Nordstrom Sustainable Competitive Advantage

997 Words4 Pages
Producing sustainable competitive advantage through the effective management of people Achieving competitive success through people involves altering how we think of the workforce and the employer-employee relationship. It means working with people together and not replace them or limit their scope of activities. The organization should see its workforce as a strategic advantage rather than a cost to be minimized or avoided. Firms that take this perspective are often able to achieve success and outperform their rivals. In order to earn high economic returns, the companies should have some sustainable competitive advantages something that distinguishes them from their competitors, provide positive economic benefit and is not duplicated. The…show more content…
The store compensates its employees so that they are happy and work harder to meet its sales target and earn profit. Many competitors of Nordstrom saw the success rate and they also initiated the compensation benefits for their employees. Thirteen practices to manage people: There are some policies and practices that have emerged from extensive reading and talking to people. They are: 1. Employment security: if employees feel that they are secure in the job that they are doing they perform better and give extra effort towards the organization. The employees have some assurance that their job is secure. 2. Selectivity in recruiting: the organization has to select the right person for the job. There are various methods by which an employee can be selected. Every company has its own ways and methods to conduct these test for selection. 3. High wages: if the organization wants to recruit the best employees and want them to stay in the organization it is very important that they give them right salaries for the right designation. High wages tend to attract more applicants, giving the organization wide berth to select better candidate. Nordstrom pays its people an hourly wage higher than the prevailing…show more content…
Promotion from within: now a days most companies prefer to give promotion from within the organization. The company feels that rather than hiring an employee from outside its better to promote the employee who is familiar with the working of the organization and know the company in and out. Taking the long view The disadvantage of achieving results from workforce is that it takes too much of time. It’s a slow process. To achieve results the employees first need to be trained taught how to work on the project or how to use a particular machinery etc. Whereas if it’s a machinery the work can be done in half the time done manually. The good news is however that once achieved , competitive advantage obtained through employment practice is likely to be substantially more enduring and more difficult to duplicate. But to imply these practices and start seeking results means that a long term perspective is needed. Measurement of the practice Measurement is a critical component of any organization. Measurement serves several functions. First it provides feedback as to how well the organization is implementing various policies. Second , measurement ensures that what is measured will be noticed. “out of sight out of mind” is the principle that applies to organizational goals and practices as well as to
Show More
Related

  • What Is Nordstrom's Competitive Advantage?

    2200 Words  | 9 Pages

    competitors motivate their competitive behavior which is important for strategy formulation. (Mack, 2015) Department stores and eating places industries is highly competitive and requires that organizations maintain a competitive advantage in order to remain successful. Competitive advantage in customer satisfaction. Industries with higher achieved competitive advantages in customer engagement and loyalty are three times more likely to have increased revenues. (Daunis, 2015) In competitive global economies

    Read More

  • Starbucks Market Expansion Strategy

    861 Words  | 4 Pages

    opposed to a pure licensing strategy. Having elements of joint ventures can provide Starbucks with an increased ease of entry into the foreign market. The three main potential benefits of joint ventures are that Starbucks can protect their sustainable competitive advantage, reduce their financial risk and get the benefit of knowing how well the US product will do in the foreign market through local

    Read More

  • Consumer Perception In The Textile Industry

    10057 Words  | 41 Pages

    CHAPTER: 1 INTRODUCTION 1.1 INTRODUCTION OF THE TOPIC BROAD AREA OF THE STUDY Consumer awareness of covering the customer the impression that awareness and consciousness about the company or its products. Customer perception is usually affected by advertising, reviews, public relations, social media, personal experiences and other channels. Perception is broader. It is a complex process, and the fact that a person in which to stimulate the surrounding tissue and has a meaning to it. Perception describes

    Read More

More about Nordstrom Sustainable Competitive Advantage

Open Document