...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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...A Case Analysis of Nike: The Sweatshop Debate Mindi Merritt Class Fall 2014 Instructor’s Name Introduction Nike is a hugely successful global industry that designs and markets shoes and apparel (Coakley & Kates, 2013). Most of Nike’s products are subcontracted and manufactured overseas in countries such as China, India, Vietnam, Indonesia and Korea. For decades, Nike has been embroiled in controversy where critics claim its products are manufactured in foreign factories with substandard working conditions and disregard to labor laws (Powell & Zwolinski, 2012). As a result, Nike has initiated numerous policy changes in an effort to silence these criticisms. While Nike has definitely made great strides in turning around its image, it continues to struggle with allegations from critics. Nike’s Responsibility for Working Conditions Should Nike be held responsible for working conditions in foreign factories that it does not own, but where subcontractors make products for Nike? Nike should be held responsible for the working conditions in foreign factories where subcontractors make products the company sells. Although Nike does not actually own the foreign factories, the workers are employees of Nike and Nike is the beneficiary of the products they are making. Thus, Nike is responsible (at least in part) of the working conditions endured by those that work there. Labor Standards of Foreign Factories What labor standards regarding safety, working conditions...
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...Nike Case Study Tracy Weispfenning Nike Case Study #1 MGMT 310 Jason Cussler January 31, 2014 Nike Falters in Ethical Practices Nike has faced many ethical dilemmas such as human rights abuses, labor violations, and negative impact on the environment where manufacturing plants are located. Their responses have varied from improving labor standards in each facility to implementing a recycling program for worn out shoes for the consumer, and creating a no waste recycling program at all levels of the Nike operations. In my opinion, Nike is on the right track but could do more in their response to these ethical challenges. Nike has responded to these ethical dilemmas in various ways. They’ve done a good job in anticipating the potential consequences, yet they have not involved enough people in the decision making process. For example, Nike did not take the allegations of human rights abuses and labor violations seriously in their overseas manufacturing plants until nongovernment organizations like Life magazine and The New York Times published articles on these violations. These articles created public awareness and exposed the lack of oversight and policies to ensure the human rights and labor guidelines were fair and enforced. After these articles were published, Nike obtained and implemented a new course of action for protecting workers rights, safety, and competitive wages. Nike should have been aware of these practices, monitoring and reviewing their...
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...BUSA 488 Creating and Managing Transnational Organizations Professor Thad Barnowe Spring 2009 February 18, 2009 Many companies today, in this growing world market, cannot be successful with out considering the benefits that could be gained by expanding their business, or part of their business, to other countries. As Bartlett, Ghoshal, and Beamish mention in the text there are three macro forces that drive, constrain, and shape the industries in which companies will compete globally. (2008). Companies must prepare for these three macro forces in advance before entering into new countries to do business. If they don’t prepare they will not be very successful in conducting business in another country and will not gain the competitive advantage they strived for when deciding to conduct business globally. Also, if a company does not enter the global market prepared they could run into problems that they did not foresee, which could result in damage to the company name and image, not only affecting international business but domestic business as well. This in turn could create the company to sustain profit losses and gain a tarnished reputation that they would have to fix to regain their competitive advantage and above average returns. In order to be a successful in operating in another country multinational enterprises must have a manager or a set of mangers to deal with three very complex external demands, cross-market integration, national responsiveness, and worldwide...
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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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...Introduction Nike is a name of the major manufacturer of athletic footwear, apparel and equipment for a wide-ranging of sports from the United States. According to Ashford (1997) it was established in 1963 by Phil Knight as ‘Blue Ribbon Sports’ and began as an importer for the running shoes, which were imported from Japan. In 1972, the new name ‘Nike’ has introduced with an extensive product range to more variety of footwear and apparel for sports. Since then, Nike sales grew progressively to be the leading sportswear company. While, growth went beyond its national home base, especially in European region. Since 1980s, after firstly success with local distributors, Nike decided to possess its own distribution centres by acquired its distributors business in all the leading countries and integrated into its owned subsidiaries. However, each country still ran its operations such as warehousing and logistics separately. Hence, in 1992, Nike made up its mind to reorganizing its European internal supply chain management and logistics (Ashford 1997). Because the entirely synchronized of materials flow and customer demands for the finished goods, that produces is the idyllic implementation for an internal supply chain management (Waage 2008). If the company do not achieve this ideal, it might lead to uncoordinated forecasts and decisions that produce inadvertent accumulation of inventories, excessive lead times, delays in production and product being left unsold finally...
