Report toThe Commonwealth Games Organizing Committee|
Assessment of Macro-Environment Forces&Marketing Mix|
29th November 2010|
This report aims to assess the impact of macro-environmental forces on the credibility of the recent Commonwealth Games held in Delhi, India and provide recommendations on strategic marketing improvements that could be made in the delivery of future international sporting events. In doing, this report shall make reference to the seven P’s of the marketing mix strategic marketing tool. This report is intended for the sole use of the Organizing Committee to the 19th Commonwealth games in India and should not be distributed further without prior consent.
MACRO ENVIRONMENTAL FORCES
The 19th Commonwealth Games held in Delhi, India and the country expected two million tourists as well as about 10,000 athletes from 71 teams representing 54 Commonwealth member states for the Games which played between 3- 14 October 2010.1 In preparation, the Indian government dedicated a big budget of over US$1.6 billion, the largest yet for any Commonwealth Games, to prepare the infrastructure and facilities for the games.2 The 2010 commonwealth games was to be the biggest sports event that India had ever hosted, and considered to be a big opportunity to enter the world stage for the hosting of other sports events such as the Olympics and football World cup. But what went wrong and now it is still considered as if it is a failure or a success. As organizations such as Commonwealth Games are affected by macro environment factors which cannot be controlled by the organizations themselves, this case will be analyzed in terms of the macro environmental factors. These factors are changing constantly and organizations should be able to adapt to these changes to be successful in markets. These factors can be listed as political, economic, socio-cultural, technological, environmental and legal. The factors are known as PESTEL ANALYSIS and can be adapted to the games as below. * POLITICAL FACTORS
Government policy has a huge influence on the laws and regulations which restricts organizations; this is referred to as the organizations political environment. It is very important to know how stable the political environment and the government policies are. Understanding the government view on culture, religion, fiscal policy and marketing ethics plays a role on the organization’s position and success. The first and overriding political factor which influenced the organization of the games is the underlying Indian government structure. Under the constitution of India adopted 1949 the unified territories retained some control in the governance of their own jurisdiction as detailed in the Seventh Schedule of the Constitution with only residual powers being transferred to the state.3 As the games were hosted in both territories of Delhi and Noida (location of athletes’ village) two authorities, were involved in policy setting. Furthermore the Delhi Development Authority and the Delhi Police department are under central government control. The differing requirements of each party involved in policy setting resulted in significant delays in the decision making process. Despite beginning the work in 2006, the Jawaharlal Nehru Stadium, which was going to be the home of the track and field events, was still a long way from completion with less than four months before the opening ceremony. Also the construction of athletes’ village and some infrastructure like hotels, roads, bridges were also behind schedule. While all the world press was pointing out that the preparation was running late, the governments were still blaming each other for not cooperating for the works. The situation became even worse when allegations of corruption started to be talked on the news all around the world. This situation can be explained as a result of political factors of the...