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Nike omen's Case
Nike's Global omen's Fitness Business: Driving Strategic Integration Case Study
Need for Organizational Change
Kotter's 8 Step Model for Change
Build the Change Team
Create a Vision for the Change
Communicate the Vision
Create Short-Term ins
Build on the Change and Anchor the Changes in the Corporate Culture
Other conditions for change.
Need for Organizational Change
It became evident to many executives at Nike that women had evolving needs that were not being met under their traditional model. Previously the company was more focused on the in male dominated segments and was said to cater to testosterone. The products that were offered women were generally modified versions of the men's line despite women having significantly different biophysical and usage needs than men. For example, running shoes are not practical for practicing yoga. Furthermore, Nike realized that women in the U.S. alone…… [Read More]
Nike Case Study
Scenario which Sparked Change
The scenario which sparked the need for change was the sheer success of Nike as a brand for athletic apparel, athletic shoes and equipment. However, this was a success that company experience only in terms of men and menswear. "According to Mindy Grossman, the company's former vice president of global apparel, 'some of the issues in the past was that there was a faction in the company that felt if we were successful in the women's business, it would erode our men's business and we would lose some of our testosterone'" (Nike case study). Thus, there was an overwhelming feeling that while the company was an accepted, trusted and popular brand, they were only successful with one-half of the population -- and there was a sense of reluctance to attempt to even try to be successful with women, for fear of losing the…… [Read More]
The customers to which Nike will be marketing its new product are women who are interested in the skinny jeans look and also who are interested in being athletic. Not all women are athletes, but many of them are interested in looking fit and trim. Because they want to maintain a healthy weight and look nice for themselves and others, and because they wish to remain hip and trendy, skinny jeans are a good choice for them.
Marketing and Product Objectives
The main objectives for the product and its marketing are as follows:
Locate the appropriate target market
Showcase the product in relation to other skinny jeans already on the market for women today
Use the brand recognition already seen by Nike to ensure that the target market sees the value and quality in the new skinny jeans
Become a part of the skinny jeans market…… [Read More]
Therefore, it is important to use external sources of innovation. In addition to this, companies must take into consideration the fact that some of the best solution can be found in their external environment.
The costs associated with the company's activity are significantly affected by its open innovation strategy (OPINET, 200). This is because this strategy leads to reduced costs of the research and development process. By collaborating with other companies, Nike also shares the costs of innovation (OECD, 2008). This is an important factor that can help Nike reduce the price of products, which can be used in order to attract a higher number of customers. In addition to this, Nike's research and development process can be increased. This leads to expanded innovation activities that can determine the improved production that Nike requires in order to create competitive advantage.
There are also other important advantages determined by open innovation.…… [Read More]
Nike earned a net income of 2.133 billion in fiscal 2011 on revenues of $20.862 billion. A trend analysis of the income statement shows that net income grew 9.7% in FY 2011, whereas the net income grew by 11.8%. In the previous year (FY2010), Nike's revenue actually declined by 0.8%, while the net income increased by 28.2%. The performance over the past two years indicates that Nike has faced some trouble growing its revenues, but has made up for that with stronger cost controls. The common size income statement reveals where these improvements are found. It was not in the cost of sales which ranged between 53.7% in FY2010 to 55.1% in FY2009. The difference was in the company's "demand creation expense" (aka marketing), which fell from 12.3% of revenue in FY2010 to 11.7% in FY2011, a difference of $118, which is most of the difference between…… [Read More]
Nike: Financial Analysis
The relevance of analyzing the financial stability and health of an entity cannot be overstated especially when it comes to the determination of the future performance of the concerned entity. This text undertakes an in-depth financial analysis of Nike, a well-known footwear, equipment, and apparel designer.
In seeking to conduct an in-depth analysis of Nike, I will amongst other things describe the company and its operations in significant detail, evaluate its vulnerability to financial threats, identify and discuss its financial trends, and discuss how its stock is likely to perform going forward. It is important to note that as I seek to further evaluate the financial performance of Nike, I will also rope in Skechers USA, Inc. A comparison of the two companies in this analysis will help in determining how well Nike is performing in its industry. A Nike competitor, Skechers happens to be in the…… [Read More]
Nike's Business Strategy in ikert and Christensen's "Nike (A)"
In the 1970s Nike developed a strategy that broadened its base from specialized athletic footwear to popular consumer-based fashion footwear. By the 1980s Nike foot apparel had dominated the market, appearing on the feet of everyone from American youths to Olympic runners. Nike's strategy was to combine serious technology with the popular taste for casual wear and comfort. As David C. ikert and C. oland Christensen report, "unning was never the lifeblood of running shoe sales. Comfort was" (ikert, Christensen 1990:3). This paper will analyze Nike's strategy and show why it has been successful.
The Nike Strategy
Nike's 1970s strategic rise from 1960s obscurity was based on the fact that a new market was opening in American culture. The new market had precise parameters: "comfort and appearance formed the basis of the 'ath-leisure' segment of the market" (ikert, Christensen 1990:3) and…… [Read More]
Nike: 1. The facts of the situation are that Nike has faced considerable criticism for its use of foreign contractors, because those contractors operate in low-wage countries. Unions and activists -- the former at least has a dog in the fight -- are behind the P problems for Nike. However, Nike has begun to pay more attention to its practices, resulting in a much better reputation for ethics.
There are many different stakeholders. Internal to Nike are the company's managers, employees, shareholders and channel partners. External stakeholders include the employees of the suppliers, the customers, government, environment and the labor unions would like to include themselves here although it is hard to see how activist groups have a legitimate claim to stakeholdership.
