Copyright 2002, Professor Jerome M. Katrichis


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D.    Corporate Culture


Corporate offices are held in Fort Lauderdale, Florida, where the majority of decisions regarding finances, store design, marketing, and pricing are made under the direction of CEO Martin Hanaka.  Decisions regarding product mix are made at the regional level and are tailored to customer preferences at individual stores; thus the corporate culture can be classified and semi-bureaucratic. The decision making process is reactive to the changes in the industry and customer needs and is therefore, market driven.


The company believes that they have a good relationship with their associates, and they tend to promote new store management from existing personnel.  There are currently no bargaining units within the Sports Authority’s employment structure.  Management and employees work together to provide strong customer service.  Selling and non-selling functions are segregated to place a large focus on the customer.


The corporation’s management continues to make improvements to information systems, inventory management, product selection, and store designs to ensure that Sports Authority maintains its standing as the leading sporting goods retailer.  Public perception is extremely important to Sports Authority’s strategy.  It is imperative that the company conveys the perception of the “authority on athletics” by continuing to expand their business through capital expenditures.


Poor corporate decisions regarding expansion have hurt the corporation financially.  Reorganization strategies over the past three years have focused on closing poorly performing stores, debt reduction, and executive reorganization.  No new expansion is expected for 2001 but the Sports Authority will focus on refurbishing existing stores, as they continue to lead the industry in sporting goods sales. 






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