Nike & Adidas - Improving Organisational Performance (my reference: htm) - Essay Example

.13 Limitations to Implementation………………………………………………………………..13 Conclusion……………………………………………………………………………………14 References…………………………………………………………………………………….15 Introduction Modern organisations operate in a very dynamic environment and therefore need to develop strategies to help them to achieve competitive advantage in the market.

As a result, most organisations are developing performance management systems (PM) and high performance work practices (HPW) that ensure they get the most out of human capital. The purpose of this assignment is to explore, contrast and critically evaluate two organisations that are HPW organisations: Nike and Adidas. This is to determine the different approaches to PM/HPW utilized by these organisations, their success and failures and the challenges they encounter in implementing those strategies as well as proposing solutions to those challenges.

Nike is a global leader in design and marketing of high quality athletic footwear, apparel, and sports equipment with over 38,000 employees across six continents. Its mission is to bring inspiration and innovation to every athlete in the world. It has several subsidiaries with headquarters in Beaverton (Nike, 2012). Adidas-Group is a leader in sports wear, apparels, and accessories. It has over 165 subsidiaries and headquarters in Herzogenaurach, Germany. It has over 46, 824 employees and its mission is to be the global leader in sporting goods industry with brands built on a passion.

The cost leadership strategy involves using techniques that minimise wastage while maintaining quality of products thereby reducing the price of those products. The use of lean manufacturing techniques by Nike a global leader in athletic footwear is a good example. This strategy was adopted after realising the company had too much overtime hence criticism and great pressure to adopt measures that would sustain its performance (Nike, 2012). Change was inevitable if the organization had to compete effectively with brands like Adidas, Reebok, and puma.