23 May 2022

441

Exploration of Change at Nike Shoe Company

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Nike has grown to be the globe's largest athletic footwear and apparel company in the USA. Nike's goods are sold by more than 21,000 retailers globally and approximately 100 nations (Gupta & Kaur Saini, 2020). The company operates in retail stores both regionally and internationally, and most of its shops are referred to as Nike Towns and other factory outlets. All the products are made by independent contractors at international levels, while Nike is involved in designing, developing, and marketing. Apart from the fundamental athletic shoes and apparel, the firm also deals in Bauer brand athletic equipment, casual footwear. The company has its headquarters in Beaverton, Oregon, and was started in 1964. The company's logo that depicts a curved check marketing technique refers to as "swoosh," is recognized worldwide. Part of its success is due to numerous endorsements by famous athletes such as Tiger Woods, Roger Federer, Michael Jordan, and Mia Hamm. The company deals with innovations and discovering new footwear by offering athletes products and experiences like breathable athletic shoes. The products are well-known globally due to effective advertisement and face-to-face marketing since clients share affirmative views with loved ones. After purchasing Nike's products, clients learn and experience the quality of what they expected. To become consumer-friendly, Nike has implemented the Zero waste change initiative, aiming to decrease dangerous carbon emissions to the environment to curb climate change.

Identification and Description of a Professional Change Initiative

Nike has intense competition, and its main rivals are Reebok and Adidas. The competitors' goods are not completely dissimilar from Nike's brands because they are involved in the design and advertising of fitness items and athletic footwear. What makes Nike different is its differentiation and unique competencies in marketing. Nike has continuously developed customer brand awareness and influence for an extended period, positioning itself in the marketing. Its products cannot be replicated and have unique benefits for consumers. Additionally, Nike has realized that no company can grow and become successful without sustainability efforts. Nike has developed a Zero Campaign change initiative to decrease its manufacturing procedures' adverse impact on the environment.

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Nike has been subject to criticism when it comes to environmental degradation. The company has decided to lead the path in fighting climate change through its Zero Initiative campaign. The supply chain of everyday garments and footwear brands begins with farmers harvesting raw materials such as cotton. The farmers sell raw material to plants that make yarn or clothes, making them fit particular brand elements. Nike, therefore, has decided to rethink environmental issues. They have started considering that global warming is a problem that openly affects Nike's marketable procedures.

Nike has realized that high temperature in areas that grow cotton is becoming unstainable. High temperatures were witnessed in Texas 10 years when more than 50% of cotton fields were abandoned (Gupta & Kaur Saini, 2020). The company has also realized that there will be no athletic footwear or apparel without cotton. Additionally, factories use a considerable amount of raw material to develop apparel, mostly water. One mill can utilize more than 150 tons of water for every shoe it makes. This activity learns the enormous amount of wastewater it discharges, making it inexpensive to treat and operate. Nike also has recognized that more than 55% of clothes plants are found in Eastern and Southern Asia, while about 65% of wear consumption is found in Europe and North America (Gupta & Kaur Saini, 2020). These procedures demonstrate that storage and distribution expenses are related to this arrangement. In minimal industrial regions, climate-changing-related flooding can lead to plant shutdowns, as was witnessed in four Nike plants in Thailand in 2008.

Nike's administration has implemented ways to curb global warming with the above explanation. First, they have developed fundamental initiatives like zero waste from independent contractor's factories to landfills. There are also targeting 100% renewable power in operating amenities by the end of 2025 (Almiya et al., 2020). The company ensures that these goals align with each person within the firm and have a shared vision to achieve innovative growth with maximum sustainability. The initiatives in combating climate change are temporary and long-term.

Nike transformed 60 pounds of plant scraps into first-class resources utilized in attire and footwear as part of its closed-loop ecosystems. The company also enforced its independent contractors to reduce their energy utilization over the past five years. Nike has decreased its dependency on weather-prone plans such as cotton. Instead, the firm has incorporated more reprocessed alternatives into its attire. The company has also started utilizing first-hand technologies in its plants that dye polyester without using water and chemical, saving at least 50% of energy and enhancing its speed by around 30% (Almiya et al., 2020). Nike has collaborated with MIT to involve factories, creators, and customers to value, demand, and adopt low-impact fabric and fabrics. Also, Nike aims to decrease carbon emission across the wireline supply chain by 35% by 2030. Also, there is the development of programs such as "The Reuse-A-Shoe and Nike Grind programs to translate waste into fresh crops, courts, running tracks as well as playgrounds.