The underlying driver for the unions is opposition to outsourcing overseas, because this reduces their workforce and therefore dues. Their motivation is strictly financial. For activists, the motivation…… [Read More]
Nike Inc., founded by Phil Knight and Bill Bowerman in 1962 was partnered under the name, Blue ibbon Sports (Carbasho & Greenwood Press (Westport, Conn.), 2010, p. 25). Back then their motto was to dispense affordable high-quality athletic shoes to Americans buyers in an effort to disrupt Germany's control of the domestic industry. From there the company has grown to what it is now, a name synonymous wit sneakers and athletic gear. And with it has developed a human capital recruitment philosophy based on fitness and athletics where employees feel the team spirit and being a part of a team. Their methods and techniques often include allowing employees an extra half hour for their lunch break to get in a workout. Their motto is promoting not just a product, but a lifestyle that they also want to see in their employees.
The now famous "Just Do It" mantra of Nike…… [Read More]
Nike's Strategic And Financial Position Analysis
Nike is a globally recognized multinational corporation founded by the Stanford Graduate School of Business graduate, Phil Knight, and Bill Bowerman who was the track and field coach at the University of Oregon. The two appear to be a natural fit as each hailed from a background that would appreciate the underlying design that goes into creating a quality running shoe.
Nike's global operations in aggregate employ a number greater than 30,000 employees throughout a range of services and job functions. A fraction of that aggregate is employed at the company headquarters in Beaverton, Oregon. According to www.nikebiz.com, "Nike employes more than 36,000 people globally. Our Nike World Headquarters located in Beaverton, Oregon is home to more than 7,000 employees. For the fiscal year ending May 31, 2010, we reported revenues of $19.0 billion." (www.nikebiz.com/company_overview/facts.html)
The Nike Mission Statement
"To bring inspiration and innovation…… [Read More]
he case is written in a simple but comprehensive manner, focused on the main highlights of Nike's activity. It is useful for the specialized economists as it presents real and clear facts, but it can also be useful to the novice economist or the simple individual, who wishes to get some insight into the Nike culture and ways.
he main purpose of the report is to inform the reader about the general facts at Nike in 2003 as well as the forces which marked its past. It is basically addressed to the general and unspecialized reader, and it is insufficient in information to be considered a specialized report. herefore, if the reader desires more data, he will have to consult other sources as well. For instance, the present case offers limited information about the company's financial highlights for 2003. hen, it fails to offer an analysis of the company's stock…… [Read More]
The industry must become more transparent, and open to public as well as market scrutiny. The veil of secrecy and silence that these industries have been hiding under must be exposed, and no secrets allowed remaining within the four walls of the sweatshops. One could even create a system whereby workers and communities would be able to speak in the same language, and therefore, communicate better with each other through their own organizations and associations. If one could take all these steps, then these could well prove to be the best global solution to the problem of sweatshops and cheap labor and exploitation under the name of the organization. (O'ourke, 2001)
Akst, Daniel. (2001) "Working Conditions of Nike Contract Workers" NCPA Trade Issues.
etrieved 26 September, 2007 at http://www.ncpa.org/pd/trade/pd030601g.html
Churchwell, Cynthia. (2003, Dec) "The New Global Business Manager." etrieved 26 September, 2007 at http://hbswk.hbs.edu/item/3827.html
Frenkel, Michael; Hommel, Ulrich; udolf,…… [Read More]
n assessing knowledge management at Nike, the strengths inherent in their culture and putting a high value on tacit and implicit knowledge sharing are shown in how well integrated new product development, innovation, marketing and supply chain at the corporate level are. Yet the company falters in the areas of supply chain knowledge management and knowledge transfer into retail channels. These two areas of the greatest weakness to Nike require a redefinition of how the company's enterprise knowledge management 9 EKM) strategy is managed, specifically in the area of knowledge transfer.
Defining an Enterprise Knowledge Management Framework at Nike
The development of a knowledge management framework for Nike needs to take into account the process areas where the company excels today, which include innovation, new product development, advertising, branding and marketing while recognizing that the company struggles in supply chain management and retail operations. Defining a knowledge management model needs…… [Read More]
At the creative and design level however, there were numerous benefits and they materialized in a significantly higher know-how, expertise and innovative ideas. The company has also strived to increase organizational efficiency, which not only improved the organizational design, but also generated customer value.
d) Nike new product portfolio and brand management strategies
Nike's development and continuous appeal to the audience has been based -- to an extensive degree -- on its product portfolio and brand strength strategies. The company has strived to develop new products, which materialized in an increased ability to appeal to wider customer markets. Additionally, it has also strengthened the brand to consolidate the customer appeal, and to assign the Nike products a significance other than that of their functionality.
elative to improvements, these could occur in the sense of adding new features which better adapt to modern day necessities. Nike could for instance implement a…… [Read More]
The nerd globetrotting elite
The NIKE Corporation website targets a new global movement in mind-body synergy through artificial intelligence, 'thinks for your feet.' In the last twenty years the multi-billion dollar corporation has mobilized its methodology in sales on the wings of a Greek goddess. Since 1988, when NIKE's 'Just Do It' slogan came on the scene, the company has been selling performance and style at a pace exceeding all competitors. The current analysis looks at the connectivity present within NIKE's 'thinks for your feet' as a semiotic marketing pitch intended to redirect the company's strategy toward a large segment of consumer footwear purchasers working in the technological sectors of the global economy, and especially those who otherwise do not use those products for sports -- or at least not the corporeal muscularity that was the brand's association one decade ago.
In 2009, NIKE underwent a brand reorganization initiative…… [Read More]
This strategy of customization increases sales and profits per pair of shoes produced.
Successful Acquisitions and Partnerships
Nike acquired Official Starter Properties and Official Starter in later 2004. These two entities were the sole owners and licensors of the Starter, Team Starter and Asphalt brand names as well as master licensee of the Shaq and Dunkman brands (a line of athletic apparel, footwear and accessory products for the value retail channel). These two acquisitions and more like them are providing Nike with a broadened product strategy and the ability to better compete globally.
