...MBA FIRST YEAR 2012 MBA 8105 – ORGANISATIONAL BEHAVIOUR LEADERSHIP CONUNDRUM: NIKE AFTER KNIGHT Prepared by Narendra Hirani Registration Number MBA/2443/12 April 2012 1a) Discuss and evaluate the appropriateness of the leadership style adopted by Phil Knight. Philip Knight’s leadership style can be analysed using the various leadership theories that have been developed. Their appropriateness can be evaluated based on the information available in the case study. Rensis Liekert developed four systems of leadership, exploitative autocratic, benevolent authoritative, participative and democratic. Knight’s leadership style at Nike can be described as democratic as per the systems developed by Riekert. According to Riekert, the characteristics of a democratic leader are: * Has complete confidence and trust in subordinates; * Allows subordinates to make decisions for themselves; * Motivates by reward for achieving goals set by participation; * Shares ideas and opinions. In the case study, we note that Knight’s style of management is “hands-off”. This illustrates that he does not closely supervise his employees, but has confidence in their ability to do their jobs and make decisions which shall be in the best interest of the company. In the case study we are also told that Knight used to maintain silence on most business issues and this was interpreted by his executives as approvals to their approach and thus they took the liberty to carry out their responsibilities...
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...Unit 5013V1 – Leadership Practice Task 1 A.C 1.1 – Discuss the concept of managers as effective leaders For a manager who leads a sales department in a medium sized construction materials company there are a number of responsibilities. These evolve around setting direction, motivating and inspiring the team and individuals, and co-ordinating workload and outputs. In order to manage effectively they would use the following methods/behaviours based around the key functions according to Henri Fayol; * Plan and make forecasts * organise work and schedule * co-ordinate the team/individuals * set tasks/give instructions and detail * monitor progress In addition, these management methods and behaviours are combined with a number of leadership functions which include; * Building a vision * Inspiring others * Motivating and empowering * Develop trust (with-in your team/sub-ordinates) * Looking at the bigger picture * People – knowing who they are Whilst these functions and behaviours appear as separate lists, Colenso (1997) identified that if executed with the correct balance the functions of a manager and leader can complement each other in order to deliver the desired result. Further-more, although there are two sets of skills/functions it must be recognised that it is most likely that the manager and leader are the same person. Therefore a combination of both sets is required in order for that person to be an effective manager and...
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...marketing strategies applied by Nike Air Force 4.1 Challenges Forcing Nike to Focus More on Marketing Sportswear is defined primarily as apparel and footwear made for sports participation, though is now also includes casual clothes worn by people for daily activities (E. Ko, C. R. Taylor, et al., 2012). The sportswear market is one of the most price-competitive markets throughout the globe. Within the UK, items of sportswear are purchased by almost 90% of people under 35 years of age, and by 76% of the population as a whole (Mintel forecasts, 2006). The international sportswear market is worth nearly 41.5 billion US dollars at the wholesale level, with Nike, Adidas, as well Reebok comprising some 14% of this market (Jeroen, 2004) and more details are shown in Figure 1. International Athletic sportswear market: Share by brand in Millions of US dollars (Source: Sporting good intelligence, 2003) 4.1.1 Overview of sportswear industry through Porter’s Five Forces analysis Before the study regarding the marketing strategy of Nike Air Force, it is important to have a clear view of sportswear industry as a whole. Based on Porter's Five Forces model, the general characteristics of the industry can be described in the figure as follow. Based on the analysis, it can be concluded that the sportswear industry as a whole can be characterized as competitive and easy for new entrants. Such truth has raised challenges for existed companies, such as Nike. In addition to that, customers...
