Strategy Implementation - NIKE - Essay Example

For a large capital company, these continued gains are an amazing performance. This paper is a strategy implementation for Nike. (Nike Inc., 2012) While the statistics above shows strength in Nike’s strategy, this ratio has several limitations. It does not account for the money’s time-value, in addition to the risk associated, with an investment or stock (Harper, 2012). The ratio also overvalues investments as the equation overlooks long-term costs in favor of short-term savings. Finally, since they can be calculated using different criteria, these ratios have a problem with consistency.

The Inventory Turnover of a company, in accounting, is a measure of the frequency at which inventory is used or sold in a set period, for example, a year (Ozyasar, 2012). The equation for its calculation involves dividing the cost of goods sold by average inventory. It is also referred to as stock turnover or inventory turns. For Nike, the inventory turnover has been dropping, although not drastically. These ratios show that while Nike does well with money collection, it has much slower in selling or using inventory in the past three years.

(Nike Inc., 2012) This ratio has several limitations. . Finally, low inventory levels could lead to lost sales. The inventory turnover ratio fails to tell the organization if it could have sold extra if it had higher stocks. Nike intends to move its global organization into organizational learning and sustainable practices with an aim to increase sales (Balch, 2012). These strategies are also aimed at spreading the appreciation of sustainability through the entire organization, as well as demonstrate value to customers and business.

In the 21st century, successful integration of corporate responsibility with the heart of the business is mandatory. Nike is adopting environmental efforts aimed at being part of its wider sustainability program. Nike is striving to minimize the negative impacts, which their processes have on the environment during the product life cycle from design all the way to manufacturing. They are also extending this to the products post-consumer use, as well as the product’s ultimate disposal. They have instituted a program called NEAT that strives to recycle manufacturing waste left over from shoes (Balch, 2012).

The solid waste from Nike shoes, especially cured rubber used for the manufacture of soles, is now converted into new soles This is expected to create value addition to the consumer since they are environmentally friendly, which is now a major global issue. This builds on one of the company’s core values; doing things with a difference as standing still is seen as dangerous while failure to take risks is seen as more dangerous. For Nike, collaboration is vital if they are to stay ahead with innovation (Balch, 2012).

They are thus continually seeking insight from regular athletes and partners from inside and outside the industry, with an aim to improve