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. The mission statement of Nike is to “Bring inspiration and innovation to every athlete in the world” (Nikebiz, 2010).
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 manager (Bateman & Snell, 2009, p. 306). 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.
Nike has differentiated by creating divisions such as Nike Design, Sport Marketing, and Legal. The differentiation allows Nike to group similar tasks into work groups serving the whole company. Being a divisional company, Nike has grouped workers by products as well as regions. The regional divisions include UK and Ireland as well as Central and Eastern Europe.
Nike was created in 1972 and operated as a distributor of athletic shoes. Using sub-contractors, Nike produces a variety of their own name brand shoes as well... [continues]
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