Myca Angeles

BSA501

THE CORPORATE CULTURE

Company: Nike

I. Corporate culture of the company

Nike Inc.’s organizational culture supports business resilience and capability.
Organizational culture is the combination of traditions, habits, values, and behavioral
expectations among employees. Nike’s workers are given a set of instructions, rules and
expectations on how to do their jobs, with consideration for their relations with customers
and other employees. This approach ensures that the company maintains its corporate
culture, which partly contributes to the success of the business. As one of the giants in the
global athletic shoe, apparel and equipment market, Nike Inc. continues its policies and
strategies to promote an organizational culture that reinforces business resilience and
competence.
Nike has an organizational culture that encourages human resources to behave in ways
that address business objectives. Training programs are designed to uphold such corporate
culture that aligns with the Nike brand image for sports footwear, apparel and equipment. A
pair of Nike men’s sports shoes. Nike Inc.’s organizational culture promotes creativity and
innovation, highlighting the role of corporate culture in the company’s global success.
II. Impact on the company’s brand image
Nike is a powerful example of corporate culture because Parker is serious about
reinvigorating his organization on a regular basis. Profits have grown 57% and Nike’s
market cap has more than doubled. They released two breakthrough products which
are game-changers for the apparel company: Fuel Band (an evolution of the
Livestrong band that allows you to track your activity level during the day and share
it digitally) and Flyknit (an innovation in simplifying the manufacturing and fit of
shoes).
Here are a few secrets to the strong organizational culture that has made Nike’s
enduring growth possible:
1) Know who you are. Nike is similar to other household name companies who have
succeeded based on creating a “cool culture” – Apple, Google, Amazon, Zappos
have all built cult-like status with powerful corporate cultures that attract and
retain people who all feel a sense of belonging to a “tribe with a purpose.” In
Nike’s case, tribal identity is “We have the best-kept secrets.” Not every
organization can pull this off. The way Nike fosters this in the culture is not just
about trade secrets, or the irresistible pull for “people wanting to be in on the
secret.” Those are both important. At Nike, employees believe what they are
doing is valuable – the secret is in the belief there is something valuable and
important to protect. They internalize stories of secretive-ness because they are
proud to be part of Nike. The legends that are told over and over, have led to
 lasting talent retention, which reinforces the culture (strengthening tribal
identity). You are considered a rookie if your tenure is less than a decade. “Know
who you are” at Nike means the strong organizational culture inside is aligned
with how customers view the company – there is no disconnect between the
internal and external brand. Employee’s love being inside the secret, and the
customers can’t wait to get in on it. How does this alignment work in your
organization?

2) Commit to being You, in every way. This means saying “no” more than you say
“yes” – to ideas and to projects. The first prototype for the Flyknit was a tube
sock sown onto a rubber sole. “Great ideas have something in common with bad
ones: Early on, they both sound ridiculous.” But Flyknit, once approved, required
a complete reinvention of manufacturing and engineering processes, as well as
the supply chain model. Eventually it will allow you to custom fit a shoe to your
exact foot shape. There’s no halfway when you commit to an idea that requires
you to reinvent your manufacturing and business model! It requires being closely
tuned into your customer and having a “6th sense” of what they will respond to.
Are you in or out?
3) Be control freaks, in the right ways. Every company who has mastered
innovation (beyond a steady stream of new cool products) knows that you have
to control the process, just as you would with tight operational or cost strategies.
Decision making at Nike is not about “empowering the masses.” While creative
idea-generation is at the heart of the culture “the people who curate and make
the decisions is a pretty damn short list.” The key is that people understand the
process and know how it works in your business. If you have an organization like
Zappos, you have to empower people on the front lines to make certain
decisions. At Nike, creative control needs to be in the hands of those who have
outstanding instincts for “what’s going to work in the market.” (Per #2 above,
when you go “all in,” you’d better be right most of the time).
III. Things to improve on their current culture
An advantage of Nike’s organizational culture is its support for new product
development. The characteristics of this culture ensure that the company continues its
competitive advantage in the global sports shoes, equipment and apparel market. Also, the
diversity and inclusiveness features of Nike’s corporate culture help develop employee
morale. However, a disadvantage is the potential reduction in managerial efficiency. The
organizational culture facilitates employee involvement, although it also increases the
workload of Nike’s managers. A suitable recommendation is for Nike to increase its
investment in managerial personnel to balance the effects of its corporate culture.