Internal Capabilities The organizational capability is an organizations ability to manage their resources in order to gain a competitive advantage over their competitors. Nike organizational capabilities includes their streamline management structure, or cost effectiveness, their human resource management department that continues to recruit, train, and provide their employees with best skillsets to be successful. Another capability is the inventory management process. Nike’s customer services is also excellent. They provide their customers with a good experience through their support lines. Lastly, product design capabilities are essential to the organizations performance. Streamline Management Streamline management is the ability to improve a business process by simplifying the procedures, and eliminating the negative, or unnecessary steps. Nike has integrated various steps to the workplace for its employees, manufacturers, administration, and so forth
NIKE COMPANY ANALYSIS 21 in order to make processes more efficient, and simpler. These processes ultimately help Nike keep down their internal costs. Human Resource Management Human resource management is the function of an organization that is responsible for the employees. These departments. This is a formal system that is responsible for staffing, employee compensation and benefits, and defining and designing work (Inc, 2017). Recruitment, retention, and training strategies are part of this human resource management description. Nike training programs, and their contracts with various manufacturers have provided the company with a competitive advantage. According to Soni (2014) Nike’s footwear and athletic wear are both manufactured outside of the U.S. by independent contractors. The company’s largest contractors manufactures nearly 34% of Nike’s production. Nike also has third-party licenses that allows other companies to use their trademarks. Inventory Management Inventory management is when an organization manages their inventory, assets, and stock. Inventory management is a strategy that both small and large organizations use in order to oversee, control and order product. It helps organizations remain prepared and organized. “In the early 2000s, Nike had some major inventory management problems” (Jagath, 2012). These problems had costed the company $100 million. Ever since this issue, the company has been implementing new inventory systems and software to help the
NIKE COMPANY ANALYSIS 22 organization. These systems help predict the products that would sell so that the organization is able to meet the supply and demand. Customer Service Good customer service is an essential component of a successful business. Providing the best customer services increases trust, satisfaction, and retention. According to Howlett (2013), Nike has world class customer service. Nike pays for thorough training in order to ensure that their employees are prepared and committed to displaying good customer service.
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