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...Nike I2 ERP Implementation Failure Case Study February 9, 2014 Shafer Minnick Morgan Correll Jeff Harvey Nike stands as the World’s leading producer of Athletic Footwear, Apparel and Equipment. As of 2013 they held complete ownership or joint venture in the following companies: Nike Brand Cole Haan Converse Hurley International Umbro Athletic Wear Nike Golf Jordan Brand This is a rather long and somewhat surprising list to many, based on some of these brands are portrayed as competitors in the daily consumer market. Nike products are sold in over 170 countries worldwide through their network of 700 retails stores. They have 38,00 Nike employees worldwide, based in those retail store, or one of 65 administrative offices or 10 plus Sales Offices or showrooms worldwide. Nike products are manufactured through a contract manufacturing partnership consisting of 900 contract plants worldwide using over 1 million contract employees. These same plants are managed by their local ownership, but Nike spends significant time and money coaching these plants in the Nike sustainable manufacturing plan. The Nike Strategy The Nike Business strategy focuses on Innovation. First the “Innovation to Serve the Athlete”-meaning they desire to design and produce the best products for athlete safety and performance. They want to be the leaders in new and improved products to advance athletic performance. Secondly, “Innovation to Grow the Company”- Nike wants...
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...NIKE CASE STUDY This post is a based on a case study of Nike. The article will be discussing legal and ethical analysis and how the impact the operational/ ethical issues of the organization, the paper shall also be discussing the contribution factors and how the company’s corporate culture may have helped to minimize the unethical behavior or actually contributed to/caused the unethical behavior. The paper is also going to provide ethical decision factors, which are going to address or going to be considered in resolving the legal/ethical issues identified within this case. And finally the paper is going to provide an action plan for each of the legal/ethical issues along with recommendations that company can take to help prevent these issues in the future. Nike is one of the famous franchises in the world that sells sportswear for all ages. But is mostly famous for their athlete shoes and apparel and Nike is also one of the major manufacturers of sport equipment as well. The slogan for Nike is “Just Do It”. Nike was founded in January 1962 in Oregon, United States by Philip Knight and Bill Bowerman. Nike has somewhere around 700 or more retail outlets spread all over the world, and has approximately 45 offices only outside the United States. And it employs 30,000 people all over the world. Nike had a revenue excess of $16 billion in 2007. Nike’s factories are mostly located in Asian countries like Pakistan, India, Malaysia, China, Indonesia, Philippines, Taiwan, Vietnam...
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...Analysis of Case Study for International Business By Assistant Professor Asif Mahbub Karim MBA, CA(Inter.), KPMG, MCFC,MBA, B.Com. PhD Research Fellow, Malaysia Coordinator – BBA & MBA Program Stamford University Bangladesh Introduction Background of the Case Established in 1972. Company has $10 billion in annual revenue. It sells in 140 countries. It only Sub Contracts. Employs 550,000 all around. Mission Statement “ Just Do It “ Accusations !! Products are made in Sweatshops. Many are Child Worker. Work in hazardous condition. Less than Subsistence Wages. Nike have become symbol of Evils of Globalization. Global Exchange – A Human Right Organization targeted Nike for repeated critisicm. Accusations !! The condition at foreign factories was at stake. Subcontractors were not matching minimum local labor laws. Long working hours. Working environment very poor. Minimum Wage rate very low. Safety & Security compliances not followed. Case Against Nike In search of cheap labor Nike looks factories as such in target countries where minimum wage level is not set. Targeting literate , disciplined and desperate job seekers. Mostly young women are hired. Labors don’t share Nike’s huge profit. They work 6 days a week for only $40 a month - just 20 cents an hour. Attack on Nike’s Sub Contracting Some factories were employing 11 years old labors in Indonesia for their sneakers. Wage...
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...ICMR Case Collection C op y ICFAI Center for Management Research N OPER 049 ot SCM and ERP Software Implementation at Nike – From Failure to Success D o This case was written by Ruchi N. Chaturvedi, under the direction of Vivek Gupta, ICFAI Center for Management Research (ICMR). It was compiled from published sources, and is intended to be used as a basis for class discussion rather than to illustrate either effective or ineffective handling of a management situation. 2005, ICFAI Center for Management Research. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means- electronic or mechanical, without permission. To order copies, call 0091-40-2343-0462/63/64 or write to ICFAI Center for Management Research, Plot # 49, Nagarjuna Hills, Hyderabad 500 082, India or email icmr@icfai.org. Website: www.icmrindia.org OPER/049 SCM AND ERP SOFTWARE IMPLEMENTATION AT NIKE – FROM FAILURE TO SUCCESS “We became a poster child for failed implementations.”1 - Roland Wolfram, Vice-president - Global Operations, Nike Corporation, commenting on the i2 software implementation failure in 2000. op y “The lesson of Nike’s failure and subsequent rebound lies in the fact that it had a sound business plan that was widely understood and accepted at every level of the company. Given that resiliency it afforded the company, in the...
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...markets for Nike. They are my sponsor. Nike Inc. produces footwear, clothing, equipment and accessory products for the sports and athletic market. It is the largest seller of sports 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. Nike developed a strong working relationship with Japanese shoe manufacturers, but Nike moved on to other countries seeking after alternative, lower-cost producers. Today the company manufactures in China, Taiwan, Korea, Pakistan, Vietnam, Indonesia, and Mexico as well as in the US and in Italy. 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, with commonplace harassment and abuse. As its founder and Chief Executive Officer, Phil Knight lamented in a May 1998 speech to the National Press Club, “the Nike product has become synonymous with slave wages, forced overtime, and arbitrary abuse.”(HBS Case # 9-700-047) “Hitting the Wall: Nike and International Labor Practices,” HBS Case # 9-700-047 Problem Statement Is Nike doing just enough to clear bad publicity or are they really fixing their factory issues? How can Nike work toward...
