Assignment

Assignment

Introduction

Nike Inc. was graded 204 in the 2002 Fortune 500 with over 9 billion in annual revenues. The founders went from trading footwear from the back of a van to 10,000 Nike shops all over the world. That is an achievement story. Each and every athlete has a distinct way of accomplishing and Nike presents a kind of goods (make, form and body style) permitting athletes to present to their fullest and best performance. I powerfully acquiesce that the achievement of Nike is founded on an enterprise form that leverages components and tendencies in the functioning environment. (Hatch 2006) This paper discusses the Nike's organisational structure and how Nike has affected and been affected by the external environment. The theories being used in this essay are institutional theory and stakeholder theory. The organization design model used here is a process-based organization.

Discussion

Nike was begun when Phil Knight and Bill Bowerman contacted at the University of Oregon and had the dream to start a footwear company. They first called it Blue Ribbon Sports. At first, they conceived the footwear and a Japanese business called Tiger constructed them. In 1972 Blue Ribbon and Tiger have an argument, so Blue Ribbon concludes to proceed on their own, regardless of the gigantic risk.

Blue Ribbon commences the "Nike" crusade at the Olympics that year. Track athlete Steve Prefontaine was the first foremost athlete to wear Nike shoes. In 1978, tennis contestant John McEnroe indications with Nike. This was a gigantic increase for Nike because in 1979, Nike is eventually the number one footwear in America. In 1985, basketball celebrity, Micheal Jordan marked with Nike. This verified to be the large-scale and most thriving footwear marking likely ever. The Air Jordan is commenced and atmosphere rockets to number one. A crusade that begun out as just footwear has now developed to all basketball apparel. Why the Air Jordan was so thriving was because it was certain thing new. It looked flashy, it sensed snug and if Michael Jordan could dunk in N.B.A, well you could too. That is why Nike is so successful. They knew that if they could find the right individual to signal with them, they could and would be number one. It was an issue of having the right individual market it, at the right location and in the right time. (Hatch 2006)

Nike's enterprise form is to conceive, evolve, market and deal product. Subcontractors handle all constructing, with the exclusion of Air expertise components.

 

Organisational Structure

Two theories offer frameworks for understanding corporate brands and their relationships with the societies to which they are marketed. First, institutional theory stresses the primary importance of the organization maintaining 'social legitimacy' within its operating environment. This 'legitimacy' is conferred by society upon organizations that meet the criteria of acceptable behavior. Second, stakeholder theory focuses the framework. Taken together, all stakeholders constitute the social environment within which the firm operates. For example, NIKE's assertion that it commonly pays double the minimum wage in host countries may still seem exploitative from a ...