Executive Summary
The article aims to analyze Nike, and it was the market leader in the footwear and apparel industry. The stakeholders of the company include the employee, management, athletes, and shareholders. The employees, especially women, are discriminated through sexual harassment, executive positions, and ignorance of HR to handle their complaints. Management is interested in the financial performance of the firm and to meeting sales revenue forecast. Athletes are primary consumers of Nike’s product, and they rely on the firm’s product. Shareholders are interested in the profitability of the firm. The main problem facing the firm is discrimination, HR issues, and business growth. Female employees are discriminated against through sexual harassment, fewer executive positions, and not participating in the meetings. The discrimination problem can be solved by embracing diversity and inclusivity principles or changing the organizational culture. The HR department has several concerns resulting mainly from neglecting complaints raised by the employees. The department does not respond adequately to the cases reported by female employees on sexual harassment from their male bosses and in the promotion. The issues in the department can be solved through training HR staff or restructuring the department by appointing a new management team. The firm sale revenue has dropped in the last two years, and as a result, there was a review of the sales revenue forecast. The compound annual growth rate (CAGR) has indicated Nike’s underperforming compared with the competitors and the industrial average. To improve performance and increase sales growth, Nike has three alternatives: advertising, investment, and expansion. The paper has suggested several recommendations that will help the company solve problems and achieve growth; these recommendations are for discrimination, women’s footwear, HR issues, growth strategy, and competitors. The proposals will be implemented according to the implementation plan indicating the time frame, responsible person, and action course. The estimated duration for various tasks of the implementation plan has been suggested. Some tasks will take a shorter period, while other jobs will take a more extended period. For example, the growth strategy will take a maximum of seven months, while discrimination will take two months on average. The implementation plan will commence on 1st November 2020 and end on 22nd October 2022; information has been presented with the Gantt chart.
Introduction and Stakeholders Stake
The case analyses issues in Nike and the leadership of Parker as the Chief Executive Officer. The company has it is headquarters in Beaverton, Oregon. The firm’s problems include gender discrimination of females, failure of the HR to handle the employee’s complaints, and biased review effectively by Glassdoor. However, some reports have indicated that the company has performed well in various aspects, such as embracing diversity and inclusivity and adopting the Equality Acts fully. The management has generally failed to respond to the issues of the employees. The firm is the industry of footwear and apparel, and Adidas is its main competitor. In 2015, the firm had impressive financial performance, and they projected the firm would achieve a revenue of $50 billion in 2020. However, it 2016 and 2017, the firm did not perform well and reviewed the projection of attaining $50 billion in 2022. The decline in performance can be attributed to adverse reports concerning sexual harassment of employees.
The stakeholders of the company include the employees, management, athletes, and shareholders. The employees, mostly females, are mainly affected. The women had complained severally about sexual harassment at the workplace from their male counterparts. The management has a stake in ensuring that the company performs well and its increase in profitability and growth (Signori, 2017). Athletes mainly purchase the company products; the bankruptcy of the company can affect them adversely. The shareholders will be interested in receiving dividends if the firm is profitable.
Problem Statement
Nike faces several challenges. First, the human resource (HR) department has failed to address the issues raised by employees. For instance, the employees are told to solve their problems with their respective supervisors. Besides, the firm has a high labor turnover. In the recent past, most of the employees had left the company, including the senior executives. The management should ensure that the HR department effectively handles the employee’s issues, which reduces labor turnover. Secondly, the females have complained about sexual harassment from their male counterparts, and management has neglected the issue. The management should have a policy of preventing any discrimination at the workplace. Thirdly, the sales revenue of the company declined in the last two years. The firm should increase marketing to improve sales.
Problem Analysis
The problem will be analyzed using the SWOT analysis and Ishikawa (fishbone diagram). A SWOT analysis determines the internal and external factors that offer a firm a competitive advantage (Troshkin & Kovtunenko, 2019). The Fishbone diagram is used as the root cause of the problem, leading to the primary concern.
