Sports Direct Case Study M&O PDF

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7HURM009W Managers and Organisations Exams 2018-19 Sports Direct Case Study

Contents 2 5 6 7 8 14-17 18 19-21 22-24 25 26 27-30 31-32 33 34-35 36-38 39-40

Sports Direct at a Glance” http://www.sportsdirectplc.com/about-us/at-a-glance.aspx Leadership Corporate Responsibility http://www.sportsdirectplc.com/corporate-responsibility.aspx Find your Perfect Career https://www.sportsdirect.com/jobs/whats-it-like “Your Career begins here” www.sportsdirectplc.com Employee Reviews www.indeed.co.uk Sports Direct 'identifies staff by fingerprint’ www.independent.co.uk, 2017 “Inside Mike Ashley’s Sports Direct” (The Guardian, 10 December 2015, p. 1) “Cheap labour, low-tech work: undercover in Ashley’s ‘gulag’” (The Guardian, 10 December 2015, pp. 8-9) “Latchkey children” (The Guardian, 10 December 2015, p. 9) Press Release regarding National Minimum Wage Charter from www.sportsdirect.com Customer Reviews on http://www.reviewcentre.com “Amazon named UK’s most reputable retailer with Sports Direct coming last” Independent.co.uk, 2018 “ ‘We’re in Trouble, admits Sports Direct’s Ashley” (The Times, 22 March 2016, p.37) “ ‘Give us a Sporting Chance’, Ashley tells critics” (The Times, 22 March 2016, pp.38-9) “New Sports Direct banner at St James’ Park leaves Newcastle fans outraged” Talksport.com, 2018 Mike Ashley? He’s a Natural Winner, says Sports Direct Backer” (The Times, 7 January, 2017, pp. 45 and 47)

Sports Direct is a UK sports apparel retailer which employs staff at its head office, warehouse and retail stores. Please note that although this case study seems long, it is composed of sections from different sources including 20 employee reviews which take up 4 pages with very little reading at all.

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http://www.sportsdirectplc.com/about-us/at-aglance.aspx. (Accessed 2018)

Sports Direct at a glance Founded as a single store in 1982, Sports Direct International plc is today the UK’s largest sporting goods retailer by revenue. The Group operates a diversified portfolio of sports, fitness, fashion and lifestyle [outlet]s in over 20 countries. We have approx. 26,500 staff across five business segments: UK Sports Retail, European Sports Retail, Premium Lifestyle, Rest of World Retail, and Wholesale & Licensing (formerly Brands). Our business strategy is to invest in our people, our business, and our key third party brand partners, in order to elevate our retail proposition across all our channels to attain new levels of excellence.

http://www.sportsdirectplc.com/about-us/businessmodel.aspx

Business Model Our business model is focused on delivering an unrivalled range, availability and quality of products – both third party brand and Group branded products. This includes different customer value propositions across our Sports Retail and Premium Lifestyle [outlet]s. To this end, we are elevating across all channels to enhance the customer journey at every step of the way. The Group's business model is explained in greater detail below. This includes an outline of our [outlets] and retail channels, our elevation strategy including the management of our property portfolio, our people, our third party brand partners and our centralised support functions and Group brands. In UK Sports Retail, we offer a complete range of sporting apparel, footwear and equipment through our predominant [outlet], SPORTSDIRECT.COM. This segment includes our lifestyle [outlet] USC. Our current forward-looking view is that the majority of our offering to customers must include leading third party brands. The elevation of our sports retail proposition is key to ensure we are fully aligned with the future directions and ambitions of these brand partners. The UK Sports Retail segment also includes our fitness division, which currently consists of 31 gyms. In European Sports Retail, we are evolving our customer proposition in line with the elevation strategy, while also seeking to increasingly tailor our proposition to the local markets where we operate. These include the Republic of Ireland and continental Europe.

