 College of business administration

CBA

MGMT Assignment 2

Q1-Describe organization structure of the company (e.g, number and

names of departments, ownership of the company, organizational chart,
etc.)
- Nike Inc.’s organizational structure reflects the abilities and limits
of the business in its operations. A company’s organizational or
corporate structure is the composition and system design applied
on the interconnections among employees, groups, and divisions
of the business. In Nike’s case, the corporate structure highlights
the need to address differences among regional markets.
 Office of the President & CEO, Nike, Inc.
 Nike Brand.
 Finance.
 Global Human Resources.
 Product & Merchandising.
 Administration & Legal.
 Global Sports Marketing.
 Operations.

Q2-Which competitive or business strategy is considered in order to

reach your vision and goals?
 Nike follows the competitive strategies of the
“Product differentiation”, “Focus on market niche”, and
“Strengthen customer and supplier intimacy” to improve the
competitive strategies among its competitors. The Nike business
strategy is clear, invest in building your brand through
emotional marketing and sports celebrity endorsements, develop
products that have high-quality, market-leading technology and
buy out competing sports brands.

Q3- Who are the main stakeholders (e.g. shareholders, employees,

media, Government, and other private or public organizations, etc., in
the society)?
Nike Inc. maintains corporate social responsibility (CSR)
programs to address the interests of its major stakeholder groups.
According to Archie Carroll, stakeholders are individuals or
groups that have a significant stake in what the business does.
The company influences them, and they influence the company in
return. The brand image and sales performance of Nike sports
shoes, apparel, and equipment are significantly subject to the
effects of stakeholders’ interests and corresponding actions.
 Customers (top priority)
 Communities.
 Employees.
 Governments.
 Interest Groups.

Q4-Discuss the External environment of the company by considering the

following factors: Social, Economic, Technological, Legal, and
Demographics. External environments are defined as the events
that occur outside the company or the organization, which that
has the potential and attributes to alter and influence or have an
affect on the actual environment. Nike is well known company, if
we get to the Social side of it, it is definitely one of the most
relevant companies. And for the Economic side, it is a really
wealthy company, it has a big profit from the products they make.
For the Technological side, they have tried to implement new
tech and stuff for their products, but it did not succeed. Mainly
because Nike is a sportswear brand. For our last point, which is
the Demographic environment, Nike is obviously made for
everyone just like any sports brand. Everyone and from all the
ages can exercise and have fun with their products, and also
even if you are not exercising, you can use their other products.
For example the Air Jordans and other stuff they have. You can
use these to just dress good.

Q5-Discuss the main Strengths and Weaknesses of the company.

Nike strength: Coupled with its iconic “Swoosh” logo and its
equally catchy tagline, Nike's strength is that it has emerged as
a “Can Do” company. Strength of the company is that it has
outsourced all aspects of its production to overseas facilities and
thereby, does not have any manufacturing outlet of its own.  the
other big strength of Nike is that it is a globally recognized brand
that has top of the mind recall among consumers and the youth in
particular.

Nike weaknesses: Poor Labor Conditions in Foreign

Countries – In the last 20 years, Nike has been consistently
targeted regarding their poor labor conditions. These issues
 include forced labor, child labor, low wages, and horrific
working conditions that were deemed “unsafe”.

Dependency on US Market – Even after having established

itself globally, Nike still relies on the U.S Market in terms of
sales and revenue. In the fiscal year 2020, about 41% of Nike’s
sales came from the U.S, while the rest of 59% came globally.
Despite its fame, Nike depends on the U.S for substantial sales
and growth.

Mohammed Mufeed Alhowar 2190004668

Abdullah Albassam 2200002297