Identification of current corporate level strategies
One of the tools that have proved to be the most effective in as far as corporate strategizing is concerned is diversification. Nike realise that even though their shoes and apparels provide the most income, there is a need to come up with subsidiary products. Even with the minor products, the same technological and distribution channels are used. This greatly boosts their revenue as a corporation. This form of diversification is referred to as related constrained diversification; it has proven to be an effective tool over the years.
Supply chain and manufacturing diversification is also one of the strategies that the company has put in place in a bid to survive the highly competitive industry. Such diversification especially comes in handy since there have been significant uncertainties owing to the recent global financial crisis. As such, focussing on only one product would be extremely risky. With such a strategy, the risk is highly minimised and this also enables them to land the best deals.
Supplier diversity is also a factor that has enhanced Nike’s functionality to a great extent. This is mostly because Nike is a global supplier. As such, for them to generate the revenues they target, it is necessary to create a wide base of suppliers. These will essentially distribute their products better as opposed to just a single supplier.
Identification of global strategy
Climate change and energy have been emerging issues the world over. Nowadays, companies are greatly judged by the role they play towards the achievement of a better environment. Nike has involved itself with policies that work towards the realization of increased sustainability. An example of such would be the initiation of Business for Innovative Climate and Energy Policy (BICEP). This was formed in a bid to advocate for stronger climate change and energy legislation. By being ahead on the curve of compulsory regulation, they are bound to make major leaps ahead of their competitors.
Nike has also taken upon itself to reduce the carbon dioxide footprint in their company’s factories. This is taken by customers worldwide to imply corporate social responsibility. This can in turn lead to increased profits (read sales).
Nike has empowered their employees on how they are expected to handle the various strategies. For such a system to work, there has to cooperation within the system; whether manpower or otherwise. The sustainability journey cannot be achieved unless the employees work hand-in-hand with the system in its entirety. The company has used group exercises and brainstorming as methods to sharpen the workforce in a way that their efficiency is enhanced.
Additionally, Nike employees have been empowered to address change. If the volatility of the markets and the recent global crisis is anything to go by, employees should be prepared for any uncertainty that could arise. With this, it would be unlikely to have a systems failure.
The most dynamic people are included in the Nike workforce. This is in a bid to enhance productivity; in a way that ensures that the company targets are met. Also, the company has a reward program where individuals are recognized for the contributions they make to the company. This goes a long way in motivating the said employees and they can only work harder.
Business Wire . (2010, January 22). Nike Outlines Global Strategy for Creating a More Sustainable Business. Retrieved March 24, 2014, from Businesswire.com: http://www.businesswire.com/news/home/20100122005661/en/Nike-Outlines-Global- Strategy-Creating-Sustainable-Business#.UzACGc7SVbx
Nike. Inc . (n.d.). Our sustainability strategy . Retrieved March 24, 2014, from Nikeresponsibility.com: http://www.nikeresponsibility.com/report/content/chapter/our-sustainability-strategy
Up and running: Nike customers are the secret behind increasing value. (2009 ). Strategic Direction , 25 (6), 29 - 31.