Nike Inc.

NIKE Inc.

Transition to Transnationality: A Strategic and Structural Outlook

INTRODUCTION

Overview of the Company

Incorporated in 1968 at its headquarters in Beaverton Oregon, Nike Inc. has grown in leaps and bounds into its current status as the world’s largest and leading producer and marketer of athletic equipment, apparels and accessories (Nike Inc., 2009). The company initially started as a small start-up business known as Blue Ribbon Sports by Bill Bowerman; selling shoes which he imported from Japan, and later forming Nike to produce his own shoes. Nike Inc. since its formative years has grown into an international company with operations in over 180 countries and employing over 33,000 employees directly in its international operations as well as another 5,000 directly at its head quarter offices in Beaverton (Nike Inc., 2009). The company however faces the challenge of transforming itself into a transnational company due to the size and differentiation of its operations in different locations therefore needing an alternative structure to effectively manage the same operational procedures.

This paper will examine how Nike Inc. can successfully transition itself to a transnational corporation so as to effectively manage its potential. A brief overview of the company; its products and operations, the different types of organizational structures and where it currently stands is initially undertaken to better understand the context and help comprehend general information about the company.

Products and Operations

Nike Inc.’s products are as diverse as are its operations. The products widely range from athletic equipment, apparel and footwear to other products for leisure and casual uses. These are primarily targeted and inspired by a sporty lifestyle; however, these are usually determined by their users and are therefore not limited in such regard (Nike...