Introduction
The long-term vision that encourages young people to participate in sports led to the winning of the right to host 2012 Olympic Games. The evaluation framework that established the Olympic Delivery Authority (ODA) provides the guidance and creates a structure that assesses the range of impacts related to the preparation, delivery and the legacy of the games.
Adams & Parmenter (2005) noted that this framework has been developed through extensive consultations in the last few years. This is by reviewing the then available strategies used and planning for the issues that were not achieved.
This framework is to be adopted by all the organizations and the leading bodies in order to prepare for the effective delivery. Organisations will be encouraged to adopt the structures and used the framework for relevant evaluations.
This study evaluates the importance of having a sustainable development strategy. It also evaluates the challenges faced by the ODA in ensuring delivery of employment and business objectives to creating new employment and business opportunities locally, regionally and nationally.
Literature review
Olympic Delivery Authority (ODA) ensures the delivery of the Olympic park, other venues and infrastructure in preparation for the 2012 Games. These should be within the prescribed time in order to comply with the agreed upon budget. Airola & Steven (2000) shows the authority works in ensuring the achievement of a sustainable development and provision of value for funds used.
It also leaves a lasting social, environmental and economic legacy for east London. In planning for public expenditure and policy, the activities and investments related to the 2012 Olympic Games and its legacy have to undergo a critical evaluation process. Evaluations form an important component in the public scrutiny, thus used as a tool for developing and designing systems of delivery.
The ODA’s mission includes delivering venues, facilities, transport and infrastructure in time. In addition, it ensures maximization of sustainable delivery while accomplishing this within the desired budget. ODA works with other partners such as CLM in managing design, construction and procurement of necessary facilities.
The funding needed come from grants given by the National Lottery, the London Development Agency, Media and Sport and Department for Culture (Barton 2004).
According to London Assembly Environment Committee (2010), ODA’s evaluations provide a suitable content to different audiences including the public, the media fraternity, politicians and academic learners. Setting up a sustainable development strategy improves the policy knowledge through the assessment of the policy outcomes and linking them to their respective activities and resources.
Balfousia-Savva et al (2003) noted that this strategy considers the effective and efficient policy development. Therefore, it enables organizations and stakeholders to gain a better understanding of designing and delivering policies in the future.
The framework ensures an opportunity to develop and evaluate various methodologies used in measuring and monitoring outcomes. It is important for the development of new techniques to enable the evaluators to learn and practice various techniques and practices (Adams and Parmenter, 1995).
The 2012 Games have impacts on specific social groups such as BME communities, young people, women and the disabled. Mark (2003, pp. 6-9) explains that some projects will also affect the entire population, for example, there will be increased economic development in the region within which the activities shall be held.
Some specific sections of the population will benefit from the activities for instance, the disadvantaged groups will access employment opportunities while the neighbouring communities of East London will benefit from physical activity programs. ODA’s objectives for sustainable development include minimizing carbon emissions arising from the Olympic Park, optimizing opportunities for efficient use, reuse, and recycling of water.
The other objectives include the identification of socially responsible materials and the need to protect biodiversity and ecology. Community support is as important as the provision of transport and health services to the participants of the ongoing activities.
According to Barton (2004, pp. 18-25) the pre-games impacts include construction phase, increased costs and visitor impact in the run up of the games. The impact caused during the games include those related to the revenues for example from the staging the games, the impact caused by visitors, and the cost incurred in staging the games.
The post-games impact includes the effects on the legacy, which involves an improved profile of the city, hence attracting more visitors. The lasting legacy of the games shall remain the development and improvement of the infrastructure, which shall provide value for several years to come.
Methodology
Information from the above study on Olympic Delivery Authority was collected through the surveying method. Individuals from east London were asked to give their views on the benefits that would come with the hosting of the Olympic Games to London and how it would influence the economy locally, regionally and nationally.
Various people gave their views on the availability of new business opportunities as well as the creation of new employment opportunities. Surveys are useful in describing the characteristics of a large population, hence remains the best method that provides the general measure of the facets under review.