SWOT Analysis
Strengths | Weaknesses |
· The firm is the market leader in the footwear and apparel industry globally. · Strong brand name. Nike’s products are well-known globally.
| · The firm has neglected women’s products, and it has a market share of 20% in that line of footwear. · Discrimination practice at the workplace, women are sexually harassed. · The human resource department fails to address the issues from the workers. · The marketing department has low advertising policies. |
Opportunities | Threats |
· The firm has the opportunity to maximize the production of women products. · The firm can improve advertising and which results in increased sales revenue.
| · The firm gets intense competition from Adidas. Besides, other small competitors like Under Armour and Lululemon Athletica provides competition to the firm.
|
Ishikawa Fishbone Diagram
The tool is used to identify activities that lead to the main problem (Cordell & Thompson, 2019). In this case, the problem has been identified as arising from various activities of the firm. The firm’s
The main activities leading to low sales are HR, management, projections, marketing, competition, and the environment. The activities are further broken down. For example, in HR the sub-activities are supervisors and training. The fishbone diagram below summarizes activities that lead to low performance.
Identification and Evaluation of Alternatives
The firm has a problem with discrimination. Male bosses sexually harass the women, and their complaints were ignored by management. For instance, a supervisor addressed abused a woman as a “stupid bitch” while throwing the car keys. Another supervisor wrote an email to a woman and commented on her breast, and there many other occasions
the women were sexually abused by their supervisors. Unfortunately, the management claimed sexual abuses lacked legal bases. Women were also discriminated against in the executive positions; they were few females in managerial positions; women were 22% and male 78% in the executive positions. Those women who had succeeded in being promoted to executive positions were required to keep silent during the meeting; this is also a form of discrimination. Lack of female of the executive had resulted in a decline in sales of females products. The other form of discrimination is for hiring (www.case48.com).
Nike report on sustainability in 2016 indicated the workforce had 52% non-while, which comprised 21% of African-American and 18% Hispanic or Latino. In 2017, 77% in executive position were whites and the rest were non-whites. In 2018, executive position had 83% white and 17% non-whites. The company claimed it had incorporated diversity in its workforce composition. However, the composition of executive positions for whites and non-whites indicates discrimination in hiring the workforce.
Nike’s management to solve discrimination problems has two options; embracing the principles of diversity and inclusivity or changing the organizational culture. The two options will be evaluated in the following paragraphs.
Diversity and Inclusivity
The management should include diversity and inclusivity culture can be used to minimize discrimination in the organization. Diversity ensures employees are given equal opportunities and rights in the workplace. The employees will not be discriminated in terms of race, gender, sexual orientation, nationality, ethnic or any form of discrimination (Smart & Conrad, 2017). The female will not be discriminated against due to their gender, and all people will have an equal chance of being hired.
Advantages of Diversity
Diversity and inclusivity has many benefits:-
- Improved productivity: The female, once they are included in the executive position, will impact the production of products line for women.
- The sales revenue for women’s footwear and apparel accounts for only 20% of the total revenue.
- Reduce employee turnover: The employees are likely to provide services to the company for a more extended period if there are diversity and inclusivity. The firm saves costs related to hiring to the training of new employees.
- Better Decision Making: The management will make better decisions if there is diversity in the workplace. For example, if more women are included in the executive positions, the company will produce better women’s products based on females’ information.
- Better company reputation: Diversity improves the reputation of the business. Several review reports from external agencies indicated that the firm is poorly performing on diversity and led to a bad reputation.
- Increased profitability: Firm profitability will increase if it embraced diversity in the workplace. The employees are likely to be innovative and creative, which affects improving the firm’s sales revenue and profitability.
Disadvantages of Diversity and Inclusivity
- Communication problems: The workforce comprises people speaking different languages. For example, the Nike workforce has Hispanic or Latinos, African-American, and whites. Assuming they include a team or group, they will not agree on some issues unless there is a common language understood by all the individuals.
