SPAN OF CONTROL: This structural support, together with Nike’s organizational culture, helps the company in combating the financial and business developmental effects of competitors, such as Adidas, ASICS, Puma, and Under Armour. This flexibility is especially notable in how the company markets its products through company-owned NikeTown stores. Other divisions within Nike organizational structure are the subsidiaries’ and Nike licensing divisions. The purpose of the Audit & Finance Committee (the “Committee”) of the Board of Directors (the “Board”) of NIKE, Inc. (the “Company”) is to provide assistance to the Board in fulfilling its legal and fiduciary obligations with respect to matters involving the accounting, auditing, financial reporting, and internal controls of the Company and to oversee the financial policies and activities of the Company that may have a material impact on the results of operations or the financial position of the Company. Moreover, setting regional divisions at different places helps in promotion too. 18+ Risks and Disadvantages of Technology, How to Build Your Business Identity on a Tight Budget. Moreover, lack of coordination, which is highly likely, can prove to be fatal for the organization. We’re a strategy, business & marketing resource. In particular, the case highlights Nike's organizational structure that consists of a global matrix organization that is replicated at a regional level for the European market. The managers have an office in the headquarter of Nike which is located in USA. The matrix organizational structure of Nike accumulates advantages of all different types of organizational structures within it. How knowledge management mediates the relationship between environment and organizational structure. She also oversees Nike's Marketplace Partners organization and leads the Nike Brand's four geographies: North America; Greater China; Europe, Middle East and Africa (EMEA); and Asia Pacific and Latin America (APLA). The Nike environment is a two-way, matrix organization, where team members often report into two areas such as geography and a global function. Development and return on execution of product innovation capabilities: The role of organizational structure. Profits have grown 57% and Nike… Nike’s all-time popular slogan, “Just Do It,” is also featured in our best slogans list. This leads to confusion and conflicts, as to whose work should be given priority. Consequently, the firm’s tactic of employing creative and innovative ways to market their products is commendable. Nike’s organizational structure is a matrix structure. Moreover, there are functional departments under the Global corporate leadership, and there is also a team structure in the organization. To achieve that, we need all parts of our value chain to understand and deliver on our goals—from our leaders to product designers, to the employees in our stores, and workers in contracted factories who make our products. A strict organization or hierarchical structure is followed within the company to ensure that everything remains in order and that the responsibilities and roles are properly divided and distributed. A Organizational Chart showing nike. This is to make sure that the development and innovation keep happening in all products that Nike manufactures. Nike's Organizational Culture- Rodisel 1. On the other hand, the Nike licensing division, as its name suggests, controls the licensing of the Nike brand name. The global corporate leadership at Nike which involves corporate leaders makes sure to implement policies throughout the company that is, in all divisions. Nike’s organizational structure has global corporate leadership, which involves corporate managers. By continuing your navigation, you consent to their use. Employees must have the abilities to think outside the box and understand things from a local and global business perspective (Lukinate & Sondaite, 2017). The following are the main global leadership groups headed by a President, Executive Vice President, or Chief Officer: Semi-Autonomous Geographic Divisions. The company’s operations are divided into segments based on regional markets. Save my name, email, and website in this browser for the next time I comment. Other brands that Nike owns are Bauer, Hurley, and Exeter which also have the same structural characteristics as Converse. This allows them to become specialists in their particular field, makes them best for the job. Office of the President & CEO, Nike, Inc. Liao, C., Chuang, S. H., & To, P. L. (2011). See our Privacy Policy page to find out more about cookies or to switch them off. Het Nike-model heeft echter specifieke voordelen voor het bedrijf en draagt bij aan de lange levensduur als leider in de schoenen- en activewear-ruimte. Why Brand Architecture is Fundamental to Building Power Brands? Concepts from Chapter 15 and the organizational structure of the organization. Conceptual Provisions of Formation of the Quality Management System Within the Integrated Corporate Structure. This is the reason why you can find different variety of Nike products in your country in comparison to another country. Menguc, B., & Auh, S. (2010). The Converse is another footwear brand that Nike owns and management in its division controls its operations. Organizational Culture Characteristics: An Analysis, Nike Inc. SWOT Analysis & Recommendations, Nike Inc. Operations Management: 10 Decisions, Productivity, Nike Inc. Five Forces Analysis (Porter’s Model), Nike Inc.’s Marketing Mix (4Ps/Product, Place, Promotion, Price) - An Analysis, Nike Inc. 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In a matrix structure, the authority passes vertically as well as horizontally. Nike’s Organizational Structure MGT 330 July 12, 2010 Nike’s Organizational Structure Nike is a “Global marketer of athletic footwear” (Nikebiz, 2010) Nike operates in 160 countries and has many brands including Nike Golf and Air Jordan. These managers decide for the global organizational structure of Nike. This means that the tasks of each functional group are done quickly. The regional divisions are given autonomy in taking decisions in their regions. This not only increases their incomes but also motivates them to do even better. Nike was established to function under a matrix structure, in which dual lines of authority are created, functional and products are combined and then grouped together. The firm has chosen, from different types of organizational structures, the one that suits them the most. “We are fortunate to have built a strong and deep bench of talent across our organization. We have developed guidance and tools they can use to improve Human Resources Management (HRM) in their factories. Nike follows this organizational structure in the way that they group their divisions according to each sport. (2015). A major part of Nike’s success is due to Nike’s organizational structure. For example, the Global Sports Marketing group releases new athletic shoe marketing campaigns for worldwide marketing. NIKE’S ORGANIZATIONAL CULTURE BY: JEFF RODISEL 2. The matrix structure, as a whole, uses the scarce human resources of the firm very efficiently by employing a single