Nike Case Answers
Nike Case – Spreading out to stay together
1. When Nike CEO Phil Knight stepped down and handed his job to Bill Perez, he stayed on as chairman of the board. In what ways could Knight’s continued presence on the board have created an informal structure that prevented Perez from achieving full and complete leadershipof Nike?
Answer:
Informal structures are the shadow organization that represents the actualworking and communication relationships that may not resemble the formal organizationalchart. When knight remained on the board, old communication relationships may have survivedhis departure from the CEO po sition, cutting Perez off from valuable information. Knight’s access to the informal communication network may have worked to spread rumors to Knightand back down the communication chain. These rumors may have contained inaccurateinformation, caused resistance to change and distracted members from their work. This may have reinforced Perez’s position as an outsider.
2. How can Nike utilize both traditional and newer organization structures to support the firm’s heavy strategic commitment to outsourcing?
Answer:
Network structures use information technology (IT) to link with networks of outside suppliers and service contractors. This outlines
Nike’s efforts to outsource many nonexecutive responsibilities to reduce overhead. In addition to outsourcing production, theresearch and marketing business centers listed in the case could be part of a network structure.Other functions may include design, advertising, licensing, compliance sports andentertainment marketing.
Question 3) Does Nike’s in-house collaboration with ad agency Wieden + Kennedy qualify as a strategic commitment to outsourcing?
Strategic commitment involves a passionate, disciplined loyalty to a clear defined business strategy which focusses on the future and keeps putting effort in improving its strategy, not changing it. Therefore from the explanation of strategic
1. When Nike CEO Phil Knight stepped down and handed his job to Bill Perez, he stayed on as chairman of the board. In what ways could Knight’s continued presence on the board have created an informal structure that prevented Perez from achieving full and complete leadershipof Nike?
Answer:
Informal structures are the shadow organization that represents the actualworking and communication relationships that may not resemble the formal organizationalchart. When knight remained on the board, old communication relationships may have survivedhis departure from the CEO po sition, cutting Perez off from valuable information. Knight’s access to the informal communication network may have worked to spread rumors to Knightand back down the communication chain. These rumors may have contained inaccurateinformation, caused resistance to change and distracted members from their work. This may have reinforced Perez’s position as an outsider.
2. How can Nike utilize both traditional and newer organization structures to support the firm’s heavy strategic commitment to outsourcing?
Answer:
Network structures use information technology (IT) to link with networks of outside suppliers and service contractors. This outlines
Nike’s efforts to outsource many nonexecutive responsibilities to reduce overhead. In addition to outsourcing production, theresearch and marketing business centers listed in the case could be part of a network structure.Other functions may include design, advertising, licensing, compliance sports andentertainment marketing.
Question 3) Does Nike’s in-house collaboration with ad agency Wieden + Kennedy qualify as a strategic commitment to outsourcing?
Strategic commitment involves a passionate, disciplined loyalty to a clear defined business strategy which focusses on the future and keeps putting effort in improving its strategy, not changing it. Therefore from the explanation of strategic