Oxford Cambridge and RSA Level 3 Cambridge Technical in

Oxford Cambridge and RSA

Level 3 Cambridge Technical in Sport and Physical Activity05872

Unit 21: The business of sport

Tuesday 12 June 2018 – MorningDuration: 1 hour 30 minutesC404/1806

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INSTRUCTIONS• Use black ink. • Complete the boxes above with your name, centre number,

candidate number and date of birth.• Answer all the questions.• Write your answer to each question in the space provided.• If additional answer space is required, you should use the lined

page(s) at the end of this booklet. The question number(s) must be clearly shown.

INFORMATION• The total mark for this paper is 70.• The marks for each question are shown in brackets [ ].• Quality of written communication will be assessed in the question

marked with an asterisk(*).• This document consists of 16 pages.

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Question No Mark

Section A: 1-12 /30Section B: 13 /5

14 /515 /516 /5

Section C: 17 /20Total /70

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Section A

Answer all the questions.

1 Which one of the following characteristics is typically associated with the voluntary sector?

Put a tick () in the box next to the one correct answer.

(a) Fulfils a specific social purpose

(b) Is funded by local government

(c) Is funded by sales revenue

(d) Aims to achieve profit targets

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2 Identify two organisational characteristics of an international sports organisation.

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3 The business environment model is split into three sub-environments. The micro-environment is one of these.

Name one type of organisation or individual who make up part of the micro environment.

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4 Which one of the following would be classified as being part of the public sector?


(a) Sports betting company

(b) School/college

(c) Community sports club

(d) Sports retail outlet

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5 Fundays Ltd is a UK based theme park organisation; it has several parks located close to coastal holiday destinations. Which one of the following contracts is likely to be used for most of its workforce?


(a) Permanent

(b) Voluntary

(c) Full time

(d) Seasonal

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6 Relationship marketing is a strategy linked to customer attraction and retention.

Identify four characteristics of ‘relationship’ marketing.

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7 Nutchester United has had a successful year on the field in its particular football division, by winning the league title. This success has had a positive impact on the club’s off field activities too.

Identify four ways Nutchester could measure its success as a sports business at the end of the season.

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8 Large, global sporting organisations such as Nike and Adidas are recognising the importance of Corporate Social Responsibility (CSR) in the way that their business is conducted across the world.

Describe four reasons why large, well-known sporting businesses see CSR as an important part of their business operations.

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9 Corruption in sport has been a high-profile topic in the media in recent times; examples of serious corruption have involved organisations such as FIFA and the Russian Athletics Federation.

Describe four different types of corruption in sport, giving an example for each.

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10 Providing funding for all types of sporting activity is challenging because available funds are limited. Despite this, many funding requests are made.

Name three organisations or person(s) who make funding requests.

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11 Describe four reasons why commercialisation is important to sport and physical activity.

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12 Funding for sports businesses comes from several sources.

Which one of the following is an example of an organisation which grants such funding?


(a) Elite sports clubs

(b) Universities

(c) Sport foundations

(d) UK Sport

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Section B


13 Sport volunteers play an important part enabling sport businesses to put on sporting events, an example being the stewards who play a very active trackside role in Formula 1 Grand Prix races.

Using examples, explain why sport businesses use the services of volunteers.

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14 Steve and Jane have established an internet business selling sports footwear.

Explain how Steve and Jane could focus on specific aspects of customer attraction and retention in order to compete with larger, better known businesses.

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15 Hockborough Ladies Amateur Hockey club has recently been promoted to the top division in its league. This means many improvements need to be made throughout the club, both on and off the pitch.

Describe what the club needs to do to obtain funding to help with this improvement process.

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16 Describe the structure of a local sports organisation such as Hockborough Ladies Amateur Hockey club.

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PLEASE DO NOT WRITE ON THIS PAGE

Turn over for the next question

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Section C


Twenty20 (T20) cricket, is a shortened form of the sport where the two teams have a single innings each, which is limited to a maximum of 20 ‘overs’ of bowling.