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In Rest of World Retail, at the beginning of FY18 we acquired 49 stores trading as Bob's Stores and Eastern Mountain Sports. We also have 30 stores trading as SPORTSDIRECT.COM in Malaysia. In Premium Lifestyle, we are developing the Group's premium offering, which primarily consists of the Flannels [outlet], along with Cruise and van Mildert. We aim to offer fashionconscious consumers a luxurious, multi-brand retail destination with high-end and on-trend products. This is a core component of the elevation strategy and includes the provision of a new flagship Flannels store on Oxford Street in London which is anticipated to open in 2019. In Wholesale & Licensing, the Group retains a portfolio of world famous heritage brands, which we offer via our [outlets], and also wholesale and license to partners internationally. Our own brands include Karrimor, Slazenger and Everlast. The Group is also proud to have a number of sporting and entertainment personalities as ambassadors, as well as supporting sporting events and venues.

MULTI-CHANNEL ELEVATION STRATEGY Our elevation strategy continues to work towards improving our offering to customers across all of our channels, including marketing, social media, product, digital and in-store. This aims to enable the Company, along with our third party brand partners, to connect with customers via a consistent voice across multiple platforms, including online, mobile, and on the high street.

A NEW GENERATION OF STORES Our elevated stores typically include exceptional visual merchandising and are led by third party branded areas. This new generation of stores includes regional flagship megastores, which are typically larger format stores in strategic retail locations. These can be situated on the high street in prime retail shopping areas, or in out of town shopping destinations. Flagship megastores typically include an extensive sports-category offering, and may have more than one [outlet]on the same site, including adjacent Premium Lifestyle stores and / or a branded fitness gym. The creation of these retail destinations enhances appeal to customers and generates operating synergies.

OUR PEOPLE It is the Group's policy to treat all our people with dignity and respect. The Sports Direct family consists of approx. 26,500 staff, who work together across all areas of the business. We are proud that Sports Direct International plc is one of the first public companies in the UK to introduce an elected Workers' Representative who attends meetings of the Board (see details below). Remuneration & Rewards Our policy is to foster a reward-based culture that enables our staff to share in the success of the Group. During FY18, our share bonus scheme vested approx. 11.6 million shares worth approx. £45.5 million, which were shared by approx. 2,000 eligible participating employees as the final tranche of a scheme that was launched in 2011. It is Company policy to pay above the statutory National Minimum Wage, including rates that are above the statutory National Living Wage for those over 25 years of

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age in the UK. In addition to this, the Company pays awards and incentives of approx. £20 million annually, from which both permanent and casual staff can benefit.

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WORKERS' REPRESENTATIVE Sports Direct is proud to be one of the first UK public companies to have en elected Workers' Representative that attends meetings of The Board. The Workers’ Representative is Alex Balacki, a Store Manager who originally joined the Company 14 years ago as a Casual Sales Assistant. The Workers' Representative is free to speak on behalf of the Group's workforce at all scheduled meetings of the Board in order to facilitate a healthy and constructive dialogue. Alex also attends regular meetings with senior management, and he is involved in a number of important projects (please see our Annual Report 2018).

OUR THIRD PARTY BRAND PARTNERS We work with our leading third party global brand partners and provide significant prominence for these specialists with our customers across all our platforms. Our third party and Group brands are managed by central brand and marketing teams. This centralised structure significantly benefits the Group by enabling the individual brands to participate in Group buying and sourcing; aggregated supplier relationships and enhanced supply chain disciplines; Group stock monitoring and replenishment; and more inspired and harmonious visual merchandising in-store.

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Leadership David Daly (Remuneration Committee and Nomination Committee) Chairman Mike Ashley Chief Executive Founder 1982 (founder) Mike established the business on leaving school in 1982 and was the sole Previous roles owner until the Group’s listing in March 2007. He was Executive Deputy Chairman prior to being appointed Chief Executive in September 2016. Mike was the founder of the Group and has the necessary skills for Key skills / formulating the vision and strategy of the Group. With over 30 years in strengths the sports retail business with Sports Direct, he is invaluable to the Group. Appointed

