analysis & comparison of mozilla corporation and nike, inc

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BAHRIA UNIVERSITY ISLAMAB AD CAMPUS INDIVIDUAL PROJECT Vs COURSE: COMPARATIVE MANAGEMENT INSTRUCTOR: PROF. COL (R) MANZOOR IQBAL AWAN PROJECT TOPIC: COMPARISON AND CONTRAST BETWEEN TWO MNCS CLASS: BBA 7-C (FALL 2010) STUDENT’s NAME: Syed Shaheryar Ali Ghalib Zaidi ENROLLMENT ID: 01-111072-287 EMAIL ADRESS: [email protected]

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Page 1: ANALYSIS & COMPARISON of Mozilla Corporation and Nike, Inc

BAHRIA UNIVERSITY

ISLAMABAD CAMPUS

INDIVIDUAL PROJECT

Vs

COURSE: COMPARATIVE MANAGEMENT

INSTRUCTOR: PROF. COL (R) MANZOOR IQBAL AWAN

PROJECT TOPIC: COMPARISON AND CONTRAST BETWEEN TWO MNCS

CLASS: BBA 7-C (FALL 2010)

STUDENT’s NAME: Syed Shaheryar Ali Ghalib Zaidi

ENROLLMENT ID: 01-111072-287

EMAIL ADRESS: [email protected]

CELL # (optional) 0332-5524080

Page 2: ANALYSIS & COMPARISON of Mozilla Corporation and Nike, Inc

Mozilla CorporationOur mission is to promote openness, innovation and opportunity on the web.

Establishment of Mozilla CorporationThe Mozilla Corporation was established on August 3, 2005 Mountain View, California, USA to handle the revenue-related operations of the Mozilla Foundation. The Mozilla Corporation was established to support the Mozilla Foundation's mission to ensure choice and innovation on the Internet by leveraging the economic value of Firefox which has resulted from its growing market share. As a non-profit, the Mozilla Foundation is limited in terms of the types and amounts of revenue. The Mozilla Corporation, as a taxable organization (essentially, a commercial operation), does not have to comply with such strict rules. Upon its creation, the Mozilla Corporation took over several areas from the Mozilla Foundation, including coordination and integration of the development of Firefox and Thunderbird and the management of relationships with businesses. With the creation of the Mozilla Corporation, the rest of the Mozilla Foundation narrowed its focus to concentrate on the Mozilla project's governance and policy issues.

By forming a commercial subsidiary, the revenue generating activities of the new entity can provide funds to support development, testing, and productization of the various Mozilla open source technologies. This benefits both end-users of Firefox and Thunderbird, and developers and others who want to use the Mozilla open source code in various ways. Having the Mozilla Corporation handle revenue-generating activities associated with these products also allows the Mozilla Foundation to achieve its goals while still itself remaining a tax-exempt organization.

However, the Mozilla Corporation is not a typical commercial entity and will only pursue revenue-generating activities that are consistent with offering end-users with the best experience possible.

Mozilla MessagingMozilla Messaging is a wholly owned subsidiary of the Mozilla Foundation that develops and promotes products that people can use to communicate online in ways that align with Mozilla's principles. This includes the creation of the Thunderbird email client.

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AffiliatesThe Mozilla Corporation has established relationships with a number of affiliated organizations around the globe that promote and support Mozilla principles, products and community.

Mozilla Europe Mozilla Japan Mozilla Online (operates in China)

Community Members OrganizationThere are many other organizations and sites that are maintained by people actively involved in the community that do not have a formal relationship with the Mozilla Foundation.

Mozilla Corporation in Home CountryThe home region of Mozilla Corporation is in Mountain View, California, in the United States.

MissionWe are dedicated to promoting openness, innovation and opportunity online.

VisionBuilding a better Internet is an ambitious goal, but we believe that it is possible when people who share our passion get involved. Coders, artists, writers, testers, surfers, students, grandparents—anyone who cares about the web can help make it even better.

Goals & Objectives Make openness, participation and distributed decision-making more common

experiences in Internet life. Make the explosion in data safer, more useful and more managable for

individuals. Integrate mobile into one unified, open, innovative web. Reinforce Firefox’s role as a driver of innovation, choice and great user

experience.