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...Gloryanna Diaz Professor Sailer Ethical Leadership Assignment In today’s society people are becoming more accepting and welcoming. As a young business women going into the field of Marketing and Advertising, I have noticed that business leaders are being faced with much ethical dilemmas. For example, Nike and their decision to drop their endorsement deal with Manny Pacquiao. Mr. Pacquiao publicly announced his position against gay activity and compared homosexuals to animals, Nike came to the conclusion to stop all endorsements. Even after Mr. Pacquiao apologized for his words on Twitter, Nike stood behind their decision. This is a big deal for Nike because they do not have the best record of handling athletes who are involved with scandals. After Tiger Woods scandal Nike released an ad campaign featuring Woods comeback. Also, Kobe Bryan kept his deal with Nike even after his sexual assault charge in 2003. Nike was valuing money, and making lots of it of off their negative endorsers scandals. They had one goal and one goal only, and that was to make money. They used their referent and legitimate power to convince people that promoting the scandals of their athletes was a money making marketing strategy. Being the top dogs in their industry and having one of the best marketing tactics there are, Nike took full advantage and got away with this negative endorsements. They were trusted and respected as leaders and gained referent power through out the years, making it difficult...
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...culture implemented within a business can be seen as detrimental to the reasons why a business appears to have acted illegally or unethically. For example, huge corporations such as Nike who have obtained and implemented a type of organisational culture which is based on the power sub-type of organisational structure. Power is a type of organisational structure and means that power and decision making within the firm is delegated between just a few individuals. Centralised organisational structures are also associated with businesses that a implement a power sub-type of organisational culture. Businesses such as Nike and GAP that have acquired an organisational structure like the above sort, are implemented in scope to generate substantial profits. Firms that operate solely to generate abnormal profits are considered much more likely to take part in illegal or unethical practices, partly due to the fact that these firms are highly focused in cost minimisation. Consequently, cost minimisation can lead to the participation of firms into illegal or unethical practices, thus meaning that firms such as Nike, GAP and Primark are much more likely to be found involved within these practices due to their business attitude of cost reduction and profit maximisation. My evidence to back this up consists of Nike and GAP both having been caught out using a factory in cambodia which breeches their own strict codes of conduct and anti-sweatshop guide lines. The BBC discovered...
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...Founded in 1962, by Bill Bowerman and Phil Knight as a partnership under the name, Blue Ribbon sports, now named Nike Inc., is a $10.7 Billion brand and is arguably the most valuable brand among sports businesses. Consistently ranked one of the best places to work, Nike has created a corporate culture rich with employee loyalty and team spirit. Keeping with the sports theme and culture Nike’s red swoosh is all throughout the company facilities, the corporate head quarters is called campus, employees are called players and coaches, and the meetings are even called huddles. Nike asks it players (employees) to work by two principals above all others, “Honesty first, and competition second. Compete with yourself not your colleagues.” Nike’s leadership and top management style can be characterized by the team management approach. This style of leadership leads to relationships of trust and respect. As the website states, “At NIKE, Inc., we believe that a talented, diverse and inclusive employee base helps drive the creativity that is central to our brands. Our employee base includes a broad range of functions and roles globally, from brand and category experts to footwear designers and retail workers, from specialists in logistics, customs, tax and trade, to distribution-center managers and many, many more.” (nike.com) Adidas is a German multinational corporation that designs and manufactures sports clothing and accessories based in Herzogenaurach, Germany. The company was...
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...Different leadership styles on motivation………………………….P 2 3.2 Application of motivational theory within the workplace…………………….P 3.3 Usefulness of motivation theory for Managers using real organisation………P 4.1 Nature of groups and group behaviour……………………………………….P 4.2 Factors which promote or reduce the development of effective teamwork….P 4.3 Impact of technology on team functioning…………………………………..P 4.4 Conclusion……………………………………………………………………P 4.5 References……………………………………………………………………P Task 3 3.0: Introduction Leadership has a direct cause and effect relationship upon organisation and their success. Leaders determine values, culture, change tolerance and employees motivation. Effective leaders create management systems that enable their employees to produce quality products and services. In today’s changing global marketplace, leaders must be able to assess situation accurately and respond quickly. To choose the right leadership style in specific situation, can help a leader to manage the changes in the organisation and influence those around them. An organisation can use from four leadership style to managed those changes. 3.1: Impact of Different leadership styles on motivation. In a business word, there are different ways to lead a company, but also every leader has his own style for leading. The most basic leadership styles include: autocratic, democratic, laissez- faire and bureaucratic. -Autocratic style- manager...
