Report on Leadership: Nike's Strategies and Challenges in Business

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Added on 2020/10/23

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This report provides a comprehensive analysis of leadership within the Nike corporation. It begins with an introduction to the importance of contemporary leadership development, emphasizing its role in achieving competitive advantages, employee engagement, and organizational sustainability. The report then explores the leadership styles practiced at Nike, particularly the democratic and autocratic approaches, and evaluates their effectiveness. It delves into the challenges and strengths of potential leaders, using a self-assessment to highlight key leadership qualities. Part 2 offers an overview of contemporary leadership styles, including transformational, charismatic, and transactional leadership, and their relevance within Nike. The report critically evaluates Mark Parker's leadership style, providing recommendations for his successor and concluding with a summary of key findings and references.

LEADING BUSINESS
ORGANISATION

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Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................ 1
A) Importance for contemporary leaders to receive in-depth leadership development ............1
B) Leadership style being practised in the environment.............................................................2
C) Key challenges and strength as a potential leader..................................................................3
PART 2 ....................................................................................................................................... 7
A) Overview of contemporary leadership styles and leaders importance...................................7
B) Critical evaluation of Mark Parker's style of leadership........................................................9
C) Recommendations for Mark Parker in context of how he can choose his successor...........12
CONCLUSION..............................................................................................................................13
REFERENCES ............................................................................................................................. 15

INTRODUCTION
Leadership is one of most indispensable part of an organisation that can refer as an
activity of directing individual group of company which introduce shared vision and coherent
mission among workforce (Allen, 2012). A Nike is an American multinational corporation that
involved in marketing, sales, design, manufacturing, development, accessories, services and
equipment. The founder of this company is Phil Knight and Bill Bowerman that deal with
recreational items, athletic footwear, sports equipments and apparel athletic etc. In this report,
the importance for contemporary leaders is disucssed in order to receive in-depth leadership
development for achieving competitive advantages, employee engagement and organisational
sustainability. Along with it, this will also succinct overview of contemporary styles of
leadership and its importance.
PART 1
A) Importance for contemporary leaders to receive in-depth leadership development
Contemporary leadership
It is a dynamical relationship which is based on common purpose as well as mutual
influence within collaborators and leaders which leads both parties at the higher level of moral
development and motivation as it will help in balancing within higher quality of creativity,
performance and innovation along with employees engagement (Contemporary Leadership
Styles, 2018).
Importance of companies investing in their potential leaders development
 Financial performance: In this, if I will rate highly on human capital investment which
will provide returns on stock market 5 times higher than those companies who invest less
on human capital. In this, leadership development help in sustaining company and
gaining competitive advantages by improving buyers satisfaction.
 Retain talent: In this investing on leaders development will help in increasing
organisational ability and employees engagement which mainly deals with the gaps of
talent pipelines and also help in declining headache, costs linked with turnover,
sustainability of companies and gaining competitive benefits.
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(Source: Importance of companies investing in their leaders development, 2018)
 Strategy execution: Companies require a strategy of leadership that closely linked with
enterprise strategy. Investing on leadership development will help in changing and
shaping business strategy and culture. It will help in gaining competitive benefits and
organisation sustainability.
B) Leadership style being practised in the environment
In Nike, they are using democratic style in their working environment as leaders takes all
the decisions by involving their team members. In this, it help in motivating employees that they
can take their own decisions. This autocratic styles of leadership appears to be practised within
the environment of the Nike as this practices are provided as more significant manner. In this
company, autocratic leadership is useful because of having a strongly concentration on command
by leaders (Anderson and Sun, 2017). It also provide clear separation within teams members and
leaders. This leadership style help in giving a proper structured and rigid of work. This help in
taking quick decisions which saves the time and accomplish the work within the given period of
time.
In this, if Nike is using democratic style of leadership within their environment, then it
will consumes lots of time while making decisions along with this it also give rise to conflicts
among the employees. According to my perception, I will prefer to select a autocratic style of
leadership in which I have control over all the decisions as well as less involvement of team
members. I will make choices which is based on my own judgements and ideas and I don't
accept the advices of my team members. I am using autocratic styles of leadership in order to
take fast decisions of business activities which help in increasing productivity within the time
2
Illustration
1: Importance of companies investing in their leaders development

