Analysis of Nike, Inc Company Culture
One of the critical aspects of Nike’s corporate culture is the desire for progress, innovation, coupled with creative, unique, and inimitable elements. The company’s leading approaches are unforgettable impressions and ideas, diversity, inspiration, breaking barriers, going beyond, overcoming differences, and bringing several people together (About Nike: News & updates, 2022). Moreover, Jin and Cedrola (2018) state that through a commitment to the creation, invention, and development, Nike has managed and still maintains a leading position in the market of sports shoes, clothing, and accessories. Due to the craving for perfection, exceptionalism, and innovation, Nike manages to create a strong culture.
Possible Company’s Achievements
Nike may achieve unity of command, centralization vs. decentralization, the span of control, and formalization in the following way. Firstly, in achieving unity of command, the firm should organize the structure, where each employee reports only to one manager, who also would be responsible to their superiors for employees (Bhasin, 2019). The decisive aspects, in this case, will be the clear presence of authority, their rights, and obligations, as well as the competent distribution of power and diligence. Secondly, in order to achieve centralization as opposed to the existing management model, it is necessary to give the initiative and decision-making authority to a certain person or group at the organization’s top.
Thirdly, each organization’s optimal norm of manageability is purely individual. Excessive increase or excessive narrowing of the number of subordinates can lead to irreparable consequences (Bhasin, 2021). For Nike, in achieving the span of control, the firm should calculate the optimal rate of controllability using two approaches, such as the experimental statistical approach and computational and analytical methods. Fourthly, formalization is achieved when managers record organizational procedures, norms, rules, standards in writing form. Hence, Nike should properly establish communication lines and transmission structures between employees, colleagues, superiors, and subordinates.
The Most Appropriate Organizational Structure and the Strategy Factors
The most appropriate organizational structure for Nike is a matrix structure. It is a special type of management based on the double subordination of performers. Each enterprise employee reports directly to a department’s leader and a project manager in this case. In general, using a matrix structure of enterprise management is advisable from the point of view of frequent changes in Nike’s assortment or technology. Moreover, this system is also relevant when the work on the task is carried out for a limited time, and the project is unique. According to Daim & Meissner (2020), operating this structure’s type allows Nike to make quick, informed decisions and respond appropriately to them. Due to its flexibility, the matrix management structure enables Nike to carry out dynamic restructuring when setting new tasks and contribute to greater coordination.
When choosing the matrix structure, one should consider the following strategic factors. For example, it is possible to identify aspects directly affecting the management system and those actions that manifest indirectly. Nonetheless, the components of the management mechanism itself – market requirements, goals, principles, and methods act as elements directly affecting the structure. Other factors affecting the structure are the management functions, composition, content, and volume.
Traditional Leadership Theory to Lead and Motivation Theory to Motivate
It is necessary to consider the traditional concept as the Trait Theory of Leadership. According to Cherry (2021), Trait Theory focuses on a manager’s characteristics, which affect the management and control level. Graduate Studies and Granite State College (n.d.) claim that the problem of identifying leadership qualities is central in managing, and there is a specific connection between management efficiency and personal qualities. As a rule, authentic leaders can solve some difficulties and problems. According to researchers, leaders share a common set of key characteristics that support their ability to mobilize others to achieve (Graduate Studies & Granite State College, n.d.). Thus, for Nike to continue to lead, it is necessary to specify chiefs with specific “leadership qualities.” Although, the set of these qualities may vary based on individual human experience or genetic factors. However, relying on historical facts and research, the past leaders still had several accurate and stable qualities.
One of the motivational theories that one should discuss concerning Nike is the Porter-Lawler (Expectancy) Theory. According to Popkova & Sergi (2020), such theory includes the five main variables – efforts expended by a person, received results, perception, remuneration, and degree of satisfaction. In fact, the Porter-Lawler concept is based on the close relationship between outcomes and rewards. Therefore, in this way, a person can satisfy needs through the “compensation” received for specific results reached. Achieving the required result level can lead to particular internal or external bonuses. The most important conclusion from this idea is that only productive work leads to satisfaction (Porter and Lawler theory of motivation, 2019). Undoubtedly, the Porter-Lawler Theory makes a significant contribution to understanding motivation in a general sense. The approach has shown that “inspiration” is not just an element of a chain of cause-and-effect connections but also an indicator of the significance of combining interdependent concepts into a single system of motivation theory.
Based on the theory, Nike employees can be motivated to succeed in the following way. For example, leaders need to set precisely those goals and objectives and offer remuneration based on personnels’ motives and aspirations (Indeed Editorial Team, 2021). Moreover, the plans should be complex but doable, ideally when tasks correspond to the skill set of a person and a team (Indeed Editorial Team, 2021). It is also necessary to emphasize explicit promises, the relationship between performance and the intended reward, and the fairness and consistency of the “prizes” received.
Nike should adhere to several following recommendations considering the PESTLE model and several other vital aspects. For example, the corporation should take a more careful, thorough approach to labor and legal issues, pay taxes, and build its policy and culture to avoid an artificial monopoly. It is recommended to determine tactics in advance in case of crises, such as the COVID-19 pandemic. Moreover, Nike should think about strategies to improve the quality of the materials of the shoes and clothing made. For example, it is essential to create environmentally friendly products, provided that natural resources and benefits are used carefully.
PESTLE of Nike.
|Loyal requirements for the organization of activities on the part of the United States. |
A wide abundance of factories for the production of goods not only from the USA, but also from other countries.
Dependence on legislation in tax and production aspects.
|COVID-19 economic crisis. |
Developed business in the Internet space.
The need for continuous and active digital strategy.
|Changes in shoe requirements due to the pandemic. |
People’s desire for a healthy lifestyle.
Criticism of Nike materials.
|Brand’s own laboratory. |
A technological breakthrough in the world of sneakers in 2022.
|Accounting of laws and regulations of industry. |
The need to pay taxes, as well as the establishment of competent and correct marketing practices.
|Responsibility for the impact on the environment and nature. |
Requirements for the use of only environmentally friendly materials and resources in the manufacture of products.
General Conclusion of the Analysis and the Company
In conclusion, the analysis of the company, its cultural elements, and the management model was carried out successfully. Hence, the cultural element that allows creating a strong culture in Nike is the desire for innovation and uniqueness. Nike’s control system can also succeed when switching to a matrix structure. In addition, Trait and Expectancy Theories will inspire the company’s employees to new achievements. Nike is one of the most successful companies globally, producing unique and exciting products. Due to a competent business management strategy, a particular marketing campaign, and an approach to production, the company still holds a leading position.
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Daim, T.U., & Meissner, D. (2020). Innovation management in the intelligent world. Springer.
Graduate Studies, & Granite State College. (n.d). Cultivating your leadership capabilities. Simple Book Publishing.
Indeed Editorial Team. (2021). How to use the expectancy theory of motivation. Indeed. Web.
Jin, B., & Cedrola, E. (2018). Product innovation in the global fashion industry [eBook Edition]. Palgrave Pivot. Web.
Popkova, E.G., & Sergi B.S. (2020). Digital economy: Complexity and variety vs. rationality. Springer.
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