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Intake: UCIFI1711IBM

Group Members:


2.      DALITSO MBEWE- TP047967

3.      ASAD UR REHMAN- TP047761

4.      HUSSNAIN KHALID- TP048561



1.0              Introduction to Adidas……………………………………………04

1.1       Introduction to Nike……………………………………………..04

2.0       Formalization……………………………………………………..05 

         2.1          Formalization in Adidas…………………………………06 

         2.2          Formalization in Nike……………………………………06

3.0       Work Specialization ……………………………………………07  

         3.1          Work Specialization 0f Nike………………………… 07 

          3.2         Work Specialization of Adidas……………………….09

4.0       Departmentalization……………………………………………….10  

          4.1         Departmentalization of Nike………………………………11 

          4.2         Departmentalization of Adidas……………………………12  

5.0       Chain of command …………………………….13   

          5.1         Chain of command in Adidas…………………………………… 14

          5.2         Chain of command in Nike ……………………………………………… 16

6.0       References………………………………………………………….  19

7.0        Group task repot…………………………………………………20


Introduction Adidas:

Slogan of the company is “Impossible is nothing”. Adidas is a multinational firm which was established in 1948. The firm worked in outlining and assembling of games dress and extras. The organization is base in Herzogenaurach, Bavaria, Germany. The organization likewise delivers sacks, shirts, watches, eyewear, and different games and apparel related products. It is viewed as Number one maker of sportswear in both Germany and Europe. The organization was established by Adolf Dessler who utilized his nickname Adi and the principal initials of his last name. Adidas’ income for the time of 2012 is €14.48 billion. The reason for this task is to assess the organization’s advertising procedure through led separate investigation (Vermin, SWOT, Doorman’s five powers, promoting blend examination, esteem chain examination and contender examination) and in view of the discoveries give suggestion to the organization. Adidas is a genuinely worldwide games mark. In this manner, all that we do is established in sports. Everything that occurs in sports occurs in minutes. Each minute is a possibility for the competitor to begin once again and take today (, 2016).

Introduction Nike

Nike is an American multinational corporation that is engaged in the design, development, manufacturing and worldwide marketing and sales of footwear, apparel, equipment, accessories and services. The company is headquartered near Beaverton, Oregon, in the Portland metropolitan area. It is one of the world’s largest suppliers of athletic shoes and apparel and a major manufacturer of sports equipment, with revenue in excess of USD 24.1 billion in its fiscal year 2012.

The company was founded on January 25, 1964, as blue ribbon sports, by Bill Bower man and Phil Knight and officially became Nike, Inc. on May 30, 1971. The company takes its name from Nike, the Greek goddess of victory. Nike markets its products under its own brand, as well as Nike Golf, Nike Pro, Nike+, air force 1, and subsidiaries including brand Jordan, Hurley international and converse. Nike also owned Bauer Hockey (later renamed Nike Bauer) between 1995 and 2008, and previously owned Cole Haan and Umbro. In addition to manufacturing sportswear and equipment, the company operates retail stores under the Nike town name. Nike also sponsors many high profile athletes and sports teams around the world, with the recognized trademarks of “just do it ” and swoosh logo.

As a leading manufacturer of sports shoes, apparel and equipment, Nike Inc., inspires people to adopt a winner mindset, which is covered in the inspiration component of the mission statement emphasizes innovation. This component is applied to new technologies. Thus, the company athletic shoes a wide variety of market segments globally.


Formalization is the extent of what an organization’s policies, procedures, job descriptions, and rules. Formalized structures are those in which there are many written rules and regulation. These structure control employee behavior using written rules, so that employers have little autonomy to decide on a case-by-case basis. An advantage of formalization is that it makes employee behavior more predictable. Whenever a problem at work arises, employees know to turn to a handbook or a procedure guideline. Therefore, employees respond to problems in a similar way across the organization, this leads to consistency of behavior.





Nike understands that talent and innovation go hand-in-hand. This feature of the organizational culture emphasizes the need to provide human resources support for product development and internal services in the corporation. As such, Nike uses training programs to maintain employee talent. The company also has coaching and mentoring programs. These approaches are based on the strategy that develops enables leaders within the organization for Nike global growth. The purpose of this characteristic of Nike’s corporate culture is to sustain talent and infrastructure necessary for producing some of the world’s most popular athletic shoes, equipment and apparel.



The Adidas Company refers to their rules and regulations to conduct their business in an ethical manner as Disney citizenship. The company’s many goals and objectives outline the commitment to act responsibly and inspire others to join them in creating a better future. The company makes sure that they conduct their business with honesty and legally at every location they operate. They make the best efforts to produce high-quality products and entertainment impact by setting up goals. They say that the employee education and development must be integrated into the organizational culture. Leaders at Adidas must not be afraid to in0novate and be comfortable with taking risks as it is essential for the growth of the company.








