Operation Management of Nike Essay

- Nike should launch proper controls in order for them to monitor their operational processes.

Despite changes in the market environments, Nike has stuck to its decentralized and networked organization structure. Each business center of the company focuses on their operation like research, marketing, or production. The company has subcontracted its most crucial operation, which is manufacturing itself. Besides this, it had also outsourced several back office and non-executive jobs.

Nike is the leading and yet renowned supplier of athletic apparel and shoes. The company controls close to 33% of the global athletic shoe market (Dogiamis & Vijayashanker,2009).Nike was founded by Bill Power and Phil Knight in 1962 as a Blue Ribbon Support and then was later on renamed to Nike in the year 1968 (Patrow,2003).The company supplies very high quality product in close to 100 countries with major markets being located in the U.S,U,K, Asia Pacific as well as in the Americas. The company has managed to attain its lead and legendary position via the application of innovative and yet attractive product design which is backed by quality production as well as well crafted marketing strategies.

has, it is very clear that the company is focusing on Nike's future business needs, developing the "bench strength" of the company’s ability through intentional pioneer advancement. In the long process of choosing the suitable candidates who are capable to work in the company, Nike is concerned in their team building because of their well-known brand image. In doing so, Nike can look for suitable candidates that are capable of discriminating task arranging, supervisor responsibility for training and tutoring, and organized learning by means of individual- and group based classroom and learning new things from the web. Looking ahead, key regions of center for NIKE, Inc. incorporate helping workers and supervisors see how to fabricate effective vocations through formal and casual preparing and improvement, enhancing administration advancement, and inviting thoughts. The compulsory test for job seekers who are looking up for higher positions in Nike, candidates have to take is to understand how the company works and how well will the candidates cop in working with the company for Nike’s main focus is to enhance the potential of their employee and develop a leadership capability, this is done in organization and ability audits straightforwardly connected to the business vital needs. In Nike, high position leaders and managers are considered responsible for enhancing the execution, potential,

The forces of Nike’s customer-supplier relationship is based on joint efforts of improved quality, mutually beneficial partnerships, reduced costs, and increased market share for both parties. According to Nike building customer-supplier relationship is one of the most important goals because it is the analysis of the value chain which is defined as the collection of all activities involved in designing, marketing, manufacturing, delivering and supporting Nike’s products. Having strong relationship with both parties helps Nike to predict and notice any problem at might rise in the supply chain; as a result Nike will be able to develop better solutions to avoid it (Wankel, 2009). The first tier supplier of Nike is located mainly in Taiwan and South Korea, which work closely with R&D personnel in Oreon making the most expensive footwear. Strategies have shown that Nike implements include the vertical integration strategy. In general, the vertical integration strategy allows a firm to gain control over distributors, suppliers and competitors (Nike report, 2015). Nike has implemented forward integration by having its own retail locations throughout the United States, foreign countries & online stores. Every partner has a hugely significant

Since its creation, Nike has proven itself as a popular brand and it has created niches by selling products such as footwear, apparels and various types of sports equipment. This paper will attempt to trace the product development of Nike shoes from its origins in conception and design to the manufacturing and production process located in contract factories in developing countries to advertising and marketing of Nike as a cultural commodity and finally, the retailing of the footwear around the world.

Currently, Nike stand as a leading figure in producing high quality sports and fitness equipment and apparels. Bearing just a simple start of selling Japanese imported shoes from a station wagon has transformed

Nike executed an upgraded variant of their stock administration programming. The thought of this recently executed stock control programming was to anticipate which items they would offer the most, and along these lines set up the appropriate measure of supply to take care of the demand. To begin with they would deliver an interest measuring and taking into account that estimates, they would set up an assembling arrangement. That is the way most huge enterprises (and some little organizations) settle on their operational business choices. Here is the procedure:-

Nike soon realized even though they have attempted to make changes within their subcontracting companies it has not been enough. Nike realized they have an ongoing obligation to the workers, as well to the different cultures that are involved. Nike implemented a process called The Compliance Generation, which involves increasing their business value by establishing the function, fighting fires, building a global team, and establishing partners. Employee management interaction making the work more systematic, building excellence in management audits, building environment, safety, and health global process, creating transparency, and creating ratings. Nike wants to have a transformational focus on building excellence in factory remediation, developing a sustainable sourcing strategy, building business integration and accountability, increasing contract factory ownership of corporate responsibility, and building industry conditions (Nikebiz, 2010).

Nike has seldom manufactured products own premises, except their air bladders. The shoes are manufactured through outsourcing and alliances with other companies. A successful company like Nike formed its organization on the customer values that have the MOST impact on the consumers mind – Design/R&D, Marketing and Distribution. Even though manufacturing is a vital function to perform, Nike realized that there were other ways to go about this function and thereby save both cost and maintain its focus on the critical customer value areas.

After sluggish focus and growth in the 1980ies, Nike experienced strong growth in the 1990ies and cemented the position as global recognizable brand. The increased international focus created strains on the supply chain, which was consider inadequate to cater efficiently to the organization and the rapid changes consumer demands . As a consequence of the afore mentioned supply chain problem Nike faced inefficient inventory management, problems in flow of goods and poor demand

Nike‘s vertical structure includes CEO Mark Parker and a board of directors chaired by co-founder Phil Knight. Although Nike has functional divisions and divisions based on specific products it is not a matrix organization. In a matrix organization, employees report to a functional and divisional manage. At Nike, employees report to the divisional manager and the president of each division reports directly to the CEO. Nike’s continued product innovation and successful marketing are due to the combination of functional and divisional organization using an operations department to insure communication between divisions. There is division of labor but it is not clearly identified. With a more pronounced division of labor and levels of direct supervision Nike can improve its

The Nike production system can be stratified into three classes; developed partners, volume producers and developing sources (Donaghu & Barff, 1990). Although Nike has developed different levels of supplier relationships with each class the production network is commonly classified as a ‘virtual enterprise’ where independent firms work together based on shared values and a common way of doing business to exploit a business opportunity through joint manufacturing (Pfohl & Buse, 2000).

Nike business model has always been contracting underdeveloped countries, mainly in Asia, to produce its athletic shoes at a much lower cost as compared to its competitors. As it is simple to manufacture an athletic shoe, Nike’s contractors are often able to capitalize on the abundance of unskilled and low-wage workers in their home country to cut down on production costs.

Report on the Case Study Nike This report has been produced to provide an insight into the consumer decision-making process, buyer behaviour factors that consumers of Nike are influenced by. The report also details recommendations based on the findings. 2.0 Summary = =