Social Performance of Organizations: A Case of Nike

Social Performance of Organizations: A Case of Nike
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Social Performance of Organizations: A Case of Nike
The social performance of organizations has become an essential part of an organization’s success. Social performance refers to the outcomes of the deliberate practices and processes of a business in relation to its various stakeholders (Wood, 2018). Organizations thrive when society agrees with their values and practices. According to Cooper (2017), corporate social performance provides society with information about the organization’s practices, thus allowing society to streamline organizations towards a socially beneficial direction. In this paper, the focus will be on Nike’s social performance. The nature and structure of Nike will be discussed, as well as the types of products/ services it offers. Further, the external factors that can affect Nike’s success will be analyzed. Also, this paper will explore the various ways in which Nike’s primary stakeholders can influence its financial performance. Finally, a controversial corporate social responsibility issue will be identified and discussed.
Nature and Structure
Nike is an American multinational organization whose core business involves the design and production of footwear, apparel, and other athletic products, on a global scale. The company’s purpose is to “unite the world through sport to create a healthy planet, active communities, and an equal playing field for all (Nike, n.d.). Further, Nike’s mission is to create innovative sports products through its empowered and diverse team of innovators.
Nike has a hybrid organizational structure that is both functional and geographical. According to Ahmady, Mehrpour, and Nikooravesh (2016), a hybrid structure involves the combination of two structures to allow the company more flexibility. Since Nike operates on a global scale, it has adopted this type of structure to ensure the distribution of work at a global level. First, Nike has a global corporate leadership that includes the Chief Executive Officer, the Global Sports Marketing executive vice president (EVP), Global Human Resources EVP, Chief Operating Officer, and the president of Categories and Products (Nike, n.d.). This structure allows Nike to organize functions such as human resources, operations, and marketing for efficiency. Further, Nike has geographical divisions that include North America, Western Europe, Eastern/ Central Europe, Greater China, Japan, and Emerging Market (Nike News, n.d.). This allows Nike to reach its customers in different geographical areas, although the heads of this divisions report to the head of global operations.
Types of Products
Nike offers several products. While most of Nike’s products are designed for athletic purposes, they have moved to the category of athleisure where people use them for leisure. Nike’s main products include footwear, sports bra, tops and t-shirts, pants and tights, and tracksuits. Nike also offers surf and swimwear, hoodies, jackets and vests, and other non-sport products such as rompers, skirts, and dresses. Further Nike provides its clients with compressions and baselayers, especially for their athletic or physical fitness clients. Nike’s products are designed to meet the needs of kids, men, and women, who are the company’s target market. The company also provides accessories such as hats, backpacks, and watches (Nike, n.d.).
Key Factors in External Environment that can affect Nike’s Success
Understanding the key factors in Nike’s external environment that can affect Nike’s success requires a SWOT analysis. Specifically, the focus will be on the opportunities and threats that Nike faces. Opportunities are external factors that are helpful to organizations as they promote their success. Threats are external factors that are harmful to organizations as they hinder their success (Sarsby, 2016). On one hand, Nike’s greatest opportunity lies in the emerging markets. Emerging markets can provide additional revenue to Nike, especially now that Nike has a general manager who deals with emerging markets. According to Grosse (2016), emerging markets are low-cost countries that can provide organizations with additional cost-savings, thus enhancing their bottom line. Nike can increase its production in emerging markets to reap the benefits of low labor and manufacturing costs. Also, emerging markets provide Nike with new markets where it can sell its products, thus reducing its dependency on mature markets. An increase in sales will enhance Nike’s success rate, especially in the global market. On the other hand, Nike’s greatest threat comes from the high level of counterfeiting in the industry. Nike produces high-quality products that often attract high-end clients. However, Nike’s products are often imitated and sold at a lower price, sometimes. This attracts a large number of customers who want to associate with Nike’s brand but cannot afford the cost. Also, imitat...