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Virtualization Group control


									Virtualization Group control
?Virtualization Group control
         ?------ Analysis of Nike'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's eyes, Nike is a "setback, and internal
morale of second-rate manufacturing."
Nike'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'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'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'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's Nike shoes just right into the shoes of
advanced technology, such as Bauer and Hurley International companies
have their own R & 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 & 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, "get out of the
factory." After realizing that their own mistakes, Nike, M
& 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's product
design and marketing capabilities.
Advantages of virtual enterprise is "the greatest
organization to achieve maximum power." An
enterprise'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'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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