Global Citizenship > ESSAY > Ryerson University GMS 200 Mini Assignment 2 (All)

Ryerson University GMS 200 Mini Assignment 2

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Mini Assignment 2: Nike Spreading Out to Win the RaceWord Count: 1031 What factors drive Nike’s decision to stick with some form of network organization structure rather than own its manufacturi ... ng operations? As an upmost leader in the athletic industry, Nike has focused on sticking to a network organization structure rather than doing its own manufacturing. The use of a network organization structure involves strategic alliances, in which the company contracts out as much work as possible. While using a network organization structure, Nike can center its attention to its competence and avoid having a hand full of boundless tasks. Nikes core capabilities encompasses product design rather then manufacturing, thus Nike can focus more on its research, inventions, and development strategies with the use of a network structural approach. In addition, Nikes core capabilities also includes marketing which can be seen highly focused on as it is plays a prominent role in North America. Without this structural approach Nike would most certainly have too much to handle and lack on focusing on its core capabilities. The reason why Nike has become a leader in the athletic industry has a lot to do with the level of outsourcing that it has taken into consideration. This allows the company to focus on their core capabilities and stay cost competitive since they can decrease on overhead expensive. As Nike has taken outsourcing to a new level, the company has experts manufacture the shoes to meet the publics expectation of high quality. Ultimately, the use of a network structure and outsourcing allows Nikes to save on expenses and optimize operating efficiency. Moreover, Although Nike is an upmost leader in the athl [Show More]

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