Impact of Changes on Organizational Strategies and Operations - A Case Study of Sports Direct and Select Fashion Chain

This report analyzes the impact of changes on organizational strategies and operations in the case of Sports Direct and Select Fashion Chain. It discusses the drivers of change, such as mission and vision, and the barriers to change that influence leadership and decision-making. The report also explores the different types of organizational change, including structural, strategic, people, and processes. Additionally, it provides a SWOT analysis of both companies and examines the impact of changes on organizational behavior.

Leading and Managing
Change

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Ways in which changes impacts organisational strategies and operations.............................3
TASK 2............................................................................................................................................7
Impact of drivers of changes on organisational behaviour.....................................................7
TASK 3............................................................................................................................................9
Barriers to change and influence leadership and decision-making........................................9
TASK 4..........................................................................................................................................10
Leadership approaches to change initiative..........................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Changes in organisational structure and functioning are necessary to run a successful business
today. Analysing and thinking over a scenario only will not bring a change, a good leader is
required to bring changes. A process of creating a purpose and sustaining it and creating a
direction to fulfil that purpose are all included in leadership. Following report consists of a
comparison on how changes have affected business, behaviour and strategies of two
organisations. First organisation chosen is Sports Direct (Visinescu, Jones and Sidorova, 2017.).
Sports Direct took over Jack Wills which is a fashion brand, discussion on how this acquisition
affected Sports Direct will be carried. Second organisation seeing changes is Select due to
change in spending patterns and trends in market. Following report gives overview of case
studies, ways in which changes impacts organisations, drivers of change for behaviour in an
organisation, barriers to change influencing decision making & leadership and a number of
leaderships in order to initiate changes.
TASK 1
Ways in which changes impacts organisational strategies and operations
Overview of Case Studies (400)
Sports Direct
Sports Direct is a company dealing in sports accessories. The following case study
discusses about acquisition of a fashion brand named Jack Wills by Sports Direct. This deal
included Sports direct taking over 1700 employees, 100 stores and 6 franchisees in UK and some
in Middle east too. Jack Wills is a well-known fashion brand which have created a good image in
mind of customers and will help Sports direct in diversifying its brand. Sports Direct wanted to
“buy and build” in both fashion as well as sports brand rather than just in one. Sports Direct
started with first negotiating with landlords of chains of Jack Wills in order to reduce rents, also
to manage profit margins by negotiating with a number of its retailers. Company have faced a lot
of pressure in managing its cash flow while doing so. Jack Wills was happy selling out its share

to Sports Direct because Sports Direct is a big brand and Jack Wills have been struggling facing
a lot of problem due to competitors, it would now be easy for company to face competitions
under a huge brand name. In 2019, results were out and sports Direct was successful in managing
businesses of Jack Wills and adding its name to high-street empire.
Select Fashion Change
Select fashion is a fashion brand dealing in high street fashion. Its main target is women
from age 18-45 (Forgang, 2015). Company is also facing problems in cutting rent at its stores
which are presently very high. Most of high street fashion brands are seeing losses in today’s
scenario due to changing perception in spending patterns of people. It is owned by a Turkish
Entrepreneur who in order to cut rents used a solution called company voluntary arrangement.
Under this entrepreneur bought himself out. However, all these efforts were not enough and
company went into searching for other options such as sale of business. Company had a number
of competitors such as Primark, BooHoo and a number of supermarkets. Company have nothing
new or innovative which its competitors cannot provide and the market is already overflooded
with supplies. Also, company has a tight profit margin due to dealing in low cost. There are a
number of brands in high street which have faced this problem. Select is just the one who
recently faced it. negotiating rent and entering into a CVA is best options for brands operating in
high street to face this problem.
Introduction to driver of change
A driver to change can be said to be any external or internal factor which is affecting
working in a business organisation. These changes can be in a number of forms such as changes
in strategy, process, service, product, operation etc. the changes usually begin from drivers which
internally effects an organisation and then moves to external pressures or vice-versa. There are a
number of change drivers such as vision, mission, principles, capabilities, measurement,
experiments, leadership, organisational culture, market research, technology, politics, economy,
environment etc. in these two organisations chosen for this study major drivers for changes are
mission & vision and experiments for Sports direct. Whereas for Select fashion walk major
driver of changes are changing trends in market and competition.
Types of organisational change (structural, strategic, people and processes)

