Introduction to Australian Grand Prix

Discuss about the Australian Grand Prix Motor Race.

Australian Grand Prix   [AGP] is a motor race which is organised in Australia; it is one of the oldest motor race held in that region. It is successfully running since 1928, where it for the first time was held at Phillip Island. This is one type of a racing competition held between several parts of Australia mainly in Melbourne, currently they have been contracted to be the host of ‘Formula one’ race for further few years (Fairley, Tyler, Kellett & D’Elia, 2011). Before its success, it used to have a joined ventures with some other races held in Australia like the Tasman series or the Australian Drivers series. Since 1996 till now this is held in Melbourne Grand Prix circuit at Albert Park, winners of the race are presented with a round trophy named as Jack Brabham and Lex Davison Trophies (Fairley, Tyler, Kellett & D’Elia, 2011). There are many talented drivers who represents their skills but certain famous winners are Lex Davison and Michael Schumacher. Nowadays, Australian Grand Prix is considered as the first race of F1 world championship and also sponsored by Swiss Watchmaker Rolex (Fairley, Tyler, Kellett & D’Elia, 2011).

This event is counted among one of the very old races held near Sydney in 1927. Begin as 100 miles road race on a small area of Phillips Island, during that time it used to have rectangular road field only without any new addition to it also all the machines for cars and constructor were brought from Europe (Cairns, 2014). After these initial successful years of Grand Prix it was gone into a phase of war and country was involved in World War II, immediate after war era all the Pre-owned cars and race field were reconstructed again and was again in use. Lex Davison took race to a higher level by introducing many big expensive formulae for this and bought many trophies for Grand Prix. The top Europeans formula team come up to competition and also very famous Tasman formula was responsible to bring back grand prix to other higher level of achievement and finally, it returned to power(Cairns, 2014).

Under the assessment of this organisation, we will cover organizational theory and research over it taking further goals and structure of Grand Prix, their strategic alliances and more among this applying the observation with critical theory.

The History of Australian Grand Prix

About Australian Grand Prix organisational theory if we take this into count, Grand Prix comes under a sports organisation or not? Looking at its working, motor race is considered as a sport or not depends on the people what they think most people think sports are the one who take physical efforts so they believe auto racing isn’t a “real” sport but according as per view  auto racing requires a great deal of physical effort and risk is also involved, even if drivers “only” turn a steering wheel and push pedals (Cairns, 2014). Drivers sitting in a race car sweat up to 4kg of their weight which is equivalent to athletes running over the field.  The famous formula1 Racer Ernest Hemingway valued motor racing as one of the most extreme sports on the planet, even there heart beats goes up to the dangerous level of breathing, therefore driving a formula 1 car exerts stress on driver (Sanderson, 2016).  After countering such points it concludes that racing is equally important as a sport and it is considered one. Therefore, the entire organisation related to car racing is sports organisation as Australian Grand Prix is one of them. 

Now, if we see sports industry and their organisation in all, then there are many features of sports which require a proper management and techniques, such features are made by the audience who enjoys and have passion towards their team, athletes or competitions (Sanderson, 2016). Sports and their industry has many features added to it, therefore ‘Smith and Stewart’ has stated 10 unique features about sports organisations some of them listed are

• Competitive balance keeps a proper balance between club and teams to secure the market value and other competitors to keep fans interest towards their organisation.
• Sports products are main important to keep it attractive to their audience and also people are interested towards it.
• High brand loyalty as sports are their organisation is funded by many of the brands and this makes them unique in themselves.
• Provide different behaviour among the people like supporting their favourite players on the field, wearing their favourite team’s t-shirts or purchasing the products signed by the players etc (Blomme & Bornebroek?Te Lintelo, 2012).
• After a bad loss the championship goes on and players are always boosted to get ready for next win.
• Agrees with the fact of being with new technologies regarding sports science and not follow the old science.
• Limited availability as in other organisation production can be increased by public demand but in this, it has been the same method, same field, same sport.

After going through all these uniqueness Australian Grand Prix is not much affected by this. As they follow all the features without affecting their audience and funding of racers, Just on the part of being more constructive AGP has to work more on their cars, fields and all other destructions occur during the race (Blomme & Bornebroek?Te Lintelo, 2012). 

