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The 2020 Summer Olympics in Madrid Report

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Updated: Feb 11th, 2020

Introduction

Motivation

The decision to bid for hosting the 2020 Olympic Games has been motivated by the fact that it will help Spain to boost its economic growth. Currently, Spain is in recession and hosting the 2020 Olympics will spur investments that will enhance economic recovery. Hosting the event will also enable Spain to promote peace and harmony in the world.

Commitment

The bid to hold the 2020 Summer Olympics in Madrid is supported by two companies namely, Coca-Cola and Adidas. These companies are important since their products directly support the Olympic Games. For instance, Coca-Cola’s soft drinks will be used by the participants.

The two companies have pledged to support the bidding process by donating $ 1.5 billion. The government of Spain has also pledged to support the bid process through a grant of $ 35 million. Additionally, the government will be responsible for any financial short-comings. See the appendix for letters of support.

Executive Summary

The IOC should consider Madrid’s bid to host the 2020 Summer Olympic Games since the city already has adequate facilities to host the event. Due to the availability of adequate venues, transportation networks and hotel bed capacities, little construction will be required.

This will reduce the cost of hosting the event and prevent environmental degradation. Additionally, Spain has successfully hosted Olympic Games in Barcelona. Hosting the event will enable Spain to promote peace and unity. Spain will also benefit economically by hosting the event.

Community Overview

Community Profile

Spain has adopted a constitutional monarchy system of government. The executive is made-up of a Council of Ministers and is headed by the Prime Minister. Spain’s capitalist economy is the twelfth largest in the world. Spain’s key industries include tourism, shipping, textile, automobile and energy. The main tourism products include summer resorts and beaches, circuses, national parks, and business tourism.

In 2008, Spain had a population of 46 million people. The country’s favorable weather pattern encourages outdoor sporting activities. During winter, temperatures fall below 0 degrees and reach a high of 10 degrees. During summer seasons, temperatures range between 20 to 30 degrees.

Little or no rainfall is received during the summer. Consequently, the summer weather in Madrid will favor the Olympic outdoor games such as athletics (Karadakis, Kaplanidou and Karlis, 2010, pp. 170-185).

The main means of transport in Madrid include subway networks, bus services, taxi service, rental cars and the train. Metro train services serve 161 stations and cost 1.15 Euros per round trip. The commuter train connects key areas in Madrid and costs 5 Euros per trip.

Government Support and Partnerships

The government support is an important catalyst for the success of the bid for a mega sports event (Westerbeek, Tuner and Ingerson, 2002, pp. 303-322). Consequently, the government of Spain has pledged to support the bid to hold the 2020 Summer Olympics in Madrid.

The government will provide cash to facilitate the biding process. Additionally, the government will fund the construction of the required infrastructure. The Municipal of Madrid has also pledged to support the bid both financially and in kind.

Community Support and Partnerships

The support of the community is critical for the success of the bid and the actual event. Currently, 84% of Spaniards support the bid to host the 2020 Summer Olympics in Madrid. The citizens have expressed their support through direct contributions of funds to the bid committee. Private companies have agreed to support the bid and the event by buying advertising rights and donating funds to the bid committee.

Community Achievements

In 1982, Spain hosted the FIFA World Cup tournament in Barcelona. A total of 24 teams from different parts of the world participated in the tournament. Approximately 2,109,723 people attended the event. The country realized a profit of about 10 billion by hosting the event.

In 1992, Spain hosted the Summer Olympics in Barcelona. 9,811 athletes participated in the event. Approximately 84,067 people attended the event. Spain earned $ 16.6 billion by hosting the event. Additionally, Barcelona’s hotel bed capacity increased by 34.9% and tourism grew by 12%.

Host Organizing Committee (HOC) Overview

Legal

Spain has an effective legal framework that will enable Madrid to host the 2020 Summer Olympics. Prior to hosting the 1992 Olympics, Spain adopted most of the laws and regulations governing Olympic Games.

The Madrid Organizing Committee of Olympic Games (MOCOG) will be registered as a not-for-profit limited company. Its shareholders will include the government of Spain, the Municipality of Madrid, and the Spanish Olympic Committee.

Organization

The MOCOG will be responsible for organizing and staging all the Olympic Games and Paralympics Sports. MOCOG will also be responsible for the test events that will be conducted before the 2020 Olympics. These events include the opening and closing ceremonies, torch relays, and the inspire program. The MOCOG will also organize the Madrid 2020 mascots and festival.

Key Individuals

The organizing committee will be chaired by the president of the Spanish Olympic Committee. The mayor of Madrid will be the committee’s vice chair person. Other members of the committee will include Spain’s minister for sports and the Minister for Tourism.

Positioning

  • Vision

Madrid intends to deliver the best Summer Olympic, as well as, Paralympics Games experience that will inspire and entertain everyone. The Madrid 2020 Olympics will ensure a real legacy and a sense of belonging to all.

