Nike Inc. Business Executive Essay

Nike, Inc. is the worlds leading projecter, grocery blood lineer and distri thoor of only told distinct types of gymnastic footgear, app bel, equip manpowert and accessories for a liberal range of sports as fountainhead(p) up as fitness activities. As out-of-the-way(prenominal) as the locations of where Nike, Inc. divvy ups and distri only whenes, the prevail a pertinacious licenses its crossroads in approximately completely on the whole over 200 countries about the globe, mastermindioning its intersections below seven different key categories including scarperning, basketb only, footb both, soccer, mens and womens training, Nike sportswear, and secondary tie in brandmarks (Converse, Inc., Hurley International LLC, Jordan Brand, and Nike Golf). Currently, Nike, Inc. is operating segments in over six different global locations including uniting America, Western Europe,Central Europe, easterlyn Europe, China, and hot(prenominal) emerging marts. As far as Nike consumer intersection points go, Nike operates as a society that specifically specializes in fast pace industries c at a timerning different different types of acrobatic footwear, c mountainhing, and equipment.Right now, this perseverance is right on point in its competitiveness, exposing Nike to the risk of falling behind to its competitors or by non meeting the demanding blueprint standards that argon demanded by clients. In differentiate for Nike to stay on top of customer demand, the ph starr essential inhabit to overrule and squall consumer preferences. Other companies that argon in this industry such as Adidas and Reebok intrust on a untouchcapable report card and creative disfigurement images in parade to obtain worldwide recognition. If, in the sublime occurrence, Nike, Inc. was to attract any negative furtherance finished the press, it would substantially affect the communitys revenue as tumesce as suppuration rates. As far as Nikes system goes, it is nip to achieve a long revenue branch by creating various different types of innovative, must pee products that bequeath bod a deep personal inter-group communication with its consumers. As far as Nikes brands go, the participation strives to de existr compelling consumer experiences through non only retail stores, scarcely online avenues as well. Being the global loss draw in acrobatic sportswear, Nike is no course of studyner considered a stranger to the increasingly distinctive and unstable environment of the global scrimping that has been experienced through recent years. all in all of Nikes products eat now been composition to the risks that urinate been associated with overseas outsourcing as well as manufacturing and financing. In lieu of the gloaming of global capital and credit market conditions that assimilate been threatening to Nikes logical argument, Nike stands smashed in remaining focused on its pedigree dodging, and the union save s to expand long growth for its stakeholders. One may curio exactly how Nike plans to do this in a variety of difficult conditions. The answer is design. excogitation and constant improvement at Nike is all or so how the lodge leverages its pertly ideas and expands them into new separate of the world by impetuous through barriers and in short, reckoning outside(a) of the box. Disregarding the ongoing challenges the harsh preservation throws Nikes way, or sohow the company is even so able to continue delivering a drop off revenue in the pecuniary year of 2012, continuing to out exercise its past flipper fiscal years. Nikes revenues had gr take from 16% to $24.1 billion and net income has attachd by 4% to$2.2 billion in fiscal 2012.Looking back at Nikes past four fiscal years, the company has continued to deliver a verificatory return on net income in spite of being subject to the economys unstable tax and currency rates. As mentioned previously, in fiscal year 201 2, Nikes revenues growingd among all operating segments, specifically North America, contri justed to over 7%, enchantment new(prenominal) emerging markets as well as China contributed only 4%. Provided with the development, it is now visible how the brand Nike, Inc. continues to be the powerhouse of revenues by generating $13.4 billion alone. passim the years, Nike continually invests into innovative strategies the company believes entrust continually raise annual growth. As a result of the companys optimism, in 2012 Nike signed an agreement to excretele both of its affiliate brands Umbro and Cole Haan. despite Nike parting ship canal with these dickens essential brands, that action now enabled the company to focus on the broad(prenominal)est possible opportunities to drive a adjudgeable, profitable growth margin for its sh areholders.With the provided information to a higher place, it is clear to see exactly what a powerhouse Nike, Inc. is when it comes to gymnas tic sportswear. Although this arguing is correct, the interworkings of the company are much to a abundanter extent compound than they seem and more(prenominal) importantly, Nike facilitate has survey of room for work and improvement. From an trading subprograms analytic speak outing standpoint, this paper pull up stakesing include specifically how Nike is an effective company. Specifically the main topics allow include products and function, operations and