Category: Olympic Games

Executive Summary

The effects of globalization on Today’s business ventures continue increasing with time. All (sporting) business entities, whether private, public or non-governmental, need to establish and posses an edge that distinguishes them uniquely from their related opponents. The edge should be something that will make them more interesting and appealing to both the media and the public.

It is from this perspective that the author developed this report for the London Organizing Committee for the Olympic Games (LOCOG). The report’s main aim rested on helping in the raising of LOCOG’s international profile and boosting its future targeted share of the market. In achieving the stated aim, the author incorporated the following as the key sections upon which the report was build on:

To start with, the author tackled the introduction section that did present a review of important literature on the topic.

This was followed by a critical analysis of the effectiveness of LOGOG’s current marketing practices. In this section, 5 concepts were discussed in detail and their application by LOCOG assessed by the author.

Succeeding this section was the identification of the current 5 challenges facing or likely to face the organization in achieving its marketing objectives.

Following this, the author identified 4 technology oriented opportunities that can also be maximised by the marketing team. This was followed by a discussion of recommendations that can be implemented by LOCOG’s marketing to achieve success.

To sum up, the author provided a brief summary of the discussed findings in the conclusion stage.

Introduction

The Olympics Games are global arenas that attract forth the best world athletes and large spectator audiences. This is important since it is a recipe for cooperation and unity of different groups of people across the globe. For this reason, Olympics have won the powerful marketing function which is contrary in the ancient past when the event was considered a political platform where different ideologies were propagated.

The trend in ideology ceased in the 20th century as the sporting event took an economic turn (McLoughlin & David 2010). For that matter, marketing and advertising become practices that were prioritized to enable generate considerable profit from this mega sporting event.

Tellingly, the sporting activities related to Olympics have become an occupation, a lifestyle and a great source of entertainment. Based on this, marketing functions are therefore fundamental to ensure that these sporting activities generate great profits for the organizers and hosting state.

Moreover, it is also imperative to acknowledge that sporting activities plays most considerable role in people’s social life around the globe hence the mass media has been forced to cover these events on large scale modes.

Nonetheless, it is important to affirm that in the current times, it has become imperative that marketing function be applied smartly to assure maximum revenue turnover from events of the Olympics magnitude. As a matter of fact, each year, executives and entrepreneurs in the sporting industry are faced with problems of persuading advertisers to acquire commercial airtime during any sporting event.

However, in relation to Olympic Games, the author found out that they are regarded as the most profitable and large scale sporting event in the world. This has made winning and attraction of sponsors, supporters and media partners a less tasking issue.

In line with the above perspectives, this report explored the current marketing practices of the London Organizing Committee for the Olympic Games (LOCOG). Nevertheless, it covered key aspects of marketing.

For instance, the general concepts that included proper promotion of the games, use of technology to advance the marketing, new marketing trends that relate to Olympics and finally challenges related to marketing of mega sports such as the Olympics.

A Critical Analysis of the Effectiveness of LOGOG’s Current Marketing Practices

Proper Marketing or Promotional Strategies

To begin with, the report revealed that marketing managers of mega sporting events such as the Olympics are required to implement best and unique promotional strategies that capture and aid in availing event information to consumers. To achieve this, they can use promotional mixes. According to Schwarz and others (2010, p.163) promotional mixes include advertising, sponsorship, public relations and atmospherics.

Advertising

Advertising is a major primary element of the promotional strategy. It can be defined as the process of attracting public attention to a sport product or sport business through paid announcements in the print, broadcast or electronic media (Schwartz et al. 2010, p.164). It is the major communication process that event managers should use to relay event activities to their consumers.

According to Funk (2008), advertising and selling techniques can communicate specific attributes and benefits of the sport product to influence socialising agents. This in return enhances brand promotion, segmentation, differentiation and positioning.

Notably, advertisement in Olympics usually differs from other forms of advertisements. This is so since ways of getting revenue from Olympic advertisement is limited and specific. For instance, revenue is only obtained from either endorsement of an athletic, purchase of broadcasting right and revenues from sponsorship.

In terms of sponsorship, it does not only mean financial support, but it also means provision of services, products, expertise, technology and human resource that aid in the organization and marketing of such event.

With regard to how LOCOG has effectively implemented this promotional element, the author established that the committee had and was still carrying out an aggressive advertising campaign both in the electronic and print media. For instance, in one of its online advertising scheme, the organization had developed an attractive site (www.london2012.com) endowed with specific attributes and benefits.

The site has on its topmost page a persuasive message for the local leaders. As such, it urges them to get ready to celebrate the 2012 anticipated extravaganza.

Sponsorship

The process of sponsorship involves issuing affiliation rights to a sports business or product. This helps the parties involved to have a mutual sharing (Irwin, et al. 2008, p.154). As a promotional mix, it plays a significant role of providing additional revenues, increasing awareness of the event on the target market, improving organization image, market share as well the sales share (Masteralexis 2011, p.188).

In reviewing of the sponsorship plan as adopted by LOCOG, the author inferred that the organizers of the forthcoming 2012 Olympic Games had done a wonderful job of allocating sponsorship rights to reputable company brands in the world.

These include amongst others ADIDAS, BMW, BP, British Airways, BT, Coca Cola, Omega, P&G (LOCOG Homepage 2012). The chosen sponsors are financially strong to provide the much needed additional revenues for hosting the event successfully.

Public or Corporate Relations

Marketing managers are also required enhance public relations. Public relations refer to collections of activities, media and communication coverage to convey the vision of the organization responsible for organizing the event. Corporate relations describe what makes up the sporting organization.

Event and marketing managers implement corporate relations by working closely with the media fraternity thus maximising on the coverage of their event activities. Corporate relations help event managers to improve on their corporation and event images thus attracting an increased spectator presence which in turn generates a lot of income.

LOCOG has failed to enlist reputable media houses as its partners and supporters stakeholders. This is a risky venture since the event risks being accorded limited coverage rights as determined by the paid adverts. As such, a limited spectator audience will be realized leading to less revenue collection. The management team should correct on this short coming.

Atmospherics

Event marketers are also required to promote their activities by utilizing on the designs of visual communication in environments. This entices potential event participants’ emotional and perceptual responses; thus confirming their full participation in the sporting event.

Event managers and marketers may oversee the following operations that constitute implementation of atmospheric promotional mix.

Temperature

The marketing capture aspects such as ensuring that stadiums roofing system allows for proper ventilation or air conditioning.

Lighting

The stadiums should market as well lit by providing best energy saving bulbs. In addition natural lighting should be preferred during day time matches.

Assessing the effectiveness of LOCOG in achieving the above, the researcher found out that the organization did not spend a lot of resources in achieving the above since the chosen venues were already known to contain the above. Examples of such venues include the Greenwich Park, Hampton Court Palace, Earls Court, and Wembley Stadium just to list a few.

Proper Financial Planning/Budgeting for the Marketing Function

Too often many sporting events have been held even when careful studies would have cleared revealed that the sporting events were heading for financial disasters. In such cases, most event managers place poorly constructed and unrealistic marketing budgets before them.

The financial aspect in sporting events has been ignored mainly because the organizing teams assume that the events will be able to sponsor itself; especially from event ticketing. This is not the case for successful events.

In staging successful sporting events, event managers are required to brainstorm all potential areas of expenditure and income under the obvious catch all categories such as marketing, administration, event control, social events and merchandising (Collins & Trenbertha 2005, p.366).

Woods (2007, p.148) carried out conclusive studies that showed that in assessing the monetary sources associated with specific events, event managers are required to evaluate the hosting city’s attractiveness to corporate sponsorship; since this is a key factor along with the proposed television package for broadcasting the event in question.

A good example of how event managers successfully “tapped” on this factor occurred during the staging of the 1996 Olympic Games. The event managers, in their efforts to stage a successful event, chose on Atlanta, Coca Cola’s home territory, as the hosting city.

As a result of its strategic positioning, the event was able to attract Coke’s corporate sponsorship when the giant multinational corporation seized the chance to advertise its products and services to the event’s global audience.

Collins and Trenbertha (2005) went ahead and postulated that, “the acceptance that for the participants, the event begins before they arrive and extends beyond the time they leave, has financial implications-presenting revenue opportunities that extend well beyond the typical entry fees, gate takings, hot dogs and programme sales (p.366).

In trying to overcome the financial constraints associated with staging major events, event managers are therefore required to understand that their experience or knowledge is above the worth of the sporting event itself.

According to the statistics availed on LOCOG website, the organization has achieved notable results in achieving the above marketing concepts. These statistics revealed that the 2012 project was to be funded by two organizations. These were the privately owned organizing committee (which had achieved its collection budget of £2 billion) and the public sector delivery organization.

The later was being funded by the Department of Culture, Media and Sports, The Greater London Authority, The National Lottery amongst others. So far, the parties had realized a commendable figure of £2.2 billion.

The 4 Dimensions of a Marketing Plan

According to Sindell (2005), marketing practices are the “set of controllable variables and their levels that firms use to influence the target market”. (p.35). Good marketing strategy needs to be formulated in order to meet the ever changing customer needs.