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without wasting time. This will also help in maintaining coordination among all the members as I
have all the power of decision making without involving any one due to this conflicts will not
take place within the workplace.
C) Key challenges and strength as a potential leader
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1. (4) 2. (3) 3. (4) 4. (2) 5. (3) 6. (5) 7. (1) 8. (4) 9.(1) 10. (2) 11. (4) 12. (5) 13. (3) 14. (2) 15. (5)
16. (4) 17. (4) 18. (5) 19. (2) 20. (3)
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1. (17) 2. (13) 3. (16) 4. (7) 5. (13)
Strength Challenge
As per my above analysis of authenticate
leadership, self evaluation it shows that my
strength is my purpose as well as passion that
have helped in organisation's sustainability.
Along with this, it also shows that decision
making and time managing ability are two
major strengths of mine which help me in
knowing others and provide them opportunities
according to their hearts. This help me in
increasing higher level of productivity within
the workplace.
In this, challenges for me is that I have to
maintain relationships and connectedness with
each other within the working environment by
giving command to their team members while
coordinating with one another. I have to
maintain self discipline and consistency with
the help of autocratic style of leadership and
also understand behaviour and values of their
team members in order to manage the teams.
Hence, these challenges will help in improving
my own abilities in an positive manner.
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PART 2
A) Overview of contemporary leadership styles and leaders importance
Leadership is an dynamical relation which are made in the context of mutual influences
as well as common intention i.e. established within leaders and collaborations. This give help in
leading both parties to higher level of moral improvement as well as inspiration and they are
evoking actual changes (Bateman and Snell, 2011). Their are several contemporary styles of
leaders which are followed by Nike leaders. It is analysed that leader who will decide which type
of leadership style is best suitable for business development on the grounds of existing business
environment. In this terms, heads of teams members existed within Nike organisation which play
a very important part in decision making while choosing effective style of leadership. The
different types of contemporary style of leadership are used by Nike's leaders according to
existing situations are as follows:
 Transformational leadership: This theory help in creating higher level of employees
performance which is very important for every organisation. Leaders of business should
be able to motivate their team members for accomplishing their given task.
Transformational theory is found at all the levels of the company like as divisions, teams,
departments and entire company (Transformational leadership style, 2018). These
leaders are risk taker, inspiring, visionary, daring and thoughtful thinker. As per case
study of Nike, transformational style can be applied at the time when Mark Parker had
joined the Nike organisation in 1979 and served several capacities of management in
development, product design, brand management, research design and manufacturing.
After that he recognised as a goods visionary for the company leading innovations and
product designs.
Advantages Disadvantages
This theory allow for quick making of vision
of the company. Transformational leadership
will promote enthusiasm within the workplace
and it also help in motivating and inspiring
their team members to give their best within
the company.
Transformational leaders are mainly known for
big pictures vision and inspiration. Company
can struggle in facing serious challenges with
detail orientation. These leaders are depends
too much on emotion as well as passion which
tend to see truth and reality.
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 Charismatic leadership style: As per this theory, leaders commonly influence their
subordinate by showing unique attributes as well as natural charm. Additionally, leaders
posses different self confidence, visions which are primarily known for making a proper
use of unconventional methods. Leaders are having attractive and aura personality which
seek peoples attention within the working environment it will help in gathering
personnels (Cuadrado And et. al., 2012). Hence, it is rightly said that chief of the
company mainly depends on its charms instead of skills and power in order to provide
impacts on business activities. Teams heads also have surprising level of confidence that
aid them in presenting views within large numbers of employees. In this it is observed
that Nike leaders are implementing this style of charismatic leadership at the time of
giving presentations in front of all the employees. Through spreading charm fragrance as
well as attractive personality company will aid in grabbing listener as well as audience
