The Business Of The PGA Tour Report Examples

With every business or organization, there is a business model. Each individual industry tends to have a standard model in which organizations conduct their business. However, this is not always the case. Take for example the PGA Tour. Rather than follow the patterns of most other sports organizations and teams, this company has created its own model in order to make the best use of its resources. By making the best use of its limited resources, supporting charities and players, and creating a strong business culture, the PGA Tour creates an experience which retains its fans, players, and partnering companies.
In this presentation, the speaker discusses and explains the intricacies of a sport-centered business, the PGA Tour. This organization combines many of the individual organizations found in other sports, such as the players’ union, the league, and the tournament. As such, this business has to facilitate many aspects of the sport of golf. Equally as surprising is the relatively small size of the organization, which only supports about 650 employees across the country to run the league and events pretty much all around the year. The rest of the staffing comes from a large staff of volunteers who run events each weekend throughout the year. In order to pull in these individuals, the company needs to continually promote the sport and league. In addition, the tour also works to promote the financial well-being of its less talented players who have less opportunity to gain money. As such, the company constantly works to maintain their image and employee satisfaction.
Equally as surprising is the business model to which this company subscribes. As opposed to being a for-profit company, most of the PGA Tour runs on a 501c3 not-for-profit model. This model itself radically changes the goals of the organization. Instead of trying to gain higher and higher revenues for stock holders and partners, this company works to make money for charities with which they partner across the country. This varies radically from the traditional sports model, as sports such as basketball, baseball, football and many others feature teams owned by individuals and supported by share holders. These sports, however, are able to gain their capital through these individuals and groups. In contrast, PGA Tour builds relationships with entities headquartered in the cities where their events are taking place. By doing so, the tournaments often have more of a community feel or could run directly by the charity which it is supporting. Consequently the sport gains an even greater sense of community pride than perhaps any other sport.
Just as important to this model is the culture created within the employees of the company. Rather than employ purely fans, the PGA Tour attracts people of various skill sets and interest in golf merely due to this reputation and branding. True, the company may not offer the best pay, as the speaker admits, but they try to make up for it in bonuses and other side amenities. Additionally, the small nature of the organization allows for individual attention and personal communication at all levels. These small elements must be working, as even those with no initial interest in golf often stay for many years.
Personally, I think that the business model of the PGA Tour is unique and ingenious for such a well known brand. Instead of flaunting their achievements and position, they truly strive to make things better for the sport, the players, their employees, their partners, and the community as a whole. As such, the company seems to exhibit steady yet positive growth. Such a model or combination of elements would be beneficial to any number of companies in existence today, large or small.