An Analysis of Leadership and Management at Sports Direct Company

This report provides a detailed analysis of the leadership and management practices employed by Sports Direct, a major sporting goods retailer. The report begins by examining key leadership theories and perspectives, focusing on their application within the company. It then delves into the specific management and leadership styles that have enabled Sports Direct's growth, highlighting the importance of employee engagement and talent acquisition. The report also explores team working principles and how they underpin effective leadership, emphasizing the significance of communication and motivation. Furthermore, it discusses the change processes facilitated by Sports Direct, including expansions and workforce adjustments. The report concludes by addressing the ethical and value-based challenges encountered by the company, such as wage issues and market share concerns, and how Sports Direct has responded to these challenges. The report draws on various academic sources to support its findings, offering a comprehensive overview of Sports Direct's management strategies.

BUSINESS MANAGEMENT AND
LEADERSHIP

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK ..............................................................................................................................................1
1. Key theories, perspectives and their application within Sports Direct...................................1
2. Management and leadership styles that enable Sports Direct to grow ...................................2
3. Team working principles and theory underpin effective leadership and management styles.4
4. Change Process facilitated by Sports Direct...........................................................................4
5. Ethical and value based challenges encountered by Sports Direct.........................................4
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................4

INTRODUCTION
Management refers to managing all activities of business organisation in effective and
efficient manner. Leadership is a important element in which leaders guide their staff members
to accomplish final goals and objectives. Managers play a important role in every organisational
system as they have the duty to make strategies, policies that must be followed by every
individual. This report highlights the case of Sports Direct company which is a retailing group
that deals in sporting goods. It has approx 670 stores located over nation. Assignment throws
light on various key theories and effective management styles adopted by this company that lead
to their success in short span of time.
TASK
1. Key theories, perspectives and their application within Sports Direct
Every business organisation follow some leadership style and theories that is applied into
their system so that final goals can be accomplished. Similarly. Sports Direct also carry out their
management in accordance to key perspective that is set by management level that make them
significantly established in market place. Key theories of Sports Direct company is described
below:
 Initially they have democratic style of leadership in which leaders provide equal
opportunity to their workers working there and encourage them to share their innovative
ideas in decision making process. Company have proper system of taking feedbacks from
individuals so that changes can be made if required.
 They have legitimate recruitment system in which main focus is provided on hiring
prospective and experienced employees that have specific quality of working style. This
is a key area in which company succeed that enable them to gain high market share and
growth (Montgomery, 2011).
 Sports Direct do not provide much focus on adopting modern technology prevailing in
business environment but the quality of workers working there is a primary instrumental
idea behind their achievement of flourishing in media and gain successful image of their
brand.
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 Another chief focused area is adopting all values and ethical process in order to minimize
illegal and unfair attempts that can pose threat in front of the company.
Difference between leadership and management system is as follows:
Management Leadership
In this managers play a vital role in which they
manages all resources of organisational system
and coordinate their efforts towards
accomplishment of final goals and aims.
In this leaders have essential role in which they
coordinate efforts of every individual towards
single direction and path.
It is the duty of managers to create certain
objectives that mention duties and
responsibilities of every individual present in
business organisation.
Leaders draw vision that guide actions of every
employees in single direction.
Managers frame policies to reduce risks and
challenges
Leaders accept risks as they are strong believer
of facing challenges as they are building blocks
of success.
From the above discussion it has been concluded that Sports Direct to work in accordance
to set leadership styles and policies. Leadership and management is two important components
that carry out whole organisational structure in smooth manner. This company have well
structured management system that results in accomplishing final goals (Liker, and Convis,
2011).
2. Management and leadership styles that enable Sports Direct to grow
Management and leadership styles of business organisation play a vital role in
establishing its successful image and goodwill in market place (Morison, and McMullan, 2013).
