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CASE STUDY – Nike and the University of Oregon
The next case study is case study 22, (“Nike and the University of Oregon”) on Pages 933-940 of your key text, De Wit & Meyer.
Below is the case synopsis:

Case Synopsis
Philipp H. Knight founded Nike’s predecessor company in 1963. The basic business formula of the company has not changed much since then. Nike is designing and marketing high quality sports shoes and sports apparel around the world. It builds its brand appeal through savvy marketing and sophisticated product R&D. The company has never owned production of the goods it sells, instead from the very beginning has been importing the products from the Asian Far East. In 2000, Nike enjoyed 45% global market share, had close to $9 billion of sales and put Knight among the top ten richest individuals in United States. The company directly employed 20,000 people, but had a workforce of an estimated half a million labouring for them in 565 contract factories in 46 countries – making it one of the largest private company de facto employers in the world.
Labour conditions in Nike’s contract factories were not even close to any labour laws and compensation practices in the industrialised countries, let alone the US. Work there meant 70-hour workweeks performing hazardous and/or monotonous routines under abusive supervision and with appalling equipment. Until the early l990s, Nike never felt that to be its responsibility.

Ever since the early 19th century in England, industrial development started with large scale textile factories. Workers there would stay for two to three years and then either return to the countryside or “graduate” on to higher value added, more sophisticated factories such as household goods production, followed by machinery assembly and ultimately followed by precision machining for high tech goods. This pattern remained remarkably

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