  • Mission

By hosting the 2020 Summer Olympic Games, Madrid will promote peace and harmony. The event will also help in improving the economy of Spain by creating jobs for the youth.

  • Core values

The bid to host the 2020 Summer Olympic in Madrid will be guided by three core values namely, cohesion, unity and fairness. All participants will be given equal opportunity to participate in order to ensure fair play.

Transition Plan

After the approval of the bid, the bid committee will be transformed into an organizing committee. In light of this transformation, two subcommittees will be formed.

These committees include the MOCOG Athletes’ Committee and the MOCOG Senior team. The organizing committee, MOCOG, will coordinate and supervise the activities of the MOCOG Athletes’ Committee and the MOCOG Senior team.

Business Plan

Finance

Hoisting a mega event requires a significant amount of financial resources. Thus, an effective budgeting process must be put in place to ensure that the scare resources are allocated efficiently (Jago, Lipman and Vorster, 2010, pp. 220-237).

Hosting the event will cost $ 4.5 billion. The event is expected to generate $ 5 billion in revenues. Additionally, the Committee has set aside a contingency fund of $ 150 million to cater for any unforeseeable risks. See the appendix for the budget.

Sales and Revenue Generation

Given the large amount of financial resources required to manage a mega event, multiple and diverse sources of revenues should be considered by the organizers. Hence, the Madrid 2020 Olympic Games organizing committee will generate the required funds through the following sources.

Source of Funding Amount in millions ($)
Self-generated revenue program 450
Ticket sales 300
Sponsorship sales program 600
Merchandising and licensing program 350
Special projects 450
Donations program 800
Grants program 1450
Fundraising initiatives Live auctions 250
Silent auctions 200
50/50 raffles 150
Total 5000

Marketing and Communication

The purpose of marketing and communication is to help an organization to reach its clients and create awareness about its products (Alves, Cerro and Martins, 2010, pp. 22-37). In the context of the Madrid 2020 Olympics, the objective of the marketing strategy will be to convey the information about the event.

The targeted audience or markets include the countries that intend to participate, corporate sponsors, and athletes. The audience will be reached through messages that capture the theme of the event, its mission, vision and expected benefits. The marketing techniques will include advertising and promotional, as well as, public relations activities.

The adverts will be posted in print and electronic media, as well as, outdoor advertising channels such as billboards. Local and international celebrities will endorse the event to enhance its publicity. The Madrid 2020 Olympic Logo will be designed in a manner that reflects the Olympic tradition and the culture of Spaniards.

Additionally, an official website for the Madrid 2020 Olympic Games will be designed to facilitate communication with the public.

Human Resources

The quality of talent and human resources employed to deliver a mega sporting event determines the participants’ experience (Yu, Wang and Leo, 2012, pp. 46-65). Additionally, the competency of the workforce is central to the success of the event.

The organizing committee will require 150,000 employees to deliver the Madrid 2020 Olympic Games. 50,000 staff members will be volunteers, while the remaining 100,000 will be directly employed by the organizing committee.

The staff will be categorized into three groups namely, technical, administrative and consultants. Recruitment will be done as soon as the bid is accepted. This will be followed by training, orientation and recognition of the staff.

Economic Impact

Empirical studies reveal that hosting a mega event helps in enhancing economic growth and development of the host country and city. The benefits often accrue in the short-term and in the long-term. The Madrid 2020, Summer Olympics will benefit the economy of Spain in the following ways. About 500,000 visitors are expected to attend the event.

In order to accommodate all the visitors, substantial investments will be made on infrastructure, hotels, and health care facilities. The operational expenditure is projected to be $1.5 billion while the capital cost is expected be $ 2 billion.

Spending by visitors during and after the event is projected to be $ 6 billion. The spending by visitors will enhance growth in the tourism sector, hospitality and transport industry, among others. Consequently, Spain’s GDP growth after the event is expected to increase by 5.5%. The unemployment rate is expected to reduce from the current rate of 18% to 9%. Tax revenues are also expected to rise by 4%.

Legacy Plan

The legacies associated with hosting the 2020 Olympic Games in Madrid include the following. The financial legacies include construction of roads and expansion of the rail network within Madrid. 3 new stadiums will be constructed in Madrid and the existing ones will undergo renovations.

Additionally, the Spaniards who will be recruited to deliver the event will benefit from training and education programs. The financial benefits include the financial surplus that will be generated by the organizing committee. These funds will be managed by the HOC for the purposes of promoting sports activities in Spain.

Critical path

The table below shows the important dates for the bid process.

