Question

Can someone please read this Case Analysis Article and properly answer Case Analysis Questions 1 and 2, down below?

Also (PLEASE TYPE) everything out.

NIKE Spreading Out to Win the Race

Where’s the Company? If you don’t make anything, what do you actually do? It’s not a joke or a Buddhist riddle. Rather, it’s a conundrum about one of the most successful companies in the United States—Nike. The company is known worldwide for its products, none of which it actually makes. But if you outsource everything, what’s left? The answer, for starters, is a whole lot of brand recognition. Since captivating the shoe-buying public in the early 1980s with legendary spokesperson Michael Jordan, Nike continues to outpace the athletic shoe competition while spreading its brand through an ever-widening universe of sports equipment, apparel, and paraphernalia. The ever-present Swoosh graces everything from bumper stickers to sunglasses to high school sports uniforms. Nike products embody a love of sport, disci- pline, ambition, practice, and other athletic traits.1 Outsourcing Wins the Race Nike has cleverly kept its advertising agency nestled close to home, but has relied extensively on outsourcing many nonexec- utive and back-office responsibilities to reduce overhead. The firm is structured around its core competency in product design— not manufacturing. But Nike has taken outsourcing to a new level, with subcontractors producing all of its shoes. Although this hasn’t hurt product quality, it has challenged Nike’s reputa- tion for social responsibility. In a move designed to turn critics into converts, Nike posts information on its Web site detailing every one of the hundreds of factories that it uses to make shoes, apparel, and other sporting goods.2 It released the data in conjunction with a comprehensive corporate responsibility report summarizing the environmental impact and the labor situations of its contract factories.

Jordan Isn’t Forever

Banking on the star power of its Swoosh, Nike has successfully branded apparel, sporting goods, and even sunglasses. Like many large companies who have found themselves at odds with the possible limitations of their brand, Nike realized that it would have to master the one-two punch: identifying new needs and supplying creative and desirable products to fill those needs. In fitting with the times, Nike’s VP of Global Design, John R. Hoke III, encourages his designers to develop environmentally sustainable designs like the Nike Free, a lightweight running shoe that boosted sales dramatically.4 And Nike’s Sustainable Business & Innovation Lab funds outside startups focused on alternative energies, more efficient approaches to manufacturing, and the promotion of healthy lifestyles.

Staying in Front

Pressures is mounting from outside Nike’s Beaverton, Oregon, headquarters. German rival Adidas drew a few strides closer to Nike when it purchased Reebok.5 The new super group of shoes isn’t far off from Nike’s market size. But when faced with such challenges, Nike simply knocks its bat against its cleats and steps up to the plate. Says Nike spokesman Alan Marks: “Of course we’re in a competitive business, but we win by staying focused on our strategies and our consumers. And from that perspective nothing has changed.”

Keeping It Together

Nike has so far balanced size and pressure to remain successful by leveraging a decentralized and networked organization struc- ture. Individual business centers—such as research, production, and marketing—are free to focus on their core competencies without worrying about the effects of corporate bloat. The company has found continued marketplace success by positioning itself not simply as a sneaker company but as a brand that fulfills the evolving needs of today’s athletes and athletes-at-heart.

Case Analysis Question 1 (Discussion) What factors drive Nike’s decision to stick with some form of network organizational structure rather than own its manufacturing operations?

Case Analysis Question 2.(Discussion) Could a shift toward a more mechanistic organizational design help Nike avoid past reputational problems with its global supply chain, such as bad labor practices by some of its foreign contractors?

Answer 1

answer-

1- The network structure is a newer type of organizational structure viewed as less hierarchical (i.e., more “flat”), more decentralized, and more flexible than other structures. In a network structure, managers coordinate and control relationships that are both internal and external to the firm.

Nike prefer to use this type of organizational structure over its own manufacturing operations because in this structure it can outsource its manufacturing to other locations and cut down the cost of manufacturing plant. hen using a Network type organizational structure, the organization saves money since there are less full-time employees, using this type of structure makes it easier to grow and for shrink in times or greater or smaller product volume needed, this makes managing inventory easier. Lastly Network structure gives Nike the upper hand by giving them a more open market of expertise and the ability with work with specialty alliance partners and/or contractors. Decreasing overhead through outsourcing is a valuable resource for Nike. Cutting costs by employing workers at a reduced rate or paying less for plant operation allows Nike to invest the additional profits into other areas of the business such as advertising, thereby increasing the potential for company growth. In addition, decreased operational costs are more likely to attract and retain company investors because more money can go into increasing business profitability .

*as per HomeworkLib policy,i can answer only one out of multiple discussion or chapter or course questions. pls post the second separately. hope above answer would help you. thanks.