...CORPORATE SOCIAL RESPONSIBILITY OF NIKE INC. Presented by NIKE Inc. Founded in 1964 as Blue Ribbon sports Renamed as Nike Inc. In 1971 Named after Greek God of Victory Νίκη Headquartered in Beaverton, Oregon Largest athletic footwear and apparel manufacturer One of the most visible brands in the world Revenues of over $25 Billion Profit of over $3 Billion Close to 50,000 employees all over the world Total valuation close to $70 Billion Trivia Nike Logo – “swoosh” is one of there most popular along with the logos of Mercedes and Apple Inc. NIKE Inc. Nike is the leading brand in the world of sports. Their closest competitors are Adidas, Puma and Reebok. Nike holds close to 1/3 of the global market share of Athletic Footwear. Known for heavy promotion using big stars. Sponsors the top athletes in all the popular sports. Nike Inc. Has growth at a cumulative average growth rate of 21% over the last 10 years. CSR A corporate self-regulation integrated into business model An in-built mechanism to ensure compliance with spirit of law & ethics A move to encourage positive impact through it activity on environment C S R • CORPORATE PHILANTHROPHY • RISK MANAGEMENT • CREATING SHARED VALUE Triple Bottom Line Approach to CSR The TBL is an accounting framework with three dimensions: social, environmental and financial. The TBL dimensions are also commonly called the three Ps: people, planet and profit and are...
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...is Nike inc. which all the other companies are trying to be like. Some changes are the industry as a whole is moving there factories to the far east such as China. The reason for this is they are trying to save costs for producing there shoes by paying there workers less because they are in the far east. Nike and Reebok have already been in the east. The shoe industry not including Nike inc. is trying to make rushes to be number one, two, and three. Another rush the industry is making, is the rush for the deadline of sports shoes. In other words coming up with shoes for the sports that are in season. The difficulties the shoe industry has are making shoes that all people wear such as setting a style for both inner city people and suburb people. Another difficulty the shoe industry has is getting its stock value to rise again because all but Nike and Fila's stock has dropped. This is what the shoe industry is all about and the difficulties, problems, and advances it has. There are four major companies in the shoe industry. The dominant industry is Nike inc.. Then going down the line is Reebok, Fila, and Adidas. Nike being the superpower has been in front of all the other industries for many years. Right now Reebok is the closest company to Nike and is $2,459 behind in value in MIL. Nike's earnings in the last quarter leaped 24% which has pleased Wall Street investors. With such earnings Nike announced a 2-to-1 stock split, its second in many years. Nike and...
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...Nike Analysis Financial Management Spring 2016 Introduction Nike Inc. is one of the world’s largest marketer of athletic footwear and apparel, holding more than 37 percent of the market share. Nike is a multinational company having factories and retail stores in over 160 countries. However, Nike was not an overnight success as it took years to build the brand and create profitability. The idea of Nike came about in 1962 by Phillip Knight, a Stanford University business graduate. Traveling in Japan after finishing business school, Phillip Knight got in touch with a Japanese firm that made athletic shoes, the Onitsuka Tiger Co., and arranged to import some of its products to the United States on a small scale. This was until 1963, Knight took his shoe delivery to a track meet which sprung a partnership between Knight and William Bowerman, his former track coach. Knight and Bowerman, continued and worked hard on creating the best running shoes that gave the best results. Through development, Bowerman and Knight were able to sell these shoes and gain immense profitability. The business was quickly taking off which in turn, led to Bowerman and Knight hiring employees, who would then sell shoes out their cars. In 1967, the first retail space was purchased and with vast sales, it resulted in expanding the business to other parts of the United States. In 1970 The famous Nike swoosh which adds ultimate value and eye appeal to their shoes was designed by Carolyn Davidson...
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...NIKE From Sweatshops to Leadership HRM 522 June 12, 2011 Global businesses can sometimes be difficult due to the different cultures. Not all cultures carry the same value, law and ethical standard. Nike is an international brand that has many retail accounts in over 160 countries. Being an international company can cause business ethical and legal issues. Integrity is important and sometimes a challenge when a corporation must respond to criticism or hold back on certain company details. Nike dealt with criticism from right activist, media, and face labor rights violations. However, over a period of time and after making some important adjustments; Nike is working on improving its company image. Nike used traditional advertising methods to broadcast its product. Nike public relations tactics dealt with the wage policy, visiting campuses on universities, personal letters, corporate responsibility and using celebrities as spoke person for its product. Nike launch campaigns regarding child labor, low and non- existent wages. Nike believes that the U.S dollars were meaningless because the cost of living was different in other countries. Nike held press conferences for newspaper staff at colleges. These were ways for Nike to make proactive efforts to address the concerns of activists protesting against their products. Nike made a few mistakes in handling the negative publicity. Three...
