Redhawks Consulting

Women’s Tennis Association Asian-Pacific Office

Key Concern

• To determine the appropriate staffing of the newly formed Women’s Tennis Association Asian-Pacific Office.

Outline

• Key Concern• PESTEL Analysis• Identification of Alternatives• Key Success Factors• Recommendation• Phases of Implementation• Timeline• Budget• Summary

PESTEL AnalysisPolitical • Communist State

• No substantial political opposition• Subversive groups: Falungong Spiritual Movement; China Democracy Party• Government discretion on hiring individuals and starting a new business

Economic • Population: 1.33 billion• Government controlled currency exchange rate• Inflation: 4.8%• GDP per capita: $5,300

Social • Primary Ethnic Group: Han Chinese 91.9%• Languages: Standard Chinese, Mandarin• Religion: Daoism, Buddhism, Christianity, Muslim• Median age: 33.6 years• Literacy Rate: 90.9%• Growth Rate: 0.629%

Technological • Cell phones: 461.1 million• Radio: 417 million• Television: 400 million• Internet: 162 million• Government censorship of Internet usage

Ecological • Climate: Very diverse; tropical in South and Subarctic in North• Natural Resources: Coal, iron, ore, petroleum, natural gas, mercury, tin, tungsten• Environmental Issues: Air pollution, water shortages, deforestation, desertification

Legal • Civil law derived from Soviet and Continental civil code legal principles

Identification of Alternatives

1. Ethnocentric Approach2. Polycentric Approach3. Geocentric Approach4. Governmental Approach

Alternative 1:Ethnocentric Approach

Strengths• Know the headquarters' and company methods/procedures• Qualified candidate• Respect for WTA• Familiar with WTA brand values, attributes and office culture• Resemble look and feel of other offices around the globe

Weaknesses• Asian operation would not be marginalized• Would not have time to teach Chinese employees • Lack of knowledge of China and culture• May not speak foreign language

Opportunities• Career advancement• Learn more about the sport• Development of global outlook• Exposure to different nationalities• Can be taught about the company

Threats• Chinese citizens feel threatened• Political opposition• Hostility among other culture

Alternative 2:Polycentric Approach

Strengths• Cost containment• Nationalism• Employee morale• Understand local market• Speak local language• Understand political system of China, wouldn’t offend government

Weaknesses• May not be able to effectively communicate with headquarters• Cultural variations with other WTA offices

Opportunities• Career advancement• Learn more about the sport• Development of global outlook• Exposure to different nationalities• Can be taught about the company

Threats• May not be available due to Olympic Games • May not respect WTA or fully represent them• May not have time to plan and execute premier tournament

Alternative 3:Geocentric Approach

Strengths• Best candidate for the position• Not culture specific

Weaknesses• May have an overwhelming number of candidates apply• Unknown probability of company knowledge

Opportunities• Career advancement• Learn more about the sport• Development of global outlook• Exposure to different nationalities• Can be taught about the company and sport

Threats• Political opposition• Hostility among other culture/may not fit in

Alternative 4:Governmental Approach

Strengths• No political pressure• If Chinese, know more about culture• If Expatriate, know more about WTA

Weaknesses• May not be the best candidate• May be a “Yes” man• May not be accepted by the rest of the company• May not be able to effectively communicate with headquarters• Cultural variations with other WTA offices

Opportunities• Career advancement• Learn more about the sport• Development of global outlook• Exposure to different nationalities• Can be taught about the company

Threats• May not be available due to Olympic Games • May not respect WTA or fully represent them• May not have time to plan and execute premier tournament

Key Success FactorsWeights Ethnocentric Polycentric Geocentric Government

Compensation 0.1 1 0.1 3 0.3 1 0.1 3 0.3Technical Competencies 0.05 3 0.15 2 0.1 2 0.1 1 0.05

Adaptability 0.2 3 0.6 1 0.2 2 0.4 1 0.2

Leadership 0.1 2 0.2 2 0.2 2 0.2 1 0.1

Country Understanding 0.2 1 0.2 3 0.6 2 0.4 3 0.6Company Understanding 0.2 3 0.6 1 0.2 2 0.4 1 0.2

Cultural Understanding 0.15 1 0.15 3 0.45 2 0.3 3 0.45

1 2 2.05 1.9 1.9

Recommendation

• Alternative 2:Polycentric Approach

Phases of Implementation

I. Establishment of Vice PresidentII. Hire Vice President & DirectorIII. TrainingIV. Develop StaffV. Plan & Execute First EventVI. Milestone ReviewVII.Self-SustainabilityVIII.Long-Term Planning

Phase I:Establishment of Vice-President

• Timeframe: Upon Approval of Plan• Vice President of Strategic

Management• Duties:– Oversee Regional Offices– Develop & Execute Long-Term Plans

Phase II:Hire Vice-President & Director

• Timeframe: Upon Appropriate Approval• Search/Hiring Committee– David Shoemaker, COO– Board Representation– Human Resources– External HR Expert

• Preliminary Recommendation:– U.K. Regional Director

Phase III:Training

• Timeframe: 0-4 months• Training of V.P. in Chinese Culture– First Priority– Examples: Power Distance, High/Low

Context, Values• Training of Director– Location: WTA Headquarters (U.S)– Examples: Mission, Goals, Values

Phase IV:Develop Staff

• Timeframe: 4-6 months• Hiring of all staff to ensure success• Covers all aspects of sport management– Marketing/Promotions– Events– New Media/Sports Information– Ticketing– Concessions– Legal– Human Resources– Merchandising/ Licensing

Phase V:Plan and Execute First Event

• Time Frame: First 12 months• Pro-Am Tournament• New Staff in charge

Phase VI:Milestone Review

• Time Frame: Following First Event• Evaluation of new staff• Conducted by the Vice President• Criteria for evaluation:– Ability of new director– Employee Capabilities– Overall success of event

• Secondary Evaluation

Phase VII:Self-Sustainability

• Time Frame: Upon First Successful Milestone Review

• Vice-President leaves• Gives the new staff control.• Serves as a consultant as needed.

Phase VIII:Long-Term Planning

• Time Frame: 5 years and beyond• Future Expansions:– Larger Tournaments for WTA- Asia Pacific– Expansion of Offices

Timeline

Phase I: Establishment of Vice PresidentPhase II: Hire Vice President and DirectorPhase III: Training

Phase IV: Develop StaffPhase V: Plan and Execute First EventPhase VI: Milestone ReviewPhase VII: Self-SustainabilityPhase VIII: Long-term Planning

0 3

6 9 12 +Months

BudgetExpense Budget (US$)

Chinese Personnel 181,357.00

Vice President Position 100,000.00

Expenses related to Vice President Position 63,147.00

Total: 344,504.00

Redhawks Consulting

Women’s Tennis Association Asian Pacific Office