Nike Case Study

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Nike started as an athletic shoe company but has expanded into wearable technology and digital services. It is guided by values like the Agile Manifesto and faces strong competition from other brands.

Nike began as a shoe company but has expanded its product offerings through acquisitions and R&D. It recognized an opportunity in digital services and connected the customer journey through its apps. It has also moved from Lean to Agile processes.

Some employees feel excluded or lack management support. Communication between departments and complex systems can be challenges. Micro-managing, lack of growth opportunities, and bad managers in some areas are also issues.

Capstone Case Study 

Nike : Company Background 

Nike is an American sportswear company founded by Bill Bowerman


and Phil Knight in Beaverton, Oregon, in the US and incorporated in
1967. Its primary business purpose is to design, develop, market, and
sell athletic footwear, apparel, equipment, accessories and services
worldwide.

Nike has evolved throughout its many years of doing business.


One of the factors that has contributed to its success has been a
close connection with athletes, who endorsed company products
and informed product development.

Started as an athletic shoe company, Nike product offerings


have expanded significantly through both acquisitions and
in-house Research and Development.

At the beginning of the 21st century, Nike began offering


wearable technology accessories such as heart rate monitors,
compasses, and fitness trackers.

The company with its famous motto “Just Do it”, has never
stopped innovating. Its leadership recognized a big opportunity
to enter the digital service technology space. It did so by
connecting customer journey points of purchasing products, [Picture caption: Today, Phil Knight serves as a
Chairman Emeritus at Nike Nike.com]
tracking their performance, and training through its Nike App,
Nike Run Club app, and its Nike Training app.
Company Culture 

Every culture is built on a set of values. Nike


is guided by ​11 maxims​, which closely
resemble the Agile Manifesto. Management
at Nike also relies on ​four principles​ that
comprise a manager’s manifesto. These are
to Lead, Coach, Manage, and Inspire.
Despite these principles in place, news
outlets like CNBC ​reported cracks​ in
company culture in 2018, which the then
CEO had to address. Among some of the
issues mentioned was an issue that some
employees were feeling excluded and were
​ nsplash​] 
[Photo by​ ​Ian Schneider​ on​ U
without proper management support.

By addressing some of the leadership and management oversight gaps, Nike now seems to
generally be on the right track. It has a strong 4.1 company score on GlassDoor. This is a digital
job board platform that collects employee feedback and aggregates it into a score. Some of the
recent positive sentiments include statements like the following:

1. “You and your work-life balance matter. Surrounded by people who care. Encouraged to
support the causes that are meaningful to you”

2. “Great company, opportunity, activities and connections.”

3. “Compared to other technology companies, Nike offers a fantastic culture and workplace
environment, driven by great values.”

4. “Competitive and fun work environment.”

5. “Sports, Innovation, great Campus facility, international presence.”

6. “Culture is amazing. Some of the most talented people I’ve worked with. Love going to
work.”

Some of the cons of working at Nike that its former or current employees shared on Glass
Door include the following:

7. “Communication between departments is a struggle.”

8. “Many systems make the process more complicated than necessary.”

9. “Some managers lack the skills or tools to support their teams.”


10. “Very competitive, cliquish, and hierarchy matters.”

11. “Seemed to be a slight divide from managers and employees.”

12. “It's a big, matrix organization. Not many opportunities to influence "up" the chain.”

13. “Large and complex matrix, sometimes hard to get work done.”

14. “Limited progression, changes happen, management.”

15. “Micro-managing, no room for growth, work drama.”

16. “Bad ​management​ in some departments.”

A few current and former employees offered the following advice to managers:

1. “Need to train managers into better leaders.”

2. “Focus on those that don't sit at the "cool table." These people are just as talented.”
and eager for more just as much as the well connected and in the know talent.

3. “Listen to your employees and allow them to express how they feel about
department managers.”

