Nike Inc. by Mohammad Musaib
Effectiveness of Structure:
Nike Inc. Has a divisional (M-Form) design as Nike is an organization involved in multiple businesses in related areas and all of them operate in Nike’s framework; based on the product approach to departmentalization.
Chain of Command
Nike Inc. has a flat organizational hierarchy. There are three levels of management and three levels of subordinates.
Span of Control:
As this is an international brand the middle managers and the lower managers have a wide span of management with a lot of people working under them while there is narrow span of management for the CEO as she is over the managing director, general manager of creative development, GM of global initiative and the global directors who are answerable and report everything to her about whatever happens in the firm.
Delegation and Empowerment:
Nike is concentrated at the top as the CEO decides everything. She has a board of advisors to advise her and even a board of directors but at the end of the day the decision lies in the hands of the CEO.
Nike has competitors like Adidas and Puma. Puma and Adidas were one brand till the brothers who owned it separated. Adidas Shares the same divisional organizational design as Nike as Adidas is also an organization involved in multiple businesses in related areas and all of them operate in one framework; based on the product approach to departmentalization. Adidas is also concentrated on the top like Nike and has the same span of control.
I believe that divisional design structure suits Nike and other brands which are international like Adidas as they manufacture more then one good. For example Nike produces shoes, clothes, footballs, gloves, etc. I believe that the centralization is also good for the company as the firm is producing goods for international use and not local so there is no need of giving power to any local managers or leaders. The span of...
Please join StudyMode to read the full document