Identification and Evaluation of Alternatives
Problem 1 indicated women are tired of the status quo in the Nike Company. The firm has two options to solve the situation: relax the status quo or ensure gender equality. The status quo indicates the unchallenged position of male employees in the company. The management may find it challenging to adopt the policy; this will mean the men should treat women fairly. In contrast, it helps women achieve gender equality, and there will be a decrease in sexual harassment against women. The other option is to ensure there is gender equality at the workplace. Gender equality will help women contribute positively to the production of female footwear. In contrast, the executive who is the majority in the meeting will not vote for the resolution.
Problem 2 relates to whether Nike should focus on sexual advertising policy or improve the corporate image. The company can take either of the options. Sexual advertising policy has an impact on increasing the sales revenue of the company; however, the majority of the people will perceive the company negatively—the other alternative the firm has to focus on the improvement of the corporate reputation. The company increases sales revenue if the consumer has a positive opinion about the company; however, the corporate reputation is negative due to female sexual harassment. It will be a challenge to improve the public image. The firm available image has declined due to sexual harassment of females.
Problem 3 is related to the termination of employees resulting from sexual harassment. The company makes a loss while compensating its employees. Parker, after receiving the review report, made allegation that Edward was terminated due to sexual harassment and compensated with option worth$9 million and a sum $525,000. The problem can be solved by providing concrete reasons for termination or fair amount of compensation. Solving the problem through first method has several complications. First, the firm has to set-up a committee to investigate the employee’s conduct, and the cost is a loss to the company. Secondly, the committee may be biased and provide the wrong report. The other method is determining the fair amount of compensation, and it has several implications. First, the executive will set payment to favor the employee and become a loss to the employee. Secondly, the employee may feel unfairly compensated and may result in legal suits.
Problem 4 is related to “frat-boy culture.” The workers had complained about their grievances through Glassdoor. Parker had two alternatives to solve the problem. First, the CEO should change the culture of the company. The males will resist change of culture because the current culture favors them.
In contrast, continuing with the culture will damage the reputation of the company. The second alternative is to change the management policy, which has several implications. The management will have a challenging task to change the system because it mainly constitutes males who favor “frat-boy culture.” Change of management policy will ensure there are no discrimination practices at the workplace.
Problem 5 is about competition. Nike faced intense competition from Adidas and other small companies such as Lululemon and Under Armor. Parker should consider two possible alternatives. First, the company should consider developing a market strategy to increase the revenue of the company. The firm will require funds to conduct marketing, and it will strain the company’s financial resources. Secondly, the firm should consider investing in technology to produce at a lower cost than competitors to achieve a competitive advantage; this will help the firm sell at a lower cost than competitors. However, the competitors may put price war and lower their prices further, and the Nike market may decline.
Problem 6 is about the lower proportion of women apparel in the company’s sales revenue; the women revenue accounted for only 20% of Nike’s total income. Parker to resolve the issue, he can increase advertising for women footwear or include more females in the executive positions. The advertising option will increase sales for women’s footwear; however, the firm lacks a proper advertising strategy. The other alternative is to involve women in the production. If women are included they will provide innovative and creative ideas for designing women footwear and increase sales revenue. However, females are the minority in the executive positives, and they will not be able to contribute to the ideas about production.
Problem 7 is about misleading reports concerning diversity and ranking. The reports indicated Nike had the best working environment and ranked position 10 by millennial women. Parker to solve the issues he has two alternatives. First, Parker should ensure the reports are representative and credible. The fair report may indicate Nike is performing poorly in terms of gender equality and work environment to its disadvantage. However, adverse reports will help the company to improve on those areas. Secondly, Parker should seek an independent review from various agencies and compare and contrast their reports. The reports may be favorable or unfavorable. The favorable report will indicate the firm is doing well in terms of diversity and inclusivity and will improve the corporate image. The adverse report will reveal the firm is performing poorly in diversity and inclusivity, and it harms the firm’s reputation.
Recommendations
The market dominancy of Nike is declining due to its ethics issues. In a dynamic and competitive environment, the firm should review its ethics issues to improve its market share and regain market share in the industry. It is recommended Parker should improve on gender equality, marketing strategy, Human Resource policies, culture, competition, women footwear, and adopting the principle of diversity and inclusivity.
The company has gender equality problems. The women are usually sexually harassed by male bosses. Once the female workers raise the complaints to the HR department, problems are not resolved. The #MeToo campaign was trying to advocate for the fair treatment of female workers, and it impacted the reputation of the company. Parker should ensure the Vice President (VP) of diversity and inclusivity is ensuring the principles are followed. This will remove discrimination practices at the workplace and improve the reputation of the firm.
The marketing strategy of Nike is ineffective. The last marketing campaign showing males with bras and scantily dressed ladies had a negative impact on marketing. Nike should develop an appropriate market strategy that will positively affect the company’s sales revenue. For example, the marketing manager should adopt the marketing mix: pricing, product, promotion, and product. Besides, the marketing manager should create a value proposition that will assist the customers in preferring the company’s products than of its competitors.
The human resource department has several issues. First, the department fails to respond appropriately to female workers’ grievances concerning sexual harassment by male bosses. Secondly, the department does not follow merit while awarding promotions. It is recommended that Parker train HR staff and provide a clear job description to the department’s workers. Training will help the workers to be efficient in delivering their services to other workers, and they will be able to resolve employee’s conflicts amicably.
The company has a “frat-boy culture” that provide the male with superiority and a right to abuse female workers. It is recommended that Parker should change the culture. The new culture should create a work environment where women are not discriminated or sexually harassed.
The company is facing stiff competition from Adidas as the main competitor. Lululemon and Under Armor are also providing competition for the company. Besides, in the last two years, that has recorded a decline in the sales revenue. To achieve a competitive advantage, the firm should reduce production costs and differentiate its products. If the firm adopts the suggestion, it will increase its market share and increase the sales revenue.
The women’s footwear accounts for one-fifth of the total revenue of the firm. The decreased sales can be attributed to 22% of females in the executive positions and cannot influence the majority’s decision. Females are better placed to provide suggestions on the creation and development of women’s footwear. The firm should develop a strategy to increase sales from the female’s product lines. This has an effect of improving the total revenue of the company.
The company fails to adopt diversity and inclusivity in its workplace practices. The review reports by independent companies have also indicated the same, contrary to the company’s report. The management should adopt the principle of diversity. Gender-based discrimination against females will decline if the concept of diversity will be adopted. Besides, it will create a favorable working environment for the employees and improve the reputation of the organization.
Implementation Plan