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...The Marketing Director Nike, UK Subject: A study of changes in the Sportswear market in India in the past decade with focus on footwear sector. Analysis and suggestion about the marketing techniques that need to be implemented for the launch of a new product. The study also includes formulating a Pricing strategy and various promotional measures to be opted by Nike. In today's competitive market, companies always try to introduce different types of products and creative marketing approaches so as to showcase the uniqueness in their products and to survive in the dynamic marketing environments. Nike, the American multinational company is a leading manufacturer and supplier of sportswear, apparel, accessories and services and holds the top spot in supplying athletic shoes and apparel throughout the world. The company, today is among the most valued brands. (Skoloda, 2010) The product is due to be launched in India, which holds the top spot in terms of being among the fastest growing economies in Asia and is the most preferred markets for multinational companies. Indian economy is growing at 8.8%, which is among the best in Asia. (Nobrega & Sinha, 2008) Changes in the Sportswear market over the last decade: As Isaac Asimov once said “The only constant is Change” so is it. The current markets are ever changing. Philip Kotler & John Caslione (2009) state that “Turbulence is the new normal”. Companies introducing new products or investing into markets...
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...Komfort Kicks, Inc. is a North American athletic shoe company that manufactures high-end, professional soccer shoes. They have been in existence for ten years in the United States. The main headquarters is just outside of Chicago, IL from where the shoes are distributed. The brand has been quite successful in the past, but losing significant market share to Nike and Adidas. Management has decided to complement its soccer shoes with a stylish training jacket, pants and jersey to completely outfit soccer players or workout enthusiasts. The outfit is lightweight in design; providing maximum comfort and air circulation for indoor workouts, outdoor practice and soccer games. While Nike and Adidas are battling for global soccer domination, Komfort Kicks would like to make a comeback under the radar and strengthen its brand and reputation while becoming a sponsor at the 2016 Olympic Games in Rio de Janeiro. With increased competition in the sports athletic market, management has hired DeVry University’s Creative Marketing firm to propose an IMC Campaign. This campaign is intended to strengthen the Komfort Kicks brand equity, promote its new training outfit and increase sales. According to IBIS World, the sports and athletic goods industry has grown at an annualized rate of 0.6% to $9.1 billion, including 2.2% revenue growth in 2014. Over this time, the average profit margin for industry operators has also contracted due to the rising competition from imports, which has put downward pressure...
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...Strategic Planning Strategic planning is something the Nike has been something that Nike has put much more emphasis on during the last decade. They realize that by planning well, they can produce higher quality products while improving their bottom line. Nike’s Strategic Planning team establishes a strategic business planning process, authors our one and three year strategic and business plans, and leads transformational initiatives in collaboration with cross-functional teams. Strategic Planning teams are embedded at the global corporate level and throughout their business units. This team frames complex and ambiguous issues, conducts consumer, competitive, and market analyses, fields research, creates financial models, and develops action plans (Nikebiz.com, 2010). One example of this is Nike's move to combine its reputation in high-performance athletic footwear with the iPod's meteoric success. In 2006, the company, which accounts for the largest share of running shoes sold in the United States, teamed up with Apple to launch Nike+: a digital sports kit comprising a sensor that attaches to your running shoe and a wireless receiver that connects to your iPod. As you jog and listen to your favorite music, the sensor tracks your speed and distance and the calories you've burned, and transmits that information to your iPod in real time. Back at your computer, you can upload your data to nikeplus.com, which stores your information and provides a user-friendly interface that...
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...strategic plan is more like a map or GPS for the company. There are tons of other variables that drive a company. For instance, having great internal and external environments play a role on how the company will progress. The internal environment entails employees, management, the work culture/mission, and ethics. These components help make or break a company’s morale. If your company’s environment is unhealthy, then it is very possible the strategic plans that would be implemented improperly. The external environment is very important in a company as well, these are variables that occur outside the companies facilities that alter the company’s plans. Companies take their environments’ very seriously, there is a process call environmental scanning which, is an analysis of a company’s internal and external environments. Two companies that were recently researched using an environmental scan were Time Warner Cable and Nike. After an environmental scan it is possible to analyze the competitive advantage of Time Warner Cable and Nike. While, analyzing the competitive advantage, it is possible to see the value and effectiveness of Time Warner Cable and Nike’s business strategies. These two companies are in different industries; Nike being a global shoes and apparel company and Time Warner Cable being the second cable, internet and home phone service provider. Even though Time Warner Cable does not provide service overseas, they do employ people globally. Since both of these companies operate...
