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 fr...Read More

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

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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

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The technology that has been developed by the research and development team named Air
VaporMax fulfills the vision of the company of providing a product that makes one feel like they
are walking on nothing but Air.
The information that has been collected are form the annual report of the company as
well as form the sustainability report that Nike issues at the end of each financial year. The
information in these company documents is authentic as they are authorized by the higher
management of the company (Bartuševičienė & Šakalytė, 2013).

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CEO: Mark
Parker
Chairman of the
board:
Phillip .H.Knight
President of the
brand: Trevor
Edwards
Global human
resource: David
Ayre
Board of
directors
President of
product and
merchandising:
Jeanne Jackson
Global Sports
Marketing:
John Slusher
General
Counsel: Hilary
Krane
Chief Operating
Officer: Eric
Sprunk
CFO: Andy
Campion
Answer 7:
Nike follows a hierarchal matrix organisation structure and the level of complexities is
minimal in order to keep the process of communication simple within the organisation. The
organisation structure of Nike is as follows
Figure: Nike’s organization structure
Source: Author’s creation (About.nike.com, 2016)
This explains that the complexity of the structure is symmetric.
Answer 7a:
To manage the complexity in the organisation it is important to build a harmonious
culture which is inclusive of all the stakeholders of the company and is also make the process of
internal communication easy and simple to avoid internal conflict. Keeping innovation at the
center of the strategy.

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Answer 7b:
Effective communication requires training which the trade off of this is time and cost
investment. The inclusive strategy is also a time consuming aspect of the process as it makes a
decision too long to implement (Narasimhan & Carter, 1990).
Answer 7c:
The design that best describes Nike is matrix structure this is because; there are cross-
functional teams within the organisation to fulfill the function of the business. Again there is one
or more assigned specialists to a project and people may have more than one boss as the function
or operations manager and the project manager have similar power in the organisation
(Narasimhan & Carter, 1990).
Figure: Matrix structure of organization

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Source : (Narasimhan & Carter, 1990)
Module 3: Strategy & Strategic Alliances
Answer 8:
As a multinational company Nike operates in the global environment and in order to
maintain the competitive advantage in the intensely competitive industry of sportswear the
company uses the strategy of product development (Sigalas & Papadakis, 2018).
Figure: Ansoff matrix
Source: (Hussain et al., 2013)

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With the help of innovation and the vision of providing the customers with new and
improved products that can live up to their claims is the way the company strives in the intense
competition. With the help of the macro environmental factors like technology and societal
trends they develop ideas for the maintaining the edge over the direct competitions like Adidas
and Reebok. The company has selected this approach as the company has the provision of
resources and they are dedicated to provide the consumers with the best possible outcome as they
consider the athletes as the most important stakeholder.
Answer 9:
The strategy that is already prevalent in the company as a part of ensuring competitive
advantage is Platform strategy. Nike has a digital platform that allows other organisations to
operate in the platform the name of the platform is Nike+ Accelerator. This strategy of the
company is unlike any strategies of the competitors. Therefore making the company set a foot
ahead of the competition. The Nike+ community is set to connect the athletes with prospective
organisations in order to provide the user with more compelling and personalized offerings (Dyer
& Singh, 1998).
Answer 10:
Three potential alliances of Nike are as follows:
 Google
 Amazon Inc
 Tata Group
Answer 10 a:

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List of considerations before entering into a strategic alliance are:
Google
 Objective of the alliance
 The service of Google that will be required (GPS services in developing gears and sports
accessories)
 Impact of the alliance on the investors and stakeholders of the company
 Maximum positive outcome prospect form the alliance
 Selection of the alliance should fulfill some of the objective of the organisation
Amazon Inc
 Maintaining cloud data
 Likeness of the organisation in terms of its culture
 Determining the benefits of both the parties with the alliance
 As both the companies are American they will have similar macro environmental aspects
which will help both the companies to understand the others perspective better
 The credibility and the goodwill of the company in terms of the service
Tata Group
 The objective of improving the distribution in the Eastern-Asia region
 The popularity of the group of companies
 The reputation of the organisation
 The experience of the company with such alliances

