Posted: August 19th, 2022

Use of Decision Tree Model in Sport Management Case

Use of Decision Tree Model in Sport Management
Case
Writer: Cevda Mumcu & Kimberly Mahoney
On-line Pub Date: January 15, 2020 | Authentic Pub. Date: 2018
Topic: Decision Assessment, Occasions Management
Stage: | Kind: Oblique case | Size: 1718
Copyright: © 2018 Human Kinetics, Inc.
Group: | Group measurement: Small
Area: Northern America | State:
Business: Promoting and market analysis| Sports activities actions and amusement and recreation actions
Initially Revealed in:
Mumcu, C. , & Mahoney, Ok. ( 2018). Use of determination tree mannequin in sport administration. Case Research in
Sport Management, 7 (1), 1– three.
Writer: Human Kinetics, Inc.
DOI: http://dx.doi.org/10.1123/cssm.2017-0036 | On-line ISBN: 9781529706819
© 2018 Human Kinetics, Inc.
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Summary
When people have to decide, they typically face alternate options and a few uncertainty.
Figuring out alternate options and anticipating outcomes in a scientific means offers worth in higher
decision-making. Decision bushes Help to make clear the alternatives, dangers, financial beneficial properties, and different
info concerned in the choice. In consequence, managers could make an knowledgeable determination when
selecting the choice that gives the perfect internet achieve and whether or not the web achieve is worth it to
pursue. As such, this case presents a situation in which the game advertising supervisor of the native
sports activities fee is working with the conference middle to convey a sporting occasion to town in
order to boost town’s picture and generate optimistic financial impression. The supervisor is confronted
with evaluating three alternate options (Occasion A, Occasion B, or neither) and making a advice
to the sports activities fee and conference middle executives concerning which occasion to pursue, if
any. This case offers a chance for college kids to observe utilizing this strategic administration
software to help in systematic decision-making whereas investigating the occasion bidding course of.
Case
Key phrases : determination bushes, occasion administration, strategic administration, systematic determination making
As the game advertising supervisor of the native sports activities fee (an arm of the native conference and guests
bureau) in Jeffersonville, U.S., you’ve gotten been requested to work with the conference middle to convey a sporting
occasion to the world in order to boost town’s picture and generate extra income in the neighborhood. This
Midwestern metropolis has a various metro inhabitants of simply over 2 million individuals with a median family revenue
of $43,850. Jeffersonville is centrally positioned inside the state and inside the area. The town presents over four,500
resort rooms in the downtown space and an incredible meals scene. There’s each vibrant nightlife and quite a few
household actions in the world. The town is house to a minor league baseball workforce and an NBA workforce, in addition to
a quantity of faculties and universities in the world. The town has a historical past of internet hosting profitable occasions, each
giant and small, and metropolis officers are working to boost Jeffersonville’s fame as an occasion and tourism
vacation spot.
A conference and guests bureau (CVB) is taken into account a vacation spot advertising group (DMO) working
to draw occasions and guests to a neighborhood. DMOs, together with CVBs, signify a selected vacation spot and
Help long-term growth of communities by a journey and tourism technique (Locations Worldwide,
2017). CVBs are usually not-for-profit organizations funded by native authorities (typically by resort/mattress
taxes). CVBs work to draw occasions to their metropolis and in doing so will help assembly and occasion professionals
with the planning and coordination of their occasions. As well as, CVBs additionally encourage enterprise vacationers and
guests to go to native historic, cultural, and leisure websites (Locations Worldwide, 2017).
