...Case Analysis for: “The Trouble with filling shoes at NIKE” (Fill Title) Executive Summary Nike founder Phil Knight is a successful entrepreneur. When Phil Knight was ready to step back from direct supervision, he handpicked ex-head of S.C Johnson William Perez to take over. With just 13 months as CEO, William Perez was forced out of his position and Phil Knight once again stepped in to “conquer all.” The core problem is that Phil Knight can and will not be able to find someone who can successfully fill his shoes. Contradictory to his original wishes, Knight lacked to see Perez’s new set of discipline. The problem was that Nike insiders and founder Phil Knight were resistant to any sort of change. Many Nike insiders believed that Perez did not have an intuitive sense of Nike as a brand, and disagreed with his discipline of relying on the “spreadsheet, analytical approach as opposed to having a good creative marketing sense.” (Griffin, 2010) The constraints regarding Bill Perez as CEO of Nike, was that he had to compete with the company’s managerial talent that has from this date, been mostly homegrown. Before long, Perez struggled to work effectively with numerous executives, including two Nike lifers, Mark Parker and Charlie Denson. Instead of focusing solely on the culture of Nike, the organization should focus on organizational and managerial discipline within the company. Implementing the best solution for Nike would be to create an organization that does not...
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...Strategic Marketing: Nike: A Case Study: . Published: 14th October 2013 Table of Contents 1. Assignment Topic 3 2. Word Count 3 3. Executive Summary 3 4. Introduction 4 5. Nike – Where it came from 4 6. Nike – Market orientation, challenges and missteps 5 7. Nike’s labour practices shame and the turn around 8 8. Nike’s “She runs the night campaign” 9 9. Conclusion 10 10. References 11 11. Appendix A - Case Study 13 Nike - The art of selling air 13 1. Assignment Topic In your case report, identify three to four marketing challenges covered in this subject, and address how those challenges can be met using the principles developed in this subject. Be sure to cite and reference the name and source of your case in your assignment report (as well as other references you use). The case study “Nike – The art of selling air.” has been included for reference in Appendix A of this paper. 2. Word Count This paper contains a total of 2581 words from the start of the introduction to the end of the conclusion section. 3. Executive Summary Companies today face many challenges to maintain market share and differentiate themselves from a highly competitive and ever evolving market place. Marketing is crucial to a company’s long term success. The aim of this paper is to use the “Nike - The art of selling air.” case study and concepts from strategic marketing theory to identify marketing challenges and how those challenges...
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...Summary In 1988, an Indonesian union newspaper published a study of bad working conditions in a plant making Nike footwear. In 1994, an accounting firm, Ernst and Young, were hired to audit code compliance by making spot checks at Nike factories. In that audit was information concerning Nike factory conditions and how the workers were being mistreated. The audit claimed that Nike workers in Southeast Asia were exposed to toxic chemicals, subjected to physical, verbal, and sexual abuse, forced to work an illegal excess overtime at minimum wage, and suffered poor hygiene. Nike, trying to save their company spent many years claiming that these accusations were false. However, when people compared claims from Nike to the audit, they found some of the details to be inaccurate and/or misleading. Marc Kasky, a California resident and activist, sued Nike for unfair and deceptive practices under California's Unfair Competition Law. Kasky alleged that Nike made "false statements and/or material omissions of fact" concerning the working conditions under which its products are manufactured. Nike filed a demurrer, contending that Kasky's suit was absolutely prohibited by the First Amendment. The California Supreme Court dismissed the case as “improvidently granted.” However, late in 2003 Kasky and Nike announced a settlement. In return for Kasky dropping the case, Nike agreed to give $1.5 million to an industry-friendly factory monitoring group. Analysis Kasky, in my opinion, was...
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...CASE ANALYSIS NIKE THE SWEATSHOP DEBATE Summary of the Facts Nike was established in 1972 by former University of Oregon track star Phil Knight. ... Nike has $10 billion in annual revenues and sells its products in 140 countries. ... Nike has been dogged for more than a decade by repeated accusations that its products are made in sweatshops where workers, many of them children, slave away in hazardous conditions for less than subsistence wages. ... Many reporters, TV shows, companies and organizations have repeatedly exposed negative comments towards Nike. For example, a “48 Hours” news report aired on October 17, 1996 regarding a Nike factory in Vietnam, which was visited by reporter Roberta Baskin. The reporter discovered that Nike hired millions of workers who are literate, disciplined, and desperate for jobs at wages lower than minimum wage. Another example of the criticism against Nike came from a newsletter published by Global Exchange. The newsletter uncovered that the majority of Nike shoes were made in Indonesia and China, countries with governments that prohibit independent unions and set the minimum wage at rock Nike: The Sweatshop Debate The purpose and intent of this paper is to describe the legal, cultural, and ethical challenges that face the Nike Corporation in their global business ventures. This paper will also touch on the roles of the host government and countries where Nike manufactures their products and the author will summarize the strategic and operational...