Organizational StructureThe Mozilla Corporation Board of Directors is appointed by and responsible to the Mozilla Foundation Board of Directors:

Mitchell Baker, (Chairperson)

Page 4: ANALYSIS & COMPARISON of Mozilla Corporation and Nike, Inc

Reid Hoffman John Lilly, (CEO of Mozilla Corporation) Ellen Siminoff

Role of Board of DirectorsThe Board of Directors is generally responsible for the conduct and the management of affairs of a company. More specifically, they have fiduciary and ethical responsibility and accountability for what a company does. The main point is that a Board is really not like the operational groups. To use more traditional terms, the Board is not like the “management team.” The Board asserts authority in the areas of governance and accountability; it provides assistance, guidance and support in strategic decisions and tactical activities. There’s no one better equipped to understand our world than the people building it every day.

The Mozilla Corporation management team includes:

John Lilly, CEO Brendan Eich, Chief Technology Officer Jim Cook, Chief Financial Officer Chris Beard, Chief Marketing Officer Mike Shaver, VP of Engineering Justin Fitzhugh, VP of Engineering Operations Jay Sullivan, VP of Products Harvey Anderson, VP of General Counsel

At the time of the Mozilla Corporation's creation, most of the Mozilla Foundation employees were transferred to the new organization.

Business Environment & Culture in California, U.S.AMore than any other industrialized country, the United States has adopted what could be labeled a 'scientific' approach to business. Every aspect of commercial life is studied and analyzed and this scientific approach is both respected and acted upon.

Straight Forward and prefer to the point talking. Respect is earned through conspicuous achievement rather than through age or

background. Short-termism is endemic. Work oriented & Time is money for them. Self-deprecation is often misunderstood by Californians as a sign of weakness.

Sell your plus points.

Page 5: ANALYSIS & COMPARISON of Mozilla Corporation and Nike, Inc

American management style can be described as individualistic in approach, in so far as managers are accountable for the decisions made within their areas of responsibility. Although important decisions might be discussed in open forum, the ultimate responsibility for the consequences of the decision lies with the boss — support or seeming consensus will evaporate when things go wrong. The up side of this accountability is, of course, the American dream that outstanding success will inevitably bring outstanding rewards.

Business Culture of Mozilla CorporationOpposite to the most of the organizations in USA, the culture at Mozilla is an inclusive one. Everyone looks out for one another and gets along. Our people are our culture and that makes for a diverse mix of personalities and good times.

Team Culture is much more appreciated in Mozilla. The managers work in a friendly environment & also give opportunities to employees to become a part of decision making process. These are some dimensions of this culture shared by the managers of Mozilla.

Management Styles in Mozilla CorporationAccording to Frederick Taylor & Henry Foyal’s proposed theories, the managers at Mozilla follow the Democratic style of management focus on giving flexibility to the employees so that the team can together evolve as one unit. By involving the team members in taking decisions and delegating tasks, the managers give the employee a sense of ownership and so that every employee feels as one family. In this style, team building skills, social harmony and cooperation are aimed to achieve a target.

Guiding Collaboration & Coaching Diversity & Flexibility Openness & Sharing Involvement of others

Two major components of team culture of Mozilla include:

The Steering Committee The Community

The Steering CommitteeThe Steering Committee is a set of people who both represent and provide leadership in the various types of activities we are working on, and who can work with others on topics that cross different types of activities. That’s a bit amorphous and doesn’t answer questions like “why type of activities” or “what level of leadership.” Mozilla try to have one person we can look to and hold responsible for each giant set of activities that we

Page 6: ANALYSIS & COMPARISON of Mozilla Corporation and Nike, Inc

need to accomplish. In terms of titles, these people usually have a “chief” or a “vice-president” in their titles. Titles and management at Mozilla are a bit different than at other organizations, and so this isn’t a perfect way to map the Steering Committee to other organizations. But it’s generally close and probably the best “quick and dirty” way of thinking about the Steering Committee.

The CommunityThe Community members basically consists of individual volunteers who began

participation in Mozilla project as a way to "scratch their own itch”, for example by

reporting or (in some cases) fixing bugs that affect them. A major priority for the Mozilla Corporation will be to work directly with community members interested in participating in the Mozilla project and influencing its future direction. As part of this process the Mozilla Corporation plans to work with the community to review and formalize the governance structures for the Mozilla project, including the role of mozilla.org staff. Formal governance of the Mozilla Foundation itself will continue to be as it has been in the past, by the Mozilla Foundation board.

