Name(s):

NUR HANISA BINTI HISHAMMUDIN (AM2107009478)

Section: 05
Lecturer Name: Lab group / Tutorial group / Tutor (if
applicable):
MADAM NOR AZIAH BINTI SULAIMAN
Course Name and Course Code: Submission Date:

MANAGING CHANGE (MGT3063) 20/02/2023

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INDIVIDUAL ASSIGNMENT * Allowed / Disallowed

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ESSAY 20%

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This section may be used for feedback or other information

 UNIVERSITY POLY-TECH MARA KUALA LUMPUR

BACHELOR OF BUSINESS ADMINISTRATION (HONS) HUMAN RESOURCES

MANAGEMENT (AB201)

INDIVIDUAL ASSIGNMENT

MANAGING CHANGE (MGT3063)

ESSAY (NIKE COMPANY)

PREPARED BY:
NUR HANISA BINTI HISHAMMUDIN (AM2107009478)

PREPARED FOR:
MADAM NOR AZIAH BINTI SULAIMAN
 TABLE OF CONTENTS

1.0 Introduction…………………………………………………………………………..........1

2.0 Objectives……………...………………………………………………………………….1

3.0 Company Background……………………………….……………………………..........2

4.0 Planning For Organizational Change……………………………………………………3

5.0 Diagnostic Approach For Change ……………………………………………..........4&5

6.0 Change Implementation …………………………………………………………………6

7.0 Conclusion………………………………………………………………………………….6

8.0 Turnitin……………………………………………………………………………………..7
1.0 INTRODUCTION

Using a rigorous strategy and a variety of tools to deal with change is known as
"change management." It requires planning and putting into practise corporate strategies,
structures, procedures, and technology in order to adapt to changes in the external
environment and the business environment. Change management is the process of
organising, coordinating, planning, and managing the organizations internal and external
environment components. This is done to guarantee that the adjustments are made in
accordance with the established goals and plans and to minimise any disturbance (Oseni,
2007).

In actuality, organisational change is a form of adaptive coping that tends to enhance

system performance. Not only is change desired, it is also required. Although it may go by a
number of titles, such as "organisational development" or "innovation monitoring," it always
implies organisational learning. (H. C. de Bettignies and J. Boddewyn, 1971)

2.0 OBJECTIVES
The objectives list the company goals that will be achieved through the application of
marketing strategy. With its position as one of the world's largest manufacturers of athletic
clothing and sporting items, Nike has a variety of goals. The main objective of Nike, like every
other publicly traded corporation, is to increase shareholder wealth. For the purpose of
achieving its goals, Nike sets a number of tiny goals and targets. This includes the need to
manufacture high-quality goods and maintain the integrity of the global business in terms of
product development.

Nike’s Objectives:

1. Preserve and enhance Nike's position as the industry leader in sports.

2. Have a solid presence in the burgeoning fitness sector.
3. Boost the company's efforts to produce goods that women need and want.
4. Continue manufacturing fewer, higher-quality products while maintaining your efforts
to increase margins.

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3.0 COMPANY BACKGROUND
An American multinational corporation called Nike, Inc. is engaged in the design,
development, production, marketing, and sales of clothing, footwear, accessories, equipment,
and services on a global scale. In the Portland metro region, close to Beaverton, Oregon, is
where the company's global headquarters are located (USA). It is one of the biggest
manufacturers of athletic footwear and apparel as well as a significant producer of sporting
goods.

Being the most valuable brand among sports enterprises, it employs more than 44,000
people worldwide and has a brand worth of $19 billion (€17,5 billion) in 2014. Blue Ribbon
Sports was established on January 25th, 1964, by Bill Bowerman and Phil Knight. On May
30th, 1971, the business changed its name to Nike, Inc. After the Greek goddess of triumph,
Nike, the corporation was given that name. In addition to its own brand, Nike also sells its
goods under the names Nike Pro, Nike+, Nike Golf, Nike Blazers, Air Jordan, Air Max, and
other, as well as its subsidiaries, which include the names Jordan, Hurley International, and
Converse. In addition to its own name, Nike also markets its products under the labels Nike
Pro, Nike+, Nike Golf, Nike Blazers, Air Jordan, Air Max, and other, as well as those of its
affiliates, which include the names Jordan, Hurley International, and Converse.

