Nike was not a public company before 1980. After 1980 it became a public company. This means the Nike became a very large company due to its success of Nike brand name and changes in the external environment. Its internal organizational structure is informal and based on teamwork and is a more flat organization functional and flexible. Informal control systems within the organization. Its culture has a very strong sense of quality and quality improvement and has an entrepreneur style of management. In the external environment the athletes wanted more comfortable shoes and due to major life style changes and Americans discovered jogging, health and fitness. This fueled the growth in sales for Nike and its sales increased in 1972 from $2 millions to $694 million in 1982.
The internal and external environment needs a leadership style that encourages innovation and flexible in its work processes and decision-making and to improve quality on a continuous basis and to have a strong direction for the organization as whole.
Nike transformation is its international nature of its manufacturing, becoming a more flexible and quality conscious organization. More flatter and flexible organizational structure than in its initial stages as well informal control system rather than formal control systems. It has become from a private company to a leading multinational in a very short span of time.
The Key beliefs and values assumptions of Nike culture are its belief in teamwork entrepreneur spirit, strong commitment to quality of its products, flexible organizational
structure and decision- making and informal control system to become more adaptable to changes in the external environment and innovative. Have values of competition, excellence, and individual effort. Team commitment and never-ending pursuit of improvement. As well to have a powerful leader who can make harder decisions if necessary and his role in the organization is to be thinking conceptual terms where the organization to be in the future and how to get there.
As the organizational culture instill innovation and flexibility and promote high achievement and its values enhances product quality on a continuous basis and encourages individual effort its productive efficiency and quality is competitive in a dynamic market and the organization is adaptable to internal and external changes and accepts change as normal in their culture in its internal processes and how to do things in a cost effective and innovative manner.
As mentioned above as the role of leaders is to give where the organization to be in the future and how to get there the leaders will provide the staff a clear direction to meet the organizational goals by identifying the processes and products which will maximize the value of the company on a consistent basis there fore be competitive in a dynamic and changing market in America and internationally. There fore the values, beliefs and the culture will determine the acceptable leadership style, which will enhance innovation, improve product quality, reduce waste, control costs and motivate staff to achieve higher
Standards of performance by encouraging individual and team commitment and continually improving production processes and the organization of work. in Nike so that
Nike as an organization meets its objectives on a consistent basis in the short, medium a in the long term and to grow in a sustainable manner in the future.
Knight made the organization have the appropriate values and beliefs and assumptions which will permeate through the organization so that all the levels of management and staff have a culture which makes decisions in a manner to be quality conscious and improve quality and organize, motivate, plan to innovate new products and improve the quality of existing products so that it meets customer needs as quickly as possible at a reasonable price with requisite quality and make the organization flexible. He also instilled entrepreneur leaders in the organization and introduced an informal control system in the organization as well he built and encouraged teamwork within the organization to make quality decisions and increased the speed of decision making by making the organizational structure flatter and an organizational structure which is flexible and adaptable to changes in the internal and external organizational environment. By implementing all these changes he has changed the organizational culture.
NIKE. (2005) Annual Report, Retrieved March 14, 2007, from http://www.characters.nl/downloads/2005_Nike_annual_report.pdf