Name – Ms.

Thu Thu Myat Noe

Module Name – Module-1 : Human Resource Management

Email – thuthumyatnoe.ttmn@gmail.com

Ph.no – 09-450064254

Batch – PHRMD-04-01
 I would like to present the organization “Nike” can achieve a connection between its business strategy and human resource
management.

 Nike is an American-based multinational company that is involved in the design, development, production, and global
marketing of sportswear, apparel, and sports equipment and services. The company’s main offices are in Beaverton,
Oregon. The company is the largest supplier of apparel and sports shoes in the world with a world market share of 37
percent. The company specializes in reputable brands such as Nike and Jordan brands, which offer products for a wide
target market, including runners, basketballers, footballers, and gym-goers. The company is also involved in the
manufacture of sports equipment such as bags, eyewear, gloves, and golf clubs among others.

 Firstly, Business Strategy link with HRM that I would explain.

 A business strategy is the combination of all the decisions taken and actions performed by the business to accomplish
business goals and to secure a competitive position in the market.

 It is the backbone of the business as it is the roadmap which leads to the desired goals. Any fault in this roadmap can result
in the business getting lost in the crowd of overwhelming competitors
 Importance Of Business Strategy

 Planning: Business strategy is a part of a business plan. While the business plan sets the goals and objectives, the strategy
gives you a way to fulfil those goals. It is a plan to reach where you intend to.

 Strengths and Weaknesses: Most of the times, you get to know about your real strengths and weaknesses while
formulating a strategy. Moreover, it also helps you capitalize on what you’re good at and use that to overshadow your
weaknesses (or eliminate them).

 Efficiency and Effectiveness: When every step is planned, every resource is allocated, and everyone knows what is to be
done, business activities become more efficient and effective automatically.

 Competitive Advantage: A business strategy focuses on capitalizing on the strengths of the business and using it as
a competitive advantage to position the brand in a unique way. This gives an identity to business and makes it unique in the
eyes of the customer.

 Control: It also decides the path to be followed and interim goals to be achieved. This makes it easy to control the activities
and see if they are going as planned.
 Business strategies can be classified into three levels –

Level 1: The Corporate Level

 The corporate level is the highest and most broad level of the business strategy. It is the business plan which sets the
guidelines of what is to be achieved and how the business is expected to achieve it. It sets the mission, vision, and corporate
objectives for everyone.

Level 2: The Business Unit Level

 The business unit level is a unit specific strategy which differs for different units of the business. A unit can be different
products or channels which have totally different operations. These units form strategies to differentiate themselves from
the competitors using competitive strategies and to align their objectives with the overall business objective defined in the
corporate level strategy.

Level 3: The Functional Level

 The functional level strategies are set by different departments of the units. The departments include but are not limited to
marketing, sales, operations, finance, CRM etc. These functional level strategies are limited to day to day actions and
decisions needed to deliver unit level and corporate level strategies, maintaining relationships between different
departments, and fulfilling functional goals.
A strategic plan is the company’s overall plan for how it will match its internal strengths and weakness with it’s external
opportunities and treats in order to maintain a competitive position.

SOSTAC

 Situation – where are we now?

 Objectives – where do we want to be?
 Strategy – how do we get there?
 Tactics – how exactly do we get there?
 Action – what is our plan?
 Control – did we get there?
 
