Diversification of revenues for the Zimbabwe Olympic Committee
Mémoire de master : IOC Library, 2011.
The Zimbabwe Olympic Committee (ZOC) was formed in 1932 as Rhodesia OlympicCommittee. It became the Zimbabwe Olympic Committee in 1980 on attainment of Independence. The organisation’s mandate has remained predominantly the same, that of developing and protecting the Olympic Movement in Zimbabwe in accordance with the Olympic Charter. In pursuance of its mission, the ZOC is mandated to... MoreAdd to personal list
- The Zimbabwe Olympic Committee (ZOC) was formed in 1932 as Rhodesia OlympicCommittee. It became the Zimbabwe Olympic Committee in 1980 on attainment of Independence. The organisation’s mandate has remained predominantly the same, that of developing and protecting the Olympic Movement in Zimbabwe in accordance with the Olympic Charter. In pursuance of its mission, the ZOC is mandated to cooperate with government and non-governmental bodies. It may however not associate itself with any activity, which would be in contradiction with the Olympic Charter. The promotion of the Olympic Movement as well as development of sport requires substantial financial support. The ZOC total annual budget is below USD1 million and funded predominantly through grants and subsidies from Olympic Solidarity. This over-reliance on Olympic Solidarity financial support not only limits the scope of activities and programmes that the ZOC can implement but also seriously exposes the organization to financial risks that threaten its long term viability and existence as a going concern. One of the areas of serious risk exposure includes low staff remuneration that exposes the organization to threats of staff turnover due to low staff morale and weak competitive advantage. The major reasons why the ZOC has not been able to diversify its revenue streams range from lack of an enabling environment to unavailability of expertise within the full time staff to generate revenue. The organization does not employ a full time staff member responsible for marketing and revenue generation. The limited budget does not provide for meaningful marketing activities to diversify revenues through marketing activities and programmes. Furthermore, unlike other NOCs, the ZOC does not receive government funding to augment its financial budget. The situation is further compounded by an unfavorable economic environment and political uncertainly resulting in industry failing to perform at full capacity. The same political and other macro-economic factors have diminished investor confidence thus adversely affecting ZOC’s ability among other things to attract any meaningful sponsorship. The objectives of this project were to explore ways of diversifying the Zimbabwe Olympic Committee revenues in order to mitigate financial risks and enhance the organisation’s effectiveness in carrying out its mandate. The research further sought to determine feasibility of such revenue diversification strategies within the Zimbabwean context with the view to determining possibilities of adapting similar initiatives. The research project was carried out using the case study approach in which three National Olympic Committees of South Africa, Namibia and Kenya were studied. The aim was to determine trends, patterns and methods of revenue diversification used in these NOCs that could be adapted in the Zimbabwean context. The main findings were that there are several ways in which an NOC can diversify revenues. It was also observed that the macro and micro-environmental factors play a significant role in the NOC’s ability to successfully diversify revenue sources. NOCs nevertheless have to deploy both financial and human resources towards diversification of revenues for their organisation’s sustainability. It was further observed that traditional sources of revenue such as grants (fro government, Olympic Solidarity and other funding agencies), subsidies, membership fees and sponsorship remain the most common sources of revenue for NOCs. The research also proved that social cause marketing activities such as fight against HIV and AIDS through sport or sport and environment activities do not directly generate revenues for NOCS but rather promote its visibility thereby enhancing the organisation’s image and brand awareness. Another significant finding was that the performance of the NOC, particularly success at major international competitions, has a huge bearing over the organisation’s ability to secure additional revenue particularly through sponsorship. It was also observed that NOCs that have staff dedicated towards revenue generation have registered comparatively more success at revenue diversification than those that do not. As a result of these findings, the main recommendation from this project is the employment of a staff member specifically responsible for revenue diversification. The incumbent will subsequently develop and ensure implementation of a holistic revenue diversification plan that addresses both the traditional and contemporary revenue generation and diversification methods for the NOC. This recommendation should be complimented by enlisting the services of an independent marketing consultancy company to help professionally market the organization to the corporate sector while utilizing the organisation’s symbols and assets to generate revenue with optimum effectiveness.