They learned that defensive strategy does not work and that you have to comply. You can't exploit workers because eventually it will catch up with you and someone will find out.
Nike has reached the strategic stage of learning while moving towards the civil approach. They have integrated societies values into their work place and they are border line civil because they are have one of the best models out there to follow and they are making great strides toward being the number one company to follow.
The first strategy to dealing with critics was defensive because he did not want to talk to the camera. Phil Knight also told the camera that they needed to go talk to a different person and it became a big circle of who to speak to about the poor factory situations. No one wanted to take responsibility for what was going on in Indonesia.
The labor compliance team hired costly professionals to audit many supplies overseas. They began to do reviews up the supply chain rather than going down. It was effective because they were able to find the root of the problem. This was effective because they were able to break the problem all the way down before they began to look for a solution. They were able to find the problem this way. This involved a bunch of different companies to included NGO's and the CEO's.
As time has passed Nike has made strides everyday to fix the problems. In July of 2000, Phil Knight was the only American CEO to attend the launch of global compact, which was a conference designed to better company globalization.
Twins: October 2009 Archives
Strategic change and the role of interests, power, and organizational capacity
By Amis, Slack, & Hinings
Two Recommendations:
Power:
1.) Leaders better specify the job for each person.
2.) Work on communication, so that everyone is on the same page and understand their role for the job.
3.) Distributing the power as necessary right away, to help understand where everyone stands in power. Needs to be made clear right away that the volunteers were not in charge and the administrators were.
Interest:
1.) To keep the volunteers and employees in the loop. Pay attention to interests of different groups/sub units, so that everyone is on the same page and have a say in what goes on.
2.) Could have gone through and made sure everyone was comfortable with the change and was able to make the change.
Capacity to Change:
1.) Volunteers need to be taught and shown that change is needed, so they are more able to just comply with what was needed.
2.) Use your resources to solve your problems rather than just giving up. Increases technical strength and communication.