- Slow decision-making: The team will have differing opinions, and this will delay the decision-making process. Accommodating the people’s multiple views and reaching a consensus in will be a challenge for the team.
- Hostility: Diversity may create a hostile environment. For example, male and female workers may disagree on some issues, resulting in tension and personal hostility among the team members.
- A single person is entrusted in the leadership position for diversity and inclusivity. For example, the company had a vice president to head the department. It may pose a challenge for an individual to manage people that have different cultural diversity.
- Increased costs: The management may incur extra costs to ensure that they do a diverse workforce. There is a possibility under-qualified employees may be hired to implement the diversity principle. For example, people with disabilities may be employed for the works they have low qualifications or experience, which may reduce their productivity.
Change of the Organizational Culture
The organizational culture plays a vital role in influencing the behavior of people in the group. Culture can be regarded as shared values, norms, beliefs, stories, and experiences (Reisyan, 2016). The organization may have a culture that may fail to promote the organization’s vision. Nike culture has discriminatory practices, and it should be changed. There are advantages and disadvantages of changing the organizational culture.
Pros of Changing the Organization Culture
- Working Environment: The change of culture will create a conducive work environment. An environment that women will not be sexually harassed because of gender. The women are treated fairly and given equal opportunity. In the male-dominated society, women are discriminated against, and create a bad working environment.
- Conflict Resolution: There are constant conflicts in the workplace if other employees are discriminated against gender. The society should change such a culture to minimize or resolve disputes that may arise out of discriminatory practices.
- The change in culture increases the productivity and performance of the firm. The inclusion of women in the executive positions will impact an individual’s productivity and the overall organization (Madhani, 2014). For example, if women are allowed to participate in the production, they will influence the design of footwear and apparel for women leading to higher performance.
- Improvement in coordination and communication: The communication in the firm should be horizontally, vertically, and laterally. The current communication is only vertically. The junior employees only receive directions from the top management. If there is free sharing of communication, coordination, and productivity of the firm will improve.
Cons of Changing the Organizational Culture
- Resistance to change: employees usually resist the introduction of change. Some employees perceive change negatively (Wooding, 2013). For example, Parker may introduce change in culture that will lead to all employees’ fair treatment. However, the male employees who frequently harass female employees will attempt to change a culture that protects them.
- Failure of change: The culture change is expected to bring positive change to the organization. However, change of culture may bring more negative repercussions. For example, the various departmental managers may fail to implement the culture in their respective departments.
- Cultural change may act as a barrier to diversity. The culture requires employees to share similar values, histories, backgrounds, and beliefs. If the workforce constitutes diverse backgrounds and shares a similar culture, it will be challenging to implement diversity and inclusivity in such an organization.
- The management may concentrate on culture and forget the objectives of the firm. The CEO may insist on introducing the new culture and forgets to focus on the firm’s core objectives, which may compromise the firm’s performance.
- Difficult to change: The organization’s culture may be deep-rooted and becomes a challenge to introduce any change in the culture. Nike’s employees believe those female workers should be sexually harassed. The attempt by Parker to remind them that the culture has not changed the behavior of men. Besides, the movement of women “#MeToo” was not effective in changing Nike’s culture.
Human Resource Department Issues
Even though the company had anti-discriminatory policies and received several awards, several complaints were leveled against it. The employee complained about sexual harassment and being discriminated against for promotion, and HR departments did not adequately address the issues. Female employees complained about gender discrimination to the HR department, and they were neglected. Francesca Krane had worked for five years and retired in 2016. She complained to HR men were promoted, and yet there were qualified women. Another woman reported she was forcefully kissed in the washroom, and HR departed suggested they should discuss with the supervisor. Amber Amin had frequently reported rude, sexist behavior of her boss and was fired despite having a complimentary appraisal. There were several other complaints against the department. When they were interviewed in the media, women complained about Nike’s working environment, which was demeaning to females. As a consequence, the women viewed the HR department with skepticism and avoided it. The problems in HR can be addressed through training or changing HR management.
