Applying Burke-Litwin Causal Model to Decker Outdoor Corporation

For Nike's business model to continually flourish and stay profitable, the senior management team and strategic planners must continually monitor short, intermediate and long-term economic factors that will affect their operations. Nike's business model is heavily dependent on supply chains, as the majority of their products are manufactured in Asian nations, either in their own manufacturing centers or contract manufacturing partners. Sales forecasts for next-generation shoes, apparel and sporting equipment must be accurate to ensure the supply chain estimates and forecasts can meet product demand. The influence of economic factors on sales and marketing planning and strategy development is among the most immediate and significant for any enterprise operating in global markets (Cerullo, Avila, 1975). Strategic planners at Nike, working in conjunction with product development and product launch teams, must understand the price elasticity of demand for a given new product or an entirely new division before launching it. Economic data gives Nike senior management and strategic planners the insight necessary to determine which new products to launch or not, when, and in which specific regions of the world. Economic variables will in short tell Nike's senior management how to navigate risk and capitalize on opportunities as quickly as possible.

United Parcel Services Inc. has a functional organization structure in the sense that common department such as: marketing, finance, human resource etc. are organized by separating each of and managing them independently. Managers of different functions report up to the Chief Executive Officer (David Abney) who has responsibility for all of the operational areas. The functions are separated by expertise which promotes functional innovation and also it is easy for each department to understand their core responsibilities thus they can be held responsible in case of any

Organizational structure is a system used to define a hierarchy within an organization which improves operational efficiency by providing clarity to employees at all levels of a company. A systematically outlined structure can also provide direction for internal promotions, allowing companies to create employee advancement routes for entry-level workers. In other words, it identifies each job, its function and where it reports to within the organization. Harley-Davidson’s organizational structure, for example, assists centralized control of the business through the company’s arrangement of its components in terms of their interactions and functions. As one of the world’s oldest motorcycle manufacturers in the world, Harley-Davidson Inc. maintains this organizational structure and centers its current focus on a limited number of markets. While the business continues to grow by international expansion, Harley-Davidson’s corporate structure focuses mainly on the fact that most of the company’s revenues are generated in the United States. Thus, Harley-Davidson has a functional organizational structure that is based on the company’s current focus on the motorcycle markets in developed countries, especially the United States, in addition to ensuring centralized control of business activities. The basic characteristics of Harley-Davidson’s organizational structure include Function based groups, Centralization, and Global hierarchy.

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

Organizational Hierarchy Structure- Toys R Us was a decentralized organization, which had a leadership type setting from country to country. This type of structure was difficult because all the leaders from different countries were not communicating effectively. The company knew they had to make some changes to the system, if they wanted to be successful. Therefore, after careful consideration, the company decided to move to a more centralized structure. This change was needed to strengthen their business with regards to their compatibility amongst countries and creating a more efficient workplace in the United States and abroad. In the company’s business in Europe, instead of their being different leaders across the continent, there will

Target Corporation is one of the largest merchants in the world. Target is recorded to be the sixth largest retailer within the United States. Founded by, George Dayton in 1902 Minneapolis, Minnesota. Target stores have a variety of products which includes everything from clothing to automotive and electronics. It is a corporation that is on-top of their game and continues to grow day-out. It is a brand that is well known and continues to raise the bar each year effectively. This paper will detect the importance of internal and external within the corporation overall.

Target is an American retailing company founded in 1902. It is the second largest discount retailer in the United States (target.com, 2013). Targets mission is to make their store the preferred sopping destination for their guests by delivering outstanding value, continuous innovation and exceptional guest experience by consistently fulfilling their “Expect more pay less” brand promise. In order for Target to compete with the number one largest competitor Wal-Mart the four functions of management must be implemented in their strategic business plan. In this paper our team will explain how internal and external factors affect the four functions of

Customers make purchasing decisions based on the information they have among products and the values of goods a company offers. For that reason, companies have to promote their products to increase products awareness. In order to achieve organizational goals, companies must understand the market’s needs to ensure the success of their businesses. Such information can be gained through research. The industry that will form the basis of this paper is Western Canadian Shoe Association. The three brands under study are Reebok, Adidas, and Nike.

The Daniel Gill, the chairman and CEO faces the possibility of changing the organizational structure of Europe, Asia/Pacific, and the Western Hemisphere. The current organization includes an International Division which oversees production and marketing for countries outside the United States. The goal of changing the organizational structure of these three regions is to increase sales growth internationally and decentralize responsibility away from headquarters to field operations.

The IFE matrix is a summary step in conducting an internal strategic management audit of the PepsiCo. This strategies-formulated tool is to summarize and evaluates the major strengths and weaknesses in the functional areas of business. It also provides a basis for identifying and evaluating relationship among those areas of a business.

The athletic shoe industry is made up of companies that produce footwear for athletic use. This is a strong industry and has been around for over 100 years. The athletic shoe industry is one of the fastest growing footwear industries and have top growing sales compared to other footwear industries (NDP Group, 2016). The key players that currently dominate the market are Nike, Adidas, and Puma (Kates & Bolduc, 2013). This paper will use the porter five forces, industry life cycle, and the key players to understand the industry. Over these years the athletic shoe industry has grown into a competitive market.

Nike‘s vertical structure includes CEO Mark Parker and a board of directors chaired by co-founder Phil Knight. Although Nike has functional divisions and divisions based on specific products it is not a matrix organization. In a matrix organization, employees report to a functional and divisional manage. At Nike, employees report to the divisional manager and the president of each division reports directly to the CEO. Nike’s continued product innovation and successful marketing are due to the combination of functional and divisional organization using an operations department to insure communication between divisions. There is division of labor but it is not clearly identified. With a more pronounced division of labor and levels of direct supervision Nike can improve its

Enderle, K., Hirsch, D., Micka, L., Saving, B., Shah, S., Szerwinski, T. (2000, March 14). Strategic Analysis of Nike, Inc. Retrieved on December 14, 2005, from

A comprehensive analysis, using market data and market research, allows us to assess all areas affecting Nike’s strategic direction:

It did so in order to better focus its resources on changing customer needs as well as emphasize its strengths in the market place. The organizational structure now consists of centralized engineering and marketing organizations. This way the company has the ability to prevent product and resource overlaps and more effectively allocate its resources to areas yielding optimum profitability. The engineering side has eleven technology groups with people heading multiple groups and reporting to one person who then reports to the CEO. The marketing side has one head who reports to the CEO as well.