Nike: The Corporate Strategies

The Corporate Strategies Student’s Name Institutional Affiliation Date Introduction Nike is a privately owned company that is known for producing and selling shoes and apparel across the world. Nike was founded by Phil Knight and Bill Boverman in 1962 in Oregon, USA. Since then the business has been run as a wholesaler and retailer of shoes in 100 countries across Europe, Asia, and America . Like any other company Nike has since been faced by competition from other producers of shoes across the world. However the competitors have adopted slightly different strategies from those of Nike. Corporate strategies A corporate strategy is the overall coverage and directionof a corporation and the way in which its departments are organized and structured for attainment of its objectives. Any given corporate has adopted a corporate strategy because it acts as a guideline in giving way for any given corporate. Various corporate strategies have been put in place by different Nike. They include the following; Functional strategy This is a strategy which explains the various functions of a corporate .Functional strategy is adopted by all the corporate .functional strategy include * Finance strategy-This strategy entails the various sources of finance the corporate. They may be the external sources or internal sources of finance. One of the sources of finance for Nike is debt finance. Debt finance is where Nike getting the finance from borrowing from the individual or from the government for its operations. The corporate may also get the finance from the sale of the assets. This helps them to have a competitive advantage over competitors. * Research strategy-this is a strategy the Nike uses to do its research in the market. It conducts the research in the market to find out the tastes and preferences of the customers, the demands of the customers as well as finding out whether their satisfaction is reached .This greatly assist them to counter competition from other competitors. * Manufacturing strategy-this involves Nike the line of the commodity they are going to produce , in what volume they are going to produce and the quality of the product they need to produce to the market to avoid losses, Nike has chosen right hence no losses. * Human resource strategy-this is a strategy the Nike is using in coming up with the employees of the company. It determines the skills the company needs their employees to have, the experience they need during recruitment as well as the knowledge. The benefits of functional strategy include: * Tasks are assigned to the employees with the best knowledge and experience therefore bringing about efficiency and quality production in Nike. The cons of this functional strategy include; * Managers can lose direction of the main goals of the business of Nike * There may raise a situation where the main corporate strategy is not in line with the minor strategies Nike. Stability strategy This is a strategy that is used by the Nike whenever it is doing well in the market. It means that Nike is stable and much of the operations need not to be changed in the business. The only thing that can be done while adopting the stability strategy is the increasing the level of efficiency .Stability strategy is usually adopted by small companies which are satisfied with the status quo.The stability strategy can be adopted where the business has decided to be in the same market, produce the same kind of commodities, and serve the same objectives. The pros of this specific strategy include the following; * Nike does not incur the expenses that are relating to change easily therefore saving a lot * Nike is normally concerned with growth since it is stable and makes a good profit. The cons of this stability strategy include; * Stability strategy is usually not fit for large organizations as there are great number of changes taking place within the business; they usually use it under certain circumstances. Competitive strategy This is a strategy that is used by the Nike which is need of gaining the competitive advantage over others in the market. It involves those companies that trade in the products that can be used for the same ...