PESTEL Analysis is a strategic framework used to evaluate the external environment of a business by breaking down the
opportunities and risks into Political, Economic, Social, Technological, Environmental, and Legal factors.
Understanding Porter's Five Forces
• Porter theorized that understanding both the competitive forces at play and the overall industry structure are crucial for
effective, strategic decision-making, and developing a compelling competitive strategy for the future.
In Porter's model, the five forces that shape industry competition are
1. Competitive rivalry
• This force examines how intense the competition is in the marketplace. It considers the number of existing competitors
and what each one can do. Rivalry competition is high when there are just a few businesses selling a product or service,
when the industry is growing and when consumers can easily switch to a competitor's offering for little cost. When rivalry
competition is high, advertising and price wars ensue, which can hurt a business's bottom line.
2. The bargaining power of suppliers
• This force analyzes how much power a business's supplier has and how much control it has over the potential to raise its
prices, which, in turn, lowers a business's profitability. It also assesses the number of suppliers of raw materials and other
resources that are available. The fewer supplier there are, the more power they have. Businesses are in a better position
when there are multiple suppliers. Learn more about finding suppliers and B2B partners.
3. The bargaining power of customers
• This force examines the power of the consumer, and their effect on pricing and quality. Consumers have power when they
are fewer in number but there are plentiful sellers and it's easy for consumers to switch. Conversely, buying power is low
when consumers purchase products in small amounts and the seller's product is very different from that of its competitors.
4. The threat of new entrants
• This force considers how easy or difficult it is for competitors to join the marketplace. The easier it is for a new competitor
to gain entry, the greater the risk is of an established business's market share being depleted. Barriers to entry include
absolute cost advantages, access to inputs, economies of scale, and strong brand identity.
5. The threat of substitute products or services
• This force studies how easy it is for consumers to switch from a business's product or service to that of a competitor. It
examines the number of competitors, how their prices and quality compare to the business being examined, and how
much of a profit those competitors are earning, which would determine if they can lower their costs even more. The threat
of substitutes is informed by switching costs, both immediate and long-term, as well as consumers' inclination to change.
Learn how to perform a competitive analysis to stay ahead of other players in the market. To take full advantage of this
strategy make sure you're able to properly calculate cost of goods sold (COGS).
• Nike’s commitment to growing the potential of its people and building leadership capability is carried out in organization
and talent reviews directly linked to the business strategic priorities.
• In these reviews, leaders are held accountable for improving the performance, potential, diversity, position continuity and
cost of their bench.
• Nike’s supply chain is taking a lead on a new transformation.
• Working with contract manufactures to apply learn manufacturing, an approach that delivers the highest- quality product
while eliminating all types of waste, including lost time and material.
• Nike’s approach to learn includes worker empowerment- giving factory workers the skills and abilities needed to manage
production and immediately address issues as they arise, such as quality or process improvements.
 
• Nike’s business environment is constrained in terms of uncertainties in human and natural resources.
• Consequently, the firm engages in manufacturing outsourcing to lower costs as its main business model.
• However, this strategy raises various corporate and ethical issues.
• For example, Nike faces challenges of being accused of collaborating with manufacturing organizations in low-labor-cost
nations to produce its products with child labor and exploitation of employees by working under sweatshop conditions.
• Despite the company’s high financial performance and market leadership and focusing on the US geographical market
segment, the current paper confirms that Nike needs to adopt changes in its operations, including policy development, to
address manufacturing outsourcing and diversification in a manner that enhances its business continuity and sustainability
in the next 5 to 10 years.
The Rational of the Strategic Analysis

• Nike expects changes in the prices of oil, climate, the rising population, and uncertainties in the supply of natural and human
resources to influencing its business and customers.
• Nike Inc. (2016) reveals, “As the world moves to a low-carbon economy, we see the potential impact on labor forces, working
conditions, communities, development, youth, sport, supply chains, products, and more” (Para.4).
• Hence, the organization needs to develop an actionable strategic plan to guarantee business continuity in the next 5-10 years.
The main challenge for Nike’s future is doing business in a dynamic environment. Addressing the challenge requires the
development and implementation of sustainability strategies (Bakari, 2014; Desjardins, 2016).
• How should such strategies look like?
• What changes are required for Nike’s business model to ensure it achieves sustainability as its primary gate to future
profitability?
• Responding to these questions forms the rationale of conducting the strategic analysis for Nike Inc.

Research Method and Design

• The current research uses both numerical non-numerical data.

• Therefore, it is designed to use the mixed-method approach. The paper uses Nike’s website and other reliable websites in
supporting various ideas that are developed from data collected from scholarly articles.
• Search for various scholarly articles on strategic analysis and Nike inc. information, including financial performance and
corporate level and business strategies is conducted through the web and academic libraries.
• Consulted databases include EBSCOhost, EMERALD, and PROQUEST.
Data Collection and Data Analysis

• Data will be collected by searching for information from academic sites such as EBSCOhost, EMERALD, PROQUEST, and the
internet.
• However, to guarantee the reliability of data, especially information, which is collected through the internet, only data from
the Nike Inc. website and other reliable platforms is used to conduct the strategic analysis.
• The paper deploys the SWOT matrix, the IFE matrix, Porter’s five forces, the EFE matrix, CPM, and the SPACE matrix to analyze
the data collected.
• The first search term is www.nike.com.
• The search terms, business continuity, corporate responsibility, sustainability, strategic management, and strategic analysis
approaches will be keyed in the academic databases.