Findings, Analysis and discussion
PESTEL Analysis
Political forces
ODA is committed to achieve five major objectives of the 2012 games, including the establishment of UK as one of the leading sports destinations in the world, changing the heart of East London, inspiring young people to be involved in volunteering their participation in cultural and physical activities in order to better their lives.
It will also include making the Olympic park as a blueprint showing sustainable living. Finally, it shall demonstrate the creativity of UK through design of infrastructure necessary for facilitating the activities of the Olympic activities.
Pezzey & Toman (2002) have noted that political influence has caused the relocation of the people to create space for the development of requisite structures. This has resulted in the emergence of social unrest. The unstable political influence has also contributed to fear of terror attack.
The analysis estimate the about 200 million has been spend on ensuring the safety of the populations who shall be present during the Olympic activities. Social organizations have claimed that the Olympics cause economic recession, for example, what was experienced in the 2000 Olympic in Sydney.
The human rights group in London has raised concerns about the displacement of people from the villages in which they have lived for over a century.
Therefore, the human rights agencies advocate for the establishment of mechanism aimed at safeguarding the rights of the participants as well s the observers of the games while challenging governments to take legal liability for damages and losses arising due to insecurity. Smith & Rees (2008) illustrates that other political forces influencing the 2012 Olympics shall include the international attacks.
For instance, those streaming in from Iran and threatening to boycott over the controversies of the logo are likely to cause chaos during this moment. The analysis of tourism industry projects improvements in the sector with a rise from 50% to 70%in growth due to influence of the games.
Economic forces
The economic impact of the Olympic Games is much contributed by the effects caused by visitors through their expenditures in the host country. A country also benefits from developments for example in infrastructure investments in areas that had been deprived. The country also benefits from the long- term legacy and increased exposure to the international media.
This brings about more tourists in the future before and after the games. Once these economic effects are combined, they form a complex effect that cannot be determined only by the financial performance of the organizers or the additional revenues that the country gets for hosting the Games.
To conduct the economic impact of the Olympic Games, there are some factors that have to be considered for example the effect the Games will cause on spending for example by organizations and individuals as well. These may include the amount spent on infrastructure in the pre-games period and the spending in the period of the games. Individuals mostly spend on transport, accommodation, food and entertainment.
These people include spectators, athletes, officials and media representatives from all over the world. Although some of these groups of people are provided with most of these expenses there is a difference between residents spending and nonresident spending.
The other factor to consider is that expenditure should be categorized according to products spent on for example in goods and services. A model must also be used to show how this spending is translated to a country’s income and increased employment opportunity.
The input-output model has been used for the past years in translating the effects of spending. Peter et al. (2008, pp. 7-9) these have been able to show the effects caused. According to the Price Waterhouse Coopers, the GDP is estimated to contribute about 3.7 billion Euros.
The GDP will be measured using the expenditure approach which shows the total demand expenditure minus the imports. Barton (18-25) shows more than 50,000 jobs have been created over the last 3 years of preparation for the Games and especially to the young people in the minority community. The plan for the 2012 Olympic Games is estimated to cover 30 years after the Games.
The other economic impact of the 2012 Games is improved housing for example 40,000 houses are to be built in order to cater for the tourists visiting the country during and after the Games. This has a major impact upon the human resourcing strategy in that supply chain management is to be improved and about 75000 businesses have been contacted to supply goods and services to the UK during and after the Olympics.
The other impact is that 42 percent of migrant workers are working in the country for that period in various sectors such as in health and hospitality industry. Transportation will improve since massive roads have been constructed including railway and more airstrips have been developed.
Social forces
The atmosphere of Bedford will be festive within the local community therefore providing a good climate for all. Individuals will also be encouraged to take up preventive measures for them to stay healthy during the period and to improve their well being.
People involved in the British sport are hopeful of 2012 legacy, for example in the increased commitment to sport in the UK. For example, special programs for the disabled; Autism Awareness Campaign in UK is confident that more people will be encouraged to take up sports regardless of their status.
Barton (2004) describes that the Olympic Village Polyclinic will also be transformed into a learning center for the community around East London. There will also be improved infrastructure for example nursery, primary, secondary and creative industries will emerge therefore improving the living standards of most individuals therefore impacting on the ODA’s human resourcing strategy.