Launch of new technology marketing strategies and products by competitors
Nike faces significant competition from its two closest competitors, Adidas and eebok, which recently released technologically superior footwear products. In Adidas continues to be the more active of the competitors, releasing Adidas 1, which is innovative in that it re-adjusts the shoe to the customer's foot…… [Read More]
It is more than likely that these subsidiaries will attain this financial objective, given the fact that they have tripled their revenues and significantly increased their pretax income contribution. Another objective of Nike's strategy consists in optimizing the company's portfolio. This objective can be approached on medium term and on long-term.
15. Who are the following individuals in the company's organization structure:
Members of the Board of Directors.
The company is represented by:
Chairman - Philip H. Knight
President (CEO) - Mark G. Parker
Members of the Board of Directors - David J. Ayre (Vice President), Lewis L. Bird (President, Subsidiaries), Donald W. Blair (Vice President), Mary Kate Buckley (Vice President), Craig Cheek, Thomas E. Clarke, Charles S. Denson, Gary M. DeStefano, Trevor Edwards, Adam S. Helfant, Joaquin Hidalgo, Elliott Hill, P. Eunan McLaughlin, Eric D. Sprunk, Lindsay D. Stewart, Hans van Alebeek, oland P. Wolfram, oger…… [Read More]
Nike Case Study
There are three basic concerns about Nike's manufacturing policies and practices that have left critics, including Jeff Ballinger, wary of their employment policies. The first practice is that the Nike manufacturing plants are not considered to by their critics to be run in a safe and efficient manner. The second practice is that Nike has employed workers younger than it could legally employ in the United States. The third practice is related to the first two practices and is more comprehensive; "Nike was an early target for the very reason it's been so successful. Its business model was based on outsourcing its manufacturing, using the money it saved on aggressive marketing campaigns" (Nisen, 2013). The three problems are distinctly interrelated. The reason that outsourcing becomes a money-saving business option is that many locations outside of the United States fail to offer the same protections for workers that…… [Read More]
In this order of ideas, when the adults are parents who supervise and approve, Nike had to convince the parents that there was more behind the international brand. Parents has to realize the high quality of the Nike sports ware and realize that one product bought from the manufacturer would last much longer that other products and is therefore worth the additional money.
From a second major stand point, the adults' target market had to be regarded as a buying force, not just supervisor and approver. This approach became necessary when not all adults are parents and even more, regardless of their quality of parent or not, the adult is himself a consumer and a sports practitioner.
In regard to the second approach, where the adult is the force which increases the company's sales and therefore profits, the marketing campaign had to be focused on those features which interest the…… [Read More]
This acts as a hedge in business swings both regionally and with respect to major customers. The company's sales are split between North America (35.2%), Europe (20.4%), Greater China (9.1%), Emerging Markets (10.7%), Central and Eastern Europe (6%), Japan (4.6%) and "other businesses" (13.3%), the latter including for example its Cole Haan clothing line. This diversification has allowed Nike to enjoy strong performance even with the economic downturn, as increased sales in emerging markets almost completely offset sales declines in estern markets. Nike hopes to increase its degree of geographic diversification in the future in order to better insulate itself from regional economic difficulties.
In its supply chain, Nike typically utilizes third-party producers. These producers are typically dependent on Nike for volume. The company's supply chain is focused on three countries primarily, those being Vietnam, China and Indonesia, which account for 94% of Nike's production. Production is also diversified, with…… [Read More]
By really narrowing down the candidate list, Nike also reduced its turnover rate from 87 to 51%; with so many layers of cuts Nike ensured it got the exact type of candidate it wanted.
Yet, despite the positive advancements the company made in its hiring process, there are potential Equal Employment Opportunity (EEO) violations within its basic framework. First, not all applicants where given the same opportunity within the personal interview, with candidates deemed more desirable receiving more time. This then fails to provide an equal opportunity for those applicants who came in together. Secondly, undesirable behaviors were a major part of the computer interview. Behavior based interviewing can potentially be discriminatory to individuals with particular disabilities, including behavioral disorders. Additionally, there was a long application process, with applicants stating it was an arduous experience (Developing Effectiveness in Human esources 285). Thus, individuals with a disability could have had…… [Read More]
NIKE Please title SLP 1 Please include works cited
Identify and briefly describe the organization you are going to use. Why do you think it will be an interesting focus for your application of economic ideas?
Nike Inc. is a reputable organization and it is globally recognized as an emblem of the modern day life, style, as well as American symbolism. Nike is a popular trademark among the sports apparel and shoes buyers, of both genders, and of all ages. The Nike products are appreciated around the world for their high quality, but also for the trend and social statement they make.
From an economic standpoint, Nike Inc. is noteworthy to assess due to a wide array of features with increased relevance to the economic analysis. Some of these elements include the large size of the company, its access to resources, its highly debated outsourcing operations or its financial…… [Read More]
At the heart of Nike's approach to managing organizational performance is its creating a culture of empowerment. This combines with the use of targets and measures to manage organizational performance both proactively and retroactively. It details these approaches in its Corporate Social esponsibility eport (2013). These tactics relate well to the approach outlined in Cascio (2013) of define performance, facilitate performance and encourage performance.
The first part of Nike's approach is to create a culture of performance, which is the facilitate and encourage parts of Cascio's formula. Nike seeks to be the best in its industry, and this philosophy has become part of the corporate culture. The company believes in performance at all levels, and in removing barriers to performance within its organization. At the heart of the empowerment model is "attract, develop, empower." Nike wants to hire the right people from the outset, which places significant emphasis on…… [Read More]
Nike’s decision to tap into “woke culture” and turn the out of work former NFL quarter Colin Kaepernick into a brand ambassador has been a controversial one since the sportswear company launched its Colin ad campaign in 2018. This paper discusses the strategic issue underlying Nike’s controversial campaign and shows how it was intended to leverage “woke culture” and gain competitive advantage in an industry that had largely stayed quiet on socio-political issues. This paper provides an external analysis, internal analysis, and financial analysis before addressing the strategic issue. Alternatives are also discussed along with a recommendation and an implementation plan. Before beginning, background information on Nike is provided here below.
