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Business Report for the company Nike

Aayush Shrestha (FC1011809)

Binod Thapa Magar (FC1017890)

Biwash Gurmachan Magar (FC1017319)

Kyriel Orozco (FC1013855)

Mausami Gurung (FC1011700)

Business Diploma, Fleming College Toronto

ORGB 24 : Introduction to Organizational Behavior G24

Professor Ishara Herath

November 15, 2023

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Table of Contents
Business Report for the company Nike.

Summary... ........................................................................................... 3

Company Overview …………………………………………………………………… 3

Nike’s Mission & Vision ……………………………………………………… 4

Organizational Behavior ………………………………………………………. 4

Organizational Structure ………………………………………………………. 4

Nike and Its Matrix Structure …………………………………………………………… 5

Original Division ………………………………………………………………. 5

Functional Structure …………………………………………………………… 5

Advantage of Nike's Organizational Structure Benefits ………………………………… 6

Disadvantages of Nike's Organizational Structure ……………………………………… 7

Nike's Success in Organizational Behavior ……………………………………………… 7

Innovation Culture ………………………………………………………………. 7

Corporate Culture ……………………………………………………………….. 8

Diversity and Inclusion …………………………………………………………. 9

Adaptability ……………………………………………………………………… 9

Conclusion ………………………………………………………………………………… 9

References …………………………………………………………………………………. 10
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Business Report for the Company ‘Nike’

Summary

Nike is an unparalleled titan in the dynamic realm of athletic apparel and footwear, exemplifying

the convergence of innovation, brand power, and global market presence. Since its establishment

in 1964, Nike has not only persevered but also changed constantly to adapt to the changing

demands of its clientele and market trends.

Nike has an unrivaled brand reputation, which is the key to its success. The instantly identifiable

Swoosh logo is more than just a mark of quality, skill, and flair in sports. Nike has a strong

global brand and is well-known in many different countries. Thanks to its astute use of marketing

and prominent athlete endorsements, the company has become the market leader in athletic wear.

Nike's global presence gives it a strategic advantage. The company, which operates in several

countries, makes use of its extensive market penetration to diversify its revenue streams and

adapt to the particularities of each regional market. Nike's extensive reach not only provides

stability but also enables it to capitalize on developing markets, especially in Asia and Africa,

where expanding economies are opening up new doors.

In conclusion, Nike's current position in the market demonstrates its ability to successfully

integrate innovation with a global strategy. The company's ability to navigate a dynamic industry

landscape, stay true to its commitment to consumer-centric innovation, and take on challenges

head-on will be crucial to maintaining its market leadership. The story of Nike's ascent from a

little startup to a powerful global force is one of perseverance, adaptability, and an unwavering

pursuit of excellence.
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Company Overview

Nike’s Mission & Vision

Nike's mission statement is straightforward but powerful: "To bring inspiration and innovation to

every athlete in the world." Notably, Nike founder Bill Bowerman once declared that everyone

with a body is an athlete. This inclusive approach is a reflection of the company's commitment to

offering services to a broad spectrum of individuals and encouraging active, healthy lifestyles

through its ethos and products and to take the lead in defining the future of sportswear through

cutting-edge design and technology.

Organizational Behavior

Nike's organizational conduct is reflected in their dynamic and innovative culture. By

encouraging creativity and teamwork among its employees, the company fosters an environment

that fosters the development of innovative ideas. Athlete focus is emphasized in the

organizational culture, which helps employees align with the overall mission. Nike's

commitment to corporate social responsibility is evident in its handling of issues such as

environmental preservation and labor standards.

Organizational Structure

The organizational structure of Nike has played a significant role in its success. The company

has selected the organizational structure that best fits its needs among the various varieties. One

of the best organizational structure examples in the world is that of Nike.

Within an organization, task delegation and the establishment of line authority are outlined in the

organizational structure. Nike is a company with a matrix organizational structure.

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Nike and Its Matrix Structure

Various organizational structure types make up a matrix structure. Authority flows both

horizontally and vertically in a matrix organization. Nike has a geographical divisional structure

in place to serve customers in various regions. Their needs are the sole focus of the product

design. Standard products are not produced for the entire global population.

Organizational Division

Conversely, it adheres to a divisional structure based on product. This is to guarantee that

innovation and development continue to occur in all of the products that Nike produces. In

addition, the organization is divided into teams and functional departments that report to the

global corporate leadership. Nike's global corporate leadership, comprising of corporate leaders,

ensures that policies are implemented across all divisions of the company.

A functional structure that splits the departments of finance, global human resources, product and

merchandising, administration and legal, global sports marketing, and operations comes under

this leadership.

Functional Structure

In a functional structure, the president oversees all departments. The Nike organizational

structure is divided regionally into North America, Western Europe, Central & Eastern Europe,

Greater China, Japan, and Emerging Markets. Every division operates independently of the

others.

Decision-making authority within their respective regions is granted to the regional divisions.

However, that autonomy has a bound. There is constant monitoring of these divisions. This keeps
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them from acting in an unethical or improper manner that could damage the reputation of the

company as a whole. Nike also owns the brands Exeter, Hurley, and Bauer; these brands share

structural similarities with Converse. Conversely, the Nike authorization division is in charge of

permitting the Nike brand name, as implied by its name.

Advantage of Nike's Organizational Structure Benefits

Nike's matrix organizational structure combines the best features of all other organizational

structure types.

