Organizational Behavior: Nike's Corporate Culture Analysis Report

This report provides a comprehensive cultural analysis of Nike, examining its organizational structure, values, and practices. It begins with an overview of Nike's operations, followed by a literature review of relevant concepts. The report then delves into Nike's cultural analysis, including levels of organizational culture, types of culture, and its motivation system. It explores how Nike's corporate culture is reflected in its business activities and the role of national culture, using Hofstede's cultural dimension model. A SWOT analysis evaluates Nike's cultural practices, leading to an assessment of its culture, conclusions, and recommendations for further development. The report highlights Nike's commitment to innovation, diversity, and employee well-being, emphasizing its impact on global success.

RUNNING HEAD: Organizational Behavior
Organizational Behavior

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Contents
Introduction......................................................................................................................................2
Overview of Nike............................................................................................................................2
Literature Review............................................................................................................................3
Cultural Analysis.............................................................................................................................3
Levels of Organizational Culture.................................................................................................3
Types of Culture...........................................................................................................................5
Motivation System of Nike..........................................................................................................6
Reflection of Corporate Culture in Business Activities of Nike.....................................................6
The Role of National Culture in the Corporate Culture of Nike.....................................................6
SWOT Analysis of the Cultural Practice of Nike............................................................................8
Assessment about the Culture of Nike.............................................................................................9
Conclusion.....................................................................................................................................10
Recommendations..........................................................................................................................11
References......................................................................................................................................12

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Introduction
The basic objective of this assignment is to make cultural analysis of the American multinational
corporation, Nike, Inc. Nike is considered to be the largest supplier of apparel and athletic shoes
and a chief manufacturer of sports equipment. The mission of Nike is to bring inspiration and
innovation to every athlete in the world.
This report provides brief introduction regarding the operations of the company along with its
current position. Another segment of this report provides information regarding the cultural
analysis and the role played by national culture in Nike’s corporate culture with the help of
Hofstede’s cultural dimension model. Furthermore, the strengths and weaknesses of Nike have
been highlighted through a SWOT analysis.
Moreover, this report also presents the assessment regarding the culture of Nike along with the
conclusion regarding the findings and recommendations about the factors which can assist in the
development of company’s culture.
Overview of Nike
Nike is a multinational corporation from America that is engaged in designing, developing,
manufacturing, marketing and sales of apparel, footwear, accessories, equipment and services all
across the globe. Nike was founded in the year 1964 as Blue Ribbon Sports and officially
acquired the name of Nike, Inc. in the year 1971. Nike is the largest supplier of apparel and
athletic shoes in the world. The products of Nike are marketed under their own brand, as well as
Nike +, Nike Pro, Nike Golf, Nile Blazers, Air Jordon, Air Max, Air Force 1, Converse and
Hurley International. Its branch offices and subsidiaries are located in a number of countries
including Brazil, Australia, Japan, Mexico, Germany, Ireland, Spain, Vietnam, Malaysia, New
Zealand, South Africa, etc. Various high-profile sports team and athletes are sponsored by Nike
across the globe, with highly acknowledged trademarks of the Swoosh and “Just do it” logo.
The total number of employees employed by Nike is estimated to be 74,400 (Statista, 2017). In
the year 2017, the brand value of Nike amounted to $29.6 billion and its revenue and total assets
were estimated to be US$ 34.4 billion and US$ 23.26 billion (Nike, 2017).

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Literature Review
This part addresses the models and terms related to the topic. Organizational culture covers two
elements. Firstly, it considers the performance of the organization in relation to the allocated
tasks and secondly, it also takes into consideration the emotional feelings of employees regarding
their work and organization. For supporting this idea, Andrew Brown (1998) explained
organizational culture refers to the form of values, beliefs and learned ways of dealing with
experience gained during the course of an organization’s history, and which tend to be
established in its material arrangements and in the activities of its associates.
Cultural Analysis
Levels of Organizational Culture
Different authors propose different explanations and definitions of organizational culture.
Organizational culture includes everything in the organization and assists the employees in
achieving common goals. Organizational culture is defined as the set of values, artifacts and
assumptions that arise as a result of interactions among the members of organization (Driskill &
Brenton, 2010). Organization culture is considered to be a pattern of basic assumptions that re
regarded as valid and are imparted to the new members in the form of ways to think, feel and
perceive in the organization (Nelson & Quick, 2010). Three levels of organizational culture have
been suggested by Edgar Schein namely artifacts, espoused values and basic assumptions.
Artifacts- Artifacts are the symbols of culture in the social and physical work environment
(Hogan & Coote, 2014).
Ceremonies and rites- Nike celebrates its values with the help of ceremonies. It is strongly
believed by Nike that the employees should be rewarded or compensated for their outstanding
performances. This is ensured by providing rewards and benefits such as creating a positive
working environment, ensuring the wellness of employees and providing them the opportunity to
stay healthy and fit. Such reward occasions play an important role in motivating the employees
and providing them recognition. Ceremonies such as annual meetings and conferences are held
from time to time (Burkus, 2014).

