Strategic Management Analysis of Nike Inc. Sport Organization

This report provides a comprehensive analysis of Nike Inc. as a sport organization, assuming the role of an external consultant. It delves into the application of organizational theory, strategic management, and business functions within a sports context. The study utilizes secondary research, drawing from Nike's official website, journal articles, and public reports to evaluate the company's operations, organizational structure (including its matrix structure), and key strategic decisions. Topics include competitive advantage, business models, micro and macro environment analysis, mission and vision statements, stakeholder roles, product development, and organizational culture. The report also identifies areas for improvement, such as gender diversity and decision-making efficiency, and provides recommendations for promotional content. The analysis highlights the blend of business and non-profit aspects within a sports organization, offering insights into Nike's journey and its brand image.

Running head: SPORT ORGANIZATION THEORY
Sport Organization Theory
Name of the Student
Name of the University
Author’s note

1SPORT ORGANIZATION THEORY
Executive summary
The purpose of the assignment is to develop an understanding of the theories of
management and business function from the perspective of a sports organisation. From the
perspective of a sports company it has been argued that the operation of a sports company has
blurred the lines in between a contemporary business organization and a nonprofit organization.
The company that is selected to conduct the study is Nike Inc. This is a sports organization the
company operates in the sports industry and manufactures the best gears and sportswear
garments. The company associates with the spirit of winning and integrity of sports as one of the
brand archetypes and has established itself as a company that caters to sports enthusiasts. There
are a range of shoes, clothing and gears that are manufactured by the company based on sports.
In the assignment the role of an external consultant is assumed. The research procedure that is
implemented to get information is based on sources like the official website of the company,
related journal articles, official reports of the company issued for the public etc. The secondary
research on the questions that are provided in each module will provide a holistic view of the
process that is incorporated in the day to day business of Nike Inc. As a multinational
organization the company has a unique Organsiational structure which is been discussed in the
assignment, along with that some other essential strategic management decisions like:
competitive advantage, business model, organization structure, business micro and macro
environment analysis etc has been discussed with the help of strategic management tools. The
basic strategic management decisions like the mission and vision statement has also been
discussed in the assignment in order to understand the company and its proceedings better. The
objectives and goals of a company define the organizational culture as it provides an image of
the company among the stakeholders; the stakeholders are also discussed in the assignment and

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the role that they play in the business. Nike Inc is an organization that has a history of ups and
downs and over the years the company has been successfully able to establish the brand image of
being passionate and dedicated to sports and athletes. The process of product development has
been discussed which is one of the most essential part of the business model of the company. In
the research it has been found that the company has a matrix organizational structure that
facilitates the multinational function. Furthermore, it also has been observed that the company
has a collaborative culture in the company which is proven to be good and bad for the
organisation form time to time. One of the major attribute that has been observed is faulty in the
organisation is the fact that the company has a lack in diversity when it comes to gender biases.
Therefore this is one of the recommendations stated in the assignment along with reduction of
the time of decision making and the type of content in promotions that should be used is also
highlighted.

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Contents
Executive summary.........................................................................................................................1
Introduction......................................................................................................................................4
Assignment 1...................................................................................................................................4
Module 1 - Organizational Theory and Research............................................................................4
Module 2 - Goals, Effectiveness and Structure...............................................................................8
Module 3: Strategy & Strategic Alliances.....................................................................................16
Module 4: Sport Organizations and Change..................................................................................20
Assessment 2: Part 1......................................................................................................................24
Module 5: Power, politics and conflict in sport.............................................................................24
Module 6: Organizational Culture and Decision Making: The leadership imperative.................27
Part 2: Recommendations, Rationale and Implications................................................................30
Conclusion.....................................................................................................................................35
Reference list.................................................................................................................................38

4SPORT ORGANIZATION THEORY
Introduction
An organization is a group of people who have agreed to work together in order to
achieve a collective goal. The purpose or the objectives of the organisation form the basis of the
institution. The purpose of the assignment is to understand the difference in between a business
organisation and a sports organisation. A management framework in any organisation applies
irrespective of the objectives. Strategic management is essential in the organisation to deal with
the changes in the industry of operation as well as improve the process o business in the long
run. Achieving the goals and objectives is also one of the major reasons for employing strategic
management decisions and policies. In order to conduct the study the company that has been
chosen is Nike Inc.
Assignment 1
Module 1 - Organizational Theory and Research
Answer 1:
A sports organisation can be defined as an institution that is operates in the sports
industry in order to achieve specific objectives (Covell, Walker, Siciliano & Hess, 2007).
Depending on the nature of the company the regulatory operations of the business vary from one
another (Shilbury & Moore, 2006). It is a social entity which is involved in the sports industry
which is goal directed with a consciously structured activity system and a relatively identifiable
boundary (Slack & Parent, 2006). Like any other business organisation strategic management is
essential for the successful achievement of the objectives of the business. The organisation that