Any marketing plan adopted by the organization, needs to put customer needs as its central focus. A marketing strategy that is adopted which prioritize customer needs entails four dimensions.

These include: product which in the case of London Organizing Committee for the Olympic Games (LOCOG), are Olympic games, price which is the pricing of entry tickets to venues, promotion which entails all steps taken to popularize the London Organizing Committee for the Olympic Games (LOCOG) to potential spectators and lastly, place which entails specific venue points that the Olympic games will be taking place at.

These aspects have all been effectively achieved by LOCOG.

Achieving the Elements Contained in a Marketing Plan

It is vital that the marketing of mega sporting events should successfully achieve the key elements of any marketing plan such as situational analysis where by the current situation is analyzed by considering sales, industry attractiveness, customers, competitors and resource analysis.

In addition, a marketing plan also includes planning assumptions which entail the potential market for the product, allocation of resources and forecast of market and brand aspects.

Additionally, objectives for carrying out the marketing of a particular event (for our case Olympics) also form elements of any proper marketing plan. Apart from objectives, marketing practices are also outlined in this section to indicate how this marketing exercise will be carried out.

In this study, the author did not get the opportunity to review the contents of the LOCOG’s marketing plan due to its unavailability. As such, determination of its effectiveness was impossible. However, the author established that the kernel of the marketing plan was devised by the respected Sir Keith Mills, who also topped up as the vice chairman to the LOCOG (Beard & English 2006).

Challenges Associated with Mega-Sports Marketing (1pg)

The Ever-Changing Consumer Needs

In this study, the author derived the first challenge that faces LOCOG in its marketing role are the hardship to meet the current dynamic consumer needs.

This had arisen from the fact that London has been forced to re-invent what the Olympic and Paralympic games might be expected to deliver for smaller or developing nations in the current prudent financial times. This challenge has been summarized and reframed by some researchers as “building a model for the 21^st Century Olympic Games” (Rogan & Martin 2011, p.194).

The 2005 Bombings

To add, the author found that the organizing and the marketing committee faced serious credibility challenges including the July 7, 2005 bombings in the hosting city of London. This created the impression that the city was unsafe for the anticipated large spectator audience.

The Changing Needs/Demands for the Event

More so, it has been revealed by the marketing team that the earlier documented budget for the 2012 Olympic Games has kept on changing thus pushing up the costs. For instance, in 2006, it was marketed that 10,000 guards at a cost of €339 million were enough for the event period. However, this figure has been reviewed after a closer analysis to 23,700 thus calling for a rise in the costs to €665 million.

Mismanagement

The task of event managers in ensuring success for various events is not that easy- simply because marketing managers are required to keep track on all activities happening before, on and even after the occurrence of Olympic events (Allen 2005, p.67). The LOCOG team has not been an exception in relation to this challenge especially with the unpredictable inflation being experienced all over the world.

Environmental/Weather-Related Challenges

Extreme weather conditions caused by global warming have posed a challenge of reducing the visibility levels thus leading to postponement of events.

Technology Oriented Opportunities

To compete successfully in the current competitive global markets, marketing managers of mega sporting events such as the Olympics have been forced to think ‘smart’ before embarking on complex marketing-performance-improvement programs; by determining the type and extent of changes that can be achieved by use of Information Technology to achieve their marketing outcomes (Ramakrishnan 2008)

Information technology departments have played great roles in the lengthy processes associated with successfully re-engineering change processes in the marketing of sporting events. As a result of the useful role played by IT staff in the re-engineering change processes, the hiring of IT staffs has shifted from highly specialized in-house technicians to good project marketers.

As Cameron and Green (2004, p.252) noted, “those IT people who can understand technology, be aware of what is ‘out there’ and what it can do for an organization, plus grasp how to create the changes desired by the organization are highly valuable”.

The following constituted the ways in which IT related opportunities can be maximally utilized to enhance the marketing function by the LOCOG:

First, LOCOG marketing managers can utilize software packages that are custom-designed to easily store and retrieve the much needed information. These custom-designed programmes help them to generate schedules of work and monitor the progress of the various activities in the particular events (Allen 2002, pp. 205-210).

Second, the marketing team can use IT applications such as Corel Draw and Adobe Photoshop to create solid press kits that incorporates the event’s information, brochures, its staff profile as well as their pictures and bios of the leading organizing personalities and role models to demonstrate their competency for this upcoming mega sporting events.

Third, LOCOG marketers can also maximise on the use existing popular social blogs for instance twitter to communicate the message to literate audiences who have habits of interacting with the internet.

Fourth, the organization can tap on the use of IT by ddeveloping a dynamic websites that will be regularly updated with LOCOG’s awareness messages.

Recommendations for Strategic Responses

Development of a Marketing Strategy that Responds to the Changing Environment

LOCOG must anticipate changing marketing environment and therefore develop marketing practices that are responsive to the changing needs of the customer. For that matter, it is important to develop marketing practices that are customer oriented.

This can be attained through creating a culture that enables marketing firms to collaborate with customers (Botha et. Al., 2007). However, for this to be possible there is need to design systems, platforms and tools that promote collaboration.

Bernthal and Sawyer (2004) argued that it is pertinent and imperative that those in charge of marketing practices should pay keen interest to participant expectations and the other factors likely to influence these expectations.

In assessing participant expectations, marketers should make use of various variables, for example, the use of the participants’ skill levels (either advanced or lower) can assist marketing event managers to clearly match these events with their appropriate sponsors; thus benefiting both the sponsors and the specific events.

Reduction of the Uncertainty

Uncertainty in Olympic events occurs when inadequate information is availed on future events thus making it difficult to predict on their outcomes as well as their alternatives. By setting organizational goals, LOCOG’s marketing event managers were likely to reduce uncertainty levels by arriving at consensuses on the most relevant organizational goals.

Performance Appraisal of the Marketing Team

LOCOG marketers are required to assess the performances of both sub-units and individuals involved in the marketing operations. In assessing their success factor, the organization can use the stated organizational goals to act as benchmarks on which the best contributors will be retained and poor contributors will be relieved of their roles.

For instance, if the committee tasked with marketing the event states in one of its goals that for the event to deemed successful, then staff should successfully achieve their set targets, then based on this, the committee can go ahead to evaluate the performance of the hired staff and give additional bonuses to the best performers or achievers. Likewise, this committee can go ahead to terminate the services of non-performers.

MaClean (2001) went ahead to advise that performance appraisal is not an isolated event that happens only at a specific time during the organizational cycle. Rather, it must be thought of as a process with several steps of events that occur in sequences (MaClean 2001, p.7).

Conclusion

This report was very useful in achieving its purpose of critically analyzing the current marketing practices and how they have been effectively applied by LOCOG. In brief, the author established that the marketing team for this organization had put in great effort to achieve their outcomes.

However, to improve on their current role, the author went an extra mile to suggest how IT can be maximised to advance the marketing roles. The identification of key challenges likely to face the marketing team was also discussed. The report ended by providing vital recommendations to the organization.

References

Allen, J. (2002) The business of event planning: Behind-the-scenes secrets of successful special events. Ontario: John Wiley and Sons.

Allen, J. (2005) Time management for event planners: Expert techniques and time-saving tips for organizing your workload, prioritizing your day, and taking control of your schedule. Canada: John aWiley and Sons.

Beard, M. & English, S. (2006) London Olympics team sets sights on sponsorship gold. The Independent Newspaper. Web.

Bernthal, M. J. & Sawyer, L. (2004) The importance of expectations on participatory sport event satisfaction. The Sport Journal, 7(3), pp. 45-84.

Botha, J. S. & Brink, A. (2007) Introduction to marketing. Cape Town: Juta and Co Ltd.

Cameron, E. & Green, M. (2004) Making sense of change management: A complete guide to models, tools & techniques of organizational change. London: Kogan Page Publishers.

Collins, C. & Trenberth, L. (2005) Sports business management in Aotearoa/ New Zealand. Melbourne: Cengage Learning.

Funk, D. C. (2008) Consumer behaviour in sport and events: Marketing action. Oxford: Butterworth-Heinemann.

Irwin, R. L.et al. (2008) Sports promotion and sales management. USA: Human Kinetics.

LOCOG Homepage, (2012) Getting ready to celebrate. Web.

MacLean, J. (2001) Performance appraisal for sport and recreation managers. USA: Human Kinetics.

Masteralexis, (2011). Principles and practice of sport management. Canada: Jones & Bartlett Publishers.

McLoughlin, D. & David, A. (2010) Strategic market management: Global perspectives, UK: John Wiley & Sons Ltd.

Ramakrishnan, V. (2008) The psychology of change management. Web.

Rogan, M. & Martin R. (2011) Britain and the Olympic Games: Past, present, legacy. Matador, UK: Troubador Publishing Ltd.

Schwarz, E. C. et al. (2010) Sport facility operations management: A global perspective. Oxford: Butterworth-Heinemann.

Sindell, K. (2005) Investing online for dummies. Indiana: Wiley Publishing.

