Internal Alignment and External Competitiveness for...

Internal Alignment is the set of strategies, policies and systems laid by an organization. They are also the relationship between jobs, skills and competencies in the organization. On the hand, external competitiveness refers to how an organization pays for jobs in relation to its competitors. For example, Adidas pays its employees in relation to Nike’s pay to its employees. The organization sets its pay limits with respect to the lower limit pay rate and upper limit pay rate (Hill Irwin, 11). According to Nike code of conduct, the organization uses both internal alignment and external competitiveness. This is because it pays minimum wage to its employees or the popular industrial wage. The organization compares the two rates and†¦show more content†¦Nike uses higher pay levels to attract professionals to the organization when they are recruiting. This method is efficient in acquiring the right people to carry out jobs for the organization. In the past, Nike has been criticized of poor pay for factory workers in the Asian countries where they operate. Nike has been working towards making changes by slightly improving the wages, but this has not been successful because employees continue to carry out strikes in these countries (Beder 24). Adidas on the hand is working on a structure, to retain and attract more employees who will bring their experience and boost production. Both organizations should improve the pay levels of their employees so that they can be committed and dedicated to their work/job. Nike is the leader among the shoe manufacturers in the world and is closely followed by Adidas. In terms of external competitiveness Nike still leads the pack because it combines both internal alignment and external competitiveness strategies to stay at the top. It is extremely important for both organizations, to pay employees at the rate that other organizations in the same industry are paying so as to meet its objectives, and avoid high employ ee turnover. Nike closed its US factories by 1984 and moved to Asia for cheap labor. When South Korea and Taiwan developed unions they moved to China, Vietnam and Indonesia which were still undeveloped. The same applies to Adidas which was based atShow MoreRelatedStrategic Analysis of Nike8813 Words   |  36 Pages------------------------------------------------- ------------------------------------------------- CONTENTS 1. Introduction 4 2.1. Vision amp; Mission 4 2.2. Company Portfolio 4 2.3. Nike Value Chain 6 2. Environment Analysis 3.4. Remote Environment Scan 7 3.5. Industry Environment Scan 10 3.6. 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