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Paper Topic:

Organizational Design of Nike

Running head : Organizational Design of Nike

Organizational Design of Nike



Organizational Design of Nike

As most of us might already know , Nike is a very popular sportswear and equipment manufacturer , based in the United States . It currently holds the record as the world 's leading manufacturer and supplier of athletic shoes and other sports equipments and apparel

Once founded in 1964 as Blue Ribbon Sports , the company grew at an increasing rate and in 1978 , changed its name to the now more popular Nike . Averaging 2007 , least

to say , Nike 's well-structured and well planned organizational design has paid off , and showed just how much it 's worth

Organizational design refers to the well-versed process by which people , information , technology , and resources in a company are integrated . It is made in such a way that the chances that the company will achieve success will be maximized , taking in to consideration various factors such as geographic or geological location , matrix , type of product and departmentalization

Based on the various criteria set by an organizational design , the basic structures needed by a company can be derived . As for example , the Nike Company is a company which focuses on the manufacturing of sports shoes . Several infrastructures are needed in to ensure the success of this company . One of these would be the research office . This takes care of basic researches such as the types of shoe designs , colors materials , that would boom on the global market . Next to the research office should be a factory that focuses in minimizing the production cost . The factory must also be based on a location in which manual labor can be achieved at low-cost , and where products can be easily exported and materials can easily be imported . After this , there must be a marketing firm that would take care of the distribution of the product across the globe . Running in the background are the other parts of the company structure that takes care of the advertising , product promotions and endorsements , and other things that can keep the product popular to the target market

As for deciding on the type of functional structure for Nike , the functional structure can be a good option . Since the company is focused in being dominant in the manufacture of a single given product line which is athletic shoes and apparel , this type of structure can be used so that each sub-unit of the company will be extremely adept at performing its required task . This type of structure will be economically efficient , and I believe will be effective for the company The only possible downfall of this type of structure is that it lacks flexibility and there will be a difficulty in communication between functional areas , since each area is specialized in a specific task , and is most likely incapable of performing the task from other areas


Anald , N . and Daft , R .L . What is the right organizational design Retrieved March 2 , 2008 , from

http /ssrn .com /abstract 961013...

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