There is no manufacturing of standard products for the entire world’s population. The company also owns subsidiaries like Hurley International, Brand Jordan and Converse. The firm has chosen, from different types of organizational structures, the one that suits them the most. According to Flatworld Knowledge, Nike is a model of a successful company that uses this structure effectively. The diagram shown above highlights the structure of Nike in terms of geographic distribution in different regions in the EMEA. We cover stories to empower you with the knowledge, tools & advice to help you thrive in life and business. Determine whether a matrix structure could improve performance for Nike. 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. This leads to wastage of money and other resources of the firm. Under this leadership comes a functional structure that divides finance, global human resources, product & merchandising, administration &legal, global sports marketing, and operations departments. … Moreover, it can also help you to understand how a multi-nationally diverse company like Nike is structured. 5. 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 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. In a matrix structure, the authority passes vertically as well as horizontally. Nike Inc.ʼs organizational structureʼs characteristics facilitate control and flexibility in the business. It is the world’s largest supplier of athletic shoes and apparel. The matrix structure cancels out the extremes of the two structures to balance them somewhere in between. The research plan may face postponement due to low funds. Consequently, the firm’s tactic of employing creative and innovative ways to market their products is commendable. The hierarchical structure of Nike can be broken down into three key segments, which are Global Headquarters, Regional Headquarters and Subsidiaries.This hierarchical structure allows the company to maintain a globalized approach to managing its business while ensuring regional control. The operations of each division are separate from each other. The success of an organizational structure largely depends on the leadership styles and the organizational culture. Moreover, it also reduces the reporting lines, which leads to better coordination and enhances decision making. This is to make sure that the development and innovation keep happening in all products that Nike manufactures. Many organizations experiment with the structure of the company. The global headquarter also holds the responsibility of market research, and product development, especially for the footwear segment. Why Brand Architecture is Fundamental to Building Power Brands? Adding to this, the functional structure helps in enhancing the best form the workforce. The matrix structure of Nike also accumulates the disadvantages of all different types of organizational structures in it. Nike: The Organizational Structure Of Nike 1033 Words | 5 Pages. Moreover, there are functional departments under the Global corporate leadership, and there is also a team structure in the organization. Nike’s Organizational Structure Type and Features Nike has a geographic divisional organizational structure. Assess whether Nike’s organizational structure is still a major strength that contributes to its success, or if it is creating problems that will call for organizational design changes in the future. The Nike sportswear company is organised in a matrix organizational structure, more commonly known as a flat organizational structure. Enter your email address below to subscribe to my newsletter. At present, the brand of Nike is valued at USD 32 billion, with the largest market share in the global apparel sector. The firm gets to know about the culture of people living there and it markets its products according to their culture’s liking. Type above and press Enter to search. The Matrix Structure and Nike. Nike is an American multinational company producing equipment, footwear, clothes, and accessories. First, when a single person is working on more than one jobs, he is answerable to more than one bosses. Matrix organizational structure is an overlap between the functional and divisional structures. Moreover, setting regional divisions at different places helps in promotion too. The independence of decision making and operational autonomy allows these subsidiaries to function free from the strict control of the global and regional headquarters. Specify the page count, deadline, academic level and other variable to quickly find out the cost of your essay. The success of the company can be largely attributed to it product and marketing strategy, but it can be also attributed to its organizational structure. A matrix structure is best suitable for Nike. Nike is organized by a matrix structure, which entails multiple responsibilities and report- ing lines for each unit which might be problematicxxx. Strengths of Nike's Innovation Management Structure Over the year, Nike has been able to achieve a superior performances using matrix innovative management structure. But there is a limitation to that autonomy. The new structure is designed to be flatter and more efficient. This can help you to prepare your own paper on Nike without any essay writer help. Edit it online with your organizational information and import it as an image or PDF. The following characteristics are notable in Nike’s organizational structure: Source . By creating sub-regions can help in streamlining the operations of the company. Nike’s annual revenue hit $24 billion last year, a 60% increase since he took the reins as CEO in 2006. Nike: Spreading Out to Win the Race 0 Organizational charts Nike is a mechanistic organization. Nike is an American multinational company producing equipment, footwear, clothes, and accessories. Therefore, each of them will have to follow their own product development and marketing communication strategies. It not only brings about efficiency but also reduces the chances of error. On the other hand, the Nike licensing division, as its name suggests, controls the licensing of the Nike brand name. Learn how your comment data is processed. Nike can be considered as a truly global brand which has been able to climb to the top position while facing steep competition from other market players like Adidas, Under Armour and Puma. All the departments of a functional structure come under the president. 