Change Management Strategies

Posted: March 27th, 2020

Change Management Strategies

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Change Management Strategies

Question One

Over the years, Nike has set a standard as one of the most profitable organizations across the globe. Initially, its business model consisted of innovative, low-cost shoe designs sourced from low-wage countries. Their knowledge of sustainability in the production and manufacturing of products was limited to the scope of performance that the organization would achieve. The rationale underlying such an approach relied on the perception that the organization was managing risk while steering its activities towards creativity and innovation. Nike envisioned a period where it would produce sustainable products within a closed-loop system. However, in the 1990s, the company encountered a challenge in meeting the social responsibility requirements, particularly regarding their labor practices. The strategy was among the initial steps that Nike took in a bid to build proactive business practices.

Secondly, Nike resolved to become tactically proactive because of the lack of proper communication between factory employees. Managers from Korea and Taiwan possessed different communication languages and approaches that limited the organization’s ability to pursue sustainable practices. Nike also realized that the corporate responsibility team did not recognize their top priority. Attention shifted significantly to the team purposing to understand their plan and any issues that may affect the organization. Environmental issues emerged in the corporate business environment in the 1990s warranting the need to develop programs and processes that would understand the challenges posed to the organization. At this point, Nike established a corporate responsibility committee that would delve into the issues.

Question Two

            The strategy changed Nike’s direction as an organization in various ways. One of the areas that succumbed to increased concentration was that of labor and employment. Nike changed its course by focusing on labor issues, mainly due to constant criticism surrounding its human resource practices in the previous years. The resolution included addressing the code-of-conduct violations and offering contracts to workers in factories. The approach led to the identification and isolation of individual labor violation cases and situations resulting from a larger pattern. Additionally, the organization sought to pursue transparency with its consumers beyond the policing stage. The method reconstructed Nike’s vision warranting the need to combine labor, environment, and community issues.

            Nike was able to restructure its business operations to meet the imminent need for corporate responsibility and performance. Among the elements that changed significantly included Nike’s inclination towards reaching the consumer and steering innovation towards the market. The restructure also focused on capitalizing the company’s expected development in emerging markets as well as instituting a robust cost structure. In order to achieve positive corporate responsibility outcomes, Nike cut off its workforce by five percent and fused its supply chain from that of a product type to the sporting category. The objective of such a concept was to increase the nature of responsibility that the company owed to consumers. Nike enhanced its organizational structure to include a finance employee within the Sustainable Business and Innovation team.

Question Three

            The benefits of Nike’s strategy included improved sustainability performance as well as enhanced innovation. It was possible to carry out oversight and audits on the current sustainability approach that Nike employed since its inception, providing a guideline on probable and beneficial ventures. The measure enhanced the nature of communication between teams and members of the organization, which is an essential component of any corporate responsibility venture. The reconstructed organizational structure also ensured that the firm experienced a smooth flow of information, particularly the audit reports issued by the committee. Acquisition of accurate, timely, and sufficient audit information enhanced the decision-making capabilities of the managers and the committee concerning new investments and new business models.

            One of the challenges that emerged from Nike’s business model was the identification of necessary resources and the recruitment of people capable of developing scalable solutions. Owing to an increase in the number of activities and investments that Nike was required to do, it was integral to recognize and commission capable and experienced people as well as equip them with sufficient resources that would enhance their success. Similarly, time was a significant challenge that the organization had to deal with considering the changes, which appealed to consumers significantly. Achieving sustainable business and innovation requires ample time that would ensure a planning committee creates structures and milestones that would enable assessment.

Question Four

While monitoring the response of workers and consumers was essential in spearheading the pursuit of corporate responsibility, Nike identified a scenario-planning effort that would initiate the search for useful labor aspects. The endeavor also provided an opportunity where the organization would evaluate the prospective outcomes of following certain trends in sustainability. Nike had to change its resource acquisition approaches, which included sourcing water from the Asia Pacific region. The business landscape was likely to experience water challenges warranting the need to identify transition points for business survival. Nike changed its strategic direction because of their analysis of the business environments and the underlying facts that surrounded commercial activities.

Nike modified its scenario-planning exercise into an employee-engagement program that assisted the company in identifying the effect of macro-trends on the business. Workshops became an essential component of the organization’s chart that facilitated the participation of employees in seminars. The facilities addressed concerns such as the upcoming trends in corporate responsibility by focusing on the impact of current trends on the company’s future. For instance, the workshop shed light on the challenges that the firm may experience in the long-term such as energy shortage, climate change, the role of the internet and governance issues. The workshops also sought to educate the employees on the importance of shared accountability while pursuing corporate responsibility. Each member was required to acknowledge their role in the overall process and work towards meeting the required standards.

Question Five

            Nike has shown increased interest in current patterns that affect potential business practices. The investment in these aspects has transformed its sense of direction, planning, and strategy to meet the consumer requirements on corporate responsibility. Some of the altered elements included the allocation of financial and human resources to the pursuit of sustainability. As such, Nike launched an inventory analysis of the social and environmental implications of its activities highlighting the areas that may provide value. Similarly, Nike sought assistance from experts in different disciplines relying on auditors from external organizations to evaluate the organization’s position on corporate responsibility. Innovation capabilities are essential to the future success of the organization. The approach led to an introduction of the Sustainable Business & Innovation Lab that the company would use as a venue to source sustainable advancements through technology. The lab would allow employees to assess closed-loop materials as well as manufacturing and revenue sources identified from scarce resources. The strategy was a significant aspect of the organization’s corporate responsibility ventures as it ensured that the firm focuses on the longer-term opportunities that may affect the organization in future.