1. Structure Follow Strategy
Structure Follow Strategy ANNA Franco/Don Gregory/Tony smith University of Phoenix MGT 521 JACK LAND
FEBRUARY 16, 2017
Good Morning/Afternoon/Evening Professor,
Learning Team C will give a presentation today on the Structure that follows strategy.
The members of Learning Team C are ………. If you have any questions during any time of this presentation do not hesitate to ask. We would be glad to answer any questions that may arise during this presentation. Thank you.

2. Introduction
Examining the current strategic objectives of the organization.
Determining the current structure of the organization.
Discussing how expanding to a global market may affect work functions.
Recommending structural alternatives that may facilitate the new global strategy. How do these options differ? What are their strengths and weaknesses?
Determining the key components of a change management strategy for the restructuring.
Recommending the next steps for an action plan.
Today’s Introduction for Structure to follow the strategy is to:
Examine the current strategic objectives of the organization.
Determine the current structure of the organization.
Discuss how expanding to a global market may affect work functions.
Recommend structural alternatives that may facilitate the new global strategy. How do these options differ? What are their strengths and weaknesses?
Determine the key components of a change management strategy for the restructuring.
Recommend the next steps for an action plan.
We will discuss these six steps while discussing our company of choice. Our company of choice is none other than Nike, Inc. Let’s begin.

3. Nike: Current Strategic Objectives
Six strategic objectives
SWOT Analysis
Strengths
Weaknesses
Opportunities
Threats
Nike, Inc. current strategic objectives consist of increasing their market share, strengthening their financial resources, physical resources, productivity, innovation, and action planning. “Nike, Inc. goal is to have over NIKE-branded stores nationwide over the next five years (NIKE, 2010)”. Expanding means increasing their market share. Nike, Inc. is a billion dollar corporation who wants to continue to strengthen their financial and physical resources. Nike, Inc. wants to ensure that productivity, innovation, and action planning are in alignment with one another to ensure staying ahead of the competition, completing goals, and preventing any unexpected issues that may occur.
“Every four years, Nike throws a World’s Fair for sport tech. With rivals old and new biting at their heels, 032c’s Gary Warnett administers a SWOT analysis to an athleisure hyperpower facing an anxious future (NIKE, 2016).” Let’s review the SWOT analysis for Nike.
Nike’s Strengths: Strong Global Brand, Low Cost Manufacturing, Strong Research and Development
-“Systems of dress that even incorporate socks with enhanced grip for a holistic approach to athletic wear (NIKE, 2016)”.
-The presentation for quadrennial showcases allowed minor changes on performance footwear. In 2008 squishy, ridged Lunarlon foam and Flywire sport paved the way for the production of Flyknit construction for the 2012 HTM division. NIKE, Inc. wants to continue producing new and improved athletic socks and footwear for bulky, and padded builds.
-”Floral pattern NikeLab performance line with Riccardo Tisci and a new collection of HTM Air Max releases:” were digitally announced (NIKE, 2016). These basketball designed new releases are “sock-height, Flyknit upgrades of the Hyperdunks” (NIKE, 2016). “Nike’s Flyknit is a billion dollar franchise and has over 500 patents, saving over 3 million pounds of waste compared to conventional constructions” (NIKE, 2016)
-New upgrade in technology for Nike+ app. The app offers personal feed on shopping and fitness.
-Visible Air Technology made its first appearance on 1987’s Air Max. This technology helped Nike win the market war with Reebok. This technology also helps with future designs and special projects over the next decades.
-Low cost of producing products in outside countries ensures that independent contract manufacturers operate multiple factories.
-Strong research, design and development is what Nike takes very seriously and believe are the key factors to their success. Technical innovation has helped Nike produce better and efficient products, enhancing athletic performance and reducing the amount of injuries that have occurred throughout history and time.
Nike’s Weaknesses: Ongoing Perception of Poor Labor Practices, High Prices
-Nike, Inc. had negative customer criticism about the labor practices and work conditions of its employees. Through years of consistency efforts to improve these conditions have changed for the better ranging at over one million contract workers. Conditions have improved yet some developed factories in developing countries have not met the standards of Nike’s requirements. Nike does recognize the low wages for the workers and also the safety issues that arise at certain locations. Nike wants to prevent any disasters at the new location in the Scandinavian market. To set a new standard so other locations will be able to follow suit.
-The high prices are due to Nike’s strong brand. “Nike can typically command a premium on the products it sells, which in turn supports higher margins and profitability. However, the cost of its footwear is higher than most of its competitors, which make its products out of reach for many customers around the globe, particularly in emerging markets. There is also the risk of declining demand when an economy falls into recession, as consumers have lower discretionary spending for non-essential items (Dalavas, 2015)”.
Nike’s Opportunities: Emerging Markets, Innovative Products
-Nike has a dominate presence in emerging markets currently and we believe a significant growth potential is in the mist if Nike taps into the Scandinavian market. Rapid economies that grow, such as China, India, and Brazil, all have the potential for future growth in earnings. Nike wants to enhance its branding image more in these locations. Researching and producing a portfolio that attracts Chinese, Indian, Brazilian, and Scandinavian customers preference and taste.
-Innovative products such as the FuelBand (monitors one’s physical activity), which may not have been as successful as hoped, yet Nike still see’s a bigger picture for the next big projects.
-Nike’s focus on R&D (Research and Development) will continue to rise in the new technologies in footwear and wearable technology.
Nike’s Threats: Competition
-Competitors with apparel, athletic footwear, and the equipment industry are high in competition. Competitors such as Under Armour (UA) and Lululemon (LULU) are diversified with their product as well as Nike seeking to take over the industry of sports and lifestyle apparel, athletic footwear, and equipment.
Let’s go into the next slide to discuss how Nike can help in the Scandinavian market and what the strategic objective would be.