Jon Kempster Chief Financial Officer Richard Bottomley OBE (Audit Committee and Nomination Committee) Senior Independent Non-Executive Director Chairman of the Audit Committee David Brayshaw (Audit Committee, Remuneration Committee and Nomination Committee) Non-Executive Director Chairman of the Remuneration Committee Nicola Frampton (Audit Committee and Remuneration Committee) Non-Executive Director 6

http://www.sportsdirectplc.com/corporateresponsibility.aspx

Corporate Responsibility Corporate Responsibility is central to our vision to be a leading sports and lifestyle retailer internationally. Our established Corporate Responsibility framework focuses on five key areas: People, Health and Safety, the Environment, Customers and the Community. Sports Direct has developed Key Performance Indicators (KPIs) to ensure we deliver on our commitments.

People Our ability to attract, retain and develop the best people is crucial to achieving our strategic objectives

Health and Safety We regularly review our procedures to ensure robust safety management

Environment We are committed to reducing impact our business has on the environment, now and in the future .

Customers Customer service is at the forefront of our business. We aim to provide customers with an enjoyable experience both in-store and online and ensure all our products are safe and fit for purpose. Regular external customer experience visits are undertaken in our stores and gyms to identify areas for improvement and also recognise staff providing exceptional customer service. Monitoring customer satisfaction and responding to queries is a continuous process. All written complaints are recorded, including an analysis of the nature of the complaint so that trends can be assessed and appropriate action taken. We are continuously working to improve customer service at all levels within the Group from the retail stores, Head Office and our website.

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https://www.sportsdirect.com/jobs/whats-it-like

Find your perfect career If you're looking for a job within Sports Direct, we have numerous vacancies across our 670 stores. If a role in store is not for you, we have great opportunities within our head office. Working in one of our stores can be a rewarding experience, with the challenge of a fast paced, dynamic environment. A role in store can provide a sense of success and achievement to any employee. YOU influence your direction, YOU create your future!! The same can be said for a role in our head office. With an evolving business like Sports Direct, making a difference is the ethos we want our staff to work towards. With a wide range of different departments there is definitely a role that will suit your aspirations and will push you to succeed. No matter where you start in Sports Direct, with hard work and dedication you can create your path to a successful career within the UK’s Number One Sports Retailer.

Sports Direct annual conference Every year managers and staff from across the business head to St James Park in Newcastle for a company sponsored annual conference. It is a day to reward the hard work that our store managers and Head Office staff put in to make Sports Direct the success that it is. With the day filled with fun activities; like football matches, a zip wire across the football pitch, brand ambassador discussions and brand promotions; plus the opportunity to find out more about the direction Sports Direct will be taking in the upcoming year, this a day to look forward to. Towards the end of the day, there is a dinner and awards ceremony to reward the top achievers by giving out prizes such as trips to Disneyland, European Sporting breaks and tickets to premier football matches. This is followed by a chance to relax and mingle till the early hours of the morning. https://www.sportsdirect.com/jobs/our-people If you're looking for a job in one of our European stores, we have numerous vacancies in countries such as Belgium, France, Slovenia, Portugal, Netherlands and Cyprus. You may not realise it, but the chances are you have been into one of our stores, whether it’s your local SportsDirect store, or maybe you have visited our prestigious Lillywhites store at the foot of Eros in London's Piccadilly Circus, you`ll be surprised at how many stores we operate. We currently have over 600 stores within the Sports Direct International group, including Sports Direct, Field & Trek etc across the UK and Europe. This coupled with an on-going

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expansion programme means we will soon have a new store on your doorstep ensuring Sports Direct or one of our other [outlet]’s remains at the forefront of sports and outdoor retail.

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Explore SportsDirect.com Careers This is a selection from a number of career opportunities shown on the Sports Direct website.

www.Sportsdirect .com

(28/10/2018)

Your career begins here So you have made the decision that retail is the career path for you… Sports Direct is definitely the right company to come to. With the size of our business and number of stores across the UK and Europe we probably have a store right near you. With world class training and support for all staff from day one to fantastic career development for those who put in the hard work, plus our 5 star bonus scheme, lucrative share scheme and generous bonuses, Sports Direct is the place for you…

The application process You will need to fill in a few details online including your contact information and career history, you will also be asked to upload your CV. If selected you will be contacted for an informal conversation followed by an interview with a recruiter, if successful you will be invited for a face to face interview with one of our store managers.

