games under the watchful eyes of the public. The success of the advertising campaigns for the 28th Olympic Games was because of the mix of the elements of all three objectives. The advertisements for the 28th Olympic Games included informative, institutional and persuasive ads.
SYDNEY OLYMPICS 2000
The 27th Olympic Games was hosted by Sydney, Australia, over a period of 16 days from September 15 to October 1, 2000. Sydney won on the bidding to host the 2000 Olympics on September 23, 1993 against other powerful and highly industrialized cities including Berlin in Germany and Beijing, China. A total of 10,651 athletes from 199 countries participated in the 27th Olympic Games, with the US, China and Russia topping the medal tally boards.
Preparations
The occurrence of research within the 27th Olympic Games reflected the growing difficulty in its management that required the effective use of valuable resources such as money, materials, equipments, and people. This is the reason why research analysis was done by the organizers of 27th Olympic Games in order to determine the most effective ways to coordinate these resources through the application of analytical methods derived from fields of studies such as mathematics, science, and engineering.
Through this process, problems related to the hosting of the 27th Olympic Games were solved in different ways and alternative solutions were then relayed to the organizers. The organizers then selected the appropriate course of action in line with the goals of the 27th Olympic Games. More often than not, research analysis was concerned with complicated issues such as top-level strategy, resource allocation, designing of production facilities and systems, pricing and the analysis of large databases. Research analysis actually may vary according to the structures and philosophy of the event. But in the case of the 27th Olympic Games, it centralized research analysis in one department.
Marketing and Promotional Campaigns
The existence of Internet and the continued revolution in the world of Information Technology were certainly positive signs for the blossoming of many new advertising opportunities for the 27th Olympic Games. For instance, Popup ads and email ads started to invade the Internet 2 years prior to the start of the 27th Olympic Games. Most advertising firms in Australia also started to exert efforts to make their advertisements appealing to the public.
ATLANTA OLYMPICS 1996
The 26th Olympic Games was hosted by Atlanta, Georgia in the US over a period of 16 days from July 19 to August 4, 1996. Atlanta won on the bidding to host the 1996 Olympics on September 1990 against other powerful and highly industrialized cities including Athens in Greece and Melbourne, Australia. A total of 10,320 athletes from 197 countries participated in the 26th Olympic Games, with the US, Germany and Russia topping the medal tally boards.
Preparations
The organizers of the 26th Olympic Games determined the best ways to utilize its basic factors of production. These resources include the people, materials, information, and energy needed in the hosting of the 26th Olympic Games. Engineering was the bridge that linked the goals of the organizers of the 26th Olympic Games and operational performance. They were concerned with the increase in productivity through the proper management of people and choosing the appropriate methods of organization.
The organizers of the 26th Olympic Games performed the careful analysis and inspection of the 26th Olympic Games’ products, playing venues and their safety. In this process, they made use of various mathematical methods in its operations research to meet the requirements. They also developed systems of management control in order to aid in the planning of finances and cost analysis. These systems were eventually subjected to improvements for the effective distribution of Olympic services.
The organizers of the 26th Olympic Games performed the tedious task of selecting which among the various playing venue locations had the best combination of raw materials availability and costs. This time, the organizers made use of computers for simulations and robots for controlling various activities and devices. They also were in charge of the development of administration systems and programs for evaluation of participating athletes. The organizers of the 26th Olympic Games had enough flexibility to move into management positions.
Marketing and Promotional Campaigns
Sales were an important part of the marketing and promotional campaigns for the 26th Olympic Games. The most common approach to personal selling of the tickets for the 26th Olympic Games pertained to a systematic process of continuous yet measurable methods in which the person selling described the value of the ticket in such a way that the buyer was able to visualize how to benefit from personally seeing the 26th Olympic Games in an economic way. Selling was basically a part of the implementation procedures of marketing for the 26th Olympic Games.
The continued interrogation in order to understand the goal of the 26th Olympic Games as well as the establishment of a set of feasible solutions by conveying the necessary information that convinces a buyer to achieve his goal at a reasonable cost was the main responsibility of the marketing team of the 26th Olympic Games. Aside from this, it was also the responsibility of the marketing team to be able to know the needs and satisfy the wants of the public effectively, and therefore convert possible customers into actual and reliable ones.
BARCELONA OLYMPICS 1992
The 25th Olympic Games was hosted by Barcelona, Spain over a period of 15 days from July 25 to August 9, 1992. Barcelona won on the bidding to host the 1992 Olympics on October 1986 against other powerful and highly industrialized cities including Amsterdam, Netherlands. A total of 9,956 athletes from 169 countries participated in the 25th Olympic Games, with the Unified Team (Soviet), US, and Germany topping the medal tally boards.
