Nike: Case Analysis and Problems

The problem statement

Nike Company Inc. governs the market over three decades. It is one of the most powerful companies managing to conquer the world and to establish a reliable international network. However, the main problem of the company lies in the absence of flexibility toward human resource management, since Nike has been acknowledged as “a difficult place for transplants to thrive” (Anonym 432)

Possible Alternatives

First of all, the company should pay more attention to the implementation of HR programs directed at improvement of cultural environment within the company. Second, as Nike is an international company, it should not build a closed type of organizational structure but enhance the policy inside the company. It means that the company should infuse managers to use specific techniques for mediating and anticipating ethical dilemmas of global management (Trompenaars and Hampden-Turner 15). The exceptional, product- and profit-oriented should be changed into person- and performance-oriented management. Thirdly, it is also necessary to change the policy of sales.

The Analysis of the Proposed Alternatives

  1. Advantages and disadvantages of the introduction of organizational culture. The necessity for changes is crucial for all international companies, as they are forced to adapt to the ongoing changes occurred at the world market. It is recognized that culture changes strategies are pivotal for each organization, as it is connected with the concepts of organizational culture and the way it can be altered from the present terms to future ones. A proper consideration of organizational culture will positively influence both the company’s profitability and its performance (Armstrong 162). It should be admitted that Nike Company lacks flexibility and democracy towards its employees and, therefore, the managers are incapable to conduct outsourcing to infusing the fresh ideas from the outside. As a result, the company can lose its competitiveness and respectability all over the world.
  2. The main strength of this approach lies in bettering the process of decision making and eliminating the ethical-based conflicts between the managers of the company. Judging upon the case, the Company lacks the strategies aimed at improving training and development management. This is especially viewed on the example of Perez’s dismiss from its position of CEO since the company’s members were incapable to adjust to new members (Anonym 432). To mend the fences, Nike Company should take the course of meeting the employees and customers’ needs, since a full dependence on brands is not a reliable ground for a successful business (Woodball and Douglas 116).
  3. Certainly, supply chain management introduced by the company, as well as strong financial discipline, has contributed to the increase of sales of the company. Another advantage Nike has in comparison with other is linear management of international subsidiaries all over the world. By providing a kind of autonomy to Nike’s brands, the company can guaranty the diversity of production. Nevertheless, that cannot entirely satisfy the customers’ needs, since, the company lacks a proper customers’ orientation as well (Anonym 429). Of course, the company has a plethora of lines for various targets, but still it never involved the public opinion surveys. In this respect, sales strategies should be enhanced (Bradley 14).

Solutions and Recommendations

All the strategies implemented by the Company have created favorable conditions for the advancement and development. Still, apart from the profit-oriented strategies the company should implement some alternative strategies to for regulation of communication within the company.

Works Cited

Armstrong, Michael. Strategic human resource management: a guide to action.US: Kogan Page Publishers, 2000.

Bradly, Frank. International marketing strategies. US: Pearson Education, 2005.

Nike Inc. Market-driven Program Development. pp. 425-433.

Trompenaars, Alfons, and Hampden-Turner, Charles. Riding the waves of culture: understanding cultural diversity in global business. US: McGraw Hill, 1998.

Woodball, Jean, and Douglas, Danielle. Winning hearts and minds: ethical issues in human resource management. Ethical issues in contemporary human resource management. US: Palgrave McMillan, 2000.

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