presentation de l'organisation nike

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Nike Organizational Structure In A Nutshell

Nike has a matrix organizational structure incorporating geographic divisions. Nike’s matrix structure is also present at the regional and sub-regional levels. Managerial responsibility is segmented according to business unit (apparel, footwear, and equipment) and function (human resources, finance, marketing , sales, and operations).

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Understanding the Nike organizational structure

Nike is the world’s most valuable global apparel brand , estimated to be worth dozens of billions.

The company has a matrix organizational structure that combines aspects of a hierarchical and product-based structure.

To support the immense valuation of the Nike brand , teams are divided based on product and must report to project managers. These teams are also accountable to broader department managers who handle policy and regulation. The presence of multiple chains of command with overlapping responsibility is a key feature of the matrix approach.

There are four main components to Nike’s organizational structure. In the following sections, we will look at each of these in more detail.

Global corporate leadership

At the top of the hierarchy is global corporate leadership. This comprises managers who make corporate decisions that have global ramifications for the company. For example, the responsibility for creating a worldwide marketing campaign ultimately rests with a single group at company headquarters.

Each group is headed by a President, Executive Vice President, or Chief Officer:

Nike brand .
Global human resources.
Administration and legal.
Office of the President and CEO of Nike Inc.
Global sports marketing .
Operations.
Product and merchandising.

Each is also based at the global headquarters in Beaverton, Oregon, and is responsible for managing operations in the United States, Americas, and Asia Pacific.

Nike executives note that this structure allows employees to identify with a streamlined company culture that makes consumer needs a priority. They also note that it enables the company to develop a valuable, globalized, and instantly recognizable brand regardless of geographic location.

Regional headquarters

In the case of the EMEA (Europe, Middle East, and Africa) region, operations for 27 countries are managed by a centralized European headquarters in the Netherlands.

EMEA is further segregated into sub-regions including France, Iberia, Italy, Northern Europe, UK & Ireland, AGSS (Austria, Germany, Slovenia, Switzerland), and CEMEA (Central Europe, Middle East, Africa).

Here, the additional level of hierarchy seeks to reduce complexity by managing the number of direct reports for each senior manager. By grouping single markets into regions, fewer direct reports need to be funneled back to regional headquarters.

Sub-regions are semi-autonomous geographic divisions, allowing Nike to build synergies derived from the grouping of countries. For example, AGSS was created to streamline logistics, finance, and marketing operations for each member of the group.

Further streamlining is also seen by examining the way the countries themselves are grouped. They may be clustered according to:

Consumer similarities. For example, consumers in the UK and Ireland are likely to have similar preferences and expectations. This helps Nike adjust marketing strategies accordingly.
Retail similarities, or a likeness of retail structures.
Similarities in market size or market development stage.

Regional matrix structure and subsidiaries

Regional matrix structure.

Nike’s matrix structure is also present at the regional and sub-regional levels. Managerial responsibility is segmented according to:

Business unit – apparel, footwear, and equipment.
Function – human resources, finance, marketing , sales, and operations.

Again, the employee must report to two managers. In this case, the functional department manager and the product manager.

Subsidiaries

Nike has 54 wholly-owned subsidiaries, including Umbro, Cole Haan, Converse, and Hurley.

Like sub-regions, these subsidiaries enjoy some level of autonomy. However, projects exceeding limits set by either the regional or global headquarters must obtain approval.

Generally speaking, subsidiaries are free to make operational decisions at the country level. These decisions may encompass the implementation of plans, local initiatives, or adaptation strategies.