Cultural effects were not a significant part that influences the Olympic Games but still it should not be ignored. The government has recommended doing more in publicizing and coordinating culture. This will be achieved by drawing ideas together and sharing best practices to increase awareness of practical cultural activities. Young people will be given an opportunity to experience and participate in various cultural activities.
Some of the elements that will be used in the youth culture will be to stag along waterways, bridges and streets. Exhibitions of world art and artifacts will be set up in London museums to display the culture of the communities living there.
Technological forces
Technology has been improved for example in the development of the modernized stadium and the water part. The world media have also improved technology in the country since it will be using live broadcasting technology. Transport technology has also been utilized in building massive roads and railways.
The security technology is also present for example the use of CCTV and the scanning devices installed in every entry of the stadium. Improved technology will also be provided for example in giving tickets, scanning ID cards and biometric scanning.
Environmental forces
The environmental impact caused by the 2012 Olympic Games includes concern over protecting and restoring a favorable place for everyone. This involves recognizing the link between social and economic goals. The environmental sustainability programs have been set up to eliminate pollution around the Bedford community.
The ecosystem has been preserved, for example, through the provision of livable climate and water cycling to avoid suffocation. The soil formation has also been improved as well as the natural landscapes that attract tourists.
A mega event such as the 2012 Olympic Games ordinarily will produce carbon emissions for example from the presence of many vehicles and from the processing industries. Large carbon emissions should therefore be provided to reduce these emissions. Renewable energy should therefore be provided to reduce carbon emissions from the Olympic park.
Legal forces
The mega event has also to consider some legal factors for example, the brand licensing should be maintained, which is Bedford 2012. Legal procedures should also be followed while selling sponsorships, for example, to the stakeholders like world TV, online services and print media.
The intellectual property rights are to be maintained by the use of Bedford 2012 logo and ODA’s strategies ensures this is achieved. Organisations that will want to temporarily open showrooms and showcasing items in the park should have a selling right.
SWOT Analysis
Strengths
ODA’s strengths include having a sustainable development strategy that ensures delivery, value for money and the provision of a lasting economic, social and environmental legacy. The major strength includes the presence of strong human resource management that ensures effective and trained employees work on the infrastructure development.
Wallace (2005) explains that this ensures that the value for money is attained as well as the time and budget set is maintained. This has a major impact on the human resourcing strategy as they have to include individuals who are ready to achieve maximum goals set up by the authority.
Weaknesses
The factors that could affect the success of the Olympics include doping controversies for example use of performance enhancing drugs by athletes. The organizers should ensure that all the athletes have been tested to avoid positive athletes for example is it was in the Athens 2004 where many participants had been tested positive. Terror attacks in the country could also affect the success of the event as it was in Munich 1972.
It is therefore important for the people responsible for security to ensure that this is effectively maintained. Critics received from many Londoners could also affect the success of the planned costs of Olympics for example citizen have been forced to pay an increase of 20 Euro per year in terms of council tax. Barton (2004) describes that there are also concerns that unions will strike near of during the Games advocating for bonuses.
Opportunities
Business opportunities are created for example in the construction phase and this will be provided to the communities surrounding the Olympic Park. This impacts ODA’s human resourcing strategy through the implementation of plans in respect of skills and business opportunities, workforce and supply chain management.
Stivers (1999) shows more opportunities will also be created from other parks such as Olympic Village Development and Stratford City. This will cause an impact on local businesses as well as regional.
Employees should therefore be well managed to build venues that offer fair opportunities for all, and that they build according to the planned time and budget. The human resource management should also ensure fair and transparent deliveries in terms of procurement of goods and services.
Threats
The construction deadlines might not be met. The success of the proceedings has not been welcomed for example by individuals outside London who feel that the event will divert international funding therefore posing difficult in funding from the rest of the UK citizens.
Blake (2005) states that the local businesses that have been working in some areas for over 100 years have been displaced are concerned about where to find new sites for their business. The event has received less government support unlike the Manchester one and there are concerns that transport cost might be high which will out price tourists leaving many businesses and events unattended to resulting to losses.