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 The distribution capability and resource of the organisation as this is the major objective
of the alliance (Christoffersen, Plenborg & Robson, 2014).
Answer 10b:
Partnering with Google is a good proposition as the company not only has goodwill but
also has experience with such alliances. Both the companies have similar approaches of
management where they prioritize the customer and the innovation process in the business. As
the company shares similar views in their management approach the alliance will be helpful for
both the companies. Another important aspect of the alliance is the media attention and coverage
both the organisations are popular in the global front therefore such an alliance will garner
attention from the global media which will acts as a promotional tool for the product that can be
developed.
With Amazon it is more like buying a service than actually partnering or undertaking a joint
venture.
On the other hand, Tata group is a reputed organisation which has experience in distribution
which is the objective of the venture therefore it may be a good idea but once a company
associates with another organisation especially while distribution they lose their identity. Nike
has the potential to distribute on their own and the company should not get in to this alliance (Lin
& Darnall, 2015).

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Module 4: Sport Organizations and Change
Answer 11:
Dimaggio, P. J., & Powell, W. W. (1983), coined the concept of isomorphism where
globalization plays an important role. They explain the due to imitation or similarity in the micro
and macro environments that impact the business organisation develop similarities among each
other. As the ideas from many realist theories suggest that changes that are implemented by
organisation results in homogeneity therefore developing the concept of isomorphism. The
completion of Nike are organizations like Adidas, Reebok, Puma have similarities among each
other as the organisation operate in the same industry and the same kind of micro as well as
macro factors influencing the strategic management decisions of the company. All these
organisation have a niche market of sportswear which develops similarities despite of stark
differences. Adidas and Nike also share the same color palette when it comes to the logo; on the
other hand the tagline of both the organisation is also on the same line. Nike: Just do it; Adidas:
impossible is nothing. Adidas is a German multinational organisation that operates in the same
industry as Nike therefore the similarity in between the companies can be stated as normative as
the companies compete with each other in the global front but has developed similarities not be
mimic the other but to cater to the target market in the long run.
Answer 11a:
Change in any business organisation is constant companies initiate change in order to
keep up with the dynamics of the industry and cater to the requirement of the company. The
strategies that an organisation develops are directed towards change in either process or product.

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Any strategy in business is directed towards change in the short or the long run. Business
organisation run on the profit motive and growth and development is the underlying objective of
the company (Amis & Slack, 1996).
Answer 12:
In 2018, the Nike had announced a change in the strategic management decision in order
to initiate the growth and development of the organisation in an increasing trend. The change
was in the organisation structure and leadership. Amy Montagne is an experienced official in the
organization and has been appointed as the VP, Gm of Global Categories (News.nike.com,
2018).
In 2016 also the CEO had announced several changes in the leadership. Existing people
were provided different positions in order to initiate growth all around the world. The change in
the leadership allows the company to have a fresh perspective to problems and solve them.
Leaders in an organisation are responsible for guiding and supporting a group of people to
achieve the objectives and goals of the organisation (News.nike.com, 2016).
Answer 12a:
The paradox of the change in the situation of Nike is that the company during that time
was in the stage where the company was leaning from maturity towards decline. And a change in
leadership in such situation might prove to be one of the most risky decisions as the position that
is taken by so many people is new. So instead of improvement some wrong decision due to lack
of experience in the position may lead to risk. But the leadership change has proven to be a fresh
outlook for the company. The company has achieved achievements in the areas where the change
had been initiated (Teece, Pisano & Shuen, 1997).

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Answer 12b:
The company has always focused on the product development, innovation as the strategy
that has helped the company make a mark in the industry and also develop loyal customer base.
Nike has also strategically associated with only sports personalities in order to maintain their
stand for being a company that is dedicated to athletes which is absent from the direct
competitors Adidas. Adidas collaborates with music celebrities and people from the
entertainment and film industry as well. Therefore, the tactics that is used by the company is
brand promotion and product innovation in order to cater to the institutional pressure.