The Strategic Position and Action Evaluation

• The process of determining the strategic position of Nike and evaluating the necessary actions requires the application of
various strategic management matrices. The IFE and EFE matrices are strategy formulation tools that help in the analysis of
internal strengths and weaknesses of Nike Inc.
• The CPM facilitates in making comparisons between Nike and other players in its industry.
• The SWOT matrix helps in the analysis of internal capabilities to deal with the external conditions of Nike’s Business
environment. However, it is necessary to analyze various forces that shape Nike’s business industry through Porter’s five-force
approach.
• The SPACE matrix is important in helping to determine the appropriate set of strategies that Nike needs to purse to guarantee
success in the next 5-10 years.
Porter’s Five Forces

Entry Barriers

• Despite the high potential of new entrants in the footwear industry, Nike faces a low threat of new entrants.
• The company sells high-quality athletes’ footwear. Adidas and Nike possess large-scale operation, which has an effect on
effective cost management in terms of ensuring long-term competitive advantage.
• They have powerful brand identities, although the industry is relatively easy for other manufacturers to join.
• For example, Bata India developed its athletics wear brand, which continues to grow strongly.

Buyers’ Bargaining Authority

• Nike faces high customer bargaining authority.

• The company’s business production has many clients who have a wide range of brands to select.
• Therefore, Nike struggles in differentiating its products. It deploys innovative strategies for successful market differentiation.
This plan is necessary to “establish brand identity, essential to attract and retain the target consumer” (Burke, Van Stel, &
Thurik, 2010, p.28).
• In Nike’s new markets, price-sensitive customers are likely to switch between brands, depending on cost competitiveness
and brand loyalty.
• The buying trend situation has also changed over the last decade with a clear increase in women who exert a high
bargaining power by purchasing athletic wear.
Supplier’s Bargaining Authority

Nike’s business industry has a low bargaining power of suppliers. Resources such as rubber and cotton that are used in the
business are accessible. Conglomerates exert intense pressure on suppliers due to the standardized procedures that guide their
inputs. The companies in the industry, including Nike, easily switch between suppliers who depend mainly on the materials
they supply for their survival. This situation makes supplier bargaining power almost negligible.

Threat of Substitutes

Footwear has no real substitute. The only substitute may result from fashion adjustment. However, this situation may not exert
pressure on Nike. Sportswear materials must meet performance specifications, which the wearer has to comply with. This case
lowers the ability of the purchaser to switch to any substitute.

Competitors’ Rivalry

Contention among the opponents is significant in the footwear business. The major competitors, whose brands have incredibly
grown, include Puma, Adidas, and Reebok. These brands offer a range of choices for high-profile sporting personalities who put
a high endorsement for them. This situation, which increases competitors’ aggressiveness in marketing their brand, threatens
to erode Nike’s market share. The fact that the industry has fierce competition makes product differentiation is incredibly
important for Nike. This case underlines the importance of integrated communication in marketing for Nike’s brand to enhance
the organization’s already existing strong brand.
SWOT Analysis of Nike
Here’s a detailed breakdown of Nike SWOT analysis. 

