Describe The Factors That Drive Nike’s Decision To Stick ✓ Solved

Describe the factors that drive Nike’s decision to stick

Hello, students. This lecture will focus on case briefing. You will begin to brief a case this week. Many students ask, “Why do we brief cases?” This is a valid question, and one worth pondering. Legal professionals brief cases so their reading time is spent in the most productive manner possible. By briefing a case, we engage in active reading strategies to improve our understanding of complex legal decisions. Case briefs also serve as useful tools when going back to a case that we read weeks or months ago in order to use that case as part of a case filing. Case briefs are completed using a very specific template. Once you learn one format, you will be positioned for success with any format you are asked to use. In this class, we will follow the briefing format explained in the eText. The sections of your case brief are citation, facts, rule, issue, holding, reasoning, and criticism.

The citation goes at the top of the case brief, and is written all on one line. You should include the name of the case, the court that decided it, where the reader can locate it, and the year of decision. The Facts section is divided into two parts: substantive facts and procedural facts. Substantive facts are the facts of the case that happened before the case came to court. You’ll need to be selective here, and only include facts that you think affected the court's decision. Procedural facts are which lower courts heard this case, and how each court decided.

The rule should be the rule of law on which the court based its decision. The next section is the Issue. An issue is the legal question created by the facts and relevant rule that the court must resolve. Your Issue should start with the word “Whether” and include references to the facts and law so the reader can understand why the parties are in court.

The Holding is the answer to the question asked in the Issue. It should start with Yes or No, and should contain very similar language to the issue question. The reasoning section should be written in your own words. Here, you should explain the court’s holding clearly and succinctly. The last section is the criticism section. This should include a short accounting of what the dissent or concurrence had to say.

Paper For Above Instructions

Factors Driving Nike’s Decision for a Network Organizational Structure

Nike's decision to adopt a network organizational structure instead of owning its manufacturing operations is driven by several critical factors that align with its core business strategy and operational philosophy. Firstly, the primary factor is core competency optimization. Nike focuses on product design and brand management, outsourcing manufacturing to subcontractors to maintain high-quality output while minimizing costs. This structure allows Nike to allocate resources efficiently toward research and development, marketing, and enhancing customer engagement, which are pivotal for its competitive edge in the athletic industry (Schermerhorn Jr., 2016).

Secondly, cost-effectiveness plays a significant role. Outsourcing manufacturing enables Nike to leverage global labor cost advantages, which are crucial in an industry where price competition is fierce. By relying on subcontracted factories, Nike can respond swiftly to market demands and fluctuations without the heavy financial burden of maintaining manufacturing facilities (Schermerhorn Jr., 2016). This approach not only lowers operational costs but also minimizes risks associated with production, such as overcapacity or supply chain disruptions.

Moreover, Nike’s focus on innovation and sustainability complements its network organizational structure. By collaborating with various suppliers and manufacturers, Nike fosters an ecosystem that encourages technological advancements and sustainable practices. This strategy allows the company to remain at the forefront of industry trends, effectively addressing consumer expectations for environmentally friendly products (Schermerhorn Jr., 2016).

Additionally, Nike's use of a customer-focused approach benefits from this structure. The decentralized nature empowers individual business units to tailor products and marketing strategies to regional markets, enhancing customer satisfaction and brand loyalty (Schermerhorn Jr., 2016). Each unit can rapidly adapt to changing consumer preferences, creating a significant advantage in the dynamic market landscape.

Lastly, the global expansion strategy is better supported by a network structure. Nike leverages international partnerships and suppliers to maintain a global footprint, facilitating entry into diverse markets while mitigating risks associated with localization (Schermerhorn Jr., 2016). By utilizing local manufacturers, Nike can navigate different regulatory environments more effectively and capitalize on local market knowledge.

Assessing the Effectiveness of Nike’s Decentralized Network Structure

Nike’s choice of a decentralized and networked organization structure has proven advantageous for several reasons, contributing to its sustained competitive edge and market dominance. One of the most significant benefits is the ability to foster innovation. By decentralizing decision-making, Nike empowers its individual business units to explore innovative ideas and adapt quickly to market changes (Schermerhorn Jr., 2016). This decentralized structure allows for rapid experimentation and the implementation of novel marketing campaigns, product variations, and technological advancements that resonate with diverse consumer segments.

Furthermore, decentralization enhances responsiveness to market demands. Each product line team possesses the autonomy to make decisions aligning with regional customer preferences, enabling Nike to tailor its offerings effectively (Schermerhorn Jr., 2016). This flexibility has enabled Nike to respond swiftly to competitive pressures and capitalize on emergent trends, distinguishing itself as a leader in brand responsiveness.