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Assessment 2: Part 1
Module 5: Power, politics and conflict in sport
13. Nike is a multinational organisation that focuses on the customers and the image of the brand
associated with sports, the company strives to motivate and encourage sports and athletes by
incorporating innovation in their process of their business operation. The global corporate leadership
of the company comprises of the board of directors, the board contains 13 members and is lead by
Mark Parker. He serves the company as the chairman of the board of directors and is also the CEO of
the organization (Investors.nike.com 2018). The primary responsibilities that he has are in the
department of product research, design and development as the company establishes that the growth
strategy of the company is innovation. He is also involved in marketing, and brand management. As
part of the executive committee and long time association with the company Parker as gathered
widespread knowledge and experience about the Company operations, sports marketing,
manufacturing, research, design, development, and management. The board of directors of any
organization is responsible for taking any corporate decisions made by the company
(Investors.nike.com 2018). In the board the members are segmented in various operational divisions
thus looking after each of the aspects. As a global organisation the company has sub autonomous
divisional committees which forms a major part of the organisation’s structure (About.nike.com
2018). The emphasis on team management and collaborative environment establishes the diffused
power control in the company. The matrix organization structure assures that the team members
report into two functional areas geography division and a global division. Therefore the
Organsiational power is divided in the two categories. Furthermore, the other divisions of the

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subsidiary companies are responsible for their own board members and their decisions
(Investors.nike.com 2018).
13a. The power of the board is legitimized by the fact that all the members of the board are highly
experienced individuals in their own specific areas. The experience and the understanding of the
members regarding the company as well as the industry in which the company operates offer the
people the right position. As a listed company, Nike has to follow the rules and regulations and the
legal boundaries as well as amenities that are associated with the board of directors (About.nike.com
2018). The role and responsibilities of the board are listed in the charter and is available for public
review in the official website. The board of directors in an organisation has a strict set of guidelines
which are mentioned in the companies Act and the members are bound by the legal aspect of the
country of operation. As Nike is a legally bound taxpaying organisation, the legitimate position of the
power of the board of directors is also justified (About.nike.com 2018).
14. The role of a consultant is to advice the board according to the rational reasoning as well as the
information which is back up with proper research and analysis of information. The board can ask for
the service of a consultant when and if they are in need of an external person to advice upon a
decision. The report that is submitted by the consultant has to have concrete conclusion based on the
analysis of the research that is performed by the consultant thus, influencing the choice and the
decisions made by the board members (Mol & Birkinshaw, 2014). The role of a consultant is much
like an educator who provides information which guides the people in power to take certain decisions
in the organisation. On the other hand the role of a consultant also acts like a catalyst for change as
the decisions that are made by the people in power may also influence change in the company. The
leadership of the process remains within the organization by as a consultant the primary idea is to
provide expertise in the process of decision making. There are four segments by which the role of a
consultant can be divided, which may influence the power and politics within the organisation:

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Support and guidance: the board of directors and the inclusive committee of the company work
with the consultant in order to plan and execute a decision or policy made for the development of
the business process (Smith & Stewart, 2010).
Research: one of the major responsibilities of a consultant is to undertake research and provide
the board members with information regarding the industry and the dynamics of the external as
well as internal business environment. Without proper research and evidence of the information
board does not take any decisions therefore this is one of the early stages of the role of a
consultant. Collection of data is the key to this responsibility and based on the topic of research
a consultant designs and undertakes tools and methods to conduct the assignment.
Monitoring: implementation of the policies and decisions in the right time and with the right
group of people can be useful to the board.
Evaluation: the decision and the policies have to be evaluated in order to understand their
viability and impact on the organization.
The above functions state the ways in which the role of a consultant may influence the power
and politics of the company. The end decision is always made by the board in Nike, but as a
consultant it is the job to provide rational outlook to the factors that will impact the decision
(Smith & Stewart 2010).
15. Organizational politics can be defined as the range of activities which are
connected with the use of manipulation and influence strategy to develop
personal or organizational interests. The structure, cognition and the power
play in the organisation forms the political landscape (Saleem, 2015). The
matrix structure of the company diffuses the power and does not centralize

