Case 11

NIKE – Spreading Out to Win the Race

Textbook Pages 453-454

1.  What factors drive Nike’s decision to stick with some form of network organizational structure rather than own its manufacturing operations?

2.  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?

3.  Draw a diagram that shows what you believe Nike’s present organizational structure looks like.  Be sure to include all possible components. Next look at the diagram as an organization design consultant. Ask: How can this structure be improved? How can Nike gain even more operating efficiency without losing its performance edge in terms of continually coming up with innovative, high quality, top-design shoes?

Homework assignments are an opportunity for the student to apply the course material to the assigned case studies.

Grades for these assignments will be based on the student’s ability to demonstrate their knowledge of the course material and the ability to apply the course material to the case study.

Each student shall write and submit the homework assignments individually.  This is NOT a group assignment.

The homework assignments shall be 2 to 3 pages (do not exceed 3 pages), double spaced.  Include a “Works Cited” section that lists all sources.  The Works Cited section is IN ADDITION to the 2 to 3 pages of material.