NIKE – Spreading Out to Win the Race

  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?