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...CASE ANALYSIS NIKE THE SWEATSHOP DEBATE Summary of the Facts Nike was established in 1972 by former University of Oregon track star Phil Knight. ... Nike has $10 billion in annual revenues and sells its products in 140 countries. ... Nike has been dogged for more than a decade by repeated accusations that its products are made in sweatshops where workers, many of them children, slave away in hazardous conditions for less than subsistence wages. ... Many reporters, TV shows, companies and organizations have repeatedly exposed negative comments towards Nike. For example, a “48 Hours” news report aired on October 17, 1996 regarding a Nike factory in Vietnam, which was visited by reporter Roberta Baskin. The reporter discovered that Nike hired millions of workers who are literate, disciplined, and desperate for jobs at wages lower than minimum wage. Another example of the criticism against Nike came from a newsletter published by Global Exchange. The newsletter uncovered that the majority of Nike shoes were made in Indonesia and China, countries with governments that prohibit independent unions and set the minimum wage at rock Nike: The Sweatshop Debate The purpose and intent of this paper is to describe the legal, cultural, and ethical challenges that face the Nike Corporation in their global business ventures. This paper will also touch on the roles of the host government and countries where Nike manufactures their products and the author will summarize the strategic and operational...
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...Nike Global Business and Challenges Once a company, like Nike, decides to become a global entity, it will often experience an increase in profitability. Unfortunately, companies like Nike must overcome some difficult obstacles before establishing a successful business in a foreign country. Some of the issues of concern are child labor laws, wages, and outsourcing’s effect on sales. Because of this, most widely known companies have presented various cases to defend their positions on conducting business in the foreign country. One such example is a Nike sweatshop labor case that stirred up a large amount of controversy over ethical business practices. Even though Nike has attempted to recover from the bad press it received about the sweatshops, it still struggles to defeat the negative feelings from people across the United States. Thus, a summary of the case, the legal, cultural and ethical challenges, an understanding of the roles the host governments play, and the strategic and operational challenges faced are important to gain a thorough understanding of the issues and case. Most people could easily define Nike and are familiar with the products offered, like the customized options available in the Nike store online, Nike Sportswear, Nike Women, Nike Basketball, and Nike Football. These products, among others, have led Nike to a profit of $15 billion in 2006 and a catchy “Just Do It!” slogan (Hill, 2009). The company outsourced its manufacturing plants to several...
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...Course Case No 12 Nike: From Sweatshops to Leadership in Empoyment Praticses Group’ name: 1. Huynh, Tram : ID#: 179105 2. Nguyen, Uyen : ID#: 179119 3. Tran, Xuan : ID# 179128 4. Dinh Tran, Ngoc : ID#: 179139 5. Nguyen, Phuc : ID#: 179150 6. Kim Nguyen : I- Summary: Nike Company was founded in 1964, Nike officially changed its name to Nike, Inc. in 1978. After being launched into public, Nike began its rise in the 1980's and the Nike brand was considered as one of the famous companies specialized in sports shoes all over the world. The lower cost of production and innovation advertising and marketing policies helped Nike to get success and big growth. However, in the mid-1990's, labor rights activists, the media accsused Nike for violations of human rights in their factories in the third-world countries such as Korea, Taiwan, Indonesia, China, and Vietnam. The bad health and safety working conditions, low wages, and discrimination in hiring and firing practices in Nike’s factories were accusations of Nike company. Ernst and Young company audited one of Nike’s factories and discovered that extreme, unacceptable standards of chemicals in Nike’s factories are main reasons caused employee’s health problems. The code of conduct was violated. Protestors, Universities against Nike refused and canceled...
