1. How does Nike’s choice to retain an in-house arm of advertising agency Wieden & & Kennedy exemplify the concept of organizational style?
The decision to maintain an in-house arm of advertisement agency exemplify the idea of organizational style, makes you take a look at how both business translate organizational design. Organizational design is the process of creating structures that accomplish the business’s objectives and objectives. First taking a look at the text, you analyze the Nike’s mission is to design items that will have an outcome of a favorable image which favorable image will encourage consumers to purchase Nike products.
This reveals you that Nike’s image is one of the most viable and important elements for their company’s success. Which would leave to the following aspects of consumer fulfillment, because without that I might possibly destroy Nike’s favorable image that they make every effort a lot for. Another aspect that plays into this favorable image would be marketing.
Advertising is a crucial element since assists the business display their “consumer-aimed” designs to the public.
“Nike recently spent nearly $2.5 billion each year on marketing.” This book recommendation perfectly shows Nike’s commitment to their favorable brand image. Nike’s present ad agency, Wieden & & Kennedy has actually portrayed this image successfully in the past and presently. This success was program by Nike providing them with “in-house arms” at the Nike head office. By Nike displaying this affection of placing a core factor to their mission of having a positive image and happening them into their head office, embodies the idea of organizational design.
Not just does is embody the idea is gives the advertising company the chance to have access to Nike’s executive officers, all other worker’s that fall under the top-down and bottom-up structures of modification. Which will stimulate Weiden & & Kennedy form to better and individualize marketing strategies and divisional structure for Nike’s mission and function to provide the competitive advantage that they have and make every effort for.
2. Given the problems Nike has had with sweatshop labor being used by some of its foreign contractors, are there parts of the firm that need to be run with a mechanistic rather than organic design? Give examples to support your answer.
In my opinion, Nike should run with a mechanistic design rather than organic. They should do this because when looking at the manufacturing departments that Nike employs it is common knowledge that they companies may not provide nor have the basic necessities that would be implemented by labor laws. Now, seeing that mechanistically control is exceedingly bureaucratic is only proves that this needs to happen within outsourcing departments. Nike should have more restricted limits of control to keep them on task when employing these realities of outsourcing.
The association with sweatshops is a big deal alone, and Nike is being accused of allowing then to be employed within their company. Looking back at the question above, this would impact their mission of having a positive image as a while. Referring to the text: Nike refused and refuted to comments made by the critics. Nike will destroy their mission of wanting a positive image, when being associated with allowing sweatshops and unsatisfactory work conditions. When looking at prevention of this negative image, you would have to go to the employees who watch the outsourcing and construct and organize the business dealing with the manufacturing firms. Like stated before they should have personalized and centralized tasks and authority at all times.
A way they could implement this in there current situation would be appointing Hannah Jones a Nike executive to watch over the efforts of improvements in the factories working and labor conditions. She could do this by simply appointing a position below hers to watch over a specific issue at a time and report back to her. This would give her department power of what is occurring in these manufacturing companies that Nike as a whole has decided to outsource to.
The manufacturing companies involved with Nike’s brand image and business, as a whole should be required to follow Nike’s standards of ethics. When referring back to organizational design, extreme use of supervision is key. Even if Nike were to implement the idea of taking action of supervising every factory to focus of labor issues alone, it would give them the information needed to know if they should be outsourcing with those manufacturing departments. This could lead to the manufacturing departments actually taking that information and collaborating to have well trained and the proper authority to give them the expectations needed.