Under the matrix structure, Nike’s organizational culture is focused on creativity and innovation. We use cookies for website functionality and to combat advertising fraud. Nike’s organizational structure is one of the best organizational structure examples in the world. Key Facts & Figures Nike aims to be a brand with purpose that moves the world forward. Under this leadership comes a functional structure that divides finance, global human resources, product & merchandising, administration &legal, global sports marketing, and operations departments. Learn how your comment data is processed. Global Milk brands in 2020 – What makes them successful? A close check is kept on these divisions. Despite changes in the market environments, Nike has stuck to its decentralized and networked organization structure. (2012). Each regional division’s managers optimize operations in the regional sports shoes, apparel and equipment market. Being a prospector, Nike 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. Geographic divisions are a major organizational structure characteristic of Nike, Inc. In Nike’s case, the corporate structure highlights the need to address differences among regional markets. 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. Other brands that Nike owns are Bauer, Hurley, and Exeter which also have the same structural characteristics as Converse. Corporate diversification and organizational structure: A resource-based view. (2015). Moreover, there are functional departments under the Global corporate leadership, and there is also a team structure in the organization. First, the regional divisional structure allows Nike to provide different goods in different regions in relation to the preferences of people in those regions. With our Nike case study analysis, you can have a better understanding of these areas. Types of Branding: Learn more about branding and its significance. Nike Organizational Structure Chart Nike, Inc. President and CEO (John J. Strong human resources policies and capable, qualified management are essential for all Nike suppliers to be compliant with the law and our Code Leadership Standards. NIKE, Inc. today announced management and organizational changes to drive continued growth. Secondly, the divisional structure leads to a duplication of duties within the firm. Through this feature of Nike’s organizational structure, decisions are easily implemented throughout the company. panmore.com/nike-inc-organizational-structure-characteristics-analysis Best Green Tea Brands in the world in 2020: What makes them the best? 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. Salimova, T. A., Biryukova, L. I., Makolov, V. I., & Levina, T. A. In a matrix structure, there are multiple reporting lines and responsibilities for the employee. 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. Nike’s organizational structure has the following regional divisions: Global Divisions for Converse and Brand Licensing. All the departments of a functional structure come under the president. The Matrix Structure and Nike Nike is a powerful example of corporate culture because Parker is serious about reinvigorating his organization on a regular basis. Consequently, the firm’s tactic of employing creative and innovative ways to market their products is commendable. By continuing your navigation, you consent to their use. Training programs are designed to uphold such corporate culture that aligns with the Nike brand image for sports footwear, apparel and equipment. This allows them to become specialists in their particular field, makes them best for the job. 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. But there is a limitation to that autonomy. Profits have grown 57% and Nike… In relation, the organizational structure supports initiatives and strategies contained in Nike’s marketing mix or 4P. Anatomy of a paradox: Management practices, organizational structure and energy efficiency. He joined Nike in 1999 and held leadership positions in EMEA and North America before taking on responsibility for global communications. Revenue from the Jordan brand fell by around 8% (9% decline on a currency-neutral basis) in 2018 compared to 2017. An effective organizational management structure could contribute to the acceleration of the innovation in the contemporary business environment. View Nike's Organizational Chart.docx from ORG 535 at University of Phoenix. The matrix organizational structure of Nike accumulates advantages of all different types of organizational structures within it. Disseminative capacity, organizational structure and knowledge transfer. In particular, aspects of regional management and the splitting of functions and responsibilities between global headquar-ters and regional headquarters in Europe are highlighted. Office of the President & CEO, Nike, Inc. Liao, C., Chuang, S. H., & To, P. L. (2011). This is to make sure that the development and innovation keep happening in all products that Nike manufactures. Nike has an organizational culture that encourages human resources to behave in ways that address business objectives. Nike Air Zoom track shoes. Nike's Organizational Culture- Rodisel 1. You can edit this Organizational Chart using Creately diagramming tool and include in your report/presentation/website. The organisational culture at Nike is reinforced in a number of ways. Nike’s organizational structure also has two global divisions: one for the Converse brand and another for brand licensing. According to Flatworld Knowledge, Nike is a model of a successful company that uses this structure effectively. 