LO1

Throughout the world, Nike has established itself as a brand that caters to both men and women
who are interested in sport and athletics. Because of this, it is greatly influenced by the level of
diversity in its workplace. Discrimination, bias, and other challenges arise because of the
company's diversity. As a result, Nike places a high priority on fostering a diverse workforce. To
show its commitment to fostering a diverse work environment, the corporation established an
office of Global Diversity. The management of this variety also necessitates purposeful action.
When it comes to Nike, one of the most important external factors is the garment industry's
constant innovation and originality. Keeping up with the changing trends, fads, preferences and
fashions of customers requires Nike to increase the turnover rate of its stock. The change in
fashion necessitates a shift in the company's custom or specialised processing, which has a
significant impact on its sales. For example, Nike has partnered with Apple to bring sports and
music together, giving fans a fresh perspective on the brand. As a result of innovation, a
company's business has both favourable and unfavourable outcomes. Associations can be
viewed as groups or designs that have been put together with the sole purpose of reaching a
specific goal or goal. Many different types of organizations exist in the modern corporate world,
each serving a certain purpose and catering to the needs of the social order in which they operate.
Examining an organization's goals and rationale is the most widely accepted approach of spotting
associations. Some organizations exist just to benefit its members, while others serve a greater
good by promoting social causes or contributing to the general well-being of society.
Accordingly, it is possible to distinguish between revenue-driven groups and non-legislative
organizations based on this fact (NGOs).
Revenue driven Organizations

A revenue-driven association can be described as any corporation, firm, or organization whose

primary goal is to generate profits. These private organizations, which are often referred to as
"organizations," are run by individuals or groups of individuals rather than by the state or
government. Even if such is the case, it doesn't mean that the government has no authority over
these organizations. They are reliant on the legal and financial framework established by key
state specialists. To ensure the company's food supply, the profits generated by these associations
are typically re-invested in the firm, with any extra advantages being distributed among the
business's financial backers or investors, depending on the legality of the association's structure.
They operate in a wide range of industries, including design, innovation, cuisine, and retail,
among others.
Not revenue driven Organizations

Not-for-profit organizations are ones that do not exist solely for the purpose of making money.
They can be distinguished from revenue-driven associations on the basis of the fact that their
primary motivation is not for entrepreneurs to gain private advantages but for the greater good of
the community. Foundations and social enterprises can be included in non-profit organizations
that are not revenue-driven. Despite the fact that some of these organizations may engage in
economic activities, the revenues produced by these activities are used to further the cause they
support, and the advantages of these activities are not passed on to their members. Not-for-profit
organizations are typically non-profit organizations that do not charge for their services and
instead rely on donations, sponsorships, and other similar sources of funding. They typically
work in fields that need precision, reasoning, or instruction.
Non-Government Organizations
Non-government organizations, or NGOs, are non-profit organizations that operate
independently of the government or state. Despite the fact that they may get official funding in
the future, NGOs operate independently of any public authority figures. The World Bank
categorises non-governmental organizations (NGOs) into two distinct groups: functional NGOs
and advocacy NGOs. Non-governmental organizations that are primarily concerned with the
development and implementation of projects aimed at improving existing conditions are known
as functional NGOs. Each meeting may have a variety of non-governmental organizations
(NGOs). An NGO is a non-profit organization (NPO) that aims to improve the lives of people
across the world (semi independent NGOs). Aside from relying on donations, participation fees,
and rewards, non-profit organizations also rely on outside funding that comes in the form of gifts
(SMEs). Supply of labour and products for distinct commercial purposes
Business Enterprises

As seen in the cases above, some links do not pay off. Benefit-age organizations (or
undertakings) aren't required by giant worldwide firms with huge workforces, notwithstanding
this. Size isn't an issue; they could be little, medium, or enormous. A company's size, the number
of owners and investors, its market share (for example, its market share in a certain area), and its
legal status are some of the distinguishing characteristics.

An extra category of businesses is referred to as “small to medium-sized enterprises” or “SME”

(SMEs). Over 95% of all firms in the EU are small and medium-sized enterprises (SMEs). If a
company has an annual revenue of less than EUR 50 million, a workforce of less than 250
employees, and an annual record of less than EUR 43 million, it comes into the category of
"miniature, tiny, and medium-sized businesses (SMEs)," according to the European Union.

The number of employees and money generated are the most essential criteria for small and
medium-sized businesses (SMEs). The number of people hired is less than 10 for small projects
with a turnover under EUR 2 million. Medium-sized enterprises have fewer than 250 people and
an annual revenue of less than EUR 50 million while small firms have fewer than 50 employees
and an annual revenue of less than 10 million euros. As a result of their smaller size, small firms
have access to funding and assistance that is not normally available to larger corporations.
Depending on the country, there may be sequential constraints on the recognition of efforts based
on these data.