Date Event
15 February 2012 Application to host the 2020 Summer Olympics
2 March 2012 Creation of the Bid committee
11 June 2012 The bid committee sends the bid document to IOC
24 August 2012 Inspection of Madrid City by the IOC
12 November 2012 IOC announces the host country

Operation Plan

Sport Technical Requirements

A successful event must be backed by a clearly defined timeline and operational plan. Consequently, the Madrid Summer Olympic Games bid committee developed the following operational plan. The proposed opening data is 8th August 2020 at 3.00 pm and the proposed closing data is 24th August 2020 at 5.00 pm.

The choice of these dates is based on the fact that schools will be closed, thereby easing traffic on most transit routes. Additionally, the dates will coincide with the summer season.

The required sports equipment and materials will be supplied by both local and international suppliers. The coaches will be appointed by the participating countries while the officials will be appointed by the IOC. The table below shows the event schedules

Date Event
2 April 2020 to 3 may 2020 Test events
3 June 2020 Olympic Flame and Torch leaves Greece
8 August 2020 Flame and Torch arrives in Greece
8 August 2020 Opening ceremony
9 August 2020 to 24 August 2020 Olympic Games
24 August Closing ceremony
24 August Presentation of medals

Host Competition Venues

Organizers of mega events must provide adequate venues in order to enhance the experience of their audiences. Madrid already has a number of stadiums to host the 2020 Summer Olympic Games. The five stadiums to be used are listed in the table below. See the appendix for venue layouts and maps.

Stadium Capacity Seats
Santiago Bernabeu 80,354 All-seater
Vicente Calderon 57,500 All-seater
Circuito del Jarama 40,000 All-seater
Plaza delas Ventus 25,000 All-seater

Since these stadiums were built in 1960s, they will be renovated to make them suitable for Summer Olympics. Additionally, these stadiums are currently being used by various football clubs. Thus, the organizing committee will sign a contract with the stadiums’ management to facilitate their use for Olympics.

A new Olympic Park and Village will be constructed in Madrid to host various activities such as the opening and closing ceremony. Three new stadiums will also be constructed in Madrid to supplement the existing ones.

Athlete and Team Services

The athletes, coaches and officials are likely to be motivated if they are offered special services. The motivation will improve their performance which in turn, will improve the entertainment experience of visitors.

Consequently, the special services that will be provided for athletes and officials include free health insurance, transportation services, and VIP seats in the stadiums. Additionally, their accommodation costs will be covered by the organizing committee.

Accommodations

Madrid’s ability to host the 2020 Summer Olympic Games can be demonstrated by its hotel bed capacity. According to IOC, the hosting city should have at least 39,000 roams in 3 to 5 star hotels. These are to be used by the athletes and the media.

Additionally, there should be at least 11,000 rooms to be used by OCOG and the visitors. Madrid has a total of 429 hotels with a total bed capacity of 82,894. 90% of these hotels are 4 or 5 star hotels and offer first rate comfort. The hotels are also located within 15 kilometers from Madrid city center.

The average room price by 2020 is projected to be $150, $ 180, $ 250 for 3, 4, 5 star hotels respectively. The price is inclusive of taxes.

Food and Beverages Services

The athletes, coaches and officials will be entitled to food and beverages in their hotels. Additionally, soft drinks will be provided to the participants in the venues. Given the diverse background of the participants, there will be a variety of meals and drinks to choose from. Five outdoor catering companies will be contracted to supply the drinks within the venues.

Transportation Services

A mega event requires an efficient transportation system to facilitate effective connection from one venue to another (Johnson, Biesgert and Elsasser, 2004, pp. 27-36). In Madrid 2020 Olympics, the main transportation systems will be the railway line and the road network.

Special busses will be provided to transport the VIPs, officials, athletes, and managers. Truck and train companies will be contracted to transport sports equipment and materials. The number of dedicated bus lanes will be increased from 170 to 250 to avoid traffic congestion. Parking permits will be arranged in advance by the municipal of Madrid.

Registration and Accreditation

Due to the large number of the expected participants and visitors, registration and accreditation will be done online through the MOCOG website. Apart from online tickets, visitors will also purchase tickets from stores and restaurants. Participants from overseas will be registered upon arrival at Madrid International Airport. Registration will be done 24 hours a day.

Security Services

When hosting a mega event, the organizers must clearly understand the security needs in order to prevent any security risks that may interrupt the event (Heslop, Nadeau and O’Reily, 2010, pp. 404-433). The organizing committee will spend $ 80 million on security.

The security services will be provided by the government of Spain’s police and private security firms. There will be access control measures such as check points and identity verification in key areas such as airports, venues and hotels. The armed forces will provide security and rescue services in case of an emergency.

Information Technology

The organizing committee is aware of the fact that an efficient communication system will be necessary to facilitate effective coordination and management of the event. Thus, Orange and Vodafone Telecommunication ltd will be contracted to provide, install and maintain an effective radio and telephone systems, as well as, all IT devices. 5.10 Venue Management and Operation

The organizing committee will be in charge of venue management and operation. All venues will be renovated before the event so that they can suite the needs of a Summer Olympic Games. The committee will set aside $30 million for the maintenance of the venues during the event. The funds will be used for activities such as cleaning or fixing any damages.

