Essays24.com - Term Papers and Free Essays
Search

Nike

Essay by   •  November 13, 2010  •  2,840 Words (12 Pages)  •  1,708 Views

Essay Preview: Nike

Report this essay
Page 1 of 12

NIKE HISTORY

Bill Bowerman and Phil Knight founded Nike Inc. as Blue Ribbon Sports in 1962 with a handshake. The two man team began the company with a combined investment of $500 each. They reached an agreement with a Japanese manufacturer of athletic shoes, forming BRS/Tiger shoes. Phil Knight started this company selling shoes from the trunk of his car. As the empire grew, the two man team developed the idea to cut overheard. In 1972, BRS and Onitsuka Tiger went different ways and thus Nike was born. "The first shoe was a soccer shoe that bore the Nike brand name, referring to the Greek Goddess of Victory, and the "Swoosh" trademark. A student designed the Swoosh trademark for a fee of $35" [Nikebiz. (2006). Nikebiz [The Inside Story].

. "Nike has its headquarters in Oregon although it doesn't do any manufacturing locally. Instead, Nike designs and markets its products here in the United States while contracting the manufacturing of all its products in the global network in over six hundred factories scattered around the globe while employing over 550,000 workers" (Charles W L Hill & Gareth R Jones, 2004, C129).In a little over three decades Nike has reportedly increased its earnings from forty million to over fourteen billion dollars annually.

Nike's mission statement was inspired by a man named Bill Bowerman who was not only one of the founders of Nike but a highly respected track and field coach who taught athletes the "secrets of achievement" at the University of Oregon. The mission statement of Nike is one of few words, but huge in meaning: "To bring inspiration and innovation to every athlete" in the world. [Nikebiz. (2006). Nikebiz [The Inside Story]. Nike's mission is to continue Bowerman's accomplishments though his eyes. One of Bill great quote is, "If you have a body, you are an athlete." [Nikebiz. (2006). Nikebiz [The Inside Story. This is the statement of the company, the statement that is supposed to be everything that they stand for.

"Nike's mission for corporate responsibility is "To lead in corporate citizenship through programs that reflect caring for the world family of Nike, our teammates, our consumers, and those who provide services to Nike." [Nikebiz. (2006). Nikebiz [The Inside Story] While the mission does broadly identify the business they are in, namely the sports and fitness industry, it is not specific as to what products and services Nike provide.

Nike goals include; "investing in solutions that are creative, high impact and empower impoverished girls by expanding their opportunities, capabilities, and choices - which results in poverty alleviation; and contributing to positive change in the development field through an innovation model of corporate philanthropy that inspires heightened, highly effective corporate engagement in global problems". [Nikebiz. (2006). Nikebiz [The Inside Story].

There are over 12,000 Nike employers in the United States. Approximately 6,000 of them work in Oregon at the world headquarters, Wilsonville distribution center and various retail venues. Around 6,000 work in the Memphis, Tennessee distribution center and other retail stores around the country. Nike employs nearly 1,000 office personnel in a variety of regional locations.

STRENGTHS

Nike's major strength seems to be its competitive organization. The Nike world famous "Swoosh" logo is one of the most instantly recognized symbols in the world. Phil Knight has this logo tattooed on his ankle. Nike is not only a global brand but it has a very healthy dislike of its competitors. Nike is in fact the number one sport brand in the World. Nike has a very lean organization since it is not confined to buildings nor manufacturing workers. In fact, Nike has no factories; instead it subcontracts all of its products. In this manner Nike can manufacture its products in whatever Country is able to provide the quality of product at the lowest possible price. Therefore, if the cost of production increases, Nike can find another location to make its products cheaper, then they move their production. Nike has an exceptionally strong research and developmental team and they are constantly reinventing the company. That is how they are always evolving and keep up such an innovative range of products.

Nike Inc has evolved into the world's leading designer, marketer and distributor of authentic athletic attire. Nike has the most aggressive team of advertising than any other company in its field. "Nike subsidiaries include, Converse Inc., which designs, markets and distributes athletic footwear, apparel and accessories; Bauer Nike Hockey Inc., Cole Haan, a leading designer and marketer of luxury shoes, handbags, accessories and coats; Hurley International LLC.; and Exeter Brands Group LLC., which includes the Starter, Team Starter and Asphalt brand names and is the master licensee of the Shaq and Dunkman brands." [Nikebiz. (2006). Nikebiz [The Inside Story

Nike's board of directors consists of both management directors and independent directors. The combination of these two types of directors benefits Nike in that there is a presence of those directly involved with Nike as well as others indirectly involved who bring outside experience. This concept assists the board in "thinking outside the box." Nike's board can be classified as an oversight board, playing an active role with regards to management's decisions mostly in the area of strategy formulation. Nike just recently gave itself a makeover by replacing CEO, Phil Knight. Bill Perez the former CEO and President of S. C. Johnson is now Nike's new CEO.

Nike has created a corporate culture rich with employee loyalty and team spirit. Red "Swooshes" float across everything from screen savers to coffee cups at the company's headquarters. The company chooses to call its headquarters a "campus" instead of an office. Employees are called "players", supervisors are "coaches" and meetings are "huddles." Employees are given an hour and a half for lunch to play sports or simply workout. This new Nike is not just about shoes and slam-dunks, it's more about promoting a way of life, Nike Style. All new employees view a video of sports highlights accompanied by a soundtrack that discusses the soul of the athlete and the competitive spirit. In addition, management sends regular e-mails to update employees on the recent successes of Nike-sponsored athletes.

WEAKNESS

Nike has no published corporate objectives

...

...

Download as:   txt (17.3 Kb)   pdf (181.1 Kb)   docx (16 Kb)  
Continue for 11 more pages »
Only available on Essays24.com
Citation Generator

(2010, 11). Nike. Essays24.com. Retrieved 11, 2010, from https://www.essays24.com/essay/Nike/10945.html

"Nike" Essays24.com. 11 2010. 2010. 11 2010 <https://www.essays24.com/essay/Nike/10945.html>.

"Nike." Essays24.com. Essays24.com, 11 2010. Web. 11 2010. <https://www.essays24.com/essay/Nike/10945.html>.

"Nike." Essays24.com. 11, 2010. Accessed 11, 2010. https://www.essays24.com/essay/Nike/10945.html.