5SPORT ORGANIZATION THEORY
has been selected to conduct the study is Nike Inc. Nike Inc, is an American multinational
organisation that can be deemed to be a sports organization based on the following elements that
has been achieved from the definitions above. The company is a social entity as it is a legally
established institution that operates in several functional areas around the world. The company
operates in the sports industry, the organisation is the leader in manufacturing sportswear and
designing sportswear. Goal oriented is another feature of that explains why Nike Inc is a sports
organization; the company has strategic goals and objectives. Consciously structured system of
Nike has a matrix organizational structure (Brenner, Schlegelmilch & Ambos, 2013).
Answer 2:
According to Smith & Stewart (2010), there are two traditional perspectives of a sports
organisation and these perspectives are very contrasting with one another. One of these
perspectives showcase that if traditional business practices are performed in a sports organisation
it leads to the downfall and the integrity of the spirit of sports. Traditional business method
practices will not lead to a successful sports organisation that rather sports management has its
ways of using the traditional methods and practices. In case there is poor management decisions
taken by the company based on traditional business management decisions then there is a
possibility of losing out on the rich heritage, history, culture, societal relevance that a sport
stands for. On the other hand, the other perspective showcases the industry to be like any other
business organization that is operating in the entertainment industry and every other traditional
and contemporary business methods and practices impact the sports organisation as it will impact
any other business organisation. The business organisation are impacted by the internal and
external environmental factors, hence a sports organisation will also be impacted equality by the
dynamics of the micro and macro environmental factors of the business environment. The above

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perspectives of a sports organisation provide a unique approach towards the industry. Over the
years the industry has developed a position where it is not extreme cases. Sports management has
acquired place in academics as well establishing the commercialization of the industry even
further. But there is still uniqueness in the industry as it contains the best of both the situations
that has been discussed above.
Emotions like passion and loyalty among the players and the fans is one of the greatest
features of the industry. It is one of the products that are capable of making collective memories
and engaging experiences of lifetime. But with time the characteristics of the most devoted fans
have also evolved and they have started enjoying the value added aspect of the industry like
aesthetic appeal, sports related products and merchandise, entertainment plays a significant role
etc. This is where the uniqueness of the industry impacts an organisation like Nike Inc who is
associated with the value added aspect of sports products and merchandise. The company has
rights to produce products with logos and mottos of several sports organisation or teams making
the process of watching a game even more entertaining for the spectators (Doherty, 2013).
Answer 3:
Organisational theory is the approach in management that deals with the systematic
working of a company and the strategic decisions that are made by the organisation.
Organizational theory seeks to elucidate the constitution and method that is prevalent in
organizations. It also assists to evaluate their impact on accomplishing the purpose or meeting
the need. With the help of the organisational theories the management of a company can device
policies and make arrangements to achieve the objectives of the business. Thus the theories

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based on which Nike runs the functions and business operations are the organisational theory.
For example: having a mission and vision statement, having an organisational structure etc.
On the other hand, organisational behavior explains the process by which the people associated
with an organization behave and the effects of their actions on achieving the objectives (Porter,
1996). It establishes or represents the human interaction in a company, thereby helping the
company to establish a culture that will help the people to be more efficient and productive. The
corporate culture, the work environment, the enthusiasm for sports and the excitement for
innovation are the underlying attitude of the company that explains the Organsiational behavior
(Coccia, 2014).
Answer 4:
Being critical is only possible for an individual when he or she is fully aware of the dynamics of
the situation. Knowledge regarding the circumstance will help the individual develop a correct
(positive or negative) perspective or argument which can be back up by logic and references.
Therefore it is important to gather relevant and logical information regarding the subject in order
to be critically analytical.
Critically thinking or critically analyzing a situation is the process which has to undertaken with
the help of a series of actions. In order to critically analyze the first step is to understand and
break every variable of the situation. Define the variable and associate it with the situation or the
subject. Then it is essential to understand the previous work that authors have published
regarding the situation, this can be in a textual from, audiovisual from or any other way of
communication. Collecting the information that is already available helps the get a good insight
of the topic, it also provides the person to be aware of the all the dynamics that can be associated