Work Specialization:


Sorting out exercises into bunches of related undertakings that can be taken care of by specific people or gatherings are called specialization. This part of outlining a hierarchical structure is twofold:

1) Recognize the exercises that should be performed keeping in mind the end goal to accomplish hierarchical objectives.

2) Separate these exercises into errands that can be performed by people or gatherings of workers.

Specialization has a few favorable circumstances. Notwithstanding expanding productivity, specialization brings about occupations that are simpler to learn and parts that are clearer to representatives. Yet, the approach has weaknesses, as well. Doing likewise again and again once in a while prompts fatigue and may in the long run leave workers disappointed with their employments.  “The more unique the work, the more job security for the employee because if a worker performs well, the company prefers to avoid the costs of hiring and training a replacement. More challenging specialized work may bring in more pay because companies have higher expectations of performance and value the production” (Kokemuller, 2013).

NIKE Work Specialization:

NIKE’s work specialization structure design is as follows:




Marketing/ sales.

Each specialist performs only a tight scope of tasks; inflexible parts; undertakings are isolated with near nothing/no cover. Nike uses a reasonable structure to segment up practices and decentralizes control inside the arrangement strategy to particular gatherings. Nike’s specialization inside the association has incite departmentalization (footwear, clothing, gear, advertising/bargains). Nike has winning by remaining adaptable in an unpredictable market by using subcontracting associations abroad in low work cost countries. (Nike.INC).

 Portland Business Diary staff journalist Matthew Kish said Nike, with 12,000 representatives revealed a month ago, is the second biggest boss in the area behind Intel — which likewise has a colossal neighborhood nearness that is yearly influenced by cutbacks also. Comprehensively, Nike employs more than 70,000 people (Matthew Kish). 


                                 (source © Statista 2018)

ADIDAS Work Specialization:

On December 31, 2013, the association had 50,728 representatives, which speaks to an expansion of 10% verses 46,306 in the earlier year. this improvement is prmary identified with the development of the Association’s own-retail location base, especially in European Rising Markets.on the full-time equal premise, our gathering had 43,537 representatives on december 31,2013. because of high offer of emlpoyees taking a shot at low maintenance premise in retail portion, this figure is accounted for lower than the past. Toward the finish of the 2013, 23% of the Gathering’s staff were utilized in Western Europe (2012: 24%), 33% in European markets (2012:30%), 25% in North America (2012:10%) and 7% in Latin America (2012:7%). As a worldwide with under 11% of the emlpoyees situated in Germany, association effectively empower worldwide versatility and offer their representatives the oppertunity to encounter Universal errands. To help adidas Gathering Experts and their families moving to new living and workplaces, they give, amoung different administrations, relevent dialect and culture preparing and additionally migration help.


                                                           (source © Statista 2018)


  According to Samuel (2015) departmentalization is defined as the grouping of jobs according to some logical arrangement. This view has been supported by Montana (1993) who states that departmentalization is  the grouping  of  related functions into manageable units to achieve the set objectives. The concept  is usually employed when an organization grows in size and complexity so that managing workers becomes easy and logical. From the above therefore it is important to note that this is done to ease work flow and supervision in an organization. Additionally, Samuel (2015) identifies four various types of departmentalization in an organization namely; (a) Functional departmentalization; this involves grouping jobs of similar jobs of nature, this helps employees know who they report to as the reporting lines are very clear. (b) product departmentalization; this involves grouping or arranging activities around the product. (c)Customer departmentalization; this involves structuring the organization in a way that specific customers interact with it. (d) Location departmentalization; this where jobs are grouped according to geographical sites and locations.

From the above therefore, it can be seen that planning is very important so that there is no confusion in accompany which might affect the profitability of the organization. Clear lines of reporting are important because they improve efficiency where both internal and external matters are dealt with at the earliest possible time. The main feature of functional departmentalization is that each department must do its part in order to make a meaning contribution. Specialized people do the work, for example  Purchasing Manager will handle all works related to purchasing and Human Resources Manager will handle works related to human resources .It helps put together skilled persons in one area so that there could be coordination. However, the disadvantage of this type the structure limits the organizational view as people are focused in areas of their specialty.


NIKE is a global multinational corporation with its headquarters in Beaverton, Oregon. It is the largest seller of athletic footwear apparel in the world (Barbara, 2013). Owing to its growth Nike has to work hard to ensure that operations are not disrupted and that the company achieves profitability. From the above therefore, it can be seen that the company uses this matrix of combining all these facets in order to remain competitive. The main reason for using this  matrix is that it allows flexibility band quick decision making to the advantage of the company unlike its competitor Adidas.


Source https:// search?dcr=0& source=hp&ei=9s


Adidas was founded in 1948 by Adolf  Dassler and it deals in clothing, shoes and fashion wear. As can be seen from the diagram here below Adidas uses a top to bottom type of organizational structure. This is simple to follow and each employee knows who to report to. However the disadvantage of this type of organization structure is that decisions can be delayed and other persons can be overburden with work. This organization structure does not give lot of room for flexibility hence the losing most its business to NIKE.