Recommendations
The above study evaluates the economic importance of the sustainable development and its impact to the host country, its value and the benefits achieved in hosting these games. These evaluations need to be known as they are used in the early stages of the Olympic bidding process. The organizers should also be aware of the scale of the economic benefits brought about by hosting the Olympic Games.
Adams (2006) argues that these aspects allow developed promotions in the local context and it also brings about significant benefits to the local economy. The organizing committee is also provided with necessary information on the scale of benefits to have a critical understanding of the cost of bidding.
The higher costs of these Games and higher expectations of quality venues justify these costs and have therefore been used to increase a country’s revenue and the economic impact. Displacements have remained common in a host of countries and problems of pricing, overcrowding and safety.
Barbier (2007) puts it that the impact of the displacements however, yields economic and tourism legacy benefits, which outweighs the short-term losses of the displaced which are estimated to be 375 and 258 million for London and UK respectively. Tourism gains are estimated to be about 2.4 billion Euros for UK and about 1.9 billion for London (House of Commons 2007).
Conclusion
The planning and preparations made by ODA have generated significant activities and necessary information. To achieve legacy impacts, economics and infrastructure impacts, the organizing committee should be capable of demonstrating an understanding the long- term impacts on peoples, community, the economy and the environment.
Currently, there are many organizations undertaking significant work of leading up to the success of the 2012 Games. The set goals and objectives have already generated a large amount of data necessary for the assessment of the overall impacts caused to various organizations.
Sensitivity analysis has shown that the overall impact of the Olympic is likely to give positive change in various aspects such as in increased GDP though there are larger risks estimated to occur during and after the Games because of high levels of uncertainty about the legacy effect.
ODA’s sustainable development objectives provide a means for managing and developing both the existing and the new information in a more structured and comprehensive manner.
References
Adams, P., & Parmenter, B., 2005. ‘An Applied General Equilibrium Analysis of the Economic Effects of Tourism in a Quite Small.’ Applied Economics, vol. 27, pp. 985-994.
Adams, W., 2006. ‘The future of sustainability: Re-thinking environment and development in the Twenty-first Century.’ Report of the IUCN Renowned Thinkers Meeting, pp. 29-31.
Airola, J & Steven, C., 2000. The projected economic impact on Houston hosting the 2012 summer Olympic Games. Houston: Department of Economics, University of Houston.
Balfousia-Savva, S., Athanassiou, L., & Milonas, A., 2003. The economic effect of the Athens Olympic Games. Athens: Kasimati.
Barbier, E 2007, Natural Resources and Economic Development. Cambridge: Cambridge University Press.
Barton, L., 2004. ‘The economic impact of the Olympic Games’. Coopers European Economic Outlook, pp. 18-25.
Blake, A., 2005. The economic impact of the London 2012 Olympics. Nottingham: Christel DeHaan, Tourism and Travel Research Institute, Nottingham University Business School.
House of Commons. Culture, Media and Sport Committee. 2007. ‘London 2012 Olympic Games and Paralympics Games: Funding and Legacy.’ Second Report of Session 2006–07 vol. 1. Web.
London Assembly Environment Committee 2010, The Environmental Sustainability of the London 2012 Olympic and Paralympics Games. Web.
Mark, J 2003, ‘Sustainability – Architecture: Between Fuzzy Systems and Wicked Problems.’ Blueprints, vol. 21, no. 1, pp. 6–9.
Peter, R. K., & John, B., 2008. ‘Sustainability: Science, practice, & policy.’ An Introduction to Sustainable Development, vol. 6, no. 2, pp. 7-9.
Pezzey, J & Toman, M., 2002. ‘The economics of sustainability.’ A Review of Journal Articles, pp. 1-36.
Smith, C & Rees, G 2008, Economic Development, 2nd ed. Basingstoke: Macmillan.
Stivers, R 1999, The sustainable society: Ethics and economic growth. Philadelphia: Westminster Press.
Wallace, B 2005, Becoming part of the solution: The engineer’s guide to sustainable development. Washington, DC: American Council of Engineering Companies.