How does Nike evaluate its contract manufacturers?

Nike evaluates its contract manufacturers based on health and safety, environmental, and labor-management standards. This is part of their strategy approach. They review these criteria monthly. However, establishing the performance measures is the most challenging part of the process. Nike communicates these measures and holds themselves accountable to them. Business partners that meet Nike's goals can expect increased, higher-margin business and industry recognition for better performance.

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As a part of the initiative, Nike implemented a strategy approach, which means that contract manufacturers are being evaluated based on health and safety, as well as environmental and labor-management standards. Although Nike reviews its unique balanced scorecard criteria monthly, the company Director of Global Apparel and Corporate Responsibility, Mike McBreen, admits that the most challenging part of the process is establishing the performance measures. "We are communicating the set of measures by which we hold ourselves accountable," McBreen said. And in one of his corporate responsibility newsletters, McBreen wrote that business partners meeting Nike's goals will witness increased, higher-margin business and industry recognition for better performance.

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How does Nike's strategy approach enhance its business strategy?

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Nike's strategy approach enhances its business strategy by implementing a balanced scorecard system. This system evaluates contract manufacturers based on health and safety, environmental, and labor-management standards. This approach holds Nike accountable and ensures that business partners meeting Nike's goals will witness increased, higher-margin business and industry recognition for better performance.

What are the practical applications of the balanced scorecard in the apparel industry?

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The balanced scorecard can be used in the apparel industry to evaluate various aspects of a business, such as health and safety, environmental standards, and labor-management standards. It can help in holding the company accountable for its performance in these areas. Companies like Nike use it to review their performance on a monthly basis. The scorecard can also be used to incentivize better performance, as business partners meeting the set goals may witness increased, higher-margin business and industry recognition.

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