Strategic Fit
Executive Summary
Founded in the early 1960’s, Nike formerly known as Blue Ribbon Sport grew into one of the world’s most recognised brand. A leader in the field of sport clothing and footwear, Nike has always been one that encouraged innovation, creativity and growth. Outsourcing of its manufacturing processes, created an opportunity for Nike to realign itself and focus on its core competencies, doing what they do best research, development and advertise.
By mid 1990’s the company began fighting attacks on its manufacturing practices in Asia, human rights and employee’s exploitation. The media sensationalised its overseas labor practices and their commitments to being socially responsible were questioned. In the wake of such challenges Nike has employed several strategies to managing the negative publicity and as such policies were developed to monitoring and ensure exploitation was not occurring on Nike watch.
For Nike, to ensure survival, a constant review of its external and internal environment must be done as this will ensure that measures are taken to safeguard markets, profitability and leadership, Nike cannot be caught sleeping. Nike’s value chain gave management the opportunity to understand internally competencies and how cost can be managed. Porter’s five force analysis (1985) gave an external view of the market and the reaction of the environment they operated within. Strategies can affected by the culture, environment and practices that has been proven, however strategy may differ as the company is faced with the challenges of the market and changes in the social context of its existence.
Nike’s management team must carefully analysis its environment in terms of developing a strategy that would allow the company to grow, evolve and continue to maintain leadership in its field.
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Executive Summary
Founded in the early 1960’s, Nike formerly known as Blue Ribbon Sport grew into one of the world’s most recognised brand. A leader in the field of sport clothing and footwear, Nike has always been one that encouraged innovation, creativity and growth. Outsourcing of its manufacturing processes, created an opportunity for Nike to realign itself and focus on its core competencies, doing what they do best research, development and advertise.
By mid 1990’s the company began fighting attacks on its manufacturing practices in Asia, human rights and employee’s exploitation. The media sensationalised its overseas labor practices and their commitments to being socially responsible were questioned. In the wake of such challenges Nike has employed several strategies to managing the negative publicity and as such policies were developed to monitoring and ensure exploitation was not occurring on Nike watch.
For Nike, to ensure survival, a constant review of its external and internal environment must be done as this will ensure that measures are taken to safeguard markets, profitability and leadership, Nike cannot be caught sleeping. Nike’s value chain gave management the opportunity to understand internally competencies and how cost can be managed. Porter’s five force analysis (1985) gave an external view of the market and the reaction of the environment they operated within. Strategies can affected by the culture, environment and practices that has been proven, however strategy may differ as the company is faced with the challenges of the market and changes in the social context of its existence.
Nike’s management team must carefully analysis its environment in terms of developing a strategy that would allow the company to grow, evolve and continue to maintain leadership in its field.
Table of Contents
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Executive Summary
References: Pages: 8, 23, 283, 288,289, 293 De Wit Bob and Mayer Ron (2004) Strategy Process, Content, Context an international perspective (3rd ed.) Thompson Learning. Pages: 934, 933, 934, 935, 936, 938 Porter, Michael E., Competitive Advantage: creating and sustaining superior performance: with a new introduction (1985), p Page: 33 University of Sutherland (2004) Strategic Management Pages: 9, 10, 21, 22, 23, 26, 27, 33, 37 Whittington, Richard (2001) Theories of Strategy What is strategy and does it matter Hill, C. (2009) ‘International Business: Competing In the Global Marketplace’ Available at: http://hubpages.com/hub/Nike-Global-Business-and-Challenges Viewed: 14th June, 2011 NIKE- CHANNEL CONFLICT (February 2000) Case Number EC-9B Phil Knight (1997): The Force Behind Nike Available at:< www.stanfordalumni.org/news/magazine/1997/janfeb/.../knight.htm > Soloman, Jolie. “When Nike Goes Cold.” Newsweek. March 30, 1998. Available at :< http://www.sports-insight.co.uk/index.php> . Viewed on July 01, 2011 1990’s- Criticism of Nike global labour practices began to gather steam. 1990’s- Negative articles firsts began appearing 1993- July 02, CBS news segments open with images of Michael Jordan and Arlene Agassi with million dollars promotion contracts with Nike. 1994- Nike hired Ernst & Young, the accounting firm to independently monitor workers abuse allegations 1998- January, Nike formed a Corporate Responsibility Division under the leadership of former Microsoft executive Maria S Eitel. 1998- May, Knight announced several new initiatives.