Identify one decision that Nike managers make in each of the six value-chain functions.
Nike managers make various decisions within each of the six value-chain functions. Here's an example of one decision that managers make within each function:
1. Inbound Logistics: One decision Nike managers make is determining the type and quantity of raw materials and components to be sourced from suppliers. This decision involves selecting suppliers, negotiating contracts, and managing the logistics of getting the materials to Nike's manufacturing facilities.
2. Operations: Managers decide on the production processes and technologies to be used to manufacture Nike products. They determine the allocation of resources, such as labor, machinery, and equipment, to ensure efficient and high-quality production.
3. Outbound Logistics: A decision Nike managers make in this function is selecting the most effective distribution channels for their products. They consider factors like customer demand, market reach, and cost-effectiveness, choosing between direct sales, retail partners, or e-commerce platforms.
4. Marketing and Sales: Managers make decisions regarding Nike's marketing and sales strategies. This includes identifying target markets, developing advertising and promotional campaigns, determining pricing strategies, and managing customer relationships and brand image.
5. Service: Managers decide on the service and support offerings provided to customers after they purchase Nike products. This can include warranty policies, product returns and exchanges, customer support, and assistance with product-related issues.
6. Procurement: Nike managers make decisions regarding the procurement of non-production-related goods and services. This can involve selecting suppliers for office supplies, IT services, marketing agencies, and various support functions to ensure the smooth operation of the company.
Understanding the various decisions made within each function of the value chain helps Nike managers optimize their operations, enhance customer satisfaction, and ultimately drive business success.