INTRODUCTION TO MANAGEMENT ASSIGNMENT SAMPLE
Introduction
The existence of management challenges may create problematic circumstances for corporate entities while generating obstacles in the way of achieving flexible growth. The focus of this present assessment is kept upon reflecting the evidence of Sports Direct International while emphasising on subsequent issues faced by them due to poor customer service quality. Moreover, poor presentation of the products and clothes as well as billing errors and mistakes are eventually making it difficult for the organisation to maintain proper customer satisfaction and engagement level (Case Study). Along with this, the unavailability of clothes, it also denotes a lack of proper competence from the company perspective to effectively address market demands and issues. In accordance with the case study evidence, Sports Direct is also observed to obtain a comparatively low and poor rating for their customer service with 1.2 only (Case Study). Based on this evidence, the need for maintaining effective customer service standards can be considered from the perspective of Sports Direct. The regional manager of the organisation is also looking forward to improve their store-based presence across the Southern East region as an integral part of maintaining proper consumer satisfaction.
With reference to this understanding, the present assessment would also focus on presenting evident proposals and recommendations for Sports Direct to avoid these issues.
Analysis of the individual problem
Summarisation and interpretation of the data
In consideration of the provided case study, it can be observed that Sports Direct, which falls under the Fraser Group tends to be having issues. As of April 2020, sales of the group increased by almost 7% to slightly less than £4 billion (Fraser Group, 2024). However, Sports Direct alone brings in almost £1.2 billion in sales each year (Fraser Group, 2024). In consideration of the figure below, it can be observed that the sales of Fraser Group declined after the COVID-19 pandemic created several issues for the company to sustain itself within the market. As of 2021, the sales margin declined to £1530.8 million from £1662.6 million in 2020 (Smith, 2024). However, with the proper operating notion of the company, the sales seem to have increased in 2022 and 2023 with a rate of £2088.7 billion and £2369.8 billion respectively (Smith, 2024). Despite proper performance within the domain, Sports Direct is analysed to be facing certain issues in accordance with the viewpoint presented by the case study.
Figure 1: Sales margin of Fraser Group
(Source: Smith, 2024)
One of the key issues faced by the company includes the quality of poor customer service within its stores. As per the provided information, the group’s retail outlets are regionally focused. A Regional Manager is in charge of the South East Region, which mainly covers London. There are several methods used to evaluate each store’s functioning and quality of service. In consideration of the Maslow Hierarchy of Needs theory, the main cause that relates to poor customer service within the domain of Sports Direct includes dissatisfied employees. It is because, the theory states that employees within an organisation are satisfied if the five basic needs are met such as love and belonging, safety needs, psychological needs, needs of esteem and actualisation (Bozyiğit, 2021). Concerning this, low satisfaction of employees leads to poor performance that fails to satisfy the customers in the market as well. Henceforth, Sports Direct have been analysed to be failing to satisfy employees within the domain that impacts the company in terms of having unsatisfied customers through improper customer service.
Figure 2: Maslow’s Hierarchy of Needs Theory
(Source: Bozyiğit, 2021)
Based on input from consumers who fill out a customer service survey and evaluations from mystery shopper research, the case study reveals that the stores receive a benchmark score every month. The most common complaints centre around certain instances such as shoddy customer service, with employees occasionally being abrupt or unpleasant; and disorganised stores with subpar clothing and product displays. In addition to this, the company is also observed to be facing billing errors; and clothing that is not available in a suitable range of sizes, particularly for items that are on special promotions or online orders. However, the case study also analysed the fact that the stores in this area obtain an average quality score of 66%, which is regularly 10% lower than the scores of the other retailers in the group. For the purpose of improving the level of service in the region’s stores, the regional manager needs assistance.
