Learning Goal: I’m working on a management discussion question and need an explanation and answer to help me learn.
2.2 Action Required: (Knowledge Application-Apply)
This activity is important because as a manager, you should understand the factors that affect a firm’s profitability and long-term survival. According to the resource-based view, a company can gain competitive advantage from resources that are inimitable and rare.
The goal of this exercise is to demonstrate your understanding of the resource-based view by writing a conclusion in your words after reading a case study.
Case Analysis (The Resource-Based View in Sports)
Strategy and sports met in the movie Moneyball. The Oakland Athletics applied statistical analysis to the evaluation of players and surged in performance. The team’s analysis method, called sabermatics, was unique in how it applied objective data to predict future player performance. The Athletics were able to recruit players at a lower cost due to their proprietary knowledge. Even after competitors started using statistical analysis, the Athletics benefited from their early knowledge, capable staff, and history of decision making. All of this, of course, translated into profit for the team owners.
Competitive advantage comes from unlikely places in other sports as well. Researchers found that NCAA football programs benefit from staff diversity. Racial diversity among coaches and varied past experiences predict success. NBA basketball teams are more successful as they gain shared experiences. After years together on a team, just like after years together in a workplace, players/coworkers have a shared understanding of how work is done.
Financial resources are of huge benefit to the few universities with successful sports programs. Paying top coaches, building impressive athletic facilities, and fan support, all contribute to intangible gains such as reputation, stronger shared feelings of winning history, and motivation.
But what happens with a team suddenly loses its competitive advantages? In 1986, Southern Methodist University in Dallas, Texas, was dealt what is called the “death penalty” in college sports. After years of paying players and their families, among other serious violations of NCAA rules, the team was punished with the cancelling its entire 1987 season. This damaged recruiting efforts, fundraising, reputation, and shared experiences among staff and coaches to that point. It was 20 years before SMU was in another bowl game.
Read the case about the resource-based view in sports and write the conclusion of this case in your words. Create a discussion board thread and upload your answers. (Min words recommended 100-150)
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