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. This leads to confusion and conflicts, as to whose work should be given priority. Even though there are multiple reporting authorities, the employees are well-aware of what is expected from them from their supervisors. The geographic regions in the EMEA are segregated into subregions for better management and control. Nike’s organizational structure is a matrix structure. Hence, this prevents them from doing any unethical or inappropriate thing that might harm the entire firm’s image. These subsidiaries take most of the decisions themselves, with authorization from the headquarters. Penmypaper.com. Nike follows a matrix organizational structure which is a combination of horizontal and vertical structures. The centralized decision-making structure of Nike helps the firm to streamline its information processing and focus on areas which matter the most. Nike operates in nearly 170 countries with more than 75,000 employees, selling its products under a dozen of its own brands such as Air Jordan, Nike+, Nike Pro, Nike Golf, Air Force 1, among several others. It is important to understand that each of these subsidiary brands appeal and cater to different groups of customers. Training programs are designed to uphold such corporate culture that aligns with the Nike brand image for sports footwear, apparel and equipment. Ans. The regional divisions are given autonomy in taking decisions in their regions. 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. Nike Air Zoom track shoes. On the other hand, it follows a divisional structure on the product basis. This strategy provides Nike suppleness for attending consumer's different preferences on sports attires in different markets at different regions of the world (Burgelman, 2016). This not only increases Nike’s sales, but it also helps it to enforce its brand image all across the world by not letting the competitors settle in. In this article, we have showcased the organization structure of Nike, which can be used as a case study for your college essay. Secondly, the divisional structure leads to a duplication of duties within the firm. Sub-dividing the markets also provide better support for each individual markets. Creately diagrams can be exported and added to Word, PPT … Nike Case Study Analysis. The global corporate leadership at Nike which involves corporate leaders makes sure to implement policies throughout the company that is, in all divisions. The diagram above showcases the key individuals in operating in the global headquarters and are responsible for taking all the centralized decisions of the company. Global Milk brands in 2020 – What makes them successful? : The organisational structure of the world's biggest sports goods manufacturers is a reflection of their operational abilities and limitations. The matrix organizational structure is also followed at the sub-regional level. This means that the tasks of each functional group are done quickly. While this organizational structure allows Nike to respond to local consumer tastes it also ensures that the company benefits from integration advantages such as global marketing and sourcing. This is only possible with a centralized structure. The global headquarters is the top of the hierarchical ladder, where all the major decisions about the company’s business operations are taken. Nike is known for a complex organizational structure that it describes as a matrix. North America, Western Europe, Central & Eastern Europe, Greater China, Japan and Emerging markets are the regional divisions of Nike structure. Other divisions within Nike organizational structure are the subsidiaries’ and Nike licensing divisions. The Matrix structure is more feasible for organizations operating in a business environment … Nike’s organizational structure gets a lot of praise, and it happens to be a matrix organizational structure. Whenever you are struggling with your assignments and thinking where can I get my paper writer, just talk to us. The matrix organizational structure of Nike accumulates advantages of all different types of organizational structures within it. Apr 16, 2019 - Nike’s organizational structure is worthy of study due to the fact that it has been a successful organization since its inception. Nike came up with an organizational structure so as to aid in regionalizing of business strategy. The localization of the marketing activities has helped Nike to become more effective in attracting the customers. It should be noted that the apparel design takes place locally, but the footwear design takes place at the global headquarters in Oregon. From visiting public places to getting famous sports stars in their advertisements and holding shows with those sports stars to gain people’s attention. It allows the company to develop a brand image which is universally identical in all target markets, thereby creating a globalized brand. 