Store Manager Job description As a Store Manager you will be responsible for the running and success of your Store. You will motivate and drive your team through and with your management team to ensure your store is the best it can be. You will be working alongside your team, coaching and developing them to success by being an example and leading from the front. Your first two weeks with us will be with our training team in Shirebrook, here you will be given the tools and knowledge to be a successful Store Manager. For our high performing Store Managers there is great progression opportunities, from promotions to a larger store or even stepping into an area manager role.

About you As a store manager at Sports Direct you will be target driven, a motivational team leader and not afraid to get your hands dirty. You will need to encourage and push your team through you management structure to achieve if not surpass company expectations. Experience in a fast paced, high volume environment will be advantageous.

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Working as a Store Manager As Store Manager you will be responsible for the efficient and cost effective running of your store, through the management and motivation of your management team and store team. What is vital is the drive to push and exceed company targets and expectations.

Dhiren Patel – Store Manager I joined Sports Direct in 2008 as a store manager in White City, Westfield. From the minute I joined, it felt so right for me, as I love the approach to business here and Sports Direct values my contribution. The opportunities to progress in the company are excellent and after 6 months here I was given the chance to demonstrate my ability as manager of the Oxford Street branch. The attitude to employee care and development at Sports Direct is second to none. In 2010 I moved on from Oxford Street store to set up a new store in Camden and my performance helped me earn a promotion to Area Manager role. Throughout my time in the business the awards from tickets to football matches [not just standard tickets – corporate hospitality tickets] to once in a life time trip to Switzerland, Verbier have been amazing. These experiences are the kind of thing you see celebrities doing on TV and magazines. In 2014 I earned the opportunity to run the new flagship store in Oxford Street. This Mega Store was different from anything in the business - a 55,000 sq.ft building – and a challenge that I had always wanted to experience and succeed in managing. The awards, prizes and bonuses which I have received and still receiving are beyond anything I’ve seen in the retail industry! There isn’t another retailer out there who I could be as passionate about working for as I am about Sports Direct. Life changing opportunities are available to anyone who can learn, perform and contribute are amazing.

Full Time Sales Assistant Job description Love retail, do you want to gain more experience and develop your careers in a fast paced environment and still have guaranteed hours, this position is for you. This is your stepping stone to a supervisor role in Sports Direct. There is a great induction done in store from day one, you have access to a number of our eLearning modules that can aid your support. A FTSA is able to step into a more senior role, the natural progression is into either a Shoe Supervisor or a Floor Supervisor depending on your strengths.

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About you You will have solid retail experience working in a fast paced environment. Strong attention to detail is important and good merchandising and customer service skills is key. You would need to be flexible to the needs of the business and the store opening times.

Michael Smithyman – Full Time Sales Assistant I find that selling 5 star products is extremely motivating and challenging, especially when other colleagues are competing against you in store and from other stores. Being praised by management, and making money whilst doing this is an added bonus. I think my confidence on the shop floor plays a big part in selling 5 star products, especially the Dunlop Gel insoles, approaching customers looking at table stock rather than them coming to you I think increases your chances of selling especially if the table stock is 5 star itself like Karrimor or Dunlop etc. So if I’m on the shop floor and a customer is looking at some [trainers] for example, they take a box, sit down on a bench and open it only to discover they are tagged together, I’m aware of this so then I‘ll swoop in and will say" hello there, would you like me to separate them for you so you can try them on properly? 9 out of ten times they will say please, I’ll take the shoes to the till, de-tag them, then quickly go into the stockroom on my way back, take out the original left insole out and replace it with a sample gel insole already cut to that size and keeping the original in the box, id hand the customer the right to try first, I’d ask "how does that feel, they would reply positively most the time! Then I would ...