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Nike culture

  • Know who you are
  • Commit to being you
  • Be control freaks ( in the right ways)
  • Tell stories
  • Nike’s founder- Phil Knight sold shoes in the back of his RV. The clock inside the Winnebago reads 2:59 all day in symbolic reference to a sub-3 hour marathon

Swoosh

  • To keep its reputation: builds a committed force
  • Employees really identify with the company and really believe in it.
  • Workers actively quote the company's maxims
  • The company makes its employees aware of its history
  • The company uses the Winnebago to use as a conference room (according to legend)
  • The waffle iron Bill Bowerman destroyed is kept “like a museum piece”

Symbolic Frame

Political Frame

Challenges

Environmental Concerns

  • dumping and burning of Nike scrap shoe rubber in villages around factories
  • greenhouse emissions of factories
  • carcinogens

  • Scarce resources make power a key resource
  • Goals evolve through negotiation and bargaining of multiple levels of authority
  • Scarce resources and incompatible preferences cause needs to collide within company - matrix structure can cause division
  • Sources of Power: position, control of rewards, coercive power, information and expertise, reputation, personal power, alliances and networks, access and control of agendas, controlling meaning and symbols
  • Society ecosystem –business, government, and public are embedded

Labor conditions

  • began utilizing sweatshops in the 1970s
  • outsourced to China, South Korea, Indonesia, Taiwan, Vietnam
  • workers had long hours (up to 70 a week)
  • low wages
  • employee abuse
  • exposure to carcinogens without any form of protective gear
  • came under fire in the 1990s for selling products made in sweat shops
  • advocacy groups shed light upon issues

Human Resources

  • Code of conduct for factories SHAPE Safety, Health, Attitude, People, and Environment

  • Human resources training
  • workshops & management training, making sure the management has the skills to improve working conditions in factories and reduce impact on the environment
  • modules cover issues on health, safety and the environment (HSE)
  • environmental sustainability and energy/greenhouse gas management

Symbolic Frame

  • addressing environmental and labor issues to maintain a good reputation

  • reputation important to keep employees

  • changes align with Nike's commitment to innovation

Scrap Shoe Rubber

Human Resource Frame

Shoe Factory in Vietnam

Structural Frame

Nike, Inc.

Political Frame

  • Society eco-system

  • Bottom-up political action – trade unions, advocacy groups

  • "The most significant shift for Nike was when we began to sit down with the very people who had been critical of us and started to engage not in a denial conversation but in a conversation on how to solve the problems."
  • operates on six continents, employs over 30,000 people worldwide and has a workforce of over 800,000 workers in contract factories
  • Hierarchy: Global Headquarters --->Regional Headquarters (EMEA)---->Subsidiaries
  • Nike is set up as a Matrix Organizational Structure, i.e. combination of functional and divisional structure
  • multiple lines of authority and some individuals report to at least two managers
  • employees report to team managers who relay the progress report to a department manager
  • each branch consists of it’s own department and has separate department managers who act independently of the CEO
  • team managers and employees make decision regarding specification and production while department managers focuses primarily on policy-related issues; employees are entirely responsible to both of these managers
  • Matrix Structure allows Nike to make decisions, be innovative, and react more quickly

  • “At NIKE, Inc., we believe that a talented, diverse and inclusive employee base helps drive the creativity that is central to our brands”
  • Diversity drives recruitment of the most dynamic people
  • Diversity enriches the creativity and innovation that shapes the brand
  • Diversity grows our competitive advantage
  • Diversity heightens the stature and belief in the brand within our culturally diverse consumer base
  • 2006 NIKE, Inc. appointed its first VP of Diversity
  • Councils that promote cultural understanding

Burning of scrap shoe rubber

Structural

  • auditing system

  • hired a staff of 97 people to randomly inspect several hundred of their factories each year

  • After studying the results of the audits, this system has been found to be not as effective as authorities expected - auditors biased

  • Nike has new waste management system - not effective, only recycle foam rubber still discarded at a dump site

  • company invested in teleconferencing technology to cut down air travel

  • advocating for climate energy legislation to reward reductions in carbon emissions

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