Question
Using your current work organization (or an organization of interest) and a second organization in the same industry as the subject matter, research the elements of business, compare and contrast the two selected organizations, and prepare an APA formatted paper that:
Analyzes the basic legal, social, and economic environment in which the organizations operate
Analyzes the managerial, operational, and financial issues impacting the organizations including:
Company Culture and Performance
Promotion Policies
Strategic Decisions Making
Decision-Making Style
Management Style
Leadership Style
Communication Style
Use of SWOT Tool
Operations Strategy Framework
Assesses how the overall management teams perform in terms of the four functions of management.
Identifies and explains the strong points of the managers.
Identifies and explains areas in which improvements are needed.
Answer
REAL WORLD SITUATIONS
There exist different sectors in a country all with a similar goal of contributing to the economic development and advancement of their host countries. The sports industry is one of the important industries in any country and the global market as well. The sports industry is a market in which person, activities, businesses and organizations as well companies involved produce, facilitate, and promote any activity, experience or business enterprise focused on sports. At times, the government is keen to nurture the talents of youths who solely focus on sports for economic gain. This assignment will largely focus on two giant sports companies in the world in the form of Nike and Adidas.
The worldwide sports industry consists of sports equipment, sports apparel, and footwear. The global sports industry is also growing as a result of advancement in technology given the fact that most athletes are in need of modern and better sports accessories. The globalization of markets, increasing trends in sports and sports activities has enabled the sports industry to expand at the global level with China becoming the leading market for the sports industry (Burgelman, 2016). The sports industries are involved in a range of transnational corporation which focuses on the design, manufacturing, production, distribution and marketing phases.
Nike Company Overview
Nike Inc. can be described as one of the leading sports industry in the world today. Established in 1968, the company has gone under significant revolution over the years to keep up with the ever-changing sports technology and needs. The company produces and manufactures important sports accessories such as footwear, apparel, equipment and accessory products. With its strong marketing strategy, the company has succeeded in stretching its reach globally by supplying its products worldwide. However, to remain at the top of the game, the company has diversified its product to suit different needs and requirements of players and coaches from all over the world. The company produces a couple of products such as Nike air, max air, zoom air, Nike Golf and Nike skateboarding.
Adidas Company Overview
Adidas is another sports giant company in the world today, having its existence globally. Moreover, Adidas is the main competitor of Nike and their competition intensified when Adidas acquired Reebok. The company is committed to becoming the global leader in the sporting goods industry with sports brands built on a passion for sport and sporting style. Some of the famous brands of Adidas include Reebok, Rockport, and Taylormade (Brohi, 2016). Unlike Nike, Adidas makes a strong move in understanding its customers and work on different strategies so as to capture the market. Moreover, the company follows a multi-brand strategy to reach maximum customers and build a positive relationship with brands.
Environmental Analysis of Nike and Adidas
Being multinationals and in the global market, both companies have to adhere to the laws, rules, and regulations of the countries in which they operate. Often, Adidas is governed by the European rules and laws while Nike is often governed by federal rules and regulations. On the same note, these companies have to respect and honor their tax obligations as well as import and exercise duties in their host nations.
Social Environment of the Companies
Due to the new trends in the market where customers are becoming more brand conscious and prefer branded products over other products available in the market, both companies has put uncountable efforts in branding their products as well as promoting them. It is also worth noting that sports customers’ preferences are changing into more fashion-oriented forcing these companies to focus more on fashion rather than only the products they produce (Angeles, 2014). The technological advancement and the increased use of e-commerce and internet have made the consumer’s information oriented.
Financial Performance
The financial performance and the profitability of both companies depend on the demand of sports goods across the globe. However, Nike is a better performing compared to Adidas because it has successfully maintained its place in top world largest companies and it is penetrating even to remote areas across the world to supply sportswear. Nike’s profitability has been on the rise in recent years as it increases its promotional activities and association as well as collaboration with sports teams across the globe.
Managerial Issues
Both companies have been heavily investing in innovation as their faith in the optimum use of technology seems to finally pay. They both have adopted the participative style of leadership, especially Nike where has a decentralized structure, unlike Adidas (Payne, 2015). They also plan the pay scale of the performance of their employees is prompting them to put extra efforts towards the achievement of the organization goals and objectives.
Some of the notable strengths of these companies are their large markets considering that they sell their products and services globally as well as their strong brands. However, a notable weakness of both companies is the fact that large of their incomes and profitability is dependent on the market share they have in the sports industry (Blery, 2014). Moreover, the companies have an opportunity not only to produce sportswear but also other products such as jewelry, watches, and sunglasses with their logos. Finally, the major threat in this industry is competition from other sportswear companies around the globe.
References
Angeles, R. (2014). Using the Technology-Organization-Environment Framework for Analyzing Nike’s “Considered Index” Green Initiative, a Decision Support System-Driven System. . Journal of Management and Sustainability, 4(1), , 96.
Blery, E. K. (2014). Marketing Footwear: A Case Study from Greece. . Research in Business and Management, 1(1), , 90-104.
Brohi, H. K. (2016). Strategic Marketing Plan of Nike.
Burgelman, R. A. (2016). Complex Strategic Integration at Nike: Strategy Process and Strategy-as-Practice Combined. The Handbook of Strategy Process Research from a Middle Management Perspective. Edward Elgar Publishing.
Payne, A. M. (2015). The Effects of the Internet on Marketing.
