Russian karting market - Курсовая работа

Introduction Karting is the sport that is considered to be “the youngest” part of motorsport that gives young drivers an opportunity to learn the basics of racing, to improve their physical abilities and, most importantly, to start their career in motorsport that may lead them to Formula 1 (F1) world championship - most prestigious race championship in the world. Almost all F1 drivers live like celebrities and receive astronomic salaries. However, this is not how it works at the start of each driver’s career, as the karting market in generally works in the different way. All drivers irrespective of their age act as clients, while race teams act as suppliers of racing services. These services include the transportation of cars to competitions, engineering and mechanical work with cars during competitions, coaching work, administrative services and many others. Drivers (or their parents in case of young drivers) usually pay very large amounts for these services. Here I will provide only preliminary results of changes in the non-financial performance of MSKS K.P. as compared before and after the introduction of this method. In this paper I will first provide the Russian karting market analysis, present its main features and problems, explain what do I mean by race team management efficiency and why sales and marketing processes are of such a great importance for the race team management. In the second chapter I will turn to the development of the model to evaluate efficiency of different methods. First, I will describe the main variables which probably influence sales. Second, I will use OLS model to determine the significance of these variables and then state some serious problems of this model. Third, I will describe the method of Structural Equation Modelling (SEM) in general using an appropriate scientific literature. In the next chapter I will come to the process of SEM testing by introducing my data sources and data collection methods. Next, I will develop SEM model which can be used to study the functioning of the race team and to evaluate the efficiency of different marketing instruments In the final chapter, I will present the main results of SEM, compare them to the results of OLS and explain their possible usage in the race team management. That is, according to the main goal of my work, I will develop the race team management method. Next, I will introduce some preliminary results of this method implementation for the MSKS K.P. race team. I will also name some possible actions which can be done in the further work to improve the reliability of current results and to extend the current analysis. Finally, I will make a conclusion about the completed work. 1. Russian karting market analysis In this chapter I will provide the market analysis which is required to understand the mechanics of this market and to develop a suitable model to evaluate management efficiency. I will start from some background information about the market which will help to better understand all business processes of race teams. Second, I will present the most essential market features and characteristics for my further analysis. These characteristics are: asymmetric information, similar cost structure, high mobility of labour, excess supply of racing equipment and lack of drivers. Next, assuming that stated above features are true, I will define the management efficiency as the efficiency in sales and marketing processes. Starting from this moment I will use this definition of efficiency in my work. Finally, I will turn to the next chapter where I will present methods to evaluate management efficiency. Background Information about the Market This section is aimed to give you a better understanding of the Russian karting market mechanics. First, I will introduce the main agents in this market and their behaviour. Next, I will describe the interaction of 2 types of agents in which we are the most interested - race teams and drivers. The demand side in this market is represented by drivers. The market is quite small in the number of drivers (about 1 000 drivers by rough estimate), but rather big in the money value (about 5 bln rubles per year by rough estimate) as the participation in competitions is very expensive. Participation costs usually include: administrative fees, transportation costs, living costs, mechanical and engineering service costs, expandable materials and some others. There also exist some fixed costs (car, equipment, tools and others) which are incurred either by drivers or by race teams, but usually they are incurred by drivers.