Considerations for Human Resource Management Following Sportsman’s Competitive Strategy Shift

Analyze the Case Study for Competitive Strategy at Sportsman Shoes on page 24 of your textbook. Prepare a paper answering the following questions:

1. Following Sportsman’s shift in competitive strategy, what are some considerations for the company’s human resource management practices?

2. What kind of challenges do you think that Sportsman’s faces specifically in the area of compensation?

****Support your analysis with at *least two RECENT scholarly sources* to substantiate your insights.

  • The analysis should be presented in APA format.
  • The analysis should be 3-5 pages in length, excluding the title page, abstract, and references.
  • The “Applied Assignments Scoring Rubric” in the attachment.

Case 1: Competitive Strategy at Sportsman Shoes

Sportsman Shoes has been a leader in the shoe industry for more than 30 years. Sportsman manufactures and sells athletic shoes for all types of sports. The company has pursued a low-cost strategy to sustain its success. It sells a limited number of shoe designs and has held costs low through manufacturing efficiency and standardized operations. However, the past years have been a struggle at Sportsman. The shoe market has seen a rise in the availability of low-cost imported shoes that has threatened Sportsman’s competitive position. As a result, company executives have decided it is time for a strategy shift.

Sportsman executives have done extensive market research and determined that many niche athletic shoe markets exist where athletes are willing to pay more for shoes designed to meet the unique needs of their sport. There are very few competitors in these niche athletic shoe markets, and most do not have Sportsman’s experience in keeping control of manufacturing costs. Sportsman has determined that, with talented shoe designers in place, they can manufacture athletic shoes to meet the needs of the niche markets using their current manufacturing facilities and employees. By designing shoes that have features that differ from competitors and meet the specific needs of a new group of customers, Sportsman believes the company can create a competitive advantage. Further, while their shoes will not be as low cost as they were in the past, they will likely be able to sell their shoes for less than market competitors and still make a healthy profit.

Therefore, Sportsman has decided to shift from its current low-cost strategy to a differentiation strategy and will begin production to make specialty athletic shoes. Sportsman must now make many tactical decisions in various functional areas of the company to support its decision to shift its overall business strategy. Its priority is to restructure the product development function. As it will need to understand the needs of the niche markets and design shoes to meet those needs, it will need to hire and retain talented shoe designers. The company will also need to hire operations specialists to transition its manufacturing operations to produce the new shoe designs. Beyond hiring new staff, Sportsman also must consider the implications for current employees to help them successfully transition to their new work requirements. Therefore, there are several considerations the company must address in human resource management.

*** TEXTBOOK AUTHOR: Martocchio, J. (2020). Strategic Compensation: A Human Resource Management Approach. Boston: Pearson Education.

Solution

Abstract

This paper analyzes the shift in competitive strategy at Sportsman Shoes and its implications for the company’s human resource management (HRM) and compensation practices. The transition from a low-cost to a differentiation strategy requires strategic realignment in talent acquisition, training, and performance management. It also introduces significant challenges in compensation, such as ensuring equitable pay, managing a larger compensation budget, and offering non-monetary benefits. The analysis is supported by recent scholarly sources to underscore the importance of aligning HRM practices with the company’s new strategic direction.

Introduction

Sportsman Shoes has maintained its leadership in the athletic shoe industry for over 30 years through a low-cost strategy and standardized operations. However, recent market conditions—namely, the rise of low-cost imports—have forced the company to reassess its competitive position. To regain its market advantage, Sportsman is shifting from a cost leadership strategy to one of differentiation, targeting niche markets with specialized athletic shoes. This strategic shift necessitates changes across multiple functions, particularly in human resource management (HRM) and compensation practices. This paper discusses the HRM considerations Sportsman must make to support its new strategy, along with the specific challenges it will face in compensation as it transitions to differentiation.

HR Management Considerations for Sportsman Shoes

As Sportsman shifts its strategy, HRM practices must be updated to align with the company’s new objectives. The key areas of focus include… Please click on the Icon below to purchase the full answer at only $10

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