Case Study Nike

Nike is the world 's largest sports shoemaker. In the 1990 s, Nike didn’t aware the change of the demand of the consumers. Nike didn 't notice that the function of the sneakers gradually evolved into more the function of the shoes of daily use, such as walking or hiking. Customers prefer the shoes with dark color, can either be worn to work and be worn to sport. Nike 's sales and profits fell sharply in the 2000 s. Nike’s CEO; Phil Knight found he must find a way to reverse company. Nike took over and bought some small professional companies, such as Cole Haan, Hurlay and other shoemakers. After that Nike try to use skills to make shoes more comfortable and revitalize the line of shoes. Knight strived to specialized niche market, like golf,

Allow the people on the spot to decide how best to respond to specific problem that arise. Pill Knight, who is the founder and CEO of Nike, received the advise of the executive who leads for outdoor product division to change the original Nike old way of decision-making. Knight took over and purchased some specialized shoemakers to wide the product line rapidly. Nike started to go into the niche market segment, with many specific shoes, such as football, golf, skateboarding, soccer, etc.

Nike also changed the structure of organization. Nike eventually adopted decentralized making-decision under an organic organization. Making-decision level has changed from a large design department to several independent teams of unique shoes in assigned market segment. This change of the task for each team member provided a good opportunity for designers to focus on their special field and to make decision faster and more accurately. New ways improved the efficiency of make-decision but also met the needs of the

But just like Zairi (1995) assert, the change of organization must be integrated with other aspects of management, such as incorporate the human element of re-engineering as an important consideration. The importance of the management of human resources is that people often feel re-engineering as a threat to their methods of work and their jobs (Zairi, 1995). In this case, Nike decentralized the making-decision, i.e. separate a whole design department to different design units for specialized products. That way is developing each designer’s potential skill to be an expert in the