who are their in the exhibitions. Along with this leaders also used to maintain trust and
honesty among their team members for themselves by using art of visible self sacrifice. It
will help them in gaining more contribution and support of their team members.
Advantages Disadvantages
In this style, it will help in increasing workers
loyalty as well as commitment. In this, it also
assist in increasing higher level of
productivity within the workplace. This styles
of leadership move towards innovation as
well as change which makes sense. It also
establish the learning culture within the
working environment.
This style is not having a right focus on ethics.
It is more on about personality as well as belief
system of particular person. Along with this
company is having a lack of clarity as they
forget to employee tactics which are
responsible for the business success.
 Transactional leadership style : This style of leadership is very unique which is very
different from transformational leadership. Leaders are following the same concepts that
believe in “stick & carrot” method along with this also take use of rewards and
punishments at the time of guiding and directing their followers. Hence, it is stated that
leaders depends on various constructs in order to create motivation among the employees
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which is penalty and reward. Teams leaders are performing at Nike organisation are
implementing this style of leadership when they are not having requirements of the
process of innovation within their workplace (Fernando, 2016). Irrespective from that,
they focus on maintaining predictability as well as consistency over time. Similarly,
leaders of the company pay attention on errors or faults take place within the workplace.
This is completed by monitoring, close supervision in the context of workers
performance, deep investigation and oversight. Main reason of using this method is to
concentrate on meeting short term objectives as well as aims rather than long term.
Advantages Disadvantages
This style of leadership will stimulate the team
members effectively in order to increase
productivity within the workplace. Along with
this it help in achieving targets at all the level
of the organisation.
Transactional leadership styles will remove
individuality from the process of productivity.
This style will limits the amount of creativity
and innovation which are achievable. This
theory will help in creating more followers
than the leaders.
In this, transactional leadership theory is best suitable in case of Mark Parker as this has
helped in inspiring the individual and motivating other employees by providing them rewards
and punishments within the working environment. This has helped in maintaining a proper
environment of working which will aid in achieving targets and objectives in an effective way.
B) Critical evaluation of Mark Parker's style of leadership
Nike organisation is an American multinational corporation that give efforts to
manufacture, design and develop at the global level as well as sales and marketing of apparel,
footwear, accessories, equipment and many others services. It was founded by Phil Knight and
Bill Bowerman within the year 1964. It gives various services or goods to persons for
accomplishing customers desires effectively. Nike company headquarter are in Washington
Country US and serve all over the world. They had provided the jobs to approx 74,400
employees are working on daily basis within the firms. It is an world's biggest supplier of
apparel, athletic shoes and a leading maker of sports equipment which has revenue around
US$24.1 billion within the fiscal year.
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In the year 2006-2017, Mark Parker has played vital roles as President, Chief Executive
Officer and Chairman of company. At professional level, he had used several kinds of leadership
styles according to the situation existed within the workplace – corporate and premises world.
According to Gehrke and Claes (2017), in order to apply change management, Mark
Parker had used transformational leadership style as company need innovative and creative way
of manufacturing. As buyers are demanding different sports wear items at low prices. Hence,
Mark Parker consider this condition in order to bring creativity or innovation within the work
place. This person is very innovative and imaginative which makes him better visionary and
leader as well. In this, he was using appreciative inquiry approaches in order to create a feeling
of inspiration within the employees so that they will not resist to change. In this, Mark Parker is
using the method of appreciative inquiry which seeks to engage stakeholders within self
determined change. In this approach, organisational change mainly concentrate on his own
strengths rather than weakness. Hence, employees performing at Nike company will also
opposing to the change management by using this method. This appreciative inquiry approach is
explained in detail below:
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