Woods, R. (2007) Social Issues in Sports. USA: Human Kinetics.

Introduction

Currently, events are increasingly being considered as one of the key components of our culture (Torkildsen, 2005, p.467). This has arisen from a number of factors some of which include increase in the consumers’ discretionary income and leisure time (Campbell, Stonehouse, & Houston, 2004, p. 34).

The world of events is composed of a wide spectrum of events some of which relate to sports, politics, business and cultural occasions (Damster, Tassiopoulos, Dry, Gasche, Johnson & Knocker, 2005, p.8).

Events can either be classified as special events, major events, and hallmark events. Special events include events that occur less frequently and are outside the normal operations of the organizing body (Varrel & Kennedy, 2011, p. 1). On the other hand, major events entail large scale events which are either national or international. As a result, they attract extensive media coverage and spectators (Damster et al, 2005, p.8).

The sports industry is one of the economic sectors within which numerous mega events are organized (Shone & Parry, 2004, p.65). An example of such sporting event is the Winter Olympics. Decision to establish the Winter Olympic Games was first conceived in 1908 with the acceptance of figure skating during the Summer Games which were held in London. The first Winter Olympics were held in 1924 in Chamonix, Paris (Mechikoff, 2009, p.43).

Currently, the Winter Olympic Games are held after every 4 years. Over the years, The Winter Olympic Games have undergone significant transformations. For example, more sports such as snowboarding, skeleton, figure skating, speed skating, curling, luge and freestyle skiing have permanently been included in the sports programme.

Letter of introduction

The Winter Olympic Games bid committee for the 2018 Winter Games is pleased to present its bid to hold the 2018 Winter Olympic Games in Munich, Germany. Decision to make the bid arose from appreciation of the fact that Germany has successfully held other mega events in the past.

For example, the 2006 FIFA World Cup which was held in Germany is one of the motivations that have made Munich to make the bid to host the 2018 Winter Olympics. Additionally, Bavaria which is one of the regions in Germany has successfully hosted winter games for example the recent World Championships which were held at Alpine. As a result, the country has sufficient facilities to host such a mega event.

Additionally, Munich intends to promote world peace through sports. In this document, the Bid Committee has outlined its evaluation of Munich as an appropriate city to host the 2018 Winter Olympic Games. Please find within the document a comprehensive evaluation of Munich’s bid in addition with a concrete fact finding process.

Positioning

Vision

Munich intends to effectively host the 2018 Winter Olympic Games which are amongst the most famous winter sports within the region. Over the years, Munich has successfully hosted major events and festivals. By hosting the Winter Olympic Games, Munich intends to promote the Winter Olympic Games into a celebration for all the parties.

Mission

The mission of Munich 2018 Winter Olympic Games is twofold. These entail promoting world peace through sports and to enhance development of the youth.

Core values

Some of the core values which will guide Munich in organizing 2018 Olympic Games entail portraying the spirit of solidarity, friendship, and fair play. Additionally, the participants are required to avoid any form of discrimination during the competition.

Therefore, infrastructure and financial base are not the only factors which are considered when selecting the city to host the Winter Olympic Games. However, the government of the host country must guarantee that that the Olympic Games charter will be respected (Japanese Olympic Committee, 2011, para. 1).

Analysis of Munich as a host for the 2012 Winter Olympics

Community Overview

Germany is ranked as the 4^th largest economy in the world with a population of approximately 82 million people (Tiersky, Jones & Genugten, 2011, p. 119). The City of Munich is estimated to have a population of 1.4 million citizens while that of Bavaria is 12.6 million citizens.

The country has adopted a parliamentary democracy system of government. However, the powers are shared between sixteen federal states and the Federal Government. The Members of Parliament are elected directly by the citizens every 4 years.

The elected Members of Parliament in turn elect the Chancellor who is charged with the responsibility of proposing the cabinet. The 2 tiers of government which include the State and the Federal governments have separate powers. The municipalities form a part of the state government. However, their operation is characterized by a certain degree of autonomy.

Government support and partnership

The success of the mega-event such as the Olympic Games is dependent on the degree of government support and partnership with various parties (Hiller, 2000, p. 440). The delivery of the 2018 Munich Olympic Games has clearly been defined by the Munich 2018 Multi-Party Agreement. The agreement clearly stipulates the commitments by the various parties to support the Olympic Games in different capacities.

During the 2018 Munich Olympic Games, the German Federal government will be charged with a number of responsibilities. Some of these entail construction and maintenance of the venues, transport system and ensuring provision of effective immigration and customs services.

The Free State of Bavaria will be charged with the responsibility of ensuring that there is sufficient security during the event. On the other hand, the local, regional and national authorities will be required to contribute 33.3% to cater for the construction of the competition venues. Additionally, the local authorities have accepted to contribute towards the construction of non-competition venues.

The bid for Munich to host the 2018 Olympic Games has not only gained support from the local, regional and national authorities but also from the private sectors. The bid committee met with the German Prime Minister, the Chancellor and ministers who pledged their full support for Munich to host the 2018 Olympic Games.

Community support

For a particular city to successfully host Olympic Games, it must have sufficient land (International Monetary Fund, 2010, p. 9). This arises from the fact that significant proportion of land is used to construct the necessary facilities. In the process of bidding to host the Olympic Games, the bid committee experienced one major challenge.

This arose from the fact that some of the local landowners especially those located at Garmisch-Partenkirchen were not willing to offer their land to ensure construction of the various sporting facilities. As a result, they decided to challenge the validity of Munich hosting the Winter Olympic Games.

Despite this challenge, an opinion poll conducted by the International Olympic Commission revealed that the bid for Munich to host the 2018 Olympic Games is increasingly receiving support. The poll results show that 60% and 53% of residents within Munich and Bavaria support the bid respectively. On the other hand, the national support for the bid stands at 56%.

Host Organizing Committee (HOC) overview

Legal

The prevailing legal framework in Germany is sufficient for Munich to host the 2018 Winter Olympic Games. This arises from the fact that the government adopted the Olympic laws in 2010. Germany has over the past year been committed towards meeting the IOC requirements.

The Organizing Committee of Olympic Games will operate as a not-for profit limited liability Company. The shareholders will include the local municipality of Garmisch-Partenkirchen, the Free State of Bavaria, the NOC, the Federal Republic of Germany and the Rural District of Berchtesgadener.

The Shareholders Board will be charged with the responsibility of defining and implementing the role and responsibilities of the various stakeholders. Additionally, there will be a Supervisory Board which will be subject to the Shareholders Board. Its role will entail undertaking administrative control of OCOG.

Additionally, there will be an executive management team which will be charged with the responsibility of overseeing the day to day operations of the OCOG.

Host Competition Venues

Mega events should have all the appropriate venues to host the event (Westerbeek, Turner & Ingerson, 2002, p. 303). Munich intends to host the 2018 Winter Olympic Games in its existing venues. Additionally, the City of Munich plans to transform and revitalize some of the venues that were used during the 1972 Olympic Park from being Summer Olympics based to Winter Olympic based.

Two main zones which include Garmisch-Partenkirchen and Munich will be used during the event. The City of Munich will be the center for all the games to be held. The bid intends to convert the 1972 Olympic Park into a venue that can host ice sports. Five competition venues will be used during the event.

The opening and the closing ceremonies will be conducted in the existing Olympic stadium. Sports such as figure skating will take place in the existing stadium while the 1972 diving swimming venues will be converted into a curling venue. A demountable venue will be developed to host the speed skating oval.

The bidding committee will ensure that an effective Olympic Village is developed. A number of media villages which will be located near the Ice Park will be designed. Another non-competition venue which will be developed includes the Munich zone. This zone will be comprised of the medals plaza, a restaurant and the main media center.

Garmisch-Partenkirchen town successfully held the Winter Olympic Games in 1936. Within the Garmisch-Partenkirchen zone, 7 snow competition venues will be designed. Five of these venues will be located within the Garmisch-Partenkirchen zone.

Some of the sports that will be held within this venue include snowboard skiing, alpine skiing, ski jumping and freestyle. On the other hand, cross-country skiing and biathlon will be held at the Schwaiganger Nordic center. Other facilities that will be located within the center include a hotel to accommodate the media, the medals plaza, 4 media villages and a mountain media center.

Transportation services

Effective transport is necessary to ensure ease of connectivity when hosting a mega event (Roche, 2000, p.140). All the venues which supporting the Winter Olympic Games will be interconnected with an effective transport system which will entail a railway line and roads. To ensure effective interconnection of the venues a comprehensive improvement of the railway line will be undertaken.

Additionally, 3 road tunnels will be constructed within Garmisch-Partenkirchen to ensure ease of access to the snow venues. Three main links will form the core transport system between the venues. These include the Munich airport which will connect the participants to the Munich hotel area which is approximately 40 kilometers away. The airport is connected with numerous motorways and railway lines.