A typical Twenty20 game is completed in about three hours, with each innings lasting around 75-90 minutes and a 10-20-minute interval. This is much shorter than other types of cricket, and is closer to the time taken to complete a game in most other popular team sports.

It was introduced to create a fast-paced form of the game which would be attractive to spectators at the ground and viewers on television.

17 World Twenty20 2016: Runs, money and power - how T20 has changed the world

http://www.bbc.co.uk/sport/cricket/35718855

Thirteen years since Twenty20 was born and as the sixth World Twenty20 explodes on to the global stage, cricket has been transformed beyond recognition. Since the first professional T20 was played in 2003, the record for the fastest century and half-century in both Test and One Day Internationals (ODIs) has been broken.

Show me the money“The Indian Premier League (IPL) has significantly transformed the financial landscape of Indian cricket. That’s undeniable,” said TR Vivek, an Indian journalist who co-authored the book IPL: Cricket and Commerce.

But crucially, the money generated by these lucrative T20 competitions is not simply creamed off by mega-rich franchise owners - in most cases it flows directly back into the coffers of the national cricket boards, which reinvest it in the grassroots game. “The IPL accounts for about 40% of the Board of Control for Cricket in India’s revenues,” Vivek explained.

“It’s certainly had a positive impact on the cricket ecosystem. The standards of cricket infrastructure have gone up significantly. Ranchi - the home town of India cricketer MS Dhoni - has a brand new stadium which would not have been imaginable 10 years ago.”

At the forefront of this financial revolution are the players themselves. The biggest stars, such as Dhoni and Virat Kohli, will command salaries of up to 125m rupees (£1.3m) in the forthcoming IPL. But it is arguably lower down the ladder that the change has been most significant.

“Earlier, first-class cricketers also needed to be working somewhere - usually they would have a job at one of the state-run companies. Now cricketers can afford to be professionals.”

Wonderful for womenThe impact of T20 on the style of the men’s game and the players who participate has been huge, but the consequences for the women’s game have arguably been even bigger.

T20 has become the dominant form in the women’s game at both domestic and international level, thanks in part to the short-form product that can be played as a double-header with men’s matches, bringing valuable exposure to both the crowd in attendance and those watching on TV.

“Double-headers bring a captive audience,” said former England batter Ebony Rainford-Brent. “People who didn’t even know that women’s teams existed got women’s cricket on their radar. Awareness came first, followed by success.”


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That success has seen T20 cricket almost eradicate women’s Test matches. Despite a 70-year head start, there have already been more than twice the amount of T20 internationals than Tests.

While T20 cricket has created an international product worthy enough for national governing bodies to hand out central contracts, the domestic game is also stepping up in terms of competition, quality and earning potential.

The inaugural Women’s Big Bash League in Australia successfully mirrored the men’s tournament, while the summer of 2016 will see the English women’s game beat the men to a franchise T20 league.

“It’s a brand that can go on TV, creating opportunities for those that play. Women can be fully professional,” said Rainford-Brent. “These opportunities would not have existed 10 years ago.”

(a)* Evaluate the impact which the commercialisation of T20 (as a new product) has had on the sport of cricket.

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(b) T20 has clearly had a significant impact on the game of cricket across the world.

How might its growth create problems in terms of sustainability?

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(c) The organisers of T20 will have considered cricket’s organisational environment prior to developing and launching this new brand of cricket. For example, from a micro environment point of view, the organisers will have researched what type of cricket customers and spectators are likely to find appealing and engaging.

Explain what other considerations the organisers will have had to make in relation to both the macro and micro environments.

Macro environment:

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Micro environment:

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ADDITIONAL ANSWER SPACE

If additional answer space is required, you should use the following lined page(s). The question number(s) must be clearly shown – for example 16 or 17(a).

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C404/1806

Documents

Oxford Cambridge and RSA Level 3 Cambridge Technical in