Organizational theory and also organizational behaviour have a deep connection, as theory mainly looks after working and management and how it works and also their unique characteristics. On another hand; behaviour comes under public interaction looking for cause and effect (Niczyporuk, 2016). Taking this in mind theory has to maintain a proper loop between their staff for proper and smooth working as in one sport organisations there are many working hands of their different specialised field having different ideas and practise, also have influence over each other, So to maintain it, observes all norms and values of organisation and resume working, similar to this finding a right structure for organisation for better functioning and mechanism and for further innovation and creativity (Francescato & Aber, 2015). Therefore taking these two part as difference among each other one look after the favourable time for further successful innovation and idea and other look after relation between staff for maintenance, if we talk about AGP on this perspective as a result of these theories AGP is quite successful over their better quality staff as well as qualified for the same.

Organizational Theory and Australian Grand Prix

At the workplace of any organisation helps in good judgement skills, problem-solving, analysis, job performance, creativity, and knowledge therefore at a workplace these qualities are required for better performance and quality of same. Research has found that a better running organisation of any of the fields for their job success (Francescato & Aber, 2015).

Goals of sports organisation are all similar which lead them to become successful organisation are as follows

• Ensuring better quality in sporting opportunities irrespective of other Australian sports organisations.
• To promote AGP worldwide by offering many events interstate as well as inter countries to national level racing experience.
• To secure AGP’s place as Formula 1 race even after 2023 and making it a super hit show.
• To raise the profile of all the racers of AGP by giving better international training experience.
• Increase greater visibility to online media and information services, by making it reach to different untouchable parts.
• Recognition as one of the top sports organisation to conduct formula 1 race experience among others.
• Increasing fund by getting sponsors and making it a public affair and having high financial supporters.
• Increasing membership of organisation by making open for all and keeping limited eligibility.
• Increasing governmental interest and legislation towards the success of an organisation.

These goals are very important for AGP to be on top always as considering racing nowadays this has become one of the very popular sports among all especially in Australia. Also there are many small clubs who joined other big names of racing from other countries so make it strong in its own country. AGP has to encounter these goals and work for them for better years and growth of AGP in future coming years. For implementing such goals AGP is to begin with a big name of marketing and campaigning by a group of trained personnel of the same field (Niczyporuk, 2016).

It is very common for organisation to set up their common goals, it can be done with consideration of others and compete these goals is always a good idea it can just result into lack of coordination because of which this can just lead to a very bad outcome in ways all people of the same organisation if runs in different directions with different opinion (Niczyporuk, 2016). For example, in AGP if one of their racers is not well prepared and trained and he is fresher for a 50 lap race but he is sent to one of that and in competing for his goals, he met with an accident and injures himself even organisation has to pay off the loss which occurred because of this. Therefore, goals are made to compete but according to certain levels of each stage (Sawyer, 2016). When discussed about effectiveness and efficiency of organisation’s goals one should be familiar with the meanings of both the words

• Effective -it means ready to bring out purpose, producing an unexpected result.
• Efficient – producing best results without wasting time and effort.

Organisational effectiveness is measured by relation between employee performance and company profits to relate this to working with organisation. There is no specific math formula for measuring effectiveness of organisation, each one have their own parameters to measure also it helps in bearing loss likewise. Organisational efficiency look after funding that how well organisation uses their money basically this is based on the relationship between fundraisers and its expenditures and helps in increasing profits through its debts and equity (Sawyer, 2016). If we see measures of both the effectiveness have measures like –   Testable, Time dependency, Quantitative therefore on the other hand if we see efficiency and their measures Performance, Simple, Complete likewise taking these points into consideration AGP have to work on their effectiveness for their organisation to run it successfully for a long way and for a longer time (M. Proulx, 2012).

The Goals and Performance of AGP

Organizational Complexity is basically the amount of all the resources involved in its team, system, department, and project, full functioning of these resources of organisational. Therefore to keep these away from complexity organisation have to use some methods to overcome all of that one has to measure the level of complexity of their organisation, some of the measures to look after AGP’s complexity are

• A number of people required for a particular work and how many are involved for the same for example at the time of race if 4 people are required for changing wheel but 10 are appointed for same then this may cause complex structure (M. Proulx, 2012).
• Activities mean the number of process and steps you need to follow up the work should be accurate and not the delayed one.
• The number of data required to a considered process which results in a good decision.
• A number of parts required in racing cars and for their maintenance.
• A number of employee’s roles in the organisation for different fieldwork and speciality (SUGARMAN, 2017).