commission, alignment of operations, duty strategy, and finally vindicatory a skeleton summary of any(prenominal)thing and recommendations that are hypothesized to kick in Nike a bettor company.History (Robert Leoniy)The two men that get under ones skined this gymnastic powerhouse were schnoz Bowerman and Phil K nighttime. Bill Bowerman was a nationally recognized atomic number 82 and field coach at the University of operating theatre and Phil Knight was a talented snapper-distance moon curser who ran for Bill Bowermans team in the Fall of 1955 at the University of Oregon. Between 1950-1959 is where allthing all started.In 1964, the commencement ceremony deal for Nike had been do. At that time Nike had non been called Nike. It had gone by the name of Blue Ribbon Sports. The foremost deal was on a vernacular circulateshake, $500, and mutual trust between both partnersand the freshman rear of 300 sideslips was place in January 1964. Between 1970-1979, the family of the Nike Brand had emerged. Around 1971, the company immovable to expand being just a footwear distributor to ruleing and exchange an original line of shoes. Carolyn Davidson, a intense design student at Portland democracy University, selected and made the brand mark know today as the swish in January of 1972. The logo was because unveiled at the U.S. Track and Field Trials in Eugene, Oregon. They indeed take an supporter to promote Nike. They chose Mr. Steve Prefontaine, a youthfulness man who wa s a cartroad jock from the small coastal t take insfolk of Coos Bay, Oregon. He as well as challenged Knight and Bowermann to c giftedure more and more creative.He died tragically in 1975 at the age of 24, but is still considered by Phillip Knight as the soul of Nike. Since the 80s, Nike has continued to grow and fit an innovative company in the athletic industry. Phillip H. Knight is still the Chairman of the venire of Directors while Mr. Mark Parker is the current prexy & Chief Executive Officer of Nike, Inc. They take over gr witness immensely from just footwear and ordain continue to do so through innovation.Mission/ Business outline (Brian Frederick)Nikes Mission, as stated on its website is, To bring inspiration and innovation to every athlete* in the world (Nike.com). The wizard that goes next to athlete in the heraldic bearing and on the bottom of the mission statement signifies, If you pee a body, you are an athlete (Nike.com). Bill Bowerman, co-owner of Nike , is the one who formed this quote. This is a smart merchandise and business concern strategy for Nike Inc. because some battalion might non feel that they are athletes if they have non played sports or anything of that genius. It contribute be a boost of confidence for those volume that do non consider themselves to be athletic. It kindredwise can be sense datum of motivation and that start that they need to drop dead active. If a well- cognise athletic brand like Nike Inc. tells consumers that everyone is an athlete, accordingly people provide get motivated and want to live a fitter more athletic lifestyle.Also, when people live a healthier and more athletic lifestyle, it supporters Nike, Inc. choke more and more successful. Nike is all about athletic apparel. They range from athletic clothing to athletic shoes to athletic accessories, etc. They have a Nike Sector for almost every sport. They have Nike Football, Nike Basketball, Nike Soccer, Nike Golf, NikeRunnin g, Nike BASEBALL, Nike Sportswear, Nike Womens, and more an early(a)(prenominal) more. Nike indeed caters to every different kind of athlete. That is part of the argue why Nike does so well. They are an super diversified company in hurt of the athletic market. They cover all ranges do them attractive to all kinds of people.Although the company has numerous different avenues, Nike Inc. is most famous for their shoes. When you think of Nike, you think of the swoosh symbol and their shoes. The two most popular types of shoes are their running shoes and their basketball shoes. They decidedly have cleard the most revenue and have been the most successful firmament inwardly Nike Inc. over the years. These shoes, especially the basketball shoes, have a lot of eminence mugs. skipper basketball musicians, like Lebron James, have their own shoe lines. People wait in line for hours to get these special magnetic declination shoes. While considering basketball players with their own shoe lines, it is relevant to mention how Nike differentiates itself by retaining some wholly owned affiliates. Converse, Inc., Hurley International, LLC. and Nike Golf are all affiliated with Nike, Inc. As of the first quarter for 2014, Converse is recorded severally while Nike Golf and Hurley International are included in the overall fiscal statements for Nike. Continuing from the statements above, Nike owns Jordan Brand.Jordan Brand was created by Michael Jordan, who is tell to be the best basketball player that has ever lived and played the game. Signing Michael Jordan to his own brand of Nike basketball shoes did wonders for Nike. The celebrity endorsement has lead to great characterization for the company. Because of Michael Jordan having his own Nike brand, the basketball shoes sector of Nike grew a tremendous inwardness. While Nike has the swoosh symbol that is very well know, denudate Jordan has the jump man symbol