When Nikkei CEO Phil Knight stepped down and handed his Job to Bill Perez, he stayed on as chairman of the board. In what ways could Knight's continued presence on the board have created an informal structure that prevented Perez from achieving full and complete leadership of Nikkei? Answer: Informal structures are the set of unofficial relationships between organization members.
Potential advantages of informal structures:
- Helping people accomplish their work
- Overcoming limits of formal structure
- Gaining access to interpersonal networks
- Informal learning
When knight remained on the board, old communication relationships may have survived his departure from the CEO position, cutting Perez off from valuable information. Knight's access to the informal communication network may have worked to spread rumors to Knight and back down the communication chain.
These rumors may have
...contained inaccurate information, caused resistance to change and distracted members from their work. This may have reinforced Peeper's position as an outsider.
Discussion
Given the problems Nikkei has had with sweatshop labor being used by mom 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. Mechanistic designs are highly centralized and bureaucratic with an emphasis on command and control.
This might suggest that mechanistic designs are appropriate for manufacturing in foreign countries. Organic designs are adaptive, decentralized and tend to respond to change more quickly. This would probably be a good fit for an organization that has far flung operations in different countries with different ultras that try to respond to rapidly changing technology, fashion, customer demands and economic conditions. Nine's manufacturing subsystem shoul
be run with mechanistic rather than organic so as to protect the image brand and its Orlando ageless.
Design is could be one competitive advantage so it is important that the manufacturing of the products are conformed to the original ideas of the maker, uninfluenced by any other factors involved in its manufacturing process. Example of this idea is the use of differentiation strategy of companies to main competitive advantage and also put standardization of the qualification of the labor being used.
The network structures use information technology (IT) to link with networks of outside suppliers and service contractors. This outlines Nine's efforts to outsource many Non-executive responsibilities to reduce overhead. In addition to outsourcing production, the research and marketing business centers listed in the case could be part of a network structure.
Other functions may include design, advertising, licensing, compliance sports and entertainment marketing.
Further research
Gather information on Nikkei recent moves and accomplishments, and those of its rivals. Are the firms following the same strategies and using the same structure to support them? Or is one doing something quite different from the others? Can Nikkei stay on top, or is some other firm destined to be the next industry leader?
Answer: The advertising strategy differs from company to company. Generally, Nikkei believes in spending 5-7% of its revenues in advertising and endorsement. Nikkei has planned o spend $4. 2 Billion until forgo endorsements alone. With the huge size of Nikkei, it is tough for other companies to allocate a big amount for their marketing expenses. Moreover, Nikkei has always an edge when it comes to advertising and marketing.
Nikkei has a wide range
of products ranging from athletics to life style and also indifferent price ranges. Therefore, it is always a challenge to fight against brand dilution within Nikkei. The following gives an idea of the customer's perception of the brands: Company Nikkei,branding message and strategy, athletic, influential, outgoing, aggressive, hi tech, futuristic, retro cool american way of living, associated with athletes at top of their sport to bring inspiration and innovation to athlete in world.
Rebooks are comfortable and casual, and the Aids brand boasts superior performance and is "perceived as a professional, technically orientated brand with strong European roots. Nikkei fields some of the best in class technological practices and has a few patents to its credit. Nikkei emphasizes on these and has developed a lot of new rodents with use of high technology and sophistication. An example of that is the microprocessor shoe to give great experience and comfort to the customer.
However, Aids is also working on high tech innovations to provide high quality shoes. Lately, Aids and Nikkei have been doing entertainment based marketing campaign by forming alliances with technology/entertainment companies. Nikkei had an alliance with Apple to sell Nikkei shoes with Apple pods while Aids tied up with Microsoft to sell Aids goods with Microsoft Oxbow gaming systems. So far the success of these alliances is yet to be quantified. Nikkei follows a 100% outsourcing strategy. Most competitors follow the outsourcing strategy.
Exceptions to this are New Balance and other smaller players. New Balance claims that 75% of its production is from the US and other small companies produce in the US as well. In general, Nikkei might still be the industry
leader if it compensates its weaknesses in organizational structures welt deterrent strategies sun as tousling on innovation and development, following differentiation and pricing-based strategies, and investing on sustainability research.
References
- http://www. Nikkei. Com/pH
- http://en. Wisped. Org/wick/Nikkei,_Len.
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