Changing Decision Making and Introduction of New Products at Nike
Nike’s downfall started when the managers developed the feeling that their decisions were final and correct with regards to the operations of the company. However, deteriorations in market performance forced the management to acknowledge the need to change how decisions were made and the type of products offered in the market (“Nike- A Case Study” par. 3). Following increased competition and changes in the sports shoe market, the company contracted external managers to influence and guide the formulation of policies. The company was advised to take over small and specialized companies to widen its product line. However, the management rejected the idea. However, after increased underperformance, the company had no option but to introduce changes. Reforms were executed through the introduction of new designs of shoes targeted at niche markets (“Nike- A Case Study” par. 5). For instance, the designers came up with new products meant for the soccer and golf markets. Change in decision making was affected by separating specialized teams from the general production group. The new teams focused on the production of items for the specialized markets.
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How Nike can Use Change Techniques to Improve Effectiveness and Competitive Advantage
According to Gareth, there are two main types of changes in an organization (281). They include evolutionary and revolutionary reforms. The focus of the former cluster is narrow, regulated, and incremental. The latter entails drastic and ‘wide-sweeping’ changes (Gareth 285). Nike should adopt an evolutionary change to keep up with the fluctuations in the market. By doing this, the company will be able to develop products that can meet immediate and anticipated customer needs. Also, the evolutionary change will enable the company to improve its competitive advantage. Ultimately, Nike’s change goals will be attained.
Gareth, Jones. Organizational Theory, Design, and Change. 7th ed. 2012. Upper Saddle River, New Jersey: Prentice Hall. Print.
Nike- A Case Study 2007. Web. 12 Sep. 2014. Web.