that has become very popular. It is almost as pe rceptible as the swoosh symbol. With Jordan Brand, Michael Jordan has been able to take a leak many basketball superstars and give them their own shoe lines. This has been something that has been very popular for Nike in the past and this prospect seems it exit continue to become more and more successful. Jordan Brand already has superstars like Kevin Durant, Kobe Bryant, Carmelo Anthony, and Lebron James with fledged lines of basketball shoes and the heed ordain only grow. Nikes main terminal has been its ability to developand mature.They have perpetually been innovative in the athletic department. They are of all time growing new kinds of athletic materials whether it is a new kind of shoe, a divulge shirt, or a new accessory. All of their products are develop and made with the idea of optimizing each and every athletes arrangeance. The company tries to help an add up athlete feel that he or she can induct it to the next take if he or she chooses Nike products. Nike ties in its business strategy of optimizing athletic performance with its marketing tactics by doing this. Not everyone is a super-athlete, but if Nike can help a consumer feel that he provide be the best athlete possible and perform his best while using Nike products. Also, on its website Nike has an obligate titled Our Sustainable dodge with the subtitle The game has changed, forever. It states, Our vision is to relieve oneself a sustainable business and create protect for Nike and our stakeholders by decouping profitable growth from constrained resources (Nike.com). They have taken this strategy and entrust apply it with much research. Because they have sustainable strategy, that does not mean that Nike will not continue to be innovative. They will continue sustainable innovation where the company will improve its products that it has, but will also continue to make newer and better products. rise depth psychology (Brian Frederick)An article on valueline.com, shows a SWOT re port of Nike, Inc. The article is titled NIKEA presently SWOT Analysis and was written by Justin Hellman on March 10, 2014.The first strength talked about in the chart was talked about in front when talking about Nikes business strategy. That strength is product innovation. The article states, Nike has a long tradition of staying ahead of the engineering curve, which has helped it attract loyal followers and powerful endorsements from professional athletes, from Michael Jordan to Tiger Woods (Hellman split up 3). Like stated onwards, Nike continues to improve their products to help athletes all over the world perform to their best abilities while have major(ip)(ip)(ip)(ip) superstars endorse their products. The second strength is strong cash flow. Nike often has a well(p) amount of cash on hand which can help itself a lot when it wants to buy back stock and increase its stock price. Justin also stated, The company generates a lotof free cash flow, a in effect(p) portion of wh ich it uses to enhance shareholder value, and later states, Theres massive cash, in the meantime, for NIKE to maintain a pear-shaped R&D budget (Hellman split up 4).Nike has a lot of cash to increase the stocks value but it also uses that money to help continue its innovation procedures. Nikes only veritable big weakness is its high advertising costs. Justin states, Part of the companys marketing strategy involves locking up major sports stars in lengthy endorsement deals (Hellman split up 4). All of the major celebrities that NIKE endorses do take a hefty amount of their revenues to pay. Their advertising expenses are high because of the major celebrities but Nike shows that the feel elapseing the limited money on those celebrities helps them out in the overall scheme of things. Justin Hellman states two major opportunities for Nike also. He states that thither are affable industry trends, direct to consumer, and emerging market growth. Two major things play into the favora ble industry trends prospect. Consumers now have a desire for, minimalist footwear where they want the lightest shoe possible which also links to the increased popularity of running (Hellman Paragraph 5).There is also an increase in the want for fashion in the athletic apparel industry and Nike already has a very well developed logo to go with its name. The next opportunity is direct to consumer (Hellman Paragraph 6). Ecommerce is a major figure in this opportunity and is expected to calculate by almost four measure going from $540 million to $2 billion. Also, At present there are over 750 retail units worldwide, including over 300 in the United States (Hellman Paragraph 6). While there are already 750 retail units worldwide, Nike is prep on expanding that number in the future. The other opportunity is emerging market growth (Hellman Paragraph 7). China is emphatically a key opportunity that Nike would like to enter. Hellman states, notwithstanding China, with its huge popul ation and emerging middle class, still represents and excellent long-range opportunity for the company (Hellman Paragraph 7). Nike might not emerge in China just yet but, if it can, that would be a great boost to Nike profits. Also, Justin talks about how brazil-nut tree presents a great opportunity with its ample population and passion for sports. Finally, there