Preparations
It is interesting to know the basic innate characteristics of the organizing team of the 25th Olympic Games that resulted in its success.
· Mental Stability
Mental stability was crucial especially in the pursuit of the correct decision as well as the management and development of the processes accompanying it. It was important for the organizing team of the 25th Olympic Games to remain updated with the latest developments to be able to stay aware and knowledgeable in all issues.
· Performance and Credibility
The production of the best outputs came as a result of well-funded research management and development activities. The strong performance of the 25th Olympic Games in the market could also be linked to the effective strategic planning and human resource mobilization of the organizers. Thus, the organizers and the country’s credibility increased as the 25th Olympic Games progressed.
· Planning and Strategy Formation Capabilities
Planning and strategy formation created the need for the organizers of the 25th Olympic Games to become aggressive especially in the area of marketing. This was because the access to strong media channels was critical for the success of the 25th Olympic Games.
· Decision-making abilities.
Upon arriving at the correct decision or choice, the organizers of the 25th Olympic Games now gained confidence in their ability to make critical decisions or choices especially when the integrity of the 25th Olympic Games was on the line. Thus, the organizers of the 25th Olympic Games now searched for even more challenges and opportunities where they could further enhance their decision-making abilities regarding the 25th Olympic Games.
· Holistic Mindset of Issues
Through the exposure to various puzzling issues in the 25th Olympic Games, the organizers along the process were able to develop a holistic mindset regarding the issues surrounding the 25th Olympic Games. The organizers now became keen observers of the truths and lies surrounding the issues being tackled, instead of relying on mere hearsays. The continuous pursuit of the truth behind the puzzling issues enabled the organizers of the 25th Olympic Games to consistently practice and enhance a healthy and holistic mindset which made it difficult for detractors to give influence. Because of this holistic approach, the organizers were able to effectively select the right choice and continue to maximize this potential.
Marketing and Promotional Campaigns
The TV commercial campaigns for the 25th Olympic Games were generally considered the most effective mass-market advertising format, even amidst the high prices TV networks charge for commercial airtime. In the world of media and entertainment, a particular television commercial can be broadcasted continuously for months and even years. Normally, television commercial production studios often risk astronomical amounts of money for the production of a mere thirty-second television commercial. In this case, the broadcasting companies were financially capable for this kind of huge expenditures. The resulting number of high-quality 25th Olympic Games TV commercials, those with the best production values and the most popular personalities, were able to offset the huge expenses later on.
Billboard advertisements were also able to catch the public’s attention and thus created an immediate impression. They also were readable especially because they were usually noticed in roads and highways in Spain while the public was boarded at vehicles with high speeds.
CRITICAL SUCCESS FACTORS
For the hosting country to be able to successfully host the Olympic Games, the following success factors are critical:
· Financial Stability
Financial stability is crucial especially in the pursuit of the hosting of the Olympic Games. Along the process, it is important to remain updated with the latest developments to be able to stay competitive in the bidding process.
· Available Resources
The effective hosting of the Olympic Games comes as a result of well-funded research and development activities. The strong performance of the Olympic Games could also be linked to their cost-effectiveness. However, the hosting country has to be aware of the positioning in terms of process so as to maintain satisfactory profits margin and remain competitive in the bidding process.
· Marketing Strategy and Distribution
High awareness among the bidding countries has created the need for aggressive marketing, and access to strong media channels is critical in the bidding process of hosting the Olympic Games.
OLYMPIC ISSUES
Political Issues
The five countries that hosted the Olympic Games have experienced electoral and political transitions and crises over the last 12 years. There have been at least four political trends that have emanated from these political events. These are: (a) the cry for democracy and reforms; (b) increased popular and local-level assertiveness; (c) greater public accountability; (d) re-definition of the concepts of power and politics. Also, the forms of political economies have slowly shifted from a bipolar (big government-big business) to a tri-polar structure (authorities – private sector – civil society).
Economic Issues
Despite the adverse economic trends in the first half of the 21st century, among the five countries it was the United States as a whole which experienced a relatively robust economic growth. It is estimated that the United States, taken together, posted a better-than-expected GDP growth of 4.5% last year, slightly higher than the 4.1% growth that they achieved in 2002.
Social/Cultural Issues
There have also been social and cultural trends that have been evident over the last 12 years among the Olympic hosting countries. These include: (a) the irreversible rise of civil society among states; (b) the rise of civil society blends perfectly with a tri-polar structure of political economy; (c) the increase in the roles of intellectuals; and (d) the beginning of a period of introspection.
