Nike- Operations Management

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Date Submitted: 08/23/2011 05:22 PM

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Executive Summary

Operations management defined is the activities that relate to the creation of goods and services through the transformation of inputs to outputs. Operations management includes several different factors. Among these factors are strategy, design of goods, operations and productivity, project management, forecasting, managing quality, statistical process control, capacity planning, and location and layout strategies. All of the aforementioned factors are discussed in detail in the following pages related to Nike. It is important to note that other aspects of operations management exist. Those most relative to Nike and its business environment were focused on.

Introduction

Nike is one of the most recognized brands in the entire world. Though Nike is headquartered in Beaverton, Oregon, it currently operates in 160 countries. A company’s mission defines the purpose for the organization’s existence. Nike’s mission is: “To bring inspiration and innovation to every athlete.” Also, co-founders Phil Knight and Bill Bowerman believe that “if you have a body, you are an athlete.” (Nikebiz) This idea represents the endless possibilities of human potential in sports. By way of this thinking and staying true to its mission statement Nike has become one of the largest, most successful sports brands in the world.

For Nike to be successful, it must consider several different operational management decisions. These include: operations strategy, design of goods, operations and productivity, project management, forecasting, managing quality, statistical process control, capacity planning, and location and layout strategies. In the following pages each of the topics listed will be analyzed and discussed relative to Nike.

Strategy

A company’s strategy simply explains how it plans to achieve its goals and missions. Three main strategies exist for companies to choose from. Low cost leadership is achieving maximum value as perceived by the...