Chain of command

In a hierarchical structure, ‘levels of leadership’ alludes to an organization’s chain of command of detailing connections – from the base to the highest point of an association, who must respond to whom. The hierarchy of leadership not just sets up responsibility, it lays out an organization’s lines of specialist and basic leadership guarantees that each undertaking, work position and division has one individual accepting accountability for execution.

We find that both Nike and Adidas are implementing the chain of command. Adidas and Nike are an extremely surely understood and mainstream sportswear and hardware mark. The company comprises of a few senior levels, mid-level and section level officials which handle its working and operations. A strict associations or various levelled structures are taken after inside the organization to guarantee that everything stays all together and that the obligations and parts are legitimately isolated and conveyed. In the event that any person wishes to know and comprehend the various levelled structure better, the accompanying data will help.




At the highest position accompanies Chief Executive Officer or CEO which is the largest amount in the corporate organization who is the senior most representative of the organization and the person who is in charge of the considerable number of accomplishments and misfortunes of the organization. Specifically inside CEO, there are many positions which are involved by the individuals who report straightforwardly to him.

They are;

1.      CFO

2.      Boss corporate interchanges officer

3.      General direction

4.      Worldwide head of brands

5.      Heading of advertising

6.      Individual from administration board, worldwide operations

7.      Individual from administration board, worldwide deals.


Chairman of Board

This is the second most astounding position in the organization and is additionally a senior level position in the organization. The executive has a supervisory or basic leadership part in the organization. One needs encounter as well as abilities and learning to get to this position.

Vice Chairman of Board

After the director comes the position of the bad habit administrator of board. The bad habit director of board straightforwardly abroad the differently divisions and guarantees that they are working easily. Bad habit executive of board cares for board related exercises and partakes in the significant basic leadership of the organization.

1.      Bad habit director of the supervisory board, worker agent.

2.      Bad habit director of the supervisory board

3.      Individual from the supervisory board, worker agent

The chief of worker agent or individual from the supervisory board is the following position in the progressive request of adidas corporate chain of command. This individual cares for representative relations, worker administration and worker welfare at Adidas.

Member of the Supervisory Board

The individual from the supervisory board is otherwise called the chief and is the individual who is in charge of supervision of various divisions. There is an executive each for each of the Adidas head office and this too is a senior level position.




Whereas Nike has a geographic divisional authoritative structure. This structure depends on the organization’s needs in its worldwide association and territorial markets. The accompanying attributes are outstanding in Nike’s hierarchical structure:


1.      Global corporate administration


2.      Semi-self-ruling geographic divisions


3.      Global divisions for Converse and brand permitting

Global Corporate Administration

Nike’s hierarchical structure has worldwide corporate initiative, which includes corporate supervisors. The chiefs have workplaces in the organization’s central command in Oregon, USA. They choose for the worldwide authoritative structure of Nike. For instance, the Global Sports Marketing bunch discharges new athletic shoe advertising efforts for overall showcasing. Through this element of Nike’s authoritative structure, choices are effectively actualized all through the organization. The accompanying are the primary worldwide authority bunches headed by a President, Executive Vice President, or Chief Officer:

•Office of the President and CEO, Nike, Inc.

•Nike Brand


•Global Human Resources

•Product and Merchandising

•Administration and Legal

•Global Sports Marketing


Semi-self-ruling geographic divisions

Geographic divisions are a noteworthy authoritative structure normal for Nike, Inc. The organization’s operations are separated into sections in light of territorial markets. Each provincial division’s chiefs streamline operations in the territorial games shoes, attire and gear advertise. Nike’s hierarchical structure has the accompanying local divisions:

•North America

•Western Europe

•Central and Eastern Europe

•Greater China


•Emerging Markets

Global divisions for Converse and brand permitting

Nike’s hierarchical structure likewise has two worldwide divisions: one for the Converse brand and another for mark authorizing. One worldwide division is in charge of dealing with the overall operations of Converse, which is another footwear brand and auxiliary of Nike Inc. Another worldwide division is in charge of authorizing the Nike mark. This normal for the hierarchical structure offers control for mark permitting and the operations of Converse.





Adidas “History of adidas group” Available at: Online

Accessed date:18th JAN 2018  

Kokemuller, N (2013), What Is Work Specialization?, Available at: Accessed on: 19th JAN 2018, n.d. Organizational Structure Work. Online

Available at: Accessed date: 19th JAN 2018

Portland Business Journal staff reporter Matthew Kish Online Available at: Last Accessed on: 19th JAN 2018

Nike.INC “strategy Formulation, implementation and performance” Online

Available at: Last Accessed: 19th JAN 2018

Adidas-Group,2014 “Global employee increase strongly” Online

Available at:…/adidas-group_gb_2013_en.pdf  Last accessed: 19th JAN 2018

Source https:// search?dcr=0& source=hp=9s