Change Initiative Through the Eyes of the Leader and the Follower

Not having workers during the change process makes employees mistrust the change. Nike's fundamental concerns as a change agent have not included employees and independent contractors in Nike's initiative. Inadequate determination of the requirement of the fluctuations can lead to the failure of the change initiation. Nike made many mistakes, including changing marketing, logos, storage, creation, and processes to appeal to the sustainability companies without considering the opinions of employees, consumers, and independent contractors. Nike's other mistake is that it alienated the current workers.

Success and Failures of the Change Initiative

Over the past years, Nike's change initiative has led the way and set the trend for eco-friendly fashion. The firm has been identified as having attained the maximum ecological and communal development level as environmentally friendly wear firms worldwide. In 2020, the company was recognized by World Wildlife Foundation (WWF) as among the best green companies and in a similar league with other fashion organizations such as Levi & Strauss and H&M (Almiya et al., 2020). The award demonstrates that the company is in a positive direction.

The firm has realized better energy and water-saving than before. Water retreatment procedures and energy general power plans play a fundamental part in ecological dilapidation. Thermal energy creation utilizes coal-burning to develop heat used later in producing power. Nike's conservation of power and water enabled it to minimize wastage, thus decreasing environmental dilapidation. With its collaboration with Dye COO, Nikes have reduced its energy consumption by about 50% (Almiya et al., 2020). Over the past five years, Nike has utilized the latest technologies, which allowed the organization to use less water.

The change initiative has helped the ecological restorative procedure. Resource procurement is also a persistent procedure. Firms like Nike do not compromise on products` superiority are continually trying to get their hand on excellent resources. Maintaining its line with environmentally friendly determination, the company is now manufacturing items with artificial materials. Artificial methods under controlled conditions can make these items. It decreases the pressure of natural features such as soil and water. Also, it has substituted normal cotton with gradually produced cotton. Artificial cotton does not require the utilization of harsh nourishments. The processing methodologies also need the minimal utilization of substances, leading to poisonous vapors that lead to climatic change conditions when released into the atmosphere.

Additionally, zero waste campaigns have supported safe fuel movement. Any manufacturing firm must distribute resources to plants and transform finished products from workshops, storerooms, and retail stores. All this movement needs considerable utilization of environmental-friendly cars. Gas and diesel are mostly used. When burning oil produces a high percentage of carbon dioxide, it results in global warming. However, Nike has taken additional extraordinary procedures to reduce this. It has provided green signals to utilize safe fuel for its cars. All vehicles owned by the organization use safe and eco-friendly energy. It will lead to no dangerous carbon emission (Almiya et al., 2020). It is a step that the organization took after implementing the "absolute zero emission' police.

Also, Nike has become successful in developing policies and lobbying. There is no additional point that corporate giants can run global politics. It has been found that multi-billion-dollar firms have specific recommendations on business procedures and policies. They endure that trade practices are not hindering their revenues. The lobby and ensure that the guidelines do not harm the global environment. A reputable company like Nike agreed to reduce the carbon footprint. The company leaders have signed the Climate Declaration, thus putting a price on carbon emissions for non-environmental-friendly organizations.

On the contrary, the change initiative made Nike receive numerous criticisms on environmental, ethical policies. Many sustainable companies have awarded Nike the worst rating for cotton sourcing policies. The company failed to give a transparent approach to utilizing insecticides and herbicides. Cotton comprises approximately 1.3% of all pesticide sales and 4% of herbicide deals when it covers only 3.5% of worldwide arable land. Nike utilized artificial cotton and Better Cotton Initiative (BCI) specialized cotton, but it did not become 100% (Almiya et al., 2020). Organizations that have the environment at heart must have a transparent statement dedicated to utilizing 100% sustainable cotton.

Concepts and Theories of the Change Initiative

There are numerous change management models and concepts, including Lewin's change management model, Nudge theory, Bridges` transition model, and Kotler-Ross's change. With these dimensions and models, involvement is utilized to reduce any issues when implemented. Offering a step-by-step introduction will eradicate such problems when leaders try to focus on the change initiative agendas.