Both these components focuses on increasing the efficiency and effectiveness of every
individuals that results Sports Direct to grow significantly. Business entity have formulated
certain leadership principles, values, ethics that is directly linked in attainment of vision in set
period of time. Some key features of management and leadership styles that enable Sports Direct
to grow from a single store to its current size in discussed below:
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 Leaders of Sports direct concentrates on hiring skilful and knowledgeable members so
that they can work in accordance to best of their efforts. Basically, they focuses on
constructing talented team that enable company to stand apart from others.
 The success of Sports Direct lies in a business model which is formulated efficiently that
involve every employees to work with respect and dignity and hence they can contribute
optimally.
 Managers of Sports Direct have specific policy of engaging workers into their
organisation that is a key perspective of their success.
 Mr Ashley is running Sports Direct as a “Victorian Workhouse” where main
concentration is rendered on selling commodities and sports goods of high quality in
order to satisfy their needs and wants.
 Leaders work in accordance to set policies, rules of organisation that is a key success for
them. Employees are consider important assets of the company and they know the value
of their contribution (Doh, and Quigley, 2014).
From the above discussed points it has been concluded management system of Sports
Direct is flexible and proper that results in acquiring set targets smoothly. They have flourished
by establishing many stores in market because of conventional leadership style that main aim is
to focus on hiring quality candidates in to their company.
3. Team working principles and theory underpin effective leadership and management styles
Business system have to carry out their operations and working process in accordance to
some set leadership styles that are followed by them that are illustrated below:
 Leaders and managers have to set proper vision and mission that has to be followed by
every individual to accomplish final goals and objectives.
 They mention proper system of delegation process so that there is proper unity of
command and chain followed in organisational system.
 It is very much important to keep workers satisfied so that they can work in accordance to
best of their level and efforts (Connors, 2011).
 There are number of stakeholders present for organisation therefore, their it is necessary
to satisfy their needs and wants. It include customers, employees, debtors, creditors that
are present in outside business environment.
There are certain leadership skills that must be possessed by managers that are described below:
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 Communication skills: According to this skill, leaders and managers must have excellent
communication skills so that they can able to communicate properly with their sub
ordinates by transferring correct information to them. Sports Directs have proper system
of communication hence there are no barriers associated with it.
 Time Management skills: According to this, leaders must possess time management skill
which involve all work tasks must be completed on time so that there is no delay. Proper
system of suggestions are constituted that involve taking feedbacks from workers and
than carrying out work in effective manner (Mirabella, and Young, 2012).
 Motivational Skills: It is the main aim of leaders to motivate their team members so that
they can able to enhance their productivity and performance at significant level. There are
number of motivational methods that are in monetary and non- monetary terms. Both
have some advantages and disadvantages. Thus, managers have to examine these factors
and have to choose best suited system.
Leadership Style followed in Sports Direct company is democratic style in which there is
equal opportunity of every employee in which they can provide their point of views. These are
consider in creation of strategic plans that is having broader perspective and scope. All these
elements are coordinated towards final objectives that has to be completed in set period of time.
4. Change Process facilitated by Sports Direct
Every business organisation have to operate in dynamic environment and thus, they have
to go through various changes in order to keep in pace with it. One of the major change that
Sports Direct faces is the expansion of their company by establishing many stores that is around
600 stores worldwide. This is a big achievement for the company as they have expanded their
business in short period of time. Therefore, changes are needed to acquire in order to keep pace
with the modifications and alterations (Wilton, 2012).
Management of Sport Direct have made accountable changes in rules related to employee
engagement as they have main focus on selecting best suitable people for their business
organisational system. Company have located various brand acquisitions, increasing quality of
products and services and have promoted their brands. Hence, company have to execute change
management system by putting full concentration on developing different departments of the
company.
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They have made changes in workforce criteria by concentrating on placing right person at
right place. This ensure that staffing function must be carried out in appropriate manner
(Bowman, 2011). By employing accurate workers, company automatically started succeeding in
terms of its share, growth, high revenues, fulfilment of customer's needs and many others. Thus,
the major changes that are executed is in terms of expansion of business by increasing their
number of stores. There are number of strategies that have to be modified so that change process
can be carried out effectually.