4. Nike’s Strategic Objective for Scandinavian Market
Nike, Inc. Standard Factory
Labor Practices
Work Conditions
Higher Paid Wages
Nike Incorporated wants to utilize the strategic objectives:
Building a new factory that align with Nike’s standards. Throughout years of creating new innovations the company has become under close scrutiny. Nike wants to ensure that with the Scandinavian market that there lies a new beginning for setting the standard. Nike wants to ensure that our Scandinavians’ are happy with how they work, the working conditions, and effective safe labor practices. Nike does not want any potential disasters that could harm any employee that is contracted to work. Nike promotes safety, practices safety, and will enforce safety so that everyone goes home to their loved ones safe and sound without injury.
Nike wants to ensure that the Scandinavian contracted employees are received substantial amount of pay to take care of their family, because Scandinavians believe and practice that FAMILY comes first. We want to employ both men and women for this type of atmosphere to ensure equality. Nike understand that happy employees means a safe environment, eager employees, and increased sales of product due to proper assembled innovations.
NIKE KNOWS WHEN TO COMPETE
“When Nike is innovating to gain a competitive edge, we focus on building innovation partnerships, investing in start-ups, emerging technologies and new science. We test and prototype solutions, and then take them to market” (NIKE, 2016). With the Scandinavian market we will ensure this very aspect to succeed.
WHEN TO COLLABORATE WITH THE SCANDINAVIAN MARKET
“When we see opportunities to create industry-wide change, we drive market shifts through sharing, open-sourcing, and creating coalitions and consensus. We work to influence standards and policies to drive innovation forward (NIKE, 2016).” NIKE, INC.’s motto is to “JUST DO IT” and they can succeed if they put the effort forth and collab with the Scandinavian market.

5. Nike: Current Organizational Structure
Diversity
Abilities and Limits
Inclusion
Leadership
Nike Inc.’s organization structure shows the abilities and limits of its operations. For Nike, organizational structure focuses on the need to address the diversity of the markets. With such focus, and such diversity, the organizational structures had made adjustments to deal with the great differences in the market. Is with this inclusion and interconnections of workforce, and business’ divisions, that Nike has created a competitive advantage in the Athletic Footwear, apparel and equipment industry. Such Leadership is recognized globally and used and applied to all levels of the business in such diverse market. Such structure provides Nike with the flexibility to adapt to consumer’s request fast and effectively.

6. Nike: Current Organizational Structure
Geographic Divisional Organizational Structure:
Global Corporate Leadership
Semi-autonomous geographic divisions
Global division for Converse and brand licensing
Organizational Structure:
Advantages
Disadvantages
Global Corporate Leadership. This organizational structure involves corporate managers. With Headquarters located in Oregon, USA, these managers are the ones with the decision making power for the global structure of the company. This way decisions are easily implemented throughout the organization at a global scale. Here we present you the leadership groups that are directed by President, Vice President, or Chief Officer:
Office of the President & CEO, Nike, Inc.
Nike Brand
Finance
Global Human Resources
Product & Merchandising
Administration & Legal
Global Sports Marketing
Operations
Semi-Autonomous Geographic Divisions. A major characteristic in Nike’s organizational structure are Geographic divisions. The segments are divided in regional markets. Managers are empowered to find ways to maximize operations in several markets. The company’s organizational structure is the following:
North America
Western Europe
Central & Eastern Europe
Greater China
Japan
Emerging Markets
Global Divisions for Converse and Brand Licensing. The two global divisions within Nike are Converse and brand licensing. Converse is a subsidiary of Nike, and as such there is a specific division that handles all operations for Converse. The second division is the one in charge of the Nike brand licensing. These two global divisions offer control to brand licensing, and Converse operations.
Organizational Structure: Advantages and Disadvantages:
Nike’s organizational structure promotes growth and stability, with such control, Global corporate leadership is effective and a great advantage for the company. Geographic divisions give also a great deal of flexibility to the structure, and the ability to be able to adapt to consumer demands fast. The one disadvantage is Converse, and the limited managing of the division. The current structure of Nike, makes it hard to have a better approach in this particular division.

