Understanding and Leading Change Report: Strategies for Adidas & Nike

This report delves into the critical aspects of leading change within organizations, using Adidas and Nike as illustrative examples. It begins by analyzing the impact of change on organizational strategy and operations, emphasizing the need for companies to adapt to both internal and external drivers such as market competition, technological advancements, and economic factors. The report then explores how these drivers influence leadership, team dynamics, and individual behavior, highlighting the importance of effective communication and financial management in navigating change. Furthermore, it examines various strategies for minimizing the negative impacts of change, including the application of continuous improvement models like the PDCA cycle. The report also addresses barriers to change and their influence on leadership decision-making, and concludes by evaluating different leadership approaches in the context of organizational change. The analysis underscores the importance of proactive change management to achieve competitive advantage, innovation, and sustained market success.

Understanding and
Leading Change

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Impact of change on organisational strategy and operations...........................................1
P2. Impact of internal and external drivers of change on leadership, team and individual
behaviour................................................................................................................................3
P3: Measures regarding minimising the negative impact of change......................................5
TASK 2............................................................................................................................................6
P4: Barriers of change and their influence on leadership decision making...........................6
TASK 3............................................................................................................................................8
P5: Contributes of different leadership approaches regarding organisational change...........8
CONCLUSION and RECOMMENDATION..................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Change is an essential element which needs to be undertaken by the management of
company in order to achieve growth and success in competitive market world. It is essentially
required for company to adopt changes in their business structure so as to achieve flexibility
which help them in dealing with complex environment. The business activities can be affected
and influenced by internal and external factors which require changes in order to cope up with
them in an effective and efficient manner. Adidas and Nike are such to multinational companies
which are engaged in similar sector of providing goods and services across worldwide. The
project report covers the impact of changes in strategies in order to deal with external and
internal factors. Different barriers that restrict company to adopt changes are also discussed in
this report.
TASK 1
P1. Impact of change on organisational strategy and operations
Change: It is considered as an essential and important factor which needs to be
undertaken by every company in the overall business structure so that they can compete with
their rivals in an effective and efficient manner. The management of company should be required
to focus on bringing changes related with existing technologies, organisational culture, financial
management, etc. Along with this, external drivers of change includes political, economic, social,
technological, etc. Adidas and Nike; both companies are engaged in producing and supplying
shoes, clothing products, etc. in all over the country. Thus, making changes in the design and
quality of their products will attract a large number of customers and attain a strong brand image
and reputation in market.
Adoption of changes in product and business structure on continuous basis will help
company in achieving competitive advantage, innovation, large market share, enhance
profitability, etc. But before implementing changes, it is the responsibility of manager and leader
to identify and analyse the factors which influence business operations either in negative or
positive manner. The factors whether internal or external which restrict employees as well as
company to achieve growth and success need to properly evaluated and accordingly, implement
corrective actions and strategies in order to deal with them in an effective and efficient manner.
Changes can be made by an organisation with a motive of achieving:
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More market share: Adidas and Nike; both are multinational organisations which cover
almost all countries to supply their products and services. Thus, to attract a large number of
customers, company is required to adopt changes in the features of products which maximises
the level of satisfaction of customers. This will directly improve the sales figure of both
companies and earn huge revenue.
Competitive advantage: Changes must be done in strategies and policies in order to deal
with complex environment in an effective and efficient manner. Thus, managers need to focus on
changes happened in environment and accordingly, modify their overall business structure in
order to bring positive outcomes in the near future.
Innovation: Adopting changes in existing technologies or implementing new advanced
technology will help in improving the efficiency in results through which company can be able
to reduce wastage during production process and sell its products to the customers at an
affordable price.
Adidas
It is a multinational company which deals in providing standard quality shoes, clothing
products and accessories across world. The company was first launched in Germany in 1924 and
at present times, it becomes one of the largest sportswear manufacturer in Europe and second
largest in the world. Approx €19.29 billion has been recorded as revenue of company in 2016.
Nike
It is also one of the largest multinational companies which also deals in producing and
supplying footwear, apparel, equipment, accessories, etc. across world. There are more than
44000 employees who contribute their efforts in achieving the desired goals and objectives of
company. It has been recorded approx. $29.6 as revenue in 2017.
Adidas and Nike; both companies have their own style and way of representing
themselves in front of customers. In order to compete with each other and achieve competitive
advantage in market, company is required to adopt changes in their strategies and policies in
order to make their business operations more successful. Changes in strategies and policies are
made in the following ways:
Strategies Adidas Nike
Marketing strategies It is one of the largest
companies in market which
It is one of the tough
competitors of Adidas
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attain a strong brand position.
It receives a tough competition
from Nike and thus, it must be
required for them to adopt
effective marketing policies
for e.g. hiring any celebrity to
promote their products in
market which grabs the
attention of lots of people.
regarding quality and design of
their product. Thus, the
manager is required to first
identify the need and
behaviour of customers and
accordingly, implement
changes in their products and
communicate them through
using marketing tools.