Nike’s Vision is to “to bring inspiration and innovation to every athlete in the world.” Its mission is to create “groundbreaking sport innovations, by making our products more sustainably, by building a creative and diverse global…… [Read More]
Why Nike Needs to Cut Colin Kaepernick
Nike’s decision to tap into “woke culture” and turn the out of work former NFL quarter Colin Kaepernick into a brand ambassador has been a controversial one since the sportswear company launched its Colin ad campaign in 2018. Nike needs to change the way it approaches its consumer base in America while simultaneously addressing the supply chain issues that have arisen as a result of COVID-19, which has caused major production problems for Nike in Asia. While Nike has been active in promoting the ultimate Trump antagonist in Colin Kaepernick, it is now time to bury the hatch and put America first but cutting ties with Kaepernick and opening up production in the US so as to 1) bring manufacturing back to America and solve the supply chain problems caused by the virus, and 2) to help put Americans back to…… [Read More]
By developing and instituting a strict code of ethics for its suppliers, Nike would solve this problem. Furthermore, such a code would not necessarily increase costs. Nike could force their suppliers to institute the code and absorb the costs. Although Nike has been a valuable flashpoint for sweatshop critics, a strong code of ethics would remove much of the criticism. The critics could still target Nike, but they would lose credibility in the process; there are other companies they could target at lower risk.
Step 1: Identify Desired Outcomes (CEO, VP-CSR, legal team, PR team)
Step 2: Draw up Code of Ethics (VP-CSR)
Step 3: Transmit Code to production sites (CSR team, HR team, Production team)
Step 4: Code enforcement (Production team, CSR team)
Step 5: Code communication, internal & external (CSR team, PR team)
The second best choice is to ignore the issue. Ultimately, the…… [Read More]
Nike's Marketing Process:
Marketing is generally defined as a social process through which individuals and groups acquire what they need by developing and exchanging products and services with others. This process involves planning, evaluation, execution, and management of programs that are developed keenly to facilitate free transfer of values with the intended audience to accomplish the objectives of the business. The success of any private or public company is dependent on its core marketing concepts and the various elements of the marketing process. One of the major examples of a public limited company that has demonstrated superb marketing skills is Nike. The firm's marketing skills have emerged from the fact that it has developed the ever-present swoosh into one of widely recognized brand symbols across the globe.
Nike's Marketing Concepts and Marketing Process:
As previously mentioned, Nike's superb marketing skills are evident through the power of its logo and brand…… [Read More]
How important is the setting of long-term financial goals/objectives in the financial planning of the Nike Inc. Please explain your reasoning
Long-term financial planning is beneficial for all stakeholders both directly and indirectly involved with Nike Inc. Long-term financial planning is what has allowed Nike to be considered the preeminent sporting brand in the world (Schwartz, 2010) Too often, the emotional characteristics of the marketplace place undue financial pressures on a particular organization. One only needs to look at the current global environment to see the implications on short-term gyrations on business sentiments. These sentiments serve as a self-fulfilling prophecy of sorts that distorts the long-term financial objectives of a company with the short-term business initiatives in which it undertakes. By focusing primarily on the long-term, companies are better prepared to effectively navigate the natural vicissitudes of short-term market fluctuation. Nike is a prime example of this long-term focus.…… [Read More]
5% of total liabilities. Their retained earnings, on the other hand, total $5.073 billion. The heavy use of retained earnings is partially explained by their view of themselves as a growth company. hile they pay a dividend, Nike prefers to re-invest much of its profits back into expansion. They do not feel that the market has matured sufficiently to stop their aggressive growth strategy. Another consideration in their capital structure is the cost of capital. On account of its low volatility, Nike has a low cost of debt, approximately 6.8% using CAPM. Their long-term debt is primarily a revolving credit facility. The rate, based on their a+ rating, is LIBOR + 0.15%, which would equate to 4.12% based on the October 15th price of the 1-year LIBOR. If anything, Nike could become more financially efficient by increasing their use of debt financing.
Nike places strong emphasis on human resources. They…… [Read More]
(1998). "The Trouble with Nike" Motley Fool. Retrieved November 17, 2008 at http://www.fool.com/Features/1998/sp980324TroubleithNike.htm
Parker, Mark. (2006). "Nike's Strategy for inning the Footwear Game" Nike F1Q Conference Call Transcript retrieved November 17, 2008 at http://seekingalpha.com/article/17559-nike-s-strategy-for-winning-the-footwear-game
Corporate author, Nike. (2008). "Company Overview" Nikebiz.com. Retrieved November 17, 2008 at http://www.nikebiz.com/company_overview/
Cox, Beth. (1999). "Nike Decides to Just Do it on the eb" InternetNews.com Retrieved November 17, 2008 at http://www.internetnews.com/ec-news/article.php/67101
Barron, Kelly. (1996). "Nike to Enter Premium Sunglass Market" Orange County Register. Retrieved November 17, 2008 at http://findarticles.com/p/articles/mi_hb5553/is_199610/ai_n22323618?tag=content;col1
No author. (2007). "No Boys Allowed: ill Gender Segmentation be Nike's inning Strategy?" Seeking Alpha. Retrieved November 17, 2008 at http://seekingalpha.com/article/31899-no-boys-allowed-will-gender-segmentation-be-nike-s-winning-strategy
Roll, Martin. (2008) "Branding and Celebrity Endorsements" Venture Republic. Retrieved November 17, 2008 at http://www.venturerepublic.com/resources/Branding_celebrities_brand_endorsements_brand_leadership.asp
Doyle, Nelson. (2007). "The orld's Most Recognizable Symbols and Trademarks" Bizcovering. Retrieved November 17, 2008 at http://www.bizcovering.com/Marketing-and-Advertising/the-orlds-Most-Recognizable-Symbols-and-Trademarks.52644
Rayport, Jeffrey (1996). "The Virus of Marketing" Fast Company. Retrieved November 17, 2008…… [Read More]
The appeal of the Nike Free is precipitated by the growth of interest in the 'barefoot running' trend, the growing proclivity of individuals to wear sneakers for reasons of fashion, and the growing footwear market in Turkey.