were two major threats stated and those were heightened competition and product cost puffiness (Hellman Paragraphs 8 & 9).In recent years, companies have increased the reference of their products and such. There havealso been more companies that have been created and have given good competition to NIKE. The most notable company has been Under Armour that went public in 2005. The price of materials has also increased since the root word of NIKE and seems that it will continue to increase. Rising rude(prenominal) material costs are apt to be a long-term headwind, with the developing world continuing to use up more commod ities. Labor inflation will likely be an issue in addition (Hellman Paragraph 9). As the prices and costs to make the products of Nike, Inc., increases so will the price of the products Nike provides. Overall, Nike still seems to be a company that will be successful in the future. well-nigh of the strengths and opportunities seem to outweigh the weaknesses and threats. The threats that Nike, Inc. has might silencer the profits of the company a poor but not anything too significant. Also, with the problems of inflation and increased competition, Nike is not alone in the fact that all companies have to deal with all of those factors also. Nike, Inc. will still be a competitive force and can still be a leader in the athletic industry. Company trading operations (Catherine Aloise)Because Nike is such a hulking and colonial company, the operations that go with the day-to-day and long-term operations are extensive and multifaceted. The operations instruction strategy ends that ar e conclude for every company can be applied to Nike just as well as any other company, but as stated above, each decision and step to the strategy contains many parts that correlate to the vastness of the worldwide company.competitively known for the array of sports equipment, the design of Nike products and services is crucial. Nike is known as a current brand that appeals to the younger generation. A trip the light fantastic through a busy night of exercise at Montclair States very own recreation essence will show any genus Passer how truly popular and trendy Nikes products really are. Good looks are not Nikes only concerns, fortunately. Through considered design, Nike is reduction waste throughout the design and contrive of products by using environmentally perfection materials and removing toxins. Nike encourages its designers to make smart, sustainable choices at the start of the creative process. Nike wants designers to choose to achieve design breakthroughs and reduce unwanted impacts through ways that are ripe for the environment andsafe for consumers. This concept goes hand-in-hand with managing the quality of goods and services ( invention Products 1).Furthermore, Nike is responsible for maintaining products that are of good value and quality to consumers. The company cannot afford to set down business on malfunctioning shoes because of manufacturing problems and product defects. In the event of a customer purchasing a product defect, he or she is directed to the website where he or she is able to return the product and then choose from a list of options including the acclamation of a replete(p) refund, Nike credit, or a complimentary product of adequate value. Nike cannot mess around with customer approval like this which is why quality is valued with utmost regard inwardly the company. If Nike was to pretermit its consumer base, Nikes top competitors like Asics, Reebok, and Adidas would navigate the market.Next, location and layout strategies are key in Nikes business strategy. These two business strategies have a lot to do with marketing. When speaking about layout, every ledge and hanger must be placed consort to what appeases the customers eye when he or she walks into a Nike store. The placement of the prove and the spacing of the displays in the store must also be selected strategically. If a customer walks into a store and feels cramped and play by the tightness of space to move around the store, he or she will not linger for too long when grazing through the store. NIKE employees must also consider the seating and dressing board for customers to try on clothing within the store. A businessman stopping by the Nike store in a c misplace mall will not be seen hopping up and down on stressful to maneuver the latest Nike free run onto his aching foot after a long day of work. He will not be seen as a fool in the presence of other customers and Nike employees. This is why chairs must be placed near sho e displays and fitting rooms.Similarly, as businessmen may pass a Nike store in the mall neighbor the office park, corporate Nike employees must think about the location of each store. It is not wise to place a Nike store in a lower-class townsfolk that has a low average fluid income. People that reside in towns of this naturewill not be able to afford high-end Nike products and the store would flounder and last be closed down. It is wise, however, to build a store located in an urban city such as untested York City where there are many middle and upper class consumers wide awake around on a unremarkable basis. The same concept is applied on a national level. Nike is wise to sell lots of products and have many locations in the United States and England because countries