Organizational And Management System Of Nike Company

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Organizational And Management System Of Nike Company

Introduction

In today’s globalized world business and management is developing dramatically around the world and most people always want to achieve higher goals in various ways. Even though background plays an important role to be popular and admirable businessman, individual’s leadership entrepreneurship abilities are a transcendent part of increasing business profit and work productivity. Because, success never comes it is always achieved, therefore the only thing that is required from people is hardworking and trying to attain their aim with various ways.

The preponderance of entrepreneurship skills, how the business can be improved and the management system among employees as well as work productivity are illustrated as an example of the company NIKE which is keeping its reputation high around the world through this report

Background

The company of “Blue Ribbon Sports” later known as the name of NIKE was founded with the partnership of Bill Bowerman and Phil Knight in the year of 1964 January 25 close to Beaverton, Oregon, in the Portland metropolitan area. At first, they both contributed 500 US dollar and with the manufacturing sport wears they could sell 300 pairs of trainers during three weeks. After eight years, they produced a new sport footwear which is called NIKE as it taken the name of Greek Victory God and during 1980’s by entering to public NIKE brand became predominant over the globe. Furthermore, in this period of time with the “Swoosh” trademark company, they made alliance under the slogan of “Just Do It” and they made an irreplaceable brand image also they started sponsoring for a myriad of sport teams and athletes. For the first time in 1986, the revenues of the company multiplied over 1 billion US dollar and NIKE could achieve to expand its manufacturing rate substantially with the acquisition of the American popular Cole Haan brand, together the

The world’s largest athletic shoes supporter and a huge manufacturer of sports bags and clothes deserves more than 24.1 US dollars billion in the fiscal year of 2012. During this year, it hired more than 44 thousand people around the world. In 2014 the value of brand alone was at 19 billion US dollar, it made the most valuable brand logo around businesses areas of sport. In the top 500 US largest companies NIKE got 89th level with being suitable for 29,6 billion US dollars.

Management style

Manager should have multitasking virtuosities that can do everything in its time and solve different kind of problems which require much energy and deep thinking. In addition to this their attitudes towards controlling workers in the company is also based on their behavior and interpersonal skills, because they should always motivate their workers with different ways such by giving various certificates or bonuses in order to increase workforce and productivity. Moreover, setting information sharing and friendly atmosphere make staffs energetic and more creative. For example, successful leaders should have such kind of characteristics (Ferrell, Hirt and Ferrell 2011):

Outstanding interpersonal relationships.
Effective communication
Collaboration and teamwork
Comprehending financial aspects of business
Improving an environment where people can get more experience
Following the rules and routines
Assist people to grow and develop morally and personally

NIKE controls more than 73000 employees worldwide and use different categories to them to improve workforce. For instance, managers who work in this company and in its branches always encourage their workers by giving monetary bounce for the people who create new designs and high quality models. Their aim is in this way: Moreover, they pay attention supply and demand amount wisely where most consumed their products which are more popular and where the price is not affordable and others.

Altercations of NIKE Company

Nike has made contracts with overr700 stores and markets around the globe and its branches are situated in 45 countries except the United States of America. .Cornucopia of manufacturing factories got place throughout Asia, such as Indonesia, China, Taiwan, India, Thailand, Vietnam, Pakistan, Philippines, and Malaysia.[89] Nike does not always want to tell about their contracts with other companies which they work together. But, owing to various criticism from some corporations like CorpWatch, Nike has informed about their contracts to the public.

Sweatshops

Nike was under the criticizes that they making contracts with companies such as Nike Sweatshops in most countries, for example, Vietnam, China, Mexico and Indonesia. Vietnam Labor Watch group has made contract documents with Nike has been punished with low wages due to strict rules in Vietnam during 1996, even though, Nike claimed that they stopped the process. [90] this corporation was in the center of many critics such as not satisfying working conditions, low salary employed in most free trade areas where their products are particularly produced and the main supporter of this criticism consisted of Naomi Klein book like No Logo as well as documentaries of Michael Moore.

In July 2011, Nike corporation announced that two-thirds of their products did not support their company’s demands for treatment of their employees and as an Associated Press reported that workers in the Indonesia branch of this company complained from their managers owing to being under offence.

Child labor actions

In 1990s, Nike was under the criticizes that being used child workforce in the factories of Pakistan and Cambodia that they contracted to produce football balls. Even though Nike started controlling and diminish the practice, they did not stop making contracts with other companies which manufacture in places where insufficient regulations and controlling make it difficult to support that labor of children is not being utilized.

In the year of 2001, documentary of BBC investigate the process of children workforce and poor working conditions in the factory of Cambodia used by Nike and this was mainly based on six girls who frequently worked 16 hours per day during all weekdays.

Big strike in Nike manufacturing factory of China

Workers in the factory of Dongguan Industrial Holdings of Yue Yuan in the heartland of China branch of Nike started giving up their work in April 2014 because of low salary which is 40.82 US Dollars per month. However, the average wage rate was 489.84 US Dollars and the number of employees was about 70,000.

Marketing strategy of Nike Company

Nike increases the value of its products by different agreements like sponsorship with famous sportsman, professional teams and other athletic teams.

The first most popular three advertisements of Nike were show on national TV program which were formed by Widen and Kennedy (W+K) advertisement agency in 1982. This agency with advertising this company’s products achieved top honor and they called s the name of Nike the Cannes Advertising Festival in the year of 1994 and 2003.

Recommendation

Nike does not support people with sport equipment and clothes but also, they motivate individuals through various ways like advertisement and by being sponsors to most football teams, sport clubs and others. The quality of their products is very high and they are durable to any kind of weather conditions, they are manufacturing eco-friendlier sneakers.

Conclusion

In conclusion Nike company can be represented as one of the best styles of managing staff and organizing work more efficiently. Thus their work productivity is high and their future intended plans are implemented well. Because their leadership skills and solving problems analytically and wide range of solution by team working and its working conditions makes it the place which has the best career opportunities with job perspectives

References

Sage, Alexandria (June 26, 2008). ‘Nike profit up but shares tumble on U.S. concerns’. Reuters. Retrieved July 10, 2008.
Ozanian, Mike (July 10, 2014). ‘The Forbes Fab 40: The World’s Most Valuable Sports Brands 2014’. Forbes. Retrieved October 10, 2014.
‘Nike – pg.16’. Forbes. Retrieved September 27, 2017.
‘Fortune 500 Companies 2018: Who Made the List’. Fortune. Retrieved November 10, 2018.
Associated Press, ‘Nike still dogged by worker abuses’, Japan Times, July 15, 2011, p. 4.
‘MIT’ (PDF). Retrieved September 18, 2010.
More than ten thousand workers stage strike at massive Dongguan shoe factory, April 14, 2014
Yue Yuen shoe factory workers’ strike at Dongguan plants continues April 17, 2014.
Yue Yuen strikers vow to continue until benefit contribution deficit paid in full, South China Morning Post, April 18, 2013.
“Paradise papers’ expose tax evasion schemes of the global elite’. Deutsche Welle. 5 November 2017.