A Theory-Based Evaluation of the Success of the World Cup - Case Study Example

A THEORY BASED EVALUATION OF SUCCESS OF THE 2014 WORLD CUP Name Institution Professor Course Date Executive Summary Persons and nations engaged in staging mega events experience their ability to hold positive effects on the host communities. Major occasions hold the power to marshal big numbers of persons and establish meaningful effects on the lives of hosts in diverse ways. Events such as World Cup qualify as mega events and they come with positive economic and social impacts to the host nations. This report highlights the 2014 FIFA World Cup held in Brazil. Drawing on pertinent theories, the report evaluates the degree to which the 2014 FIFA World Cup had positive economic and social effects on host communities. The event instigated significant development in the tourism sector, cultural assets, enhancement of transport infrastructure, and development of human capital, employment creation and GDP growth. The report also discusses factors that made the event a success. Table of Content 1.0 Introduction………………………………………………………………………………..4 2.0 Hosting Mega Events……………………………………………………………………...4 3.0 Positive Impacts…………………………………………………………………………...5 4.0 Factors that Led To Success……………………………………………………………….8 5.0 Conclusion……………….……………………………………………………………….11 6.0Reference List…………………………………………………………………………......10 1.0 Introduction FIFA Executive Committee appointed Brazil as the host of the 2014 World Cup in 2007. The 2014 FIFA World Cup was the second time the nation held the mega sporting event. The event entailed a huge-sized tournament that called for all-embracing preparation procedures and implementation of intricate operations. The 2014 World Cup event involved thirty teams including the host nation. The 2014 World Cup was the 20th FIFA World Cup event and it attracted millions of fans and players from across the world (Lancet 2014, p.2020). The triumphant hosting of the 2014 FIFA World Cup in Brazil proved a respite to the country’s authorities and served as means to enhance Brazil as a tourist target. Notwithstanding the problems with infrastructure, the country attained a positive reputation. Brazil attained numerous growth prospects that promoted the country’s economic status. The country managed to attain essential investments and carried out the required activities in time. The country spent millions of money in building the needed infrastructure. Through economic effectiveness, good governance and sustainable management, Brazil prevented poor allocation and unnecessary disbursements of resources. Although the event presented several challenges that necessitated productive management processes, it brought major benefits and impacts to diverse social and economic segments in Brazil. 2.0 Hosting Mega Events: The 2014 World-Cup According to Szymanski (2010, p.177), the World Cup qualify as a mega sporting event. Countries complete robustly to host such events just like players who take part in them. Diverse reasons demonstrate the expedition to host the most stunning global sporting competitions, but the most convincing reason entails the guarantee of an economic bonus (Wyludda 2009, p.3). Apparently, economic benefits gained from mega events such as the World Cup compensate for the costs earned by the host country. Szymanski (2007, p.177) asserts that, the cost of hosting a mega event such as World Cup is huge and requires public subsidies. The major capital costs include costs involved in offering the infrastructure required to accommodate the players and fans as well as venues that facilitates the games. These costs amount to billions of money. For instance, FIFA requires that the hosting nation offer at minimum eight and if possible ten modern stadiums with the capacity of holding between 40 and 60 thousands spectators (Sarah 2014, p.147). Nations hosting major sporting events such as World Cup view the expenditures as investments that engender optimistic economic returns. Brazil prepared twelve FIFA stadiums comprising of the ninety-seven percent public sector financing. The country also built thirty-two training sites required for every qualified World Cup team, three professional training facilities with a viewer facility greater compared to the average attendance in any other event. 3.0 Positive Impacts With respect to social exchange theory, Brazil accepted to host the 2014 World Cup for economic, social and cultural gains. According to Bobb (2014), the 2014 FIFA World Cup was a success. Brazil authorities confirmed that the tournament boosted the country’s economy. The event injected an approximated 15 billion dollars into the Brazil’s economy while the Brazilian government invested 11 billion dollars in infrastructure and stadiums and two billion dollars in security. According to the Brazilian authorities, the 2014 World Cup event created numerous jobs for Brazilians. The event left a long-standing legacy through creating one million jobs prospects that amounted to the fifteen percent of all employment created in Brazil in 2014 (Bobb, 2014) . With respect to the social exchange theory, the event left social, psychological, infrastructural and