Environmental Analysis of Mozilla CorporationThere are certain forces, inside and outside an organization that affect management’s ability to build and maintain successful relationships with customers. Like all other companies, Mozilla also has such forces around it; that environment is made up of internal environment and external environment.

Internal EnvironmentInternal environment forces include:

CompanyMozilla Corporation is the multinational company that has its main Headquarter in Mountain view, California, USA. In world it has its regional Headquarters in Toronto, Tokyo, Auckland, Beijing, Vancouver, and Paris. Mozilla is growing rapidly; more than 250 employees are a part of it. By having strong relationship with their users and the trust which they have developed, in the past years; employees and users have become the main assets of the company. The company has very organized check and balance system, which is used for the evaluation of the employee and the individual outlet as well.

CustomersCustomers are an essential part of any business, without the customer there would be no need for the business. Regardless of the product or service provided, a business must be able to leverage their marketing and production to ensure they satisfy consumer demand. Mozilla thinks more about consumer and try to provide services that are users friendly and convenient.

Page 7: ANALYSIS & COMPARISON of Mozilla Corporation and Nike, Inc

CompetitorsEvery business has external peers that perform similar functions within their professional discipline. These peers are considered competitors and they are rival producers of goods or services. These competitors contribute to the overall industry by their ability to deliver goods and services of high caliber at competitive prices.

Competitors of Mozilla are:

Microsoft Opera Software Apple Inc. Google

EmployeesEmployees are asset of the Mozilla Corporation. Mozilla has developed strong relationships with its employees and they are quiet satisfied with it.

External EnvironmentExternal environment forces can’t be controlled by the organization. It includes:

Legal & Regulatory DimensionThe first and foremost thing for any organization is to know different laws and regulations in their global business operations. This is done quiet efficiently by Mozilla before expanding their branches to Asia and Australia and even in their home region USA. In this case the global community of Mozilla played a pivotal role in differentiating between the legal codes from one region to another.

Political DimensionThe domestic and international political environment has a major impact on every multinational company. As government policies of USA are stable and constant, MNC’s must adjust their strategies and practices to accommodate the new perspectives and actual requirements. Same is the case with Mozilla Corporation which maintains good relations with government so they can avoid any problems or can minimize their negative effect by manipulating the policies in their interest.

Economic DimensionThe economy has a significant impact on the viability of a corporate strategy. Both the company’s and the country’s economic environment matters a lot for any organization to succeed. As USA has stabilized economic conditions and even Mozilla has a strong economic environment so it will minimize the amount of pressure while doing business in different regions.

Page 8: ANALYSIS & COMPARISON of Mozilla Corporation and Nike, Inc

Technological DimensionTechnology factors are the scientific advances, which influence the competitive position of the corporation. Maintaining awareness of new technologies decreases the probability of becoming obsolete and promotes innovation. Advancements in technology can impact the transformation plan in many ways. Mozilla is indeed coping up with the new technological advancements in USA to gain competitive edge over other companies.

Page 9: ANALYSIS & COMPARISON of Mozilla Corporation and Nike, Inc

Mozilla Corporation in Host CountryMozilla China is a non-profit organization to help promote and deploy Mozilla products in China. Mozilla China was founded on March 4, 2005. It is independent of the Mozilla Foundation, but is affiliated with them. Mozilla China will build a Chinese version of the Mozilla web site, provide technical and architectural direction for Mozilla development in China, organize and operate discussion forums, and develop Mozilla source code in China.

The Organization is co-chaired by Dr. Li Gong and Mr. Mingshu Li, both of whom will sit on the Steering Committee with Mitchell Baker, president of the Mozilla Foundation.

Business Environment & Culture in Beijing, ChinaChina is an emerging economic power that can not be ignored by international business. Despite these developments, MNC’s face a host of major obstacles while doing business in China. Government regulations severely hamper multinational activity and favor domestic companies. Additionally, it is difficult to find qualified people, and when a multinational does and then invests money in training these individuals, it is common to find leaving for jobs in other companies.

Most overseas companies who set up operations in the People’s Republic of China do so in the form of a joint-venture with a Chinese organization and there certainly seem to be manifold benefits to be accrued from doing so. Probably the biggest benefit from the joint venture approach is that it helps the overseas entity to establish relations - via the Chinese part of the venture - into a complex network of Chinese relationships. Guanxi, or personal connections, are the all-important weapon in all business situations in the People’s Republic of China. As has often been said, 'In China, if you don't have Guanxi, you don't have anything.' Forming a joint-venture company would seem to be the quickest and most effective way of developing good quality relationships in a country such as China.