The second system will link Munich to Schwaiganger Nordic Center which is a distance of 65 kilometers and Garmisch-Partenkirchen which is a distance of 90 kilometers. To ensure successful interconnection between Schwaiganger Nordic Center and Garmisch-Partenkirchen, the road tunnels will be expanded to 4 lanes. The 3^rd system will link Munich to Konigssee through rail, road and motorway.

Munich International Airport which is a modern, high capacity facility will serve as the main gateway airport for the entire event. The airport serves approximately 33 million passengers annually.

The airport is strategically located at 125 kilometers North of Garmisch-Partenkirchen and 40 kilometers North of Munich. The chart below shows the estimated travel time between Munich international airport and the Olympic villages.

Considering the fact that there are 7 motorways and 8 railway lines which converge in Munich city, the city forms the main transport center for Southern Germany.

To eliminate congestion within the competition and non-competition venues, the bid committee will not provide any parking services. The bid committee has ensured that the venues are effectively served by shuttle buses and rail.

Additionally, the bid committee will design 35,000 park-and-ride lots which will be distributed across all the venues which will host the event. Approximately 20,000 parking lots will be located around Munich, 13,000 in Garmisch-Partenkirchen and Schwaiganger and 2,000 in Konigssee-Berchtesgaden area.

The appropriateness of Munich and Garmisch-Partenkirchen zones arises from the fact that these zones are served by effective transport system. High capacity shuttle buses and low capacity rail stations will be used to connect all the venues.

Additionally, the bid committee will ensure that traffic within Garmisch-Partenkirchen zone is limited to only permit holders and the Olympic transport. Considering the fact that the motorway system within Munich will be heavily used during the games, the bid committee will integrate advanced traffic management measures (Evans, Campbell & Stonehouse, 2002, p. 34).

Security services

Tarlow (2002, p.9) is of the opinion that security is a critical consideration when holding any event. The bid committee believes that Munich has a comprehensive understanding of the security needs during the mega events such as the Winter Olympic Games.

During the Winter Olympic Games, Munich will assign the security responsibility to the Free State of Bavaria. This decision was arrived at after consideration of the fact that Bavaria has successfully held mega events in the past. Additionally, security support will also be provided by the Federal Governmental agencies.

The Organizing Committee for the Olympic Games (OCOG) will be charged with the responsibility of ensuring security within the non-competition and the competition venues. The overall security of the entire event will be on the Bavarian Ministry of Interior.

The bid committee estimates that a total of $ 49 million will be incurred to cater for non-OCOG security while $ 37 million will be incurred to cater for equipments, planning, training, logistics, coordination, private security and law enforcement personnel. The German government guaranteed that the cost of the security will be integrated in the budget for the involved agencies.

The security personnel for the event will be drawn from the Bavarian forced, private security agencies, and volunteers. The bid committee has also considered seeking the help of police forces from other regions within Germany.

Information communication technology

It is important for event managers to ensure that there is an effective communication system to ensure successful completion of the intended event (Adams & Mallen, 2008, p. 91). The City of Munich is extremely advanced with regard to information technology.

For example, the city has a well established telecommunication infrastructure. From its assessment, the bid committee established that the city of Munich has sufficient level of technology and expertise that meets the requirements of the Winter Olympic Games.

Environmental services

One of the most important components which should be taken into consideration when bidding to host any event relates to the impact of the event on the environment (Yeoman et al, 2003, p. 32).

The 2018 Olympic Games bid committee has formulated an innovative sustainability strategy. The strategy entails use of temporary and existing venues to host the event. As a result, the event will have minimal environmental impact.

By bidding the 2018 Winter Olympic Games, Munich intends to attain the Gold standard under the German Sustainable Building Council certification system. The objective of the certification system is to reduce energy consumption with a margin of 30% during the 2018 games.

In the process of upgrading and constructing new venues, a total of 1.3 hectares of forest will be cleared. To ensure environmental sustainability, the bid committee will ensure that an equivalent area is covered with trees. However, upgrading and construction of the competition and non-competition venues will not affect the protected areas.

Additionally, the committee will also ensure that the Games adhere to the concept of carbon neutrality. Ensuring environmental sustainability is a key element in the bidding process (House of Commons, 2003, p. 7). This will be attained by integrating carbon offsets and using energy saving technologies and renewable forms of energy. The bid committee will ensure that all the venues are supplied with 100 per cent green energy.

Medical facilities

In an effort to enhance the wellbeing of the participants, each of the Olympic Villages will offer effective medical services. All the competition venues will offer modern emergency services in line with the specifications of each sport. Additionally, the bid committee will ensure that free healthcare services are offered to all the Paralympics and the Olympic family during the games.

The bid committee has selected 4 hospitals with a total bed capacity of 4,100 to take care of the athletes and their respective organizing committees. The committee has also taken into account the interest of the spectators. Free first aid and other emergency medical services will be offered to the spectators at all the venues.

Considering the fact that Germany is a signatory to WADA Copenhagen Declaration which prohibits doping in sports, Munich 2018 bid committee will open a laboratory for the event at the Technical University of Munich. This will play a critical role in fighting drug trafficking and doping.

Marketing and communication

Upon developing a product or service, a comprehensive marketing strategy should be formulated to create awareness amongst the target customers (Silvers, 2004, p. 6). For a mega event such as the Winter Olympics to be successful, it is critical for a comprehensive marketing campaign to be conducted (Theodoraki, 2007, p. 37). The objective of the campaign is to create awareness to a large number of individuals.

To ensure successful creation of publicity regarding the Munich 2018 Olympic Games, the bid committee has integrated different marketing communication techniques. One of these entails outdoor advertising. For example, outdoor advertising spaces have been guaranteed by Munich Airport, and at other transportation companies.

Other outdoor advertising guarantees that have been obtained entail posting adverts at Salzburg and Innsbruck airports in Austria. To ensure that a large number of individuals are aware of the event, Munich 2018 Olympic Games bid committee will also use other mediums in creating awareness. One of these will entail securing television rights with the local television stations.

Legacy plan

There are a number of legacies associated with the Munich 2018 Olympic Games. For example, 2 new multi-sports facilities will be constructed within Munich. Hosting the event will contribute towards an intensive investment in road infrastructure especially within the Garmisch-Partenkirchen area. The event will also result into an increase in the number of sustainable housing units (Coulter, 2008).

Additionally, the event will also contribute towards revival of the Munich Olympic Park. The community especially the youth will also benefit from the awareness and education programmes. The programs will give the youth insight with regard to sports participation and Olympics. Considering the fact that the event will be held on the already existing facilities and temporary venues, a high degree of sustainability will be attained.

Economic impacts

According to a report by Great Britain (2006, p.9), there are numerous economic benefits which are associated with hosting mega events such as the Winter Olympics. These benefits range from short term to long term benefits.

Some of the short term benefits associated with hosting Olympic Games relate to regeneration and increase in the number of local investment within the host city. This arises from the fact that there are numerous economic activities which are staged on the games (Cashman, 2002, p. 10).

Different governments are increasingly promoting and supporting events as one of their core strategies towards attainment of their nation building, destination marketing and economic development goals. Damster et al (2005, p.8) opine that events entail a unique way of attracting tourists.

As a result, events are increasingly being considered as an effective way of enhancing tourism within a particular country (Locate In Kent, 2009, p. 4). For example, by hosting the Winter Olympic Games, more individuals will change the perception regarding Germany.

As a result, they will increasingly consider Germany as a potential foreign investment destination. The resultant effect is that the country’s Gross Domestic Product will be enhanced.

Media services

Mega events such as the Olympic Games are characterized by extensive media coverage (Great Britain, 2010, p. 9). These range from television and radio broadcasting stations and the print media.

To ensure effective coverage of the event, Munich 2018 bid committee has proposed that it will design 2 main media centers which will be effectively equipped with the state-of-the-art facilities in order to meet the needs of the various media houses.

One of the centers will be located in Munich while the other will be at Garmisch-Partenkirchen. The media centers will entail an International Broadcasting Center (IBC) which will be approximately 40,000 m² and a Media Press Center (MPC) which will be approximately 20,000 m^2.

These centers will be housed at the Munich Trade Fair Center. Additionally, six media villages will be designed to cater for the needs of all the media. The media representative will be accommodated within the restaurants that are located near the media centers. This will ensure ease of access to their place of work. Transport between the competition and the accommodation venues will also be offered to all the media representatives.

Accommodation

The appropriateness of Munich to host the 2018 Olympic Games is evidenced by the fact that the city has sufficient accommodation. There are approximately 53,000 rooms which are located within a radius of 50 kilometers from Munich.

This means that Munich meets the International Olympic Committee (IOC) accommodation requirements of over 24, 600 rooms. Approximately 18,500 rooms are located within a distance of 10 kilometers from Munich. More than 12, 800 rooms are located at Garmisch-Partenkirchen while 1000 rooms are located at Konigssee.

The bid committee has also projected the average room rate by 2018. The chart below illustrates these projections.

The chart below also illustrates the rates that other clients will be required to pay. These rates are inclusive of breakfast and taxes.

Currency fluctuations pose a risk with regard to these projections. However, the bid committee confirmed that in the event that the room rates increase by 2018, it will cater for the difference.

