Key Components of the Strategy Execution Process Read the overview below and com
ID: 374506 • Letter: K
Question
Key Components of the Strategy Execution Process
Read the overview below and complete the activities that follow.
In this exercise you will be asked to examine the effectiveness of Nike’s strategy execution. Be sure to read Chapter 10 before completing the exercise so that you understand the key actions involved in executing strategy.
When a company’s strategy fails, it is often due to poor execution. Even a brilliant strategy can fail if managers do not ensure that it is well-implemented. Proficient strategy execution depends foremost on having in place an organization capable of the tasks demanded of it. Building an execution-capable organization is thus always a top priority. As shown in Figure 10.2, three types of organization-building actions are paramount: (1) Staffing the organization—putting together a strong management team, and recruiting and retaining employees with the needed experience, technical skills, and intellectual capital; (2) Acquiring, developing, and strengthening the resources and capabilities required for good strategy execution—accumulating the required resources, developing proficiencies in performing strategy-critical value chain activities, and updating the company’s capabilities to match changing market conditions and customer expectations; and (3) Structuring the organization and work effort—organizing value chain activities and business processes, establishing lines of authority and reporting relationships, and deciding how much decision-making authority to delegate to lower-level managers and frontline employees.
If the strategy being implemented is a new strategy, the company may need to add to its resource and capability mix in other respects as well. But renewing, upgrading, and revising the organization’s resources and capabilities is a part of the strategy execution process even if the strategy is fundamentally the same, since strategic assets depreciate and conditions are always changing. Thus, augmenting and strengthening the firm’s core competencies and seeing that they are suited to the current strategy are also top priorities.
Case:
The foundation of Nike’s global sports apparel dominance lies in the company’s continual ability to out compete rivals by aligning its superior design, innovation, and marketing capabilities with outsourced manufacturing. Such a strategy necessitates a complex marriage of innovative product designs with fresh marketing techniques and a global chain of suppliers and manufacturers. Explore Nike’s most recent strategic management changes at http://news.nike.com/news/nike-announces-strategic-leadership-changes.
How well do these changes reflect the company’s focus on apparel innovation design and marketing strategies? Has the company’s relentless focus on apparel innovation affected its supply chain management? Do these changes – or Nike’s strategy, more broadly – reflect the company’s ubiquitous Swoosh logo and “Just Do It” slogan? Visit Nike’s corporate website for more in-depth information: http://about.nike.com/.
How have the recent organizational changes supported Nike’s strategic initiatives? Explain.
Explanation / Answer
All the leadership changes at Nike’s is reflecting the focus on apparel innovation and streamlined and innovative marketing strategies. Specifically, the leadership changes clearly focus on following areas:
There are changes in the leadership at the top, even at the level of Chief Operating Officer. The COO will now lead all the Procurement, Planning, Design, and Manufacturing and IT Procurement for the company.
This is emanating from the changes in Supply Chain and Procurement excellence that Nike is pursuing. This allows them to keep the costs competitive and coming up with new designs and faster go to market strategies. To achieve this objective, Nike has made the changes at the top leadership reflecting the portfolios restructured and realigned.
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