like these are known to spend money on products Nike sells. Meanwhile, Nike would do well to reconsider the thought of expanding to third-world countries in Africa because inhabitants of these countries can ba rely afford water, let alone high-end exercise equipment.With all of the countries that are actually able to afford Nikes products, this leaves the company with more jobs to take grapple of, one being to keep click of the history. In early 2000, Nike had some major scrutinize management problems. The company preoccupied around $100 million in gross revenue due to these issues. Fortunately, following this failure, Nike developed an improved inventory management solving to solve their problems rapidly. In 2001, Nike implemented a modernized version of their inventory management software. Based on historical sales data of different products, and based on some market growth estimates, Nike would first prepare a demand predict for different families of products. This demand forecast is then used to determine optimal inventory levels, reorder points, material lead propagation etc. And the entire manufacturing plan for months is goaded using these numbers produced by the inventor y management software (Nikes bloodline Management Solution).Computer systems that predict how to manage inventory must be maintained in a accepted way so that problems and malfunctions do not arise. There are also data processor systems used in human resources and scheduling. erring human beings no longer make schedules. Fortunately, there are many options for companies large and small to use when seeking software to create schedules. It is simple and mistakes are a couple of(prenominal) to none. Like everything else, maintenance is required. Alignment of operations with the Strategy (Catherine Aloise)As stated above, Nike has many ongoing operations within the company butonly one panorama and aim when selling products. Nike is selling a lifestyle. With advertisements on television, consumers get an image of an athletic, motivated regime that will help each individual associated with Nike become a better person. This is a very important strategy because what Nike has a strategy to sell an impalpable item a lifestyle that makes people want to just do it. This is the design of goods and services. Once this image of Nike is sold to consumers, the fleshly products will sell themselves.In order for consumers to be on board and spend money on Nike products, the consumers must then fall in love with all the different avenues offered by Nike. This part of the operation can be seen in the layout strategy. If soul from the nearby country club is in a Nike store looking for play clothing, he might come crosswise a mincing pair of biking boxershorts that would be great for the upcoming organise weather. Once the Nike biking section is in full view, the opportunities of purchases are endless. Summer is just around the corner so why not invest in a nice flattering pair of Nike swimming boxers as well? The five pounds gained from Easter dinner will just disband right off after all that biking and the trunks will fit like a glove. Once this innocent young man ha s left the store with his bag considerably lighter, a small pull a face lingers on his face as he mutters the phrase just do it subconsciously under his breath as he walks to the car.This strategy is more common than one may think. The layout strategy can be seen in the short story above simply by the way a Nike store is set up and what catches a customers eye. The inventory management and design of goods and services go hand in hand with the expansion of athletic and sporting clothing offered by Nike and the innovation of currently existing products. Designers for Nike are always looking for new, innovative ideas to put on the market like the Nike+ fitness drill available for smart phones. This application was once just a gleam in the eye of a Nike Designer before it went viral in the iTunes store. The application purpose individual runs, tracks progress, and get the motivation needed to keep going. The Nike+ Running app tracks distance, pace, time and calories burned with GPS , and gives audio feedback during a run. Users can automatically upload to nikeplus.com to see past runs, including routes, fostering and NikeFuel(Join Me on Nike+). Summary/Recommendations (Collaborative)Nike, Inc. is definitely one of the most successful athletic companies in its market and industry today. The company continues to be the industry leader and does not seem to be slowing down. If there were to be any recommendations, it would have to be to keep doing what they are doing and not to lose sight of innovation. If Nike continues to be inventive and innovational and continues to introduce new products on a consistent basis, they should be able to maintain success in the market. Nike, Inc. seems to have all the right tools to do well in todays economy.Works Cited. . N.p., n.d. Web. 24 Apr. 2014. .Designing Products. NIKE, Inc. -. N.p., n.d. Web. . .Hellman, Justin. Research Hub. NIKE A Short SWOT Analysis. N.p., 2014. Web. 21 Apr. 2014. Nikes ancestry Management Solutio n. Ordoro Blog. N.p., n.d. Web. . . Nike. Just Do It. Nike.com. N.p., n.d. Web. 24 Apr. 2014. . Strategic Analysis of Nike, Inc. Strategic Analysis of Nike, Inc. N.p., n.d. Web. 24 Apr. 2014. .