Business plan

According to Bowdin (2010, p. 298) management of events should take into consideration the finances. One of the ways through which this can be attained is by integrating the concept of budgeting. This arises from the fact that a substantial amount of money is required to successfully host the event.

The 2018 Munich Olympic Games organizing committee has developed a comprehensive balanced budget which outlines the revenue and expenditure which will be incurred to host the event. It is projected that the event will generate $ 1.52 billion in revenue.

Additionally, the total expenditure for the whole event is also $ 1.52 billion. To ensure that the event is successful, the organizing committee has set apart a contingency fund of $76 million which represents 5% of the total expenditure. Considering the fact that Germany is in a relatively stable region, the committee projects that the average annual rate of inflation by 2018 to be 1.6%.

Revenue generation

The chart below illustrates the projected the revenues to be generated from the event.

In its budget, the committee has also outlined the main expenditure items associated with the event. The main expenditure items identified are outlined in the chart below.

Critical path

The chart below illustrates the key dates for the event bidding process.

Conclusion

The evaluation conducted by the bidding committee on the appropriateness of Munich to host the 2018 Winter Olympic Games presents a high probability of Munich being selected by the IOC. This is evidenced by the information presented by the bidding committee to the IOC. The information provided depicts the key success factors necessary to host an event such as the Winter Olympic Games successfully.

The bidding committee has presented Munich’s commitment towards ensuring that the event is successful. For example, the bidding committee has outlined its proposal with regard to the various requirements that are necessary to host such an event.

Some of these relate to provision of both competition and non-competition venues. Additionally, the bid is also supported by a number of parties such as the government and the local community.

Reference List

Adams, L., & Mallen, C., 2008. Sport, recreation and tourism event management: Theoretical and practical dimensions. Oxford: Butterworth-Heinemann.

Bowdin, G., 2010. Events management. New York: Routledge.

Campbell, D., Stonehouse, G., & Houston, B., 2004. Business strategy: An introduction. Oxford: Butterworth-Heinmann.

Cashman, R., 2002. The impact of the games on Olympic host cities. Web.

Coulter, M., 2008. Strategic management in action. New York. Pearson-Prentice Hall.

Damster, G., & Tassiopoulos, D., et al. 2005. Event management: A professional and developmental approach. Lansdowne: Juta.

Evans, N., Campbell, D. & Stonehouse, G., 2002. Strategic management for travel and tourism. London: Butterworth- Heinemann.

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Great Britain. 2006. Going for gold: Transport for London 2012 Olympic Games. London: Stationery Office.

Hiller, H., 2000. Mega events, urban boosterism and growth strategies: An analysis of the objectives and legitimations of the Cape Town 2004 Olympic bid. International Journal of Urban and Regional Research. Vol. 24, issue 2, pp. 440-458.

House of Commons. 2003. A London Olympic bid for 2012. London: House of Commons.

International Monetary Fund. 2010. Finance and development. New York: International Monetary Fund.

Japanese Olympic Committee. 2011. History of Japan’s bid for the Olympics. Web.

Locate In Kent. 2009. Economic impacts of Olympic games. Web.

Mechikoff, R., 2009. A history and philosophy of sport and physical education: From ancient civilization to the modern world. New York: McGraw-Hill.

Roche, M., 2000. Mega-events and modernity: Olympics and expos in the growth of a global culture. New York: Routledge.

Shone, A., & Parry, B., 2004. Successful event management. London: Continuum.

Silvers, J., 2004. Professional event coordination. Hoboken, NJ: Wiley.

Tarlow, P., 2002. Event risk management and safety. New York: John Wiley.

Theodoraki, E., 2007. Olympic event organization. New York: Routledge.

Tiersky, R., Jones, E., & Genugten, S., 2011. Europe today: A twenty first century introduction. Lanham, MD: Rowman and Littlefield Publishers.

Torkildsen, G., 2005. Leisure and recreational management. New York: Routledge.

Varrel, A., & Kennedy, L., 2011. Mega events and mega projects. Web.

Westerbeek, H., Turner, P., & Ingerson, L., 2002. Key success factors in bidding for hallmark sporting events. International Marketing Review. Vol. 19, issue 3, pp. 303-322.

Yeoman, I., Robertson, M., Ali-Knight, J., Drummond, S., & McMahon-Beattie, U., 2003. Festival and events management: An international arts and culture perspective. Amsterdam: Elsevier.

Abstract

The fact that Olympic Games are to be held next year, it is important to analyze some of the issues relating to the supply of products. This also includes factors of importance to the companies as they prepare to have the service delivery of their best suit, as well as, the most vital considerations in the pursuit of such goals (McCarthy, 2011, p.1).

Here, let me say that London being the host of the great event, it is important for suppliers and companies at large to have the best preparation before the event. This will save them a lot of agony, which could arise from the failure to plan, in addition to constant reaction disparities.

Therefore, it is important to focus on some of the factors that the companies might be undergoing in the pre-preparation of the event with regard to the issues that are arising to them now, those that will be portrayed in the actual event also the resultant effects of the whole event thereafter.

Possessing the knowledge of the markets as it relates to issues of delivery of products precisely supply as well as the factors that affect the channels and modes of supply, the issue of Olympics games in London is of major concern. This is because it raises various sensitive considerations as it pertains to the companies and their readiness for the event.

This paper will therefore, seek to answer the question, why do companies seem unprepared for the Olympic Games in London? This will be based on the article provided for review as well as the actual analysis of management issues relating to supply in the usual market and the issue of disaster management.

Introduction

To begin with, the article analyzes the previous market behaviors as they relate to issues of supply and the essence of future strategic planning. The Olympic season here is compared to Christmas season in terms of companies’ operations requirements (Albert 1). This is because of the peak, with reference to operative considerations of organizations.

It is presumed that even though buyers may not feel directly impacted by such occurrences, their respective supply chains are significantly affected.

A managerial perspective of the situation is given by the UK country’s manager Humphries, where he denoted that a greater risk is even projected in a situation where the customer is not preferred by the supplier. This is because in terms of supply, prioritizing the customer will get a very low position and might end up running short of supply or getting none (Blackstone, 1989).

The most advised aspect of the companies getting supplies from similar suppliers to those of the Olympics are in the actual sense in a very dangerous position. This is because when it comes to supplying for them as well as the Olympics they may get the second position in priorities.

This is a major threat to the supply requirements of the companies, as it would render them unreliable to their customers and eventually losing the customers. The mentioned risk however, can be mitigated through the establishment of better control of inventories, which will help in the elimination of the error of underestimation or overestimation of demand (Sollish & Semanik, 2007).

The impact of Olympic Games on the supply of products

Actually, some companies will choose to take advantage and use the Olympic branded products seeking to obtain maximum demand of the products. However, such companies ought to be extremely careful when it comes to purchasing because of the risk of being new in the Olympics trade.

Another risk relating to the use of the branded products is, though at first they may be well selling, and giving appealing returns, they might turn to be a very big disappointment after certain occasions.

This is with reference to the case of the 2010 rebranded products whose demand significantly fell after England had dropped out of the tournament. However, this should not hinder the suppliers from accessing the benefits of the branded products, but it is only aimed at cautioning them to be flexible and take advantage of supplies when necessary.

The issue of disruption however, is not the only concern for the buyers hindering them from preparation of their contingent plans. Other issues have also been playing a role in the interference with such planning. These include the unrest that has been noticed in the United Kingdom, as well as, the issue of weather disparities.

It has been realized that in most cases, organizations are not prepared in advance for the day-to-day unforeseen risks. The organizations in the recent past have not been considerate of the disruption impact brought about by the Games.

It is further noted in the article that some suppliers who do their businesses in a small scale have not considered the factor of business continuity sufficiency, which is the main threat on the companies not anticipating for wellbeing of the Olympic Games. Effective supply chain aims at eventually getting the operations back up and ensure the sufficient consistency of the operations.

The second thing to consider in the discussion on the readiness for the Olympic Games is that of the supply chains. These chains are facing increased pressures and the purchasers should be ready for it. However, as the Olympic Games get closer, it has been noticed that most of the purchasers have realized the potential too late about the essence of disruption of the supply chains.

The exception of the percentage of companies that are anticipating and preparing for a disruption as it pertains to the games is 40%, and this is a considerably small figure as compared to the initial performances portrayed.

A research to identify the notions and perceptions of the purchasers on issues relating to the supply chain showed that more than four fifths did not think there were any problems associated with the supply chain, which in this situation is a very vital issue of consideration as it relates to the companies’ preparedness for the Olympic Games.

Further survey showed that 58 percent did not hold any plans that would be of use in the event that such problems came up.

Quoting the statement made by John Mile who is a procurement consultant, it is evident that the effects on the supply chains on an issue relating to the supply chains are inevitable.

This time round therefore, during the Olympics it should be among the suppliers’ considerations to meet these inevitable business surcharges and therefore planning for them should be amongst their most recent and considered a list of priorities (Sollish & Semanik, 2007).

