Nike's structure supports its strategy through a network of designers, advertisers, public relations firms, and subcontractors who manufacture the products. Nike spends the most on advertising compared to competitors like Adidas and Reebok. To address criticisms of outsourcing and supplier practices, Nike developed a code of conduct for contractors requiring minimum wages, maximum work hours, minimum age limits, and safety/environmental standards. Nike is also a member of the Fair Labor Association and has a spokesperson to respond to criticisms. If creating a new athletic company, the document's author would consider both adopting Nike's outsourced network structure and a different approach, since Nike dictates tight controls

2. 1. Does Nike’s structure
adequately support
the firm’s strategy?
Yes …

3. Nike
corporation
Designer Adv PR Subcontractors

4. Nike
corporation
Designer Adv PR Subcontractors

5. Head design (First) :
Honcho, John R. Hoke III
Task : encourage designers to
develop environmentally
sustainable designs.

27. Nike
corporation
Designer Adv PR Subcontractors

28. -TNS Media Intelligence
-Nike 85$ million
-Adidas 47$ million
-Reebok 26$ million

31. 2. Has Nikely done an
acceptable job in addressing
the criticisms of its
outsourcing and the practices
of some of its suppliers?

34. Nike formulated a code of conduct for its contractors and
have to be applied in all factories producing Nike products
-It includes recommendations for minimum wages (as set
in the host country)
-Maximum working hours is 60 per week
-minimum age for workers of 16 years old
-a ban on forced labour and minimum safety and
environmental standards
-Nike also repeatedly referred to its membership of the Fair
Labor Association (FLA)

37. Nike
corporation
Designer Adv PR Subcontractors

38. spokeperson task was to answer
all ktritik or as a bridge between
companies and suppliers,
consumers, etc..
completed (answer) all the
criticism well.

39. Nike does not manufacture its own products. It
only designs and markets them. About 550,000
workers are employed in 700 factories in 50
countries to make Nike products, the majority in
Asia.
it contracts the work to various factory owners.
Nike say it is in the business of "marketing"
shoes, not making them. However, Nike dictates the
terms to the contractor: the design, the
materials, the price

40. 3. If you were charged today with
the task of creating an athletic
apparel company comparable
to Nike and were given the
budget to do so, would you
adopt the same networked
structure as nike? Why or why
not?