University Case Study: Organizational Structure Analysis of Nike

This case study examines the organizational structure of Nike, focusing on its matrix structure and how it addresses market differences. The analysis explores the strengths of this structure, particularly in managing large-scale projects and responding to local consumer preferences. The assignment also suggests potential improvements to Nike's organizational structure, including enhanced communication capabilities and a more streamlined approach to data management. Furthermore, the study delves into the best organizational design for Nike, highlighting the benefits of an organic structure and its adaptability to changing market demands and customer needs. The case study also discusses the implementation of new trends, such as environmentally sustainable products, and strategies for maintaining a competitive advantage in the athletic apparel and shoe market. The conclusion emphasizes the importance of adaptability and a flat organizational structure for continued success.

Running head: ORGANIZATIONAL STRUCTURE IN NIKE
ORGANIZATIONAL STRUCTURE IN NIKE
Name of the Student
Name of the University
Author Note

1ORGANIZATIONAL STRUCTURE IN NIKE
Question 1
The Organizational Structure in Nike
The organizational structure in Nike clearly reflects the abilities and limitations and the
strengths of the business in its operations. In the case of Nike .Inc the company follows the
Matrix Organizational Structure where the corporate highlights the need to address the difference
among the regional market. Nike has developed its organizational structure to enable the
adjustments leading to the market differences. The Matrix Organizational Structure would best
work for Nike as because it will provide the company with solutions to the large-scale project
problems faced by the company. This allows the company in order to identify those problems
and implement new project structures, which had already co – existed with the permanent
functional structure, present in the company (Kelly, 2019).
The Matrix Organizational Structure will be best for Nike . Inc because this type of
organizational structure best allows the company in rapid creation of efficient and effective large
scale project structures which also creates employment of members. This structure also helps
Nike in responding to the local consumer taste and ensures that the company is benefitted from
the integrating advantages like likely sourcing and global marketing (Fatehi and Choi, 2019).
Question 2
Improvements in the organizational Structure of Nike

2ORGANIZATIONAL STRUCTURE IN NIKE
Fig 1. Represents the Matrix Structure of Nike .Inc
Source Self Made
General Manger
Manager of
Project
Manufacturing
Manager
Engineering
Manager
Sales Manager
Project
Manager A
Project
Manager B
Project
Manager C
Project Manager
A
Project Manager
B
Project Manager C
Project Manager A
Project Manager
B
Project Manager C
Project Manager A
Project Manager B
Project Manager C

3ORGANIZATIONAL STRUCTURE IN NIKE
The above diagram shows the present organizational structure of Nike where the company can
make corporate office communications capabilities with the branch locations and the branch
manger scan be improved dramatically. This will help the sales and inventory data to be
monitored in real time. Electronic journaling, credit authorization, as well as the efficiency of
sales reconciliation processes can be increased with the addition of the database of the stores into
the organizational structure of Nike .Inc. The top management team at Nike should consist of a
group of committee all bringing together to the company a vast area of market knowledge and
ideas (Carson, 2018). They should be capable of working independently and recognize common
stakes.
Question 3
Organizational Design best for Nike
There are two main types of organizational designs – the organic structure of
organization and the Bureaucratic design structure (Hatch, 2018). Looking at the past success of
the organization and the market share that it occupies in the athletics shoes, they should adopt the
organic structure for the best results. The organization has done well in the past by outsourcing
its production segment. However, this is not an easy job but Nike succeeds in it because of their
brand reputation and quality (CB et al.,2019). Hence, they need an organic structure, which
focuses on decentralization, and very few rules and regulations are there. An organization with
too many rules and regulations cannot outsource activities because then there will be too many
conflicts and complexities. The organic structure supports sharing of task and informal
coordination and thus they can outsource its business even without any problem. Nike is
focusing on improving its strategies because these days customers have varied requirement to

4ORGANIZATIONAL STRUCTURE IN NIKE
meet these changes, the organization has adopted environmentally sustainable products such as
Nike free. Nike has an adaptable approach towards its problems and organic structure also
focuses on adaptability.
Question 4
Implementation of new trends in Nike
The organization structure presently followed at Nike is the organic matrix structure and
that is why they are leading the market segment of athletic apparels and shoes. The organic
structure focuses on decentralization that means empowering its employees to takes their own
descions, fewer rules and regulation and coordination between the internal departments of the
organization and the outsourced activities to avoid any conflicts (Luhmann, 2018). Nike is also
focusing on adaptability as its new strategy because of the changing needs of the customers and
to serve the customers better. It company has produced new environmentally sustainable shoes
and apparels called the Nike free, it has taken into consideration the problems of over-sized
women and is providing them with new apparels from Nike. These strategies show that the
organization is being adaptable to changing needs of the customers and the market. They have
joined hands with the Chinese ministry of education to provide education to the students of
higher secondary thereby creating a good impact in the society. The organization believes in task
sharing and that is why they have adopted outsourcing as their main strategy for leading the
market. However, they can create a more flat organization structure to improve the efficiency
and there by gaining an competitive advantage over its competitors.

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References
Carson, S. G. (2018). The Corporate Legitimacy Matrix–A Framework to Analyze Complex
Business-Society Relations. Philosophy of Management, 1-19.
CB, S., 8, F., 35, A., 1X-3X), D., Socks, N., & Socks, N. et al. (2019). Nike Shoes, Activewear,
Accessories | Zappos.com. Retrieved from https://www.zappos.com/nike
Fatehi, K., & Choi, J. (2019). Organization of Multinational Operations. In International
Business Management (pp. 241-274). Springer, Cham.
Hatch, M. J. (2018). Organization theory: Modern, symbolic, and postmodern perspectives.
Oxford university press.
Kelly, R. (2019). Leadership Development and Structure—From Egosystems to Ecosystems. In
Constructing Leadership 4.0 (pp. 69-99). Palgrave Macmillan, Cham.
Luhmann, N. (2018). Organization and decision. Cambridge University Press.