The decentralized structure also fosters better communication and collaboration within the organization. With autonomous teams, information flows more freely, allowing cross-functional collaboration that enhances creativity and efficiency. This improved communication can lead to a more cohesive organizational culture that prioritizes collective success and shared goals (Schermerhorn Jr., 2016).

Moreover, a networked structure supports cost efficiency. By leveraging partnerships and flexible arrangements, Nike can reduce overhead costs associated with maintaining a centralized system (Schermerhorn Jr., 2016). This operational efficiency allows Nike to reinvest savings into marketing, product development, and other strategic initiatives, ultimately improving profitability.

In conclusion, Nike's decentralized and networked organization structure remains beneficial. It has facilitated innovation, market responsiveness, collaboration, and cost efficiency, driving the company's success in a competitive industry.

Current State of Competition in the Athletic Industry

As of now, the athletic industry is characterized by intense competition, with several key players striving for market share. Brands such as Adidas, Under Armour, and Puma are prominent competitors, each attempting to innovate and expand their footprint. While Nike initially maintained a substantial lead, competitors are increasingly adopting similar strategies, focusing on sustainability, technology, and brand identity (Statista, 2023).

Nike continues to leverage its established brand identity and innovative products to stay ahead of competitors. However, rival brands are intensifying their marketing efforts and product development, attempting to capitalize on consumer demands for cutting-edge athletic gear and sustainability (Statista, 2023). This competitive landscape raises questions about whether Nike can continue pulling away from its rivals or if they are catching up.

The adoption of digital technologies and e-commerce capabilities by competitors is another factor altering the dynamics of the industry. Brands are increasingly investing in direct-to-consumer strategies, which has shifted the traditional retail model and allowed them to bypass intermediary costs (Statista, 2023). This disruption could impact Nike’s market share if it fails to adapt effectively to these changes.

Despite these challenges, Nike’s strong brand loyalty and continued investment in innovation position it well to maintain its leading role in the industry. Its extensive marketing campaigns and community engagement efforts also help solidify its customer base against emerging competitors (Statista, 2023).

Assessing Nike’s Organizational Structure

Nike's organizational structure serves as a major strength that contributes to its success. The decentralized and networked structure allows for agility and adaptability, which are crucial in a rapidly changing market. This flexibility enables Nike to respond to industry shifts promptly, innovate effectively, and manage resources efficiently (Schermerhorn Jr., 2016).

However, some challenges persist. As the company scales and expands, ensuring effective communication and alignment across various teams becomes increasingly crucial (Schermerhorn Jr., 2016). This challenge can lead to potential misalignments in strategy and execution if not managed properly. Furthermore, as competition intensifies, Nike must continuously evaluate its organizational design to ensure it supports growth without adding unnecessary complexity.

Consequently, while Nike’s organizational structure remains a strength, it is critical to monitor potential problems that could arise from increased complexity and ensure that adaptability does not compromise cohesion within the company.

Exploring the Matrix Structure’s Impact on Performance

Implementing a matrix structure could enhance performance for Nike by combining the benefits of functional and project-based organizations. A matrix structure enables flexibility in resource allocation and promotes collaboration across departments, fostering increased innovation (Schermerhorn Jr., 2016). This structure would allow Nike to leverage its strengths in product design while remaining responsive to market trends.

Moreover, a matrix structure could improve project management by providing clear oversight and accountability among team members, streamlining decision-making processes (Schermerhorn Jr., 2016). Improved communication channels can lead to effective problem-solving and enhance the ability to launch new products successfully. It can also facilitate faster responses to market changes, helping Nike stay ahead of competitors who are increasingly agile in their operations.

In summary, a matrix organizational structure may provide Nike with mechanisms for improved performance, fostering enhanced collaboration, communication, and innovation while enabling greater flexibility in responding to the dynamic athletic industry.

References

• Schermerhorn Jr., J.R., Bachrach, D.G. (2016). Nike: Spreading Out to Win the Race. In Exploring Management (Cases for Critical Thinking).
• Statista. (2023). Market share of leading athletic footwear brands worldwide in 2022.
• Statista. (2023). Global athletic apparel market sales by brand in 2022.
• Statista. (2023). U.S. athletic apparel market revenue from 2018 to 2026.
• Statista. (2023). Leading sports apparel brands in the United States in 2022.
• Statista. (2023). Revenue of Nike worldwide from 2005 to 2022.
• Statista. (2023). Change in Nike's revenue by product segment in 2022.
• Statista. (2023). Number of Nike stores worldwide as of 2022.
• Statista. (2023). Leading competitors of Nike in the global market.
• Statista. (2023). Trends in the athletic industry workforce and innovations.