Deck 1: The Sport Management Challenge and the Branded and Licensed Sport Product Industry

Question 1

Under Armour is the fastest-growing sport apparel and footwear brand in the world. The estimated worth of the company is $1 billion, with revenues of $1.4 billion in 2011.

Answer 1

True

Question 2

A sport organization is a group of people working together to achieve a common purpose. These organizations exist to produce products or services that can't be produced by a single individual working alone.

Answer 2

True

Question 3

In 2011, sporting goods equipment sales rose 2.5 percent, from $2.4 billion in 2010, to $120.9 billion. The largest categories of sporting goods are: fishing ($2.9 billion); golf ($2.5 billion); and tennis ($1.8 billion).

Answer 3

False

Question 4

Nike, the leader in footwear and apparel sales, is estimated to be worth $15 billion, while industry runner-up Adidas is valued at $5 billion. In 2011, Nike's apparel sales reached $5.4 billion, with overall sales topping $18 billion ($7.6 billion in North America, $3.8 billion in Western Europe, and $4.8 billion from China and emerging markets.

Question 5

A trademark is defined under the Federal Trademark Act as "any word, name, symbol, or device or combination thereof adopted and used by a manufacturer or merchant to identify his goods and distinguish them from those manufactured or sold by others."

Question 6

Licensing is defined as a contractual method of developing and exploiting intellectual property by transferring rights of use to third parties without the transfer of ownership. The "third parties" in this instance are the licensees, the companies that manufacture these products, which hold licenses to manufacture and sell products bearing the logos and marks of professional and amateur sport entities.

Question 7

Industry giants Adidas, Nike, and Puma have been universally and repeatedly criticized for paying low wages and treating workers poorly. To the question of how to improve performance for these organizations, Robert Owen's answer was to make the workplace a community and treat people well.

Question 8

Today, successful sport organizations like New Balance know they are open systems. Sport organizations must cultivate a work force capable of doing the work necessary. Each of these environmental factors must be recognized and responded to in managing the organization.

Question 9

One of the most recent examples of conceptual sport entrepreneurship is Vineyard Vines' partnership with NASCAR's Daytona 500.

Question 10

Contingency theory states that a single answer exists for how to improve organizational performance. This is why one specific manner of dress is favored by all golfers on the PGA and LPGA circuits.

Question 11

The following former gymnast is identified as "a Michael Jordanesque" figure in his home country and used his image to found an eponymous athletic footwear company in 1990.

A) Fred Perry
B) Jean Rene Lacoste
C) Lei Feng
D) Li-Ning

Question 12

The traditional definition of management includes each of the following except:

A) Responsibility for performance.
B) The coordination of human, material, technological, and financial resources needed for an organization to achieve its goals.
C) The designing of the tasks and organizing of the work to be done.
D) The provision of the sense of direction and purpose that can unify diverse people in a productive enterprise.

Question 13

According to Henri Fayol, management must perform which five key functions?

A) Planning, organizing, contending, commanding, and coordinating.
B) Planning, ordering, commanding, coordinating, and controlling.
C) Planning, organizing, commanding, coordinating, and controlling.
D) Preparing, organizing, commanding, coordinating, and controlling.

Question 14

Which of the following does not include three functions identified as key managerial roles by Henry Mintzberg?

A) Disturbance handler, facilitator, spokesperson.
B) Figurehead, leader, disseminator.
C) Liaison, resource allocator, monitor.
D) Monitor, negotiator, entrepreneur.

Question 15

According to Forbes magazine, each of the following is in the top five of the most valuable sport franchises in the world except:

A) Bayern Munich
B) the Dallas Cowboys
C) Manchester United
D) the New York Yankees

Question 16

The examples of the sale of memorabilia connected to MLB stars Derek Jeter and his achieving 3,000 hits and a record-setting sale of a Babe Ruth game-worn jersey is an example of which of the elements that define the new sport management environment?

A) Innovation
B) Integrity
C) Speed and flexibility
D) Sustainable growth
E) Quality

Question 17

Since the sports trading card market today is only 30 percent kids, Topps is looking to the use of smartphone technology to continue to connect with more "techcentric" young consumers. This is an example of which of the elements that define the new sport management environment?

A) Innovation
B) Integrity
C) Speed and flexibility
D) Sustainable growth
E) Quality

Question 18

Recently, NASCAR announced the formation of the NASCAR Team Licensing Trust to coordinate sales for many top racing teams. NASCAR also acted to establish connections with toy industry giant and model train manufacturer Lionel to make the die-cast cars. This is an example of which of the elements that define the new sport management environment?

A) Innovation
B) Integrity
C) Speed and flexibility
D) Sustainable growth
E) Quality

Question 19

Prior to the 2010 FIFA World Cup, Nike announced that each team wearing its products during the competition will wear jerseys made almost entirely of plastic models culled from landfills in Japan and Taiwan. This is an example of which of the elements that define the new sport management environment?

A) Innovation
B) Integrity
C) Speed and flexibility
D) Sustainable growth
E) Quality

Question 20

The branded and licensed product industry relies heavily on the authentication process to certify claims such as "game-used." This is an example of which of the elements that define the new sport management environment?

A) Innovation
B) Integrity
C) Speed and flexibility
D) Sustainable growth
E) Quality

Question 21

In the "Epilogue" section of the chapter, we examine how Under Armour (UA) is seeking to sell to a new market segment. How might managers at UA adapt Henri Fayol's five key management functions to address the challenge of reaching this new market segment?

Question 22

In the "Eplogue" section of the chapter, we examine how Under Armour (UA) is seeking to attract a new market segment. Which three of Henry Mintzberg's ten managerial roles would be most helpful for UA managers to address the challenge of reaching this new market segment?

Question 23

In the "Eplogue" section of the chapter, we examine how Under Armour (UA) is seeking to attract a new market segment. Identify and explain the five factors that comprise the new sport management environment, and explain how UA would use each of these elements of the new sport management environment to get a new product to reach this new market segment.

Question 24

In the "Management Exercise" at the end of the chapter, we review the recent phenomenon known as "Linsanity." Explain the elements of this phenomenon, and explain how managers associated with Jeremy Lin could use the tenets of stakeholder theory to manage Lin's brand.

Question 25

In the "Management Exercise" at the end of the chapter, we review the recent phenomenon known as "Linsanity." Explain the concept related to systems theory and contingency theory, and explain which would be more useful to Jeremy Lin's brand management team in both protecting Lin's brand and developing new revenue sources.