Lewin's Change Management Model

The concept involves three stages that describe the status-quo as the current situation, but a change procedure should evolve into a future desired condition. Step 1 is unfreezing stage which Lewin identified people's behaviors concerning change. The leaders determine what requirements to change. This aspect involves surveying the whole firm to understand the current condition and understanding why change has to take place. It also ensures strong support from senior administrations and framing the issues as a single company-broad acceptance. The phase also allows the leader to develop the need for change within the organization by creating convincing communication about why change has to happen and utilizing visualization and strategies as backup proof. Step I also include managing and understanding doubts and concerns.

The second step itself changes. This phase involves communicating continuously within the organization and introducing the changes' planning and implementation. It also includes describing the benefits and explaining precisely how the change will affect all stakeholders. The change process also involves preparing employees for what is about to occur (Hussain et al., 2018). Change also dispel rumors, answering question transparently and honestly and dealing with problems immediately. The leaders in charge of the change process also empower actions by providing lots of opportunities for employee involvement and having team members offer day-to-direction by involving all stakeholders in the process.

The third step is refreezing, which involves anchoring organizational culture changes by identifying issues to sustain change, developing a rewarding system, and ensuring leadership support. The team leaders also establish feedback mechanisms and adopt the organizational structure. The leaders also continuously offer support and training to ensure that all employees are informed and supported (Hussain et al., 2018). From the analysis, it is clear that Lewin's change management is a simple and easy-to-understand model for managing and sustaining change. Nike can benefit from utilizing Lewin's change money. Using the procedures offered can be simple guidelines for implementing zero campaigns in an ever-changing economy. Nike needed dramatic change to compete with companies that have implemented sustainable corporate responsibility.

Nudge Theory

T0 get stakeholders ready for having change; it is essential to comprehend how people's behaviors change and what inspires them to admit change. Nudge theory is modern and appropriate to change management. The approach provides leaders ways and stages of understanding individuals and engaging them for change implementation (Lee et al., 2020). The nudge implies principles that small actions can influence an individual's choice or the way individuals behave. It deals with engaging stakeholders by understanding how individuals make decisions. The theory encourages indirect strategies to influence behaviors of offering direct instructions.

Nudge theory revolves around the fundamental concepts that indirectly influence people without choosing their freedom. It discourages any change in workers' behavior by adhering to strict orders and direction. It is about offering selection by giving enabling environments and encouragement that workers will change (Lee et al., 2020). Nike can benefit from the Nudge theory because it easy to implement because the technique is less threatening and non-disruptive. It is also an indirect way of implementing, tactical, and also has fewer confrontations. For employees also, it is cooperative and pleasurable. Nike can use the model also to identify, evaluate and modify present heuristic impacts on people and society to explain to them essential to curbing climate change and how it is helpful to the community as a whole. The organization can also utilize theory's communication, marketing, and motivation techniques to enhance the change initiative.

Bridges` Transition Model

The model is widely used in organizational change. It helps companies understand the most effective ways of managing the change initiatives. The model recognizes the three phases of corporate experiences during the change process. It includes ending what presently is, the neutral zone, and the new begging. The ending is the initial phase of transition that starts when the organization identifies losing and learning how to manage the issues (Rosenbaum et al., 2018). They determine what is over and what should be implemented.

The second step is the neutral zone of the transitional process. People are between the old system and when the new one is not entirely operational. It is a fundamental aspect of transitional procedures because it is where the organization is still full of confusion, uncertainties, and impatience. It is the bridge between the old and new where the organization seems to be attached to the old system because there is no clarity what the new will behave. The organization will face resentment towards the change initiative from employees, minimal morale and productivity, anxiety about change in roles, and being skeptical about the change initiative.

The last stage is the new beginning and entails a chapter of acceptance and energy. This phase is where the organization has embraced the change initiative. It is developing skills it requires to work successfully in the new environment. The organization is begging to realize early wins from its initiatives. Employees are likely to experience maximum energy, open to learning new experiences, and renewed dedication to the group or their duties (Rosenbaum et al., 2018). In Nike's case, the change initiative will be successful because the model will help the firm address the internal psychological processes that individuals experience during change. Nike will communicate with the company about why the change is required. The model will also enable the firm to collect information from employees affected by the change and comprehend its effect.