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...Adarsh shikshan prasarak mandal Govt.Regd.No.Mah – 5653 ADARSH MANAGEMENT INSTITUTE OF INDIA MARKS: 100 COURSE: MBA SUB: BUSINESS MANAGEMENT N.B.: 1) Attempt any Four Questions 2) All questions carries equal marks. NO. 1 THE FORECAST IS SUNNY FOR THE WEATHER CHANNEL When The Weather Channel, the first 24 – hour all – weather network, began broadcasting in 1982, it quickly became the object of mockery. “Many in the industry ridiculed us, suggesting that the only type of advertiser we would attract would be a raincoat company or a galoshes company,” remembers Michael Eckert, The Weather Channel’s CEO. Besides pondering where advertising support would come from, critics questioned what kind of audience was going to tune in to a channel that boasts wall-to-wall weather, a topic that sounds as interesting as staring at wallpaper. So far, the answers to these questions have been quite surprising. In its over twenty years of broadcasting, the channel has gained support from a cadre of deep-pocket advertisers, which include Buick, Motorola, and Campbell’s Soup. In 2003, the Weather Channel reached more than 83 million U.S. households in Latin America under the name, El Canal del Tiempo. According to The Weather Channel’s Vice-president of strategic marketing, Steven Clapp, “There might have been a time when...
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...worldwide designer, marketer, and distributor of sports, fitness, and lifestyle products, principally footwear and apparel. The company offers its products to a range of customers from professional athletes to recreational runners and kids on the playground. It serves customers through its retail stores and other sports retailers in the United States and internationally. Overall problem Reebok International Ltd. is preparing to launch its first global advertising campaign for "Planet Reebok" in three European countries--France, Germany, and the United Kingdom. Planet Reebok was recently launched in the United States during the 1993 Superbowl. The company conducted market research on the Planet Reebok concept in the three countries. The key objective of this Planet Reebok umbrella campaign is to reposition Reebok’s different images in the different countries to one unified global identity as well as to create a common brand image across all product categories. The research shows that it’s not that successful to let the European customers to understand the Planet Reebok’s message, although successful in the US. The umbrella campaign bears some potential risk to confuse loyal customers and draw them away to competition with clear positioning. Industry and market In 1992, Reebok held a 20% unit share and a 24% dollar share of the U.S. branded athletic sports shoe market. Its primary competitor, Nike, held a 20% unit share and a 28% dollar share. Both companies held a 15% dollar...
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...over the world will camp outside their legendary stores for a new release? The answer is advertising/Communications. It is estimated that Apple spent nearly $97.5 Million just to advertise one particular product, the iPhone in 2008. The following year, 2009, Apple spent $149.6 million and $173.3 Million in 2010. This shouldn't come as too much of a surprise since Apple tends to be more selective with its marketing efforts and gets lots of extra publicity from product placements. Apple focuses on nationwide publications with the largest reach and actually has an employee who "helps provide products" to be "used by stars in movies [and] TV shows." Apples products range from the popular IPhone to the very expensive MacBook air/pro. The consumer base knows that when they purchase a product from Apple that their money is going to be well spent, and satisfaction is always guaranteed. Packaging, Branding, and Logos also have a purpose in convincing the consumer to purchase, a plain white box with beautiful dimensions and a nice logo will perceive the item to look more appealing and more desirable. Apple attempts to increase market demand for its products through differentiation, which entails making its products unique and attractive to consumers. The company’s products have always been designed to be ahead of the curve compared to its peers. Despite high competition, Apple has succeeded in creating demand for its products, giving...