Nike, a global sports team and athlete sponsor, is recognised for its catchphrase "Just
Do It" and its distinctive Swoosh logo (which represents the wing of the Greek goddess Nike).
Nike has a long history of purchasing clothing and footwear companies, some of which have
since been sold. In the 2000s, Nike began selling off several of its operations in order to
refocus on its core business sectors. Since 2013, Nike has been the owner of Converse, Inc.
and Hurley International. For more than 30 years, Nike Lab has offered trustworthy scientific
information that has helped to improve performance across the Nike brand. On the lab team,
there are about 40 researchers who specialise in a range of scientific disciplines, such as
biomechanics, physiology, physics, mathematics, kinesiology, biomedical engineering, and
mechanical engineering.

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4.0 PLANNING FOR ORGANIZATIONAL CHANGE
In the social, cultural, demographic, and environmental sectors, Nike has profited from
a variety of forces. Particularly as they have gained recognition and success, Nike has
benefited from international sports tournaments. Sponsoring or supplying goods for these
leagues has served as a marketing gimmick for businesses, but perhaps more importantly,
these leagues have produced a large number of well-known athletes who Nike has deployed
as brand ambassadors.

Nike is able to withstand numerous economic forces that would be harmful to a

company dependent only on one nation because it has developed into a multinational
corporation. Nike is able to partially rely on sales in other regions of the world in the event of
a North American economic slowdown. But, because Nike has suppliers and manufacturers
in a wide range of nations, it is compelled to maintain ongoing vigilance over the value of
various currencies.

Nike has benefited from multiple forces in the social, cultural, demographic, and
environmental spheres. Nike has made advantage of international sports leagues in particular
as they have grown in popularity and development. It has been a marketing strategy for
companies to sponsor or provide goods for these leagues, but probably more significantly,
these leagues have created a lot of famous athletes who Nike has employed as brand
ambassadors.

Nike's early success was partially attributed to its use of materials and labour that could
be found in Japan for comparatively low prices. Nike has continued to manufacture goods in
regions of the world where political, judicial, and governmental pressures allow it to pay the
lowest prices possible for materials and labour. As a result, Nike is sometimes blamed for
paying its employees cheap wages, who make the company's products.

The ways that goods can be offered to clients are evolving as a result of technological
influences. It is no longer necessary for a customer to visit a physical retailer or for a direct
sales representative to meet with a potential customer. Consumers may now approach Nike
directly, design what they want, and place an online order (McClusky, 2009). In addition,
modern technology is enabling the development of superior and more affordable materials
from which Nike may produce its goods. Nike needs to keep advancing in these areas.

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5.0 DIAGNOSTIC APPROACH FOR CHANGE
Nike's most important asset is its well-known brand. Nike has put a lot of effort into
making sure that its logos and products are recognisable all over the world. Nike has
developed a reputation for producing high-quality goods that are also highly valuable. As a
result, Nike is now able to charge more for their goods. Nike has benefited from both brand
awareness and the sense of quality as they have worked to become a global leader in their
sector. Nike has reached the stage where its global sales have developed into a strength,
supporting the business through downturns in North America. Nike currently has a negligibly
low level of long-term debt. This absence of debt shows that the business has plenty of room
to grow, has a healthy cash flow, and can endure serious economic upheaval. Last but not
least, Nike has emphasised ongoing innovation by consistently creating and promoting new
goods. Nike has begun expanding beyond the selling of footwear into a variety of other areas
of athletic apparel and accessories using this strength.

Nike does have some shortcomings. Although Nike has made an effort to diversify the
products it offers, the majority of its earnings still comes from the sale of shoes. Nike has also
been impacted by unfavourable headlines about labour conditions at the factories it contracts
with (Carty, 2010). Since Nike is regarded as a high-quality product, it is also able to charge
more than other products, which enables it to do so. Because of this, it would be difficult for
Nike to boost pricing in the case that labour or supply costs increased. As a result, Nike's
products are price sensitive.

