Essay on Nike Case Study

743 WordsApr 6, 20133 Pages
1. A decision to retain an in-house arm of agency Weiden & Kennedy by Nike exemplify the concept of organizational design by allowing Nike use the agency’s creative designers to focus solely on Nike work, giving them un-parallel access to executives, researchers and anyone else who might provide Nike advertisers with their next inspiration for marketing greatness before listening to any other organization. Having the agency in the building is having them at their disposal at anytime they need them and also the agency will have to consider them first incase of any new ad or good idea discovered by the agency or when Nike needs to salvage a problem with the help of the agency. Thus, the agency at their finger-tips serves great advantages…show more content…
Nike would have known the right factories to outsource to instead of using factories that fail to meet their standards. 3. Fig. 1 shows what Nike network structure looks like, Mark Parker (CEO) reports to the Board of Directors and in return almost every manager/worker reports directly to him when the need arises. Nike is a divisional company but retains some functional departments as well. The brands Nike sells comprise many of the divisions of the company. Apparel for Nike brand, Converse, and Jordan brands are examples of some divisions created around specific products. Functional departments such as Nike design and investor relations are also part of Nike’s organizational structure. 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

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