Abstract
A Study on the Effects of the Core Abilities for Managing Golf Course and the Appropriateness of Competitive Strategy on the Business Outcome
Yoon, Hyung Suk
Department Of Sports and Leisure Studies
Graduate School
Korea University
As per ...
Abstract
A Study on the Effects of the Core Abilities for Managing Golf Course and the Appropriateness of Competitive Strategy on the Business Outcome
Yoon, Hyung Suk
Department Of Sports and Leisure Studies
Graduate School
Korea University
As per capital income of Korea exceeds $20,000, the market demands of leisure services increase and consequently more people become enjoying golf, and the relevant industries related to golf grew dramatically. In addition, as the number of golf courses in Korea increase every year, the supply became too excessive, which causes the increase rate of the customers for each supply of golf courses drops and thereby causes increase of deficit, bankruptcy, and construction halted. Thus it is necessary to come up with management strategy to strengthen the competitiveness of golf courses, but such necessary efforts are still rarely found, and, if any, there has been not yet any substantial outcome.
This study aims at suggesting the ways to achieve the management outcome in business related to golf courses by selecting the effective strategies enhancing the core abilities to increase outcomes of the golf course management. For this goal, this study tries to figure out the importance of appropriateness between the core abilities and competitive strategies that can support the management strategy of golf course to maintain the competitive advantage and high management outcome, focusing on the resource-based approach.
First, the sub-groups categorizing the golf clubs in accordance with its competitive strategies are 'no strategy', 'differentiating strategy', and 'production cost advantage' groups. The main features of each strategy is as follows. In terms of region, the differentiating strategy was distinctive in Gangwon-do region. In terms of the management style, the production cost advantage strategy was distinctive in the non-membership management. In terms of the size, the differentiating strategy was highly found among 27-hole courses, and production cost advantage strategy was distinctive among 36-hole courses. In terms of the beginning of the business, the golf courses founded before 2000 had more non-strategy or differentiating strategies, while the production cost strategy was mostly found among the courses founded after 2000.
Second, as result of the analysis of comparison between advantages of each strategy in accordance with the core management abilities, there were statistically significant differences in human resource management, marketing, information control, and organization management among the core management abilities. Moreover, the significance was higher in production cost strategy and differentiating strategy in order, than non-strategy group. As a result of comparing the advantages from the management outcome, both the financial outcome and the non-financial outcome showed the significant differences.
Third, as a result of the analysis of factors from the core abilities, competitive strategies, and management outcome, the result from the analysis of effects of the core abilities on the golf course management on their competitive strategies shows that the 6 sub-groups had no significant effect on the production cost strategy. However, the differentiating strategy has significant effects on the human resource management, marketing, and budget & finance in accordance with their order.
Finally, the group categorization is confirmed to be valid by showing significant differences between high-outcome golf courses and low-outcome golf courses in accordance with the core management abilities and the appropriateness of their competitive strategy. In a similar way, as a result of analyzing the categorized appropriateness and its relevance with the groups of the competitive strategies, the low-outcome golf courses shows more rate of non-strategy or differentiating strategy, while the high-outcome golf courses shows more production cost strategy. Therefore, the result proves that the production cost advantage strategy is more advantageous in terms of the appropriateness between the core abilities and competitive strategies. There was no statistically significant difference in the financial outcome in management outcome, while the non-finance outcome shows some significant differences, and the high-outcome golf courses shows more significant data than the low-outcome golf courses. Hence the appropriateness of core abilities and their competitive strategy in managing golf courses in Korea has more significant effects in non-financial outcome than financial outcome. This result can be interpreted as the more appropriate competitive strategies in accordance with their core abilities is taken in managing golf courses, their outcome such as market shares, public recognition, customers' loyalty, cost efficiency, and human resource development will be enhanced.