...Chapter 6 Case Study #1 Nike Hiring Gets Off on the Right Foot pages 284 – 285. 1) What do you think are the prime advantages and disadvantages of Nike’s computer-based interviewing system? Advantages of computer assisted Interviewing system: a) Weeds out undesirable applications: In computer based interview system the applicants whom management thinks are eligible for the job according to qualification, work experience and achievement of an applicant in his/her career is called upon for the interview. This helps the company screen out un- important applicants and in turn save their time in interviewing only required applicants. b) Saves company’s administrative costs: Company during their interview season sees an increase in their administrative expenses which includes mainly the travel reimbursement that all candidates gets during their journey to interview location. Nike being one of the largest manufacturing & retail oriented company; it needs recruitment process almost the whole year. If they spend. Therefore company’s expenses would be very high and at the same time, may not be productive as out of huge number of candidates who have applied, only few would be matching the job profile. c) Time efficient: it saves time for both management involved in recruitment process & candidates who may have to undergo long interview process. Management can utilize that time for its productivity & handling its other important issues. d) No routing errors. If the system...
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...Background to the case • In 1964 Nike Company was started. The company started importing Tiger shoes from Japan • In 1970, the demand for Nike shoes increased and the company decided to develop its own shoe manufacture. • In 1975, Nike shifted its operations from Japan to Korean and Taiwan were production costs were very low • In 1980, the company become profitable and at the same time faced a stiff competition from Reebok. The company’s market share dropped as a result of the competition. • In late 1980s, the Nike invested heavily in research and development to bring back the glory of the company. • In 1990s the company embarked on aggressive advertising, promotion and sponsorship and thus diversified into wide range of products to meet the international demands. • By 2007, Nike was the biggest sports fitness company in the world with a truly global spread of sales. Question 1 What knowledge has Nike acquired over the years? Use the definition of knowledge to move beyond the obvious This section is focused on knowledge acquisition and knowledge development has acquired over the years since its inception. According lynch (2006), knowledge is a fluid of mix of framed experience, values, contextual information and expert insight that provides a framework for evaluating and incorporating new experiences and information. It originates and is applied in the minds of knowers. In organisations like Nike, it often become embedded not only...
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...investigation is to find out how Nike has achieved it's competitive advantage, and to research into the company, to gain my own conclusion, and opinion of what I expect their future to hold. Competitive advantage is a distinctive feature about a business that makes it successful. It can be gained through: - Innovation (The introduction of new ideas, which change or create a product) Reputation Relationship with suppliers Relationship with customers Prices Advertising/Branding To maintain competitive advantage it must be difficult for other firms to copy. The business must carefully identify the people who will buy the product, and make it more appealing to them. Nike are a sports-clothing and footwear company, employing 22,000 people worldwide, from Nike World Headquarters in Oregon and Nike European Headquarters in Hilversum, The Netherlands, to nearly every region around the globe, including Asia Pacific, the Americas, and Europe, Middle East and Africa. Nike sells footwear, apparel, and equipment for men, women and kids, for a variety of sports. They are famous for their quality, and science. The company first started in 1962 by a man called Bill Bowerman. ...read more. Middle Their reputation then grew, and all athletes wanted to know about this new clothing idea. (See appendix 1) Therefore Nike has gained competitive advantage through innovation, of which Nike Sphere is an example. Nike has done some restructuring to help gain competitive advantage. Nike Inc. is very good at adapting...
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...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 globally external environments are very important when formulating a strategic plan. Time...
