Assignment Instructions
Please respond to the following:
- From the link resource, evaluate the success of Nike’s global network structure in terms of centralization of authority and horizontal differentiation. Next, analyze the fundamental manner in which the company’s outsourcing strategy facilitates both resource sharing and the leveraging of its competencies around the world. Provide a rationale to support your response.
Link: http://www.youtube.com/watch?v=JHkP7bcH2BA.
- From the link resource, evaluate the appropriateness of the type or types of basic strategies that Nike implements in order to expand globally. Next, analyze the most important manner in which Nike’s organizational structure, control systems, and culture influence its international strategy. Provide a rationale to support your response.
Sample Answer
The success of Nike global network structure has been facilitated by its centralization of authority. The company’s important decisions are made by the company’s executive body. These decisions are then implemented in the entire supply chain. This has ensured success in all its operations since this centralization ensures that there is no confusion or unevaluated decision along the supply chain. This has also been facilitated by organization horizontal differentiations by producing high quality shoes that are either reusable or recyclable.
Nike outsourcing strategy facilitates both resources sharing and the leveraging of its competencies around the world by giving back to the society. This has been achieved by supporting sport in developing nations where they sponsor couching and sports training to ensure development of talent from the most forgotten groups. This promotes their product in developing nation and helps the company brand to earn fame and great respect in the world. It also supports a group of women that focuses eliminating illiteracy. The company’s mission is to save the world and helping to boost various categories of people in the world. This is marketing Nike brand in a manner that would never have been achieved by use of any other marketing media.
Nike global strategies focus on improving the life of young people in less developed communities. This is quite appropriate since by so doing, the company earn fame and respect. It bid the community to it and any form of development will be attached to it. In so doing, the company is creating a great market for its products in future. Moreover, it creates awareness of its product in developing nations and thus, gaining an opportunity to create a new market for its products.
Nike adopts a centralized organization culture, and all its control system are governed from the central body. Moreover, the company has a culture of promoting its brand using young growing talents. This has made it easy for the company to decide and implement the current international strategy that involves selling of their brand by promoting young people in their normal life and in sport. This is because just like in case of Jason, prosperity of those individuals will be related with Nike and thus, most people will buy the company products as a way of supporting their community based activities.
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