Goals and Measurements:
The goal is to penetrate the Turkish market and will be measured according to the achievement of incrementally spaced sales goals. Projected sales expectations will be measured against real sales at the end of 6 months, 1 year and 2 years.
Strategic Marketing Goals:
Strategic marketing goals include the targeting of young users, the establishment of an affiliation between the shoe and desirable health goals and a pairing of the shoe with an image of hip, dynamic fitness orientation.
Tactical Marketing Goals:
Tactical marketing goals will revolve on the promotion of medical evidence of the health benefits of 'barefoot running.'
ith a $20 million budget, Nike Free's…… [Read More]
Operations Evaluation of Nike Incorporated
Marketing Mix Price
Marketing Mix Place
Factories Based on Region and Product
Current Situation of Footwear Industry
Marketing Mix Product
Nike Current Situation
Marketing Mix Promotion
Changes in Operations orkers at Factories
Code of Conduct Grade Assessment
Operations Evaluation of Nike Incorporated
Understanding how globalization affects a company will be analyzed to explore how Nike Incorporated handles the multiple risks and capitalizes on the benefits of such expansion. As Nike has faced immense growth and criticism due to the complex business model that has led to the number one position in the athletic footwear industry. It has been a challenge to balance strong organizational performance along with required corporate ethical standards expected for a global leader. A critical evaluation of Nike Inc. will…… [Read More]
Nike was founded in 1964 as Blue Ribbon Sports, and became Nike in 1971, by Bill Bowerman and Phil Knight, the latter going on to become the company’s long-serving CEO (O’Reilly, 2014). Today, Nike describes its business in the 2018 10-K as “the design, development and worldwide marketing and selling of athletic footwear, apparel, equipment, accessories and services” (p.55). In addition to the eponymous brand, Nike markets Converse, Hurley, and entire Jordan brand, and others. Nike’s revenues in 2018 were $36.397 billion, up nearly 6% from the year previous. Net income was $1.933 but this was down significantly from the prior year, as the company recorded a much higher income tax expense.
Nike competes in the sports apparel industry, which is estimated to be worth around $184.6 billion worldwide, meaning that Nike holds about a 19.7% share. The industry is mature but still growing, with a CAGR of 4.3% over…… [Read More]
The target market for the headscarves consists of Muslim women. In general, the product will appeal mostly to those aged 12-40, as that is the prime demographic for athletic wear, and as well that demographic may be more liberal with respect to things like exercise. It is important to note that there are significant differences between types of Muslims, so there is no one universal headscarf style that will appeal to all groups, or even be acceptable to all groups. A variety of designs will be needed in order to meet the needs of the target market. The target market is otherwise the same as for Nike's regular client base. This means younger, fairly well-educated, in the case of Muslims more liberal, and with a reasonable income that allows them to purchase Nike's premium-priced products.
The market is a niche market. In the United States, there are…… [Read More]
WRC was a rival association and since Nike had been supporting FLA for sometimes, Nike saw University of Oregon's decision as a kind of betrayal, which led to immediate withdrawal of support. University of Oregon stood by its decision, which sets an example of right conduct.
It is important to understand that multinational firms have a duty towards the community and if they fail to comply, we, the consumers should use our purchasing power as a pressure tactic. Payment of appropriate wages is a responsibility of the firm and so is maintenance of good working conditions. Therefore when a firm as large as Nike fails to take into account its responsibilities, it is important that consumers pressurize them into seeing this. The only tool that we have is our purchasing power. If we decide not to purchase products made under certain sub-human conditions, it will automatically put the firm under…… [Read More]
For any strategic planning activity to be effective there must be the ability to quickly define process-level changes to increase competitive advantage. Mintzberg's critique of the strategic planning process is illustrated in the shortcomings of the Ashoff Matrix in this regard.
Lack of strategic prioritization of projects within the context of the Ansoff Matrix - the Ansoff Matrix does not provide for strategic criteria to be applied to specific projects. The portfolio management approach to strategic planning specifically has been developed to respond to the shortcomings of the Ansoff Matrix and other analytical constructs like it. Portfolio management is in fact the basis for Boston Consulting Groups' Growth/Share Matrix, or as it is commonly referred to, the BCG Matrix.
Lack of quantification of cash generation and modeling of future financial performance - the shortcomings of the Ansoff Matrix as a strategic tool relative to the needs of strategists, specifically at…… [Read More]
Nike should consider training leaders in labor relations and define corporate responsibility requirements. The products that are developed should undergo environmental checks and balances to ensure safe materials are used in the designs as well as equipment in the plants.
With knowledge about labor concerns in house, Nike is better able to proactively investigate their own plants where a complaint may arise. They will also be better prepared to address problems and quickly negotiate equitable solutions. This will reduce the amount of downtime associated with production interruptions due to strikes, walkouts or boycotts.
The level of administrative employees increases overhead and costs for the company. Though these teams labor and environmental oversight professionals are necessary they do not contribute to the revenues of the company directly.