7. Expanding to a global market may affect work functions
Accounting: Different countries required different accounting reports according to norms, bribery and corruption.
Business Development/ Sales: Different ways to do business according to the culture of each country, else there are different compensation structures.
Customer Support: Different languages, customer expectations and technical resources to access service information.
Finance: Money exchange mobility, repatriating profits and access to financial and banking services.
Human Resources: Bilingual staff to coverage language skills, employee polices and training to meet company standards.

8. Structural Alternatives to Facilitate The New Global Strategy
Develop a strategy and Business plan according to each country economy, culture, governmental and market situation.
Establish a local team with expertise in global companies.
Legal Readiness
Tax and finance readiness
Stablish a Go to-Market strategy to accomplished sales strategy, sales delivery, branding/value proposition, marketing strategy, marketing programs, and pricing to generate market acceptance and revenue growth.

9. Key Components of a Change Management Strategy
Identify The Challenges
Analyze & Assess the state of The Change taking effect
When Implementing an effective change management strategy, is imperative that one first identify the obstacles that may come between the organization and the goal of change. Will the change face hardship due to employees inability to accept change? Will change be difficulty based on lack of finance? will leadership be capable of enforcing change? Another task that demands attention is creating an effective change control policy that identifies and defines the actual new standard taking place. Policy should include time of implementation, expectations and acknowledgement of the authority who authorized the change. Managers should analyze and assess the change taking effect, how is it impacting work function and if change is actually taking place. Finally leaders should provide feedback on strengths and weaknesses of the changing process and reestablish standards until it has become work function culture.
Create A Change Control Policy
Provide Feedback

10. Recommended Steps for Action Plan
Analyze the Scandinavian Market (Trends, Economy, Customer Culture)
Meet Scandinavian Government Business regulations and policies
Create a Project Plan within an affordable budget highlighting time sensitive dates and deadlines
Form Partnerships and Alliances with Scandinavian business and media
Launch Project Plan
Evaluate Sales/Reception & Strategize Accordingly
The purpose of an action plan is to turn innovation and ideas into a successful reality. In order for this to happen the following must be considered
When conducting an action plan budget, time deadlines, organizational partnerships should be established and international business policy regulations should be followed. Project plans should be realistic and supported by a capable budget, success rates should be analyzed properly to ensure profit.
These recommended steps are key in ensuring Nike’s successful launch into the Scandinavian business market (Evans, 2017). 

11. References
12 elements for successful change management . (2016). Retrieved from
Ball, D.A. et al, (2003), International Business: The Challenge of Global Competition - ninth edition, Boston: McGraw-Hill/Irwin, p. 478 Kotler, Ph. et al., (2009), Marketing Management – European Edition. Harlow, England: Pearson Prentice Hall Publishing, pp
Contemporary Management. (2015). Retrieved from
Dalavagas, J. (2015, March 24). Nike: Analysis of Strengths, Weaknesses, Opportunities, Threats. Retrieved from Guru Focus:
Divnil. Nike Logo Wallpaper. Nike Logo. Divnil, Los Angeles, California. Retrieved October 06, 2016, from
Evans, M. (2017). 10 Key Steps To Expanding Your Business Globally. Retrieved from
Foglio, A. And Stanevicius, V., (2007), Scenario of glocal marketing as an answer to the market globalization and localization. Vadyba/Management, available online at:
Hall, D.J. and Saias, M.A. (1980). Strategy Follows Structure! Strategic Management Journal, Vol 1 No 2 (April-June 1980)
NIKE. (2010, May 04). NIKE, Inc. Introduces 2015 Global Growth Strategy. Retrieved October 05, 2016, from Nike Inc. :
NIKE. (2016, October 05). Sustainability has become a game-changer for NIKE. Retrieved October 05, 2016, from Nike, Inc.:
Nike's Vision. (2016). Retrieved from
Sofia. Nike's. Magic Nikes. Sofias Project, Denver, Colorado. Retrieved October 06, 2016, from
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Warnett, G. (2016, March 22). Nike in 2016 – Strengths, Weaknesses, Opportunities, Threats. Retrieved October 5, 2016, from 032c:
What US Companies can learn from Scandinavia. (2016). Retrieved from
Sources