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...intercourse within work groups or between managers and subordinates. Organizational communication flows in all directions and the network may be planned or unplanned. Nike communicates internally among managers and subordinates in their organization flow chart. To add, Nike compliance staff, which numbers more than 80 people, monitors workplace conditions through a series of internal audits conducted by them and other Nike personnel. [B] Formal Communication Pattern Formal communication refers to interchange of information officially. The flow of communication is controlled and is a deliberate effort. This makes it possible for the information to reach the desired place without any hindrance, at a little cost and in a proper way. This is also known as ‘Through Proper Channel Communication.’ Formal communication can both be written and oral. Nike communicates its progress to its stakeholders, through its website www.nikeresponsibility.com backgrounders, quarterly electronic newsletters, the 2015 Corporate Responsibility Report and Community Investment Report 2014-2015. Nike also engages stakeholders directly through one-on-one meetings and other forms of collaboration. Nike held its first formal stakeholder forum in February 2015. Nike actively communicates with its stakeholders and encourages their feedback. Nike engages with its stakeholders through various forums and organizations. [C] External Communication Patterns External communication is the transmission of information...
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...GRADUATE SCHOOL OF BUSINESS STANFORD UNIVERSITY CASE NUMBER: EC-9B FEBRUARY 2000 NIKE – CHANNEL CONFLICT As 1999 drew to a close, Mary Kate Buckley, general manager of nike.com, found herself and her division at a crossroads. Over the last twelve months, nike.com had rolled out an ambitious e-commerce initiative, signed an exclusive deal with Fogdog sports that allowed NIKE products to be sold by a pure internet company for the first time, and had grown from twelve to 150 employees. But nike.com faced countless critical decisions in the coming months. Specifically, nike.com needed to plan not only its own direct-to-consumer sales strategy, but also its policies and rules for on-line sales of NIKE products by other vendors. COMPANY HISTORY, STRATEGY AND STRUCTURE BRS, the company that would evolve into NIKE, was founded in 1964 by Phil Knight. The purpose of the company was to make high-performance athletic shoes for the U.S. market. Knight, a Stanford MBA and middle distance runner at the University of Oregon, recognized an unmet need for quality athletic footwear that could be filled inexpensively with well-made Japanese imports. Knight started selling these imported shoes directly to runners at track meets in his spare time and NIKE was born. Over the following 35 years, NIKE grew from a part-time job for Phil Knight into the world’s dominant athletic footwear and apparel company by following a consistent and logical strategy: to capitalize on the importance...
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...Term Project-Nike Algernon Jones & Maria Lopez MBA 6202/6215 – Strategic Management Dr. David Epstein Nike, originally known as Blue Ribbon Sports (BRS), was founded by University of Oregon track athlete Philip Knight and his coach Bill Bowerman in January 1964. The company initially operated as a distributor for Japanese shoe maker Onitsuka Tiger (now ASICS), making most sales at track meets out of Knight's automobile. In 1966, BRS opened its first retail store, located at 3107 Pico Boulevard in Santa Monica, California. By 1971, the relationship between BRS and Onitsuka Tiger was nearing an end. BRS prepared to launch its own line of footwear, which would bear the Swoosh newly designed by Carolyn Davidson. The Swoosh was first used by Nike on June 18, 1971, and was registered with the U.S. Patent and Trademark Office on January 22, 1974. In 1976, the company hired John Brown and Partners, based in Seattle, as its first advertising agency. The following year, the agency created the first "brand ad" for Nike, called "There is no finish line," in which no Nike product was shown. By 1980, Nike had attained a 50% market share in the U.S. athletic shoe market, and the company went public in December of that year. Together, Nike and Wieden+Kennedy have created many print and television advertisements, and Wieden+Kennedy remains Nike's primary ad agency. It was agency co-founder Dan who coined the now-famous slogan "Just Do It" for a 1988 Nike ad campaign. Throughout the...
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...George E. Belch and Michael A. Belch. It is intended to be used as the basis for class discussion rather than to illustrate either effective or ineffective handling of a management situation. The case was compiled from published sources. Company Background Under Armour (UA) was founded in 1996 by Kevin Plank, a former Maryland football player, who began by selling compression clothing that could “wick” sweat away from the body to college sports teams out of the trunk of his car. Plank was a football player at the University of Maryland, and hated wearing cotton shirts to practice in the hot, humid Maryland climate. Knowing that he would never be an NFL player, Plank devoted his efforts to starting a company that could make a product that would be an improvement over cotton, in that it would not absorb sweat and be much more functional and comfortable to wear. Once made, he started selling the shirts to the lacrosse and football teams at the University of Maryland out of the trunk of his car. In 1998, the football oriented movie “Any Given Sunday” was being filmed in Baltimore where Under Armour is based. The producers of the movie were looking for a product that would represent the athletic nature of the movie and be comfortable to wear during filming. Under Armour agreed to provide products, and UA shirts were used throughout the filming and appeared in the movie itself, resulting in national exposure for the brand. At about the same time, ESPN was initiating...
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