Pricing strategies Adidas provides shoes and
clothing products which can be
afforded by higher income
group of people. Thus fails to
attract moderate income group
of people. Therefore, in order
to attain a large market share,
company should also focus on
attracting moderate income
level group through adopting
changes in pricing policies.
It also charges high prices on
their products from the
customers which restrict
medium income level group of
people. Thus, pricing policies
need to be adopted in which
they can attract a large number
of customers.
P2. Impact of internal and external drivers of change on leadership, team and individual
behaviour
There are several factors which affect and influence the market position of company
which includes external and internal. External factors include political, economic, environmental,
etc. whereas internal factors involve existing technologies, behaviour of employees, etc.
Therefore, the management of company should be required to identify their impact on business
performance and accordingly, decide to implement needed changes in the business structure.
Adidas and Nike are two big organisations which provided their quality goods and services to a
large number of people. Thus, negative impact of such factors on business performance will
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affect the brand image of company in market and may reduce their profitability as well. Thus it
must required to improved changes so as to maintain their stable position in market. Company is
needed to identify their strengths and weaknesses through conducting SWOT analysis so that
they can be able to take corrective steps in order to improve their weaknesses. Internal and
external drivers are needed to be undertaken by management of both Adidas and Nike for the
betterment of company in near future. Such internal and external drivers of changes include:
Internal drivers of change:
Organisation culture: There are number of employees employed in Adidas and Nike
which come from different countries and different culture. This will may bring challenges that
nay faced by company and need to eliminate cultural differences through adopting an effective
strategies and policies. The problems may be related with conflicts, lack of support, negative
support, etc. which negatively affect the business operations. Thus, the management is required
to remove communication gap through establishing systematic communication channel so that
they can easily interact with each other.
Financial management: Sufficiency of funds enable the firm to implement changes in
their business operations and thus, it is essentially required for company to have adequate
amount of funds which help them in operating business activities without facing any difficulties.
For this, company is required to prepare financial statements which shows the financial position
of company.
External drivers of change
Economy: This profitability of both companies are very much depend on economy of the
country. The situation of inflation and deflation in particular nations may affect either in a
negative or positive manner. For example in the situation of inflation, the purchasing power of
customers increases due to which the company can changes their prices of their products as well
which help them in generating huge revenues.
Political influence: Political stability of country may also affect the business operations
of Adidas and Nike. Change in government policies, political stability, tax policy, ideology of
parties etc. restrict company to expand their business in different countries and may also bring
difficulties in running business more successfully.
New competitors: There is a huge competition in market which brings difficulties for
company to maintain their stable position in the market. Thus, in order to compete with them,
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company is required to adopt changes in their technologies, bring new ideas and adopt pricing
policies which help them in capturing a large market share along with influencing buying
behaviour of customers to purchase their products. New companies enter into market with new
technology and ideas due to which the existing companies may find difficulties to survive in
market. Thus it must require for company to bring changes in their existing strategies and plans
in order to compete their rivals in an effective and efficient manner.
Technology: Using outdated technology incurs lots of wastage in production process due
to which they can face losses and achieving high prices from their customers. Therefore, in order
to bring efficiency in work, the managers should be required to adopt updated and advanced
technology with the help of which they can utilise available resources in an optimum manner.
P3: Measures regarding minimising the negative impact of change
Changes can be done in an organisational structure which brings either negative or
positive impact on the business operations. Thus, negative impact after such changes need to be
controlled by manager through implementing corrective measures in form of adopting different
theories such as system theory, PDCA cycle and Bohner and Arnold change impact analysis
theory etc. Such theories help company in identifying the changes in the earlier stages so that
they can able to prepare plans and policies which guide employees to perform business activities
with the help of using their skills, new ideas and leadership qualities. Therefore Adidas and Nike
are also required to adopt such theories which help them in maintaining their strong brand
position and healthy relationship with loyal customers (Harris, 2012).
Continuous improvement model: It is an effective model which help company in
identifying the required changes and accordingly implement suitable techniques and methods in
order to deal with internal and external methods. It will help company in achieving productivity
and profitability. Through implementation of this model, the workload of management may
reduce due to which they can able to allocate time on important matters. This model comprises
PDCA cycle which help in achieving growth and success of an organisation for longer duration.
PDCA cycle: This cycle includes various functions which has large importance for both
Adidas and Nike. Such functions are as follows:
Plan: In this first step, the manager has to decide what changes need to be made and their
impact on business operations.
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Do: In the second step, the manager has to implement planned changes in business
operations with a motive of getting positive outcomes (Ellenbogen, Berger and Batjer, 2010).
Check: In the next step, the managers need to review and check the effectiveness of
implementation of changes.
Act: In the last step, the managers has to decide implementation of such changes in
operation of business so as to identify whether it made positive impact on their sales and
profitability. Otherwise, needs to focus on applying other approaches.
System theory: This theory should be adopted by Adidas and and Nike in order to
perform business functions in systematic way. This theory help in improving the performance
level of employees in working environment. Through applying such theory, the manager can
able to motivate its employees which help them in dealing with complex situation in an effective
manner. It will improve communication and coordination among employees of various
departments. This theory helps in reducing the negative impact of changes.