Nike’s Strengths – Internal Strategic Factors

Strong Brand Awareness and Brand Value– Nike is one of the most recognizable brands in the world as its name alone is
memorable, easy to pronounce, and very unique. Its swoosh symbol is easily recognized by everyone. According to
Interbrand, Nike has a brand value of $42.5 Billion.  
Huge Customer base – Nike has millions of customer from around the world who loyally follow Nike’s trends, participate in
Nike events, and even provide customer feedback. Due to its huge popularity, Nike’s market cap has grown to $232
billion as of Jan 2022.
Aimed For Sustainability – Nike’s CEO Mark Parker has addressed that they will continue to acknowledge the environmental
issues in the communities. The CEO ensures that Nike will help to contribute in finding a solution against these
environmental issues.
Iconic Relationships – Nike’s long-term partnership with Michael Jordan has proved to be beneficial in terms of sales for the
company. Their collaboration resulted in “Air Jordan 1 Shoes”. Additionally, Nike teamed up with the famous basketball
player to help design the “Air Jordan 1 Shoes”.
Side Brands – Nike’s ability to maintain and enhance its side brands such as converse and Hurley have enabled it to enjoy
unparalleled success for decades.
Low Manufacturing Cost – Most of Nike’s footwear is manufactured in foreign countries. In the fiscal year 2021, Vietnam
produced 51%, China produced 24%, and Indonesia produced 21% of total Nike’s footwear. Other operations are in
Argentina, Brazil, India, Italy, and Mexico.
In-house Professionals – Nike has a team of professionals that design its shoes and other athletic accessories. Nike believes
that their business has flourished due to the thorough research that is conducted for each product.
Superior Marketing Capabilities – Nike has excellent marketing campaigns. The brand heavily relies on demand creation
expense, which includes advertisement, promotion, endorsement contracts, media print and complimentary products. In
the fiscal year 2019, 2020 and 2021, Nike spent $3.7 billion, $3.6 billion and $3.1 billion  respectively. The brand has
successfully utilized social media and marketing campaigns to target more customers.
Black Community Support – The brand has excellent marketing campaigns and recently released “Don’t Do It” ad campaign in
support of Black communities against racism.
High Market Share – Nike is a market leader in footwear industry. Nike has captured approximately 39% of the global athletic
footwear market and 13% of global athletic apparel market.
Nike’s Weaknesses – Internal Strategic Factors
Poor Labor Conditions in Foreign Countries – In the last 20 years, Nike has been consistently targeted regarding their poor
labor conditions. These issues include forced labor, child labor, low wages, and horrific working conditions that were
deemed “unsafe”.
Retailers Have a Stronger Hold – Nike’s retail sector makes Nike weak due to its sensitivity against pricing. 65% of Nike
products are sold directly to wholesalers or retailers. With retailers serving as their core customers, Nike does not put up a
fight against their pricing structures whatsoever.
Pending Debts – Although Nike’s income statements prove to be prosperous, a quick glance at their balance sheet could paint
a different picture. Nike is still facing financial threats. Nike’s total long term debt was $9.4 billion
Dependency on US Market – Even after having established itself globally, Nike still relies on the U.S Market in terms of sales
and revenue. In the fiscal year 2021, about 39% of Nike’s sales came from the North America, while the rest of 61% came
globally. Despite its fame, Nike depends on the U.S for substantial sales and growth.
Lawsuits: 
o Recently, a former employee accused Nike of discrimination based on his Croatian origin.
o Four former female Nike employees filed a class-action lawsuit against the company in August 2018. According to
these women, Nike has a toxic company culture for women. The women filed their case against the sportswear
company claiming that the company violated the Equal Pay Act. The women said the company engaged in systematic
gender pay bias where men were paid more than women for the same amount of work.
Lack of Diversification: Nike’s over-dependence on sporting apparel or lack of diversification is a major weakness. The
pandemic has discouraged physical interaction and gathering with sporting events canceled or postponed. Several sporting
teams are on the brink of collapse. If the crisis discourages sporting events for longer, Nike’s losses can be catastrophic.
Contradicting Strategies: Nike pledged to shift all its facilities to 100% renewable energy with net-zero carbon emissions under
the “Move to Zero” scheme. While the strategy is great and welcomed, it contradicts Nike’s strategy that favors innovation
over sustainability. This creates the perception that Nike is not committed to addressing climate change and its pledge is
just a marketing stunt.
Sexual Harassment: Former female employees also pointed out that sexual harassment and misconduct was very common in
the company. The New York Times conducted interviews with 50 former and present Nike employees to investigate the
company culture. Through the interviews, it was established that Nike did have a toxic working environment, where sexual
misconduct was rampant.
Multiple female employees reported that they had complained to the HR but saw no action being taken from their part. The
women were left devastated and felt unsafe while working at Nike. Some even left their jobs. The entire controversy has
significantly affected the company’s image.
Nike’s Opportunities – External Strategic Factors
Emerging Markets – Although Nike already has a presence in many foreign countries, there is still plenty of opportunities for
Nike. This is because emerging markets like India, China, and Brazil are gradually flourishing.  
Innovative Products – Although Nike has produced many products, there is still a lot to innovate. Nike has extended its reach in
technology in association with fitness and health. Products like wearable technology that monitors physical activities, is the
first step in building innovative technology products. Combining technology with athletic wear can prove to be beneficial as it
is an aspect of the fashion industry that still hasn’t been explored much.
Efficient Integration – The supply and production of Nike’s products depend on independent manufacturers. The brand can
either acquire a few of these or make some of its own for a more efficient and streamlined supply chain.
Cutting ties with big retailers: Nike has decided to cut ties with some of the biggest multi-brand retailers and wholesale
partners. According to the report, Nike will no longer work with wholesale retailers such as Zapoo’s, Dillard’s, Fred
Meyer, Bob’s Stores, etc. The step is taken for better product positioning and greater customer experience.
Acquired Artificial Intelligence Start-up – With its vast financial resources, Nike can acquire small or medium companies or
startups. It recently acquired predictive analytics platform – Collect to expand its online sales capabilities and predict
customer’s shopping behavior.
Merges with the Metaverse –  Recently, Nike acquired RTFKT, a digital shoe-making company. Yes, you heard that right, the
company designs shoes, but for the virtual stratosphere only. However, RTFKT also claimed that it partnered with a young
artist to sell real shoes along with their digital versions. Nike is banking on the opportunity to market their digital shoes on
the Metaverse, where players can use their Meta mask wallets to purchase different types of in-game merchandize.
Exiting From Wholesale Distribution –  Recently, Nike announced it’s going to be exiting the wholesale distribution market in
the U.S. The company plans to only market its products at Nike stores, app, and websites. According to Nike, the move away
from distributors is going to help them double their profit margins. Moreover, Nike will also have the opportunity to
spearhead the customer shopping experience as well as control prices.
Consumer Direct Strategy –  Nike has accelerated the consumer-direct strategy, which means shifting its focus to digital
business and subsequently closing physical stores. In fiscal year 2021, 38.7% of its Nike brand revenue comes from online
sales. Clearly, the pandemic is shaping up how Nike interacts with its customers. 