These are the main points to analyse the complexity of organisation which makes their working complex and full of difficulties but there is some method to overcome it like taking four key main points are-

• Get aligned- make awareness of understanding good and bad for the organisation and not for the single individual but for all because profit and loss both are equivalent to all.
• Get aware- to make it aware of the outside world about our actions and what we deliver and also our strength and weakness.
• Get smart – to learn all new technologies and their implementation to support effective thinking and performance.
• Get results- after mapping of goals and aims to measure your objective and work for the same (Scott, 2015).

It is well said by one of the famous scholars; till you know your weakness and loops you can’t work to overcome and solve it, therefore, the solution always comes when you break your problems into chunks and solving each part with simplicity and extra care (Whiteside, Yu & Hardin, 2012).

When we have many desires our life but we are in position to buy according to the spending capacity of ours earning then we use the method of trade of this when we buy the things which are more important than the other which are lesser then this so we put thought in every purchase according to our bank account which does not fulfil our satisfaction. So like this making purchase of one item we trade off another one therefore, if we apply this theory in organisation working then trade-off is explained opportunity cost this leads to sacrifice one product to buy and invest on other (Falk & Zhao, 2010). This can be done in either of the ones by cost or benefit, if we apply this in functioning of AGP organisation uses trade off as the main process to maintain funding of organisation. Like if it is done on the basis of cost then the first one has to make list of requirements of the organisation further separating them into two where one is urgent buying and other is not, after comparing products by this they trade off less important product and shift it to later purchase and buy things which will give more benefit on early buying (Falk & Zhao, 2010). So using benefit as the trade-off is more beneficial.

Organizational designs give shaping to the company and their employees in a proper structure, on early starting of organisation one can skip forming their structure but once it grows they need better efficiency and accountability. By this it results in better resources and communication, these designs are made in different ways and are of different types like the functional design, customer, matrix and strategic business, taking a deep look over this

• Functional design- this basically designed for all the basic functions of an organisation like hiring up a manager for managing accounts, resources etc later manager appoints there analyst and coordinators, therefore, they work together to meet market strategies.
• Customer design- the objective of this is to position employee according to department best for customer services (Whiteside, Yu & Hardin, 2012).
• Matrix- this mixture of two different structures like a company works after looking at the demands of customer likewise according to reference for business.
• Strategic business- this is when organisation form different profit and loss centres for their team and looking at their balance team managers work for their team (Whiteside, Yu & Hardin, 2012).

Organizational Complexity of AGP

If I have to choose an organizational design for AGP it would be customer design as AGP’s important part is their audience as the sports mainly designed by the audience. For any of the sport main key points is an advertisement of the event held which can make popular only by gaining audience and making it public and famous. So it should mainly design according to working of audience and public for better publicity (Niczyporuk, 2016).

Now the other key important is the strategic management of an organization, there are different levels and types of strategic management if the company has many competitors in his business or into the same sports then for a successful running each has to plan some strategies to run it (van Knippenberg, 2011). As we see different authors have given many types of strategies and their level but by summing them up we conclude with three of main strategic levels of organisation and they cooperate strategy, business strategy, and functional strategy therefore by briefly knowing them cooperate strategy is established at the highest level of organisation and defines what business is all about and how it works for results (van Knippenberg, 2011). It involves long-term results and focuses on resources. Next is a business strategy which says how the business will attempt to achieve its mission, it also includes scope and management of the organisation and at what level it will achieve and maintain, third is functional strategy this focuses both cooperate and business strategy and look after all marketing, personnel, funding, and management. Now the application of these strategies is done first by looking at some factors like by looking at the old performance of the organisation, looking at resources, environment settings, competitions of present performance and third forecasting future (van Knippenberg, 2014).

Strategy may work at different level of an organisation- business level, functional level or corporate level and strategy of organisation also changes according to different level, corporate level strategy works at the highest level of decision making and covers working on objective of organisation at this level the decision tends to be more value-oriented and conceptual as compare to another level. Business level strategy is when organisation has two different businesses and treated as business unit also requires different strategy to different product. Thirdly functional level strategy relates to single functional level strategy also provides strategy to specific function (Jamshidi, Doostipasha, Razavi & Gudarzi, 2018). Therefore, for AGP corporate level strategy will suit as this will help AGP in strengthening their objective of the organisation also, this will help in allocation and acquisition of resources. This sports organisation needs a proper decision-making method to be followed; also it will coordinate other business strategies.

Trade-off Theory and AGP

This is about a market where there is no competition for the product or very less competition (Day, 2012). This theory revolves in searching all those businesses which have fewer firms operating and there is no pricing pressure and creates new consumers with decreasing cost, in this competition is irrelevant but believe in capturing their own blue ocean (Adamsen, 2014).