Impact of Zero Campaigns Initiative Upon the Organization

Nike will power-have owned and operated facilities with 100% renewable power. Nike has decreased carbon emission across its global supply chain by 35%. The Zero initiate has allowed the firm to act according to the Paris Agreement of 2015 (Almiya et al., 2020). Nike has diverted more than 900 million plastic bottles per year from landfills to develop yarns of new apparel and footwear. The Reuse-A-Shoe and Nike Grind programs have converted waste into new playgrounds, running tracks, and courts.

Zero initiative has impacted each facet of business operations, especially on product design, manufacturing procedures, supply chain, and logistics. Nike has reduced its waste to about zero, which has made it gain a competitive advantage. The company has also focused on sustainable business process, which has improved efficiency. When there is efficiency, the company has realized reduced costs due to renewable energy sources. Nike argues that going zero waste saved them about $300 million, and these changes have made the company create more opportunities for society. Nike's closed-loop ecosystem has made sure that restorative resources are safe from degradation. Additionally, zero waste initiatives have played the company in an excellent environmental, economic and social position, essential for long-term success. This is because consumers are more likely to buy goods are services from organizations that practice sustainability.

Sustainability of Change Initiative

Nike set a concrete case of utilizing sustainability as a reasonable driving force. The Zero campaigns have developed concrete grounds to adjust to global warming issues such as the release of contaminated air and a forced stream of cotton and leather. The company has utilized these similar sustainability guidelines and applied them in the evolving business, an essential tactical emphasis in the following five years.

Additionally, the company has also planned to raise its online trade to $8 billion to reduce massive supply chains. The development will expressively raise the number of parcels sold per day and be compounded by the number of purchases refunded (Larson & York, 2017). The development will tremendously reduce enormous wastes in the scheme. The company will utilize its sustainability finest guides in packing and distribution in the short-term. The company has hired a design company to assist in rethinking packaging, but the guidelines have not been fully seen in the mainstream. There is no doubt that the company expedites innovation on that front to increase its development wave.

Conclusion

Nike has revised its environmental strategies by initiating Zero Campaigns to improve its sustainability. The company's change initiative is to decrease climate change issues by utilizing sustainable resources such as raw material, water, and power. They have collaborated with numerous organizations such as Dye Coo and independent contractors to reduce the environment's adverse impacts. Their main objective is the zero discharge of hazardous emissions into the environment. Nike has realized its clients are becoming environment conscious and questioning companies that do not have sound sustainability procedures. Nike has ensured that the change initiative is within the client's interest and has become the basis of marketing methods.

References

Almiya, M. S., Kee, D. M., Bin Haron, M. Z., Bin Nasharudin, M. I., Bin Mohd Nasruddin, M. M., & Bin Mohd Johari, M. E. (2020). Consumption of plastic and sustainability efforts of Nike towards green environment.  International Journal of Applied Business and International Management 5 (1), 60-73.  https://doi.org/10.32535/ijabim.v5i1.768

Gupta, L., & Kaur Saini, H. (2020). Achieving sustainability through zero waste Fashion-A review.  Current World Environment , 154-162.  https://doi.org/10.12944/cwe.15.2.02

Hussain, S. T., Lei, S., Akram, T., Haider, M. J., Hussain, S. H., & Ali, M. (2018). Kurt Lewin's change model: A critical review of the role of leadership and employee involvement in organizational change.  Journal of Innovation & Knowledge 3 (3), 123-127.  https://doi.org/10.1016/j.jik.2016.07.002

Larson, A., & York, J. (2017). Nike: Moving down the sustainability track through chemical substitution and waste reduction.  Darden Business Publishing Cases , 1-4.  https://doi.org/10.1108/case.darden.2016.000215

Lee, E., Choi, H., Han, J., Kim, D. H., Ko, E., & Kim, K. H. (2020). How to “Nudge” your consumers toward sustainable fashion consumption: An fMRI investigation.  Journal of Business Research 117 , 642-651.  https://doi.org/10.1016/j.jbusres.2019.09.050

Rosenbaum, D., More, E., & Steane, P. (2018). Planned organisational change management.  Journal of Organizational Change Management 31 (2), 286-303.  https://doi.org/10.1108/jocm-06-2015-0089

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