Nike’s Threats – External Strategic Factors

Counterfeit Products – Counterfeit products can significantly affect the revenue and reputation of Nike. The company deals
globally and the risk of counterfeit products has become higher. A number of merchandisers and retailers offer counterfeit
Nike products at lower prices. The low-priced products are made from low-quality materials but still have the Nike label.
This can tarnish the image of the brand as the customers might feel that Nike has started producing low quality products.
Increased competitive pressure – Although, Nike is a dominating the athletic industry, competition, and new emerging brands
are still potential threats to the company. With higher competition ratio, Nike has to spend more money on marketing and
advertising. Nike spent $3.5 Billion specifically on marketing and demand generation in fiscal year 2020. To overpower
competition, Nike’s safest bet is to design innovative products that are tailored according to the needs of athletes.
Marketing Budget Pressure – Companies like Under Armour , Adidas and Lululemon are spending more on marketing and
advertising campaigns, increasing the pressure on Nike.
Currency Foreign Exchange Risks – Since the brand operates globally, it is affected by fluctuating foreign exchange rates. Nike
reports its financial earnings in U.S dollars. This affects its revenue as the U.S dollar is exposed to volatility against other
financial currencies.
Patent Disputes – Regardless of whether a company is wrong or right, patent disputes are hotly and fiercely contested in the
public domain and expose some dirty secrets about sides in the dispute. Nike and Adidas have been engaged in a fierce
patent disputes over Primeknit and Flyknit shoes in U.S. and German courts.
Economic Uncertainty – Regardless of the industry, all companies are susceptible to the negative effects of a global recession.
Already, Nike has registered a 38% decline in sales in Q2 of 2020 and can drop further in the future if the recession strikes
as hard as predicted by experts.
Trade Tensions – Nike depends on different markets across the world evidenced by the recent increase in its stocks rallied by
an increase in sales in China. With China and the US as its biggest markets, a large chunk of Nike’s sales will be threatened
if the trade tensions between the two giants escalate.
Patent Conflict towards Adidas Primeknit Shoes –  In an appeal to a U.S. agency, Nike filed a complaint that Adidas has been
infringing on the company’s Flyknit shoe technology patent. The company also stated that the German shoe manufacturer
had used Nike’s Flyknit tech in 49 shoe designs (which uses Primeknit tech). However, according to an Adidas
representative, the company will fight these claims and stated that Adidas has started using their Primeknit technology
after numerous years of research and development. 
Risk to Kangaroo Population –  Nike has been accused of putting the Australian kangaroo population at risk of extinction. The
leading athletic brand uses kangaroo skin to manufacture leather football shoes. Animal rights activists and advocates
have urged Nike to rethink its strategies and to use plant-based alternatives. So far, Nike hasn’t responded to these
Final Thoughts
• The fiscal 2021 proved to be successful for Nike, despite the pandemic. Although the brand is still in debt, the next few
years look promising. Nike has grown exponentially in the last decade.

• From releasing new product lines to building new brands, to outsourcing, and establishing a global presence alone is an
extraordinary achievement.

• Through this SWOT analysis of Nike, you will be able to understand the business model of the brand.

Human Resource Planning

• Human resource planning (HRP) is the continuous process of systematic planning ahead to achieve optimum use of an
organization's most valuable asset—quality employees. 
• Human resources planning ensures the best fit between employees and jobs while avoiding manpower shortages or
surpluses.
• There are four key steps to the HRP process.
• They include analyzing present labor supply, forecasting labor demand, balancing projected labor demand with supply,
and supporting organizational goals.
• HRP is an important investment for any business as it allows companies to remain both productive and profitable.
Challenges of Human Resource Planning
• The challenges to HRP include forces that are always changing, such as employees getting sick, getting promoted, or going
on vacation.
• HRP ensures there is the best fit between workers and jobs, avoiding shortages and surpluses in the employee pool.
• To satisfy their objectives, HR managers have to make plans to do the following:

Find and attract skilled employees.

