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Nike's Core Competency: The Risky Business of Fairy Tales

  • The MiniCase indicates that Nike's core competency is to create heroes. How did Nike build its core competency? Does it obey the VRIO attributes (valuable, rare, inimitable, and organized to capture value based on the resource-based view of the firm)?

Person-based and Value-based Behaviors

  • Traditional organizational competencies consisted of Job-based and Future-based approaches that focused on static or hierarchal driven behaviors defined primarily by "what needs to get done." (Cardy & Selvarajan, 2009, p. 240). However, Jack Welch favors a strategically dynamic, vigorous, proactive, and flat organizational structure because of its ability to dictate market behavior.
  • How do the Person-based and Value-based behaviors explained in Cardy & Selvarajan support Jack's principles? Using an organization with which you are familiar, identify which of these approaches the organization uses and how this impacts the effectiveness of the organization's core competencies. If the organization doesn't use them, how might using Person-based and Value-based approaches impact the effectiveness of its core competencies?

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