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Stories- It includes stories regarding success and failures that play an important role in shaping
organizational culture (Coe, 2017). Nike invests in their culture and offers their employees
security, financial, competitive health, and work-life benefits. This in turn creates a sense of
security among the employees. Nike offers opportunities for career benefits and personalized
benefit options which allows an individual in attaining full potential. This has led Nike to reach
new heights of success. Relocation facilities are also provided to the employees in case they find
their placement at faraway places.
Rituals- Nike believes in diversity and equality in the workplace. They encourage their
employees to be innovative and creative by thinking out of the box. The efforts of the employees
are valued by rewarding them. A positive working environment is aimed to be created by taking
such steps.
Symbols and Motto- Nike has a swoosh symbol that represent the wing of the renowned Greek
Goddess of Victory. The motto of Nike is ‘Just do it’ which encourages the employees to give
their best efforts in taking the organization to new heights.
Espoused Values- Espoused level is the second level of organizational culture which represent
the clearly specified norms and values that are favored by an organization (Kinicki, 2008). The
code of ethics of Nike provides a number of values. Nike believes that every employee must
reflect their loyalty, honesty, fairness, trustworthiness, accountability and concern for others in
their business. Nike is sensitive in keeping their good reputation and using good judgment in
conducting business.
Basic Assumptions- Basic assumptions are considered to be the most important level. The
existence of Nike is for the purpose of serving athletes. Innovation is introduced in the products
taking into consideration the needs of world’s best athletes. At Nike, every employee is
considered to be an explorer. It is in its nature to innovate. Nike is passionate regarding believe
that everyone should have the required tools for reaching their potential. Investment made by
them in their employees is for inspiring new ideas, products and methods that drive the future of
sport.

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Types of Culture
Four types of culture have been described by the author Charles Handy namely power, task,
person and role.
Power- there are various organization in which there is centralization of power and decisions are
made only by those who hold power (Persily, 2013). Nike does not have a centralization of
power. It has delegated its decision making authority to the local market level. This mover
towards decentralization by Nike is considered to be the reason behind rapid increase in
international sales. Such decentralization has further increased the job satisfaction level of
employees which in turn has subsequently reduced employee turnover (Peretz, Levi & Fried,
2015). Excellent relationship is cited by the employees with management and fellow employees.
Task- task culture is followed by the organization in which teams are formed for achievement of
organizational goals. The working environment of Nike is similar to task culture. Every
employee of Nike contributes to the achievement of the goals of the organization by providing
their best efforts and ideas. Nike believes that success of the team is possible when everyone
make equal contribution.
Person- this type of culture puts greater emphasis on individuals. Individual specialization and
expertise is essential. Nike gives greater importance to the hiring process. Biasness is completely
eliminated from the critical moments of the process of hiring. The employment of individuals is
completely dependent on their talent. Therefore, there is hiring of diverse individuals by
supporting blind resume reviews and excluding data collection regarding the salary history for
informing hiring decisions. In other words, diversity is followed in the organization.
Role- It is a type of culture in which role are emphasized rather than individuals. This culture is a
bureaucratic one in which rules and regulations are required to be followed strictly. This type of
culture is not followed in Nike. Employees are not bound by rules and regulation instead they are
given freedom for bringing their experiences, creativity and innovation. There is flexibility with
respect to working hours in the organization which in turn provides the work-life balance to
employees.