Business Culture of Mozilla CorporationTeam Culture and Group Consensus oriented work is appreciated but with the inclusion of Confucian philosophy that is all relationships are deemed to be unequal and ethical behavior demands that these inequalities are respected.

Thus, in China, Management Style of Mozilla tends towards Paternalistic Management Style to some extent, with the senior manager giving instructions to their direct reports who in turn pass on the instructions down the line.

Page 10: ANALYSIS & COMPARISON of Mozilla Corporation and Nike, Inc

Management Styles in Mozilla CorporationAccording to Frederick Taylor & Henry Foyal’s proposed theories, management style used here is a Paternalistic one. In Latin Pater stands for 'father' and the paternalistic style of managers try to act as a father figure to the employees, thereby ensuring that all employees 'feel happy and bonded' while working in the company. Managers at the top will listen to the employee and at times ask for feedback and opinions while taking any decision. The social need of recognition of the employee is taken care of, in this style of management. This style matches with the theory of social needs by Maslow.

The manager at Mozilla should be seen as a type of father figure who expects and receives loyalty and obedience from colleagues. In return, the manager is expected to take a holistic interest in the well-being of those colleagues. It is a mutually beneficial Two-way Relationship.

Ethics & Social Responsibility of MozillaMore and more people in the world of social responsibility are pointing to Mozilla as a leading example of a socially responsible business. Many companies, like Intel, Microsoft, HP, Sun, The Gap, Patagonia, McDonalds…the list goes on and on…have all invested in some form of corporate social responsibility and have either hinted at or stated plainly that it is a strategic imperative for their business. In fact, Mozilla believes that they are a leading socially responsible business and a leader in social responsibility because of the fact that they want to make internet better and better by promoting openness and opportunity on the web. Managers at Mozilla might also be classified as social entrepreneurs. Each of these concepts has a nuanced difference that is worth understanding, but they all point to a larger effort for people and companies to become more responsible and conscious corporate citizens.

By creating an open community, the Mozilla project had become larger than any one company. Community members got involved and expanded the scope of the project's original mission—instead of just working on Netscape's next browser, people started creating a variety of browsers, development tools and a range of other projects. People contributed to Mozilla in different ways, but everyone was passionate about creating free software that would enable people to have a choice in how they experienced the Internet.

Page 11: ANALYSIS & COMPARISON of Mozilla Corporation and Nike, Inc

Comparison between Home & Host Country

Mozilla in USA Mozilla in China

Business Structure: Mozilla Corporation depends strictly upon the mutual coordination of the BOD, the Steering Committee and its Community members.

Management Style:Democratic style.

Meetings:Meetings are aggressive one where openly debating on issues even at the expense of personal relationships is valued.

Team Working:Groups could be for short period of time but remains consensus oriented.

Communication Style:English language.

Dress Code:Dress will vary from the formal, dark business suit, shirt and tie to literally T-shirt and Pants.

Business Structure:The structure remains the same in China as well with two member addition in Steering Committee.

Management Style:Paternalistic and group oriented with respect giving to their managers.

Meetings:It is important to show respect to those to whom respect is due - this is one of the ways in which you can show yourself to be honorable and in turn worthy of respect.

Team Working:Despite being hierarchical to some extent in approach to structure and organizations, they remain consensus-oriented.

Communication Style:English, Chinese & Mandarin to some extent. Without knowing Chinese doing business in China could be a difficult task for Mozilla people.

Dress Code:Many men now wear suits and ties and women tend to wear skirts and blouses of a modest cut.

Page 12: ANALYSIS & COMPARISON of Mozilla Corporation and Nike, Inc

Nike, Inc.“If you have a body, you are an athlete."

Nike, Inc. is a major publicly traded sportswear and equipment supplier based in the United States. The company is headquartered near Beaverton, Oregon, Washington County, United States. It is the world's leading supplier of athletic shoes and apparel and a major manufacturer of sports equipment with revenue in excess of US$18.6 billion in its fiscal year 2008. As of 2008, it employed more than 30,000 people worldwide. Nike and Precision Castparts are the only Fortune 500 companies Headquartered in the state of Oregon, according to The Oregonian.

