Bill Bowerman and Phil Knight founded Nike Inc. as Blue Ribbon Sports in 1962 with a handshake. The two man team began the company with a combined investment of $500 each. They reached an agreement with a Japanese manufacturer of athletic shoes, forming BRS/Tiger shoes. Phil Knight started this company selling shoes from the trunk of his car. As the empire grew, the two man team developed the idea to cut overheard. In 1972, BRS and Onitsuka Tiger went different ways and thus Nike was born. "The first shoe was a soccer shoe that bore the Nike brand name, referring to the Greek Goddess of Victory, and the "Swoosh" trademark. A student designed the Swoosh trademark for a fee of $35" [Nikebiz. (2006). Nikebiz [The Inside Story]. . "Nike has its headquarters in Oregon although it doesn't do any manufacturing locally. Instead, Nike designs and markets its products here in the United States while contracting the manufacturing of all its products in the global network in over six hundred factories scattered around the globe while employing over 550,000 workers" (Charles W L Hill & Gareth R Jones, 2004, C129).In a little over three decades Nike has reportedly increased its earnings from forty million to over fourteen billion dollars annually.
Nike's mission statement was inspired by a man named Bill Bowerman who was not only one of the founders of Nike but a highly respected track and field coach who taught athletes the "secrets of achievement" at the University of Oregon. The mission statement of Nike is one of few words, but huge in meaning: "To bring inspiration and innovation to every athlete" in the world. [Nikebiz. (2006). Nikebiz [The Inside Story]. Nike's mission is to continue Bowerman's accomplishments though his eyes. One of Bill great quote is, "If you have a body, you are an athlete." [Nikebiz. (2006). Nikebiz [The Inside Story. This is the statement of the company, the statement that is supposed to be everything that they stand for. "Nike's mission for corporate responsibility is "To lead in corporate citizenship through programs that reflect caring for the world family of Nike, our teammates, our consumers, and those who provide services to Nike." [Nikebiz. (2006). Nikebiz [The Inside Story] While the mission does broadly identify the business they are in, namely the sports and fitness industry, it is not specific as to what products and services Nike provide. Nike goals include; "investing in solutions that are creative, high impact and empower impoverished girls by expanding their opportunities, capabilities, and choices which results in poverty alleviation; and contributing to positive change in the development field through an innovation model of corporate philanthropy that inspires heightened, highly effective corporate engagement in global problems". [Nikebiz. (2006). Nikebiz [The Inside Story]. There are over 12,000 Nike employers in the United States. Approximately 6,000 of them work in Oregon at the world headquarters, Wilsonville distribution center and various retail venues. Around 6,000 work in the Memphis, Tennessee distribution center and other retail stores around the country. Nike employs nearly 1,000 office personnel in a variety of regional locations.
Nike's major strength seems to be its competitive organization. The Nike world famous "Swoosh" logo is one of the most instantly recognized symbols in the world. Phil Knight has this logo tattooed on his ankle. Nike is not only a global brand but it has a very healthy dislike of its competitors. Nike is in fact the number one sport brand in the World. Nike has a very lean organization since it is not confined to buildings nor manufacturing workers. In fact, Nike has no factories; instead it subcontracts all of its products. In this manner Nike can manufacture its products in whatever Country is able to provide the quality of product at the lowest possible price. Therefore, if the cost of production...
References: Nikebiz. (2006). Nikebiz [The Inside Story]. Available from Nike, www.nike.com
Charles W. L. Hill & Gareth R. Jones. (2004). Strategic Management (6th edition Ed.) (George T. Hoffman, Ed.). Boston and New York, MA and New York: Houghton Mifflin Company.
(Charles W. L. Hill & Gareth R. Jones, 2004)
Please join StudyMode to read the full document