There are a number of changes which have an effect on organisation. When talking about
organisation these changes can be in an organisations structure, strategy, people and its
processes. Below mentioned are categorisation of organisational change with respect to Sports
Direct and Select Fashion Chain (Power, 2015).
 Structural: Structural changes means change in way a company operates in market. It can
be done through economic development. All the changes which are related to change in
hierarchy, command, job structure, market policies are included in it. In the following
companies mentioned Sports Direct is undergoing a major structural change, company is
acquiring a new company which belongs to a different industry. This will require Sports
direct to change its policies, market, target audience etc. this is leading to structural
change in Sports Direct. On the other hand, Select is also facing a structural change as the
owner of company have made an arrangement of CVA to reduce its rents.
 Strategic: Strategic changes in an organisation means making a change in a firm overall,
objectives, vision and missions. It relates to fact that how an organisation conducts its
business. External factors in an environment have a major effect on business due to
which it might plan of certain structural changes. Sports Direct is undergoing major
strategic changes as company is now focusing on “buying and building”. Also select is
facing some strategic changes in order to reduce its rent. They are also planning on
various strategies to cut down their losses and increase their profit margins.
People: Change in people refers to change in human resource of an organisation. When talking
about case studies, Sport Direct is facing a major change in people. This is because after
acquiring jack Wills it is also acquiring 1700 of its staff which is a huge number. There is a big
addition to its human resource (Henningsen and Henningsen, 2015). In contrary there is no such
change in Select as no acquisition or recruitment of new human resources or employee is done in
this organisation.
 Processes: Process refer to a way in which or steps through which an organisation
functions in a given market. There are number of processes carried out by an
organisation, this includes marketing, sales, productions etc. when talking about given
organisations there is a change in process of Sports Direct as company will now deal in
Fashion brands also rather than just sports brand. It needs to manage 100+ retail stores of

Jack Wills which will lead to change in its process. On the other hand, there are some
change in process of Select to as company is now planning on cutting down its cost..
SWOT Analysis of Sports Direct
Strengths Weaknesses
Strength of company is that it can easily
acquire any retailer which have presence in
multi-level business. They have a strong
customer base (Bagozzi, Sekerka,. and Sguera,
2018).
Working conditions have been criticised for
company a number of times. This leads to
demotion in goodwill of company and also
impacts its market share.
Opportunities Threats
Company is now dealing only in sports brand
with acquisition of jack Wills company have a
big opportunity of entering fashion market
with its loyal customer base.
Competition is very high in this industry which
are proving to be threats for company. Its
major competitors are ASOS, Hibbet Sports,
Foot Locker and so on.
SWOT Analysis of Select
Strengths Weaknesses
Company deals in low prices. This is a major
strength of company as most of its competitors
are high priced it is the only one providing
products at medium range.
Providing products at minimum costs does not
provide much profits to firm. This happens
because company have to limit its profit
margin.
Opportunities Threats
Company is planning to sell its business.
Selling to a big brand may help company in
setting its name in market.
There are a number of companies dealing in
same segment in High street. These are major
threats for company. BooHoo, Primark and
super markets are its major competitors.
Bohner and Arnold Change Impact Analysis:
Change impact Analysis was founded by Bohner and Arnold (Jorgensen, Trotter and Hill,
2016). This analysis focused on identifying what are the consequences of change and also what

