A Comprehensive Strategic Management Case

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Case 2: Nike, Inc. – 2009
Case Notes Prepared by: Dr. Mernoush Banton
Case Author: Randy Harris

A.Case Abstract

Nike, Inc. (www.nike.com) is a comprehensive strategic management case that includes the company’s fiscal May 31st, 2009 financial statements, competitor information and more. The case time setting is the year 2009. Sufficient internal and external data are provided to enable students to evaluate current strategies and recommend a three-year strategic plan for the company. Headquartered in Beaverton in the U.S. state of Oregon, Nike is traded on the New York Stock Exchange under ticker symbol NKE.

B. Vision Statement (Actual)

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

C. Mission Statement (Actual)

“To be the leading sports brand in the world.”

Mission Statement (Proposed)

As the largest seller of athletic footwear and athletic apparel in the world (2, 3), we create products for consumers and athletes (1) who enjoy having quality products that are high performance and reliable, such as shoes, apparel, and technologically advanced equipment) (4). Our dedicated employees (9) continuously work on developing new products, price, and product identity through marketing and promotion (7). The company aims to lead in corporate citizenship (8) through proactive programs that reflect caring for the world family of Nike (6) and by ensuring continuous growth and profitability to our investors and stakeholders (5).

1. Customer
2. Products or services
3. Markets
4. Technology
5. Concern for survival, profitability, growth
6. Philosophy
7. Self-concept
8. Concern for public image
9. Concern for employees

D.External Audit

CPM – Competitive Profile Matrix

|  |Nike |Adidas |Puma | |Critical Success Factors |Weight |Rating |Weighted Score |Rating |Weighted Score |Rating |Weighted Score | |Price competitiveness |0.10 |3 |0.30 |2 |0.20 |1 |0.10 | |Global Expansion |0.07 |4 |0.28 |3 |0.21 |2 |0.14 | |Organizational Structure |0.04 |3 |0.12 |1 |0.04 |1 |0.04 | |Technology |0.09 |3 |0.27 |1 |0.09 |2 |0.18 | |Product Safety |0.15 |2 |0.30 |3 |0.45 |4 |0.60 | |Customer Loyalty |0.09 |4 |0.36 |3 |0.27 |2 |0.18 | |Market Share |0.09 |4 |0.36 |3 |0.27 |2 |0.18 | |Advertising |0.12 |4 |0.48 |3 |0.36 |2 |0.24 | |Product Quality |0.12 |3 |0.36 |2 |0.24 |1 |0.12 | |Product Image |0.07 |4 |0.28 |3 |0.21 |2 |0.14 | |Financial Position |0.06 |4 |0.24 |3 |0.18 |2 |0.12 | |Total |1.00 |  |3.35 |  |2.52 |  |2.04 |

Opportunities...
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