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Motivation System of Nike
The guiding philosophy adopted by Nike has the power of influencing, inspiring and challenging
employees on everyday basis. The employees are challenged through brainstorming sessions and
group exercises for defining their possible future and the steps for reaching there. Nike invests in
the providing learning and development opportunities which helps in amplifying the energy,
talent and capabilities of employees. Successful employees are rewarded by Nike through
excellent rewards and benefits. Competitive total compensation is offered by Nike including
benefits opportunities for staying fit, ensuring wellbeing of their families and creating a positive
working environment. As a multinational company, health coverage, time off, fitness center
memberships, retirement savings, etc. varies in accordance with the geographic location. Total
benefit package offered by Nike is dependent on location, position and years spend with
company and includes paid vacation, holidays, health insurance, disability insurance, life and
accident insurance, product discounts, employee stock purchase plan, retirement savings plan,
transportation allowance, etc.
Reflection of Corporate Culture in Business Activities of Nike
The characteristics of corporate culture of Nike such as talented, diverse and inclusive helps in
sustaining the business and market competence (Miller, Ngunjiri & LoRusso, 2017). Such
characteristics of the corporate culture of Nike helps in sustaining talent and infrastructure
required for the production of most popular athlete shoes, apparel and equipment of the world.
The diverse workforce is encouraged to openly share their ideas which facilitates the
maximization of product development cycles in terms if creation of new designs for apparel,
sport shoes and equipment (Christiansen & Chandan, 2017). Inclusiveness is emphasized in the
organizational culture of Nike Inc. which minimizes workforce problems supports streamlining
apparel, athletic shoes and designs of equipment and process of production.
The Role of National Culture in the Corporate Culture of Nike
The total number of employees employed by Nike is estimated to be 74,400 (Statista, 2017). The
largest concentration of its employees is in North America. The employees belonging to
European Headquarters of Nike comes from more than 70 countries. The Greater China Campus
of Nike which is Shanghai-based is home to several thousand employees. Nike Greater China is

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still concerned with the development of local talent along with making the discovery of varied
range of candidates from the communities across the globe. Nike believes in breaking down the
barriers, overcoming the differences bringing people together. The diversity of its employees is
visible from the collection of its employee resource groups. Such networks assist in increasing
cultural awareness, delivering career developmental experiences and demonstrating their
commitment to diversity (Rice, 2015). This highlights the inclusiveness of all the communities.
There are eight communities that are formed and managed by the employees in Nike Inc. It
includes Asia Pacific and Friends Network, Ability and Friends Network, Black Employee and
Friends Network, Pride Network, Latino and Friends Network, Nike Military Veterans and
Friends Network, Women of Nike and Friends Network, and Native American and Friends
Network. Nike believes in unleashing the capability of every athlete by paying attention to the
voices of each culture, country and community.
Geert Hofstede identified five dimensions of culture which also act as the most important
contributors for Nike.
Power Distance- Power Distance Index (PDI) is used at the time of considering the levels of
inequality in the organization in terms of management styles, agreement between subordinates
and superiors, etc. (Sun, 2009). In U.S., South Africa and Netherlands, the power distance is low
while in other countries such as China, Chile, Brazil, Mexico, etc., the power distance is high.
The world headquarters of Nike is situated in North America where there is low power distance.
Therefore, this dimension does not affect Nike in North America. However, in some countries
where it operates such as Mexico, Brazil, Chile, the high power distance influence its day to day
working.
Uncertainty Avoidance- Uncertainty avoidance refers to the preference of the country people
regarding situations that offer clear rules relating to prices along with standards that govern
behavior in case of uncertain changes. The employees in the offices do not want to take risk or
stress in relation to the changes that have the capability of influencing their future. In U.S,
Europe and Africa, the uncertainty avoidance index is low to medium which means the
employees of Nike in such countries are not afraid of losing or leaving their jobs. In case they
feel dissatisfaction with any of the factors such as environment, salary, working conditions, etc.,
they leave the job (Lee & Kramer, 2016).

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Individualism- it means the preference of people to act as an individual or as a group or team
(Hofstede, Hofstede & Minkov, 2010). Individualism is high in U.S. and Africa. Employees of
Nike in such countries handle the entire situation as an individual and not as a group. All the
responsibilities and decisions are handled on their own. However, it is low in China, Chile, etc.
where people want to act as a team.
Masculinity- the higher side of this dimension represents masculinity which is defined by
competitiveness and assertiveness. On the other hand, the lower side of this dimension
demarcates feminine traits such as concern with the environment, laying stress on the quality of
life, etc. China, South Africa and U.S. are considered to be masculine countries which in turn
have subsequently increased the competitiveness among the employees. This is done with the
help of excellent volunteering programs which encourages and motivates the employees to give
their best for attaining a better position in the company (Luthans & Doh, 2018).
Long term/ Short term Orientation- this dimension is considered to be Confucian work
dynamism which is dependent on the strategy of the company whether long term or short term.
The goals and image of the Nike represents that the vision of such a big multinational company
cannot be short term. Therefore, the location of the offices of Nike does not affect its long term
vision.
These dimensions assist in concluding that a significant role is played by the national culture in
every multinational company. Diversity among the employees is openly accepted in Nike.
Employees from all countries and cultures are given equal importance. All the employees are
made comfortable at the workplace by incorporating a variety of programs that resolve their
issues and queries in no time (Stahl & Tung, 2015).
SWOT Analysis of the Cultural Practice of Nike
Strengths
The ‘Just do it’ approach adopted by Nike makes it a competitive organization which in turn
shapes the attitude of employees towards the business. Cultural diversity is respected in Nike by
emphasizing equality as an essential element of corporate culture (Downey, Werff, Thomas &
Plaut, 2015). Employees of Nike are motivated by offering various, financial, security,