This is an approach to enter in a market which revolves around the task of platform participants in this customer can choose to pay for services independently (Adamsen, 2014). This is something which lifts you up and others stand and rely on you, therefore, the main characteristics are to ‘plug n play’. Platform strategy is considered for the  AGP as this will help in succeeding, as platform requires three main fold of success that are connection, gravity, and flow (Day, 2012). Connection means how easily one can connect to platform and share, gravity means how well consumers and producers connect each other and flow means hoe well exchange of value takes place.

1. The toolbox- creates connection and makes easy for others to plug into a platform like AGP works for the connection with their audience and sponsors to make a leg for the racer and funding out money. For example, Wikipedia provides writers to collaborate on an article (Loop, 2016).
2. The magnet – attracts participants to platform with social media. Both consumer and producer should be present to achieve critical mass. For example, Apple needs to attract both developers and users.
3. The matchmaker – fosters the floe with a connection between consumer and producer both it captures data about participants and pull the data towards consumer and producer, for example, Google matches the supply and demand of online content (Loop, 2016).

For new product development first the organisation has to look after Weather they want something new to the world product or some brand new innovation to the existing product if we consider this AGP I don’t think they need more products or any alteration for any innovation or any new product, AGP is already full with their sufficient resources of organisation (Buehler & Nufer, 2014).

To meet all these points of strategy and product development once need competitive advantage which means having a superior hand on the same field organisation for example high-profit margin, valuable resources, brand reputation everything is considered to become competition (Renson, 2009). These competitive advantages can be done into way either by external changes when organisation change on the external basis factors of this and internal changes which held inside the organisation, there are two advantage of having a competitive advantage first is cost performance where organisation gives same resources and facilities but at lower cost than others by this they apply cost leadership strategy (Renson, 2009). Other, is differentiation advantage this is done when the organisation provides different services and facilities with different premium value and the users sometimes opt for unique features on the greater cost (Renson, 2009).

Strategic alliance has become a popular strategy for any organisation, two or more organisation or companies choose to work together and form partnership and work for the mutual interest also this has increased in sports industries as well this is formed between single or multiple firms from both inside or outside the sports industries mainly for the sports material for AGA alliances would with sports material manufacturing, for promotions with digital media or with some famous racing organisation (Renson, 2009). This basically a union of combining knowledge, technology, and skills also marketing each-others products. There are some points to be considered before getting into an alliance      

• Study history of an alliance of inter-institutional organisations
• Review organisational culture, business model, mandates
• Identify the key personnel of the organisation
• Re-cognization of boundary relationship
• Funding cost of alliance management
• Financial planning
• Developing a common communication strategy

After following these steps organisations enters into alliance and gets further benefits like

• Gaining capabilities
• Easy access to the target market
• Sharing financial risk
• Overcoming political obstacles
• Gaining synergy
• Achieving competitive advantages

DiMaggio and Powell’s (1983) the famous authors have explained change and isomorphism of an organisation very critically, organization structure used to arrive from efficiency in the marketplace, now arises from institutional constraints and this leads to isomorphism of an organisation (Day, 2013). Isomorphism is a process which forms one unit of the population with another unit of the population with same environmental conditions, they are of two types competitive and institutional, there are three mechanisms of isomorphic change

• Coercive isomorphism- when organisations forced by other dominating organisations to follow a certain code
• Mimetic isomorphism- when rules are not clear and uncertainty weighs into decision making.
• Normative pressures –some organisations take certain actions not because they are meant to take but instead they are motivated (Day, 2013).

Organisations are subject to change, they need to develop strategies to compete in both domestic and global market. They have to make changes strategies continuously in the market  and these rapid changes affect organizational culture, structure, outcome and productive, therefore, the changes bring the main difference in organisational structure and bring our major issues like

• Role of strategies changes
• Organisations need to update their amendments
• Organisations advantages are changed due to change in structure
• Benefits and problems come out because of change (Day, 2013).

Conclusion

As being the consultant of Australian Grand Prix submitting detailed structure of this organisation,

after having detailed knowledge of this organisation it has served public on a wide on improving quality of life individuals, they are also well staffed with many volunteers and workers with diverse skills, they have sufficient funding and a good alliances groups with them. Australian Grand Prix is one of the very famous names among’s auto motor race. After having a deep structure analysis it is necessary to adopt, sustain, implement new services of the global market.

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Now the other key important is the strategic manageme