Case Study Analysis: Nike, Inc.

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ANTONIO, PAUL ERIC G. 03 JUNE 2012 BUSINESS POLICY

Case Study Analysis: Nike, Inc.

Executive Summary

Nike, Inc. has had three years of shifts of revenue and profit increases. During the case years studied (1999-2001), the net income in 2001 for Nike, Inc. (589.7M) increased by only 1.8% over 2000. Increases from 1999-2000 were much more significant 28.3% (579.1M). For the year 2001, revenues at Nike increased by 5.5% over 2000 to 9.489B. Since 1997, the company’s success include maintaining the number two position in soccer (world’s number one sport), becoming a major player in the golf market, increasing its market value share in Europe, and becoming known as an apparel company. Nike announced a new goal in 2000-2003 to increase the women’s apparel business from 22% of the company’s sales to 30 percent.

Nike, Inc. Vision

“To bring inspiration and innovation to every athlete in the world.”

Nike, Inc. Mission

Nike, Inc. is the “largest seller of athletic footwear and athletic apparel in the world. Performance and reliability of shoes, apparel, and equipment, new product development, price, product identity through marketing and promotion, and customer support and service are important aspects of competition in the athletic footwear, apparel, and equipment industry.

Company Goals

• Lead in corporate citizenship through proactive programs that reflect caring for the world family of Nike, our teammate, our consumers, and those who provide services to Nike. • To carry on the legacy of innovative thinking, whether to develop product 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 our shareholders.

Company Policies/Values

• The contractor does not use forced labor, including prison labor, indentured labor, bonded labor or other forms of forced labor. • Contractor’s employees are at least age 16 or over the age for completion of compulsory education or country legal working age, whichever is higher. • Contractor’s employees are not subject to discrimination in employment, including hiring, compensation, promotion or discipline, on the basis of gender, race, religion, age, disability, sexual orientation, pregnancy, marital status, nationality, political opinion, trade union affiliation, social or ethnic origin or any other status protected by country law. • To the extent permitted by the laws of the manufacturing country, the contractor respects the right of its employees to freedom of association and collective bargaining. • Contractor’s employees are timely paid at least the minimum wage required by country law and provided legally mandated benefits, including holidays and leaves, and statutory severance when employment ends. There are no disciplinary deductions from pay. • Contractor’s employees are treated with respect and dignity. Employees are not subject to physical, sexual, psychological or verbal harassment or abuse. • Contractor’s employees do not work in excess of 60 hours per week, or the regular and overtime hours allowed by the laws of the manufacturing country, whichever is less. • Work is performed on the basis of a recognized employment relationship established through country law and practice. • The contractor provides a safe, hygienic and healthy workplace setting and takes necessary steps to prevent accidents and injury arising out of, linked with or occurring in the course of work or as a result of the operation of contractor’s facilities. • The contractor protects human health and the environment by meeting applicable regulatory requirements including air emissions, solid/hazardous waste and water discharge.

Corporate and Competitive Strategies Being Used

Nike, Inc. is pursuing a corporate growth strategy through product innovation; its focus is to create the world’s...
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