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competitive health and work-life benefits. Employees want to work with the organization for
attaining their full potential and personalized benefits.
Weaknesses
The work-life balance is impossible for the employees of Nike as Nike expects its employees to
be available for the company 24/7. Growth of the employees in Nike is mainly dependent on
networking. The company is considered to be weak in the authenticity of appraisal process.
Therefore, employees finds slow growth rate in the organization.
Opportunities
There is opportunity for Nike in improving its organizational culture by introducing programs
that creates social integration among the employee (Alvesson & Sveningsson, 2015). It will
subsequently assist in building better community with more engaged employees. Nike should
take steps for reducing the work burden on employees and allow them better growth
opportunities then their competitors such as appraisal schemes. Other benefits should be offered
such as savings from expenses related to work, vacations, health insurance, health savings
account and employer-sponsored retirement plans.
Threats
The biggest threat for the organizational culture of Nike is that the employees are switching to
other companies as they find less opportunity for growth in the organization (O'Neill, Beauvais
& Scholl, 2016). Nike should focus on providing growth opportunities to employees in order to
reduce the employee turnover otherwise it will result in heavy costs for the organization.
Assessment about the Culture of Nike
Analysis regarding the organizational culture of Nike provides that Nike aims to include a
variety of perspectives as the contribution of each person results in the success of team. Groups
are required to be formulated for characterizing the company into apparels, footwear, accessories
and equipment. There are five stages of the group development model provided by Tuckman
namely forming, storming, norming, performing and adjourning. Norming and performing stage
seems to be appropriate for Nike since Nike is taking steps for resolving the differences between

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the employees along with taking initiatives for increasing social integration between them
(Egolf, 2013). Performing stage is highlighted in the fact that Nike is able to achieve its team’s
goal with the help of the structures and processes set for this purpose. The different kind of
views of the employees belonging to different countries, cultures and background are effectively
managed in the organization by giving equal preference to everyone (Guillaume, Dawson,
Otaye‐Ebede, Woods & West, 2017). This is in turn allows effective decision making in Nike.
The offices of Nike are situated in almost every part of the world. In each country’s office,
employees are organized as a team for the completion of specified goals. Employees are given
full freedom to express their views and suggestions regarding various issues for their
improvement. As far as the type of team is concerned among problem-solving team, work group,
quality team and virtual team, Nike’s team comes under problem solving teams as such teams
are temporary and assist in providing solution to specific problems. The makeup of the team is
cross functional which helps Nike in analyzing the problem various perspectives (Uhlig, 2018).
Among the four types of culture identified by Deal and Kennedy namely the tough-guy/macho
culture, the work-hard/play-hard culture, the bet-your company culture and the process culture,
the culture of Nike is similar to tough-guy macho culture where employees face stress as a result
of high risk. Rapid feedback is provided to the employees with greater focus on their resent
performance. This leads to impossibility in their work-life balance and greater frustration.
Conclusion
Nike is the leading company for athletic shoes, apparel and sports equipment. the organizational
culture of Nike is does not have a severe impact on its working as employees understand that
Nike is a multinational company which needs to handle a variety of issues in its branches across
the world. The employees still want to work with Nike for gaining the experience of a
multinational company. Various steps have been taken by Nike for motivating its employees
including higher salaries, incentives and other benefits. The cultural equality in the workplace
further motivates the employees to give their best efforts for the achievement of the
organizational goals. The culture of Nike assists its employees in reaching their full potential.

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Recommendations
The employees should be offered growth opportunities for their personal development. This
should be in the form of improving the rewarding system. Increments, incentives for outstanding
performances, promotions, awards, etc. should be provided to employees from time to time. This
will assist in reducing the employee turnover of Nike and will significantly increase their
satisfaction at workplace.
The employees are expected to be available for company all the time. Nike should limit the
working hours of the employees by specifying the work required to done in such time. If the
employees work for extra hours, they should be offered good pay.
The employee engagement can be improved with the help of communication trainings or social
integration programs which will assist in team building by improving the communication skills
and tolerance level of employees.

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