Nike's Strategic Shift: A Change Management Case Study

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Understanding and leading changes

TABLE OF CONTENTS
Introduction......................................................................................................................................1
Task 1 (Managing the impact of change)........................................................................................2
Part A: Assess the different drivers for change using real world examples and compare how
each of the organizations have responded to the drivers for change...........................................2
Part B: Evaluate the ways in which internal and external drivers of change may affect the
leadership behaviour and the behaviour of the teams and individual..........................................4
Task 2...............................................................................................................................................7
Produce a force field analysis that identifies the driving and resisting forces associated with
change..........................................................................................................................................7
Explain different barriers for change and analyze the driving and resisting forces to determine
how they influence leadership decision making in the organization...........................................9
Task 3.............................................................................................................................................11
Apply different leadership approaches to deal with change in Nike with appropriate range of
models and framework to support the change...........................................................................12
Critically evaluate the effectiveness of leadership approaches and models of change
management...............................................................................................................................19
Conclusion.....................................................................................................................................23
References......................................................................................................................................24

LIST OF FIGURES
Figure 1: System theory analysis.....................................................................................................5
Figure 2: Burke- Litwin model........................................................................................................6
Figure 3: Force field analysis..........................................................................................................7

Introduction
Leading changes and its planning in the context of the organisation will help to improve the
existing business operations, structure and functions. The current report will discuss the case
study of Nike, which provides sports products to its customer, but now they want to bring new
product range by getting into casual clothes and shoes. The report will compare Nike and Adidas
regarding changes and its implementation through which they will improve brand value and
goodwill in the market by meeting customer expectations. The report will also discuss the
application of leadership approach and change model for dealing with the changes in an effective
manner.
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Task 1 (Managing the impact of change)
Part A: Assess the different drivers for change using real world examples and compare how each
of the organizations have responded to the drivers for change
Changes in every organisation require so that they can easily meet the competitive edge and
enhance their sales along with profit. Implementation of the changes will also support the
organisation to satisfy their customer needs and demands from their brand. The present section
will discuss the case of Nike and Adidas by comparing changes and their strategies to handle the
changes that are conducted in their business operations. The implementation of the change model
is required but before that, both the organisations need to analyse its customer’s preferences and
employees expectations so that changes will be done accordingly (Hayes, 2018). As per the
discussed context, the organisation consider unfreezing step to support their change execution to
cover the productive strategies and operations related to change.
Drivers for change and respond of Nike to handle the changes
In respect of change implementation, Nike use fix, grow and rebuild approach so that they can
analyse the requirement of change for their business growth and development. It is essential and
significant for Nike to execute change in its product range from sportswear to other fashionable
clothes and casual shoes so that they attract new customers towards their products. As per the
case of Nike, it is analysed that loss of customers and brand reputation is facing by them but with
the help of effective marketing strategies they can overcome its losses (De Brabandere, 2016).
Apart from change implementation, they should avoid the compromise on product quality and
price so that customer satisfaction level can be maintained. After implementing change in the
product line, now a team of Nike should focus on the attractive promotional and advertising
strategies to influencing the choices of its customers. They can use online sites and social
networking sites for promoting products. Nike can get into a contract with other supermarkets
and clothing stores for distributing their products in the market at low prices so that they can
cover a large segment of the market.
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Drivers for change and respond of Adidas to handle the changes
Apart from Nike, Adidas also changes its operations and strategies for attracting a new segment
of the market. According to the market change, Adidas is planning to implement change in its
technology section so that they can provide better online services to its customers. The sales and
revenue of Adidas are getting decreased due to which they planned to launch a new application
on its e-commerce site through which customers can online try the clothes and shoes on their
body (Tidd and Bessant, 2018). This application will help Adidas to enhance its sales as an
online trail of clothes will satisfy the product purchasing of the customers. Online delivery of the
Adidas sportswear will help them to grab the high attention of its customers and that improve its
market share and online customer base.
Impact of change on the organisations
The planned changes in the Nike and Adidas support them to bring changes in its internal
business structure and business operations. Change implementation in both organisations will
also increase its market share, goodwill, and customer base and profitability ratio. The new
product line, new product and new technology change increase productivity and profitability.
With the implementation of changes in the business, the employees working and management
structure also get influences such as- training is require for the marketing team to improve the
brand awareness in the market (Hughes and Wearing, 2016). The responsibilities of the
employees also get increased with the changes and increased brand value also satisfies the
employees in respect of employment.
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Part B: Evaluate the ways in which internal and external drivers of change may affect the
leadership behaviour and the behaviour of the teams and individual
The present section will discuss the internal and external drivers of change in the context of Nike
along with its impact on the Nike leadership, team and individual behaviour. The internal change
drivers are capabilities, the dissatisfaction of employees, resources and desires. External changes
drivers will be analysed from the influence of the leadership, team and individual behaviour.
Internal change drivers in the context of Nike
Internal change divers are related to the internal business capabilities, resources, desires and
dissatisfaction. Because of the product line change, various resources are saved by Nike and used
for another purpose to earn a profit. The Nike leaders need to motivate their employees for using
existing resources. Job satisfaction for employees is necessary so that the managers of Nike can
avoid employee's turnover (Burgelman, 2017). High level of motivation through rewards and
benefits can be provided to employees for achieving a high commitment of employees. The