These inevitable surcharges therefore, require the suppliers to plan and ensure that their councils are strategically protected from any risks they might face. The Olympics therefore, might have a big impact on business continuity.

It is presumed that due to the issue that will be accruing to the London Olympics, anyone who at that time will be operating business in and around London must have an issue however, adequately they prepare.

In the recent past however, some of the internal risks analysis on the forecasting of the Olympic Games have been underway and the main intend of the analysis is looking at the discovery of alternate working ways which may include stock piling the necessary resources before the start of the Games (Sollish & Semanik,2007).

Let me now focus on some of the major companies in the London markets also those that are intending to be involved in trading during the Olympic Games. Here, a critical look on the Dixons retail, the company feels that it is ready to handle any issues, which might arise relating to matters of operational considerations, as well as, marketing opportunities.

They are different in that in their business consideration unlike other companies who give the first priority to the trading aspect and profit maximization, their major focus is on the expectations for a disruption. In preparation for these, they have already built into their initial plans extra capacity for the accommodation of such disruptions as projected concerning the activities of Olympic Games.

Supply chains play a major role in the determination of how reactions in the workplace as issues of riots are treated also their effects to a company’s profitability. What remains to be seen is that contingency planning is a major attribute towards the effective decision making also the eventual solution analysis in the companies’ activities.

James Jaggard the best way to avoid disruptions is only through building of reliable and considerably good relationships with vendors. The companies that have used this approach in the preparation of the Olympic Games activities feel that their supply chains will not be negatively impacted and business will go on as usual (Sollish & Semanik, 2007).

An applicable methodology is the utilization of the existing long-term contracts also the existent partnership agreements as possible. This as per the article is aimed at ensuring that the supplier chain changes are greatly limited as they could lead to project delays as well as, an act as a major financial risk.

Where there are no flexible vendors, deals like the one mentioned above due to the lack of good relationships with them, Jaggard believes that the place where action should begin is at the identification of the strategic also the technical suppliers who are critical to the business.

In the advice of Jaggard, it is important to realize that some of the technicalities that can be handled include the measure of capacity and capability, an understanding of the customers of your supply, the understanding of an own spending profile as well and the supplier’s capability of your own (Cavinato, Flynn & Kauffman, 2004).

The beliefs of purchasers differ significantly in that other purchasers believe that their focus in terms of risks accruing to them is the future prices.

However, this can be treated in due consideration of the activities of making strategies that counter the rise in prices in that a reconsideration of the initial specifications of the products and work on re-designing the whole product for the purpose of changing how well it suits the particular market.

Considerations

The article ends by giving a review of certain considerations, which are the main attributes of impact assessment. These considerations are the activities of the organization to extend lead times with suppliers in advance aiming at factoring in the possible issues. A good example of how this could be done is through the updating of the Information technology system.

Secondly, the organizations should seek to find out possible alternatives for transport and the distribution where goods could be delivered effectively whenever the necessity arises as this could curb disruption issues.

There is also need to assess the possibilities of business continuity plans of the partners in the supply chain as well as the ones of your own organization. Back-up servers for the protection of the IT department should be harnessed. A given possession of the article portrays that shortage as the case of fuel should be prioritized and curtailed.

Too much reliance on a particular vendor should be avoided since this leads to disparity in the sense that it is acknowledged for dependence by different suppliers to obtain vendors at will (Trent, 2007). Alternative sources of business critical supplies and enhances ease of access. Payment ought to be backed- up also systems to ensure that vendors continue to be paid no matter the payment circumstances.

All the above information as it pertains to the article shows the varied impacts of Olympic Games also the levels of preparedness portrayed by companies as pertains the games. However, the analysis does not clarify the essence of management in the case of London companies also the issues of effects has not been clearly brought out as per the different aspects the Games might impact the companies (Sollish & Semanik,2007).

Therefore, it is important to note that the most suitable steps should be analyzed considering the various contributions of management. In addition to this, it is important to focus on how these vary to suppliers in the case of a great event like the Olympics in London also in ensuring that the main aspects of preparedness in supplies and factors of forecasting as well as, good strategic planning are in their rightful positions.

Supply management concisely describes the process of corporate or institutional buying. This is mainly in terms of buying for internal as well as, external uses of goods and services. In most of the organizational set ups, buying is mainly contractual between the buying and selling parties for the considerable amounts referred to as price (Trent, 2007).

This price is in most cases monetary in nature. In the case of Olympic preparation by the London markets, it is important to realize that in the first place, these companies ought to strategize effectively if they are to win the disruption effects, which might arise in the course of service delivery to customers.

Before the actual Games, which are due by several months, companies are facing major challenges in terms of forecasting. Here, companies should be in the frontline to work out strategies, which will ensure that the problems, which might arise in the due course of operations during the Olympics also the events thereafter, are favorable to their operations.

Let me say that strategizing gets a bit tricky when location cannot be predetermined (Hayes, Gary, and Upton, 1996).

For instance, it is a matter of fact that the companies ought to forecast the places of residence for many fans, which cannot be predetermined as the interest of people, are very dynamic also, every service provider is in the pursuit of giving the best offers to attract the majority of the customers (Cavinato, Flynn & Kauffman, 2004).

Therefore, it gets very hard for companies to project specific places to work on in terms of analyzing how supplies will be enhanced in the respective places. This therefore, brings a tragedy in that it is also not possible to invest equally in all areas and ensure an analysis of supplies in all areas is intensified.

The companies therefore, in preparation for the Olympic Games are facing major challenges in terms of the ease of analysis of the supply needs as well as lack of adequate resources to help in financing the required activities due to fear of taking the great risk of investment in the activity (Tersine, 1982).

The only solution that can be reached in this case is only to ensure that operations at the company’s level are intensified as well as the motivation for companies to take great risks and make major investments.

The second perspective to work from is the issue of the problems that the companies might face during the actual games. Here, it is important to realize that since most of the companies will not have effectively strategized, the risk of shortage of supplies is likely to result.

There are possibilities that due to congestion in the towns which in fact will result from the population seeking to be part of the competition the issue of poor system of supply may arise. Here, the main considerations are the accessibility of the areas of delivery, which most probably will be less accessible since most of the people will be heading to the outlets to get their shares of products (Simchi-levi & Kaminsky, 2004).

On the issue of the major outlets, it will be noted that because of congestion, which might reduce the accessibility of the retail areas, people may opt for the major supply areas where congestion will result and the results of congestion are usually reduced levels of efficiency in operations as well as reduced accountability of transactions.

Therefore, for those who might not have planned, their purchasers will be prone to failures in accessibility as well as shortages of goods.

For those who might have reliable strategies to work with during the period, there is a risk that they might have invested so much in their operational plans that they might not get returns enough to compensate them as well as gaining those profits. In addition, some of the planners might be disadvantaged in that their strategies might work against the actual happenings of the Olympic Games.

When such happens, it is a main disadvantage in that the eventual process and costs of the strategy is useless and the financial result could ruin the business due to the failure of returns from an investment (Simchi-levi & Kaminsky, 2004).

Aftermath of the Olympic Games

The third perspective of the Olympic Games is the factors that may affect the companies after the actual Games. Here, the discussion will take three courses. The first one involves the companies that will have participated in the supply during the actual games, secondly will be the companies that had intended to take part but their strategies did not work for the Games and the third group encompasses those that never participated at all.

The companies that will be favored by the activates of the Olympic Games are bound to get considerably very high profit returns from it and eventually increase their scope of operations as well as booster their cooperate image which might lead to them extending their functionality globally (Rose and Spiegel, 2011, p.1).

Therefore, it is important to note that however, a shortcoming of such participating organization would be a lack of efficient resources to use later, the returns obtained from the venture would be adequate to acquire the organization resources from any location (Cavinato, Flynn & Kauffman, 2004).

For companies that will have been interested in the venture but their strategies failed them, the makeup activity for them will be a hard one since such risks might end up in giving the company a financial crisis which might end up to the closure of companies that lack a wide market share.

However, the companies may recuperate through action of aggressive advertisement to ensure that they re-attain a major market share also to give them the capacity to work for the organizations wellbeing.

The third category of the companies in due consideration of the effects of the Olympic Games as forecasted is the group that will not take part at all in the affairs of the Olympic Games (Preuss, 2000).

Here, let me say that these companies will be improved in terms of the economies of scale of the other companies but dealing with similar products. Therefore, they will directly benefit from the policies that may be made pertaining to their line of service delivery by the legislation.

Conclusion

In summation, it is worth to note that supply chains are very sensitive chains in the delivery of service to customers. Therefore, London ought to take advantage of the activity in their country and maximize from the opportunity in that they should allow for more flexible rates and terms of operations during the Games to accommodate a wider audience for business.

Reference List

Albert, A. 2011. Ready for anything. Supply Chain Management. Web.

Blackstone, H. 1989. Capacity Management. Cincinnati: South-Western Publishing.

Cavinato, J. L., Flynn, A. E., & Kauffman, R. G. 2006. The supply management handbook. New York: McGraw-Hill.

