Competitive Strategies in Today’s Business World – Nike

Competitive Strategies in Today’s Business World – Nike

Areas where the company has excelled together with strategies required in areas that need to be improved

Corporate strategies play a vital role in our company’s performance. Corporate strategies take three forms namely: growth, stability, and retrenchment (Regazzo, 2020). The three corporate strategies give general direction to our company’s mission, vision, and values. Nike as a footwear manufacturing company has excelled over the past 20 years in meeting customer demands through offering quality products at affordable prices. It produces a variety of footwear as per the customers’ tastes and preferences. The company has established industries across a number of countries and soon it is dominating the footwear industry. The main challenge facing the company is competition from other companies producing tissue papers in from other countries. To overcome the challenge, the company has employed growth and stability strategies.

Growth and Stability Corporate-Level Strategies

Pros and Cons of Growth Corporate-level Strategy

In this case, I propose growth and stability corporate-level strategies in achieving the company’s mission, vision, and values.  With a growth strategy, we need to diversify and integrate our markets. Since we have fully exploited the opportunity for growth in the footwear industry, we can diversify our markets by producing clothes. This will expand the existing production lines by completely leading to the production of a new product, hence backward integration. A growth strategy is important because it increases profits from expansion of production activities, enhances efficiency, increases market share and enhances the company’s durability due to the general benefits of economies of scale (Kunisch, 2017). Implementation of a growth strategy needs many resources in terms of money and personnel. In addition, upon implementation, the company has to produce a lot in order to maintain the new markets resulting from growth.

Pros and Cons of Stability corporate-level strategy

            Stability corporate-level strategy is enhanced by cutting down the production costs, raising the prices of the commodity and defunding non-business components. For instance, to cut down our production costs we need to reduce the size of packaging materials. The boxes used should not be wide. Now that we have dominated the market and the customers are, aware of our good varieties we should increase the prices of our products. Funds that are used on the purchase of staff cars should be channelled to production to enhance stability in production and increase profits. Stability enhances the growth strategy as the profits are used in the expansion of the company’s business activities. Stable companies last longer since they do not easily make losses. Stability increases the company’s market share because of the profits from sales (Kunisch, 2017). The disadvantage of the stability strategy is an increase in prices of commodities for more profits that can make customers go for other alternatives hence loss of customers.

How growth strategy align to the firm’s mission, vision, and values and how the management can employ the strategy for competitive advantage

The company’s mission/vision is, “To timely avail a variety of commodities that meets the customers’ needs at affordable prices”. The growth corporate-level strategy aligns with the firm’s mission, vision, and values. For instance, the production of a variety of commodities should be enhanced through diversification, whereby the firm will engage in more than one unit of production for more revenues to be invested to enhance stability for health competition. Our management team should enhance diversification through the production of Nike trousers and shirts alongside Nike shoes. Our products should be highly differentiated in terms of packaging, colour, and all sizes for a competitive advantage over our business rivals. Growth in terms of infrastructure should be taken into consideration for goods to reach our customers at the right time.

Business Units the company should defund to finance growth and stability strategies

To finance these strategic alternatives the company should defund the purchase of personal cars to the staff members. Funds allocated annually to the purchase of staff cars should be channelled to the production of other products like trousers. This will promote the growth of the company through diversification of activities. In addition; unused cars at the parking yard should be auctioned to generate funds for production. Defunding of non-business components enhances the stability of the company. Another source of finance for these strategic alternatives is profits from the company’s sales. For the past 5 years, the company has done well in terms of revenues accrued from sales. Now that the company is stable, the profits can be invested in the production of clothes for more growth and development. Alternatively, the company can take a loan from the World Bank to finance the growth strategy. The company is in a good position to repay the loan because of the existing market stability in the footwear industry.

Promotion of the Company’s Culture, Vision, and Mission to Enhance Success in the Industry

Our company culture should have a good company image that allows all employees to contribute to decision-making for achieving the company’s goals. We should recruit people who fit into our working environment without considering ethnicity. We should embrace integrity, honesty, and competence within and outside the company. Our vision and mission regard customers as the central role of the organization. Our main purpose is to give the customers what satisfies them.

Proposal of Christian Leadership Initiative in the Company

According to today’s Christian worldview, a good leadership initiative should have a good relationship with everyone. In the case of our company, there should be a good relationship between the top management and other employees. The company’s relationship with the customers should also be good. Good working relations enhance the productivity and the success of the company.

Conclusion

In summary, Nike just like most global companies is in a competitive business environment that demands companies to come up with strategies if indeed they want to remain in business. Corporate strategies that advocate for diversified and stable business activities are the only survival mechanisms in today’s business world.

References

Annushkina, O. E., & Regazzo, A. (2020). Strategic Decisions in International Business. In The Art of Going Global (pp. 131-153). Palgrave Macmillan, Cham.

Kunisch, S. (2017). Does the headquarters structure follow corporate strategy? An empirical study of antecedents and consequences of changes in the size of corporate headquarters. Journal of Business Economics and Management, 18(3), 390-411.

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Competitive Strategies in Today’s Business World – Nike

The purpose of this assignment is to summarize two strategic alternatives for your selected corporation based on individual research and team analyses.

Assume that you work as an analyst team lead at the company you have been studying throughout this course, and you are issuing a high-level communication to the company CEO that summarizes your analysis. Based on what you have discovered regarding environmental scan issues, financial analysis issues, industry trends, etc., communicate a plan for implementing two strategic alternatives in an executive summary of 750-1,000 words.

Include the following in your response:

Based on your work this semester, synthesize and present key analytical findings about where the company is excelling and how or where it can improve. Refer to both your CLC and individual analysis in your summary.
Propose two creative yet viable corporate-level strategic alternatives. Critique the pros and cons of each alternative utilizing your analytical findings.
Select and defend the pursuit of one of your two viable alternatives. How does this alternative align with the firm’s mission, vision, and values? How can management employ this alternative to create a competitive advantage for the firm? Suggest next steps.
Based on your analysis, identify a business unit or activity within the corporation that you would suggest defunding in order to finance your strategic alternative, or provide an alternate funding source. Defend your selection.
Given your overall proposal, how do you suggest the company promote its culture, vision, and mission to maximize its chances for success in the industry? How might the company develop its servant leaders to endorse and exemplify tenets of the Christian worldview (CWV) in the workplace? Propose and defend at least one significant leadership initiative.
Prepare this assignment according to the guidelines found in the APA Style Guide, located in the Student Success Center. An abstract is not required.