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Nike Inc. Case Study

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Nike Inc. Case Study
Nike, Inc. : Case Study in Operations Management

MGT 441
Prepared for: Dr. Davidson, Concord University
Prepared by:
Jeremiah Nelson
Johnathan Coleman
Emily O’Dell

December 4th, 2012

Introduction Low-cost, time-efficient manufacturing of goods is a key feature of a successful production company in today’s competitive global economy. Operations management, often abbreviated in the business world as OM, is defined as “...the set of activities that creates value in the form of goods and services by transforming inputs into outputs (Heizer and Render, p. 4).” Every day, factories take in raw materials and use the labor hours and skills of their employees to transform those same materials into a variety of consumer products, as quickly as is possible to turn out a high-quality product. One of the leading firms in the high-performance athletic wear business is the industry giant Nike, Inc., a longstanding member of the Dow Jones U.S. Footwear Index. Brilliantly successful in all three functions that organizations perform in operations management to produce goods (and services)--marketing, production, and financing, Nike, Inc. (who also owns brands Converse, Hurley, Umbro International, and Cole Haan) has consistently outperformed its competitors both in the stock market and in consumer products. As they seek to fulfill their mission statement: “To bring inspiration and innovation to every athlete in the world (Nike.com).”

Global Environment and Operations Strategy Today’s market is a global one, and every country’s success depends on how well it interacts with other countries with which it does business, creating a global interdependence. The ability to be flexible in sources of supply and export/import duties, which is essential to operate internationally, is something in which Nike excels. Founded in Oregon in 1968, today Nike has become hugely successful both nationally and internationally, with 16 non-U.S. distribution centers that helped



Cited: Heizer, J. H., & Render, B. (2011).Principles of operations management (8th ed.). Upper Saddle River, N.J.: Pearson Prentice Hall. NIKE, Inc. - The official corporate website for Nike and its affiliate brands.. (n.d.).NIKE, Inc. - The official corporate website for Nike and its affiliate brands.. Retrieved November 20, 2012, from http://www.nikeinc.com NIKE, Inc.— Inspiration and Innovation for Every Athlete in the World.. (n.d.).NIKE, Inc.— Inspiration and Innovation for Every Athlete in the World.. Retrieved November 20, 2012, from http://www.nike.com NIKE, Inc.. NIKE 2011 Annual Report. (2011). Form 10-K, Pages 1-62.

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