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...Abstract Nike is the world leader in the manufacturing of sports wear and gear. So at first, Nike didn't pay attention to the criticism it was receiving because it was coming from a small group of activists, although later on, the social pressure became very high that Nike was forced to take some measures to quiet down the public who wanted to know what was going on. In this paper we will examine the various difficulties Nike faced as they tried to balance both, the company performance and good corporate citizenship. We will also discuss what I would have done if I was in that position. Summary Nike, was founded in 1964 by Phil Knight, Nike's business model was developed by Knight while attending Stanford Business School in the early 1960's. In 1998, Nike was the leader in the sports shoe industry, with annual sales of $9.5 billion and a 40% share of the American sneaker market. It became a lightning rod for protest when alleged “sweatshop” conditions where happening in Southeast Asia. May 1998 is when Phil Knight, the founder and CEO, admitted that “the Nike product has became synonymous with slave wages, forced overtime, and arbitrary abuse.” What people couldn’t understand was how Nike could get associated with deplorable labor practices. The strategy that Knight developed involved outsourcing all manufacturing to contractors in low wage countries and pouring the companies resources in high profile marketing. They where trying to take the blame...
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...Nike Case Study Shiffaun L. Alston Jack Welch Management Institute Professor R. Chua JWMI 550 Sunday, December 7, 2014 Executive Summary Nike’s business model was based in outsourcing its manufacturing, then using the money it saved on aggressive marketing campaigns. However, the process of outsourcing work internationally proved to be problematic for Nike in a variety of ways particularly in regards to low wages provided workers and poor working conditions and environment. This paper intends to evaluate Jeff Ballinger’s argument against Nike, as well as determine how convincing Nike’s response was to Ballinger’s allegations. Lastly, strategies are provided as to how Nike moves forward after the smoke of the crisis has cleared. Evaluation of Jeff Ballinger’s argument against Nike Ballinger’s main argument that “any company has a significant obligation towards even its lowliest workers” is a very convincing one on many levels—social, ethical, and financial. Companies, such as Nike, make large profits and benefit tremendously from workers’ low wages in their international manufacturing companies. After reviewing Exhibit 1 (Nike Inc. Financial History 1989-1999) and Exhibit 4 (Summary of Revenue and Expense Profile of Minimum Wage Workers by Demographic Type) it would appear that Nike could indeed offer its workers higher wages at least to a level where workers can survive and help their families, some additional benefits, and provide...
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...Kasky v. Nike FACTS: Nike is an Oregon based company who sells its products worldwide. Nike’s products are made by subcontractors in China, Vietnam, and Indonesia who are mainly woman under the age of 24. Nike stated in a memorandum that they will assume the responsibility of their subcontractor’s conformity to local laws, overtime, occupational health and safety standards, environmental protection, and minimum wage. Nike was scrutinized by 48 Hours and many other media outlets after 48 hours broke the story about terrible working conditions where Nike products are made. The media accused Nike of paying their workers under the local minimum wage, required workers to work overtime, encouraging and allowing ovetime hours above local law requirements. There were reports of workers being physically, verbally, and sexually abused in these factories. Workers were also exposed to toxic chemicals, heat, noise, and dust without proper safety regulations which violated local occupational health and safety requirements. After the allegations, Nike responded by saying the defendants statements were false and misleading. Nike and their defendants made these statements to newspapers, public relations, university presidents and athletic directors, and press releases. Nike even publicized a report conducted by Goodworks International, LLC., which found no evidence of illegal or unsafe working conditions at the Nike factories in China, Indonesia, and Vietnam. SUMMARY OF THE PROCEDURE:...
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...Executive Summary Introduction/Background of the study Objective of the study Scope of the study Methodology Project findings Recommendations 1. 2. 3. 4. 5. 6. References Executive Summary As Prahlad and Hat point out, the economies of vastly populated countries such as China, India,and the former Soviet Union present a profusion of consumers and immense growth potential for multinational corporations. The trick is for senior management to fully understand that this market possibility exists and that tapping into it may require a radical departure from the traditional, developed-economy mindset. As Nike’s financial record indicates, market saturation and intense competition in Tier One economies has squelched Nike’s growth trajectory. While the Swoosh continues to penetrate typical Western markets, tapping into the increasing numbers of “middle and lower class” consumers in emerging markets could offer a phenomenal expansion opportunity if the firm can create the right business model. In addition, beyond the potential economic benefits from this venture, Nike’s World Shoe Project also offers a credible response to the labor issues that have buffeted the company, and leverages their efforts to minimize the environmental impact of their production activities. • Introduction/Background of the study The words “Just make me the shoe!” echoed down the boardroom table to Tom Hartage a 17 – year veteran of the running shoe company, Nike Inc. Tom...