The company was founded in January 1964 as Blue Ribbon Sports by University Of Oregon track athlete Philip Knight and his coach William J.”Bill” Bowerman and officially became Nike, Inc. in 1978. 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 Jordan, Nike Skateboarding and subsidiaries including Cole Haan, Hurley International, Umbro and Converse. Nike also owned Bauer Hockey (later renamed Nike Bauer) between 1995 and 2008. In addition to manufacturing sportswear and equipment, the company also operates retail stores under the Nike town name. Nike sponsors many high profile athletes and sports teams around the world, with the highly recognized trademarks of "Just do it" and the Swoosh logo.

Organizational Structure of Nike, Inc.Below is Nike's global senior team leading our business and growth strategies.

Philip H. Knight, Chairman of the Board of Directors Mark Parker, President & Chief Executive Officer, NIKE, Inc. Charlie Denson, President, NIKE Brand.

Role of Board of Directors

The Board, which is elected by shareholders, is the ultimate decision-making body of the Company, except with respect to those matters reserved to the shareholders. The Board represents the owners’ interest in the operation of the business, including optimizing long-term financial returns. It elects the corporate officers comprising the senior management team, who are responsible for the conduct of the Company’s business. The Board acts as an advisor to and oversees the senior management team, and ultimately monitors its performance. The Board has the responsibility to ensure that in good times, as well as difficult times, management is capably executing its duties.

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The Board is also responsible for reviewing and establishing procedures designed to ensure that the company’s management and employees operate in a legal and ethically responsible manner.

Page 14: ANALYSIS & COMPARISON of Mozilla Corporation and Nike, Inc

Nike, Inc. in Home CountryThe home region of Nike, Inc. is in Beaverton, Oregon, Washington County, United States.

MissionIf you have a body, you are an athlete.

VisionOur aim is to bring inspiration and innovation to every athlete in the world.

Goals & ObjectivesOur objective is to "lead in corporate citizenship through programs that reflect caring for the world family of Nike, our teammates, our consumers, and those who provide services to Nike."

Business Environment & Culture in Oregon, U.S.AIn Oregon, USA every aspect of commercial life is studied and analyzed and this scientific approach is both respected and acted upon. Far more resource is available in the US for the study of the methodology of business than in any other country and most new management theory and doctrines have their origins in the Oregon. In the States everything is quantified and assessed.

This 'scientific' approach - the constant search for better, more effective methods - has led to a business environment typified by the presence of change as a constant factor. The most common response to a changing environment is realignment of the organization and this, in turn, has produced a work force in a state of constant flux.

Management Style in Oregon, US is more of an individualistic one. Oregonian managers are more likely to disregard the opinions of subordinates than managers in other, more consensus or compromise- oriented cultures. This can obviously lead to frustrations, which can sometimes seem to boil over in meeting situations. Although important decisions might be discussed in open forum, the ultimate responsibility for the consequences of the decision lies with the boss.

Titles can be very confusing within US organizations with a bewildering array of enormously important-sounding job descriptors on offer (Second Vice-President etc.). Titles, in any case, tend to be a poor reflection of the relative importance of an individual within a company. Importance is linked to power, which could be determined by a number of factors such as head-count responsibility, profitability of sector or strategic importance to the organization at that point in time.

Page 15: ANALYSIS & COMPARISON of Mozilla Corporation and Nike, Inc

Business Culture of Nike, Inc.It’s simple. At Nike, we consider diversity and inclusion to be an integral part of our business. Our differences allow our brand to be creative and innovative with a universal, global reach. Diversity helps us recruit the brightest minds. The more we work together, the more we can offer our consumer. From the earliest days at Nike, diversity has been a priority. We’ve had diversity recruiters on staff for 15 years.

Diversity means different things in different regions and Nike continually strives to ensure that our diversity initiatives are truly global. For example, in our European headquarters we currently employ over 70 different nationalities, with recruits from 10 of the top MBA schools across Europe. And, in our Nike Asia offices, we have a wealth of employee programs and diversity recruiting efforts from premier MBA schools.

We embrace equality and fairness in our workplace by recruiting from employment sources worldwide.

Management Styles in Nike, Inc.According to Frederick Taylor & Henry Foyal’s proposed theories, Management Style used in Nike, Inc. is Participatory Style of Management. Participatory Style is based on the principle of "faith". Under this style of management, the leadership and management places full faith in the abilities of the employees. The tasks are given directly to the employees and are well-explained to them in advance. Their inputs on the tasks are also given due importance. The employees know how their work is fitting into the organization's big goals. When their inputs are sought and they are also made aware how important they are to the health of the organization, their motivation levels become very high and they perform better. This style is usually seen in smaller organizations, with lesser number of employees.

