What is a business currently going through change? What will happen to that business if no further change occurs? What methods do you recommend business managers should use to manage the change and create an atmosphere in which innovation can occur?

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Your assignment is a complex one, and we can certainly get you started in the right direction. Some companies currently going through change are Nike, Driscoll, American Airlines, Sony, Southwire, and J.Crew. Let's talk a little about J.Crew.

J.Crew owns the Madewell brand, and J.Crew's organizational change equally affects Madewell. Aspects of the business important to include are net loss in revenue of $657.8 million, the focus on redesigning women's fashions on the J.Crew brand, international expansion, opening new J.Crew factory outlets (which sell lower price, lower quality J.Crew clothing), and expanding Madewell while continuing its growth (sales up 35%).

The details of the change made by J.Crew to both the J.Crew and Madewell brands salient to the above analysis of important aspects reflect executive reorganization and corporate strategy reorganization.

In Executive reorganization, Tom Mora of Women's Design for J.Crew, whose designs led to revenue loss, has left the company. He is replaced by Somsack Sikhounmuong, who was Head of Design for Madewell and, prior to that, a designer for J.Crew for eleven years. Joyce Lee succeeds Sikhounmuong as Head of Women's Design for Madewell. Lee was a senior designer for Madewell and, prior to that, a designer for J.Crew competitors Michael Kors and Marc Jacobs. Sikhounmuong and Lee both report to Jenna Lyons, who is President and Executive Creative Director for the J.Crew Group.

In business strategy reorganization, CEO Mickey Drexler, who openly accepted accountability for the failures in design and loss of revenue in the J.Crew Group, after addressing the core problem of women's fashion design failings, plans on expanding strong areas while building weak design back up by focusing on J.Crew's traditional appeal. Drexell plans to increase the Madewell fleet of stores by 20; add 21 J.Crew discount factory outlets; and add six new international stores to the 14 existing ones in Toronto, London, Hong Kong, and Paris. E-commerce will remain as is, reaching 120 countries.

One way to manage change is through open communication between Lyons, Sikhounmuong, and Lee so there is a chain of knowledge connecting Madewell design with J.Crew design and Sikhounmuong and Lee can impart the corporate vision enthusiastically, frequently, and clearly to their design teams.

Ways to create an atmosphere for innovation are to have unhampered flow in costs for projects; coordinate design development between Madewell and the new J.Crew factory outlet stores to ensure against unwanted overlap; benchmark the redesign of women's fashion for J.Crew for optimization of customer loyalty.

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