Question

1. Asses 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

2. Determine whether a matrix structure could improve performance for Nike.

3. Summarize the current state of competition in this industry. Assess if Nike continuing to pull work from rivals, or if they are catching up.

Answer 1

1) Nike is indisputably a giant in the athletics industry. The Portland,Oregon,company is known for its products,none of which it actually makes.It leaves other function of manufacturing,production and networking to different associates.This has helped Nike to concentrate on the core capacity and make profits over others.

CHARACTERISTICS OF NIKE NETWORK ORGANISATION:

• Global Leadership corporate office in Oregon,USA design,decides and launches campaigns throughout the world.Likewise in charge of assembling and inventory network tie ups.
• Geographical Divisional office in Europe,USA and other markets carry out the campaigns and responsible for the revenue generated from the assigned geography.
• Converse and branding and licensing Division use overseeing and permitting the Nike brand to produce income.

The structure offers too much flexibility and expensive and inexpensive structure and to be quick responsive to different marketing trends in different geographies .The use of IT services and geographical expertise further helps in addition of profits.Therefore Nike can focus on just on research and development to think of new imaginative plans. This structure further does not allow people to conflict  of each office from other in terms of marketing related decision.Treats government rules and regulations and other local players are reduced to bare minimum through this model.Every one of these focal points have lead Nike to stay with same type of system authoritative structure.

Another strategic advantage with Nike is that it does not allow manufacturing to happen in China, Malaysia and other south eastern Asia where labor is cheap and hence the coat of production is considerably reduced. Nike utilizes the benefits of economics of scale and exceptionally complex innovative frameworks for its store network for its joint efforts with coordination's division of various association which further diminishes the cost ,chop down the time and dimensions of the stock to be kept up.This factor allows Nike to stay focus on research and development to come up with the latest scientific design and designs  marketing strategies.This further helps Nike to gain competitive advantage and remain world leader in its category.

However the flip side of this form of network organisational structure is that employee's loyalty is quite low,there is feeble conduct of geological workplace and an excess of reliance on outsiders associations for working benefits.

2) A matrix structure where by the employees have the relationship with there product managers as well as the functional managers their reporting not only to one person but to various levels of management .

Nike could benefit by this since reduction of waiting in line to see the management ,since they can report to various managers ,this level ,this therefore helps in enhancement of skills by the product line manager.

Matrix structure facilities easy working as employees can easily share ideas and tools across the various projects.

It helps in information transmission since they are able to follow both across and up,this ensures more or easier decision making.

3) Under the sports footwear  brand ,Nike is the leading company followed by others ,its competition is widely distributed across a wide range of countries or region.

Nike is growing or increasing in consumption or popularity over the time mainly in the European country , it is therefore not pulling way away rather it effortless building its name,keeps competition in checks by increasing advertisement and production for example super star endorsements, they shops strategically to ensure more sales.