 Select, train, and reward the best candidates.
 Cope with absences and deal with conflicts.
 Promote employees or let some of them go.
Investing in HRP is one of the most important decisions a company can make.
• After all, a company is only as good as its employees, and a high level of employee engagement can be essential for a
company's success.
• If a company has the best employees and the best practices in place, it can mean the difference between sluggishness
and productivity, helping to lead a company to profitability.

Steps to Human Resource Planning

• There are four general, broad steps involved in the human resource planning process.
• Each step needs to be taken in sequence in order to arrive at the end goal, which is to develop a strategy that enables the
company to successfully find and retain enough qualified employees to meet the company's needs.
Analyzing Labor Supply

• The first step of human resource planning is to identify the company's current human resources supply.
• In this step, the HR department studies the strength of the organization based on the number of employees, their skills,
qualifications, positions, benefits, and performance levels.

Forecasting Labor Demand

• The second step requires the company to outline the future of its workforce.
• Here, the HR department can consider certain issues like promotions, retirements, layoffs, and transfers—anything that
factors into the future needs of a company.
• The HR department can also look at external conditions impacting labor demand, such as new technology that might
increase or decrease the need for workers.

Balancing Labor Demand With Supply

• The third step in the HRP process is forecasting the employment demand.
• HR creates a gap analysis that lays out specific needs to narrow the supply of the company's labor versus future demand.
This analysis will often generate a series of questions, such as:
• Should employees learn new skills?
• Does the company need more managers?
• Do all employees play to their strengths in their current roles?
Developing and Implementing a Plan

• The answers to questions from the gap analysis help HR determine how to proceed, which is the final phase of the HRP
process.
• HR must now take practical steps to integrate its plan with the rest of the company.
• The department needs a budget, the ability to implement the plan, and a collaborative effort with all departments to
execute that plan.
• Common HR policies put in place after this fourth step may include policies regarding vacation, holidays, sick days,
overtime compensation, and termination.

Special Considerations

The goal of HR planning is to have the optimal number of staff to make the most money for the company.
Because the goals and strategies of a company change over time, human resource planning is a regular occurrence.
Additionally, as globalization increases, HR departments will face the need to implement new practices to accommodate
government labor regulations that vary from country to country.
The increased use of remote workers by many corporations will also impact human resource planning and will require HR
departments to use new methods and tools to recruit, train, and retain workers.
HR Planning

• Integrating human resource management strategies and systems to achieve the overall mission, strategies, and success of
the firm while meeting the needs of employees and other stake-holders.
• HR Planning helps you successfully meet goals.
• Assess skill sets, and keep up with social, economic, legislative, and technological trends that impact on HR in your area
and in the sector.
• Links management directly to the strategic plan of your organization Nike routinely completes financial and workforce
plans to ensure they achieve goals.

• Nike has 3 step strategy that they have had implemented for about 3 years now.

1. Be innovative to deliver enterprise level sustainability solutions

2. Integrate sustainability into the heart of the Nike business model
3. Mobilize key constituents (civil society employees, consumers, government) to partner in scaling solution

A Good HR policy

• Minimize the cost associated with high employee turnover

• Improve retention of skill, knowledge, motivation and morale, which in time impact productivity
• Give employees job security and money in their pockets
• Give employees opportunities- to learn new skills and gain more knowledge
Recruitment

• Recruitment is a process of finding and attracting the potential resources for filling up the vacant positions in an
organization. It sources the candidates with the abilities and attitude, which are required for achieving the objectives of an
organization.
• Recruitment process is a process of identifying the jobs vacancy, analyzing the job requirements, reviewing applications,
screening, shortlisting and selecting the right candidate.
• To increase the efficiency of hiring, it is recommended that the HR team of an organization follows the five best practices

• These five practices ensure successful recruitment without any interruptions.

• In addition, these practices also ensure consistency and compliance in the recruitment process.

