Aneesha Zephyrine 501127677

Mini-Assignment 2

Nike | Spreading Out to Win the Race

1. What factors drive Nike’s decision to stick with some form of network
organization structure rather than own its manufacturing operations?

Nike is one of the most successful companies in the athletics industry. Although,
this Oregan company is famously known for its sport gear, Nike does not truly
manufacture their own products. Since Nike already has enough on their plate, as they
are they are one of the most successful sports apparel companies worldwide,
outsourcing each of their products gives them much more time to focus on the other
tasks at hand. Such as, its product design. Nike expertise in product design while
outsourcing each and every one of their products. They do this while posting every
single important detail on how the sporting goods were manufactured on their website.
Nike leaves their outsourced products in the hands of professionals and experts to
make sure their products are high quality. Nike successfully outsources their products
instead of manufacturing them by using their creativity and releasing desirable products.
This brand continues to be successful as they focus on strategy, consumers, and
fulfilling the needs of today’s athletes.

2. Could a shift toward a more mechanistic organizational design help Nike

avoid past reputational problems with its global supply chain, such as
unethical labour practices by some of its foreign contractors?

I believe a more mechanistic approach could help Nike avoid repeating the same
mistakes as they made in the past. In the past, Nike has had bad publicity due to the
unethical practices by some of its foreign contractors. Nike cannot change their
unethical practices in the past, but they could focus on improving their reputation in the
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future. Although, this may cost Nike more money, making this shift could please
consumers, create higher ratings, and build an overall better image for this company.
Nike could start by making acknowledging what mistakes they made in the past and
then create a plan to make improvements. Since they were known for unethical labour
practices, Nike should be more conscious about the poor working conditions and create
a healthy, safe, and ethical working environment for their workers.