Hayes, R., Gary, P., and Upton, M. 1996. Strategic Operations: Competing through Capabilities. New York: Free Press.

McCarthy, S. 2011. Sustaining Olympic Sustainability. Supply Chain Management. Web.

Pooler, V. H., Pooler, D. J., & Farney, S. D. 2004. Global purchasing and supply management. Boston, Mass: Kluwer Academic Publishers.

Preuss, H. 2000. Economics of the Olympic Games: Hosting the Games 1972-2000, Petersham, Walla Walla Press.

Rose, A., and Spiegel, M. 2009. The Olympic Effect. Centre for Economic Policy Research. Web.

Simchi-levi, D., Kaminsky, P., & Simchi-levi, E., 2004. Managing the supply chain: the definitive guide for the business professional. New York: McGraw-Hill.

Sollish., F., & Semanik., J. (2007). The procurement and supply manager’s desk reference. Hoboken: NJ, J. Wiley.

Tersine, R. 1982. Principles of Inventory and Materials Management. New York: Elsevier Science Publishing.

Trent, R. J., 2007. Strategic supply management: creating the next source of competitive advantage. Ft. Lauderdale: Ross Publishers.

Introduction

This analytical treatise attempts to explicitly review the elements of customer segmentation and execution of the strategic 4Ps of marketing for the 2012 London Olympic Games.

Demographic variables

Potential target markets for the 2012 London Olympic Games come from all parts of the UK. Based on the information provided in the case study, it is essential to review the unique traits of potential customers. The market indicators suggest that the middle-aged group forms the majority of games’ fanatics since they are easily swayed by advertisements and have a passion for sports. Moreover, this group forms the highest percentage of the general population who will strive to be part of the Olympic Games as fans. Since the 2012 London Olympic Games match well with this group, the probability of an instant boom in ticket sales is eminent.

Geographical variables

The 2012 London Olympic Games target clients from across the globe. Specifically, an estimated 7.9 million tickets are to be sold. Specifically, 25% of the tickets are reserved for UK residents with the other parts of Europe and the world purchasing the remaining percentage of the tickets. It is necessary to review the geographic variables in the London resident customers segment. The English culture is the main customs in London and across the UK. Nearly 40% of the total population resides in rural areas. The climate of London is generally cold across the year. The city of London has excellent infrastructure in terms of transport, electricity, clean water, and communication.

Psychological variables

Specifically, the main features that have been identified to attract customers to sports activities include age, economic position, race, and attitude. Reflectively, young adults and middle-aged consumers are likely to form the pinnacle of the ticket purchasing market. This is informed by the fact that these groups are more conversant with the different sports activities and would go the extra mile to buy the tickets. Besides, the two groups have relatively stable disposable income and are willing to attend the events even if they have to travel from the rural parts of the UK.

The city of London has a high number of literate youths, who are the main clients for the Olympic Games services. The London Organizing Committee for the Olympic Games (LOCOG) may take this as a business opportunity. The fact that the participants of the 2012 London Olympic Games share a common language will facilitate an easier market penetration when selling different services and products. Since English is the second most spoken language in the world, the city of London is well positioned to host the Olympics as the residents speak this language. The early adopters for the products and services associated with the 2012 London Olympic will include the UK politicians and youths, who are known to shape the general public opinion on events.

Behavioral element

Most of the Olympic enthusiasts within the city of London and surrounding areas want affordable services, such as tickets, transportation, and refreshments during the games. The demand for services is determined by quality, affordability, and significance attached to them. This is common with the youth in London, who has minimal disposable income as compared to other age groups.

Targeting

The London Olympic market segment is very profitable since it will consist of 25% of the total ticket sales. Besides, with the inclusion of the residents from rural areas, the segment has the potential for growth. Since the London resident customer segment is motivated by quality and affordable services, it fits within the goal of efficiency in service delivery within competitive pricing. The large population in the city of London and it’s surrounding makes the segment actionable.

Positioning

Product positioning is directly linked to the success of business activity in short and the long run, especially for the case of the 2012 London Olympic Games. To achieve the desired goals, a business offering service has to position itself to emphasize the difference between its products and those of its competitors. To diversify market operations, it is necessary to create multiple brands to benefit from different customer segments. In this case, the positioning statement may be as follows:

We have what everyone wants and at considerable prices. The products are unique and of high quality. The prices are also significant; one will get anything they want at an affordable price.

Due to a fair pricing mechanism, competition factors will be positively placed to the advantage of a business. Through offering competitive prices for the services, such as ticketing, it will be within reach to win a high percentage of the 2012 London Olympic Games market share.

Key Points

• The London Olympics’ market segment is very profitable since it will consist of 25% of the total ticket sales.
• The services will be positioned on the principles of affordability and quality.
• The customer segment is extensive, hence sustainable.
• The ticketing strategy should be customized to meet the demands of different customer segments.

Introduction

The 2012 London Olympic games is an international event, which not only brings the world together, but it also reflects a nation’s coeffective synchronization throughout its planning and successful realization of its objectives and the courage to sustain and harmonize all groups associated with the event.

It is also an event that has rapidly developed a considerable contribution to businesses and other leisure related activities that integrates all forms of tourism at an extensive level.

The magnitude of the event comes with the increased growth of both government and corporate involvement, which further complicates the environment that now calls for a high level of resonance from the Olympic committee and event managers who should identify and tune-up with a wider range of stakeholders in order to bring a sense of balance to their needs and main objectives (Iryna 2009, p.10).

For this reason, Human Resource Management (HRM) in any goal oriented organization should be deeply concerned with how to secure and coordinate the various kinds of resources that takes account of facilities, materials, finances, and people, who are the most critical yet the most problematic group since they represent the human resource.

The environment that surrounds the preparation for the Olympic event is such a challenging task since it deals with a handful of both logistical concerns and a diverse team of individuals, and for this reason, the HRM process is an effective way of designing and staging the event successfully by giving a critical look on the overall Olympic context and learning from past mistakes witnessed in other past events of the same magnitude.

Since the Olympic games is a long-awaited event and a highly rated event, it’s always advisable to carefully note the importance of personnel management through the administrative functions it encompasses in both customary and traditional means that work towards bringing employee motivation and satisfaction with things such as rewards, bonuses, compensation, and the overview of work responsibilities.

For this reason, HRM practices are profusely merged with personnel administration to form work groups and effective strategies that will address any challenges that may arise in the course of event planning and job creation which are just some of the primary motivators leading up to the event (Chelladurai & Alberto 2006 p. 65).

An effective HRM practice should is expected to consequently recruit, orient and train good employees who are either employed casually or temporarily, in order to acquaint them with the necessary objectives and targets that call for the adequate use of time and resources (Wilton 2010, p.165).

The changing alignments in HRM strategy and internal practices in the modernized world is more perceptible when effectively implementing business strategy since the event also aims at making profit, while showcasing brilliance in its management planning. A special consideration should therefore be given to the people, who are usually the ones who convert all the other factors of the Olympic process into ‘real’ resources that can be worked upon.

Therefore, a careful way of dealing with the workforce should be very cognizant of their rights, needs and values (Lynn, 2006, p.16). For instance, equipments and facilities such as a computer, basketball, and an ice rink are only resourceful when they are competently used for their purpose in an appropriate manner.

Therefore, from this perspective, the 2012 London Olympic Games Committee should combine numerous features that are universally shared with other nonprofit associations that have inclusive characteristics of the typical sporting sector in the broadest manner, while also deriving values and main cultural features that specifically correlate the Olympic movement and spirit.

The HRM practice for the Olympic Games should be highly prioritized since it is a package of a wide range of products that includes goods and services, which are primary to the event that should also incorporate an elevated consideration into transport, service, food, queues, tickets, the environment, security, and the event merchandises.

In other words, the role of strategic HRM is highly emphasized and the importance of its fitting with the external environment (Chelladurai & Alberto 2006, p 31-65). Therefore, the general event product should be an inimitable blend of activities which are the operational tools for maximum achievement of the much sought after satisfaction, needs, and aims of the Olympic event upon its instigation and conclusion.

The 2012 London Olympic event must then meet all the necessary human needs at all levels which is in concert with the management of human resources. By doing this, the HRM practices will realize a critical process of product planning for its main objectives, while also providing an optimal experience to the audience and the world at large.

As an independent Human Resource Consultant, the following outlooks will help guide the UK Olympic committee for the 2012 games on some fundamental concerns and proposals that will help forge unity among the team that comprises thousands of casual and temporary staff.

The Human Resource Planning and Recruitment Process

The main purpose of the Olympic committee is to formally recognize the main purpose of the event while also monitoring the progress towards realizing these goals, and the committee members should be responsible on matters dealing with finance, marketing, production, operations, and staffing.

The HRM process portrays much more than just the selection an d recruitment of staff and volunteers and the Olympic committee should therefore select a highly competent in-line managers and directors who posses an exemplary experience in such assignments so that they will constantly be their hands, eyes, and ears on the ground in order to oversee the foundation of the overall project while effectives dealing with the personnel who are most instrumental at this stage(Chelladurai & Alberto, 2006, p. 31-65).

