Strategic Resource Integration Report: Adidas and Nike Case Study

This report provides an in-depth analysis of resource integration strategies employed by Adidas and Nike. It begins by defining resource integration and its importance, particularly in coordinating assets for sustainable advantages. The main body delves into the significance of human and financial resources, crucial for business operations. It discusses how Adidas and Nike utilize their workforce and financial assets to achieve their goals, emphasizing the role of the HR division in hiring skilled talent and the importance of providing financial benefits to motivate employees. The report explores theoretical concepts such as human capital development, change management models (Kurt Lewin's), and motivational theories (Maslow's hierarchy of needs). Furthermore, it highlights financial management techniques that the companies can use to improve organizational performance, such as common size statements and trend ratios. The report concludes by summarizing the key findings and emphasizing the need for effective resource integration to enhance business operations and achieve desired outcomes.

Resource Integration
Individual Report

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Resource integration indicates to the activity through which actors such as consumers,
combine and apply assets in searches of value creation. Resource integration is an activity and
procedure that coordinate assets utilise so that the long term sustainable advantages are
optimised and conflicts between users are reduced. The integration of resources is important as
with the addition of effective resource the organisational task can be performed in effective
manner. This report is based on two organisation Adidas and Nike (Mac Kinnon, Brouwer and
Samuelsen, 2018). Adidas is a German multinational company which was incorporated in 1924
and is headquartered in Herzogenaurach, Germany. It operates its business in Apparel and
accessories industry and run at global level. Nike is an American international firm which is
involved in the design, development, manufacturing and global marketing and sales of footwear,
apparel, equipment, accessories and services etc. This venture was established in 1964 and is
headquartered in Beaverton, Oregon, US. This written report will discuss information about
resources in term of human and financial assets that are crucial for business operations of
enterprise. Further, will identify that how these ventures consider key resources with the firm for
effective running of business operations and activities.
MAIN BODY
Resources refer to an economic and productive factor that is needed for completing an
activity and as means to undertake an establishment and attain expected outcome. Finance and
human resource are two key and common resources that are crucial for each and every
organisation to accomplish are desired aim and goals. Manpower and finance are often observed
as two opposite ends of the firm. They do not speak the same language, HR acknowledges the
language of people and it influence, while finance understands the language of numbers. Their
core values are differ too, HR values individual as their best resource while finance values assets
that can be easily enumerated. In organisation like Adidas and Nike, integration of finance and
human resource is required to develop resource capability in reference for corporate and
operational strategy (Chams and García-Blandón, 2019). In Adidas and Nike, the human
resource are crucial for performing the business task and activities within diverse function of the
company like marketing, sales, production, recruitment and selection and many more. Due to
having skilled and talented workforce, these ventures are appropriately accomplished their set
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aims and desired objective on time. In term of hiring knowledgeable manpower, the HR division
of these enterprises use effective method and tools of recruitment so that they can hire skilled
and fresh talent. So that, they can make their appropriate contribution in running the business of
establishment. Along with this, Financial resource are also crucial for the firms they play an
effective role in business operations like purchasing raw material, executing production,
encouraging workers by offering pay and many more. So the integration of people and finance
resource is required to develop capability because if the firm like Adidas and Nike will provide
an effective pay and financial benefits to its workers then they feel motivated and performed
their task in adequate manner.
The management of companies like Adidas and Nike can use diverse theoretical concepts
regarding human capital development, change management, motivational theories, financial
methods, budgeting, financial and management accounting to identify the integration of fiscal
and human resource for the development of the firm (Cline and et. al., 2018). In term of human
capital development, these respective establishments can consider concept of human capital
which is viewed as a set of characteristics and abilities that efficiently develop the level of
productivity. To be more precise, it can be thought of as a beneficial resource for entire
organisational administration. t can be suggested that for effective development of human capital
the management of organisations should consider effective human capital factors that are defined
as:
Health and safety regulations- They are crucial for managing manpower with reliable
activities of nurturing their conditions. In Adidas and Nike, by following health and safety
related laws and legislations, the management can managing and motivating workers. They can
provide them diverse kind of medical benefits like life, health and disability insurance, medical
check up facility, prevention of work related injuries and ailment and promoting safety work
culture. It will assist in making development in the business venture (Bruning and Campion,
2018). Along with this, it will minimise the absenteeism injuries, compensation and disability
along with health care.
