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Strategic Operations Performance Assignment

   

Added on  2020-04-01

13 Pages3037 Words47 Views
Running head: STRATEGIC OPERATIONS PERFORMANCEStrategic Operations Performance: NikeStudent Name University nameAuthor Name

STRATEGIC OPERATIONS PERFORMANCEThe CompanyNike, Inc. is an American footwear designing and manufacturing company that runsworldwide marketing. The company is the most successful company in the athletic shoessupplying across the globe and covers 47% of the global market. The company generatesworldwide revenue of 32.4 billion this year which is 6% up from last year (News.nike.com2016). The Blue Ribbon Sports was founded by Bill Bowerman and Phil Knight in 1964 thatchanged its name in 1972 to Nike (Gibson 2012). The company strategic market campaignpromotes innovation and inspiration in athletes’ lives (About.nike.com. 2017). Outside Americathe company owns runs business in 45 countries in 700 stores (Morris, Kuratko and Covin 2010).Nike aims for the maximum number of buyers so they offer various ranges of products for allages. This also reflects in their company statement as they treat every customer as an athleteshould wear their products. However considering the price of their products it is easilyunderstandable that the company mainly targets the high income group customers. The company enjoys the credit of being the top market leaders in the sports footwearsupplying business but there are other equally strong competitors present in the market as well.The other two top sports footwear companies that are present in the market are Adidas andReebok (Team 2017). Adidas generated revenue of 19.3 billion where Reebok generated 3billion (Adidas-group.com 2017). There are competitors like Puma, Fila, Converse, UnderArmour, New Balance, K-Swiss, Li Ning and ASICS. Apart from these competitive companiesNike is facing serious challenges from cheaper substitute sports footwear that are gainingpopularity.

STRATEGIC OPERATIONS PERFORMANCELiterature ReviewThe strategic operations performance objectives help the company to achieve thecompetitive advantage in the global market. Organizational performance is also closely related tothe strategic operations that the company engages in. This section tries to explore variousliteratures that discuss the concepts of performance objectives and their significance in theorganizational performance. QualityAccording Slack and Lewis (2011) five categories can be identified as cost, quality,dependability, speed and flexibility for the performance objectives. The quality is defined asperforming the assigned tasks effectively, procuring services and goods without any faults andthe performance should be in accordance with the determined mission and vision. Desai (2008)has stated that if any company aims for the global competence and operational effectiveness thecompany must engage in the quality management. The companies have been realizing that andthat is the reason quality has been emerged as an effective strategic entity in the organizationalmanagement. As Corbett (2008) described quality can be defined differently in differentcircumstances. In the manufacturing industry the quality is generally considered to be thestandard on the products. According to Russell and Taylor (2008) quality is the essentialcomponent for the products to be able to satisfy the consumers rather than just eliminating theflaws and even if the company lacks a clear improvement in market the quality is able toconform the specifications. Prajogo and Goh (2007) analyzed that quality does not include anyproper measurement or carries wrong measurement at certain times that highlights the lack of

STRATEGIC OPERATIONS PERFORMANCEknowledge in quality. The company has to work with the both sides of quality in order to achievethe desired performance. SpeedRussell and Taylor (2008) stated the speed is extremely important for any manufacturingbusiness in the competitive market of today. The speed is the company’s capability ofperforming any task fast and should be able to ensure that the gap between the producing andreaching the consumers is bridged rapidly. The companies can easily gain more competitiveedge if they deliver the products faster than their competitors. The authors have highlighted howcurrent manufacturers are exploring the advantages of service that is time based. The speed ofthe business has many other aspects like fast adaptation, close linkages and fast moves to theimproved speed of competing. According to Tidd and Bessant (2009) the global businessenvironment is always changing, therefore if the company brings new products with speed thecompany can achieve performance excellence. FlexibilityCingoz and Akdogan (2013) define strategic flexibility as the organization’s ability toadapt and respond to the business environmental changes. In order to develop the flexibility thecompany requires to build core competence, engage in strategic leadership; develop humanresources, integrating newer technologies. The flexibility is the company’s ability to matchcertain unexpected circumstances helps the company in implementing new strategies or bringingnew brand in the market. Roberts and Stockport (2009) discuss that flexibility is theorganization’s ability to maintain the relationship between the internal and externalorganizational structure. Nadkarni and Herrmann (2010) highlight that flexibility makes thecompany reach the superior position in the competitive market. Ussahawanitchakit and

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