things are to be modified in order to bring a change. It includes all the risks associates with
change including its effect on resources, schedules and efforts in an organisation.
Change impact analysis of Sports Direct-
When analysing changes made in Sports Direct as per this analysis, there are a number of
consequences due to this change. Company will now deal in fashion along with sports industry
as well. Company now have more resources to handle which includes additional human resource
of 1700 staff. Modifications are done on a number of upfront which includes its structure,
process, people as well as strategies. Company now have new goals and objectives as well. Also,
risks are that company now needs to study two industries instead of one (Drummond and
Hodgson, 2016). Efforts of company will now be focused on two industry rather than just one.
Change impact analysis of Select fashion change-
As per changes that are made in Select it has been analysed that changes took place in its
structure and strategies. Company was facing problems related to paying its rent. It took a major
step to reduce them up to 75% by entering into a CVA. Company have owners who are renting
their places for its functioning, due to this rent are decreased up to 75%. Modifications are also
made in company as they are focusing on various steps to increase their revenues and profits.
Company deal in low profit margins.
TASK 2
Impact of drivers of changes on organisational behaviour
Effect of changes on
 Leadership: Changes in leadership of Select can be seen as company changed its
leadership style from autocratic to democratic as company is now including more
shareholders who now have power to take decisions. Whereas in Sports direct strategic
leadership has changed into transformational leadership in order to make it easy for
employees to achieve their goals.
Individual Behaviour: Individual behaviour in Select changed as they are now worried about
incentives rather than organisational goal. Individual behaviour in Sports direct is also highly
affected as employees now have conflicts due to a sudden increase in human resource and no
proper training (Ngan, Tuan and Dey, 2016 ).

 Team Behaviour: Team behaviour in Select have been affected as individuals focus on
personal benefits rather than benefitting team. Teams in Sports direct are now culturally
diverse as employees of Jack Wills have also joined the company.
Ways to minimise its impact:
 System theory-
System theory is a complex theory which discusses about nature, science and society
frameworks, in order to describe how a group of objects come together and work. It involves
open system, holistic view, goal-directedness, and self-organizing. All these are studies and then
measures are taken to reduce effects on change. In select walk various measures are taken to
increase profits so that rent does not affect it much, whereas in Sports Direct employees are
trained well to avoid conflicts (Scott, 2018).
 Continuous improvement model-
Continuous improvement refers to steps in which regularly process and factors are being
analysed and checked in order to make sure that changes can be made at initial stage
itself. In select company is already thinking of selling itself and CVA have been
initialised so that company do not need to take huge impact from changes. Whereas
changes in Direct Sports is really huge which required pre planning and nor continuous
improvement. However, it can use this strategy in future.
Burke- Litwen Model
Burke letwin is a model of change, it defines cause an effect relationship it also shows
how 12 different elements of organisation have an effect on change in an organisation. The 12
elements included in this model are external environment, Mission and strategy, leadership,
organisational culture, structure, systems, management practice, working climate, tasks and
skills, individual values and skills, motivational level and individual and general performance.
In Direct sports there are a number of this factors which are needed to be considered
important factors are mission and strategy, leadership, system and management practices.
Company needs to focus on these factors and changes brought through them in order to apply
changes positively (Pearson, 2017).
Whereas, when considering Select major factors which are to be affected includes
working climate, external factors (competitors), structure, individual values, skills etc. in order to

make sure that these changes do not effect company majorly above mentioned factors are to b
analysed carefully and steps are be taken to reduce impact of changes
TASK 3
Barriers to change and influence leadership and decision-making
Introduction
The following discussion is carried out on Select Fashion Chain. It a company dealing in
high street fashion. The given company has problems which are relating to payments of its rent.
Company is facing problem in market due to a number of competitors as well. Due to these
problems company brought a change in its structure in which entrepreneur bought out his part.
Company is arranging for a process called company voluntary arrangements (CVA) in order to
negotiate its rent up to 75%.
Force Field Analysis
Force field analysis is described as a process which is perceived by management of
company in adopting change technique in appropriate manner (McCrea, 2015). In addition to
this, the manager of company focuses on factor which influence the social condition in order to
accomplishing goal and objective of business organisation. The external factor helps the
company in taking a move towards achieve objective of company as well as imposes limitation
to take move to accomplish goal within given period of time. In context of Select fashion chain,
it is one of the well reputed fashion company which is located in UK. They provide wide variety
of products and services such as footwear, clothes as well as accessories and many more. In
addition to this, the manager of this company focuses on considering those elements which affect
the social situation for achieving objective within given period of time. This analysis helps the
company in taking an effective decision towards the future growth and development of company.
It helps in identifying the factors which affect the social situation at marketplace. Manager
adopts this technique in order to assess the need and requirement of consumer in an effective
manner in order to satisfy them.
Barrier of Change
Barrier to change is one of the most common factors which occur within business
organisation. These changes are not easily accepted by the employees of company. There are

