Sunday, May 17, 2020

Operation Management of Nike Essay - 2231 Words

Operation management Nikes Operations management concerned about forecasting, controlling, designing, operating, and scheduling business operations in the production of Nike foot ware. Its excellent management that has been developed and ameliorated during the long term operation has enabled that business operations to be efficient and at the same time using as few resources as required. It is also effective in terms of satisfying customer demands, and thus it has become one of the key issue that Nike develop prosperously despite the fierce competitions with other foot ware giants such as Adidas, Reebok, Puma, etc. The operation management system includes manufacturing and production systems, equipment maintenance management,†¦show more content†¦A comprehensive monitoring tools were developed based on this management regulation. They hired compliance specialists in order to help, estimate and monitor all the contract factories in 51 different countries and conducted factory audits. The method h elped increase the companys reputation, added glory to the brand, and as a result become incentive of sales. The protection to worker is not only humanistic but also beneficial to the company. With the increase of staff salary, some of them would be more willing to buy Nike products that they may not be able to buy before, and may be more willing to promote the brand to their friends and relatives. Nike is almost a virtual company, as the company itself doesnt produce a single pair of shoes itself. All of the production activities, from design, production, storage to sales, are outsourced to the contract companies. However, it is the spirit, and the head quarter of the whole production. Such management strategy has greatly reduced labour cost, and this is one of the major reason why Nike shoes can compete with other famous or local foot ware brands at a relative low cost. Hence, the core competivity of the virtual company is its management. 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