Training
The management should ensure the HR staff s undergo training to improve the department’s service delivery process and performance. The benefit of training includes risk management, corporate image improvement, reduced labor turnover, efficient processes, employee motivation, and increased capacity to embrace new technologies (Islam, 2018). The advantages will be discussed in the following paragraphs.
In risk management, employees are trained to respond to various issues that may face the company. For example, training will include resolving conflicts and dealing with sexual harassment. The HR department failed to address multiple problems involving sexual discrimination against women.
A corporate image is essential for any company. The firm’s reputation is key to driving its revenues and profitability (Pettigrew & Reber, 2013). According to various review reports, the corporate of the company had deteriorated. As a result, the firm projection for revenue was restated two years later. Besides, the compound annual growth of the company was low between 2012-2015, compared to other competitors. The training will assist the HR staff in responding effectively to the employee’s complaints, which will improve the reputation of the firm.
Employees are important resources for the company. A company should is supposed to retain and attract new employees. However, the Nike company has high labor turnover, including even the senior employees. The company’s labor turnover can be attributed to the failure of HR to address employee’s complaints on time. The training will help the firm to reduce labor turnover.
HR has various processes such as job screening, shortlisting, interview, job placement, orientation, training and development, promotion, appraisal, and employee termination (Monks et al., 2012). The trained employees will be efficient in the process if they are well trained. For example, the employees will be promoted based on qualifications and experience without favoring any gender.
The trained HR staff will be capable of determining what contributes to employee motivation. Motivated employees increase the overall productivity of the firm. The employees can be motivated through favorable work environments and benefits. In this case, the employees are not motivated, and most of them leave the company, and further, the company’s sales revenue declined in the last two years.
Trained employees will have the capacity to embrace new technologies. The new technologies will help the company to conduct the HR processes efficiently. For example, they were adopting efficient methods of handling the employee’s complaints. Besides, the company may suggest technologies that will help other employees improve their productivity. If employees are not well trained, they fail to embrace technology in HR processes.
In contrast, training has some disadvantages. The demerits of training include wastage of time and money, more theoretical concepts than the practical, loss of interest, quitting, and control of training (Purushothama, 2012). The disadvantages of training will be elaborated in the following paragraphs.
The management is required to use funds in training. The company can be having cash flow problems, and investment of training cannot be a priority. The company will be required to pay for the facilitator and which is usually based on the number of people attending the training. If the training is conducted in a seminar or workshop, the company will be required to pay additional accommodation and hiring equipment costs. The training can only be practical if it results in improved performance; otherwise, it will lose money and time.
The training is usually conducted in halls or classrooms but not in the actual working environment. The training usually involves emphasizing theoretical concepts. The participants may fail to apply the theoretical concepts to the practical field. It implies the employees will perform poorly in the practical field; the training will be ineffective.
The employees lack interest in training. They may think the training is irrelevant and not crucial in increasing their performance. The trainer should try to create interest in the topic; otherwise, some employees will not benefit from the training. It will be challenging for the management to develop an interest in HR staff during the training sessions.
Some participants may perceive training negatively; this may necessitate them to leave the job and seek alternative employment. An employee leaving the firm creates additional costs related to compensation, hiring, and training a new employee for replacement. For example, Edwards, the expected successor of Parker, left the job and was compensated for $9 million and $525,000; it was a loss to the company.
Changing HR Management
The second option of dealing with HR issues is changing the management in that department. The CEO, Parker, is concerned about employee issues, but the HR department does not implement his recommendations. Changing management has negative and positive consequences (Tyson, 2017).