social legacy. The event helped in establishing the national identity and image of Brazil. Based on the social exchange theory, Brazilians evaluate or perceive the 2014 World Cup event as holding either negative or positive outcomes with respect to the anticipated costs or benefits. They seek reasonable, acceptable or satisfactory level of benefits instead of maximum advantages (Frew & White 2011, p.96). Although the event promoted public debt and inflation, it enhanced the country’s economy through bringing over 600, 000 foreign visitors. On the contrary, Wall Street Journal reported that the economic impacts of the 2014 FIFA World Cup to Brazil we not positive despite the fact that the event drew scores of foreign tourists far beyond official anticipations (Kernan 2014). This is because a few cities affirmed public holidays when local stadiums hosted matches. As a result, workers failed to report to work leading to a drop in industrial production. For instance, the production of crude steel dropped by 4.9 percent during the event an aspect that negatively affected the economy of Brazil. However, according to the Brazilian government, the tournament injected almost 15 billion dollars into the state economy including indirect, induced and direct impacts and produced million jobs (Bobb, 2014). Some economists with an example of Santos claimed that the tournament provided a temporary boost to service industry. The tournament besides boosting the nation’s economy, it instigated the improvement of infrastructure. Business Minotor International (2014, p.7) indicate that the 2014 FIFA World Cup was one of best ever with the government hoping that the event sent out a reputation of Brazil as a safe, welcoming and vibrant tourist destination. Scores of tourist agencies capitalised on the impact of the event through increasing marketing campaigns. New plateau theories presume that a major-event hold permanent post-event impact on tourism (Teigland 1999, p.307). This is because of enhanced awareness, accessibility and attractions established indirectly or directly through the event. The collective impacts from such shifts offer the host nation and community an augmented competitiveness in tourist markets. With respect to effect theory, the cumulative impact relies on the extent of enhancements in comparison with other destinations for tourists. According to Fontes and Hollanda (2014, p.188), the 2014 FIFA World Cup aroused public investment in professional-grade sporting infrastructure at a scope, scale, cost and pace never experienced before in Brazil. The infrastructure build-up for the global largest football event took place at a promising period for the Brazilian economy. Besides, economic impacts, the 2014 World Cup also had social impacts such as increased inflation and credit. The event also enhanced human capital growth, improved football build-up problems, educational programmes, the country’s global reputation and social mobilisation. The event brought the country and community together, provided residents with the prospects to meet new persons, promote understanding of other cultures, developed national identity and reinforced cultural values. Other social impacts include improved goodwill and cooperation between diverse stakeholders, improved business relationships and increased commercial activities, and break down of social obstacles. With respect to social capital theory, the 2014 World Cup produced goodwill and resources inherent in the relationships amid business and nations (Bartkus & Davis 2010, p.320). The event facilitated collective action amid corporations and individuals in Brazil. Through social networks established in preparation of the event, the country was able to attain economic benefits from the event. The collective action made possible through social capital theory facilitated human capital development, improvement of transport infrastructure, tourism, leisure development, and cultural assets. Social capital states that the more networking and collective actions, the higher the level of social capital (Bartkus & Davis 2010, p.320). Just as other major events hosts hope for, 2014 World Cup event helped in promoting permanent legacies with respect to social and economic impacts (Hamil & Lusted 2012, p. 259) According to Garofalo (2014), sports stadiums do little to promote economic and tourism growth, incomes or employment. The negative impacts linked to the 2014 World Cup include generation of price inflation and augmented tax burden (Prayag, Hosany, Nunkoo & Alders 2012, p.4). Constant budget overruns, undervalued security costs besides actuality that the World Cup event replaces the spending that locals and tourists use where there is no World Cup (Prayag, Hosany, Nunkoo & Alders 2012, p.4). Although the country tried to ensure that it met the FIFA requirements, some events remained unfinished. These projects include mobility programmes in diverse cities and airports. However, the projects never delayed the event because of prioritisation of football-linked travel and announcement of public vacations in various cities. 