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...Title: Strategic Marketing Assignment Topic You have been provided with a case study of NIKE (see Appendix 1). In your case report, identify three or four Marketing Challenges covered in this subject and address how those challenges can be met using the principles developed in this subject. Please ensure to use academic in-text references adequately to support your suggestions. Report writing format should be used. Word count: 2582 Executive Summary In this report, Nike’s case will be studied with reference to the marketing challenges the company has faced. The methods regarding overcoming those challenges will also be studied in this case. Nike has grown from selling shoes from a car boot in 1964 to one of the world’s bestselling sports shoe brands by 1974. Once the brand was established as bestselling, there were marketing challenges to overcome. Some of those marketing challenges faced by the company will be discussed in this report. The first challenge is the perceptions of people that Nike shoes are produced by low paid labor that have to work in poor conditions to get paid. The second marketing challenge faced by Nike is that initially the celebrity endorsement worked wonders for Nike, but since the 1990s, star selection has been less than perfect. Another marketing challenge faced by Nike is that with the change in generation, the company was not able to carry forward its image of best sports shoes brand. The issue at hand is that the company must find ways...
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...Chuck Thompson Cross Cultural Perspectives The Nike Corporation is a well known global organization. From the very beginning the company has turned to other countries as a means of cheap labor. Nike was started in 1964 as Blue Ribbon Sports. Over the years Nike have had a few challenges with cultural issues. Nike has been criticized for using some factories that are located in China, Vietnam, Indonesia and Mexico. The factories that they were using in Vietnam was documented for violating minimum wage and overtime laws, they have made the changes to correct these mistakes. During the 1990s, Nike faced criticism for the use of child labor in Cambodia and Pakistan in factories it contracted to manufacture soccer balls. Although Nike took action to curb or at least reduce the practice, they continue to contract their production to companies that operate in areas where inadequate regulation and monitoring make it hard to ensure that child labor is not being used. A July 2008 investigation by Australian Channel 7 News found a large number of cases involving forced labor in one of the largest Nike apparel factories. The factory located in Malaysia was filmed by an undercover crew who found instances of squalid living conditions and forced labor. Nike has since stated that they will take corrective action to ensure the abuse does not continue with in any of the factories that they are contracted with. The remedy for Nike, other global brands, and various agencies, implemented...
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...Nike Inc. and supply-chain-software supplier i2 Technologies are pointing fingers at each other for a flawed i2 implementation that upset Nike's inventory and ultimately forced the footwear maker to slash earnings estimates. Nike officials said an i2 supply-and-demand-planning application didn't perform as expected, resulting in shortages of some footwear models and excess stock of others. Executives at i2 (stock: ITWO), however, maintain that the problem was caused not by the software itself, but by Nike's customized implementation. Regardless of who's to blame, the resulting inventory shortages will reduce Nike's fiscal third-quarter sales by as much as $100 million. Earnings estimates for the quarter, which ended this week, have been cut to 34 to 38 cents per share from 50 to 55 cents. Nike has been working on its i2 software implementation since June as part of a $400 million overhaul designed to streamline communications with buyers and suppliers and lower operating costs. The i2 software failed to meet expectations "both in performance and functionality," a Nike spokeswoman said. "This is what we get for our $400 million?" Nike chairman Philip Knight asked financial analysts when the company issued its earnings warning earlier this week. Nike and i2 have "created some technical and operational workarounds" and the implementation is now stable, the spokeswoman said, but the financial impact of the problem will be felt for six to nine months, until Nike can...
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...Introduction This paper is a based on a case study of Nike. The paper will be discussing legal and ethical analysis and how the impact the operational/ ethical issues of the organization, the paper shall also be discussing the contribution factors and how the company’s corporate culture may have helped to minimize the unethical behavior or actually contributed to/caused the unethical behavior. The paper is also going to provide ethical decision factors, which are going to address or going to be considered in resolving the legal/ethical issues identified within this case. And finally the paper is going to provide an action plan for each of the legal/ethical issues along with recommendations that company can take to help prevent these issues in the future. Nike is one of the famous franchises in the world that sells sportswear for all ages. But is mostly famous for their athlete shoes and apparel and Nike is also one of the major manufacturers of sport equipment as well. The slogan for Nike is “Just Do It”. Nike was founded in January 1962 in Oregon, United States by Philip Knight and Bill Bowerman. Nike has somewhere around 700 or more retail outlets spread all over the world, and has approximately 45 offices only outside the United States. And it employs 30,000 people all over the world. Nike had a revenue excess of $16 billion in 2007. Nike’s factories are mostly located in Asian countries like Pakistan, India, Malaysia, China, Indonesia, Philippines, Taiwan, Vietnam...
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