Comparison with Top Related Companies

Adidas : Adidas uses a similar matrix structure, integrating both global and regional dimensions, which is segmented by product type (footwear, apparel, and accessories) and market. Like Nike, Adidas focuses on ensuring that its product divisions have a strong functional support system, including marketing and sales. However, Adidas tends to place a greater emphasis on global brand consistency across all markets, whereas Nike often adapts more flexibly to regional market differences.
Under Armour : Under Armour operates with a functionally based structure, emphasizing centralized control over its product development and marketing strategies. This structure allows for strong brand messaging and quick strategic decisions at the corporate level. Compared to Nike’s matrix structure, Under Armour’s approach may result in faster decision-making but can lack the local market adaptability that Nike’s regional divisions provide.
Puma : Puma’s organizational structure is somewhat between Nike’s and Under Armour’s, featuring elements of both functional and geographic structuring. Puma organizes its operations around product lines and major global regions but with less emphasis on the matrix aspect than Nike. This structure supports efficient global operations but may not fully capitalize on the benefits of local responsiveness and cross-functional synergy that Nike’s structure offers.

Similarities and Differences

Similarities : All companies use a mix of product and geographic divisions to some extent, which helps manage their global presence and product diversity effectively. This common approach reflects the industry’s need for balancing global brand presence with local market needs.
Differences : Nike’s matrix structure allows for dual reporting systems within regional and product-based divisions, enhancing flexibility and innovation . In contrast, Under Armour’s more centralized functional structure prioritizes quick decision-making and brand consistency, potentially at the expense of local market nuances. Adidas and Puma, while similar to Nike, vary in the degree of integration and emphasis between their functional and geographic divisions.

Implications

Innovation and Market Responsiveness : Nike’s structure promotes innovation and responsiveness by facilitating close cooperation between product managers and regional managers. This structure can adapt more dynamically to changing market trends and consumer preferences.
Operational Complexity : The matrix structure, while beneficial for flexibility and responsiveness, also adds complexity to Nike’s operations. Managing overlapping responsibilities and dual command structures can lead to challenges in coordination and conflict resolution.
Local vs. Global Balance : Nike’s regional divisions are empowered to adapt strategies to local markets, which can be a competitive advantage in understanding and responding to diverse consumer behaviors. However, this needs to be balanced against maintaining a coherent global brand image.
Scalability and Efficiency : Nike’s approach supports scalability by allowing regional divisions to operate semi-autonomously yet aligned with global strategies. This is crucial for maintaining operational efficiency and leveraging global economies of scale.

Key takeaways:

Nike has a matrix organizational structure with a strong preference for geographic and regional divisions.
At the top of the Nike hierarchy is global corporate leadership headquartered in Beaverton, Oregon. Senior executives head seven functional groups that manage operations in the United States, Americas, and Asia Pacific.
Nike also has regional headquarters in the Netherlands that manages Europe, Middle East, and Africa. Countries in these regions are segregated to streamline operations and group consumers with similar preferences or attributes.

Key Highlights:

Matrix Organizational Structure: Nike employs a matrix organizational structure that combines elements of a hierarchical and product-based structure.
Global Corporate Leadership: Nike’s hierarchy starts with global corporate leadership, including functional groups like Nike brand , finance, global human resources, and more.
Regional Headquarters: For regions like EMEA (Europe, Middle East, and Africa), operations are managed by centralized regional headquarters, which are further divided into sub-regions.
Sub-Regions: Sub-regions, such as AGSS and CEMEA, are semi-autonomous divisions within regions, designed to streamline operations, logistics, and marketing .
Regional Matrix Structure: The matrix structure is also present at regional and sub-regional levels, with managerial responsibility segmented based on business units (apparel, footwear, equipment) and functions (HR, finance, marketing , etc.).
Autonomous Subsidiaries: Nike has multiple subsidiaries like Umbro, Cole Haan, Converse, and Hurley. These subsidiaries have some autonomy in operational decisions but require approval for significant projects.
Adaptability and Efficiency: Nike’s matrix structure allows for adaptability in different markets, consumer segments, and regions while maintaining a unified brand identity and decision-making process.
Consumer-Centric Approach: Nike’s structure enables the company to group consumers with similar preferences or attributes, leading to targeted marketing strategies.
Balancing Autonomy and Approval: The balance between subsidiary autonomy and centralized approval ensures alignment with overall company strategies and objectives.
Streamlined Operations: The matrix structure facilitates efficient operations by enabling cross-functional and cross-regional collaboration.
Globalized Brand Identity: Despite its complex structure, Nike maintains a strong global brand identity and company culture.

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