numerous barriers to change in relation to Select Fashion chain which is going to be mentioned
below:
Lack of Employees Involvement: It is one of the factors which imposes negative impact on the
performance of business organisation. The employees do not show their participation in
accepting changes which occur within company (Greasley, 2017). In relation to Select Fashion
chain, the change which is not accepted by the employees is a basic barrier to change
organisation.
Unknown current state: Sometime, the manager of Select fashion chain does not make
effective strategies to identify the current condition of the market, then it is not easy to
implement change in the company. Therefore, it is considered as a barrier to change for
company.
Effect on decision making
 If the manager does not make effective strategy, policies and procedure to identify the
changes that take place within market than it is not possible for them to take effective
decision which is beneficial for Select fashion chain company.
 Sometime, the management of company do not show confidence on implementing the
changes thus it creates a barrier in change and effect the decision in adverse manner.
Effect on Leadership style:
 Herein, the leader must have the quality to communicate with its employees regarding
changes which arise within business organisation. Otherwise, barrier to change imposes
negative impact on performance of employees working within business organisation.
It is not easy for leader to bring individual together for implementing changes within company.
In context of Select fashion chain, it is not easy for leader to convince the staff member to accept
the changes which is beneficial for company. These are the most common barrier to change for
management of company (Tirmizi, and Vogelsang, 2016).
TASK 4
Leadership approaches to change initiative
Appropriate Situational Leadership style advantages and Disadvantages
Leadership is important in every organisation because it helps in achieving the goals and

objectives in proper manner. In context to Select's, they use leadership so that task
assigned to each and every individual are completed within a period of time. There are
various types of leadership styles which are used by the firm such as situational,
directive, achievement oriented and participative. It depends upon the leaders or mangers
of the company to adopt which types of style. In relation with Select's, leader of the
enterprise uses situational leadership style within the organisation.
Situational leadership is one in which style is adjusted by the leader to maintain
the stability in the team and to achieve goals and objectives by influencing other or
members of the team. For example- Select's has been in a difficult situation and company
is selling its business so, many companies have targeted the firms and big competitors
like Primark and Boo Hoo has been affecting the business of Select's. So, manager of the
firm selected the situational leadership in order to accept the change in the market.
Another, form of leadership styles is participative leadership style in which
leaders in the firm involves everyone in decision making and this leads to high
motivation as well as morel of personnel. In relation with Select’s, manager of the
enterprise makes effective decisions by involving every individual in the firm.
When change is new and it just have been initiated by the firm new strategies as well as
tactics are used to overcome challenges and threats. There are different types of change
such as operational change, reactive change, directional change etc. Depending upon the
need and requirement change is adopted. In relation with Select's, they use various types
of change theories and models such as Kotter’s and Lewin change model.
Kotters Change Model
This model was introduced by John Kotter’s, and according to this change is necessary
and it leads to success for longer period of time. This involves 8 steps which are
mentioned below-
• Sense of urgency- In business various activities, functions and operations are involved
and where the change is needed is to be identified in appropriate manner. In relation with
Select, marketing team of the firm make ensure that of there is need of change than it is

