Nike functional areas, organisation structures and departments
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Unit 1 - Exploring Business
Institution
PEARSON (PEARSON)
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Pearson BTEC Level 3 Unit 1
Exploring Business
Nike functional areas
Nike’s aims and objective is to become one of the largest manufacturers of
athletic
apparel and sporting equipment in the world and the industry, therefore it has
numerous, distinct missions and aims. As with all publicly traded companies,
Nike’s first objective is to
make a profit for the shareholders. In order to meet this objective, Nike identifies
a
number of smaller aims and objectives. These include manufacturing superior
products, maintaining the integrity of the global brand and innovating in the area
of
product design. The company also balances these profit-driven goals with a
number
of social and sustainable aims, including cutting water use, reducing waste and
strengthening communities1. And to make a profit and create awareness.
Nike Inc.’s organisational structure reflects the abilities and limits of the business
in its operations. A company’s organisational or corporate structure is the
composition and system design applied on the interconnections among
employees, groups, and divisions of the business. In Nike’s case, the corporate
structure highlights the need to address differences among regional markets.
These differences are linked to region-specific demands of target customers, such
as variations in the preferences for apparel based on sports popularity and
climate. As such, Nike Inc. has developed its organisational structure to enable
adjustments in dealing with market differences. As one of the leading players in
the athletic footwear, apparel and equipment industry, the company and its
1
https://www.reference.com/business-finance/Nike-s-aims-objectives-32bf2a20ac03c580
, corporate structure serve as an example of how regional variations must be
included in business strategies. Structural and strategic alignment that considers
these variations reinforces Nike’s competitive advantages, especially in penetrating
regional markets.2
Nike has three organisation structures.
A matrix structure is made up of different types of organisational structures. In
a matrix structure, the authority passes vertically as well as horizontally. Nike
follows geographical divisional structure to facilitate customers in different areas.
The product design is done specifically, for their needs. There is no manufacturing
of standard products for the entire world’s population. Advantage3 The matrix
structure is to retain an organisation’s functional structure, they allow for the
rapid creation of efficient large-scale, project structure that employ many
members of the organization's functional structure but without disrupting or
destroying the structure in the process. However, the disadvantage4 The matrix
structure is the increased complexity in the chain of command when employees
are assigned to both functional and project managers. It can also create a gridlock
in decision making if a manager on one end of the matrix disagrees with another
manager. The matrix structure helps Nike to sort out different levels of jobs.
Nike pays their employees depending on what level of jobs they do; they would
give employees the right wages and bonus for their productivity. To earn a bonus
Nike’s employees would work even harder which would benefit Nike, as it would
help them meet their aims and objectives.
Nike follows a divisional structure on the product basis. This is to make sure
that the development and innovation keep happening in all products that Nike
manufactures. Moreover, there are functional departments under the Global
corporate leadership, and there is also a team structure in the organisation. The
global corporate leadership at Nike which involves corporate leaders make sure
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