When it comes to a company's long-term success, the legitimacy of its structure will play a
significant role. The most prevalent business structures for small and medium-sized firms
(SMEs) include corporations, private restricted organizations, and sole ownership. Many
different legal structures are available for different sorts of businesses: corporations, limited
liability firms, and sole proprietorships
Sole Proprietorship

An official arrangement in which a single individual owns and controls a business is known as
sole ownership (sometimes called sole broker). This means that the entrepreneur is ultimately
responsible for all aspects of his or her business, including its financial resources, because there
is no legal division. It is the responsibility of the firm's founders and owners to take care of any
debts that the company accrues. There is no legal separation between the owner and the business,
and as a result, the owner bears full responsibility for any and all losses and obligations incurred
as a result of the business's operation and may be required to pay them out of his or her own
money or assets. Despite the fact that single brokers have the option of hiring staff, the final
decision-making authority rests with them.

In most circumstances, forming a sole proprietorship just necessitates a minimal amount of

money and time. In the early stages of a project, it's normal for a small business to have a sole
proprietor. Small businesses often have little overhead costs, but if they fail to earn a profit and
continue to accrue debt, the owner is solely responsible for any outstanding obligations.
Associations

Two people are needed to create a company. These groups are linked together through a deed
that symbolises their relationship to one another. Details of how profits will be dispersed, each
partner's investment obligations and losses will be laid out in a written agreement. This means
that the partners of a company like a sole proprietorship are now at risk for all of the company's
liabilities. The deed of association will list all of the co-conspirators' responsibilities under the
agreement.

When a single proprietorship grows into an association, it is not uncommon for the business to
change its name. Co-ownership allows for a more equitable distribution of blame, which is not
possible in a single-ownership system.

Not all organizations are obliged for eternity. More and more companies are using limited
liability partnerships, sometimes known as LLPs. One of the most important things to remember
about these partnerships is that one partner is not responsible for the acts of the other partners.
For their limited commitment to the firm's responsibilities, restricted accomplices may give up
their right to be involved in certain areas of decision-making as compensation. Based on their
distinct fields of work, LLPs are frequently employed by law firms, experts, and other
comparable organizations.
Restricted Companies
Restricted organizations are fused, implying that they are separate legal entities with their own
legal standing, making it impossible to confuse them with their owners. Restricted organizations
in the UK are registered with Companies House as a 'genuine individual,' and they are given a
unique organization number. A constitution should be in place at the time of consolidation so
that investors and CEOs can better manage their relationship. Since an organization is a legal
entity, it is able to own resources, engage in contractual agreements and sue or be sued. It's
important to note that limited liability protects the firm's owners because they are solely
responsible for business obligations based on their initial investment in the company. Limiting a
company with shares or a guarantee is possible. Shareholders of firms limited by shares who own
shares are only accountable for the value and amount of the shares they hold. Individuals known
as 'underwriters' claim organizations that are limited by ensure, whose obligation is limited to a
specific total known as 'ensure' that must be paid if the organization fails to meet its
commitments. For profit companies, the restricted by shares structure is more common, whereas
non-profit organizations are more likely to be restricted by ensure. Private and public
organizations are the two primary types of limited organizations.
Private Limited Companies

Limited liability companies (LLCs) are frequently privately held corporations with a low level of
transparency and responsibility. There are only a few investors in this small, secretive business
(for example 50 investors in the UK). Thus, private limited companies cannot list their shares on
the stock market, as the offers cannot be made publicly. Private restricted companies in the
United Kingdom do not have to have more than one offer at the time of merging because there is
no capital requirement. A private limited company status offers small and medium-sized
enterprises (SMEs) with protection from personal responsibility and decreases personal risk
while permitting them to raise capital via the sale of their products or services.
Public Limited Companies
Restricted obligation organizations (PLC), which can be traded on the stock market without
restriction, have been referred to as public restricted organizations (PRO). There is a base capital
requirement for PLCs (for example £50,000.00 in the UK), unlike private restricted
organizations. Two leaders and an organization secretary should also be chosen, as well as
regular reporting intervals for the yearly returns. A PLC can't exchange its shares in the UK
unless Companies House issues an exchanging authentication and they must include "PLC" in
their name. For example, incentive shares (the right to receive a special dividend from the
company's annual earnings) and redeemable offers (the opportunity to cash out the company's
stock) are examples of PLCs' distinctive offerings (permitting the organization to repurchase the
offers later a specific period). The primary advantage of forming a PLC is the ability to acquire
funds from the general public's purchase of goods and services. PLCs, however, can be
prohibitively expensive for smaller businesses that may have difficulty raising cash elsewhere.