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...I. DISCUSSION QUESTIONS, CASE INTRODUCTION AND KEY POINTS Introduction The case opens with Nike’s announcement of a major corporate reorganization, which would shift the company’s focus from a product orientation to a category-driven approach. These new areas were expected to account for more than 90% of Nike’s business moving forward. The goal of the proposed reorganization was to take a more consumer-oriented approach to the market, optimizing the company’s activities to give customers a holistic collection of everything they want and need in a particular category. The case focuses on Nike’s new Women’s Fitness segment and tracks the process of moving various pieces of business into alignment with the new category-driven approach. The reorganization is outlined in detail. What does the experience in Women’s Fitness foreshadow about Nike’s shift to a category-driven approach? How will the other categories avoid the pitfalls that Women’s Fitness encountered? Will Nike be able to institutionalize the process and increase cross-functional efficiency? Summary of key learning points and strategic issues 1. What are the factors a firm must consider when reorganizing its business model? 2. What is/are the best way(s) to target a specific segment? What qualitative data do you need to gather? 3. How do business cycles affect the ongoing enterprise? 4. Who is spending money in your target market? How much are they spending? How may you gain a greater share of...
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...Nike - Social and Ethical Issues http://www.writework.com/essay/nike-social-and-ethical-issues Nike has become one of those global companies targeted by a broad range of campaigning pressure groups and journalists as a symbolic representation of the business in society. In Nikes case, the issues are those of human rights and conditions for workers in factories in developing countries. In the face of constant accusations, Nike has developed a considered response but the criticism of Nike still continues. Nike produces footwear, clothing, equipment and accessory products for the sports and athletic market. It is the largest seller of such garments in the world. It sells to approximately 19,000 retail accounts in the US, and then in approximately 140 countries around the world. Just about all of its products are manufactured by independent contractors with footwear products in particular being manufactured in developing countries. The company manufactures in China, Taiwan, Korea, and Mexico as well as in the US and in Italy. The Global Alliance report on the factories in Indonesia gave the following workforce profile: 58% of them are young adults between 20 and 24 years old, and 83% are women. Few have work-related skills when they arrive at the factory. Nike has around 700 contract factories, within which around 20% of the workers are creating Nike products. Conditions for these workers have been a source of heated debate, with allegations made by campaigns of poor conditions...
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...assignment 2 Tables of content Executive summary………………………………………………………………………………3 1. Introduction………………………………………………………………………………4 a. Purpose……………………………………………………………………………….,4 b. Background…………………………………………………………………………...4 c. Scope………………………………………………………………………………….4 d. Limitation …………………………………………………………………………….4 e. Methodology………………………………………………………………………….5 f. Plan……………………………………………………………………………………5 2. Repair negative social image……………………………………………………………...5 a. Public criticism in the 1990s………………………………………………………….5 b. Responding to the criticism and repair Nike’s image………………………………...5 3. Organizational culture related to sustainability…………………………………………..6 a. Impact of organizational culture to sustainability…………………………………….6 b. Building organizational culture………………………………………………………6 4. Product innovation……………………………………………………………………….7 5. Conclusion………………………………………………………………………………..8 6. Recommendation…………………………………………………………………………8 References list……………………………………………………………………………10 Executive summary Management sustainability is the responsibility of organizations to ensure their operations give economic, social and environmental value while maintaining the resources required for future generation. Sustainability is a part of business strategy today and it can bring competitive advantages for companies if it is well considered. Nike is the world leading company in shoes and sport...
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...Nike, Inc: Cost of Capital CASE SUMMARY In this case, Kimi Ford, a portfolio manager at NorthPoint Group, a mutual fund company, manages the NorthPoint Large-Cap Fund. This fund invests mostly in Fortune 500 companies with an emphasis on value investing. Some of the top holdings of the NorthPoint Large-Cap Fund include; ExxonMobil, McDonalds and GM, these stocks are generally old-economy stocks. Over 2000 and the first half of 2001, the NorthPoint Large-Cap Fund performed very well, earning a 20.7% return in 2000; over the same time, the S7P 500 fell 10.1%. The current time is July 2001 and just a year prior, there was an analyst meeting at Nike to review fiscal year 2001 performance. During this meeting, Nike revealed a plan for revitalizing the company. The company was in need of a kick start as sales were stuck at $9 billion and there was a drop in net income from $800 million to $580 million. To re-energize sales, Nike was going to produce more mid-priced athletic shoes, an area where Nike was weak in previous years. Nike also announced that it was going to push its apparel line which has been growing extremely well. With this new information, Kimi Ford is now considering purchasing Nike shares for the NorthPoint Large-Cap Fund. She reviewed numerous analysts’ reports but felt that there was no clear guidance on whether or not to buy the stock. To make a better decision, she decided to perform her own analysis. In this case, we will provide Kimi Ford with a...
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