Fit2go operations management with new opportunities or they

Fit2go is trying to
break into the fitness apparel market, in doing this, operations become a
dominating part of the business as they look to Nike fore business advise in
being the most successful business in the industry

Brief
Outline about Nike

Nike
began in a small lab in America more than 30 years ago, and has since expanded
becoming a professional world-class facility due to its size in the sporting
goods industry. The once small business is now a world-class brand and store,
which currently has 1142 stores world-wide and is continually growing to be a
recognized brand in every country

Importance of Operations in contributing to the main aims
of the business.

 

Nikes
first aim like any business was to make a product and finally establish their
brand nationwide or worldwide. Operations is a key factor for any business
especially when Nike is mentioned. Nike began in dedicating themselves to
sports science and designing equipment in the sporting industry. Once Nike had
finished their research on a certain product and had designed the best quality
product at a reasonable price they were able to start bringing in sales,
ultimately bringing in profit. Nike has finally minimized all costs and made a
cheap but quality product.

 

Nike’s
operations management responses to the influences of CSR

 

The
role of operations management is to perform transformation processes in such a
way as to best achieve the businesses objectives such as being more productive
or efficient. Many factors external to the business affect the decisions made
by operations. These influences may present operations management with new
opportunities or they may make certain actions difficult or impossible. Nike
has had to continually change and alter the way they run the business in the
way of how they make their products. The largest influence that Nike have is
environmental, Nike has been affected negatively by this influence due to the
materials they use to make their product.

 Their
most worrying issue they have is their raw materials’ Greenhouse gas emission.
Nike however, did a large study on the effects of manufacturing cotton,
polyester, leather, and rubber, all of which are major inputs of Nikes
operations and products. The in-depth research discovered that greenhouse gas
emissions from producing one cotton t-shirt is equivalent to driving one car
eight kilometers. An influence like this could potentially ruin their business
and operations.

Nikes changes in
their transformation procedures.

 

In recent Nike have prospered when the
factory management obeys the environmental and equitable workplace rules, this
has allowed for Nike to prosper and become profitable, productive and
successful which has allowed them to have a competitive edge over their
oppositions. Nike have changed how they work, who they work with and what they
expect of their partners. Nike became successful through their innovation in
the transformation processes, this allowed them to be a threat to every other
business in the market as they strived to engage all employees in operations to
stay motivated and productive in view of delivering a world-class product.
Human resources became a great input for Nike as they began innovating
employees and are continually looking for new strategies, whether it involves
employees getting involved in research programs or dedicated to connecting with
workers, all this adds up to a positive change in the workplace with in the
office or in the factory. Nike has also completed a piece of research the shows
how they can effectively make the same product but with less use of materials.
When Nike designed ‘FlyKnit’ a technology which helped in the making and
designing of shoes. This reduced waste by about 60% on average compared to cut
and sew footwear, and reduced nearly 1.6 million kg of waste since 2012.1

Effectiveness
of operation strategies in Nike

 

To achieve operations goals and broader
business goals, operations managers can apply numerous operations strategies,
these may include, New product or service design and development, quality
management and outsourcing. Nike have many customers all over the world, this
means that Nike production centers must be all the same standards of quality as
they aim to create a quality product that will not change from country to
country. Nike have managed to create a consistency across quality management in
the last few years and with the help of modern technology human factor can now
be taken away from operations. The products that Nike supply to customers are
all designed to be cost efficient however user friendly, the design and
development has a large role in making sure the customers ends with a satisfied
product. For Nike to become effective and efficient they run trials and
research tests to gather information which allows them to have a competitive
edge in the sport clothing industry. Outsourcing is another factor which Nike use
in cutting costs however can have a bad reputation if they continue to affect
the jobs of the employees which range from customer support to manufacturing. They
now are outsourcing to china, Indonesia, Vietnam, Taiwan, south Korea, and the
Philippines. Operations Management requires many levels of management in Nike,
one of which is Quality management, this ensures that an organization, product
or service is consistent. To ensure that Nike can guarantee quality footwear
and apparel to their customers world-wide, they employ Quality Assurance
Process Auditors. These auditors must meet a strict-criteria that involves
diplomas, and previous years of experience in this area of Operations
Management. Without Operations strategies Nike wouldn’t be recognized today for
their trendy designs and cost-effective quality products      

Effects of
strategies on Human Resources and Finance function on Nike

 

Outsourcing – Allows for a cheaper price
for the customers when the products are being made on a large scale and then
have competitive advantage over the competitors.

Quality Management – With the creation of
Robots and new technology these machines now take out human error which allows
for a quicker produced product and a greater quality which then also allows for
Nike to lower their prices to get a competitive edge

 

Recommendations

Fit2Go must firstly ensure they have a quality product at a
competitive price. The products will need to be designed for the customers and
manufactured to a standard that excites the intended target market. Fit2Go
needs to set goals for themselves as most business tend to fail in the first
two years from when the business starts. Fit2Go has a potential to make a mark
in the industry as the aim to become a threat to Nike