The Human Resource (HR) managers should be tasked with the authority to direct the activities of the people in their departments and any other service areas that are interrelated. Although the authority they posses come with the proficiency of their job description within the HR department, they should not over-exert their implied authority and crucial decisions should only be left with the committee members.

Each departmental manager should also synchronize personnel activities for the purpose of a functional authority which will ensure that the HR policies and practices are effectively implemented. However, in order to meet the following obligations regarding unity enforcement, the Olympic committee should include various stakeholders and social partners to sequentially address matters dealing with their efficiency and cost-effectiveness.

Design and implementation of a staffing policy

This policy should encourage equality in the staff hiring process and will emphasize on a thorough examination of job candidates and considerably adhering to their academic or skill qualifications before they are hired. This eliminates nepotism and other forms of corruption associated with the process and significantly promote a diverse pool of job applications.

The potential candidates are also required to undertake various personal tests that will confirm their suitability. This brings in professionalism, efficiency, and credibility within the organizations as only the best will be considered. It will also help the process stick to its ethics by eliminating unacceptable interview questions.

However, this policy can meet its full potential if the hiring decisions take into account the level of degree to which the candidates demonstrate through their past actions the values vital to the project’s philosophy that encourages diverse workplace relationship (Burke & Copper 2005, p. 161).

This is process stands out to be most fundamental since it will put a pervasive mood on the whole event which is likely to be identified with both local and international stakeholders.

This process will ensure that the most skilful and well capable persons are chosen without adhering to the various dimensions of discrimination that may range from race, ethnicity, age, culture, social status, sexual orientation, ethnicity, religion, language, and any other form of preconceived notion. The selection process should not cut off any persons willing to volunteer on the event project and should act on bringing diverse groups together since its one of the main objectives of the whole event.

The hiring process should also be well structured and convenient for optimal interview training systems with an interview panel overseeing the recruit process with appropriate job duty that is relevant with ones profession and qualifications (Wilton 2010, p. 153).

In general, diversity in this process is a first step towards creating an inclusive work environment that will eventually motivate employees, improve the interpersonal skills of staff members, while encouraging creativity and comprehensive innovation.

In order to foster local unity that will eventually pass onto the staff, the recruitment process should also engage the local community and organizations together with other selection methods that will give consider the On Demand Recruiting Services (ODRS) since it’s a specialized recruiting service that works to support short-term projects with no expense of keeping hold of traditional search firms.

Due to the fact that the Olympic event project works on a specific timeline, such recruit services will help in the expenditure planning since they are paid by hour or even on the project worked as an alternative to the percentage fee.

The general concept in this process is to manage diversity that will help promote the appreciation of service, thoughts, and understanding which will help unify our employee differences that can eventually turn into an asset with work being done cooperatively, effectively, and more efficiently.

Design and implement an anti-harassment policy that protects Diversity Group Members

Diverse groups facing any form of harassment and victimization are legally protected in the law and the violation of this law is grounds for punitive action by any disciplinary body. Such claims should first be channeled through departmental heads who should try solving the issue internally. This will help in combating any hate speech or action against minority members. It will motivate competent and talented members join a workplace knowing that they will be judged on merit and not stereotypes (Wilton 2010, p.165).

It will also set in harmony in the workplace and improve productivity as no time will be wasted on unwarranted squabbles. However, this policy should be generalized in the workplace so that everyone is included, and by doing this no one is exceptional and can be prosecuted or have his contract being terminated. This will gradually change mindsets and attitudes between employees and set in respect.

Design and implement a global equity policy

This policy will help to provide all indispensable ingredients needed in the efforts of reducing gender inequalities among the event staff. It will also improve productivity in large through a balanced and fair workplace relations system, in consistent with the organization’s core values. It will provide for equal remuneration of work and its value, and protect genuine workplace representation while enshrining collectiveness.

A global employment equity and representation in the workplace will make a vast difference in the social and economic fate of many around the world, and as well as improving competitiveness among organizational enterprises. In order for this policy to meet its obligations, organizations should raise staff awareness by designing and conveying programmes that support equity aims (Chelladurai & Alberto 2006, p.65).

Train Managers on the requirements of the Employment Equity Act

This creates a cordial working relationship between the manager and employee because diverse personnel comprise a massive set of values, beliefs, understandings, unique information, and ways of viewing the world. Managers will know the rules and regulations needed when working with a diverse workforce, and this will help in elimination of cases associated with rights infringement. This will also help in solving any grievances within the workplace.

It will also help eliminate unfair promotion, training, suspension, test, or demotion of an employee by the managers. Generally it will eliminate stereotype mind-sets at managerial level. However, this fairness in the workplace can be promoted through workshops that will help managers see a positive side of an employee through communication.

Managers should openly exhibit and champion diversity in the workplace by investing more time and effort in recognizing and inviting diverse backgrounds into the Olympic project, and also holding out social events that will foster this understanding (Epstein & Manzoni 2006, p.222).

Implement and Utilize Information Technology to Promote Unity

The introduction of Information Technology (IT) in HRM has over the years had a tremendous significance for both the management-employee cooperation and communication.

The application of IT in the Olympic project can also be used in a wide range of choices to include alternative options within the work organization. The management should then required to enforce these changes that will make way of the use of technological equipments and facilities that will help foster communication for all associated with the Olympic event(August & Jennifer 2004, p.322).

However, in order to bring understanding, the management should train and negotiate with its employees and their representatives to sequentially make relevant changes while ensuring that these arrangements will effectively bring proficiency to those working with IT (Desleigh, Marcia & Sylvia 2006, p.15).

Therefore, by setting up a communication centre, employees are able to communicate with the management and vice versa. The general public can also benefit from this since they can also get any relevant assistance regarding the progress of the Olympic project.

Both the HRM system and employees in the 2012 London Olympic project can all utilize various Wireless Communication equipments, and back-to-back digital interconnectivity systems and equipments that rarely requires anything complicated than the standard exchange of e-mails, making phone calls to colleagues, and coordinating meeting times since such a global event incorporates individuals from different time zones (August & Jennifer 2004, p.322).

These technological equipments can also help both management and employees in the coordination of day-day work, while remotely supporting the numerous business activities within the project. As a result, each managerial department should be suitably quipped with communication equipments that will promote the free-flow of work and communication within such a wide personnel network.

Incase of an urgent notification or meeting, both the management and staff can remotely communicate through teleconferencing and videoconferencing systems if the situation does not call for a personalized meeting. These equipments will also harmonize coordination among staff of different departments in regards to project budgeting, marketing, sales, ands so on.

Since the deployment of IT equipments stands a good chance of eradicating any form of confusion between employees, each staff member in various departments should be provided with communications equipment in order to maximize their potentiality in the project.

The IT form of communication will help eradicate and any type of paper communication that is unreliable. It will also help locate and account for employees who are on site or anywhere else incase of an emergency situation through phone call confirmation or even location them through GPS system.

Conclusion

These policy procedures are meant to improve the overall HRM level of standards since it’s a major component of any organizational setting that strives to attain a certain objective. The Olympic event is heavily swayed by the current social and environmental trends which have dire consequences if ignored.

In this case, a comprehensive HRM system should aim at addressing financial, logistical, and Staff concerns. The prevalent issues concerning employee disunity sets upon stereotypes due to a non-diversified work environment, and the 2012 London games is one event which should detest such claims by promoting unity amongst staff.

The increasingly globalized world also calls for a diverse workforce or else, such an event would competitively ‘get beaten’ in the market place, encompass low productivity rates or face image risk. As an instrument against discrimination, organizational diversity can also be viewed as a strategic resource in eliminating this social-vice.

Unity can also be promoted effective if employees are duly compensated for an outstanding job done and should not be selective in awarding them. However, some disunity also does arise due to a shortfall in communication and the use of technology can prove to be a tremendous achievement in the overall London Olympic Games.

Bibliography

Burke, J. R. & Copper, L. C. 2005, Reinventing Human Resource Management challenges and new directions, Routledge, New York. p. 161-162.

Chelladurai, P. & Alberto, M. 2006, Human resource management in Olympic sport organizations, Volume 3, Human Kinetics Publishers, Illinois. p. 31-65.

Desleigh, D. J., Marcia, J. S. & Sylvia, R. 2006. Assistive technology in the workplace. Elsevier Health Sciences. Philadelphia. P 13-15.

Epstein, J. M., & Manzoni, F. J. 2006, Performance measurement and management control: improving organizations and society, Emerald Group Publishing. West Yorkshire, England. P 214 – 222.

Iryna, S. 2009, Managing Diversity in the Workplace,GRIN Verlag, Norderstedt, Germany.

Lynn, W. 2006. Human Resource Management for Events: Managing the Event Workforce, Elsevier, Massachusetts. P 14-16.

August, E. G. & Jennifer, H. M. 2004, Communication Technology Update, Focal Press Massachusetts. P 321-322.

Wilton, N. 2010. An Introduction to Human Resource Management, SAGE Publications California. Pp.153 -165.