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  • Subject area(s): Marketing
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  • Published on: 14th September 2019
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From: Kianna Gousby Word Count: 999

To: Management

Date: Wednesday, November 16, 2016

Re: Evaluation of semi-virtual organization and future recommendation using CAGE framework

Key Issues:

While Nike was ultimately successful at integrating their new campaign, they did face some key issues. The teams reorganization was incredibly slow and Nike had a strong belief that the success of the global women\'s line would impede upon the men's lines. When crafting an integrated multi-national strategy into a company, managers must look at the operational differences and needs between the international and regional teams which was not accurately assessed. Thus, I have based my analysis and framed some key issues within this new strategy implementation around certain aspects of the CAGE framework.

Cultural Distance:

Different languages - Team members had different dialects which could have impeded their processes.

Different values - What is acceptable to one region or country may not be acceptable to the other.

Administrative and Political Distance:

Lack of common currency - Translating pricing and costs would differ per country. What may be viewed as inexpensive in one country could be expensive in another. This could affect pricing of products.

Geographic Distance:

Difference in time zones - This affects when team meetings occur and who is available to attend them. May not work in the team\'s favor in terms of communication.

Economic:

Differences in cost of quality - Conversion rates differ per country. Finding a price that suits everyone could be timely.

Evaluation of strategy implementation:

The team was successful in regard to the implementation of the new strategy. They conducted thorough research into consumer behaviors and succeeded with their consumer-oriented approach in this segment. The implementation time could have been shorter had the structure of the organized team been different. Having a semi-virtual and global team is great for fostering new and diverse ideas, however, it is less than ideal for conducting business and working on such a large project that needs a great deal of attention. Executives believed that the success of the women's line of products would negatively affect the men's business was inaccurately assessed and aided in the late start of the project. The team established their profitability standards and examined performance through net profits, EPS, ROI, evaluating competitive position in US and global markets, sales and asset growth. This is important when implementing a new strategy as it will affect the company's bottom line.

Advantages of semi-virtual organization:

Diversity amongst team members results in diversity among ideas that are fostered within the team. With team members being from different countries and regions, they offer different perspectives and values that can be useful when fostering and creating a new strategy especially in regard to the global aspect of this particular business segment.

Semi-virtual organized teams saves on travel expenses and time. If Nike were to organize frequent meetings between its Nike Global Women's Fitness team members it would cost them a lot of money. Traveling internationally is very timely it saves time to have team members be able to have an online or phone call conference with one another.

Team members can still be assigned to other projects. Due to the virtual dynamic of the team, members could focus on other projects they had in their respective regions or countries and be on concurrent teams.

Disadvantages of semi-virtual organization:

The shift in Nike's approach to organizing the team to create and implement the new strategy resulted in differing priorities between the regional and international teams. There was a lack of sole dedication and amount of time  to global women\'s fitness from organization members. On page 15 of Nike's Global Women's Fitness, Winslow states “ One of the challenges was that almost every person on the [people] map had multiple responsibilities. So they weren't just dedicated to women's.” Nike understood that team members had other priorities and were limited in travel due to multinationality of team members, thus implementing a semi-virtual organization to ease that. It worked against them as members found it difficult to prioritize their projects.

Scheduling meeting times that coincide with everyone\'s schedules and time zones proved to be difficult for the team. With difference in time zones and daily schedules, the full team could not meet as they needed. Team members ideas may not have been able to be shared. This also resulted in people not being updated with progress on the new strategy which can cause miscommunication within the organization.  

Lack of verbal and nonverbal cues such as eye movement, voice, body language, and facial expression. These cues aid in better communication and understanding across the team which is beneficial in face to face meeting. There may be a team member with some opposition to an idea that another team member had but with the lack of a face to face interaction a team member will not be able to pick up on this opposition. In that same regard, if a team member has an idea that everyone loves but has to present that idea in an e-mail that may not get responded to in a timely manner, that team member may feel discouraged by lack of timely response.

Recommendations:

Build a special team to create and implement new strategies where team members sole focus is the project that they are assigned to work on. This allows for a more speedy process as it will be the team members only concern. Throughout the case we learn that the organization had difficulties scheduling meetings and generally being on the same accord as the team members had other priorities and projects they were focusing on. Implementing a new strategy is something that should be given the full attention of the team working on it.

Partner with a fitness center or specialized work out facility (such as Planet Fitness or SoulCycle) and be their corporate sponsor. Nike could partner with one of these companies and sell their clothing and equipment within their locations. Nike could conduct marketing research to determine which gyms and facilities women are most likely to frequent and target those place to increase brand awareness. Often you see that gym-goers forget certain equipment or clothing items and it would be an opportunity for Nike to be able to step in and fix consumers problems.

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