Environmental Analysis of Nike, Inc.

Internal EnvironmentNike’s management analyzes its internal environment and makes decisions based on that analysis. Because of Nike’s marketing research, the company has decided to revamp its apparel division to be more fashion savvy. As a result of product and pricing research, Nike has decided to continue to focus on the high end market while increasing its market share in the middle and low price ranges in an attempt to broaden Nike’s product spectrum.

CompanyNike, Inc. is the multinational company that has its main Headquarter in Beaverton, Oregon, USA. In world it has its regional Headquarters in Europe, Middle-East, Africa,

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Asia Pacific, and Americas. Till the time of its creation Nike is growing rapidly; more than 30,500 employees are a part of it. Nike has contracted with more than 700 shops around the world and has offices located in 45 countries outside the United States. Most of the factories are located in Asia, including Indonesia, China, Taiwan, India, Thailand, Vietnam, Pakistan, Philippines, and Malaysia.

CustomersNike maintains a very healthy relationship with its customers delivering best quality products. People from all walks of life are the customers of Nike. Nike has wide range of customers. Nike provides products of wide variation, products for people under every age group. Also Nike have specialized products for female and males.

CompetitorsReebok, in terms of their products, is not entirely different from Nike. Reebok is involved in the design and marketing of both athletic and non-athletic footwear and apparel, as well as other various fitness projects. Reebok’s financial position has been gradually slipping for a number of years. This is evident in their declining stock price, which has fallen by over 80 percent in the last four years. During that same period, net income declined 17%.

Some other Competitors of Nike are:

Puma Adidas

EmployeesThe organization’s management is responsible for day-to-day operation of human resources. Organization also focuses on the best Human resources Management, Total Quality Management and Reward Systems. The purpose of Human resource management or Personnel management is to improve the productive contribution of people to the organization in ways that are strategically and effective. Human resource management in Nike, Inc. focuses on the betterment of the quality of life the employees.

Nike believes in team work, innovation, and maintaining the quality of the working environment of the employees. Nike provides very innovative and friendly working environment to the employees.

External Environment

Economic DimensionThe economy has a significant role to play in a corporate strategy. Both the company’s and the country’s economic environment matters a lot for any organization to succeed.

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There is a rise in the revenue of Nike, Inc. from $14,995 to $19,176 in year 2006 to 2009 but in 2010 it drops slightly down to $19,014.

Technological DimensionNike had always believed on innovation and has introduced many new technologies in the market.

Nike Sense Technology: This automatically adjusts stud length in your boot. Nike Air-max Technology: This technology is use in the boots of basketball this

enables it to absorb shock. Nike Fly-wire Technology: This reduces the weight of the boot and makes it

more flexible and strong it is a technology only used in Nike boots.

Political DimensionThe domestic and international political environment has a major impact on every multinational company. Today Nike has more than 700 outlets in 46 countries including US. Globally Nike employ’s more than 30,500 employees. And in each country they keep close on their regulatory policies and strategies. Nike serves with its high quality products. In every nation Nike comes up with wide varieties of products.

Legal & Regulatory DimensionThe preliminary thing for any organization before entering into a new region is to know different laws and regulations in their global business operations. Nike has done this quiet effectively in every country it’s targeted.

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Nike, Inc. in Host CountryOur Asia Pacific headquarters are based at our World Headquarters (WHQ) in Beaverton, Oregon. Nike, Inc. is known as Nike Japan in Japan.

Business Environment & Culture in Tokyo, JapanSome of the underlying concepts in Japan are so fundamentally different from western models that adjustment can be difficult and complete comprehension almost impossible. The most important concept to grasp is that of the overwhelming importance of personal relationships within the business cycle. Of all the business cultures of the world, Japan is one of those most strongly rooted in the concept that relationships should come before business, rather than business being more important than personal considerations.

This means that in order to achieve success in Japan, it is important to put the maximum amount of time and resource into the early stages of relationship-building — even when eventual results may seem a long way off.

Business Culture of Nike, Inc.

