Nike Case Study Practice Test: Outsourcing, Structure, and Competitive Advantage
A 12-question practice test on Nike’s network organization, outsourcing strategy, brand growth, innovation, and supply chain challenges based only on the indexed case study.
12 questions · pass mark 70% · try 5 free
1 What is the main organizational structure highlighted in the Nike case?
- Mechanistic hierarchy
- Decentralized network structure
- Functional bureaucracy
- Family ownership structure
The case describes Nike as leveraging a decentralized and networked organization structure to remain successful while focusing on core competencies.
2 Nike’s strategy in the case is built around owning and operating its own manufacturing facilities.
- True
- False
This is false because the case states that Nike is structured around product design rather than manufacturing and uses subcontractors to produce its shoes.
3 Which activity is identified as Nike’s core competency?
- Manufacturing
- Product design
- Retail distribution
- Raw material extraction
The case explicitly states that Nike is structured around its core competency in product design.
4 Which of the following are presented as benefits of Nike’s outsourcing approach?
Select all that apply
- Reduced overhead
- Greater focus on core competencies
- Guaranteed elimination of criticism
- Support for specialized business centres
The case links outsourcing to lower overhead and stronger focus on core competencies, and it fits Nike’s decentralized structure. It does not eliminate criticism, since labour and social responsibility concerns remained.
5 What major risk did Nike’s outsourcing model create?
- Declining product quality
- Loss of all brand recognition
- Reputational concerns about labour practices
- Immediate bankruptcy
The case says product quality was not hurt, but Nike’s reputation was challenged by social responsibility and labour issues in contract factories.
7 more questions in this test
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