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...Leading Nike's maverick attitude towards the business world extends to its leadership style which is based around three broad principles. * First Principle: Brand positioning This authenticity plays out in Nike's corporate values and in the way it runs the business. When Nike began under the name of Blue Ribbon Sports, it was structured around University of Oregon coach Bill Bowerman's work with a team of average track and field athletes. His approach was to develop the talent at hand through motivating, inspiring, challenging, and teaching. It worked. Bowerman created star athletes, including renowned long-distance runner Steve Prefontaine. This talent-development method has its parallel in Nike's corporate environment. "You look for pockets of excellence, and where you don't find them, you create them," said Blair. The first Nike employees were not selected on the basis of excellence. Most of them were friends of friends, but once they were hired they were transformed from average people to outstanding performers who helped shape the company. To achieve these kinds of results, Nike focuses on innovation, creativity, and energy which are now "part of our brand and our organization," said Blair. "The athletes we have worked with, like Prefontaine and John McEnroe, are in many ways counter-establishment athletes. Nike embodies much of that same spirit. We cultivate a culture of the rebel and celebrate those who go off and do what some say can't be done." * Second Principle:...
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...strategic and operational advantages. In order to make a successful investment decision, financial managers must understand that it is a process that involves risk management, strategy, and timing. Essentially, the investment must offer a competitive advantage, have long term economic prospects, and most importantly produce an increase in the firms bottom line. Nike is leading publicly traded company of which a financial managers decision to invest would be highly beneficial. Over the past 5 years, Nike has recorded a growth of 200% in its stock price. Leading the apparel industry, the sporting goods giant stands on competitive advantages that allow the sustainability of market leadership. Nike’s ability to innovate it’s products and effectively sell the concept to consumers has contributed to making the company a stromg world wide brand. Nike’s intense focus on customer satisfaction has also contributed o the company’s competitive advantage. Nike is currently the leading athletic apparel company in the world. In the last quarter of 2014, Nike reported a 17% increase in revenue on a constant currency basis. Nike has over 750 retail stores around the world, with continuous increasing sales in most geographic regions. The company also has joint counts with converse, Jordan,...
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...Study Analysis on Nike Corporation sachin bakshi Uploaded by Sachin Bakshi top 0.5% 5,126 Download DOCX Case Study Analysis on Nike Corporation 1. Introduction History Nike is a major US footwear, clothing and sportswear supplier based in Beaverton, Oregon. The company operates in more than 160 countries and employs over 44000 people across six continents. Nike’s revenue total of $20.862 billion in 2011 with total equity of $9.843 billion. Today Nike is considered the world’s leading supplier of athletic shoes and apparel and one of the world’s most famous and strongest brands. The company was founded in 1964 as a footwear distributor Blue Ribbon Sports by Bill Bowerman and Phil Knight (middle-distance runner from Portland). Initially, the company operated as a distributor for Onitsuka Tiger, the Japanese shoe maker. Most of the sales were made out of Knight ’s automobile. In 1967 the first retail store was opened. In 1972 the jump was made to manufacturing company’s own brand of athletic shoes and the “Swoosh” brand mark was created. The first self- manufactured company’s shoes used Bowerman’s “waffle” design. They became extremely popular among the runners: they had special waffle-type nubs for traction and at the same time they were lighter than traditional athletic shoes. In 1979 Nike Air technology was successfully launched and by 1980 the company already attained 50% of national athletic shoe market. In 1982 Nike started to cooperate...
