Management Assignment

Nike Organization

Submitted by: Shehryar Alikhel

Hazrat Umar kakar

Submitted to: Muhammad sadiq

Semester: 2nd BBA (Group-E)

Session 2020 –2024

IINSTITUTE OF MANAGEMENT SCIENCES

HAYATABAD, PESHAWAR

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 NIKE

ABOUT

Nike is an American multinational corporation that is engaged in the design, development,

manufacturing, and worldwide marketing and sales of footwear, apparel, equipment, accessories,
and services. 

Founder: Phill knight and Bill Bowerman

CEO: JOHN DONAHOE

Headquarters: Beaverton Oregon United states

Founded: January 25, 1964

PRODUCTS

Main categories: Running, Basketball, Sportswear.

 Athletic footwear
 Apparel
 Sports accessories
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TOP SELLING PRODUCT

Air Force 1’s SNEAKERS are the top selling product of NIKE’S Inc.

ORGANIZATIONAL STRUCTURE OF NIKE:

The organizational structure of Nike Inc.'s operations reflects the
capabilities and limits of the business. The organizational or
corporate structure of a company is the composition and system
design that is applied to the interconnections between the
employees, groups, and business divisions. In the case of Nike, the
corporate structure highlights the need to address regional-market
differences. These differences are linked to target customer specific
regional demands, such as variations in apparel preferences based
on sport popularity and climate. As such, Nike Inc. has developed its
organizational structure to allow for adjustments to deal with
differences in the market. The corporation and its corporate
structure serve as an example of how regional variations need to be
included in business strategies as one of the leading players in the
athletic footwear, clothing, and equipment industry. Structural and
strategic alignment that takes these variations into consideration
reinforces Nike's competitive advantages, particularly when
penetrating regional markets.
Nike Inc. has an organizational structure that makes it possible for
business strategies to regionalize. Such regionalization promotes
value chains that specifically meet the expectations of customers,
particularly in the area of service and marketing. The characteristics
of its corporate structure give Nike versatility in dealing with
consumer preferences in regional markets for athletic shoes, apparel

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and equipment. This flexibility is particularly notable in how the
company markets its goods through Nike Town stores which are
owned by the company. Together with Nike's organizational culture,
this institutional support helps the company fend off the financial
and business growth impact of competitors like Adidas, ASICS, Puma,
and Under Amour. The corporate framework in relation supports
campaigns and approaches found in Nike's marketing mix, or 4P.

Nike’s Organizational Structure Type and

Features:
Nike has an organizational structure which is geographically
divisional. This arrangement is based on the needs of the client in its
global organization, and the heterogeneity of regional market
conditions. Within Nike's organizational structure the following
features are notable:
1. Global corporate leadership
2. Semi-autonomous geographic divisions
3. Global divisions for Converse and brand licensing
Global Corporate Leadership: Organizational structure of
Nike has global corporate leadership, involving corporate managers.
The managers have offices at Nike's headquarters in Oregon, USA.
They decide for Nike's global corporate structure. The Global Sports
Marketing agency, for example, is releasing new athletic shoe
marketing campaigns for the global marketing. Decisions are easily
implemented across the company through this feature of Nike's
organizational structure. The key global leadership groups headed by
a president, executive vice president, or chief executive are as
follows:
 Office of the President & CEO, Nike, Inc.
 Nike Brand
 Finance
 Global Human Resources
 Product & Merchandising

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 Administration & Legal
 Global Sports Marketing
 Operations
Semi-Autonomous Geographic
Divisions: Geographical divisions are a key characteristic of Nike,
Inc. organizational structure. The company's operations are divided
into regional-market segments. The managers of each regional
division optimize operations in the market of regional sports shoes,
apparel and equipment. The organizational structure of Nike has the
regional divisions as follows:
 North America
 Western Europe
 Central & Eastern Europe
 Greater China
 Japan
 Emerging Markets
Global Divisions for Converse and Brand
Licensing: There are also two corporate divisions within Nike's
organizational structure: one for the Converse Company and another
for brand licensing. One global division is in charge of managing
Converse's worldwide activities, which is another Nike Inc apparel
brand and subsidiary. Another global division in charge of licensing
the Nike brand. This corporate structure feature offers control over
brand licensing and Converse operations.
Nike’s Organizational Structure Advantages
Disadvantages:
 The attributes of Nike Inc's corporate structure promote
growth and stability.
 International management of companies has the benefit of
fostering control over the entire company.
 The benefit of the national (geographic) semi-autonomous
divisions is versatility in meeting regional market-specific

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 consumer preferences for Nike's athletic shoes, apparel, and
equipment.
Nike’s Organizational Structure Disadvantage:
 Limited approach to managing the operations of Converse.

SWOT ANALYSIS OF NIKE

STRENGTHS

 Standardization: Nike gives its employees flexibility to

continuously innovate.
 Formalization: Employees know exactly what is expected
from them.

WEAKNESSES

 Specialization: Most of the comes from footwear products –

may need to emphasize on other segments as well.

Opportunities

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 Development: Product development that changes as the
trend changes.
 Creating more: Creating sportswear items by incorporating
the waste from regular manufacturing.
 Open stores: Nike can open stores in small towns as well in
order to push sales level high.

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 Threats

 Currency value fluctuation: operating business

internationally opens them to the possibilities of currency value
fluctuation that can obviously lead to a major loss.
 Reputation: Maintaining the reputation of being eco-friendly.
 Aggressive Competitors: competitors are becoming
more aggressive and creating high quality products that
are taking from profits of Nike.

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