Nike still has a variety of chances accessible to it even though its brand has grown
significantly over the past 20 years. Nike has the ability to diversify into new fads, styles, and
accessories. Nike can create novel procedures, components, or other advancements that will
enable cost savings. Cost savings would enable either a better profit margin or the availability
of a lower-priced product to a wider range of customers. The introduction of new celebrity
athletes presents a continual opportunity for Nike. Nike has done a great job of using famous
athletes as brand ambassadors for its goods. The duration of an athletic career is finite,
therefore Nike can always use a new face to advertise a product. Forward integration is a
chance that Nike is only now starting to take advantage of. Just lately, Nike has added the
opportunity to create custom products and place online orders. Nike has long offered direct
sales of specialist products. Nike might reduce costs associated with selling through a
merchant by expanding these markets. Eventually, Nike can keep growing its influence around
the world. Especially in the so-called BRIC countries of Brazil, Russia, India, and China, there
are still a lot of places where Nike may grow (Kiss, 2011).

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 As the market leader and a multinational corporation, Nike faces numerous dangers.
The main danger comes from Nike's rivals. Every business aspires to become the best. The
only way to maintain your position at the top is to keep coming up with new ideas and exhibiting
the traits that made the company great. Also frequently encounters currency risk. There can
be significant fluctuations in the relative exchange values of currencies because its buyers,
producers, and suppliers are located in so many different nations. The variety of
manufacturers and suppliers can also increase the risk in the supply chain; the more
companies Nike depends on to make its products, the higher the chance that one of them
would fail in some way. However, this issue is somewhat mitigated by the fact that only a small
portion of Nike's products are produced by each supplier and manufacturer. Last but not least,
Nike has a middling reputation as an environmentally friendly business (Memon, 2009). Losing
this reputation is a risk for Nike.

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6.0 CHANGE IMPLEMENTATION

Showing a shift in perspective The realisation that a change in the process is

necessary occurs at this level. The inadequate nature of the current system, for instance, has
to be improved. Cost reduction, service improvement, etc. are all necessary. It is vital to
determine any potential opposition from users and beneficiaries of the current procedures
before receiving actual consent from management to implement the process change in each
sub-stage, especially those where the change concept was examined and authorised.

This stage of the process involves implementation of the process modification.

Management must build a long-term commitment to be proactive in spotting issues,
maintaining stability during implementation, and locating solutions. If issues and persistence
cannot be avoided, it should at least come up with workable answers. To ensure better
understanding and cooperation, each stakeholder must be involved at every stage of the
implementation process. Using the most recent example, this stage makes sure that the
process modification meets the intended goals and that any issues that arise during the post-
implementation stage are immediately found and fixed. Those in management who will be
touched by the change should be sure that they are all aware of it.

For the process change to be implemented successfully, every member should feel
important. One of the difficult situations that the corporation will have to handle is change in
any organisation. A company's ability to adapt to change will affect its ability to maintain
profitability, advance with innovative concepts and products, and renew the organisational life
cycle. The majority of companies that have continued to operate profitably have consistently
expanded, refreshed, and altered their product lines, clientele, and overall business practises.

7.0 CONCLUSION

The mission of Nike, a highly successful firm, is to innovate and inspire. Nike has
historically benefited from a variety of environmental conditions. By utilising a source of less
expensive labour and materials, Nike was able to outperform its older German competitors.
Nike was able to develop their brand by capitalising on the expanding celebrity sports culture
in North America. With only a minor setback, Nike was able to transition from a mission of
destroying their rivals to a mission of invention. Nike should continue to be successful if it can
stay true to its mission, concentrate on creating cutting-edge products, and inspire its users.

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8.0 REFERENCES

1) Collins, J. C., & Porras, J. I. (1996). Building your company’s vision. Harvard business
review, 74, 65-78.
2) Collins, J. C., & Porras, J. I. (1998). Organizational vision and visionary organizations.
Leading organizations–Perspectives for a new era, 234-249.
3) Palmer, I., Dunford, R., & Akin, G. (2009). Managing organizational change: A multiple
perspectives approach (2nd ed.). New York: McGraw-Hill/Irwin.
4) Nike Inc. was retrieved on September 26th, 2012, from http://in.
reuters.com/finance/stocks/company. Рrоfіlе?
5) Оzеnі, Еzеkіеl. 2007. Change management in process change. Rеtrіеvеd 26th
September 2012 from http://www.saca.org/Journal/Last Issues/2007/Volume-
1/Documents/jорdf0606-Change Management. Pdf
6) Change management N NCC Vandya Ermata Number: 014201000130 Banking
Finance Laps 2 Independent University

9.0 TURNITIN

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