LO2
Organizational structure:

In the words of Alanet al. (2013), organizational structures are influenced by the business

function of the organization since the structure and objectives of an organization are determined

by the role it plays in the customer's life. Goals and an efficient organizational assembly are the

means by which Nike’s. Increases productivity in the company and maintains a decent level of

command in the organization. Serving consumers with their products and services and ensuring

uniformity and control in the company are the primary responsibilities of Nike’s. The Nike’s. can

maintain a consistent level of control and organization through their organizational structure

(Ayyagariet al.2012). As a result, Nike’s projects will go more smoothly if everyone involved

has a strong understanding of their respective roles. Achieving organizational functions can be

made easier by effective creation of true objectives and organization structure, which helps

people understand their position effectively.

Advantages:

Any company's ability to retain collaboration is aided by its employees' relationships with each

other.

In addition, it fosters greater cohesion among personnel and boosts business productivity.
Increased profits are generated as a result of employees from different departments sharing

information.

Disadvantages:

Every branch employee has access to knowledge about the other branch's job responsibilities and

operations, which might be used to hurt the other branch.

It enhances the level of competitiveness among the various functional areas.

Utilitarian Structure Separates Departments

Most businesses have a hierarchical structure based on utility, with several levels of authority at
the top. Office directors report to someone even higher up the chain of command, who in turn
report to someone even higher up the chain of command. If you go with a utilitarian approach,
you'll profit from having a clear division of authority, with a key chief in each office setting the
overall mission and objectives.

Allows each delegate to concentrate on her own task. However, a utilitarian structure for an
organization has its drawbacks. Offices that don't communicate well or participate effectively
can form. Depending on the nature of a customer's issue, he or she may be transferred from one
section to another.
Divisional Structure Has Many Branches

In a divisional design, authority is distributed across several branches. It is important to have

separate divisions for different product offers so that they can perform their respective functions
(e.g. showcasing and R&D). This methodology has the advantage that every division of the
business has the ability to perform all of its essential functions. Basically, each division is able to
carry out its own commercial tasks.

With employees in every section completing identical roles, the risk of repetition and failure
increases. Duplication of capacities, administration frameworks, strategy improvement, and so
on are all consequences of directing five human asset duties rather than a single task.
Network Structure Provides Flexibility

With a network structure, you'll have more flexibility in your business operations than a more
advanced organization. Rather than working under a single administration, each representative in
a framework structure might be assigned to a variety of projects and work with people who have
a variety of capacities. This structure adapts to the shifting demands of the hierarchical structure.
Because of this, it is possible that a framework's hierarchy of leadership will become cloudy and
conflicted.
Imagine With Organizational Charts
If you or your team has trouble visualising a suggested structure, a hierarchical diagram can help
you visualise it clearly. In the nineteenth century, the New York and Erie Railroad promoted the
main authoritative outlines as a way to improve administrative productivity. A graph depicts the
paths of power and control that connect various levels of the board of directors. A well-thought-
out chart will make it clear who makes the decisions, who is responsible for what, and how your
organization allocates its available resources.

Conclusion:
American GDP and consumer expenditure peaked in 2005-06, followed by the greatest financial

crisis in US history. Afterwards, industrialised and developing countries' carbon emission

standards were discussed. But even when things are going well, multinational corporations like

Nike must pay special attention to their steps as they strengthen their control on the entire sector.

The corporation has been severely reprimanded for its lack of knowledge and has paid the price.

In the midst of all of this, Nike has unveiled its 2015 worldwide plan. Nike, Cole Haan,

Converse, Nike Golf, and Umbro are all included in the company's brand portfolio, which has set

a revenue target of $27 billion by the end of fiscal 2015. In addition, it aims to generate an extra

$ 12 billion in cash flows from its current business activities. Nike's revenue share currently

stands at 85 percent, and they estimate that figure to rise to $ 23 billion by 2015. Developing

existing developed markets with low double-digit growth is one of the company's goals, while
aggressive expansion into emerging countries is another. About 250-300 Nike retail stores are

expected to open in the direct selling programme. It intends to collaborate with merchants in

order to provide a better customer experience.

References:
Brand Minds (2021). Nike — a PESTEL analysis. [online] Medium. Available at: https://brand-
minds.medium.com/nike-a-pestel-analysis-a213cbc18ad9.

Edrawsoft. (n.d.). Detailed PESTEL Analysis of Nike | EdrawMax Online. [online] Available at:
https://www.edrawmax.com/article/nike-pestel-analysis.html.

Fern Fort University. (2019). NIKE, Inc. PESTEL / PEST & Environment Analysis[Strategy].
[online] Available at: http://fernfortuniversity.com/term-papers/pestel/nyse4/765-nike--inc-.php.

kusmulyono (2008). Nike Environmental Analysis. [online] Slideshare.net. Available at:

https://www.slideshare.net/kusmulyono/nike-environmental-analysis.

Rowland, C. (2017). Nike Inc. PESTEL/PESTLE Analysis & Recommendations - Panmore

Institute. [online] Panmore Institute. Available at: http://panmore.com/nike-inc-pestel-pestle-
analysis-recommendations.