Additionally, Sports Direct’s service rating on Trust Pilot is 1.2, which is considered low (Trustpilot, 2023). In addition to this, for its COVID-19 reaction, Sports Direct only got two stars from customers who rated sites and shops based on the way they explained changes linked to the epidemic, like delivery delays, social distancing, and queue procedures (BBC, 2021). Consumers criticised Sports Direct’s storefronts and in-store service, despite praising the company’s product selection and accessibility. One customer feedback indicated the act that buying things at Sports Direct is an anguish. In respect to this feedback, another customer pointed out that Sports Direct carries a lot of goods at their shop, and they are usually very reasonably priced while another mentioned the fact that the stores of the company are so disorganised (Furze, 2023). Nevertheless, the store’s arrangement is incredibly messy, and their customer service in-store is appalling.
As a result of this, it can be analysed that Sports Direct seems to be having positive responses as well as negative responses within internet sources. However, the negative responses gained by the company overpowered the positive feedback further indicating a 1.1 rating at the Trust Pilot site. In accordance with a customer review of the site, the company is also observed to be having improper staff behaviour and the policy of the company is not suitable for returns or exchanges (Trustpilot, 2023). This not only creates high dissatisfaction among different customers but also prevents the company in terms of gaining a loyal customer base and ensuring a proper position in the market. Henceforth, based on different evidence, Sports Direct is analysed to be surrounded by the issue of improper customer service that is hampering the brand’s reputation in the market as well.
A summary and justification of key proposals
With reference to resolve the customer service issues faced by Sports Direct, a set of recommendations and suggestions can be taken into account, which are provided below-
Inclusion of performance incentive and rewards
Sports Direct management will have to look for providing reward based incentive schemes for their employees and staff members operating within the customer service department and others. The inclusion of the incentive process would play a transverse role to extend the employees motivation and engagement level in the customer service department while creating substantial opportunities for achieving greater consumer engagement. The Herzberg two factor theory can be evaluated for this purpose, which focuses on the inclusion of both hygiene and motivational factors in the workplace to positively influence employee motivation (Rai et al. 2021). In this case, Sports Direct should be attentive to consider rewards in the form of motivational factors in their working environment for raising the operation of quality and standard in customer service operations.
Modification of corporate culture
Sports Direct management should pay attention to further modify their existing corporate culture file including the touch of empathy and emotional intelligence under the lights of a customer centric approach. These attributes would be highly helpful for the organisation to sequentially remove the customer service issues and challenges witnessed by them in the Southern East region.
Figure 3: Handy’s model of culture
(Source: Morais et al. 2021)
In this case, Charles Handy’s model of organisational culture can be highlighted. The theoretical understanding indicates four different categories of workplace culture including power and role culture, person and task culture (Morais et al. 2021). For Sports Direct, the task culture is highly recommended to resolve the mentioned customer service issues. As per this theory, task culture is usually preferred for solving specific problems and issues where no single power source is reflected. The preference of task culture would be highly significant for Sports Direct to resolve the critical issues of poor customer service quality. The features of task culture eventually indicate the formation of a team with individuals having common interests as well as specialisations (Abdala et al. 2021). Similar consequences can be certified for Sports Direct where entire customer service department staff and employees should formulate a team to resolve poor customer service issues with extended motivation and engagement.
Figure 4: Schein cultural model
(Source: Akpa et al. 2021)
The Schein cultural model can also be taken into account for this case. The theoretical emphasis indicates three identifiable levels of culture in the workplace atmosphere including artifacts, values and assumed values (Akpa et al. 2021). In the case of Sports Direct, the assumed values are likely to be preferred as an integral part of properly maintaining supportive corporate culture for addressing the issue of customer service department. The assumed values as per this model indicate the inner aspects of human nature (Assoratgoon and Kantabutra, 2023). Sports Direct will have to empower these assumed values while achieving greater employee engagement through the extension of their motivation. Through this manner, the organisation would be able to create an integrated approach in the customer Service department while strongly emphasising on the mitigation of the issues as highlighted.
Maintenance of chain commands
The management and leadership of Sports Direct will have to look for maintaining a chain of command while integrating the customer service operations with the core business objectives and values. For this purpose, the principles of administrative management theory of Henri Fayol are critically evaluated. The theoretical understanding highlights different principles such as initiative and equity, scalar chain and remuneration, unity of direction and discipline, unity of command, responsibility and authority, proper division of work, centralisation and order and others (Oglu Karimli and Oglu Baghirov, 2020). With reference to this theory, Sports Direct should be attentive to conceptualising a proper unity of command where the preference of hierarchical order would be helpful for them to align the customer service operations with their core operational standards. Moreover, the chain of command would also be covered with strict corporate guidelines and regulations where the inability to comply with the commands would be subject to punishment or termination as per the management decision.