5. Ethical and value based challenges encountered by Sports Direct
There are number of unfavourable conditions that may arise in conducting business.
Sports Direct also have to face risks that have hinder their growth and market share. These
challenges can be related to values and ethics hence, proper system is executed to face these
uncertainties. Some are discussed below:
 The major challenge acquainted by Sports Direct is that workers are paid less than
minimum wage system hence, employees are not satisfied with it. For this company have
improve their payment system.
 Another critical issue faced by this company is that they began to loose their current
market share because of problem of pesticides in cotton production process. Therefore, it
lost momentous market share and ranks in ethical customer's list.
 They have also indulge themselves in many court cases which have hinder their overall
growth and image in market place.
The above challenges are faced properly by management system in accurate manner that
they have modify their supply chain policy in which employees are not allowed to work for more
than 48 hours. There are several industry laws that have been formulated by government sector
hence, they fulfil all ethical values that are framed in society (Zhang, Cao, and Tjosvold, 2011).
By executing these ethical steps they become successful in facing these challenges.
Another solution include attracting prospective employees that involve recruiting highly
quality workers who can become main asset for the company and on the other hand proper
attention is also rendered to train them. Training and development programs enhances the
working style of employees so that final outcomes can be accomplished. The leadership style is
convention which means every employee's efforts are contributed significantly in the
organisation system. Managers play a essential role in this as there are number of options that are
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available and there are associated advantages and disadvantage. All these factors need to be
properly examined by them and choose best option that will supply positive results (Bernhard,
and O'Driscoll, 2011).
CONCLUSION
From the above prepared report it has been concluded that leadership and management
play a important role in any business organisation. These components helps in attaining set
vision and mission of company. This assignment highlight the case of Sports Direct which is a
well established retail sector supplying sporting goods or products to large number of people.
They have succeeded in establishing their goodwill and market share in short span of time. There
are number of reasons behind it that include effective leadership styles and proper change
management system. Apart from it, there are several challenges that are encountered by this
company.
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REFERENCES
Books and Journals
Montgomery, C. A. ed., 2011. Resource-based and evolutionary theories of the firm: towards a
synthesis. Springer Science & Business Media.
Liker, J. and Convis, G. L., 2011. The Toyota way to lean leadership: Achieving and sustaining
excellence through leadership development. McGraw-Hill Education.
Connors, T. D. ed., 2011. The volunteer management handbook: Leadership strategies for
success (Vol. 235). John Wiley & Sons.
Wilton, N., 2012. The impact of work placements on skills development and career outcomes for
business and management graduates. Studies in Higher Education. 37(5). pp.603-620.
Zhang, X. A., Cao, Q. and Tjosvold, D., 2011. Linking transformational leadership and team
performance: A conflict management approach. Journal of Management Studies. 48(7). pp.1586-
1611.
Bernhard, F. and O'Driscoll, M. P., 2011. Psychological ownership in small family-owned
businesses: Leadership style and nonfamily-employees’ work attitudes and behaviors. Group &
Organization Management. 36(3). pp.345-384.
Bowman, W., 2011. Financial capacity and sustainability of ordinary nonprofits. Nonprofit
management and leadership. 22(1). pp.37-51.
Mirabella, R. and Young, D. R., 2012. The development of education for social entrepreneurship
and nonprofit management: Diverging or converging paths?. Nonprofit Management and
Leadership. 23(1). pp.43-57.
Doh, J. P. and Quigley, N. R., 2014. Responsible leadership and stakeholder management:
Influence pathways and organizational outcomes. The Academy of Management Perspectives.
28(3). pp.255-274.
Morison, S. and McMullan, C., 2013. Preparing for the future: challenges and opportunities for
management and leadership skills. British dental journal. 214(1). p.E2.
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