Based on this feedback, it seems that there may still be room for improvement. ​IN THE
Agile at Scale/ DevOps 

Nike is not new to innovation but its innovation has largely been supported by traditional
processes and practices. Nike made a move from Lean to Agile in 2016 in its technology space.
In a Nike presentation ​DevOps at Nike: There is No Finish Line​, ​Nike shared how it made this
transition possible from a mindset, culture, and
process perspective.

Today, Agile at Nike is adopted by its many IT


teams. However, the company now has had to
find additional efficiencies. It has to evolve its
culture and business processes to provide greater
support for Agile teams. It also has to improve the
culture by reinforcing its values by addressing
concerns raised by current and former
employees.

The company faces strong competition and


according to it’s ​10K report​, the leadership
identifies the following companies as its primary
competitors: adidas, Anta, ASICS, Li Ning,
lululemon athletica, Puma, Under Armour and
V.F. Corporation.

The number of risks has increased significantly in


2020. COVID-19 pandemic triggered additional
risks. Your task is to develop a change
management plan to strengthen Nike’s internal
culture, to further support innovation, and to fend [Photo by İrfan Simsar on Unsplash]

off intense competition.


Your newly formed team 

[Photo by​ ​Annie Spratt​ on​ ​Unsplash​]

Your goal is to create an Agile team from the employees, who have been identified as great
performers, but have no experience with Scrum or Agile.

You need to plan a Sprint for preparing ten newly selected current company employees to be on
an Agile team.
Capstone Course Assignment Overview:

1. Complete the Transformation Roadmap (Module 1, 2, & 3)

2. Plan a personal development one-month long Sprint (Module 1)

3. Plan a new Agile team development one-month-long Sprint (Module 2)

4. Develop a change management plan to strengthen Nike’s internal culture, support


innovation, and fend off intense competition (Module 3)

Agile Team Sprint Planning Instructions: 

How would you introduce Agile to a team unfamiliar with Agile? Create a plan that will train your
team on principles of Agile and Scrum and address the following elements:

1. Training your new team on the principles of Agile and Scrum

2. Building a positive culture

3. Promoting Nike’s 11 maxims

4. Addressing at least two of the issues brought up by employees about the company

within your team.

Change Management Plan Instructions:

Create a 6-8 page Transformation packet document, which includes all 4 above-mentioned
elements.

1. Envision Statement (limit to three years, goal is to get to Agile Enterprise phase)

2. Select Two Change Management Theories (e.g. Kotter and McKinsey 7S)

3. Explain model selection - why did you decide on these two

4. Nike is currently at Agile at Scale phase. Design a phased approach to Agile Enterprise
transformation.

5. Design a plan for transformation. What do you need to do during each phase to make
sure the transformation is successful and sustained throughout the organization?

Use course and any outside materials to build your packet.


Bibliography

Connell-Waite, Jeremy. “Nike's Management Philosophy Revealed.” ​LinkedIn,​


https://www.linkedin.com/pulse/20141103230923-9245190-nike-s-management-philosophy-revea
led/​ . Accessed November 2020.

The Editors of Encyclopaedia Britannica. “Nike-Inc.” ​Britannica​, ​https://www.britannica.com/topic/Nike-Inc


. Accessed November 2020.

Glassdoor. “Nike, Inc.” ​GlassDoor,​


https://www.glassdoor.com/job-listing/senior-scrum-master-nike-JV_IC1154532_KO0,19_KE20,2
4.htm?jl=3726226725&pos=102&ao=1021105&s=21&guid=00000175a480256584e23c6a9a80f4
08&src=GD_JOB_AD&ei=1699&t=ESR&extid=2&exst=EO&ist=L&ast=EOL&vt=w&slr=true&cs=1
_20fab390​ . Accessed November 2020.

Nike, Inc. “Form 10-K.” ​nike.com​,


https://s1.q4cdn.com/806093406/files/doc_financials/2020/ar/NKE-FY20-10K.pdf​ . Accessed
November 2020.

Shimel, Landon. “DOES UK: Nike Applies ‘Just Do It’ Attitude to DevOps.” ​DevOps.com​,
https://devops.com/case-study-nike-applies-just-do-it-attitude-to-devops/​ . Accessed November
2020.

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