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...The Company Nike, Inc is a major publicly traded sportswear and equipment supplier based in the United States. The company is headquartered near Beaverton, Oregon, which is part of the Portland metropolitan area. It is the world's leading supplier of athletic shoes and apparel and is also a major manufacturer of sports equipment. Nike currently employs around 38,000 people worldwide. Nikes products are known worldwide and there is high demand in most countries globally. The company was founded in January 1964 as Blue Ribbon Sports by Bill Bowerman and Philip Knight, and officially became Nike, Inc. in 1978.. Nike markets its products under its own brand as well as multiple other brands such as, Nike Golf, Nike Pro, Nike+, Nike Skateboarding and subsidiaries including Cole Haan, Hurley International, Umbro and Converse. In addition to manufacturing sportswear and equipment, the company operates retail stores under the Niketown name. Comparative Advantage Nike uses its involvement in multiple countries to gain some sort of comparative advantage. This refers to the increase in production efficiency through specialisation in separate countries which perform a task in some way better, in this case cheaper. Nike, although based in the US, produces all of its goods outside the US in many different countries. In Shoe production, for example, in 2010 products were produced in Vietnam, China, Indonesia, Thailand and India. This diversification of production gives not only a comparative...
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...impact in a positive way. Nike impact to the local community: Benefits; Nike opening new stores or factories will create more jobs which will mean more people in jobs and numbers of employed people down in the area they are operating in. Nike opening new stores in a local community will benefit the locals by giving them wider choice to pick from. Nike opening new stores or factories in a local community will benefit the locals and local councils in terms of investment in deprived areas. Nike operating in local communities will mean more sponsorships of local groups Nike operating in local communities will also mean convenience shopping for locals and also benefit of bringing in tourist and new people into the local community. Nike also operating in a local community could mean investment in the community in terms of reviving run down high street. Drawbacks; Nike opening new stores in a local community will be drawback for competing businesses in the same industry as Nike, as Nike is a major high street brand they are likely to drive out local businesses competing for same customers. The impact this has on the local communities is that less local businesses are being able to make a living which will eventually mean local business cutting their losses and closing down. This will mean that local jobs will be on stake if local businesses have to close down which will then means less choice and for local customers. Nike could take advantage of this situation being...
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...Globalisation NIKE – just do it Introduction Nike, Inc. is an incorporated company that designs, develops and markets worldwide athletic footwear, apparel, equipment and accessories. Nike is the biggest seller of athletic footwear and athletic apparel in the world and creates designs for men, women and children. Nike employs both traditional and non-traditional distribution channels in almost 200 countries with primary market regions in the United States, Europe, Asia Pacific, and the Americas. Nike has some 20,000 retailers worldwide including Nike factory stores, Nike stores, Nike Towns, Cole Haan stores and Web sites which sell Nike's sports and leisure products. Nike markets its products under its own brand, as well as Nike Golf, Nike Pro, Nike+, Air Jordan, Nike Skateboarding, and subsidiaries including Cole Haan, Hurley International and Converse. Nike accounts for 33% of the global market share in the athletic footwear industry. Nike sponsors many high profile athletes and sports teams around the world with the highly recognized trademarks of Just do it (www.nike.co.uk). GLOBALISATION: Globalisation is defined as the micro- phenomenon where there are a free flow of capital efficiency, technology and other factors of production which promote world welfare in its strides. (Nande and Dias, 2007.,p.2) KEY DRIVERS OF GLOBLISATION: there are three main factors which motivate the globalisation of markets and production which are explained as under: Falling barriers to trade...
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...Nike, Inc. Nike History Nike is the leading supplier of athletic footwear and apparel and manufacturer in the world. Founded in 1962 by University of Oregen track athlete Philip Knight and his coach Bill Bowerman. Nike was first known as Blue Ribbon Sports and started out as a distributor for Japanese shoe maker Onitsuka Tiger, now known as ASICS. In 1971 the “Swoosh” was designed for $35.00 by Carolyn Davidson and the first shoe sold doning the swoosh and the name Nike was a soccer shoe. In 1972, Blue Ribbon Sports changed its name to Nike, Inc. after the winged greek goddess of victory. Later on in the 1970’s the company’s world headquarters were opened up un Beaverton, Oregon. (http://www.theshoegame.com/Nike-History-Timeline-Info.html) Nike- 1980s The company really took off and became well known all across the world in the 1980’s. The company started prodection of their footwear in 11 countries including China, Vietnam, and Indonesia. Famous shoes such as the “Nike Air” Air Force Ones and the Air Aces were introduced. Also in the 1980’s, the famous Nike slogan “Just Do It” came about. The slogan is still a major focal point in the companies advertising and marketing to this day. The success of the Nike took a huge turn in 1985 when the company signed a deal with the world’s greatest basketball player of all time, Michael Jordan. Jordan played a major role in how successful nike is today. The newly introduce “Air Jordan” became popular to basketball players worldwide...