person for more than one jobs. The Nike brand includes footwear, apparel and equipment in six core categories: running, basketball, football (soccer), women’s fitness, golf, and tennis, men’s training and sport culture.vii Nike products are sold through Nike owned stores and independent distributors in over 160 countries viii. Nike Air Zoom track shoes. d. New trend in contemporary organizational structure design makes chain of command lose its importance. Nike employees report directly to a product teams. The company has gone through several controversies including the child labor allegations in 1990, strike in Yue Yuen Industrial Holdings Dongguan shoe factory (China) in 2014, and so on. Anatomy of a paradox: Management practices, organizational structure and energy efficiency. Hence, this prevents them from doing any unethical or inappropriate thing that might harm the entire firm’s image. NIKE Founded in 1964 by Bill Bowerman and Phil Knight Headquarters located in Oregon Produces athletic footwear, apparel, sports equipment, and other sports and athletic products Currently worth over $90 billion Such regionalization promotes value chains that specifically fulfill customers’ expectations, especially in the area of service and marketing. This article may not be reproduced, distributed, or mirrored without written permission from Panmore Institute and its author/s. PESTLE analysis of Nike brand. The firm gets to know about the culture of people living there and it markets its products according to their culture’s liking. At NIKE, we excel as a team. The NIKE environment is a collaborative, matrix organization, where team members often report into two areas, such as a geography and a global function. Salimova, T. A., Biryukova, L. I., Makolov, V. I., & Levina, T. A. Nike Inc.’s organizational structure reflects the abilities and limits of the business in its operations. familiar with common problems and concerns in their Groups Nike has an organizational culture that encourages human resources to behave in ways that address business objectives. First, when a single person is working on more than one jobs, he is answerable to more than one bosses. 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.’s organizational structure’s characteristics support growth and stability. The company has subcontracted its most crucial operation, which is manufacturing itself. Copyright by Panmore Institute - All rights reserved. According to Flatworld Knowledge, Nike is a model of a successful company that uses this structure effectively. Content Theories: What Really Motivates Us. For example, the research and development department may be planning to conduct research on a new kind of product, but at the same time finance department feels that there is too much idle money and it invests the money somewhere. Over the year, Nike implements efficient innovation management structure that assists the company to … What is a Triple Net Lease? 4. They decide for the global corporate structure of Nike. We cover stories to empower you with the knowledge, tools & advice to help you thrive in life and business. In particular, aspects of regional management and the splitting of functions and responsibilities between global headquar-ters and regional headquarters in Europe are highlighted. In a matrix structure, there are multiple reporting lines and responsibilities for the employee. Structural and strategic alignment that considers these variations reinforces Nike’s competitive advantages, especially in penetrating regional markets. You need to focus on the external elements that influence the brand's activities. Adding to this, the teams within the organization might start having unhealthy competition amongst them to win over each other. Learn how your comment data is processed. This is because one department will not be aware of the plans of the other departments. The subdivision for EMEA, which Nike’s European headquarters manages, replicates this structure, while the U.S., the Americas and Asia Pacific locations are housed within the global headquarters’ oversight. … They promote the mindset of self-leadership, accountability, control, and self-development. Nike manages and structures its worldwide operations. From visiting public places to getting famous sports stars in their advertisements and holding shows with those sports stars to gain people’s attention. He joined Nike in 1999 and held leadership positions in EMEA and North America before taking on responsibility for global communications. Org chart highlighting visualizing the Nike organizational structure. Global corporate leadership has the advantage of facilitating control on the entire organization. Its Advantages and Disadvantages, Adaptation Level Phenomenon – understanding its importance, Risk Matrix – Factors of a risk matrix and how to implement it, Prioritization Matrix – Different types and how to use a prioritization matrix, Advantages of Nike’s Organizational Structure, Disadvantages of Nike’s Organizational Structure. Edit it online with your organizational information and import it as an image or PDF.--You can edit this template and create your own diagram. Profits have grown 57% and Nike’s market cap has more than doubled. This site uses Akismet to reduce spam. Organizational Structure Characteristics (Analysis) Updated May 8, 2016 Andrew Thompson Nike Inc.ʼs organizational structure reflects the abilities and limits of the business in its operations. There are slogans that everybody ends up memorizing, and some such as "if you have a body, you're at athlete" are the sort of inclusive, empowering slogans that the company uses to make its products attractive to a broad audience. (1996). Disseminative capacity, organizational structure and knowledge transfer. Nike responded by decentralizing authority and varying its product line. The unnecessary grudges and conflicts arising from this can be detrimental for the firm as well as the employees. Nike Organizational Structure By: Abby Huskey and Helena Harris Structure Efficiency Strengths ability and resources to make products managers have first hand information and experience with how their departments operate. An effective organizational management structure could contribute to the acceleration of the innovation in the contemporary business environment. On the other hand, it follows a divisional structure on the product basis. Corporate diversification and organizational structure: A resource-based view. This leads to wastage of money and other resources of the firm. The organizational chart of Nike displays its 145 main executives including John Donahoe, Matthew Friend and Andrew Campion × We use cookies to provide a better service. Secondly, the divisional structure leads to a duplication of duties within the firm. It is the world’s largest supplier of athletic shoes and apparel. De unieke platte structuur van Nike, de AKA-matrix, tart het traditionele CEO-met-meerdere-ondergeschikte model waar veel bedrijven van Nike's statuur op vertrouwen. The matrix structure of Nike also accumulates the disadvantages of all different types of organizational structures in it. 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