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the impact. This makes the political play in the organisation weak, as the
influence and the manipulation which is the characteristic format of politics
cannot work efficiently as one person cannot take a decision solely. The
company leverages the political network by using it to lead in to invention
and research development (About.nike.com, 2018).
16. a. When the company initially understood the opportunities and the
scope of business that e-commerce had, decision was made to bring changes
in the business model and incorporate e-commerce in the process. This
incident manifested in several channel conflict within the organisation
(Gsb.stanford.edu, 2018).
b. The source o conflict was among the transition from the traditional
business model to the new technology driven business model. The team was
lead by a few people and rapid decisions were taken in the process making
most of the decision remain closely knit within the team. This is in contrast
to the collaborative culture which is prevalent in the company
(Gsb.stanford.edu, 2018).
c. The collaborative approach of the company was used as a strategy to
strive and make the endeavor a success (Gsb.stanford.edu, 2018). The initial
success of the e-commerce model helped the people to realize the
opportunities the approach have. The sales, manufacturing as well as the
marketing department worked collaboratively in order to streamline the
process (Gsb.stanford.edu, 2018).

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Module 6: Organizational Culture and Decision Making: The leadership
imperative
17. Decision making is the process by which the rational justification is used to come to a conclusion
of a problem and recommended solutions are provided in order to overcome the issue. The conditions
under which decisions are made are when: it is back by rational explanation, caters to the need and
requirement of the customers or any other stakeholder associated with the company. Strategic
management of a company includes corporate and business level strategic decision making which
helps the company stay true to the mission and vision of Nike. These corporate level decisions are
taken by the board of directors thus the power of control is diffused among a number of people
(Alstyne, Parker & Choudary, 2016).
a. The decision of any innovation or product development is taken with the help of rational decision
making model as it starts by defining the problem and ends with the best alternative in the process.
On the other hand, the decision of initiating the e-commerce as a part of the business model is based
on bounded rational decision making (Alstyne, Parker & Choudary, 2016).
18. Organisation culture is the aspect which defines the company as it is the values and the principles
of the company and the individuals associated with the company (Huhtala, Feldt, Hyvönen & Mauno,
2013). Culture manifests in Nike based on the decisions and policies made by the management, for
example: the collaborative culture in Nike is based on the value of the company and its leaders to
have an inclusive approach in the decision making process. The matrix structure of the company also
helps in the manifestation of the culture (Al-Bahussin & El-Garaihy, 2013).
19. It is also important to strategies in order to keep up the culture of the organization and manifest in
the process. Yes, strategies are associated with culture as based on the values and the principles of

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the decisions and strategies are formulated. The values and principles form the base of the decisions
that are taken by the company.
20. Culture is managed by the people in power, the policies and the decisions that these people take
ensure that the culture is upheld. The way the company behaves with the stakeholders also help in
maintaining the culture of the organisation and in the process makes values and principles important
in the business function. Culture can expand depending upon the changing dynamics of the company
but it cannot change. If the culture of the company changes it will develop a different personality and
image which makes it difficult for the customers or other stakeholders to connect (Al-Bahussin & El-
Garaihy, 2013).
21. One important behavioral approach to leadership is far-sightedness, it offers the leader to be
prepared of the dynamics of the industry and help the organisation adapt to the changes without
facing any hassle. Mark Parker is a far-sighted leader who encourages changes and improvement in
the product line as he understands the changing needs and requirements of the customers
(About.nike.com, 2018).
a. This approach of leadership facilitates the innovative culture and the approach of change in the
organisation. As the mission of the company is to bring inspiration and invention to every athlete in
the world, the far-sighted approach helps in providing the best products for the customers
(About.nike.com, 2018).

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Part 2: Recommendations, Rationale and Implications
Educate the customers: the goal of the company is to provide athletes with the best possible
products in order to aid them with their sport. The idea is to promote sports and help athletes to be
successful in their career. The company has a number of people in the research and development
sector which is also headed by the CEO of Nike. Nike develops equipments, gears and sportswear
garments in innovative design which suit the need and requirement of the customer. In the process of
promotion the company should have proper educational content as to how the innovation is going to
provide the customers with better utility than any other product of the same line form the
competitors. There are some aspects of the innovation which the people do not understand the value
of; this is the gap that has to be bridged in the communication with the people. The end customers do
not understand the technical aspect of designing and innovations hence the explanation should be in
terms of what is incorporated and how it is going to help suit the need and requirement of the
customers must be stated (Rai, 2013).
For example: Nike Flyknit technology, the idea of the technology is to provide the athlete
with a firm grip in order to have controlled movements when necessary, the technology helps in
wrapping the foot completely so that it is more secure for the movement (News.nike.com, 2018). The
technology uses a more complex knitting constitution to create a closed anatomical form that mimics
the shape of the foot. The benefits of the products are as follows`; it locks in the feet and provides
secured controlled movement, it also provides the athlete agility and swiftness by allowing the shoe
to move with the person wearing it as it reduces the space between the foot and the ground. Apart
from that sustainability is also another important aspect of the design as the construction of the
design provides 60 percent less wastage. These aspects of the products are not highlighted in the
promotional feature of the product. The detail of the technology will help the target market to

