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nike organizational structure matrix

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What is a Triple Net Lease? Org chart highlighting visualizing the Nike organizational structure. Adding to this, the teams within the organization might start having unhealthy competition amongst them to win over each other. Two divisions will have different departments for the same function, no matter how small the divisions are. This allows them to become specialists in their particular field, makes them best for the job. Training programs are designed to uphold such corporate culture that aligns with the Nike brand image for sports footwear, apparel and equipment. Nike’s Organizational Structure MGT 330 July 12, 2010 Nike’s Organizational Structure Nike is a “Global marketer of athletic footwear” (Nikebiz, 2010) Nike operates in 160 countries and has many brands including Nike Golf and Air Jordan. This not only increases Nike’s sales, but it also helps it to enforce its brand image all across the world by not letting the competitors settle in. It is important for you to understand that different companies have different organizational structure, which is responsible for respective growth and sustenance. Nike Inc.ʼs organizational structureʼs characteristics facilitate control and flexibility in the business. This structure is based on the company’s needs in its global organization, as well as the uniqueness of conditions in regional markets. 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. A major part of Nike’s success is due to Nike’s organizational structure. It also makes it efficient for the company to filter the local demand trends based on the sub-regions. Nike is set up as a Matrix Organizational Structure, meaning that there are multiple lines of authority and some individuals report to at least two managers. In a matrix structure, there are multiple reporting lines and responsibilities for the employee. All the departments of a functional structure come under the president. Nike possesses a geographic divisional organisational structure. Nike own several wholly-owned subsidiary brands such as Cole Haan, Converse, Hurley, Umbro, etc. Nike operates in nearly 170 countries with more than 75,000 employees, selling its products under a dozen of its own brands such as Air Jordan, Nike+, Nike Pro, Nike Golf, Air Force 1, among several others. The localization of the marketing activities has helped Nike to become more effective in attracting the customers. Nike’s organizational structure is a matrix structure. The Converse is another footwear brand that Nike owns and management in its division controls its operations. Content Theories: What Really Motivates Us. However, Nike’s performance figures (see appendix) seem to tell a different story. Established in 1964, the company has now become one of leading sports shoes, apparel and equipment brand in the world. Organizational Structure Characteristics (Analysis) Updated May 8, 2016 Andrew Thompson Nike Inc.ʼs organizational structure reflects the abilities and limits of the business in its operations. The Organizational Structure of Nike Nike is the number one innovator in the world in athletic footwear, apparel, equipment, and accessories. The complex matrix organizational structure of Nike has worked out as expected for the company, but it does not necessarily mean that it would be good fit for another company. The matrix organizational structure is a mix of two other organizational structures, the project system, and the functional system. Nike Organizational Structure By: Abby Huskey and Helena Harris Structure Efficiency Strengths ability and resources to make products managers have first hand information and experience with how their departments operate. Nike follows a matrix organizational structure which is a combination of horizontal and vertical structures. This is to make sure that the development and innovation keep happening in all products that Nike manufactures. The operations of the company are also segregated in terms of distribution channel (Wholesale and Nike Direct) and product category (Footwear, Apparel and Equipment). The company follows a highly standardized operational process, which helps the leaders to make quick decision and foster seamless communication. The global headquarter allows the company to take a standardized approach to run its business across the entire global operation. The global headquarters is the top of the hierarchical ladder, where all the major decisions about the company’s business operations are taken. Nike’s annual revenue hit $24 billion last year, a 60% increase since he took the reins as CEO in 2006. The diagram shown above clearly highlights the multiple reporting lines in the matrix organizational structure of Nike. In particular, the case highlights Nike's organizational structure that consists of a global matrix organization that is replicated at a regional level for the European market. … It is important to understand that each of these subsidiary brands appeal and cater to different groups of customers. : The organisational structure of the world's biggest sports goods manufacturers is a reflection of their operational abilities and limitations. Creately diagrams can be exported and added to Word, PPT … Moreover, there are functional departments under the Global corporate leadership, and there is also a team structure in the organization. As a large, international organization with thousand of employees, oddly has organic elements by giving opportunity to employees to express their thoughts and opinion as explain above. Source . The matrix structure cancels out the extremes of the two structures to balance them somewhere in between. In a matrix structure, there are multiple reporting lines and responsibilities for the employee. However, it should be noted that the what makes it beneficial for the company is the streamlined approach to running the business operations. Nike characterizes its organization as a collaborative matrix organization 0.02 3 0.06 3. The introduction of an additional layer in the hierarchy has helped the firm to foster better transparency, seamless flow of information and reduction in complexity. This site uses Akismet to reduce spam. Save my name, email, and website in this browser for the next time I comment. A close check is kept on these divisions. This is the reason why you can find different variety of Nike products in your country in comparison to another country. Nike follows geographical divisional structure to facilitate customers in different areas. At present, the brand of Nike is valued at USD 32 billion, with the largest market share in the global apparel sector. On the other hand, the Nike licensing division, as its name suggests, controls the licensing of the Nike brand name. The combination of standardization and localization has enabled the company to adopt marketing strategies which can seamlessly appeal to the local customers, while retaining the global Nike culture, which has helped the firm to bring itself closer to its customers. Over the decades, the company has expanded its business through diversification into various international markets and by extending its brand portfolio. The operations of each division are separate from each other. The regional headquarters situated in the Netherlands, oversees the business operations in the EMEA region, which comprises of 27 nations. Charts Nike is an American multinational company producing equipment, footwear, apparel and equipment their culture s! Nike also accumulates the disadvantages of all different types of organizational structures the of... 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