Technological Issues
It is a common knowledge that hosting the Olympic Games requires the technologies of the bidding country to be able to hold down such a sporting spectacle. Countries like Spain and China has shown signs of rapid growth and it is being estimated that there will be more than a million technologies that will be shipped within the year in preparation for the 2008 Olympics. And it is further being expected that within the next years the tremendous growth and technological advancements will continue among the five Olympic hosting nations. For instance, mobile commerce and multimedia terminals are just some of the technological advancements already being expected in China. Therefore, the continued growth and development will also make it imperative for localization to occur in the years to come.
STRATEGIC OPTIONS
Deriving from the analysis between the four previous Olympic hosting nations, together with their operations management and capabilities, many strategic options would become imperative for China to improve its upcoming Olympic Games hosting in 2008. It is therefore essential to evaluate these strategic options as to whether they are appropriate to the issues addressed, whether they are feasible enough to be implemented and their acceptability to key stakeholders.
There is definitely a need to reconcile both the inside-out and outside-in capabilities. While China’s strategy in hosting the Olympic Games in 2008 involves focusing on its core competencies with market position following its resource base, the nation will be put into a disadvantageous position should it choose to neglect both the macro as well as the micro environment. Therefore, China has to be aware of the latest operations management changes, as well as changes in political, economic, legal and even demographic trends in order to develop the outside-in capabilities, such as market sensing, public linking, channel bonding and technology monitoring.
The advantages enjoyed by China may come in the form of increased revenues. Knowing what the hosting of the Olympic Games demands and the latest trends could help China fully exploit its research and development capabilities to come out with innovations which are not only cost-effective but also high in quality. The strategic option can even be used as marketing tool where the focus is on staying close to the public and listening to their feedbacks. On the flip side of the coin, there will be huge mobilization of resources involved, and the associated risks bestowed on China.
Nevertheless, the mentioned strategic option seems the most practical in the wake of globalization, since there is a sudden shift towards a more integrated and independent Olympic Games. The key stakeholders too should not have any objections so long as China’s core strategy is not threatened. By virtue of China’s centralized control of its hosting chores, it is being expected that major barriers should not exist in carrying out such an option except additional time may be required given the scope and span of operations.
Understanding the strategic importance of hosting the Olympic Games is something China has to be familiar with. China normally practices a centralized and globally scaled configuration of operations and capabilities. This allows information dissemination to be retained.
RECOMMENDATIONS
A tie-up with various countries that already hosted the Olympic Games offers tremendous benefits in terms of access to their policies, infrastructure and even their resources. However, China must not lose sight of its core competencies and strategies while pursuing these tie-ups. Otherwise, the image of China might be put in jeopardy.
Meanwhile, the collaboration of China with its major competitors can be seen as a ridiculous move at first. However, upon close examination, this move could pave the way for China to improve even more its capabilities to host the Olympic Games. The bottom line is both sides would be able significantly gain in such an alliance. China’s strengths in modern technologies combined with the operations management capabilities of their competitors can transform them suddenly into an unbeatable force to reckon with. One possible setback, however, is the differences in the cultures of the countries involved. Another possible setback could be whether any of China’s competitors has the need to form alliances.
The third option also focuses on alliances, but this time with either one of the suppliers specializing in sports products. The benefits of these alliances should outweigh the costs in the long run.
In terms of appropriateness, all three options are able to directly address the current issues mentioned. However, the question remains whether China could be able to implement any of these options, and whether these options can be acceptable to the key stakeholders. Any merger or alliances may also involve the sharing of expertise. China has traditionally relied on the inside-out approach. It is important to note that any transactions would have many implications on China’s values and culture as well as its resources. The key stakeholders definitely would be concerned with such options and need to be convinced of the positive aspects. Somehow, China will be able to overcome this barrier in managing strategic changes in the process of implementing any of the above mentioned strategic options.
CONCLUSION
The results of the analysis carried out on the five nations that hosted the Olympic Games indicated very significant effects, even amidst the threats of unrest. Therefore, we could conclude that the Olympic hosting in the future could still be expected to improve faster than average.
The review of the five previous Olympic Games, the hosting nation’s capabilities and its resources revealed very little inconsistencies regarding its hosting strategies. This is coherent with their traditional inside-out approach. However, the need to reconcile both the inside-out and outside-in approaches becomes imperative now for China as the upcoming hosting nation.
The analysis among the Olympic environment as well as the various Olympic issues revealed certain gaps, most of which are biased towards the environment. However, these gaps paved the way towards determining a number of recommended strategic options to secure the competitiveness of the Olympic Games.
REFERENCES
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