29SPORT ORGANIZATION THEORY
understand the benefits and will help them decide to buy footwear from this range or form any other
range. Moreover, for instance if an athlete is specifically looking for a shoe that would provided
controlled movement then they will not understand the utility of the product until it is communicated
properly. The campaign was endorsed by Kobe Bryant, Ashton Eaton, Richard Sherman, Allyson
Felix, and Mo Farah (Youtube.com, 2018). But in the advertisement the product is featured in the
way the athletes use it but there is no information provided regarding the utility or the ergonomic
nature of the innovation of the technology (News.nike.com, 2018). The product features the agility
and the swiftness of the athletes but it does not state the innovative aspects of the products which are
providing this features (Youtube.com, 2018). Thus while making the decision of choosing footwear
the target market will be unaware of the new technology and the purpose of the design for the
product and thus may end up choosing another product that promotes speed and agility as well
(News.nike.com, 2018).
By implementing this recommendation the company can engage and gather interest of the
customers even more, there are several advantages of effective communication which will be
incorporated in the content of the promotional process as well. The customers will know what they
need and what exactly they are looking for and in turn improve the sales figure as well. The AIDA
model of communication focuses on the improvement of interest as well as development of desire
among the people thus giving rise to better communication (Rai, 2013).
Reduction of time in the process of decision making: the inclusive and the collaborative culture of
the company make the process of decision making lengthy as a number of people are involved in the
process. Sometimes in business there are situations where there is hardly any time to waste and in
that case a lot of people cannot be involved in the decision, at this time due to the culture of the
company there may be conflict situation in the internal business environment. Nike must take

30SPORT ORGANIZATION THEORY
strategic management decisions in order to fast track their collaborative approach and reduce the time
taken for decision.
The effectiveness and the impact of the decision can be only understood after it is
implementation is in time and the right people are impacted by the decision. If the time taken
increases in the process it makes the impact of the decision low (Oshima Lee & Emanuel 2013).
Therefore it is required to streamline the process of decision making. During the launch of the e-
commerce model the rapid decision making of the business process could take place as there was not
a lot of people who were involved in the process of decision making as there was less time. The
venture did not only prove successful it is now one of the major source of revenue of the company.
Decision making process of a company should be rapid and the culture should encourage the
business process not become a hindrance.
The outcome of the recommendation is to understand the importance of the situation and deal
with situations in the business process that leads to rapid decision making process. This will also
reduce the workload form a number of employees and will help in expediting the process of
implementation in order to improve a situation.
Making an inclusive and diverse culture: The company has been the market leader and has over
the years of operation achieved goodwill and has earned good reputation. Nike with the help of its
values and principles has established a matrix Organsiational culture that encourages innovation and
collaboration in the business function. But diversity is something that has been under the radar;
therefore the management of Nike should have an inclusive business environment and must
encourage diversity in the company. It had been reported that many women who work in the
company does not like the work environment and has termed it to be “toxic” (Creswell, Draper &
Abrams, 2018). There have been incidents which has led the women in the organisation to be left