Training and development- It is another effective and essential component for human
capital investment. This constraint determines how the human capital should be formed to offer
appropriate training and education service to the human resources. Along with this, it is relevant
to evaluate the entire productivity of any firm with their effectiveness and execution estimation.
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In Nike and Adidas, by offering and training and development programmes to workers, the firm
can retain them till long term, assist in career development as well as making improvement in
knowledge and skills of workers.
Apart from this, there are several kind of changes are executed by organisations in term of
making growth and development. When company make change then finance and human resource
play an effective role in term of implementing change in effective manner (Antonopoulos and et.
al., 2019). Sometimes in the situation of implementing change, employees are not ready to adopt
it and performing according to this situation. In these kinds of circumstances, it can be
recommended that the administration of Adidas and Nike should consider and use change
management model and conception in term of managing change. In context of it, the
administration of establishments can use Kurt Lewins change management model. According
to Lewin’s change for any company is an unclear journey that may not be very simple and
mostly considers diverse steps of transitions before accomplishing the phase of equilibrium of
stability. This concept considers three phase’s model and a simple tool for acknowledging the
activity of organisational change.
Unfreezing- It is the first phase of transition and one of the most critical steps in the whole
activity of change management. It considers making individual aware of the requirement for the
change and developing their motivation for adopting the new forms of working for more
appropriate outcomes. Within this phase, effective communication plays an important role in
getting the expected support and engagement of human resource in the change activity.
Change- This phase can also be referred as the step of transition or the phase of actual
implementation of change. It considers the adoptability of the new ways of doing things. Within
this step, careful planning, appropriate communication and empowering the engagement of
people for approving the change is required (Meyer and Xin, 2018). This phase of transition is
not easy because the uncertainties or individual are fearful of the consequences of accepting a
change activity.
Freeze- It is the final phase, within the individual move from the stage of transition or
change to a more stable state that is known as phase of equilibrium. It is an ultimate step; within
workers accept new ways of performing and adopt it as a segment of their life and establish new
relations. For motivating, strengthening and reinforcing the new change in the form of working,
the workers should remunerated , recognised and offered positive reinforcements, supporting
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strategies and policies or frameworks can assist in underpinning the innovated ways of
execution.
In term of managing change by considering this model, the establishment can administrate
workers in term of implementing change by providing new framework and ways of
implementing change. And when people perform well then they are rewarded in term of bonus,
compensation and others for their great execution (O'Dwyer and Gilmore, 2018). In context of it,
integration of people and finance is required so that respective ventures can implement changes
in effective manners.
In term of development and improving organisational performance, employees make an
effective contribution by executing organisational task and work in more developed manner. In
term of motivating workers so that they can execute their duties and responsibilities with full
capacity, the management of Adidas and Nike can determine the factors and areas which
encourage them to execute with same capability. In reference to this, it can be suggested to the
management of both organisations that they should implement and consider Maslow’s
hierarchy of need theory. This model is developed by Abraham Maslow in term of identifying
find the basic are of motivation and an individual’s effort at satisfying five basis needs.
Physiological needs- It refers to those requirements that are required for human survival
like air, food, water, shelter, clothes etc. These needs create tremendous impact on human
behaviour. If these basic requirements of employees are satisfied by the firm through offering an
effective pay then it encourage workers to execute their accountabilities in more effective
manner and make their contribution in development of organisation.
Safety and security needs- When physiological level of needs are emerged, the second level
of need are occurred which consider personal security, fiscal security, job security, good health
and protection, secure work place etc. To meet this level need, more finance is required
(Hollebeek, 2019). By offering safe working conditions, secure compensation, heath and medical
facilities and many more, the firms can fulfil this level of requirement of workers.
Social needs- It indicates to the requirement of belongingness, affection, friendship and
others. In term of fulfilling social needs, the managers of respective firms can make an open
communication, form good employee relation, organise diverse kind of fun activities and
promoting a good work life balance etc. It will assist in motivating employees and avoiding
problems like loneliness, depression and anxiety etc.
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Esteem needs- It refers to the needs of respect, confidence, achievement, competence,
knowledge and independence etc. This need can be satisfied by promoting employees for their
good performance and when a person is promoted, he is respected by all at workplace (Dubey
and et. al., 2019). It increases the level of confidence in other workers regarding their work
execution and also empowers them.