First, Nike is able to offer various products in various regions based on the preferences of the

people living in those regions thanks to the regional divisional structure. This explains why the

selection of Nike products in your country differs from that of other countries. By keeping rivals

at bay, this not only boosts sales for Nike but also aids in maintaining the company's global

reputation. Additionally, establishing regional divisions at various locations aids in promotion.

The company learns about the locals' cultures and markets its products in line with their

preferences. Because each division's employees are solely focused on their respective product,

the product divisions aid the company in the development of its products. They are the best for

the job because this enables them to become experts in their specific field.

Furthermore, the functional structure contributes to bringing out the best in the workforce.

Individuals are grouped with others who are similar to them because they have perfect skill sets

and areas of specialization. It not only increases productivity but also lowers the possibility of

mistakes.

Disadvantages of Nike's Organizational Structure

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The drawbacks of all the various kinds of organizational structures are combined in Nike's matrix

structure.

First of all, an individual who works multiple jobs is accountable to multiple bosses. This causes

misunderstandings and disputes about who should do what first. This can lead to unwarranted

resentment and disputes, which can be harmful to both the company and the workers. Second,

there is duplication of work within the company as a result of the divisional structure. No matter

how small the divisions are, two will have different departments for the same function. This

results in the company wasting money and other resources.

Furthermore, it is very possible that there will be a lack of coordination, which could be

disastrous for the organization. This is a result of one department not being aware of the other

departments' plans. For instance, the finance department may feel that there is too much idle

money and decides to invest the funds even though the research and development department is

planning to study a new type of product.

Nike's Success in Organizational Behavior

Innovation Culture:

Nike fosters a culture of innovation, encouraging employees to think creatively and take risks.

This approach has led to groundbreaking developments in athletic footwear and apparel, helping

Nike stay ahead of the competition. Employee Engagement: The company places a strong

emphasis on employee engagement, recognizing that motivated and satisfied employees

contribute to overall success. This is evident in Nike's efforts to create a positive work

environment, offer competitive benefits, and provide opportunities for professional development.

Corporate Culture:
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Nike has a distinctive corporate culture that promotes teamwork, collaboration, and a passion for

sports. The company's core values are embedded in its culture, contributing to a shared sense of

purpose among employees. Athlete Endorsements: Nike's partnerships with high-profile athletes

contribute to a culture of excellence and performance. This not only enhances the brand's image

but also inspires employees to align with the values of top athletes.

Diversity and Inclusion:

Nike has made strides in fostering diversity and inclusion within its workforce. Embracing a

variety of perspectives and backgrounds helps the company better understand its diverse

customer base and adapt to global markets.

Adaptability:

Nike has shown a remarkable ability to adapt to changing market trends and consumer

preferences. This adaptability is crucial in the fast-paced and dynamic sportswear industry.

Conclusion

In conclusion, Nike's steadfast commitment to innovation, coupled with its global market

strategy and distinctive organizational structure, has propelled it to the pinnacle of the athletic

apparel and footwear industry. The company's iconic Swoosh logo has become synonymous with

quality, skill, and flair in sports, contributing significantly to its unrivaled brand reputation.

Nike's extensive global presence and strategic market penetration, particularly in emerging

economies, provide a solid foundation for continued growth and market leadership.
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The organizational behavior at Nike plays a pivotal role in its success. The company's dynamic

and innovative culture, coupled with a strong emphasis on athlete focus and corporate social

responsibility, fosters an environment that nurtures creativity and excellence. Nike's matrix

organizational structure, combining regional and product divisions, allows for tailored product

offerings and market-specific strategies, reinforcing the company's ability to cater to diverse

consumer preferences.

While Nike's organizational structure presents numerous advantages, such as regional

customization and specialization, it is not without its challenges. The matrix structure's potential

for confusion and duplication of work necessitates continuous monitoring to ensure seamless

coordination and prevent inefficiencies.

Nike's success is further underscored by its commitment to fostering an innovation culture,

engaging employees, maintaining a distinctive corporate culture rooted in teamwork, leveraging

athlete endorsements, promoting diversity and inclusion, and demonstrating adaptability to

market dynamics. The company's journey from a startup to a global powerhouse is a testament to

its ability to navigate challenges, adapt to change, and sustain a relentless pursuit of excellence.

As Nike continues to evolve in response to industry dynamics, its ability to balance innovation,

market strategy, and organizational effectiveness will be crucial in maintaining its position as a

leader in the ever-evolving world of athletic apparel and footwear.

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References

Sobiya, & Sobiya. (2018, December 18). Nike’s organizational structure: pros & cons.

Advergize. https://www.advergize.com/business/nikes-organizational-structure-the-pros-

cons/?fbclid=IwAR0a4ZCihKRTdGfiQVx8_4EKA_sTBsqPzdY-

4KHFM1riZwsBDLyFpEVq3Og

The Editors of Encyclopaedia Britannica. (2023, November 14). Nike, Inc. | History, Logo,

Headquarters, & Facts. Encyclopedia Britannica. https://www.britannica.com/topic/Nike-

Inc

Pereira, D. (2023, April 15). Nike Mission and Vision Statement. Business Model Analyst.

https://businessmodelanalyst.com/nike-mission-and-vision-statement/

Nike.https://about.nike.com/en/impact?

fbclid=IwAR0IhtqNrUuVVr7Oh8uNhmBXgaRaKfrFnIcx5rPEnJBFo616_bEfM5Kp3fw

Wikipedia contributors. (2023, November 13). Nike, Inc. Wikipedia.

https://en.wikipedia.org/wiki/Nike,_Inc.