Nike: Organizational AnalysisChoices are made every day by people that includes what brand of cereal to buy from the grocery store to which brand of athletic apparel suites their needs. As an athletic apparel giant, Nike is a globally recognized brand that has products purchased at a high volume 365 days a year.How can a company such as Nike sustain such success within their market? Organizational analysis reviews the development, work environment, personnel, and operations of businesses. This organizational analysis will first delve into the history of the company, to gain a better understanding of how Nike became so successful in the athletic apparel industry. Then we will explore the methods in which Nike can maintain their global success by analyzing the application of models for informing effective business decisions. The use of tools to further analyze business and market data for a better understanding their impact on the sustainability of Nike. Additionally, this analysis will evaluate market structures for decision-making strategies. Lastly, the assessment of individual and firm behaviors and how their relate to the microeconomic framework. History of the CompanyFormerly known as Blue Ribbon Sports from 1964-1978 (2018), Nike, Inc. was founded in 1964 by University of Oregon track and field coach Bill Bowerman and his former student Phil Knight (2018). The first retail outlet opened in 1966 and they launched the first Nike brand shoe in 1972 (2018). In 1980 the company went public two years after changing the name to Nike, Inc.(2018). During the late 1980s, Nike began to expand its business and diversified their product lineby acquiring shoe companies Cole Haan (1988) and Converse, Inc. (2003). They’ve also acquired sports-equipment produces Canstar Sports, Inc. (1994) and athletic apparel and equipment company Umbro (2008). Nike further expanded on their clothing, shoes, and athletic equipment product line by selling sports-technology accessories in the early 21stcentury (2018). Nike had retail outlets and distributors in more than 170 countries (2018).
Supply and Demand It is important that Nike has a fluid understanding of what the exact demands are in their market. A part of that is understanding the supply and demand aspects of economics. Analyzing and understanding the consumer as well as the competition will aide in ensuring the right productsare supplied according to the demand. The graph below shows the continuous growth Nike has experienced from 2005 to 2016. When analyzing where the growth it was found that, “sales of footwear, the company's largest andmost profitable business, rose 8 percent, while apparel sales rose 3 percent” (March 19, 2015). Figure 1.Nike's revenue from 2005 to 2016One of Nike’s greatest revenue gains is through their sponsoring and marketing of professional athletes as well as being the primary uniform producer for the NFL and some collegiate sports teams. Given Nike’s position within the market, it would be beneficial to analyze