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with utmost disgust. It was also reported that the women in the company feel that they had no scope
of improvement in a male dominated work environment, not only that in any formal set up women
would be marginalized and their perspective were not given importance. There were also reports of
sexual harassment and gender discrimination in the organisation (Creswell, Draper & Abrams, 2018).
Recently the CEO of Nike has announced that two of the executive posts are being offered to
two senior women officers of the company. Equality and diversity in the organisation provides the
company with an encouraged group of employees whose interest will be aligned with the objective of
the company. The process develops high morale among the employees as his skills and talent that are
acquired by ensuring diversity is high as the recommendation and hiring process is simply based on
the talent and skill of the employee (Murphy, 2018). Nike must work with the human resource
department of the company to make sure that the women as well as people form minority culture do
not feel that their honor is being any hurt or anyone in the organisation is being disrespectful. Any
complaints in the category have to be dealt with the severity and prompt actions are needed to be
taken in the context.
The outcomes of the recommendation are: by providing an inclusive organisation culture
improves the performance of the employees and helps them to be more encouraging and efficient.
The diversity among the workforce increases the motivation of the employees and improves the
performance of the company in the long run (Cottrill, Denise Lopez & Hoffman, 2014). There are
several advantages of diversity and inclusive culture of organisation like wider perspective, better
understanding of the situation, it also helps in the creation of innovation which is the underline of the
competitive advantage of the company, it is also a encourages creativity. It improves the work
environment and makes a positive milieu in which the people can thrive to achieve the objectives of
the business.

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Conclusion
It can be concluded from the above discussion that a sports organization is a social entity
that has the ability that operates in a structured fashion in the sports industry, therefore it has
been concluded that Nike is a sports organisation that operates in the sports industry and strives
towards achieving a common goal of the organization. The company is focused on producing
and manufacturing sportswear and sports gears which are of contemporary design and is also
ergonomically structured. The company is a multinational organisation that has a very effective
supply and distribution channel that effectively reaches out to the target market. There are retail
exclusive outlets all over the world which sell the products, and in 1999 the company
commenced on their e-commerce journey which was deemed to be an opportunity for the
business. Nike Inc is an organisation that is known for their passion driven strategies to promote
the athlete. The company believes that anyone with a body can be an athlete. The mission of the
company is to: bring inspiration and innovation in every athlete in the world. The mission of
the company drives the strategies and the decisions made by the company. The strategies are to
create benchmarking innovations in the process of business development, to focuses on a
sustainable future, to work with a creative and global team and by making a positive impact in
communities where we live and work. The company designs for the future of sports the
company believes in achieving with taking risks as the goal is to promote the human potential.
The company believes in disruptive innovation as the path the is fitting for the changes that the
management wants to bring about in the industry.

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The purpose of the company is to provide the customers and the target market with improve
products and opportunities in the long run. The company uses innovation as a major aspect of
their business model and ensures that the process of the business is focused around product
development. The CEO of the company heads the product development and design team. With
the analysis it can be gathered that the objective of the company is to develop products to suite
the requirement of the target market, to ensure improved CRM, to strive towards a sustainable
future. The organization is focused upon providing the target market or athletes with high quality
products so as to improve their performance. Thus with the help of the innovative design and
promotion the company has established itself as a market leader in the industry of sportswear.
The footwear range of the company is the product line which is the most popular and is also
mostly in demand. The company invests in research and development in order to understand the
requirement of the customers. The company has a matrix organisation structure that helps them
to co-ordinate with the global market. As a multinational company the organisation has to keep
up with the dynamic of the industry and therefore decisions in the process are made in order to
cater to the global public. The structure of the organization supports the objective of the business
providing flexibility to the people to work in an encouraging environment. With the help of
Ansoff matrix the competitive advantage of the company has been drawn which is observed to
be product development, it can be seen that the Organsiational goals and mission are aligned
with the competitive advantage decision made by the company. Some of the major competitors
in the global market of Nike are Adidas and Reebok; all the companies have a similar approach
towards the customers and the brand image. But the fact that Nike is ahead of all the
organizations as a market leader is owing to a number of features of the company. First of all far

34SPORT ORGANIZATION THEORY
sighted leadership, over the years the company has developed adaptation methods along with the
changing dynamics of the internal as well as the external business environment.
Organsiational culture is also studied in the assignment; it has been observed that the matrix
structure of company is headed by a group of board of directors. The values and principles of
that manifests the culture in the company defines the role and responsibility of the people in
power. The individual power is in the hands of the board of directors on the other hand the
Organsiational power is divided among the regional heads as well as the board of directors. As a
legally incorporated organization that is listed in the stock market, the company has to ensure
that the power and the control of the board are as per the legal boundaries of United States of
America. This is the aspect that legitimizes the power of the board, all the people who are in the
board are experienced in their field and also has knowledge regarding the industry and the
company in depth.

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