The existing HR staffs are not supportive regarding the response to complaints from the employees. The change in management may bring positive changes to Nike. First, the new management will not have a culture of neglecting the employee’s complaints, and they respond adequately to the issues raised. Secondly, the new management may come with expertise and knowledge that will help assist the employees. Thirdly, the new employees may be helpful by recommending to the management the various methods that may increase motivation, which will lead to a higher performance of the employees. Lastly, the new management may have an impact on retaining the existing employees and
productivity.
In contrast, changing the management team may not adequately solve HR problems. First, there is a cost associated with hiring or introducing a new management team in the HR department. The firm will incur costs related to recruiting and training new employees and may strain the company’s financial resources. Secondly, the new team may be inexperienced with HR issues; therefore, the team will not be effective in delivering HR duties. Thirdly, the existing employees may offer resistance to the new management team. The team will have face challenges of coordination and communication with the current HR staff. Lastly, the team may require time to understand Nike’s culture; this may reduce employees’ productivity.
Growth Strategy Problem
In 2017, the sales revenue was $34.35 billion and a valuation of $112 billion. In 2015, the firm had a project to realize revenue of $50 billion in 2020. However, the performance in 2016 and 2017 made the management to extend the forecast period to 2022. In 2015, the firm had growth in 10.1% revenue, and management expected the growth to continue while making the sales projection. However, in 2016 and 2017, the growth of sales revenues was 5.81% and 6.1%. A decrease in performance can be attributed to stagnant sales growth for the United Kingdom and Germany markets in footwear and apparel. Besides, the local market in the US also declined in the same period. Nike also had a low growth rate in CAGR (compound annual growth rate). Between 2012 – 2017, CAGR was 1.93, while for Lululemon and Under Armour was 8.39% and 6.59%, respectively, in the same period.
The company has three alternatives: advertising, investment, and expansion in increasing sales growth. Each option has two possible outcomes: high or low. Besides, the cash flow for each outcome has been assumed. The probabilities of investments for each alternative and for outcomes have been estimated. The following table summarizes the three options.
Alternative | probability | Outcome | Probability | Cash flow |
Advertising | 0.6 | High | 0.8 | 80 |
Low | 0.2 | 30 | ||
Investment | 0.3 | High | 0.5 | 70 |
Low | 0.5 | 40 | ||
Expansion | 0.1 | High | 0.6 | 80 |
Low | 0.4 | 30 |
A decision tree has been used to evaluate the alternatives. The following table provides a summary of the decision tree.
Decision Tree
$ Billion | Joint Probability | $ Billion | |||||
0.8 | 80 | 0.48 | 38.4 | ||||
0.6 | High | ||||||
Advertising | 0.2 | 30 | 0.12 | 3.6 | 42 | ||
Low | |||||||
0.5 | 70 | 0.15 | 10.5 | ||||
Decision | 0.3 | High | |||||
Investment | 0.5 | 40 | 0.15 | 6 | 16.5 | ||
Low | |||||||
0.8 | 80 | 0.08 | 6.4 | ||||
0.1 | High | ||||||
Expansion | 0.2 | 50 | 0.02 | 1 | 7.4 | ||
Low |
In the above diagram, joint probability has been determined by multiplying the prior probabilities. For example, in advertising, 0.6 and 0.8 have been multiplied to get 0.48. The estimated probability for each alternative has been determined by summing the expected cash flows for high and low outcomes, for example, in advertising $38.4 plus $3.6 to get$42. It is also assumed the capital will be available for investing in each alternative.
Advertising has expected sales revenue of $42 billion, and it is the best alternative. However, advertising has some limitations. Nike’s previous advertising strategy was ineffective, and the company lost millions. The company should develop an appropriate marketing strategy to boost sales revenue. The firm should make efforts to advertise footwear and apparel.
Investment has expected revenue of $16.5 billion and its second-best alternative. The company can invest in technology; this will help the firm produce at lower costs than its competitors and provide the company with a competitive advantage. However, the option has several limitations. First, it has lower expected revenue as compared with advertising. Secondly, the firm may lack qualified engineers who will be vital in utilizing technology and increasing productivity.