There have two recruitment Method:

• Internal Recruitment and External Recruitment.
• Existing Nike employees can view job openings on the internal web and apply direct to the SSC resourcing center
electronically.
• Active recruiter then handles the application Process from receipt to job offer. The key stages in the Process are detailed
below:
• A job request is received from the employing department and this is discussed with the central resourcing team.
• A job requisition is completed and approval sought if it involves a new position of additional headcount.
• Once finalized the job is posted on the system and applications are invited from internal and external candidates as
appropriate.
• A Shortlist is produced from the system, sent to the line manager.
• The introduction of active recruiter into the business provides a number of avenues for people to apply for jobs at Nike
External applicants can apply direct to the Nike internet site for specific jobs or for more general speculative job
opportunities.
• Electronic links have been established with external web-based recruitment organization such as Monster board to provide
further job postings opportunities to attract candidates to Nike More conventional resourcing processes are also used
including newspaper advertising.
Selection

• The selection process can be defined as the process of selection and shortlisting of the right candidates with the necessary
qualifications and skill set to fill the vacancies in an organization.
• The selection process varies from industry to industry, company to company and even amongst departments of the same
company.

The selection process should be:

• Transparent
• Timely and cost effective
• Equitable
• Free from conflict of interest

• All recruitment will be based on agreed job descriptions and person specifications.
• Recruitment and selection must be conducted as an evidence-based process and candidates should be assessed against
agreed selection criteria, based on relevant knowledge, skills, competencies, experience and qualifications to perform the
role as outlined in the person specification.
• All decisions must be recorded.
• Short listing must be undertaken by at least two individuals who are involved in the interview process.
• Interview should normally be conducted by at least two people, and all interviews for one post must be conducted by the
same people.
• In order to promote equality of opportunity selection committees should, wherever possible, be of mixed race and gender
composition.
• Any skills tests (eg. Presentations) must be directly related to the role and measured against objective criteria, and
presentations for one post must be assessed by the same persons.
• Candidates must be notified of the details of any skills test when they are invited for interview.
• Interview Questions must relate to the job requirements as exemplified in the person specification and the candidate’s
suitability for the position.
• The person specification should be used as the basis for determining the interview questions.
• The choice of appointee will be determined by the majority view of the interviewers.

Strong human resource policies

• Strong human resources policies and capable, qualified management are essential for all Nike suppliers to be compliant
with the law and our Code Leadership Standards.
• Nike have developed guidance and tools they can use to improve Human Resources Management (HRM) in their factories.
• Nike is supporting their supplier in developing predictive, agile, resilient and integrated HRM capabilities.
• By investing in HR professionals, systems and processes their supplier will be able to have the right people, with the right
skills, in the right roles, who are engaged, empowered and invested in driving their business success.
• They have teams in each of our regions with individuals dedicated to working with our suppliers to measure and develop
their HRM capabilities.
• In the last several years, these engagements were often part of an integrated approach to Nike’s Learn Management
Framework.
Those activities included:
• Developing systems and processes to capture accurate data and conduct data analysis on HRM related quantitative metrics
• Assessing supplier management strengths and weakness and identifying opportunities for development
• Providing coaching and Consultation to strengthen supplier HRM systems, with a focus on how to attract, develop and
engage their employees
• Developing tools to measure worker engagement and identify areas of opportunity for investment
• We will continue to evolve our approach, partnering with organizations focused on developing relevant tools and services to
support suppliers as they drive their strategies around workforce investment and management.

Training and development

• Training and development refer to educational activities within a company created to enhance the knowledge and skills of
employees while providing information and instruction on how to better perform specific tasks.
• Training is a short-term reactive process meant for operatives and process while development is designed continuous pro-
active process meant for executives. In training employees' aim is to develop additional skills and in development, it is to
develop a total personality.
• In training, the initiative is taken by the management with the objective of meeting the present need employee. In
development, initiative is taken by the individual with the objective to meet the future need employee.

• In perspective, Nike employs more than 40,000 employees, who fit into the various categories of designing, marketing,
distributions as well as logistics that manage and run the operations of the company around the world.
• Company’s culture in Nike has been pointed out as a key cornerstone in the training process of the company.
• Nike is a design company, and that extends to the way it thinks about talent development and learning. Just as the company
partners with top athletes to build and promote the brand, Martin sought out top performers in the company to model
learning programs.

• When Martin joined Nike in 2014, his team developed a new manager boot camp, which will be piloted this summer to help
new leaders develop the core skills and behaviors needed to succeed. The program will include live and online training,
simulations, workshops and ample time to practice in small groups.

• His team also rolled out a new upward feedback tool to help managers calibrate their performance, and to help the
leadership team identify broad areas in need of improvement. It differs from a 3600- degree feedback tool in that it focuses
specially on the behaviors the company wants to change.