4.0 Factors that Led To Success Brazil need and will to accommodate workers and experts during the development and planning was a key factor that contributed to the success of 2014 FIFA World Cup. The success also depended on the extent of self-support. The Brazilian authority supported the event with funds to build the required infrastructure as well as security. As a result, governance and money played a crucial role in the success of the 2014 FIFA World Cup. According to Jennings (2012, p.4), governance of mega events such as the World Cup entails coordination of numerous large-scale projects with intricate engineering and planning needs known to be problematic sites for the risk management. Change over time in management of risk confronting decision-makers impacts how hosts govern and organise mega events. Brazil drew on the skills and knowledge of experts besides learning from their 1950 experience World Cup hosting. Democratic quality of Brazil instigated democratic accountability and transparency in the management of the funds and the entire event. The country prevented poor allocation and excessive disbursement of facilities and resources. According to Jones (2014, p. 5), transparency is a major sustainable development standard and a factor of good governance. Brazil set up a local organising committee that was responsible for overseeing and guaranteeing compliance with the building work schedule. The management integrated the environmental, social and economic dimensions in order to curb the challenges of environmental governance, harmful substances, ecosystem management, conflicts and disasters, climate change and effective utilisation of natural resources. The country followed and complied with all the requirements and steps introduced by FIFA. Another factor that led to the success of the event is legacy. Legacy is an important issue is preparation and management of mega events (Girginov 2009, p.244). The need for legacy instigated strategic long-term preparation that helped in sustaining positive effects on the host nation. The ability of Brazil to get the required investments besides undertaking actions and projects in time ensured a successful event. Given that the 2014 World Cup was compelled through the Brazilian government agenda, with a subsequent utilization of taxpayers’ money, the government and the event management put into consideration political, environmental, social and economic factors. The authority capitalised on effective strategic planning, effective stakeholder’s networks and wide-ranging expertise (Sulayem & Hassan 2013, p.37). In addition, ethical management in organisations of funds and other resources is paramount. Honesty, transparency and integrity formed part of the 2014 World Cup management team. According to Fernado (2010, p.7) transparency, honest and integrity instigates accountability. Another factor that led to the success of the 2014 World Cup is Information Technology. According to Irena (2014, p.12), Informational Technology played a crucial role in enhancing the success of 2014 FIFA World Cup. During the event, Brazil deployed numerous innovative information technology applications. The applications changed how officials made choices and how newscasters covered the event. Sponsorship from giant companies also promoted the success of the event. Several international organisations such as Johnson’s and Johnson Vision Care, Sony, Coca-Cola and Emirates came onboard to sponsor the event (McCormic 2014, p.10). The organisations launched branded promotional campaign that drew large numbers of visitors to Brazil. 5.0 Conclusion The Brazilian authority embraced sustainability management and implemented actions to address opportunities, impacts and issues required to attain cultural social, economic and environmental performance outcomes. The nation managed activities and projects while putting into consideration its accountability to the society on an economic, cultural, social and environmental level. The success of the 2014 World Cup event is measurable through wealth generation, augmented tax collection and visibility and reputation gains that turned into political capital. Brazil put good management with the understanding that such a mega event last for numerous years through leaving a constructive legacy for the community. The management established internal setting that facilitated smooth running of the infrastructure and positive effects of micro and macro economy to enhance the lives of Brazilians. The event was organised in absence of public resources waste, transparent management with the potential to leave a bequest that substantiated heavy investments on infrastructure. Complete compliance with the set standards by FIFA instigated the satisfaction of all the stakeholders, hence the success of the event. Through proper management, the 2014 World Cup event host delivered a positive legacy, intangible and tangible benefits of the sporting event’s actions to Brazilian community and the environment 6.0 Reference List Bartkus, V & Davis, J 2010. Social capital: Reaching out, reaching in. UK: Edward Elgar Publishing. Bobb, S 2014. Mixed opinions about world cup impact on Brazilian economy. Voice of America. 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