The other alternative is expansion with expected sales revenue of $7.4 billion. The firm can expand by opening branches, both locally and globally (Yamada, 2019). Expansion is expected to increase the production capacity of the firm. The alternative may face several challenges. First, there is declining demand for the products, which will not lead to an increase in sales revenue. Secondly, the alternative has the least sales revenue as compared to other alternatives. Thirdly, the expansion will require huge funding, and the company may lack adequate finances. Lastly, Nike may take a longer time to determine the project’s site location and economic feasibility.
Recommendations
The management of Nike should consider recommendations to help them improve performance and gain a competitive advantage. The recommendations are for women’s footwear and apparel, discrimination, human resource issues, growth strategy, and competitors.
Nike was once a global leader in athletic sportswear. The main products targeted male footwear and apparel. The market for women’s footwear has been rising in recent pasts. Women’s products account for only 20% of the sales revenue. Management considers expanding sales for women products. To increase women’s footwear sales, the firm should include more women in executive positions and increasing advertising for that product line.
Nike has indicated discrimination primarily based on gender. Their male bosses sexually harass female employees, and the executive positions include few women. There is discrimination based on gender; white employees are preferred over other races. According to the company report, it indicates a favorable position with the inclusion of diversity and inclusivity. However, the media reports suggest the firm has discrimination practices. It is recommended the firm should adopt a principle of diversity and inclusivity for all activities in the workplace.
The human resource department has issues. The department has failed to respond appropriately on the complaints raised by the employees. Failure of the team has caused the high labour turnover, performance and low productivity. It is recommended the Human Resource staffs should go for training. The training will assist the staffs to be effective in their processes, improved company reputation, high capability to adopt new technologies and better ways to handle sexual harassment issues. Besides, other employees’ productivity will increase resulting to overall improvement in the performance (Schraeder, 2009).
The performance of the firm has deteriorated in the recent past. The firm had higher growth in the sales revenue of 10.1% in 2015, 5.81% in 2016, and 6.1% in 2017. The firm’s Compound annual growth rate (CAGR) for 2012 -2017 was less than its competitors. The CAGR was 1.93, while Under Armour and Lululemon had 6.59% and 8.39%, respectively. The firm revised its projection to achieve sales revenue of $50 billion in 2022 from 2020. It is recommended the firm to review its growth strategy to increase the sales revenue and improve CAGR. According to the three options: advertising, investment, and expansion, the advertising option had the highest expected sales revenue, and it is the best option for Nike. The company should also improve the methods for marketing strategy.
The firm faces stiff competition from Adidas as the main competitor; other small companies such as Under Armour and Lululemon are offering competition to the company. The firm also has a lower penetration in the market for women’s footwear. Nike was a global market leader in athletic footwear and apparel; however, the market share may decline if it fails to take the necessary steps to minimize the effect of competition (Lebron, 2010). It is recommended the firm to change its business strategy to achieve a competitive advantage. The firm can do so by lowering production costs and product differentiation. The firm can employ technology in production and reducing activities that do not add value to the product, and they accumulate costs. If Nike can lower production costs, it will sell high-quality products at a low price. The footwear and apparel products look similar, and consumers can have difficulty in identifying the product. Nike should differentiate its product to be recognized by the consumers.
Implementation Plan
The implementation plan details the actions to be done by specific people to help Nike achieve growth, profitability, and competitive advantage. The section also discusses the probable time frame required. The implementation plan has been presented in the form of a table and a Gantt chart.