Solution to the Problem
A detailed Ethical Code of Conduct or Corporate Governance Policy that must be adhered to would…… [Read More]
Nike's Energy Bar Marketing Plan
Founded in 1964, Nike is the largest sportswear and fitness company in the world. The company designs, manufactures and markets apparel, accessories, and equipment for a broad variety of sports including basketball, football, soccer, baseball, tennis, and cricket. The company's success in the highly competitive sportswear and fitness can be attributed to product innovation and excellence as well as commitment to consumer needs. ecently, the company ventured into the energy bar market following its complete withdrawal from the golf equipment market. The new product line, dubbed as Nike Fuel +, was informed by the need to focus on fitness as opposed to just sports. Introducing the product provides an important opportunity for the company to widen its market as well as extend its brand. Given the intense rivalry in the energy bar market, a comprehensive marketing strategy is required if the product is to successfully…… [Read More]
Nike apparel company is a steadfast company in the minds of most athletic gear and apparel consumers and in the industry as a whole, with substantial earnings growth even in the last few years of recession it has still managed to record substantial growth. The company has even coined household phrases like "Just Do It" a mark of American influence over the global market. Much of this success has long been attributed to the solid nature of its upper management, namely its long time CEO and co-founder Phillip H. Knight. Nike recently made international news when it announced the retirement of Knight to the press, which in the business world can mean at least short-term trouble. The announcement was made with less than sixty days to pass before what would call a revolutionary change for the company. Though Knight will stay on as Chairman of the board, his intention is…… [Read More]
Nike's current ratio slightly improved, indicating higher liquidity and an improvement in its ability to meet short-term debt obligations. This did not reflect an increase in inventory, because the company's Quick ratio grew by approximately the same percent.
Nike's Quick ratio improved by approximately 3.5%, indicating an improvement in the company's cash position or a decrease in its short-term debt obligations. This might have a lot to do with the fact that Nike derives a significant portion of its income from international sales. Because its revenues are denominated in dollars, money in cash and short-term instruments may have increased in value if they are held overseas in non-dollar currencies. According to Nike's 10-k SEC filing, "Our largest international region, Europe, Middle East and Africa (EMEA), reported 20% revenue growth in fiscal 2003 compared to fiscal 2002. This growth reflected a 15 percentage point improvement due to changes in currency…… [Read More]
Image of very fit woman seemingly running on clouds
Image of eagle flying, wearing a pair of Nike Frees
Image of marathon winner crossing the finish line, wearing Nike Frees
Image of ultra-marathon runner crossing the desert, sweating, wearing next to nothing -- wearing a pair of Nike Frees
Q2. Means-end chain
Vibram FiveFingers are minimalist 'shoes' that look like five-fingered 'gloves' for the feet.
The shoes communicate to gazers that the runner is serious about barefoot running and wants shoes that mimic barefoot running as much as possible.
The shoes allow the wearer to effectively run barefoot without running the risk of scraping the skin of the foot on pavement or getting cut by rocks or broken glass.
More so than an ordinary lightweight shoe, the Vibrams convey to the world that the wearer is a hardcore barefoot runner.…… [Read More]
Nike consistently underreacted to these concerns and as a result created an even larger public relations challenge for themselves by not internalizing it equivalent to a threat to profitability. As with any crisis that gets ignored, the critics only get louder the more they perceive their voices not being heard. For Nike, this continued on for years until they began to aggressively attack the problem as if it were one impacting profits, including the development of auditing and independent monitoring programs, and an open-door policy to Congressional critics who had the power to initial investigations and define if any U.S. laws were being broken or not.
Many of Nike's competitors subcontract production to Asian factories similar to those used by Nike. What was Nike singled out by human rights and labor activists?
Nike was singled out for a variety of reasons. First, the company's lack of seriousness in response to…… [Read More]
Nike television advertisements, as an ordinary girl is transformed into an Olympic runner. Bombarding the airwaves during the 2004 Athens Olympic Games, the "You're faster than you think" campaign is an example of Nike's ability to produce engaging, effective television commercials. hile the ultimate success of these advertising campaigns can only be seen in the quarterly reports of the corporations, from a design and marketing standpoint, the Nike ad is eminently successful. The "You're faster than you think" campaign promotes brand awareness and creates a brand imprint in the consumer brain, but the commercials are also artistic, clever, and entertaining. However, Nike is a large Fortune-500 company with a substantial marketing and advertising budget. Smaller companies such as those listed in Inc. magazine work with a smaller budget and therefore generally produce less dramatic television commercial spots. Moreover, smaller companies cannot afford the prime time Olympics spots like Nike can.…… [Read More]
Nike is one of the best-known athletic companies in the world. It boasts many high-end prestige brands, including its running, basketball, and other types of athletic shoes which can be customized. Nike also offers premium sneakers such as its Jordans and Air Max, which have tremendous cache in terms of style. Nike's new brand of SNKS feature gold or artfully designed sneakers that are not functional for working out but are worn for fashion. Nike also offers fan apparel for a wide variety of major league sports teams. Much of Nike's clothing runs more than a hundred dollars per item.
The company also offers a few lower-cost items but for the most part, Nike has always been a premium brand. There are many cheaper sneakers available but people buy Nike either because of the social cache given to the brand or because they genuinely believe the quality is…… [Read More]
viable marketing plan for the footwear giant, Nike. The plan has been adequately substantiated with thorough research on different factors affecting the firm along with various ways of addressing future challenges. This research paper highlights that Nike is confronted with multifarious issues which need to be negotiated amicably. Result of the study concludes that there is still a world waiting for the Nike to be exploited, outsmarting its competitors employing its innovative and creative business strategy.
MINI usiness / MARKETING PLAN -- NIKE, INC.
