Nike organizational structure

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Nike Inc. An intensive strategy shows how a company grows. Founded inNike Inc. To keep its position and competitive advantage, Nike must ensure that its generic strategy and intensive growth strategies are always suited to current business conditions.

In this generic strategy, the company minimizes production costs to maximize profitability or reduce selling prices. In the late s, Nike reduced costs and the selling prices of its athletic shoes and other products. This generic competitive strategy helped the company regain its competitiveness, especially against Adidas.

For example, the company integrates cutting-edge designs for its shoes. Product Development. This intensive strategy involves the introduction of new products to grow sales revenues.

New technologies enhance the products and set them apart from the competition.

Organizational Design of Nike Essay Sample

In product development, these products remain attractive despite changing consumer preferences. Market Penetration. In this strategy, the company grows by increasing sales revenues in existing markets.

For example, Nike increases its stores and retailers in the United States to sell more athletic shoes to American consumers. However, market penetration is just a secondary intensive growth strategy because the company already has significant presence in the global market. The cost leadership generic competitive strategy empowers Nike to penetrate markets based on product affordability. Market Development. For example, Nike enters new markets in Africa and the Middle East to increase its shoe sales revenues.

Alongside product development, the company applies the market development intensive growth strategy by investing in new technologies to penetrate new market segments, such as segments composed of bodybuilders.

The generic competitive strategy of differentiation helps the company enter new markets, based on product attractiveness. This strategy involves developing new businesses to achieve growth. Nike implemented this intensive strategy in its early years, such as when it introduced apparel and sports equipment to its product mix.

Initially, the Nike brand was on athletic shoes only. We use cookies for website functionality and to combat advertising fraud. See our Privacy Policy page to find out more about cookies or to switch them off.

nike organizational structure

Skip to content.These differences are linked to region-specific demands of target customers, such as variations in the preferences for apparel based on sports popularity and climate. As such, Nike Inc. As one of the leading players in the athletic footwear, apparel and equipment industry, the company and its corporate structure serve as an example of how regional variations must be included in business strategies.

Nike Inc. The characteristics of its corporate structure provide Nike with flexibility to address consumer preferences for athletic shoes, apparel and equipment in regional markets. This flexibility is especially notable in how the company markets its products through company-owned NikeTown stores. Nike has a geographic divisional organizational structure. Global Corporate Leadership. For example, the Global Sports Marketing group releases new athletic shoe marketing campaigns for worldwide marketing.

The following are the main global leadership groups headed by a President, Executive Vice President, or Chief Officer:. Semi-Autonomous Geographic Divisions. Geographic divisions are a major organizational structure characteristic of Nike, Inc. Global Divisions for Converse and Brand Licensing. One global division is responsible for managing the worldwide operations of Converse, which is another footwear brand and subsidiary of Nike Inc.

Another global division is responsible for licensing the Nike brand. Global corporate leadership has the advantage of facilitating control on the entire organization. We use cookies for website functionality and to combat advertising fraud. See our Privacy Policy page to find out more about cookies or to switch them off.

Nike’s Organizational Structure: Pros & Cons

Skip to content. Nike Air Zoom track shoes. Previous Post Previous Nike Inc. Next Post Next Nike Inc. Organizational Culture Characteristics: An Analysis.We use cookies to give you the best experience possible.

As most of us might already know, Nike is a very popular sportswear and equipment manufacturer, based in the United States.

nike organizational structure

Once founded in as Blue Ribbon Sports, the company grew at an increasing rate and inchanged its name to the now more popular Nike.

Organizational design refers to the well-versed process by which people, information, technology, and resources in a company are integrated. It is made in such a way that the chances that the company will achieve success will be maximized, taking in to consideration various factors such as geographic or geological location, matrix, type of product and departmentalization. Based on the various criteria set by an organizational design, the basic structures needed by a company can be derived.

As for example, the Nike Company is a company which focuses on the manufacturing of sports shoes. Several infrastructures are needed in order to ensure the success of this company. One of these would be the research office. This takes care of basic researches such as the types of shoe designs, colors, materials, that would boom on the global market. Next to the research office should be a factory that focuses in minimizing the production cost.

The factory must also be based on a location in which manual labor can be achieved at low-cost, and where products can be easily exported and materials can easily be imported.

After this, there must be a marketing firm that would take care of the distribution of the product across the globe. Running in the background are the other parts of the company structure that takes care of the advertising, product promotions and endorsements, and other things that can keep the product popular to the target market.

As for deciding on the type of functional structure for Nike, the functional structure can be a good option. Since the company is focused in being dominant in the manufacture of a single given product line, which is athletic shoes and apparel, this type of structure can be used so that each sub-unit of the company will be extremely adept at performing its required task.

This type of structure will be economically efficient, and I believe will be effective for the company. The only possible downfall of this type of structure is that it lacks flexibility and there will be a difficulty in communication between functional areas, since each area is specialized in a specific task, and is most likely incapable of performing the task from other areas.