Task | Recommendation | Duration (Months) | Person | Plan of Actions |
1 | Women footwear | 3 | VP Marketing | There is an increasing demand for women’s sportswear. The VP for marketing should estimate the expected demand for the products in three months. Based on the estimates for future demand, the information should be communicated to the production department to produce sportswear that will meet demand. |
2 | Discrimination | 2 | VP Diversity and Inclusivity | The management should determine areas where discrimination is practiced. In this case, the hiring process for executive positions, male bosses, and in the human resource department. Once the areas have been identified, the VP for diversity and inclusivity should conduct a meeting with the management and recommend appropriate measures to stop workplace discrimination. The vice president for diversity and inclusivity should recommend the proper actions to the respective departments. The meeting will be held in the first month and implementation in the following month. |
3 | HR issues | 6 | VP of Human Resource | The complaints raised by the employees should be identified. VP Human Resource should suggest the appropriate measure of dealing with the proposed recommendations and communicate the executive’s findings for approval. Gathering employees’ complaints will take a month, approval by management two months, and implementation in the next three months. |
4 | Growth Strategy | 7 | CEO, Parker | Parker wants to achieve sales revenue of $50 billion in five years. In achieving this, several steps have to be followed. First, making a market survey to ensure the projection of sales revenue is realistic. Secondly, estimate the demand. Thirdly, assessing the production capability of the firm’s capacity. Lastly, ensuring that production will meet the expected demand. Parker should also review and monitor the quarterly or monthly sales to ensure that the actual performance does not deviate significantly from the budgeted performance (Hollensen & Opresnik, 2015). He should ensure significant variances are investigated and corrective courses of actions made. |
5 | Competitor Analysis | 6 | CEO, Parker | Parker should collect relevant statistics for its competitors, such as sales revenue, CAGR, pricing, and industry statistics (Li, 2017). The information gathered should be useful in determining the market share of the company. CEO should necessary measures to ensure the company recaptures the market share and attain a competitive advantage. In achieving a competitive advantage, the firm should minimize production and differentiate its products. |
Gantt chart
The Gannt chart represents the activities’ schedules indicating the start date and end date (Slack, 2015). The implementation will start on 1st November 2020 and end on 22nd November 2022. The following table represents the Gantt chart.
Project Name | Project Duration | Start Date | End Date | |||||||
Nike Improvement | 720 days | 1-Nov-20 | 22-Oct-22 | |||||||
Project Gantt Chart | ||||||||||
Task ID | Description | Duration (Days) | Start Date | End Date | 1-Nov-20 | 31-Dec-20 | 31-Mar-21 | 27-Sep-21 | 26-Mar-22 | 22-Oct-22 |
1 | Discrimination | 60 | 1-Nov-20 | 31-Dec-20 | ||||||
2 | Women footwear | 90 | 31-Dec-20 | 31-Mar-21 | ||||||
3 | HR issues | 180 | 31-Mar-21 | 27-Sep-21 | ||||||
4 | Competitor analysis | 180 | 27-Sep-21 | 26-Mar-22 | ||||||
5 | Growth strategy | 210 | 26-Mar-22 | 22-Oct-22 | ||||||
720 |
Conclusion
Nike operates in footwear and apparel industry. The firm had impressive performance in 2015 and CAGR was 10.1%; the company projected to achieve revenue growth and attain $50 billion in 2020. The firm performed poorly in 2016 and 2017 resulting to delaying the projected by two years. The firm poor performance can be attributed to discrimination practices especially based on gender. The female employees have been discriminated by their male bosses and reports to the HR were not given attention. The male employees made several sexual harassment to female workers. Female were also discriminated in executive positions and not allowed to contribute to the meetings. The Nike had high labour turnover which can be attributed to the failure of the HR department. The firm faced stiff competition from Adidas and other small companies, and Nike’s product line for female sportswear recorded poor performance. The problems were briefly analyzed using the SWOT and Ishikawa tool. The paper highlighted the major issues and provided alternative solutions. The options were argued in terms of advantages and disadvantages. The paper suggested recommendations for women’s footwear, discrimination, human resource issues, growth strategy, and competitors. The article concluded by providing an implementation plan.
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