logging in or signing up Team Ideation Nike Offshoring cmshamp Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 764 Category: Education License: All Rights Reserved Like it (0) Dislike it (0) Added: March 31, 2009 This Presentation is Public Favorites: 0 Presentation Description No description available. Comments Posting comment... Premium member Presentation Transcript Offshoring : Offshoring Nike and the Footwear and Apparel Labor Market iMBA 544 – HR Management Team Ideation Offshoring : Offshoring Production relocation across national boundaries to take advantage of cost savings and other benefits in countries where products or services can be produced more efficiently. (Cheung, Rossiter, Zheng, 2008) Pros & Cons : Pros & Cons Pros Reduced Labor Costs Improved Proximity to Materials Superior Cultural Work Ethic Cons Cultural Differences Cost of Monitoring a Global Supply Chain Key Outcome Variables : Key Outcome Variables Labor Cost Relative Labor Sources Logistics Cost Relative Socio-Political Risk Profiles Potential Cost Savings : Potential Cost Savings Companies that globalize their cost structures to include low-cost countries can realize savings of 20-40% in the landed costs of their products. (Boston Consulting Group, 2004) Relative Labor Costs : Relative Labor Costs Nike : Nike Market Cap of $21.6 BB 2008 Revenue $18.6 BB 2008 EBIT $2.5 BB Nike Labor Breakdown : Nike Labor Breakdown Labor Availability : Labor Availability Right HR Costs : Right HR Costs Huselid’s HR Scorecard Benchmark industry labor force split Nike is a leader in apparel and footwear manufacturing To remain competitive, Nike must not trail the industry norms for labor cost Potential Savings Erosion : Potential Savings Erosion Recommendations : Recommendations No Cost advantage to move manufacturing to U.S Nike can not afford to bring jobs home Nike 2008 EBIT was $2.5 BB US labor force = $6BB-$12BB increase Huselid’s scorecard signals imbalance Recommendations : Recommendations Strong alignment with Huselid’s HR Scorecard - Policies in line with business strategies - Assessment tools - Tailored HR management programs Recommendations : Recommendations Stick to offshore labor for production activities Nike can still employ in the US New technology can reduce overtime in offshore factories Engineers, product development, technological advances Questions & Answers : Questions & Answers Thank you for your time this evening. You are invited to present any questions at this time References You do not have the permission to view this presentation. In order to view it, please contact the author of the presentation.
Team Ideation Nike Offshoring cmshamp Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 764 Category: Education License: All Rights Reserved Like it (0) Dislike it (0) Added: March 31, 2009 This Presentation is Public Favorites: 0 Presentation Description No description available. Comments Posting comment... Premium member Presentation Transcript Offshoring : Offshoring Nike and the Footwear and Apparel Labor Market iMBA 544 – HR Management Team Ideation Offshoring : Offshoring Production relocation across national boundaries to take advantage of cost savings and other benefits in countries where products or services can be produced more efficiently. (Cheung, Rossiter, Zheng, 2008) Pros & Cons : Pros & Cons Pros Reduced Labor Costs Improved Proximity to Materials Superior Cultural Work Ethic Cons Cultural Differences Cost of Monitoring a Global Supply Chain Key Outcome Variables : Key Outcome Variables Labor Cost Relative Labor Sources Logistics Cost Relative Socio-Political Risk Profiles Potential Cost Savings : Potential Cost Savings Companies that globalize their cost structures to include low-cost countries can realize savings of 20-40% in the landed costs of their products. (Boston Consulting Group, 2004) Relative Labor Costs : Relative Labor Costs Nike : Nike Market Cap of $21.6 BB 2008 Revenue $18.6 BB 2008 EBIT $2.5 BB Nike Labor Breakdown : Nike Labor Breakdown Labor Availability : Labor Availability Right HR Costs : Right HR Costs Huselid’s HR Scorecard Benchmark industry labor force split Nike is a leader in apparel and footwear manufacturing To remain competitive, Nike must not trail the industry norms for labor cost Potential Savings Erosion : Potential Savings Erosion Recommendations : Recommendations No Cost advantage to move manufacturing to U.S Nike can not afford to bring jobs home Nike 2008 EBIT was $2.5 BB US labor force = $6BB-$12BB increase Huselid’s scorecard signals imbalance Recommendations : Recommendations Strong alignment with Huselid’s HR Scorecard - Policies in line with business strategies - Assessment tools - Tailored HR management programs Recommendations : Recommendations Stick to offshore labor for production activities Nike can still employ in the US New technology can reduce overtime in offshore factories Engineers, product development, technological advances Questions & Answers : Questions & Answers Thank you for your time this evening. You are invited to present any questions at this time References