Need for a Lean Initiative - Research Paper Example

Need for a Lean Initiative Paper Introduction Nike and Adidas are worldwide producers of sportswear. Many people use their products all over the world. The two companies are giants in producing both sports equipments and sportswear (Arnheiter & Maleyeff, 2005). Users of their products are loyal to the companies since they are always guaranteed of quality products from them. Despite having a similarity of the goods they offer to their consumers, they differ in terms of objectives, management, mission, vision, and goals. Nevertheless, the difference may not affect the consumer’s choice now but in long-term they may affect the consumer’s preferences on the two companies’ products. Management is a complex function that determines a company success, delivering of affordable goods and quality goods, a trustable delivery and continuous innovation throughout the companies’ entire functioning chains (Arnheiter & Maleyeff, 2005). Determinants of efficient management are measured by the companies’ market network and the shareholder value. If the two factors increase then the companies have realized good management skills. Nike and Adidas are two European countries that work with an aim of outdoing each other from the market by improving their strategic management. Most of the strategies are based on their supply chain and marketability of their products. The aim of this study is to compare and to contrast the management styles of the two companies in the context of how they affect organization behavior. • Comparison and contrasting of the management style(s) within my organization (Nike) with the management style(s) at selected organization (Adidas) that has adopted lean initiatives. According to Locke and Romis (2012), a lean management system incorporates a strategy that ensures daily progress, meaningful purpose, and lasting value. The Footwear market is characterized by dynamic factors; most of the changes are short period. The demands in the market are not flexible, and the purchases are sometimes high and other times small. Additionally, the products from the manufacturing industry to the market usually follow a short product lifecycle. Adidas Company has instituted lean initiatives in management, focused to decrease the costs and to improve their supply chain processes. However, lean initiatives make the company prone to risks that occur because of relying on other supply chains, elements and other interruptions (Locke & Romis, 2012) Nike management approach Nike Company has adopted a management strategy referred to as a Subcontracting Management Plan. The strategy has advantages for the company marketing strategies, and it ensures that the markets are unique from other companies offering similar products, and the production process is determined by the demand in the market. The production is not done in seasons, but it is done depending on the customer’s requirements and products exhaustion in the markets. The Sub-contracting Management Strategy reports to the main office found in New York City. It enhances a shift of factories from one region to another, and from this strategy, they usually open factories in different countries that last for only one year. This management strategy is often aimed at meeting the market demands that varies all the time. Nike is upgrading its management to ensure that the time of manufacturing is reduced to cater for retailers’ demands. Additionally, according to Locke and Romis (2012), they use a just-in-time management process that ensures that they deliver the products to their clients in time as they order them. This management strategy is available in Europe and US. Subsequently, the retailers receive goods in days rather than waiting for months. Consequently, this increases profits and reduces costs. Adidas approach Before the company adopted lean initiatives, it had warehouses and batches where they stored their goods waiting for the shipment to their relevant retailers. Adidas has introduced lean initiatives across their supply networks, and this is done through overhauling the entire manufacturing, management, and processes. The lean initiatives include time-to –market initiative that involves coordinated global initiatives across the world on behalf of Adidas Company. The initiative includes training services offered by the suppliers, improvements of technologies in their companies and supply chain management. The processes are designed and implemented in the organization (Sherman, 2011). • Characteristics of the selected groups (Nike) lean enterprise style(s) in how it affects organizational behavior and comparison of those characteristics with my organization (Adidas). Nike and Adidas Company are not perfectly matched when it comes to the features of their initiatives. The two companies’ owners are of different nationalities, and they have different ways on how they handle their capacities in marketing. Through the adoption of a linear management strategy, the production style in changed from one style to another. Additionally, workers are organized differently in the two companies. For the workers to adopt the initiatives, they had to undergo an extensive training. The lean enterprise management is motivated by the increasing shift of the consumer tastes and competition from the other global brands. Nike has significantly concentrated their market scope in the US and Europe (Sherman, 2011). However, they use a sub-contracting system where they temporarily introduce industries upon rise in demands. Adopting the lean enterprise style the organization has recorded a high performance. Additionally, the output and quality of the products has improved. The earnings of the staff have also increased considerably. In my organization, the management focuses on ensuring the global acceptability of the products. The outcomes of the strategies of management are a devolvement of the management, and this increases the supply chain. Another vital effect to the organization is that, the management style ensures that the products are manufactured and released on demand; there is no wastage of time. Consequently, the overall implication is a reduction in total costs and increased profits (Sherman, 2011). The selected organizations (Nike) initiatives. And comparison and contrasting with (Adidas) lean initiatives. According to Sherman (2011), Nike has been vocal in offering sponsorship to celebrities and other sportsmen. By this, they have increased their popularity among today’s generations. They have concentrated their markets on the basketball and athletics. Their products are designed and produced depending on the demands of the two endeavors. Initially, their market was solely in America, but they have now extended to international markets. Contrary to that, Adidas has concentrated their markets to those who play tennis and soccer. From the start, they had been basing their markets in both US and Europe markets. Through their lean initiatives, they have put more emphasis on Europe markets but they are also known internationally. Additionally, recently the company has merged with Reebok and Rockport to increase their market share. Nike is far ahead when it comes to market acceptability and strategies in competition. The strategy of sponsorship has made Nike company to be a notch higher in competition (Sherman, 2011). .• Evaluation of the extent to which the selected organizations (Nike) lean practices could be integrated into your organization (Adidas) Own organization can improve its market share through increasing the number of sponsorship they offer. It will boost the number of customers interested in their products. Additionally, Adidas Company can establish a lean management strategy where they engage in a sub-contracting process. It can be done by establishing temporary industries depending on the demand rates of their products (Distelhorst, Hainmueller and Locke, 2014). Improving the technology used will bring a positive impact on the quality of the products and the timeframe between production and the time the goods reach the retailers. By establishing these strategies, our company will in long-run improve their competitiveness in the market • Description of how the use of technology (digitization) supports lean objectives in a global environment. Due to the competitive nature evidenced in the market, companies must work on improving the value of the products offered to their clients. Use of technology in lean objectives enhances the decrease on wasteful practices and increases the availability of the products to the customers. Using automated processes and integration of spreadsheet-based procedures are some of the ways of integrating technology. The processes ensure that the responsiveness of the products is enhanced. Through the use of technology, the customer’s order are received in time, additionally, it would be easier for the customer to trace the delivery process (Distelhorst, Hainmueller and Locke, 2014). References Arnheiter, E. D., & Maleyeff, J. (2005). The integration of lean management and Six Sigma. The TQM magazine, 17(1), 5-18. Distelhorst, G., Hainmueller, J., & Locke, R. M. (2014). Does Lean Improve Labor Standards? Management and Social Performance in the Nike Supply Chain. Watson Institute for International Studies Research Paper, (2013-09). Locke, R. M., & Romis, M. (2012). Improving work conditions in global supply chains. MIT Sloan Management Review, 48. Sherman, W. R. (2011). The global reporting initiative: what value is added?. International Business & Economics Research Journal (IBER), 8(5). Read More