The global corporate leadership involves the corporate managers that are located at the Oregon, USA headquarters. They are the top of the hierarchical decision-making pyramid, such as the decisions involving the research, product development and design of their products. For the semi-autonomous geographic divisions, the company ' s operations are divided into segments based on regional markets, these divisions include; North America, Western Europe, Greater China, Central and Eastern Europe, Japan and other emerging markets. The main reason for introducing an additional layer of hierarchy on a regional level is to reduce complexity and enhance transparency throughout the group. The company tries to establish flat hierarchies, for effective communication throughout the organization. As for the global divisions for Converse and brand licensing( subsidiaries), one global division is responsible for managing the worldwide operations of Converse, which is another footwear brand and subsidiary of Nike Inc. Another global division is responsible for licensing the Nike brand. This characteristic of the organizational structure offers control for brand licensing and the operations of Converse. The subsidiaries enjoy some autonomy within clearly set boundaries. Projects exceeding the limits set by the regional headquarters or global headquarters do not need approval of the region. Therefore, operational country level decisions can be taken by the subsidiaries themselves.
When it comes to communication, Nike, Inc. can be considered to have closed boundaries as indicated previously, the company is very secretive in what they do, however they do make attempts tp try and communicate some information to the external environment. They have ongoing dialogue with outside parties which includes the talking about the company ' s challenges and successes. Nike communicates its progress to its stakeholders, through its website, www. nikeresponsibility. com, and quarterly electronic newsletters. Nike also engages in stakeholders directly through one-on-one meetings and other forms of collaboration. Its first formal stakeholder forum was held in February 2004. They support the Global Reporting Initiative( GRI) as an Organizational Stakeholder. On nikeresponsibilty. com, Nike addresses issues and initiatives related to workers and contract factories that make Nike-branded products. Nike monitors workplace conditions in the factories through a series of internal audits done by their Compliance staff and in addition to the internal monitoring a selection of their factory base is subject to external audits by Fair Labor Association.
Internally, Nike treats its employees as if they are a part of an athletic team as such, they are motivated as how an athletic team would be and many athletic metaphors are used within the organization. The organization members are players on the team and the head coach is Phil Knight. Knight is introverted and so he at times avoids direct contact with employees. Through Knight ' s communicative leadership which may be considered visionary, he indirectly communicates freedom to his employees allowing them the independence to experiment, take calculated risks and strive for innovation. He trusts his employees and this is displayed through his " lack of communication " at times. He believes that employees should be able to see what they can do in their own divisions and if they come up with something great or have a great idea then open and meaningful communication can take place. Within the Nike Organization communication acts as an exchange, an exchange of ideas, thoughts, actions, messages and orders between people.
As for management and the board, there are five regularly scheduled meetings of the Board each year. Meetings may be held in locations that present opportunities to expose the Board to various facets of the Company ' s business are related to other Company business, or connected with a shareholder meeting. The board of directors also the Board engages in a regular dialogue with the Company ' s Chief Executive Officer and other members of the senior management team. The Board regularly reviews with the senior management team the Company ' s long-term strategic business plans and other significant issues affecting the business of the Company. The frequent communication amongst management and board members assist in the company staying up to date with what is happening internally and externally, so that new strategies and policies may be put in place for the organization to stay on top.
Overall Nike, Inc. can be considered a powerful example of excellent corporate culture. The company has managed to embed their core values into the mind of their employees and has given them the feeling of value within the team. They have built the company to thrive on continuous innovation and has created a feeling of openness not only for their employees but their consumers as well. As one of the giants in the global athletic shoe, apparel, and equipment market, Nike Inc. continues its policies and strategies to promote an organizational culture that reinforces business resilience and competence.