Nike and organization
structure and design
Tala Spiller, Amanda Barrow,
Virginia Lopez, Michael Sepulueda
Nike General information
Founded by Phil Knight, Bill Bowerman - January 25, 1964
CEO: Mark Parker
Owner: Phil Knight
Net worth US$28.1 billion
Subsidiaries: Converse, Hurley International, Umbro
Nike Assets and Stock Price
Nike’s Organizational Structure
The typically hierarchical arrangement of lines of authority, communications, rights and duties of an organization.
Organizational structure determines how the roles, power and responsibilities are assigned, controlled, and
coordinated, and how information flows between the different levels of management.
Nike Inc.’s organizational structure reflects the abilities and limits of the business in its operations. In Nike’s case,
the corporate structure highlights the need to address differences among regional markets. As such, the
company has developed its organizational structure to enable adjustments in dealing with market differences. As
one of the leading players in the athletic footwear, apparel and equipment industry, Nike Inc. serves as an
example of how regional variations must be included in business strategies.
Features of Nike’s Organizational Structure
Nike has a geographic divisional organizational structure. This structure is based on the company’s needs in its
global organization and regional markets. The following characteristics are notable in Nike’s organizational
structure:
1. Global corporate leadership
2. Semi-autonomous geographic divisions
3. Global divisions for Converse and brand licensing
Discussion
What factors drive Nike’s
decision to stick with some
form of network organizational
structure rather than own its
manufacturing operations?
Network structure uses IT to link with networks of outside suppliers and services contractors
● Lower costs due to fewer full time employees
● Better access to expertise through specialized alliance partners and contractors
● Easy to grow or shrink with market conditions
● Overall lower cost, more speed, and greater flexibility
● Closer to market, as more than 50 percent of revenues come from markets not in North America
They have their manufacturing outsourced to third parties because of the cost advantages of doing so.
Their organization structure of assigning tasks, reporting relationships, and communication linkages is
divided into two sections.
● top management and Nike’s marketing team
● manufacturing sector