Description of the organization
Nike Inc is an American based sportswear company that has it headquarter in Beaverton, Oregon. Nike Inc is a company that deals with marketing, designing, development, and selling athletic footwear, accessories, apparel, equipment, and services. Bill Bowerman founded Nike Inc as a blue-ribbon sport. Nike Inc opened its first retail outlet in 1966 and later opened the Nike shoe brand in 1972. The company was renamed Nike Inc in 1978. Nike went public in 1980. Bill Bowerman was a field and track coach at the University of Oregon. By the start of the 21st century, Nike had established retail distributors and outlets in almost 170 countries (Urgo, 2020). Since the establishment, Nike Inc has been getting better and better over time hence becoming the most popular brand in the sportswear industry. Nike has become so successful around the world because it has a significant number of loyal customers due to its quality products and services. Nike Inc has become successful over the years because it has better ways of enticing its target customers by producing what they want.
Leadership practices of the organization
John Donahoe is the CEO and the president of Nike Inc since January 2020. Before becoming the Nike CEO, John Donahoe worked on the Nike’s board of directors. Although John is new to his role, he has demonstrated the power to facilitate the Nike brand’s continued growth. He has also shown authority in advocating for Nike’s global business portfolio (Distelhorst, Hainmueller, Locke, 2017). As a leader, John believes in creative art, acting as an aid to the company designs. As a leader, John gives his subordinates a chance to execute their ideas and integrate them into the company’s goals and objectives, hence making them appreciated in the company.
As the CEO of Nike, John Donahoe sharpens and refines his ideas and words as he couriers them to other managerial leaders in the company. John helps in decision making in Nike Inc; for instance, when there are too many ideas brought on board, he assists in deciding which should be used before the others. John works hand in hand with other Nike Inc managers to determine and establish goals and objectives the company needs to act before a particular period (Klimkiewicz, K., and Janusz, 2016).
Current leadership and effect on organization’s culture
Effective leadership brings about great and robust organizational cultures. The current administration has had a significant impact on Nike Inc because it supports the business capability and resilience. In Nike Inc, corporate culture has emerged due to the frontline leaders of the company encouraging all the staff workers to endure in finding new ways of improving the business by adapting to the workplace environment. The current Nike Inc management has achieved a productive organizational culture by giving the Nike workers rules and instructions and defining clear expectations on how the job should be done. Current Nike Inc leadership makes a high corporate culture by encouraging the human resources to act in traditions that address their business objectives. The current administration in Nike Inc is facilitating a unique organization culture by creating a significant connection between workers, management, workers, and other workers (Bowers, Hall, and Srinivasan, 2017). The current leadership in Nike Inc is in a position to focus on developing great mentorship programs for their workers, which creates a high organizational culture and right working conditions.
SWOT analysis of the Organization’s Strengths
Nike Inc has several strengths that help in succeeding over its competitors. The most significant advantages in Nike Inc are a strong core brand and a diverse brand portfolio. Nike has one of the most reliable brands in the entire sportswear industry. Nike is the company that has gained a lot of trust in the sportswear industry where most people think of the brand when they need purchasing any hip and sporty footwear. Every year Nike Inc gets a lot of profits through this strength hence getting additional revenue. Another advantage is the diverse brand portfolio, which is complementary to the Nike brand itself, which is believed to be extremely strong (Ahmed, 2016). The most common brand portfolio is the converse and other sub-brands such as the Nike Tiempo, Nike Shox, and Nike blazers. The Nike brands have their foundation well spread across the footwear industry; hence, it acts as a strength for Nike Inc as the brand has outfits for all weather conditions.
SWOT analysis on organization’s weaknesses
Although Nike Inc has strengths that keep it going, some weaknesses pull it down. The most promiscuous gap of Nike Inc is; dependency on the United States market and poor labor conditions in foreign countries. Although Nike Inc has established itself globally, it still depends on the United States market concerning revenue and sales. In 2018 58% of the Nike Inc sales came from other parts of the World, whereas the rest 42% of the sales came from the United States market (Ahmed, 2016). Nike highly relies on the United States market for substantial growth and sales. Another weakness affecting Nike Inc is the poor labor conditions in foreign countries, which gives their competitors a competitive advantage in the marketplace. Some of the reduced labor conditions in foreign countries are low wages, horrific working conditions, and child labor.
SWOT analysis on organization’s opportunities
Nike has become much successful by utilizing all the available opportunities. Due to market opportunities, Nike has grown in all senses. The growing market is one of the opportunities that have presented itself to Nike Inc. As the company gets older, the more most people are becoming active in the market. In most developing countries, the growing demand gives room for the continuous growth of the footwear market. When there is constant market growth, the more the Nike Inc incurs profits. Another opportunity for Nike Inc is the presence of innovative products. Although Nike has made a lot of products, it has not yet exhausted because every day, there is a chance to make new products and take them to the market hence giving the company a lot of profits (Ahmed, 2016). The innovation of Nike Inc products has further extended to health and fitness, thus creating several new customers. Nike Inc uses wearable technology in the building of innovative technology products.
