Part 1: Organizational Analysis
Part 1: Organizational Analysis
Table of Contents
Overview and History4
Organizational Strategies and Innovation5
Organizational Design and Effectiveness6
Board of Directors:8
Nike Products and Services12
Information Technology and Control Systems12
Organization Size, Life Cycle, and Possible Decline13
Decision Making Processes16
Nike Power conflicts and politics17
Summary of Key Findings18
The following report is about Nike. Nike was established in 1968 and went public in 1980. Nike is an athletics wear producer that develops, designs their own products for many different sports. Some of the sports that they produce products for include gold, hockey, skateboarding, baseball, bicycling, tennis and many others. Their main sales are in shoes which they had managed a 50% market share in the United States just 8 years after the formation of the company. They have grown into a huge company with product lines for many different sports, including golf, hockey, skateboarding, baseball, bicycling, tennis and many others. Currently, they are located globally with the majority of their stores being located in the U.S. Among Nike stores, Nike also has purchased the bands Converse, Hurley, and Cole Haans and has multiple stores for these brands located mainly in the U.S. Looking at Nike’s financials we have determined that they are financially strong and have a strong cash flow. We also should note that the majority of their revenues are from shoe sales which we have determined as a possible threat if they are unable to predict future customer needs in this area. Nike has establish a good organizational environment where they support innovation from within (their employee), and establish good working teams that promote collaboration and a strong work ethic. Nike prides them in being able to hire strong staff members that are able to exceed in the task at hand. Throughout the report we compare Nike to some of its main competitors in comparing how well they are competing in the market. The key benchmarking competitor that we use is the Adidas Group since they are one of the most comparable companies to Nike in today market. Please see the table of contents for a detailed layout of the report and the items that it will include.
Overview and History
As the world’s leading athletic footwear, apparel and equipment company, Nike is dedicated to inspiring every athlete to reach peak performance. They are the largest seller of athletic footwear and apparel in the world. Nike was incorporated in 1968 and went public in 1980. Nike is still based out of Beaverton, Oregon, where the company was started by a University of Oregon track coach and one of his track and field athletes. They currently employ over 38, 000 people world-wide and recorded revenues of $24.1 billion in 2012 Their seven product focuses are running, basketball, football, athletic training, woman’s training, action sports and sportswear. Their largest competitors are Reebok, Adidas and New Balance. Nike began as a distributor of Japanese track and field shoes. Nike started manufacturing their own line of running shoes in 1972 and gained notoriety with their innovative “waffle” design. By the time they went public in 1980, just 8 years after they started manufacturing their own shoes, they had a 50% market share in the United States. They have grown into a huge company with product lines for many different sports, including golf, hockey, skateboarding, baseball, bicycling, tennis and many others. Nike’s main focus...