Bus 499

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  • Topic: Nike, Inc., Athletic shoe, Bill Bowerman
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Nike Inc.
BUS 499
Strayer University

Identify the company’s mission, vision, and primary stakeholders.
Nike was founded by Bill Bowerman and Phil Knight. The two men met when Bowerman was coaching track and field at the University of Oregon and Knight was a middle distance runner on his team. After earning an MBA from Standford, Knight returned to Oregon and approached Bowerman with an idea to bring in low priced, high-tech athletic shoes from Japan to compete in the United States athletic shoe market. With a handshake and a five hundred dollar investment by both men, Blue Ribbon Sports was born in 1964. BRS began importing shoes from Onitsuka Tiger, with Knight making sales at high school track meets and Bowerman relentlessly looking for ways to improve the product designs. Before long, their competitive spirits got the better of them and they branched out on their own, forming a new company in 1972 that would design, produce, and sell its own shoes (Hitt, Ireland, & Hoskisson 2011). The name of the company became Nike. Nike’s mission statement is “To bring inspiration and innovation to every athlete in the world”. Mr. Bowerman also said, “If you have a body, you are an athlete” (Nikeinc.com). Nike’s vision is to carry on Bowerman’s legacy of innovative thinking, whether to develop products that help athletes of every level of ability reach their potential, or to create business opportunities that set Nike apart from the competition and provide value for their shareholders (dillionsblogformarketing.wordpress.com).

Nike has fourteen primary stakeholders. The stakeholders can affect the company’s vision, mission, strategic outcomes, and performance. The current stakeholders are Anne Kelly- director of governance programs, David Chen- founder of managing director, Garrett Brown-Cal/OSHA, Helio Mattar-president, Jason Morrison-program director, Kavita Ramdas-CEO (Global Fund for Women), Kevin Carroll-author, speaker and agent for social change, Ma Jun-director (Institute of Public & Environmental Affairs), Melissa Brown-director (IDFC Global Alternatives), Paul Gilding-writer, advisor and advocate on climate change and sustainability, Peter Graf-chief sustainability officer (SAP), Tim Brown-president and CEO (IDEO), and Todd Moss-senior fellow and director of The Emerging Africa Project (Nikebiz.com).

Identify the five forces (5) of competition and how it impacts the company.
The five forces of competition are threats of new entrants, bargaining power of suppliers, bargaining power of buyers, threat of substitute products, and intensity of rivalry among competitors. The only visible forces of competition from Nike’s annual report are threat of new entrance, bargaining power of suppliers, threat of substitute products, and bargaining power of suppliers.

Nike has no new threat of entrance. Nike has been around for years. Nike has built relationships with suppliers, retailers and consumers that have been very successful. There has been time that the company has failed to meet the expectations. The history of their brand has prevented any new threat from coming into the industry. For the new competitor to come in an establish relationships with retailers, suppliers and consumers would take years. Nike would still be years ahead of the competition.

Nike’s bargaining power of suppliers is them producing outside the United States. In fiscal, year 2011, contract factories in Vietnam, China, Indonesia, and India manufactured approximately 39%, 33%, 24% and 2% of total Nike brand footwear, respectively. Nike also has manufacturing agreements with independent factories in Argentina, Brazil, India, and Mexico to manufacture footwear for sale primarily within those countries. The largest single footwear factory that Nike has contracted with accounted for approximately 6% of total fiscal 2011 Nike brand footwear production. Almost all of Nike brand apparel is manufactured outside of the...
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