In 1962, two individuals from the University of Oregon established a small company with the name of lue Ribbon Sports (RS). In 1972, the company was renamed to Nike, the name adopted from the Greek goddess of victory. At present, Nike owns facilities in Oregon, Tennessee, North Carolina and The Netherlands. It also operates leased facilities for 15 Nike-towns, over 80 Nike Factory Stores,…… [Read More]
The Nike ethical dilemma
The Nike Company is undoubtedly ne of the most established companies with a strong brand across the globe. It has a big name a wide coverage across the globe hence by 2007 it was estimated to have employed 30,000 people across the globe and had $16 billion in terms of revenues. They have most of their factories located in the Asian countries like Malaysia, Pakistan, India, Indonesia, China, Taiwan, Philippines, Thailand and Vietnam. Though it was predominantly a shoe manufacturer and seller, Nike diversified their dealings into other merchandise like the wears in tennis, badminton, baseball, golf, cricket among other sports (Nike Inc. 2010).
Nike has had several accusations over the decades of having their products being made in "sweatshop." This means they have employees who are underage working in deplorable conditions with meagre pay that can only be referred to as below subsistence. It…… [Read More]
Corporate Social esponsibility
Nike does not have a statement of corporate responsibility. On its website, the company has highlighted a number of issues that would traditionally fall into that category, but it does not specifically use the term. This appears to be that Nike is projecting that it has moved beyond the overly-simplistic, jargonistic vision of CS to embrace something that is genuinely meaningful. The company discusses actual issues in specific on its website, in the section that would otherwise be called CS.
Nike has instead introduced a concept that they call "sustainable innovation." At the heart of this concept is that innovation is disruptive, and that this is something that not only can drive the company forward in terms of its products, but can also drive the company forward in terms of the impact that it has on the world. The company discusses a few different issues, including climate…… [Read More]
Kaepernick Nike Ad
Colin Kaepernick, the former pro-football quarterback, has become the face of Nike in a new controversial campaign that has aimed to leverage Kaepernick’s status as an anti-establishment, counter-culture hero of social justice. Kaepernick, who became famous for being the first to “take a knee” during the national anthem sung before kickoff, soon found himself unemployed by the NFL (an organization he thereupon sued for discrimination). By trying to draw attention to social injustice during a particularly turbulent time in recent years when the Black Lives Matter organization got underway in response to a rising perception of police assaults on the black community, Kaepernick became a pariah in the corporate NFL world. Nike, however, like many other professional athletes—from LeBron James to Tom Brady (ESPN; Sanchez)—has shown support for the message that Kaepernick was trying to communicate. Nike has even gone a step further and tried to capitalize…… [Read More]
Agile transformation strategies or project management have emerged as important components in the modern business world. Agile techniques were traditionally designed for the tech world and were mostly applied in IT projects and companies. However, these techniques have the potential to transform an organization’s culture and project management processes, which has warranted their application in the non-tech world and non-IT projects. Agile mindset is primarily a collaborative technique for managing work, which is applicable to a wide range of project types and industries. Nike is an example of a company that could benefit from using an agile mindset in its project management processes in research and development teams.
The company can apply an agile mindset in R&D project management through beginning with a focus on providing the most important features first during project management while assuming that any necessary changes would be brought by customer demand or market changes.…… [Read More]
Organisational culture is defined as a "consistent, observable pattern of behaviour in an organisation" (Watkins, 2013). The patterns of behaviour that define a culture are reinforced through the artefacts of culture, including slogans, imagery, written statements, posters, mission statements and vision statements. Culture is therefore reinforce directly by the organisation, which sends the message about the patterns of behaviour that define the organisation repeatedly, because repetition is critical to ensure that the message is received and implemented consistently. Hofstede (2015) argues that there are a number of different dimensions along which an organisation's culture can be understood: means-oriented versus goal-oriented, internally-driven vs. externally-driven, work discipline, open vs. closed system, degree of formality, employee-oriented vs. work-oriented and the degree to which an employee is expected to identify with the organisation. Some organisations have strong cultures, others have weak ones, but the best organisations have cultures that closely align with firm objectives.…… [Read More]
Nike and Puma are two of the major competitors in the international athletic footwear and apparel industry. Nike was founded in 1964 and is based in Beaverton, Oregon, a Portland suburb. Puma was founded in 1924 and is based in Herzogenaurach, a small town near Nuremburg in the Franconia region of Bavaria. Puma was founded by two brothers, but they later split and one would form Adidas. Both companies operate internationally, with roughly the same business model of overseas production and marketing-driven sales. Nike makes more extensive use of celebrity endorsements, but Puma sponsors many sports teams as well. Nike has 34,000 employees while Puma has 9500 employees. Nike is the larger of the two companies. Nike has revenue of $20.8 billion and net income of $2.13 billion. Puma has revenue of €2.7 and net income of €202 million.
Slide Two: Both firms have faced ethical challenges, primarily…… [Read More]
Nike Converse Merger 2003
One of the biggest mergers witnessed in the 21st century is the one that happened between two popular footwear companies, Nike and Converse, in the year 2003. It was a historic deal for two important reasons, the price involved and the pedigree of the two giants in the industry. Affirming Nike’s confidence about the deal, Nike’s president, Tom Clarke said Tom Clarke said, ''Converse is one of the strongest footwear brands in the world, with a great heritage and a long history of success”, (Wayne, 2003). Looking back 16 years, the same brand, Converse, under Nike’s management, has astronomically boomed in acceptance, recording a very high sales in many regions across the world and that has in no small measure added to Nike’s revenue. For instance, in the year 2015, Nike recorded a remarkable growth of 28% increase worth of $538 from the first and the…… [Read More]
Nike Case Study
Nike are undergoing change, after initial difficulties adapting to a changing environment, a strategy of acquisition, combined with decentralisation was implemented, facilitating specialised focus on different product lines. However, there is still the potential to increase the overall level of efficiency within the companies design processes.
One approach may be the development of an intrepreneurship, a model that supports innovation and development associated with entrepreneurial processes in large organisations (Cowles, 2013). Within this approach, not only would there be the division of the various researchers, there will also be placed in divisions with the aim of emulating small organisations where entrepreneurial stretch would be required. The aim of this is to increase original thought and innovation stimulated by their environment (Cowles, 2013).