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with the situation. After getting all the relevant information a person has the ability to evaluate
the situation critically. Another major aspect of being critical is having an argumentative
approach and looks at the perspective from both positive as well as negative side. In order to take
even a step further a person can choose to undertake primary research and find out new
information regarding the problem based on the information that is received from the secondary
analysis. This is will help the person to have a personal opinion based on the information and the
analysis of the data. In academic there is a certain methodology that has to be followed by the
researcher in order to be analytical and research regarding a problem.
Interdisciplinary approaches will help a person evaluating a problem critically understand
various perspectives which will back up the arguments and the statements better. For example
while evaluating the strategic management approach of a company, organisational theory will
give a perspective and organisational behavioral theory will give another perspective, these can
be linked in order to arrive at a decision which is critical and is holistic therefore making the
point the individual is try to make more relevant and true.
Module 2 - Goals, Effectiveness and Structure
Answer 5:
Nike is a popular multinational company and the company uses strategic management
decisions based on the various attribute that impact the business directly or indirectly. The
management focuses on the needs and requirements of the customers or target market and uses
innovation and creativity to meet the caters to the same. The goal of Nike is to serve the

9SPORT ORGANIZATION THEORY
athlete. A more simplified version of the statement is that it strives to cater to the needs and
requirements of the target market with a vision of a sustainable future (Porter, 1996).
There are goals set for the various departments of the company based on their function to
reach the goal of the company.
Product development: to produce innovative products to meet the needs of the athletes keeping
up with the changes in the micro and macro environmental factors.
Customer relation: to reach out to the customers’ better and easier way and to streamline the
process of distribution of the products.
Brand management team: to reach out to the target market and tell the right story at the right time
(Porter, 1996).
Answer 5 a:
Having a goal is important for an individual, business organisation or any other
institution. A goal helps an organisation to stay focused an also have a clear path in order to
achieve the goal. A goal helps the company to develop small objectives that support in achieving
the all over goal of the organisation. A company has one goal and this goal is based on the
values, principles and philosophy that drive the underlying framework of the company. The goal
of the company defines the culture and the stakeholders of the organisation to remain confident
about the company. The goal of the company also defines the aspirations and helps the
management figure out ways and means to achieve the goal. For Nike, which is a manufacturing
company the products and the customers are the prime focuses, they want to serve the customers

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the best quality product with the price that they associate with the same. The goal helps the
company innovate both the process as well as product in order to severe the customer better.
Answer 6:
Nike is a successful company generating hefty revenues every financial year, but if the
resources of the company are scarce then that would not mean that the company will deviate
from the goal that has been set. When the resources are limited the company requires prioritizing
where the resources have to be allocated in order to stay true to the original goal of the company.
Answer 6a:
Effectiveness is the way in which the strategic decisions of the company impact the
growth and development of the company and in the long run help the company to achieve the
goals. The effectiveness of the company establishes with the success of the organisation, the
decisions that the company has made have mostly been successfully implemented. In 2017, the
revenue of the company has grown 6 percent indicating the effectiveness of the decisions made
by the management. Not only that the revenue of the shareholders have also increased 16
percent. One of the strategic management decisions of the company to focus on innovation in the
process of product development. Another is to have a sustainable approach towards growth and
development of the company.
On the other hand, efficiency is the performance of the company is the efficiency, the
performance of the resources is collectively the efficiency of the organisation. All the internal
environmental factors that impact the business are the ones responsible for the efficiency of the
company. The management of Nike, the employees of various departments, the manufacturing
units etc have to optimize their performance in order say that the company is efficient.

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The two concepts are not independent in case of management; a decision that is made by
the company will be effective when the resources work efficiently to achieve the objective of the
decision.
Answer 6b:
Measures of effectiveness:
The decision of the company to reduce waste is a part of Nike’s sustainability project and with
the implementation of the Flyknit technology the company has been able to reduced nearly 3.5
million pounds of waste.
The company’s decision of focusing on the product innovation and maintaining valuable relation
with the customers has led the company to achieve 6 percent growth in the financial year 2017.
Channelizing significant resource to adaptive performance, has been also effective as the
company has come up with the new product HyperAdapt 1.0 in 2016, which is a revolutionary
item as the product is suppose to synchronies with the body as it moves (Bartuševičienė &
Šakalytė, 2013).
Measures of efficiency:
The brand team has successfully established the company to be a passionate sport oriented
company that understands the requirements of a sports person.
The VaporFly 4% features a proprietary carbon fiber plate