It’s common for rights holders organizations (RHOs; those who personal the rights to a number of occasions) to make the most of
a request for proposals (RFP) course of to solicit proposals from potential host cities and venues (Greenwell,
Danzey-Bussell, & Shonk, 2014). Examples of RHOs embrace nationwide sport governing our bodies, the Nationwide
Collegiate Athletic Affiliation (NCAA), and the Nationwide Soccer League (NFL), in addition to smaller grassroots
applications, regional organizations, or another group that owns occasions which might be bid out and/or awarded
(Nationwide Affiliation of Sports activities Commissions, 2017). CVBs sometimes take the lead in making ready a proposal
in response to an RFP as half of their efforts to draw occasions to town. These proposals typically require
coordination with a quantity of stakeholders, together with the CVB, native accommodations, and services.
Many cities with a heightened give attention to attracting sporting occasions, resembling Jeffersonville, additionally make the most of a sports activities
fee or sports activities council. The sports activities fee could also be an arm of the CVB or could also be a stand-alone
group, however, regardless of the construction, their perform/goal is identical: to draw occasions to the
metropolis that convey guests and optimistic financial impression, although the sports activities fee is mostly centered
on sporting occasions. As such, the mission assertion for Jeffersonville’s CVB and sports activities fee is to
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strengthen the notice of town as a conference and customer vacation spot, attracting people, households,
and companies from all over the world to extend income and stimulate financial growth and development
for the neighborhood.
As the game advertising supervisor with the native sports activities fee, you seek for various occasions to convey to
town and also you come throughout Occasion A and Occasion B, each of which is able to settle for proposals/bids for internet hosting rights
in the close to future. Jeffersonville has the services and Help construction to Help pursuit of both occasion.
Occasion A: Women Volleyball Junior Nationwide Championships
This annual occasion contains over 1,200 groups competing throughout 5 divisions and a number of age teams. The
occasion attracts roughly 18,000 individuals and as much as 30,000 spectators from throughout the nation. The occasion
requires four move-in days, 10 days of competitors, and 1 move-out day. Traditionally, the occasion has been held
in late-June to early-July and the common keep per workforce is four.5 nights. Based mostly on knowledge shared by earlier
host organizations, the financial impression on the host metropolis is in extra of $50 million. It is very important be aware
that this high-profile occasion has garnered nice curiosity from cities throughout the nation and has been hosted by
a lot bigger cities in current years, each of which can lower the probability of a profitable bid for town
of Jeffersonville. Jeffersonville meets or exceeds all necessities of the RFP, although bigger cities typically have
better assets and facilities to supply potential RHOs and their respective occasions. Due to this fact, submitting a
proposal to host Occasion A would require a specific emphasis on the distinctive benefits of Jeffersonville as a
host for the occasion.
Occasion B: State Excessive Faculty Coaches Affiliation Conference
The flagship occasion of the coaches’ affiliation takes place yearly throughout the summer season. Practically 2,000 excessive
college coaches from a range of sports activities, athletic administrators, and directors attend this two-day occasion, alongside
with roughly 80 exhibitors and sponsors. The conference kicks off with a golf scramble the day prior
held at an area golf course with roughly 250 individuals. Securing a central location inside the state
for his or her conference is a vital consideration for the coaches’ affiliation. Jeffersonville has hosted this
occasion efficiently a number of occasions and has change into a trusted host metropolis for the State Excessive Faculty Coaches
Affiliation Conference.
On account of present finances constraints, you should establish the perfect occasion to pursue, if any. Your preliminary response
could also be to pursue the extra prestigious occasion, however a prestigious occasion doesn’t routinely translate into
elevated income for all stakeholders. Then again, your preliminary response could also be to pursue the smaller
occasion the place you understand the best probability of being awarded the occasion though it could not present
the popularity to Help appeal to bigger occasions in the long run. There are a selection of elements at play and there may be
no easy answer. The game advertising supervisor is finest served to make the most of a strategic strategy to look at the
obtainable knowledge and make a advice concerning which occasion to pursue.