This strategy would equivalently reflect a strong commitment and intention from the perspective of Sports Direct management to improve their customer service standards while opening subsequent opportunities of competitive growth based on enhanced profitability. Improved customer service would also help their brand expansion opportunities across the global markets soon.
Conclusion
From the current study, it can be concluded that Sports Direct is observed to face the negative consequences of poor customer service where rude behaviours were also reported by respective staff members and employees. Nonetheless, Sports Direct alone generates about £1.2 billion in revenue annually. Furthermore, the COVID-19 pandemic caused multiple challenges for Fraser Group to remain viable in the market, which resulted in a fall in sales. The company’s main problem is the subpar customer service provided at its retail locations. The group’s retail locations are targeted towards specific regions, based on the information supplied. The South East Region, which primarily includes London, is overseen by a Regional Manager. In accordance with the theoretical point of view, improper satisfaction of employees within the domain is considered to be the cause of the current issue prevailing within the domain. Om consideration to the current issues faced by the company, certain recommendations have also been proposed. This includes the inclusion of performance incentives and rewards to motivate employees within the domain that further will help the company to enhance performance areas. Apart from that, modifications of corporate culture and maintenance of chain commands have also been recommended to Sports Direct. This will not only help in mitigating the issues but will also help in enhancing proper operating notions.
References
Abdala, E.C., Morais, G.G. and Rebelatto, D.N., (2021). Remuneration Strategies related to Charles Handy’s cultural typology: A case study in a small digital market business in pandemic times. Brazilian Journal of Operations & Production Management, 18(2), pp.1-13.
Akpa, V.O., Asikhia, O.U. and Nneji, N.E., (2021). Organizational culture and organizational performance: A review of literature. International Journal of Advances in Engineering and Management, 3(1), pp.361-372.
Assoratgoon, W. and Kantabutra, S., (2023). Toward a sustainability organizational culture model. Journal of Cleaner Production, 400, p.136666.
BBC, (2021). Sports Direct rated lowest in customer satisfaction survey. [Online]. Available at: https://www.bbc.com/news/business-56940993 [Accessed on 5 May 2024]
Bozyiğit, S., (2021). Evaluation of Maslow’s hierarchy of needs theory within the context of COVID-19 pandemic. Understanding the Consumer Behaviour During Covid Pandemic, pp.51-68.
Fraser Group, (2024). About Us. [Online]. Available at: https://frasers.group/ [Accessed on 5 May 2024]
Furze, C., (2023). Mike Ashley’s Sports Direct scores bottom place for customer service. [Online]. Available at: https://www.chroniclelive.co.uk/news/north-east-news/sports-direct-customer-service-evans-25878726 [Accessed on 5 May 2024]
Morais, G.G., Abdala, E.C. and Rebelatto, D.N., (2021). Remuneration strategies related to charles handy’s cultural typology: A case study in a small digital market business in remote work. Brazilian Journal of Operations and Production Management, 18(2), pp.1-13.
Oglu Karimli, V.M. and Oglu Baghirov, H.S., (2020). Administrative management theory at high educational institutions and its following stages. Administrative Management Theory at High Educational Institutions and Its Following Stages, pp.133-138.
Rai, R., Thekkekara, J.V. and Kanhare, R., (2021). Herzberg’s two factor theory: A study on nurses’s motivation. RGUHS Journal of Allied Health Sciences, 1(1).
Smith, P., (2024). Frasers Group gross profit 2010-2023. [Online]. Available at: https://www.statista.com/statistics/439650/sports-direct-gross-profit/ [Accessed on 5 May 2024]
Trustpilot, (2023). Sports Direct. [Online]. Available at: https://uk.trustpilot.com/review/sports-direct.com.hk [Accessed on 5 May 2024]