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. The managers have an office in the headquarter of Nike which is located in USA. Prior to Nike, he worked at Edelman in Brussels, representing and advising clients on the WTO, EU relations, corporate reputation, issues … You need to focus on the external elements that influence the brand's activities. Nike has a geographic divisional organizational structure. Nike employees report directly to a product teams. Org chart highlighting visualizing the Nike organizational structure. The company’s operations are divided into segments based on regional markets. 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’s wholesale equivalent revenue from ‘Running’ products grew to $5.2 billion in 2018 from $4.9 billion in 2017. d. New trend in contemporary organizational structure design makes chain of command lose its importance. Nike’s organizational structure is a matrix structure. They decide for the global corporate structure of Nike. The matrix structure of Nike also accumulates the disadvantages of all different types of organizational structures in it. Martin, R., Muuls, M., de Preux, L. B., & Wagner, U. J. An effective organizational management structure could contribute to the acceleration of the innovation in the contemporary business environment. Structural and strategic alignment that considers these variations reinforces Nike’s competitive advantages, especially in penetrating regional markets. 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. For example, the Global Sports Marketing group releases new athletic shoe marketing campaigns for worldwide marketing. A Organizational Chart showing nike. Nike Inc. Generic Strategy & Intensive Growth Strategies, Nike Inc. However, a disadvantage of Nike’s organizational structure is the limited approach to managing the operations of Converse. Nike Inc.ʼs organizational structureʼs characteristics facilitate control and flexibility in the business. A major part of Nike’s success is due to Nike’s organizational structure. Nike Inc.’s organizational structure reflects the abilities and limits of the business in its operations. The NIKE environment is a collaborative, matrix organization, where team members often report into two areas, such as a geography and a global function. Over the year, Nike implements efficient innovation management structure that assists the company to … The regional divisions are given autonomy in taking decisions in their regions. Nike's adopted a matrix kind of structure which is based on a geographical divisional organizational structure. We’re a strategy, business & marketing resource. Copyright by Panmore Institute - All rights reserved. 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 The notable features of the Nike organization include; worldwide collaborate management, semi-autonomous geographic divisions and global divisions for converse and licensing of brands … If you wish to know and understand this hierarchical structure better, you can go through the following given information. 4. (1996). 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. 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. Nike aims to be a brand with purpose that moves the world forward. Nike Inc.’s organizational structure’s characteristics support growth and stability. 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. From visiting public places to getting famous sports stars in their advertisements and holding shows with those sports stars to gain people’s attention. These managers decide for the global organizational structure of Nike. The research plan may face postponement due to low funds. Nike follows geographical divisional structure to facilitate customers in different areas. For GDPR compliance, we do not use personally identifiable information to serve ads in the EU and the EEA. … An organizational structure defines task delegation, and line authority establishment within an organization. Profits have grown 57% and Nike’s market cap has more than doubled. 18+ Risks and Disadvantages of Technology, How to Build Your Business Identity on a Tight Budget. This is because one department will not be aware of the plans of the other departments. Adding to this, the teams within the organization might start having unhealthy competition amongst them to win over each other. Employees must have the abilities to think outside the box and understand things from a local and global business perspective (Lukinate & Sondaite, 2017). A matrix structure is made up of different types of organizational structures. Nike’s revenue from the Running category has grown by 7% from 2017 to 2018 (5% on a currency-neutral basis). This case describes how Nike, a consumer goods company with an ever expanding portfolio and a tremendous brand value, manages the tradeoff between local responsiveness and global integration. “We are fortunate to have built a strong and deep bench of talent across our organization. The Converse is another footwear brand that Nike owns and management in its division controls its operations. In a matrix structure, the authority passes vertically as well as horizontally. 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. 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