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Virtualization Group control ?Virtualization Group control ?------ Analysis of Nike&#39;s management of Road Nike has a well-known myth: in the United States Beaverton, Oregon City, four-story can not see a pair of shoes Nike headquarters, employees are busy only do two things: one thing is a global marketing network The other thing is to manage its worldwide business. Not a production equipment, Nike Corporation to create a worldwide empire. A pair of Nike shoes, producers can only get a few cents of earnings, by virtue of its global sales, Nike Corporation was able to get dozens or even hundreds of dollars in profits. Nike as a company, but those who have outstanding cases upon which people may forget, in 1982, Nike had gone through a difficult phase, Adidas, Converse, Reebok larger rivals, sales decline sharply In many people&#39;s eyes, Nike is a &quot;setback, and internal morale of second-rate manufacturing.&quot; Nike&#39;s response is to decentralization, increased variety of products to promote the product line differentiation. From the original basketball shoes to the main changes to the golf equipment in recent years, family, and to Tiger Woods as a spokesman, while strengthening the promotion of soccer shoes to meet the population growth of football. Soccer Sporting Goods Series currently turnover has reached one billion U.S. dollars, 25% share of the global market in the European market as much as 35% market share. Under the change in management strategy, the company with 18 months the situation has stabilized, From 1993 to 1997, Nike&#39;s sales exploded, rising from 2 billion U.S. dollars to 90 billion dollars. Moreover, and many companies like Nike, accelerated expansion by acquiring other companies, following in 1988 after the Cole Haan Nike have acquired the company in 1995 acquired Bauer skates manufacturer company in 2002 acquired skateboard and clothing manufacturer Hurley International companies, and acquired in 2004, Converse shoes manufacturer company. Nike&#39;s strategy is to seek the acquisition of those products can complement each other, style similar to, and certain research and development capabilities of the enterprise, and to use the acquisition to suppress opponents. Nike&#39;s business in the present structure, Cole Haan shoes have already achieved sales of about 300 million U.S. dollars, while Nike was originally bought the company spent only 80 million U.S. dollars; The Converse company before the acquisition, sales volume has been declining, but after the acquisition, but there a 25% increase. Moreover, Cole Haan&#39;s Nike shoes just right into the shoes of advanced technology, such as Bauer and Hurley International companies have their own R &amp; D center, Nike introduced new, most are based on their professional design views, while just up the Nike Converse canvas shoes in the blank field. M &amp; A process, Nike also has committed many errors: After the initial buy Cole Haan, Nike wishful thinking to himself throughout in Cole Haan, and follows extensive management model, resulting in the latter strong dissatisfaction, when the conflict intensified, Cole Haan Nike managers even asked, &quot;get out of the factory.&quot; After realizing that their own mistakes, Nike, M &amp; A Group, the company adopted an open management style, a given its independence and autonomy. Nike timely feedback to the company guarantees to regain markets. Order and structure as a mode of business expansion, while Nike continues to transform the company into a large shoe department is divided into several smaller departments, each a kind of small departments in charge of sports shoes, speed up product of the development process. The entire operation of the business chain, Nike also be adjusted, especially the inventory control system and overseas sales system. Nike require dealers to be scheduled in advance 6-8 months 80% of its total sales, so as to give a 10% discount. This makes the situation well aware of Nike can order and have enough time to arrange, to avoid excessive inventory, save the card to get a good ex-factory price. In addition, Nike has adopted a production virtualization strategy, not all products manufactured by ourselves, but all outsourced to other manufacturers of processing. All company personnel, material, financial and other resources together to focus on investment in product design and marketing to foster the company&#39;s product design and marketing capabilities. Advantages of virtual enterprise is &quot;the greatest organization to achieve maximum power.&quot; An enterprise&#39;s own limited resources, organizational structure and function is limited, for the realization of a market strategy which consists of the virtual enterprise, each member of which only certain parts of the structure function as an information network in support of the spatial distribution for the virtual enterprise according to production complicated set up logistics for such a corporate structure and the traditional organizational structure than the structure of a larger cost advantages, greatly improved the competitiveness of enterprises. Implementation of virtual production, Nike will design drawings to the manufacturer so that they can carry out production strictly in accordance with drawing style, later branded by Nike, and products through the company&#39;s marketing network, our products sold. This model the full realization of the complementary role. Nike this strategy, saving a lot of productive investment and equipment acquisition cost of the production process will be outsourced to Southeast Asia and many developing countries, companies, use cheap local labor force, tremendous labor cost savings This is Nike shoes is able to lower prices to compete with other brands an important reason. ? Of course, we need to see is that the management of virtual enterprises there are many special factors: £ virtual enterprise the power line from the traditional system into a coordinated system of equality, from the traditional superior-subordinate relationship into an equal and harmonious relations. Virtual Enterprise Manager is no longer command the publisher, but the co-ordination, virtual enterprises are to play to its advantages, the need for knowledge management (KM), for the virtual enterprise and the related cooperation between units of knowledge mining development, preservation, sharing and other services, so that personal knowledge into organizational knowledge, to maximize the integration of resources. Meanwhile, the cultural conflict on the negative impact of virtual enterprise virtual enterprise globalization strategy will fail. Therefore, the creation of cultural synergy is particularly important. Face of uncertain, changing partners, how to avoid the lack of communication of information, cross-cultural, cross background, cross-regional communication and the success of virtual enterprise will play a crucial role. ? ?
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