It is important to understand that each of these subsidiary brands appeal and cater to different groups of customers. This type of structure is needed so that Nike can focus on both Secondly, the divisional structure leads to a duplication of duties within the firm. A matrix structure is best suitable for Nike. In a matrix structure, there are multiple reporting lines and responsibilities for the employee. The localization of the marketing activities has helped Nike to become more effective in attracting the customers. Nike is known for a complex organizational structure that it describes as a matrix. Learning about the hierarchical structure of Nike can be quite helpful for writing papers on the company and it will also give you a clear idea on how the company manages its own operations.Let us look at each of the hierarchical levels of the company. First, when a single person is working on more than one jobs, he is answerable to more than one bosses. In a matrix structure, the authority passes vertically as well as horizontally. This strategy provides Nike suppleness for attending consumer's different preferences on sports attires in different markets at different regions of the world (Burgelman, 2016). The product design is done specifically for their needs. It allows the company to prioritize its goals, as having the right structure leads to the right flow of information. All the departments of a functional structure come under the president. On the other hand, it follows a divisional structure on the product basis. An organizational structure defines task delegation, and line authority establishment within an organization. Nike’s organizational structure gets a lot of praise, and it happens to be a matrix organizational structure. The market demand is highly dynamic, which compels the firm to be constantly on the lookout for new design trends, which can be turned to a new product. Penmypaper.com. The regional headquarters situated in the Netherlands, oversees the business operations in the EMEA region, which comprises of 27 nations. Throughout Nike, employees report to team managers who then relay the progress report to the department manager. The matrix organizational structure is a mix of two other organizational structures, the project system, and the functional system. There is no manufacturing of standard products for the entire world’s population. (Photo: Public Domain) Nike Inc. Content Theories: What Really Motivates Us. Nike is set up as a Matrix Organizational Structure, meaning that there are multiple lines of authority and some individuals report to at least two managers. The diagram shown above highlights the structure of Nike in terms of geographic distribution in different regions in the EMEA. Other divisions within Nike organizational structure are the subsidiaries’ and Nike licensing divisions. Nike has an organizational culture that encourages human resources to behave in ways that address business objectives. Even though there are multiple reporting authorities, the employees are well-aware of what is expected from them from their supervisors. All Right Reserved. Nike’s organizational structure is worthy of study due to the fact that it has been a successful organization since its inception. At present, the brand of Nike is valued at USD 32 billion, with the largest market share in the global apparel sector. At Penmypaper, we work with some of the top academic writers, with 7+ years of professional experience in their respective domain, to offer you the best assistance that you can get. Nike Organizational Structure By: Abby Huskey and Helena Harris Structure Efficiency Strengths ability and resources to make products managers have first hand information and experience with how their departments operate. Why Brand Architecture is Fundamental to Building Power Brands? People have specialization and perfect skill sets and their placement is with similar people in a group. This worldwide company operates in an extremely different organizational structure than other companies, such as Reebok and Adidas. Its Advantages and Disadvantages, Adaptation Level Phenomenon – understanding its importance, Risk Matrix – Factors of a risk matrix and how to implement it, Prioritization Matrix – Different types and how to use a prioritization matrix, Advantages of Nike’s Organizational Structure, Disadvantages of Nike’s Organizational Structure. The operations of each division are separate from each other. Nike possesses a geographic divisional organisational structure. According to Flatworld Knowledge, Nike is a model of a successful company that uses this structure effectively. The new structure is designed to be flatter and more efficient. Global Milk brands in 2020 – What makes them successful? Whenever you are struggling with your assignments and thinking where can I get my paper writer, just talk to us. A close check is kept on these divisions. Training programs are designed to uphold such corporate culture that aligns with the Nike brand image for sports footwear, apparel and equipment. … Nike follows a matrix organizational structure which is a combination of horizontal and vertical structures. It allows the company to develop a brand image which is universally identical in all target markets, thereby creating a globalized brand. Nike is set up as a Matrix Organizational Structure, meaning that there are multiple lines of authority and some individuals report to at least two managers. This can help you to prepare your own paper on Nike without any essay writer help. Nike’s Organizational Structure MGT 330 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. These subsidiaries operate with certain degree of autonomy, which clearly mentioned boundaries. From visiting public places to getting famous sports stars in their advertisements and holding shows with those sports stars to gain people’s attention. combination of two or more types of organizational structures These subsidiaries take most of the decisions themselves, with authorization from the headquarters. The entire global business of Nike is segregated into key geographic regions such as North America, EMEA (Europe, Middle East and Africa), Greater China, and APLA (Asia Pacific and Latin America). This means that the tasks of each functional group are done quickly. Adding to this, the functional structure helps in enhancing the best form the workforce. Strengths of Nike's Innovation Management Structure Over the year, Nike has been able to achieve a superior performances using matrix innovative management structure. The organizational chart of Nike displays its 145 main executives including John Donahoe, Matthew Friend and Andrew Campion × We use cookies to provide a better service. Nike Air Zoom track shoes. Assess whether Nike’s organizational structure is still a major strength that contributes to its success, or if it is creating problems that will call for organizational design changes in the future. In a matrix structure, there are multiple reporting lines and responsibilities for the employee. The local requirements of the individual markets in a sub-region is reported by the sub-regional manager to the EMEA regional headquarter in the Netherland. Best Green Tea Brands in the world in 2020: What makes them the best? It is important for you to understand that different companies have different organizational structure, which is responsible for respective growth and sustenance. The firm gets to know about the culture of people living there and it markets its products according to their culture’s liking. Over the year, Nike implements efficient innovation management structure that assists the company to achieve effective innovative process. Nike’s flat structure, also known as a matrix structure, consists of several divisions separated into subsidiaries: Converse, Hurley and others, which all report to Nike’s global headquarters. This is to make sure that the development and innovation keep happening in all products that Nike manufactures. The employees have two reporting authorities, one from the functional department and the other from the product category. Established in 1964, the company has now become one of leading sports shoes, apparel and equipment brand in the world. 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