Nike &

Under Armour

Peter Murad Madison Conner

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Sarah Neavling Tu Mai

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Company Profiles

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• Designs, manufacturers, markets and retails athletic footwear, apparel and equipment
• 6.9% Market Share �
• Wholly owned subsidiaries: Converse Inc. and Hurley International LLC�
• 2013: $23.5 Billion in revenues, $2.5 Billion in Net Income�
• Workforce: 48,000

• Primarily focused on sports apparel market, continuing to expand athletic footwear
• Footwear supplier for NFL, MLB�
• #53 in Fortune’s Fastest Growing Companies (Sept 2013)�
• 2013: $2.33 Billion in revenues, $162 Million in Net Income�
• Workforce 7,800

Nike Key Facts

• Headquarter in Beaverton, Oregon.
• Operating in 6 continents, employing over 30,000 employees.
• There are 14 Nike Towns, 200 Nike Factory Stores, 12 Nike Women Stores and over 100 sales and administrative offices.
• Working with 137 contract factories in America, 104 in EMEA, 252 in North Asia and 238 in South Asia.

Nike Global Level Structure

• Global Headquarters control 3 regions: the US, the Americas and Asia Pacific.

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• Subsidiaries: Cole, Bauer, Herley, Converse..

Nike Regional Level Structure

• Headquarters in Netherlands

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• Responsible for 27 countries

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• Collecting the market information then feeding back to Global Headquarters

Nike Organizational Structure

• Bureaucratic structure
• Matrix Structure with function and business unit
• Works very efficiently and innovatively

Under Armour Key Facts

• Headquarters in Baltimore, Maryland
• CEO and founder was unpaid for the first 9 years of the companies existence
• Factory outlet locations in 39 states and one in Europe
• Shoes are the fastest growing product line growing 31% from 2011 to 2012

Under Armour Organizational Structure

• Global Headquarters in Baltimore, MD
• Also Regional Headquarters located in Europe, Canada, China, and Indonesia �
• Organic Organizational Structure

“Our entire growth trajectory has been very organic, and it hasn’t been forced. It’s been something the consumer has pulled from us. That’s something I think of: “Why are we here?” I believe we are here because we have a chance to enhance the athlete”

-Kevin A. Plank CEO and Chairman of the Board

Bureaucratic Structure

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• Centralized corporate structure

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• Headquarters in Baltimore, MD

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Regional Organizational Structure

• Multidivisional by region
• Specific rules on company policy
• This same chart can be applied to all other regions

Nike Culture

• Underlying Assumptions
• Innovation, Opportunistic, Driven, Serve the athlete

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• Espoused Values
• Mission Statement: To Bring inspiration and innovation to every athlete* in the world *If you have a body, you are an athlete
• Lead, Coach, Drive, Inspire, Winning

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Nike Culture

• Enacted Values
• Communicative, Innovative, Encourage Risk taking, Ownership of one’s Roles and Responsibilities.
• Nike Reuse-A-Shoe

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• Observable Artifacts
• Low cubicle walls, Common areas for collaboration,state of the art athletic resources for their employees

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Under Armour Culture

• Underlying Assumptions
• Innovative & Driven�
• Espoused Values
• Mission: “To make all athletes better through passion, design and the relentless pursuit of innovation”�
• Founding Values: “Innovation, inspiration, reliability & integrity; seek to do business with suppliers & their subcontractors that adhere to these practices and comply with our Code of Conduct”

Under Armour Culture

• Enacted Values
• “Future Show” Competition, October 2013�Winner: Longboard lighting system
• Idea.UnderArmour.com�
• Observable Artifacts
• Slogans - “Protect This House. I will”
• Symbols - Logo
• Physical Structure - Modern Design
• Stories - Sponsored Athletes

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Person-Organization Fit

Retail Store Manager�

• Personality
• Similar for both companies
• Openness - Curious, Creative, Dynamic
• Conscientious - Organized, Ambitious, Hard-working
• Extraverted - Sociable, Passionate�
• Personality Differences
• Agreeableness - Sympathetic, Cooperative
• UNDER ARMOUR

Person-Organization Fit

• Abilities
• Similar for both
• Verbal
• Quantitative
• Reasoning

• Cultural Values
• International Organizations
• Diverse knowledge of sports culture
• NIKE

Where do you want to work

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Nike or Under Armour?

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References

References

Bertone, M., Diamond, R., Liguori, A., & Knights, C. (n.d.). Under Armour. Retrieved June 1, 2014, from http://www.boyd-home.com/stonehill1/bus465/BUS465%20grp%20projects/UnderArmour-2010.pdf

Brenner, B. (n.d.). Inside the NIKE Matrix*. Retrieved from http://epub.wu.ac.at/3791/1/Nike__WU-CaseSeries.pdf

Horovitz, B. (2013, October 20). Under Armour seeks ideas for its next Big Thing. Retrieved from http://www.usatoday.com/story/money/business/2013/10/20/under-armour-sports-apparel-equipment/2975577/

IBISWorld US. (n.d.). Retrieved from http%3A%2F%2Fclients1.ibisworld.com%2Freports%2Fus%2Findustry%2Fmajorcompanies.aspx%3Fentid%3D895%23MP9086

Nike CR Report. (n.d.). Retrieved from http://www.nikeresponsibility.com/report/content/chapter/people-culture

Nisen, M. (2013, February 15). At Nike, Workers Quote The Company's Maxims Like The Ten Commandments. Retrieved June 03, 2014, from http://www.businessinsider.com/nikes-corporate-culture-2013-2#!K9xLa

Ransell, E. (1999, December 31). The Nike Story? Just Tell It! Retrieved from http://www.fastcompany.com/38979/nike-story-just-tell-it

Rao, S. R. (2008, September 8). The simple structure and bureaucracy. Retrieved from http://www.citeman.com/3954-the-simple-structure-and-bureaucracy.html

Taube, A. (2014, March 19). Under Armour's CEO Used To Send Phil Knight Christmas Cards. Retrieved from http://www.businessinsider.com/under-armour-kevin-plank-rivalry-with-nike-2014-3

Under Armour, Inc. - Governance Guidelines. (n.d.). Retrieved from http://investor.underarmour.com/documentdisplay.cfm?DocumentID=1007

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