Japanese companies, include Nike Japan, are hierarchically organized with individuals knowing their position within a group and with regard to each other. It is this sense of belonging to the group that gives company its strength and purpose. Group orientation and team working are not merely concepts and phrases in Japan but a way of life which permeates all aspects of corporate life at all levels. Japanese hierarchy is based on consensus and co-operation rather than the top-down decision making process which often typifies western models of hierarchy. This means that people feel actively involved and committed.

Management Styles in Nike JapanAccording to Frederick Taylor & Henry Foyal’s proposed theories, Management Style used in Nike Japan is a Participative Management Style. The participative management style is believed to be one of the best methods of providing motivation to employees to work harder. As the name clearly indicates, the manager allows his subordinates and staff to get involved in the decision making process. This in turn creates a feeling among the employees that their suggestions are being valued by the management, resulting in showing real interest in work. Though there is a collective decision, the final decision rests on the manager himself.

Nike, Inc. emphasizes the need for information flow from the bottom of the company to the top. This results in senior management having a largely supervisory rather than hands-on approach. As a result, it has been noted that policy is often originated at the middle-levels of a company before being passed upwards for ratification. The strength of

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this approach is obviously that those tasked with the implementation of decisions have been actively involved in the shaping of policy.

The key task for a manager of Nike Japan is to provide the environment in which the group can flourish. In order to achieve this he must be accessible at all times and willing to share knowledge within the group. In return for this open approach, he expects team members to keep him fully informed of developments. This reciprocity of relationship forms the basis of good management and teamwork.

Ethics & Corporate Social Responsibility of Nike

Nike paid emphasis on contributing towards society.

Nike fund number of NGO’s. Nike contributes for the study of rural children. Nike innovates its products constantly and makes them eco-friendly. Nike gives scholarships to children to do better in sports. Nike started wonderful help approach for the development of sports in Africa. Nike is also a member of Fair Labor Association (FLA) and Global Alliance.

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Comparison between Home & Host Country

Nike in USA Nike in Japan

Business Structure: Nike, Inc. depends strictly upon the mutual coordination of the BOD as well as the collaborative efforts of their employers and employees.

Management Style:Participatory and collaborative in approach with the focus is on innovation and diversity.

Meetings:Meetings are aggressive one where openly debating on issues even at the expense of personal relationships is valued.

Team Working:Groups could be for short period of time but remains consensus oriented.

Communication Style:English language.

Dress Code:Dress will vary from the formal, dark business suit, shirt and tie to literally T-shirt and Pants.

Business Structure:The structure remains the same in Japan.

Management Style:It requires participation and involvement of others. The key task for a manager of Nike Japan is to provide the environment in which the group can flourish.

Meetings:Punctuality is important — it shows respect for the attendees. Meetings are often preceded by long, non-business polite conversation which could cover such topics as mutual contacts, the merits of your company, Japanese food etc.

Team Working:They are naturally group-oriented which underlies the need for a truly consensus approach to issues.

Communication Style:Levels of English in Japan are at best very patchy.

Dress Code:The business convention of dark suit, shirt and tie is very much the norm in mainstream business of Nike Japan.

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Analysis of the Mozilla & NikeA successful collaboration of great minds would overcome any

challenges.

This above Quote describes the conditions of the two MNC’s quiet skillfully. While studying the two MNC’s Mozilla and Nike rigorously it is quiet obvious that both of these companies are well-established, stable and growing rapidly with the passage of time. Owners and shareholders of both of these companies are enjoying the boom period of their lives although we have seen a decrease in the annual revenue of Nike in this year but still they are well-established economically. Both of these MNC’s have their branches all over the world and they are still trying for expansion in different regions. Nike being the older company has its regional headquarters in almost each and every part of the world and Mozilla has its branches in Asia and Europe and World-wide range of users.

When working in the global commercial environment, as both of them are so knowledge of the impact of cultural differences is one of the keys to international business success. Improving levels of cultural awareness can help companies build international competencies and enable individuals to become more globally sensitive. This is one of the reasons for the two companies for growing at such a rapid pace. As far as the organization culture is concerned, both of these MNC’s is trying to promote the culture that gives confidence to employees and increase their loyalty with the organization by involving them into the decision-making process of the organization.

At Mozilla, employees feel that they are being valued by their superiors when they are asked for the feedback. They try to promote Two-way relationship that motivates the employees of the companies and they feel that their social needs are being met but that could result in slowing the process of decision-making and also increase the ratio of mistakes and errors if the employees are not skilled or experienced enough. It also shows to be somewhat autocratic or dictatorial style of management.