Self actualisation needs- This level of needs consider talents, capabilities, potentialities and
many more. For fulfilling them, managers organise training and development sessions, online
courses and many others. So that people of firms can make development in their skills and
abilities and fulfil their need of growth. By making development in their skills they can execute
their task in better form which will make development in their job.
From the defined concept of motivation it can be summarised the by implementing this
model, the administration of Adidas and Nike can retain their workforce and encourage it for
performing their business activities and attaining expected objectives. This will make
development in the organisation performance.
Financial management techniques also play an effective role in the growth of the
organisation and improving its performance. Financial management is an important process in an
establishment. It is an act of planning, organising, controlling and determining fiscal assets with
a view to attain organisational aims and objectives. In context of Adidas and Nike, it can be
suggested to the administration of these ventures to manage the financial resources that they can
consider some financial management techniques, they are as under:
There are several financial management techniques that are used by the respective venture in
term of managing financial resources. Common sizes statements are those within figures
reported are converted into percentage to some ordinary base. Common size balance sheet and
income statement are designed for vertical analysis and interpretation is complete for
identification of causes for modifications taken place over a period of time. This technique play
an effective role as with the assistance of it, Nike and Adidas can presented their items in the
financial statements in form or percentages and ratios to total of items and a common base for
comparison is offered, Each percentage shows the relation of the particular item to its respective
total. Trend ratio is another technique which mentioned as the index numbers of te movements
of fiscal figures reported in the financial statements for more than one accounting period. It play
an effective role in Nike and Adidas because it can be adopted to reveal the trend of fiscal items
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that are utilised in analysis of behaviour of financial items and for preparation of projected
financial statements.
Common size statements- These statements are those in which figures reported are
exchanged into percentage to some ordinary base, Common size balance sheet and income
statement are designed for vertical analysis and interpretation is completed for identification of
causes for changes taken place over the period of time.
Capital structure- It is another technique, within the finance manager has to determine an
optimum capital framework to increase the wealth of shareholders (Sanche and et. al., 2020). By
considering diverse analysis like financial leverage EPS or EBIT analysis fiscal breakeven point
and other mathematical models are utilised for structuring the finance of the firm.
Capital budgeting techniques- It is a decision to invest capital in long term activities for
upcoming time benefit which maximise the wealth of the company. The future development of
an enterprise is based on capital expenses determinations. By structuring the capital of the firm
by evaluating large amount of funds, risk and uncertainty in business, the finance manager can
execute capital budgeting. The outcomes of it are the exchange of current fund for future
advantages that will arise over a series of years to come.
It has been determined from the mentioned techniques that by considering and implementing
these fiscal management tools, the administrators of Nike and Adidas can make improvement in
the profit margins position, budgetary control and improve the value of organisation (Brueller,
Carmeli and Markman, 2018). Along with this financial and management practices also play
an important role in improving the performance of the organisations. It can be recommended to
the respective ventures that by considering them, the management of companies can monitor the
finance and capital of firm. Some of them are defined as below:
Job costing- It indicates to tracking cost regarding a certain job or project, Organisations
utilise labour time sheets and material usage sheets to analyse the amount of human resource and
materials used to accomplish a particular project. This information is compiled on a job cost
report that is utilised to determine the profitability of the job. With the help of this method and
activity, the finance manager can track the fund which is invested in a specific project and job.
Variance analysis- It refers to researching the root causes of a variation in management and
financial accounting. With the assistance of this kind of determination, the finance administrator
can determine the issue and difference as well as find the root cause of a material variance to be
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in the actual cost or quantity of material used. Along with this, it also help in finding out the
labour variances that will appear when the number of hours worked surpass what was planned or
if the standard actual rate diverges from the paradigm labour rate.
It has been determined that by implementing and considering management and financial
practices, the management of both ventures like Nike and Adidas can monitor the fund and
variance in capital which is invested by the firm in project and execute particular activities of
business (Zhou and et. al., 2019). This will assist in offering accurate information of capital of
companies and make development in the firms.
CONCLUSION
This has been concluded from the defined information that for the effective running of
organisations, finance and human resource both are crucial. Because when people make their
contribution in the firms by executing business activities and operations, then they attain their
business goals and hit their set objectives in effective manner. Different models, theories,
concepts, practices and many more play an effective role in finding out and evaluating the
improvements that could be made for developed execution of firm. The integration of people and
finance is necessary as finance help in running business activities and motivating workers by
offering those financial benefits with the purpose of fulfilling their needs and encouraging them
so that they also make their contribution in business development.
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