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...not improved sports would not be able to endure the competition from the entertainment industry. This purpose of research is to: (A) Evaluate the conditions of the Marketing environment of Nike INC as a sports equipment company (B) Evaluate the recourse capability of Nike INC using appropriate analytical tools, highlighting its thresholds and unique resources and core competences (C) Evaluate the strategic fit of Nike INC using the analysis gather highlighting its strength and weakness. Company’s Profile. Nike INC is a sport Equipment company, It was founded on the 25th of February 1964 by Bill Bowerman as at then it was known as Blue Ribbon Sports. Its named was official changed on the 30th May 1978 to Nike INC. It is said that Bill Bowerman developed his interest in starting up a business while in Stanford. He believed his business would grow because as at then most Sport Shoes companies spent a fortune on labour by cost by manufacturing their Athletic Sports Footwear in countries like the USA were labour cost were high. He was convinced that by out sourcing production to Japan where labour is cheaper, Blue Ribbon prices would be cheaper than its contributor and thus it break into the Athletic Foot Ware industry and this was the beginning of the company which later became Nike INC. Nice INC logo is an image associated with its distinctive "swoosh" logo was created by Carolyn Davidson while he was a student of graphic design student. Initially the word Nice INC was...
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...Nike Fortune 500 Company Analysis Park University MG495 Abstract This paper will discuss the successful, multi-national, athletic, and Fortune 500 company, Nike. Nike is one of the most recognized companies today and has created products and an image that companies all around the world dream to achieve. Through a straight forward mission statement that encompasses their vision, Nike is able to show how devoted they are to satisfying their customers' needs and going beyond that to ensure their customers only receive quality products and services. Nike’s extensive history, dating back to the 1950’s only adds to its impressive reputation in the athletics industry. It’s properly researched, developed and managed marketing strategy has given Nike the advantage over its competitors and has helped to ensure the company will lasts for years to come. The company was founded on the premise that it wanted to be the industry leader and develop products to help athletes perform at the highest standards. From the very begging Nike has done everything to achieve and maintain that balance and it still is the industry leader today. Nike History Bill Bowerman was a track coach for Oregon in the 1950’s. He was always seeking new ways to get a competitive advantage amongst his competitors. He tried everything from experimenting with running surface compounds, hydration, nutrition, and just about anything else you could think of to gain an advantage. He tried pitching it to all of the...
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...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 equipment industry. It was established in 1964 and located near Oregon, United States. This report will discuss, analyse and evaluate how Nike company uses planning and organizing functions to maximize its benefits from sustainability. It will start with how Nike repair its negative reputation of sweatshop in its factories in developing countries, and then look at how it...