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 will be a combination of vertical and horizontal reporting. Nike has an organizational culture that encourages human resources to behave in ways that address business objectives. 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. It is important for you to understand that different companies have different organizational structure, which is responsible for respective growth and sustenance. The employees have two reporting authorities, one from the functional department and the other from the product category. All Right Reserved. By continuing your navigation, you consent to their use. Nike’s organizational structure is worthy of study due to the fact that it has been a successful organization since its inception. familiar with common problems and concerns in their Groups The combination of standardization and localization has enabled the company to adopt marketing strategies which can seamlessly appeal to the local customers, while retaining the global Nike culture, which has helped the firm to bring itself closer to its customers. Needless to say, that the entire organizational structure of Nike encompassing every reporting authority in every market location, is extremely complicated. Employees report to a product (business unit) team which is led by the project manager and … Nike’s organizational structure is one of the best organizational structure examples in the world. The Matrix structure could improve the performance of Nike because each manager can achieve a specific task without having all responsibilities put on one person. 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. At Penmypaper, we work with some of the top academic writers, with 7+ years of professional experience in their respective domain, to offer you the best assistance that you can get. The product design is done specifically for their needs. 18+ Risks and Disadvantages of Technology, How to Build Your Business Identity on a Tight Budget. Best Green Tea Brands in the world in 2020: What makes them the best? 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). Despite the problems, the firm has been thriving over the years and has no plans of going down anytime soon. The teams in Nike’s matrix structure are organized by business unit (apparel, equipment, and footwear) and functional unit (human resources, operations, finance, marketing, and sales). A close check is kept on these divisions. Matrix structure combines both functional and divisional structures. The company realizes that even though it operates with a global brand image, some of the marketing communications need to be adjusted for cultural differences. Throughout Nike, employees report to team managers who then relay the progress report to the department manager. This is the reason why you can find different variety of Nike products in your country in comparison to another country. A matrix structure is made up of different types of organizational structures. 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. This structure is based on the company’s needs in its global organization, as well as the uniqueness of conditions in regional markets. The Jordan brand has a 10.8 percent share of the overall U.S. shoe market, which makes it the second biggest brand in the country and more than twice the size of Adidas' share 0.06 4 0.24 4. Each sub-region is overseen by a sub-regional manager. Org chart highlighting visualizing the Nike organizational structure. In a matrix structure, the authority passes vertically as well as horizontally. The Converse is another footwear brand that Nike owns and management in its division controls its operations. As a large, international organization with thousand of employees, oddly has organic elements by giving opportunity to employees to express their thoughts and opinion as explain above. This is because one department will not be aware of the plans of the other departments. It is the world’s largest supplier of athletic shoes and apparel. Nike follows a matrix organizational structure which is a combination of horizontal and vertical structures. The operations of the company are also segregated in terms of distribution channel (Wholesale and Nike Direct) and product category (Footwear, Apparel and Equipment). The market demand is highly dynamic, which compels the firm to be constantly on the lookout for new design trends, which can be turned to a new product. People have specialization and perfect skill sets and their placement is with similar people in a group. Nike’s organizational structure is a matrix structure. The unnecessary grudges and conflicts arising from this can be detrimental for the firm as well as the employees. Over the year, Nike implements efficient innovation management structure that assists the company to achieve effective innovative process. This not only increases their incomes but also motivates them to do even better. The regional headquarters are responsible for designing some of the marketing campaigns, which helps in localization of the communicational message sent to the target audience. Even though, this structure may seem complicated, but Nike … However, Nike’s performance figures (see appendix) seem to tell a different story. We will provide you with 100% authentic papers custom written to your assignment requirements, that can get you the grades that you always wanted. Press Esc to cancel. Moreover, lack of coordination, which is highly likely, can prove to be fatal for the organization. These subsidiaries operate with certain degree of autonomy, which clearly mentioned boundaries. 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. 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