So as to evaluate the attainable outcomes of bidding and internet hosting various sporting occasions and never bidding
for an occasion in any respect, you determined to make use of a call tree mannequin as a software. Previous to setting up the choice tree,
you recognized the price of bidding for Occasion A and Occasion B, the likelihood of being awarded Occasion A and Occasion
B, the price of internet hosting Occasion A and Occasion B, the likelihood of a wonderful occasion execution for Occasion A and
Occasion B, and the estimated monetary profit ensuing from a wonderful occasion and a mediocre occasion for Occasion
A and Occasion B. All the required info is supplied in the payoff desk (see Desk 1).
Desk 1: Payoff Desk for Bidding and Internet hosting Sporting Occasions
Occasion A Occasion B
Value of bidding $200,000 $10,000
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Likelihood of being awarded .1 .9
Value of internet hosting $1,000,000 $60,000
Likelihood of internet hosting efficiently .7 .9
Monetary profit anticipated by a wonderful occasion (together with income for the
conference middle and financial impression for town) $50,000,000 $three,750,000
Monetary profit anticipated by a mediocre occasion (together with income for the
conference middle and financial impression for town) $38,000,000 $1,600,000
The chances are subjective and are established primarily based on business information and expertise, as effectively
as case-specific business analysis. On this occasion, Occasion A is a big, nationwide occasion with robust anticipated
financial impression for the host neighborhood. Due to this fact, it traditionally attracts a quantity of proposals from throughout
the nation annually. Because of the competitors and different elements offered beforehand, the likelihood of being
awarded Occasion A is .1. Then again, Occasion B is a smaller, state-based occasion which limits the quantity
of attainable host cities. Along with the lowered competitors, Jeffersonville has efficiently hosted Occasion B
a number of occasions beforehand, has a longtime relationship with the coaches affiliation, and town is centrally
positioned in the state, which is necessary to the occasion organizers. Due to this fact, the likelihood of being awarded
Occasion B is .9.
Further points could also be considered when establishing the possibilities for internet hosting every occasion
efficiently. For Occasion A, Jeffersonville meets all the necessities as outlined in the RFP, which means town
has the infrastructure and assets wanted to host the occasion. Nonetheless, as this may be a brand new occasion for
Jeffersonville there could also be unanticipated challenges and bills that impression the likelihood of success. For
Occasion B, Jeffersonville not solely presents the infrastructure and assets wanted to host the occasion, however, most
importantly, has a confirmed observe document of efficiently internet hosting Occasion B. Due to this fact, the possibilities for internet hosting
every occasion efficiently have been established at .7 for Occasion A and .9 for Occasion B.
So as to Help the executives from the sports activities fee and conference middle decide on which
sporting occasion to pursue, if any, please carry out the next by utilizing the knowledge supplied in the pay-off
desk for the bidding and internet hosting sporting occasions:
• 1.
Assemble a call tree as the game advertising supervisor of the native sports activities fee and
conference and guests bureau (CVB) for Jeffersonville.
• 2.
Evaluate the three alternate options (Occasion A, Occasion B, or not bidding for any occasion) for his or her anticipated
values and internet beneficial properties.
• three.
Put together your advice to the executives from the sports activities fee and conference middle
and be ready to elucidate your determination tree mannequin and the popular selection.
Dialogue Actions/Questions
• 1.
Calculate the anticipated worth and the web achieve for Occasion A with the brand new likelihood of .three for being
awarded the occasion, and evaluate the brand new end result for Occasion A with the result of Occasion B from
earlier task.
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• 2.
What would your advice to the executives be now?
• three.
What are three major take-aways from this train?
References
Locations Worldwide. (2017). Ceaselessly requested questions. Retrieved from
https://destinationsinternational.org/general-information/frequently-asked-questions
Greenwell, T.C. , Danzey-Bussell, L.A. , & Shonk, D.J. (2014). Managing sport occasions. Champaign, IL: Human
Kinetics.
Nationwide Affiliation of Sports activities Commissions. (2017). Sports activities commissions 101. Retrieved from
https://www.sportscommissions.org/Portals/sportscommissions/Paperwork/About/
Sports activities%20Commissions%20101.pdf
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