internal capabilities and strengths of employees also support Nike to achieve competitive
benefits. Skilled human resources are required to fulfil the internal capabilities vacancy.
External change drivers in the context of Nike
Political, economic, social and technology are the external change divers which influence the
internal structure and functions of Nike. As per the foreign laws, there are various committees
which support the Nike to conduct free economic trade within the countries which will increase
Nike market share. With the positive government policies, procedures and behaviour the team of
Nike get motivated by leaders to enhance their efforts and improve Nike operations. Nike can
also gain an operational advantage if resources are given on the low cost so that they import
products in different locations.
The cost benefits also gained by Nike when they offer products on low prices as compare to its
competitors (Haggège et al, 2017). The customers get attracted to low prices and high quality as
they are price sensitive, especially in the case of homogenous products. To influence customer
choices it is essential for Nike to provide products at low prices. They can also conduct
Corporate Social Responsibility activities for covering social aspects of society. By using the
new technology sources for marketing and supply of products also help them to meet customer
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satisfaction. Provide IT training to existing employees for improving the current status of the
business.
Measures that can be taken to minimize the negative impacts of change on organizational
behaviour
Burke- Litwin model and system theory can be applied by Nike to minimize the negative impact
of the changes on the team and individual behaviour. System theory is the effective theory for
Nike to analyse the areas because of which Nike is not able to grab the customer’s attention. This
theory also evaluates the requirement of the availability of the resources in the context of Nike
and its execution to get the quality of results. So, the use of system theory will lower down the
negative impact of the change on the behaviour of the business.
Figure 1: System theory analysis
(Source: System theory, 2019)
Burke- Litwin model cover different elements such as- leadership, mission, culture, strategy,
external environment and structure. External environment involves regulations and laws framed
by the government so that economic changes and political changes can be handled effectively.
The manager of Nike conducts an audit to analyse the issues in the business and its impact.
Leadership skill is also used to implement change smoothly so that business operations can be
managed. Nike values its employees and customers so that internal culture issues can be avoided
and provides a healthy working environment (Stone, 2015). The mission of Nike is to satisfy its
customers, and for this, they are planning to provide a new range of products at affordable prices.
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Hierarchy structure is applying by the management team of Nike to delegate the roles and
responsibilities effective among the existing workforce.
Figure 2: Burke- Litwin model
(Source: www.toolshero.com, 2019)
Evaluate organizational response to change
The change process shows the effective execution of the change within the Nike procedure and
that helped Nike to cover a large geographical area to expand their new product line. It is
essential for Nike to use high technological factors for enhancing productivity so that high
market segment can be targeted. Nike is a global organisation, so with the change
implementation, they can effectively respond towards competitive changes. In the Nike change
model cover, some problems identification regarding change barriers and that supported them to
apply strategy which helps them to overcome the barriers (Hayes, 2018). Healthy organizational
culture also satisfies the employee’s desires and support Nike to achieve business goals with
respect to reducing staff pressure and stress.
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Task 2
Produce a force field analysis that identifies the driving and resisting forces associated with
change
Force field analysis
This analysis mainly supports Nike for addressing the drivers of changes that force the
organisation to implement change. Force field analysis assists force resistance, which will arrive
along with effective support of Nike. The analysis focuses on the two sections such as- forces in
the change that are in favour and forces in the changes which are resistance. Favourable changes
in respect of the Nike are- globalisation, workplace culture change, technology changes and
market trend change (Toves et al, 2016). Apart from this, resistance changes for Nike are-
change in working pattern, organisational culture, fear of job loss, economic product demand.
Figure 3: Force field analysis
(Source: www.odi.org, 2019)
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The technological factors will support Nike to manage its business operations and functions. The
use of new technology like- online purchasing, home delivery and online payment mode will
improve the employees working efficiency. The pressure of work on employees also gets
reduced as human efforts can be reduced by using the technology in the business functions.
Changes in the product line and range will support Nike to enhance customer base and market
share and for this, it is essential for the marketing team to use attractive promotional plans (Yu
and Frempong, 2016).
Use of the new opportunities will support Nike to improve brand position in the global market.
Advance technological factors implementation reduces the work pressure from employees along
with time, which creates fear within the employee's mind because if they failed to adopt the
changes, then their productivity will get suffered. The global expansion of the brand with the
new product range will get failed if employees fail to execute the change as per the requirement
of the business and market.
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Explain different barriers for change and analyze the driving and resisting forces to determine
how they influence leadership decision making in the organization
The decisions of Nike are taken in respect of executing changes within their existing product line
so that innovative product and services can be provided to its customers. Analysis of change and
its implementation is very essential for Nike to sustain in the market and this is based on the
decisions taken by its leaders. Apart from this, still there are various barriers to change that
influence the decisions taken by the leaders of Nike.
Following are the change barriers:
Communication gap: The main barrier for change is the improper and lack of interaction among
the team member of Nike. Communication gap among leaders and its team reduce the interest of
the employees and that creates a negative impact on the execution of the change. The reason
behind the analysed change will not be decided with the other employees then that will create a
barrier to implementing change as per the plan (Claudy et al, 2015).
Low employee’s involvement and commitment: Leaders of Nike do not involve employees in
the decision making related to change, which will enhance the chances of low commitment of
employees towards organisational change. This type of barrier negatively influences the internal
structure and planning of the organisation.
Lack of team planning: Lack of proper planning and role distribution among the employees will
also disturb the whole procedure of change implementation. This type of ineffective team
performance also becomes barriers to change in the context of Nike. Improper role and
responsibility distribution create internal problems and issues and reduce the chances of
achieving a positive outcome from the planned change (De Brabandere, 2016).
Strategies used by leaders to overcome the change barriers from Nike
Leaders and managers need to analyse the strategies through which they can avoid these types of
barriers from their business operations and for this leaders need to conduct meeting for
discussing all the aspects of change with the team. It is essential for Nike leaders and manager to
involve its team members and employees in the procedure of change so that the high
commitment of employees can be achieved to execute the change in their business (Quirke,
2017). Leaders can also take the quality of employee’s feedback regarding changes so that the
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