At Nike, consensus oriented and group work is appreciated. They try to increase sense of responsibility among the employees with involving the employees in making decisions for the betterment of the organization. Diversity and innovation is the major thing on which they focus. They try to maintain a healthy environment in the organization so that to get creative and innovative ideas from them.

Creativity and innovation are two major benefits of participative management. Participation helps employees gain a wider view of the organization. Through training, development opportunities, and information sharing, employees can acquire the conceptual skills needed to become effective managers or top executives. It also increases the commitment of employees to the organization and the decisions they make.

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Both of these MNC’s have paid great emphasis on contributing towards the society. And they have shown it from doing exemplary work for the development of society. Like Mozilla has done commendable work to develop anti-hacking software. And even Mozilla’s stated aim is to promote choice and opportunity on the web to make internet better and better. More and more people in the world of social responsibility are pointing to Mozilla as a leading example of a socially responsible business. In fact, Mozilla believes that they are a leading socially responsible business and a leader in ethics and social responsibility and their managers are social entrepreneurs. Profit maximization is one aspect but they actually are working for a cause that is for the betterment of the community.

Even Nike emphasizes a lot to contribute towards the society. Their managers are of the opinion that when the people are tension-free and possess healthy body and healthy mind than they are able to play sports. They have invested in education for rural children as well as they gave scholarships to the kids who play sports.

Both of these MNC’s have great brains in their camps and with the support of the workers they are being able to consistently growing. Another major reason for their growth is that they device such policies and strategies that helps them in expanding heir business. Like while expanding their business globally, both the MNC’s kept in mind the political and economic conditions of the country so they craft their policies according to that. Also the legal conditions of the country, they took especial care of. They always obey the rules of the country. Moreover, they always had good relations with the government and kept a close look on the regulatory policies developed by the government so that they can manipulate the policies in their favor.

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Comparison between Mozilla & Nike

Page 24: ANALYSIS & COMPARISON of Mozilla Corporation and Nike, Inc

Mozilla Corporation Nike, Inc.

Business Structure: Three pillars of the structure which consists of the BOD, the Steering Committee, and the Community members.

Management Style:Primarily Democratic management style but adjusts it according to the cultural differences in different countries like Parentalistic one in China.

Headquarters & Founded in :Mountain View, California, in the United

States in August 3, 2005. Corporate Social Responsibility:

They call their business Social Responsible Business and call themselves Social Entrepreneurs.

Dress Code:Dress will vary from the formal, dark business suit, shirt and tie to literally T-shirt and Pants.

Organizational Focus:The focus is on promoting Choice and Openness and Opportunity.

Number of Employees:More than 250.

Business Structure:More or less the same structure as of Mozilla. It includes the BOD, the Management Team, and Employees.

Management Style:The key task for a manager at Nike is to provide the environment in which the group can flourish. Participatory management style.

Headquarters & Founded in:Beaverton, Oregon, Washington County, United States in January 1964.

Corporate Social Responsibility:They fund a number of NGO’s and contributing a lot in the society.

Dress Code:Formal Suiting as well as t-shirts and trousers in some regions.

Organizational Focus:The focus is on Creativity, Innovation and Diversity.

Number of Employees:30,500

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My Personal OpinionIf I have to make a choice between the two MNC’s than I would like to join Nike, Inc.

Reasons:The first and foremost reason for this choice is that I am a sportsman and I love sports so in any way I want to be associated with the sports.

Another reason is that Nike is far more established and stable economically in comparison to Mozilla. It has its branches in most areas of the world and to be the part of such a big organization would be like a dream come true. So Nike would preferably my choice.

Another reason to choose Nike is that Nike is a well known brand around the globe and people just from its logo Swoosh recognizes it. Even a common man knows about it so one can easily understand how popular it is.

Another self-incentive for me to join Nike is that working with Nike there is a possibility that I could meet with my favorite sport stars like Tiger Woods, Rafael Nadal, Sachin Tendulkar and Christiano Ronaldo.

The most simplest of all the reasons to join Nike is that Nike is such a huge and popular company that every common person would like to be a part of it and I also am a very common person so how could I go against them or differentiated from them. I also would like to join Nike.

Page 26: ANALYSIS & COMPARISON of Mozilla Corporation and Nike, Inc

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