SWOT analysis on organization’s threat
Nike Inc should focus on all the directions to determine which are the possible threat to the company. One of the most significant threat to Nike Inc is the counterfeit products. When allowed to the market, counterfeit products impact the reputation and revenue of the company negatively. Due to the widespread of Nike brand products, there are high chances of counterfeit products globally. The retailers and the merchandisers who sell the fake products sell them at a relatively low price hence acting as a significant threat to the company. The counterfeit products are still a substantial threat to the Nike brand because they are of low quality, yet they have the Nike label hence destroying its market reputation (Ahmed, 2016). Another threat to Nike Inc is increased competitive pressure where other companies have different products from Nike Inc. Nike, over the years, has dominated the athletic industry, but other brands are producing products that are relative to a higher quality compared to Nike Inc products (Kim, 2020). Increased competitive pressure has been a significant threat to Nike Inc because the more the competition ratio, the more the company will use its funds and revenues to advertise its products.
Strengths of the primary leadership practices
The Nike Inc CEO, John Donahoe, uses participative leadership to enable the company’s growth globally in the World of sports shoes and other equipment in the market. John calls for inputs of all the employees in making most of the company’s important decisions. John Donahoe involves all the employees in coming up with strategies that will create a sharp brand image for the company; hence the involvement acts as the greatest strength for the company. John also uses the participative leadership practice the employees’ staff is given the pertinent information concerning the rapid innovative processes within the company, which further gives it a cutting-edge design in its products (Kim, 2020). In global distribution and production networks, the Donahoe gives the employees the power to determine the cause of action that the company is supposed to take. This way, the organizational culture is made a firm hence greater success.
Weaknesses of primary leadership practices
In his leadership John Donahoe have characters participative leadership but, in some case, he lacks significant contributions when it comes to decision making and their implementation throughout the company. As the CEO, it is clear that one should be responsible for making the most crucial decision in their organization on serious matters that may be affecting the organization. In cases of conflict with the company, the CEO should have the characteristic of determining who is wrong and who is right and end up making the appropriate decision on their fate. Labor controversies are affecting the Nike business because the CEO fails to make the right decisions concerning the production facilities based in the developing countries. When the CEO lacks the power to make decisions within Nike Inc, there are limitations in the product mix; hence, it is unable to reach out for the maximum number of customers (Kim, 2020). When John fails to integrate participative leadership characteristics in his ruling, there will be a limited presence of products in the developing markets.
Theory-based practices for future success
The aspects of a participative leadership dominate in John Donahoe. John, the Nike CEO, is responsible for explaining any decision within the company to his subordinates, which gives them room for resolving any objection as a team. In the company, most leaders have to change or modify their ways of doing things, and the CEO is not an exception. There are several recommendations for John Donahoe when facing difficult situations within the company. The recommendations are learning to make high-quality decisions, be results-focused, and be good at dealing with the company’s conflicts. Decision making within any organization is one of the most vital step leaders take for their organization’s success. I would recommend that Nike Inc CEO should develop good decision-making traits. I would also recommend the Nike Inc CEO to be results-oriented because taking actions is not enough without the outcomes. I would suggest that John Donahoe work hard so that he can excel in dealing with conflicts that may arise within the company premises. When all parties are at peace with one another, the company will easily continue being successful.
References
Ahmed, R. R. (2016). “Strategic Marketing Plan of Nike “. ResearchGate, Indus Institute of Higher Education.
Bowers, M. R., Hall, J. R., & Srinivasan, M. M. (2017). Organizational Culture and Leadership Style: The Missing Combination for Selecting the Right Leader for Effective Crisis Management. Business Horizons, 60(4), 551-563.
Distelhorst, G., Hainmueller, J., & Locke, R. M. (2017). Does Lean Improve Labor Standards? Management and Social Performance in the Nike Supply Chain. Management Science, 63(3), 707-728.
Kim, M. (2020). How Phil Knight Made Nike a Leader in the Sport Industry: Examining the Success Factors. Sport in Society, 1-12.
Klimkiewicz, K., & Janusz G, N. (2016). The sustainable Supply Chain Management as the Challenge for Global Leadership. Logistyka Odzysku, (2 (19)), 78-82.
Urgo, G. (2020). Klawing for Protection: Kawhi Leonard’s Battle with Nike over Intellectual Property Rights. DePaul Journal of Sports Law, 16(1), 4.