Anald, N. What is the right organizational design. Retrieved March 2,from. Common organizational designs. Nike organizational development. Sorry, but copying text is forbidden on this website. If you need this or any other sample, we can send it to you via email. By clicking "SEND", you agree to our terms of service and privacy policy. We'll occasionally send you account related and promo emails.

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Using our plagiarism checker for free you will receive the requested result within 3 hours directly to your email. Jump the queue with a membership plan, get unlimited samples and plagiarism results — immediately! A limited time offer! Get a custom sample essay written according to your requirements urgent 3h delivery guaranteed Order Now. References Anald, N.

All rights reserved. Copying is only available for logged-in users. If you need this sample for free, we can send it to you via email Send. Free Plagiarism Checker.Blue Ribbon Sports inand inthe company rebranded as Nike.

These brands have helped Nike establish a dominant retail presence. Appendix This index monitors quality, cost, delivery time and sustainability, and is frequently monitored each period. Suppliers who fall below a certain threshold — which they call the bronze level — have their contracts nullified. The company has long been known for their superior quality, reliability, and excellent designs. Furthermore, they capitalized. The six sections of the project are external environment analysis, S.

T analysis, executive interview, strategic and tactical plans and controls, structure, culture, and leadership style, and quantitative analysis.

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Nike sustains. A product orientation approach, which was previously effective for Nike, centers all the business activities on continually innovating, improving and refining its.

AIB will not accept assignments in any other format? AIB will not accept hardcopy assignments? Table of Contents Executive Summary 4 1.

Nike Inc. Organizational Structure Characteristics (Analysis)

Introduction 5 2. Strategic analysis 6 2. Strategic directions and strategic objectives 10 3. Key broad business-level and international strategies.

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Both Bill Bowerman and Phil Knight had an attitude of passion and would do whatever it takes to make it to the top. This attitude may have been developed. The apparel and equipment product segments offer a variety of products from shirts, pants, protective gear and many other sporting goods. Within the footwear segment, Nike has been a global leader in technology and style innovation. The company currently has over 44, employees and operates globally.

Investment Thesis At this time, Nike presents an interesting investment opportunity. With the consistent longevity of dividend increases coupled with the attractive.As a person you should know what are your priorities and goals so that it is easier for you to determine and decide when is the time to give up or go on.

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You only need to contact Mr. I just benefited for the sixth time a loan of thousand dollars for a period of months with the possibility of paying before the expiration date. Mr Benjamin has be helping me with loan. Make contact with him and you will see that he is a very honest man with a good heart. Friday, April 26, Organizational Structure of Nike. Nike is set up as a Matrix Organizational Structure, meaning that there are multiple lines of authority and some individuals report to at least two managers.

Throughout Nike, employees report to team managers who then relay the progress report to the department manager.

Each brand consists of it's own department and has separate department managers who act independently of the CEO. Team managers and employees make decisions regarding specification and production while department managers focus primarily on policy-related issues. Employees are entirely responsible to both of these managers. Globally, Nike is a very well-known brand. This use of the Matrix Structure allows Nike to make decisions and react much more quickly than your average department head, who is often removed from that decision making process.

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Overall, Nike is proof that a combination of the functional and divisional structures can be successful and produce endless possibilities in regards to short term and long term goals among an organization. Unknown September 11, at PM.Advanced Search. By continuing your navigation, you consent to their use. Learn more on Privacy Policy. Toggle navigation The Official Board. Business E-mail.

Lost password. Industries Sporting Goods companies including Nike Nike www. Add an executive. Last update 9 days ago. Anything missing? We search. Print or download. John Donahoe. Chairman Emeritus. Philip Knight. Chairman of the Board. Mark Parker. Cathleen Benko. Elizabeth Comstock. John Connors. Timothy Cook. Thasunda Duckett. Alan Graf. Peter Henry. Travis Knight.

Michelle Peluso. John Rogers. John Thompson. Andrew Campion. Digital Information. North America. Global Sports Marketing.

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Analysis of Nike's Innovation Management Structure

Notify me of new posts via email. Home Planning Organisation Environment: External Motivation References Organisation Nike organisation: The American Multinational Corporation Nike is specialized in the designing, developing, manufacturing, marketing and selling of footwear, apparel, equipment, accessories, recreational products and services all across the world.

Due to the wide scale of businesses Nike has developed a strong and effective organizational structure that ensures continuous innovation and improvement. The corporation is headed by: — — The Chairman of the Board of Directors jointly oversee the activities of Nike. The kind of organisation Nike uses shows that it applies the functional departmentalisation system whereby every department has a leader who derives his authority from the Chairperson and board members; this helps the focus on specific areas of interest.

Functional departmentalisation involves grouping work and workers into separate units, responsible for particular business functions or areas of expertise.

Nike’s 11 Management Maxims via Phil Knight

Advantages include: — work is done by highly skilled specialists; lower costs are incurred due to reduced duplication. Disadvantages include: — slower decision making, inter department coordination may be difficult, among others.

nike organizational structure

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