Week 12 - Implementing Corporate Diversification

Implementing Corporate Diversification

As in my previous week's blog, I mentioned the core strength of Nike's implementation of diversified strategies.  This week, I will dive deeper into why and how they might go about achieving successful corporate strategies.  I believe there to be many internal core competencies Nike capitalizes on to ensure their year over year success.

Nike partakes many of our chapters lessons and applies them with gusto.  For example, Nike's hierarchy is a matrix organization that impresses upon leadership at all levels.  They start by separating the business units by category such as Running, Women's Training, Golf, etc.  Each category has a general manager with goals and accountability.  These managers also work cooperatively across many category activity leaders that handle public relations, brand communications, events, etc.  The activity leaders also work across multiple categories supporting the various "sports" from a "global" perspective.  They are able to be consistent across the company in any decision making this way.

Another aspect that Nike takes seriously to ensure their vision of diversification strategies take hold is by impressing a sense of bond.  It is one company working through individual sports for the greater good of the company as a whole.  They encourage, plan and host bonding days throughout the organization worldwide.  Bringing together employees from all levels and categories and business functions to collaborate and truly brings the brand alive.

Finally, another important activity Nike implemented to ensure all employees were a part of the team was the issuance of bonuses, at every single level of the organization.  Some companies only bonus certain levels of management, excluding lower levels of employees.  Nike pays all employees based on their band/tier percentage as well as company and individual performance.  They believe everyone plays a role and without full efforts from all, where would they be?  I believe this also gives everyone skin in the game, as they say.  Peer to peer encouragement is a pretty valuable tool to ensure everyone is  pulling their share.