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ORAGNISATION

Meaning-: Organizing or organizing is the establishment of effective


authority relationships among selected work, persons and work places in
order for the group to work together efficiently. 

How Nike use this function of mangement are as follows:-

Nike’s Organizational Structure


A major part of Nike’s success is due to Nike’s organizational structure. The
firm has chosen, from different types of organizational structures, the one
that suits them the most. Nike’s organizational structure is one of the best
organizational structure examples in the world.

The Matrix Structure and Nike

A matrix structure is made up of different types of organizational


structures. In a matrix structure, the authority passes vertically as well as
horizontally. Nike follows geographical divisional structure to facilitate
customers in different areas.
The product design is done specifically for their needs. There is no
manufacturing of standard products for the entire world’s population.

Divisional structure

 This structure follows a divisional structure on the product basis.  This


is to make sure that the development and innovation keep happening
in all products that Nike manufactures.

 Moreover, there are functional departments under the


Global corporate leadership, and there is also a team structure in the
organization. The global corporate leadership at Nike which involves
corporate leaders makes sure to implement policies throughout the
company that is, in all divisions.

 Under this leadership comes a functional structure that divides


finance, global human resources, product & merchandising,
administration & legal, global sports marketing, and operations
departments.

Functional Structure
 All the departments of a functional structure come under the
president. North America, Western Europe, Central & Eastern Europe,
Greater China, Japan and Emerging markets are the regional divisions
of Nike structure. The operations of each division are separate from
each other.

 The regional divisions are given autonomy in taking decisions in their


regions. But there is a limitation to that autonomy. A close check is
kept on these divisions. Hence, this prevents them from doing any
unethical or inappropriate thing that might harm the entire firm’s
image.
 Other divisions within Nike organizational structure are the
subsidiaries’ and Nike licensing divisions. The Converse is another
footwear brand that Nike owns and management in its division
controls its operations.

 Other brands that Nike owns are Bauer, Hurley, and Exeter which also
have the same structural characteristics as Converse. On the other
hand, the Nike licensing division, as its name suggests, controls the
licensing of the Nike brand name.

Advantages of Nike’s Organizational Structure


 The regional divisional structure allows Nike to provide different goods
in different regions in relation to the preferences of people in those
regions.

 Variety of Nike products in your country in comparison to another


country. This not only increases Nike’s sales, but it also helps it to
enforce its brand image across the world by not letting the competitors
settle in.

 The divisions according to products help the firm in developing its


products as the employees in each division focus on their product
only. This allows them to become specialists in their field, makes them
best for the job.

 The functional structure helps in enhancing the best form the


workforce. People have specialization and perfect skill sets, and their
placement is with similar people in a group.  It not only brings about
efficiency but also reduces the chances of error.

 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 not only increases their incomes but also motivates them
to do even better.

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