The organisation could also adopt a Blue Ocean Strategy. This the company would need to examine the current marketplace, and identify markets which are currently…… [Read More]
The author of this report has been asked to review and assess the recent 10-K filing that Nike put forth to their investors, the SEC and the public at large as part of their burden as a public company. The items and factors that will be assessed when it comes to the Nike and their 10-K will include the format of their balance sheet, whether the author of this report agrees with the presenting of the figure son the 10-K being at fair value, whether Nike has any intangible assets, what is included in the Long-Term Liability balance, the biggest source of cash that Nike realized in their Statement of Cash Flows and the biggest use of cash that is manifested in the same. While many deem Nike to be in strong financial shape, a drilldown in their 10-K reveals some interesting items.
For the purposes of…… [Read More]
4P's Marketing Mix
Nike Marketing mix
Nike as a company was initiated by two visionaries from Oregon, Bill Bowerman and a runner at that time for the University of Oregon Phil Knight. They were then working together in athletic with Knight being the runner supervised by Bill. Bill saw the endless possibilities that existed within people in terms of sports potential and it was with this that they set the tone for the company in 1972. This has remained the inspiration that runs the company to date and keeps the employees of the company from one generation to the other motivated to uphold the motto of the company (Nike, 2011). The company has grown from being a U.S. based footwear distributor to a mega world supplier of athletic shoes, equipment and apparel whose dominance is unrivalled in the entire globe.
The goal of the company is to have a legacy…… [Read More]
"Snakes are symbols of both death and fertility in many cultures" (No author). Therefore, it is highly significant that "Her head is made up of the joined heads of two snakes, and the skirt that she wears is made of snakes woven together" (No author). In keeping with the motif of the life that she is emblematic of, the breasts of this goddess are substantially enlarged to illustrate her role as nurturer. However, such effervescence is also tempered with death and its fearsome appearance and role within life, which is demonstrated in the statue by the "garment of human skin" (No author) Coatlicue wears as well as the eminent skull in her midsection. There is a definite aura of gruesomeness manifested by the statue, typified by the goddesses' necklace of hearts and hands, and the claws of her hands and feet (better to dig graves with) (No author), that is…… [Read More]
In addition, it will be necessary for the company to continue to use technology to stay on the cutting edge of shoe innovation.
Adidas." MarketLine 2006. Datamonitor database. Datamonitor. University of Phoenix, Phoenix, AZ. November 28, 2006 http://dbic.datamonitor.com.
Beckett, W. "Merging Performance and Fashion." Women's Wear Daily 192(39) 2006 Aug 24: 9. Business Source Complete. EBSCOHost. University of Phoenix, Phoenix, AZ. November 28, 2006 http://web.ebscohost.com.
Binole, G. "Asian Market Forces Could Affect Nike." Portland Business Journal. (1997 Nov 7). November 28, 2006 http://portland.bizjournals.com/portland/stories/1997/11/10/story3.html.
Callaway Golf." MarketLine 2006. Datamonitor database. Datamonitor. University of Phoenix, Phoenix, AZ. November 28, 2006 http://dbic.datamonitor.com.
Daley, W. The Emerging Minority Marketplace. No date. U.S. Department of Commerce. November 28, 2006 http://purl.access.gpo.gov/GPO/LPS70698.
Fredeen, B. Knowing Nike's Customers. 2000 Feb 1. Motley Fool. November 28, 2006 http://www.fool.com/news/foth/2000/foth000201.htm. v.
Ellis, K. "Global Competition Intensifies Industry Lobbying." Women's Wear Daily 191(86) 2006 April 24: 14-15. Business Source Complete. EBSCOHost.…… [Read More]
Nike's tremendous success up until the mid-90s?
Nike was founded by Phil Knight in 1964 when he put his MA project into practice along with his former track coach ill owerman. At that time, the companies which were already established were manufacturing the sports shoes in economy that was high waged; while the project showed that decreasing the costs of transport would mean that the company could gain high sourcing from the countries that had low costs of labor. Keeping this in mind, Nike started importing shoes from Japan; however with the birth of waffle trainer by owerman one night, the company became a designer logo rather than an importer. The strong personalities and the love for sports of Knight and owerman played a lot of role in defining the purpose of Nike and it attracted a lot of confident and young employees to the company. The logo of Nike…… [Read More]
In addition to these accomplishments, the company also branched into over a dozen businesses and has successfully created one of the most successful supply chains globally today (Barrett, 2003). Along the way to these stellar accomplishments however Nike has been accused of going too easy on suppliers who violate child labor laws and having questionable ethics (Doorey, 2011). It has also been experiencing high legal costs due to the various approaches the company takes to protecting its brand (Nike Investor Relations, 2012). As the company pursues high growth opportunities in women's apparel including shoes, one of the fastest growing markets it competes in, it is challenged with relatively moderate growth in sales, relatively flat gross contribution margins at 10% and a Return on Assets (ROA) of 14% with little growth over the period of analysis shown in the Appendix. On top of all these factors, the competitive climate of the…… [Read More]
As employees have expertise in manufacturing products, they should be paid for that expertise. Low labor figures for manufacturing can question the quality of the products the company is selling to consumers. Not to mention that if Nike has recalls of products, consumers may view this as bad management practices that produce low quality products for high prices.
here marketing takes a big portion of expense dollars, manufacturing labor expense should be balanced with the marketing expense. Unbalancing in these areas can bring questions of integrity and quality of products. It could also place a bad taste with investors in determining the ethics of the company's management team. Nike should spend less on marketing and more on manufacturing labor costs to show a higher quality of products manufactured. Nike should also evaluate the marketing expenses and ensure that waste is eliminated in the process. These changes in the business processes…… [Read More]