to be done.
• Guiding Coalition- This states that when change is adopted it is responsibility of the
firm to convince or influence other also to accept the change.
• Vision for change- When going with change in the firm firstly vision and mission of
using the change is to be clear then only enterprise will be able to achieve objective in
appropriate manner.
Communicate- After vision has been known, importance of that idea and thoughts are to be
communicated properly so that outcomes come positive (Archibald and Archibald, 2016).
• Remove obstacles- When change occurs there are ample number of obstacles or hurdles
which affect the process so awareness and preventive measures are to be taken.
• Short term Wins- After adopting the change, there should be a small achievement about
that change so the employees in the firm get motivated.
• Improvement in change – When achievement of the change got celebrated it often
happen that overconfidence arises. So, to be prepare for future activities or events firm
should analyse where the improvement is needed to achieve higher growth.
• Anchor the change- After examining the effect of change in the firm, HR manager of the
company ensures that need of change is adopted in effective manner when needed.
Lewin Change Model
According to this, there are different types of change behaviour which are to be analysed
by firm in proper manner. This model includes three stages which are mentioned below-
• Unfreezing- In organisation it is important to analyse the need of change and when it is
done it includes removing of old techniques, methods etc.
• Change- After unfreeze, it is essential for firm to adopt it in proper way and to accept the
new methodology and procedures.
• Refreeze- Further comes the refreeze stage in which entities make ensure that change is
being adopted in appropriate manner within the firm.

CONCLUSION
The following report concludes that changes in business operations and functioning are
crucial. It has an effect on organisational structure, strategies, processes, behaviour an so on.in
order to do an internal analysis SWOT analysis is done for both the chosen companies. A
number of other models are also applied in this report in order to understand drivers of changes,
effects of changes on leadership and behaviour. Various ways to minimise impact of changes in
functioning of organisation is also mentioned. At the end report discussed various ways to
manage change and attain maximum profits out of it.
REFERENCES
Books and Journals-
Archibald, R .D. and Archibald, S., 2016. Leading and Managing Innovation: What Every
Executive Team Must Know about Project, Program, and Portfolio Management.
Auerbach Publications.

Tirmizi, S. A. and Vogelsang, J .D. eds., 2016. Leading and managing in the social sector:
strategies for advancing human dignity and social justice. Springer.
McCrea, N. L., 2015. Leading and managing early childhood settings. Cambridge University
Press.
Scott, E.S., 2018. Leading change. Leading and Managing in Nursing-E-Book. p.320.
Drummond, H. and Hodgson, J., 2016. Escalation in decision-making: Behavioural economics in
business. Routledge.
Visinescu, L. L., Jones, M. C. and Sidorova, A., 2017. Improving decision quality: the role of
business intelligence. Journal of Computer Information Systems. 57(1). pp.58-66.
Power, D. J., 2015, May. ‘Big Data’Decision Making Use Cases. In International Conference on
Decision Support System Technology (pp. 1-9). Springer, Cham.
Bagozzi, R .P., Sekerka, L. E. and Sguera, F., 2018. Understanding the consequences of pride
and shame: How self-evaluations guide moral decision making in business. Journal of
Business Research. 84. pp.271-284.
Ngan, T. T., Tuan, T .M., Minh, N .H. and Dey, N., 2016. Decision making based on fuzzy
aggregation operators for medical diagnosis from dental X-ray images. Journal of
medical systems. 40(12). p.280.
Greasley, A., 2017. Simulation modelling for business. Routledge.
Forgang, W. G., 2015. Strategy-specific Decision Making: A Guide for Executing Competitive
Strategy: A Guide for Executing Competitive Strategy. Routledge.
Henningsen, D .D. and Henningsen, M. L. M., 2015. A preliminary examination of perceptions
of social influence in group decision making in the workplace. International Journal of
Business Communication. 52(2). pp.188-204.
Jorgensen, P .W., Trotter, D. C. and Hill, T .R., 2016. Ecosystem services assessments in local
municipal decision making in South Africa: justification for the use of a business-based
approach. Journal of environmental planning and management. 59(2). pp.263-279.
Pearson, R., 2017. Business ethics as communication ethics: Public relations practice and the
idea of dialogue. In Public relations theory (pp. 111-131). Routledge.