Media Services

Given the importance of Olympic Games, the event is likely to attract extensive media coverage from TV and radio stations, as well as, print media. Hence, the organizing committee will establish three media centers for the TV, radio and print media respectively.

The media centers will be located within the Olympic park in order to facilitate ease of access. Each media center will have a capacity of 30,000 m2 and will be fitted with modern information and communication equipment and fast internet.

A broadcast center with a capacity of 10,000m2 will also be located in the Olympic park. The results center will be housed in the Olympic Village. It will have a capacity of 15,000m2.

Hospitality and Protocol

There will be reserved/ special seats for the VIPs, athletes and coaches. Special transport services will also be arranged for the VIPs, athletes and the coaches. Additionally, they will receive special reception at the venues. The staff and volunteers will be trained to ensure protocol is followed (O’Brien and Chalip, 2007, pp. 296-304).

Ceremonies and Special Events

The opening ceremony will involve a display of Spanish art, music, dancing, culture and the 2020 Olympic Games motto. The president of the organizing committee, the IOC president and the representative of Spain will give speeches. The closing ceremony will entail a speech from the organizing committee and closing remarks by the IOC president.

Medical facilities

Madrid already has well equipped health facilities to provide health care during the event. However, two more hospitals will be constructed to supplement the existing ones. Medical insurance will be provided to the participants to enhance access to health care. Emergency health care services such as first aid and ambulance services will be provided in the venues.

Bilingual

Given the diverse background of the expected visitors and participants, three languages will be used for making announcements and communication. The three languages include English, French and Spanish.

Environmental Services

The organizing committee is committed to environmental sustainability during and after the event. The event will have little impact on the environment since the use of existing venues will reduce the need for constructions. Additionally, efficient technologies will be used to reduce environmental pollution through waste material.

Warehousing, Storage and Procurement

The organizing committee will procure and store all the required equipment and materials. A procurement and inventory management software will be developed to manage the use of equipment and materials. A warehouse with a capacity of 30,000m2 will be hired for the storage of all equipment and materials.

Risk Management

Every mega event is associated with a number of risks. The organizing committee has set aside a risk fund of $ 100 million to address the risks that might disrupt the event. Appropriate insurance polices will be used to cover all insurable risks. Additionally, the organizing committee will ensure that the event meets the standards of the IOC and complies with Spanish law.

Conclusion

The evaluation conducted by the organizing committee reveals that Madrid has already achieved most of the IOC requirements for hosting the 2020 Summer Olympics. In particular, Madrid already has adequate venues, hotel bed capacity, health facilities and transport system.

The government of Spain has guaranteed provision of funds for the construction of any additional facilities. Additionally, the organizing committee has promised to support the bid by ensuring that all IOC regulations are met. Hosting the event will enable Spain to promote world peace and to boost its economy.

References

Alves, H., Cerro, A., and Martins, V., 2010. Impact of Small Tourism Events on Rural Places. Journal of Place Management and Development, 3(1), pp. 22-37.

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Floros, C., 2010. The Impact of the Athens Olympic Games on the Athens Stock Exchange. Journal of Economic Studies, 37(6), pp. 647-657.

Heslop, L., Nadeau, J., and O’Reily, N., 2010. China and the Olympics: Views of Insiders and Outsiders. International Marketing Review, 27(4), pp. 404-433.

Jago, L., Lipman, G., and Vorster, S., 2010. Optimizing the Potential of Mega Events: An Overview. International Journal of Events and Festival Management, 1(3), pp. 220-237.

Johnson, J., Biesgert, T., and Elsasser, H., 2004. Sustainability of Mega events: Challenges, Requirements and Results: The Case Study of the World Ski Championship st. Maritz 2003. Tourism Review, 59(4), pp. 27-36.

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O’Brien, D., and Chalip, L., 2007. Executive Training Exercise in Sport Event Leverage. International Journal of Culture, Tourism and Hospitality Research, 1(4), pp. 296-304.

Swaddling, J., 2000. The Ancient Olympic Games. New York: John Wiley and Sons.

Tooley, K., 2007. The Olympic Games. New York: Routledge.

Westerbeek, H., Tuner, P., and Ingerson, L., 2002. Key Success Factors in Bidding for Hallmark Sporting Event. International Marketing Review, 19(3), pp. 303-322.

Whate, L., 2004. Olympic Games. New York: McGraw-Hill.

Yu, L., Wang, C., and Leo, J., 2012. Mega Event and Destination Brand: 2010 Shanghai Expo. International Journal of Event and Festival Managemnt, 3(1), pp. 46-65.

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