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...sports outfit of Nike. Some may said Nike quality is better than Reebok and others may disagree. So till today quality does not have any single universal definition (Reid & Sanders, 2005). Some may view quality as performance to standards while others view it as meeting the customer’s needs or satisfying the customer (Reid & Sanders, 2005). In common, there are a series of characteristic to define quality which are (1) conformance to specifications, (2) fitness for use, (3) value for price paid, (4) support services and (5) psychological criteria. (1) Conformance to specifications measures how well the product or service meets the targets and tolerances determined by its designers (Reid & Sanders, 2005). For example if a Nike said that their sport shoes are made in light blue color but turnout navy blue then it would not consider in good quality. (2) Fitness for use focuses on how well the product performs its intended function or use (Reid & Sanders, 2005). For example if Nike watches claim to be waterproofs for 5m but turnout the real watches malfunction in 1m then it would not consider in good quality. (3) Value for price paid is a definition of quality that consumers often use for product or service usefulness which combines economics factors with consumer criteria (Reid & Sanders, 2005). For example Nike and Reebok sold the same sport shoes in term of same functions and features but different in price. Nike is slightly cheaper than Reebok so in this case Nike would have higher...
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...Case Study 1 Nike: The Sweatshop Debate TFSU Zhu Mo In recent five years, as a global sport empire, Nike’s success has been widely discussed and debated on the level of the world. However, Nike’s affluence has appealed dozens of doubt coming from media and non-profit institutions, which have conducted investigations on its value chain. As an astonishing result, its manufacturing factories in south-east Asia, as reports indicate, are sweatshops where workers slaved away in hazardous conditions for below-subsistence wages. <1> Should Nike be held responsible for working conditions in foreign factories that it does not own, but where subcontractors make products for Nike? As for the question one, I reckon, Nike is definitely responsible for working conditions in foreign factories, even Nike does not own. Globalization, the way I see it, has created all the advantages for the terminal “point” or “dot” in the value chain, in which, of this case, the Nike controls and occupies these vital resources. However, its advantage should not be an excuse for lowering the benefit that the manufacturing factories, which are in the end of value chain, deserve to obtain. My second point is, although Nike does not own those foreign factories, there is a certain kind of interrelationship between them, which in this case, the contract. The profits of those factories are solid because of Nike’s proportion for them. If Nike’s proportion...
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...opportunities, trends, and consumer existing in their market environment. B) Establishes an awareness of their markets environment so that their company can increase the strategic planning and decision-making process. (U.S. Department of Health and Human Services, n.d.). C) Establish the internal resources needed to achieve their organizational goals and objectives. D) Establish the vision and strengths to identify the companies’ strengths, weaknesses, opportunities, and threats. (CPS Human Resource Services, 2007). To show the importance of environmental scanning and the competitive advantages that could arrive from using this assessment tool, this paper will conduct an environmental scan on Nike Inc., and A.O. Smith Water Products Company. The environmental scans of these corporations will a) examine how Nike Inc. and A.O Water Products Company create value and sustain their competitive advantage through business strategy. B) Analyze the measurement guidelines that both companies use to verify their strategic effectiveness. C) Examine the effectiveness of both companies measurements guidelines. In addition to the previous listed topics, this paper will...
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...Global Executive MBA – FGV (2015) Assignment # C3 Nike, INC.: Cost of Capital Jul 31st, 2014 Case Approach As required in the instructions, the group will answer each of the questions regarding the case, along with its justifications. In addition, a spreadsheet will be attached with all the calculations regarding this case. Q1. What is the WACC and why is it important to estimate a firm’s cost of capital? Do you agree with Joanna Cohen’s WACC calculation? Why or why not? WACC is defined as the weighted average cost of capital, which is the minimum rate of return the project (or the firm) must generate in order to attend the suppliers of capital´s expectations. The implications behind WACC definition is straight simple. The cost of capital of any firm depends on the composition of the equity and debt in its funding. By composition, we mean the percentage and the costs related to each of its components, as it can be summarized in the formula below: WACC = [Cost of debt x D/D+E] + [Cost of equity x E/E+D] In this sense, to obtain a WACC of any firm (or project) we must have the cost of debt, the percentage of the debt in the firms’ funding following by the cost of equity and its percentage. Taking a look at Joanna Cohen´s WACC calculation, there are some important things missing in her analysis: * Capital Sources: Mrs. Cohen used the book values to calculate the total capital employed by Nike. However, the correct approach would be to obtain these values...
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