Bohner and Arnold impact analysis theory: This theory has main motive of finding out
the outcome received in near future after adopting changes so that they can able to eliminate all
negative impacts. This helps and direct managers to make an effective contingency plans and
standard so that they can cope up with negative outcomes in positive manner. It helps in
identifying the risk arises due to such changes and what are their impacts on resources, planning,
etc. It can be divided into three parts which consists of Trace, Dependency and experimental
(Hall, 2010).
TASK 2
P4: Barriers of change and their influence on leadership decision making
While implementing changes in an organisational structure, there are several types of
barriers which restricts company to implement such changes in more successful manner through
which the mangers should required to make an effective decision in order to eliminate such
barriers. Such barriers can be present within and outside of the organisation. Thus, Adidas and
Nike both companies should required to use Force Field Analysis. This analysis helps in
identifying the factors which are in favour and against the acceptance of change.
Force Field analysis:
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It is considered as an effective methods which helps in determining the challenges faced
by company during the process of implementation of changes. This will help in determining the
factors which brings benefits or negative result to company.
Step 1: Plan for change
In this step, the managers of company need to set the objective or aims behind
implementing changes in the business operations. The main objective of bout companies is to
attain large market share and enhance their profitability (Mayfield, 2014).
Step 2: Factors of change
There are mainly two factors such as internal and external factors which drives an
organisation to adopt changes in order to prevent the negative impact occurs from such factors.
Internal factors includes outdated technology, demotivated behaviour etc. External factors
includes demographic trends, uncertain environment etc.
Step 3: Factors which are against of change
The factors which brings negative impact on the business operation are required to
determined. Internal factors such as fear unknown, attitudes and attributes etc. In external
includes about government legislation etc.
Step 4: Providence of scores
In this step, the manager need to provide score of changes on the basis of positive
outcome received in near future so that they can give more emphasis on them and making an
effective strategies to implement successfully (Saha and et. al., 2013).
Step 5: Analyse and application:
In this step, the manager ned to find out the risk factor which are occurred due to such
factors and accordingly implement corrective steps to overcome such risk in order to achieve
desired goals and objectives.
Different barriers of change and their influence on decision making
There are different barriers which restrict company in adopting changes in such an
effective manner that will help in getting profitable outcome in near future. Thus, the manages
are held liable to identify such barriers and adopt approaches which help them in resolving all
issues regarding implementation of barriers. Such barriers are arises due to:
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Government legislation: The rules and legislation implemented by government will
influences the decision making process of an organisation. It may even restricts the company to
adopt changes though which they cannot implement changes whatever they required.
Employee's: As if the employees are not comfortable or due to lack of knowledge they
are not able to work with new technology which may brings difficulties to company to adopt
such changes. Providing suitable training and learning programs need to be conducted so that
they can utilise existing resources in an optimum manner.
Environment: As the company operated business activities in business environment
which is complex and contingent in nature due to which the may find difficulties to adopt
changes. The environment changes rapidly which creates problems for manager to implement
changes according to the environment (Tang, Lu and Hallinger, 2014).
TASK 3
P5: Contributes of different leadership approaches regarding organisational change
There are different types of leadership approaches which contributes more in the
eliminating negative impact arise due to adoption of changes in an organisational structure.
Through such approaches, the manager and leader can able to motivate and support the
employees of Adidas and Nike in perform business activities in changing environment in more
effective and efficient manner. Such leadership theories are described as below:
Situational leadership: This theory directs the leaders to adopt changes according to the
changing environment with a motive of getting positive outcome in near future. It will help
company in dealing with complex environment so that their business operations are not much
affected and influenced (Wilkinson and et. al., 2013).
Transactional leadership: This leadership theory define the roles and responsibilities of
employees which need to be performed in structured environment with a motive of
accomplishing allotted task in an effective and efficient manner. Such theory has been adopted
with a motive of improving the capabilities of employees so that they can easily adjust and work
on changing technology without facing any difficulties. The employees who perform their best
can be rewarded by the leader which directly motivates them and bring self-confidence among
them so that they can contribute maximum in achieving desired goals and objectives.
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Transformational leadership: With the help of theory, the leader should held responsible
to provide proper guidance and direction to their employees regarding resolving issues that may
occurred due to implementing changes in business operations. This will provide an opportunity
to employees to bring new ideas and methods of operating business activities which generates
motivation and improving performance level of employees at various operational levels
( Different type of leadership styles, 2017).
CONCLUSION and RECOMMENDATION
It has been concluded from the above project report that changes made in organisational
structure is essentially required for every business in order to achieve competitive advantage and
strong position in market. The managers and leaders both plays an important and crucial role in
identifying the changes which need to required to adopt and accordingly guide and motivate
employees to perform better through using changed technology in changing environment.
Leadership approaches and various theories need to be applied by management of Adidas and
Nike in order to make good impact on the overall performance of company.
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REFERENCES
Books and Journals
Online
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