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...This is a report on how I would develop a social responsibility strategy for Nike (my client): introduction The company that I am going to develop a social responsibility strategy is the Nike Company that was formed in 1962 by Bill Bowerman and Phil Knight as a result of collaboration of the two to come up with the most sufficient athletic shoes after the dominance of German and cheap Japanese athletic shoes in the American market (Almaney, 2000). The company has gained increased sales since it was formed and thus making it a global giant in the manufacturing and sale of sports equipment utilities. The company has faced a number of challenges in its daily administration in the market as a result of stiff competition, imitation, environmental pollution and lack of raw materials. The company in the mean time has managed to be in a profit making trend as it has recorded that highest numbers of sales as compared to its competitors Adidas and Reebok, with Nike commanding 30.4% compared to 15.5% and 11.2% for Adidas and Reebok respectively (Amway, 2013). Environmental considerations and recommendations (planet) This is the first and most important reason for Nike involvement in cooperate social responsibility; is to improve the environment with the statement from the company CEO stating that ‘the world will remain behind when we are long gone and we have to conserve it is for the future generation’. Nike isn’t resistant against any lawsuits on matters relating to environmental...
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...and its members. When any member of the organization notices a problem or issue, it is his or her responsibility to report that problem to other members so that a meeting can be held to handle it swiftly. Our organization handles all problems openly, with all its members, allowing each individual to express their concerns about the problem and then a vote is made. The decision of what action to take to deal with the problem is decided by the majority vote. Compare and Contrast of Decision Making The Decision making process allows managers and leaders, to come up with alternative solution or actions to certain problem. This process takes place at all levels and affects people at all levels of the organizational corporate structure. Nike is an organizations that has incorporated a decision making process in order to improve working conditions to their overseas locations. Nike’s choice...
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...responsibility encourages responsible business practices. To support your evaluation and argument, include an appraisal of how two companies currently promote social responsibility. In order for companies to positively impact their communications with their stakeholders many companies like Nike and Goldman Sachs are continuously seeking new ways of carrying out corporate social responsibility Reeves (2012). The re-developments of corporate social responsibility often derive from responding actively to emerging and current issues in society (REFERENCE). (REFERENCE) describes current issues such as, human rights, labour, and environmental practices that Nike and Goldman...
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...Case Study 2, Under Armour’s Strategy Under Armour is an emerging company in the sports apparel industry whose mission is to “Make all athletes better through passion, science and the relentless pursuit of innovation”. Under Armour was a disruptive innovator in the sports apparel industry by creating sports apparel using synthetic materials as an alternative to natural fibers, such as cotton. This important change in material resulted in a “shirt that provided compression and wicked perspiration off your skin rather than absorb it…that worked with your body to regulate temperature and enhance performance”. This promise to increase athletic performance differentiated it from competing sports apparel companies, but rivals have since implemented synthetic materials into their product lines. This case study seeks to analyze Under Armour’s history, resources, capabilities, and core competencies, business and corporate-level strategies, as well as the general environment and competitive landscape. After careful inspection of these varying areas, the factors contributing to Under Armour’s current success and future challenges will become clearer. The conception for Under Armour began over a year ago when CEO Kevin Plank played on the University of Maryland football team. Frustrated with having to repeatedly change his cotton shirt during practice, he envisioned a shirt whose materials allowed the perspiration to dry quickly, causing the athlete to be quicker, faster, and stronger...
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...Under Armour is a leading developer, marketer, and distributor of branded performance apparel, footwear, and accessories. Former University of Maryland football player Kevin Plank founded the company in 1996. The company sells the product worldwide. Athletes at all levels, from youth to professional, from playing fields around the world wear this product. The Under Armour global headquarters is in Baltimore, Massachusetts. There are also European headquarters in Amsterdam’s Olympic Stadium, and additional offices in Denver, Hong Kong, Toronto, and Guangzhou, China. Kevin Plank began the business with savings and credit cards in the basement of his grandmother’s apartment. Now, the Under Armour is a business that has their products flying off the display racks. The defining moment for the novice company came in December 1999, with the release of Oliver Stone’s film Any Given Sunday. The film featured Under Armour throughout its duration, but the pivotal exposure scene was the locker-room scene with Jamie Foxx and Cameron Diaz. Oliver Stone wanted Jamie Foxx to wear a futuristic-looking jockstrap. Kevin made sure that the logo “UA” was front and center. The company only had 19 employees at the time. Now the employee number has reached 2,200 and the sales now exceed $700 million. As the performance apparel market grew, Under Armour diversified their product offerings, developed different types of performance gear, and ventured into women’s apparel, footwear, and other merchandise...
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