• The boot camp and feedback tool demonstrate the power of working alongside employees to build a business and culture
where people feel like their managers are invested, thereby unleashing their potential.
Performance Management

• Performance management is the process of continuous feedback and communication between managers and their
employees to ensure the achievement of the strategic objectives of the organization.

• The definition of performance management has evolved since it first appeared as a concept. What was once an annual
process is now transitioning to continuous performance management.
• The Performance Management system at Nike ensures proper and timely fulfilment of the objectives embodied in the
organizational plans, identifying the contribution of each employee in the performance of them. It also generates a constant
communication between managers and employees to improve job performance of both.

• The objective of the performance management system at Nike is to provide an accurate and reliable way employee carries
out the job. Assessment systems must be directly related to the post and be practical and reliable. They need to have levels
of measurement or completely verifiable standards.

• The formal discipline policies of Nike focuses on the training of harassment and violence, because they believes that the
implementation of an effective prevention plan will have much greater impact on reduction of workplace violence that focus
on what steps will be taken after an incident happen.

• Employers that implement effective programs to address complaints, train employees on security issues, provide security
adequate physical, reduce job stress, and promote the work team in a very supportive environment are most likely to see an
increase in productivity.
• To accelerate the execution of Nike’s retail strategy and build the capabilities critical for success, BTS created two fully
customized experiential- based programs targeting Nike’s Head Coaches and District Managers.

• Two scenario- based solutions- one modelling a retail store for Head Coaches, the other a sales district for District Managers-
defined the core of each one-day program.

• In each competitive business simulation, teams of employees were challenged to balance priorities, react to unexpected
events, and make trade-offs as they executed their brand strategy and grew profitability in a simulated retail store or sales
district.

• Through the high- impact program, teams of participants experienced first-hand the impact, their decisions had on revenues,
costs, consumer experience, employee capability, and contribution to the brand’s overall strategy.
Future strategies

• In order to say competitive and remain a leader in the sports industry, Nike needs to consider what strategies they should
undertake in the coming future.

• If they take the cost leadership approach by undercutting their competitors in this price sensitive market, they will most
likely enter into price wars with each other, Moreover, this will mean that Nike will have to find ways to cut their costs,
whether it is manufacturing costs, investments into R & D or marketing costs. This will lead to poor quality products and
less innovation, not only a loss to Nike but also for the consumers. In the end, none of these sports brands will benefit and
Nike may face profit losses as well as harming its own image of being a good quality, reputable sports brand.

• Due to the highly competitive nature of the sports industry, Nike will only be able to maintain a dominator in this field if
they continue to be differentiated from its competitors. If Nike merely launches a new line of sportwear, other sports
brands will quickly follow and will not bring long- term growth for the company. For Nike to deliver sustainable growth in
the long run, they should consider a break out strategy steeping into the food nutrition industry by taking advantage of
Nike’s global networks and brand name.
Conclusion

• The human resource management of Nike is a strategic level activity that is carried out by the top- level management of the
company. It is concerned with a technical and a strategic function.

• The technical function is about recruitment, selection, training of new workers, motivation of workers and the development
of workers. This requires the use of common body of knowledge and it is meant to attract and retain workers of an
appropriately high standard and the monitoring of these workers to achieve productivity standard.

• Strategically, the HR unit of Nike will have to be proactive and it must transpose the strategic requirements and
expectations of Nike to the HR context and ensure that the HR unit’s activity is in line with the company’s corporate
standards.

• Nike’s HR unit also cooperates and works with other units of the company like marketing, IT, research and development and
international business to achieve its main objectives and goals.
Reference Lists

https://www.smartinsights.com/digital-marketing-strategy/sostac-model/
https://www.feedough.com/business-strategy-definition-levels-examples/
https://www.businessnewsdaily.com/5446-porters-five-forces.html
https://bstrategyhub.com/swot-analysis-of-nike-nike-swot-analysis/
https://business-essay.com/nike-companys-business-strategy/
https://www.investopedia.com/terms/h/human-resource-planning.asp#:~:text=Human%20resource%20planning%20(HRP)
%20is,avoiding%20manpower%20shortages%20or%20surpluses.
https://www.slideshare.net/pragyatiwari50
https://www.tutorialspoint.com/recruitment_and_selection/recruitment_process.htm
https://explore.darwinbox.com/hr-glossary/training-and-development#:~:text=Training%20and%20development%20refers
%20to,to%20better%20perform%20specific%20tasks.
https://www.toolbox.com/hr/performance-management/articles/what-is-performance-management/