NIKE PROJECT

About NikeNike is a major publicly traded sportswear and equipment supplier based in the United States. The company is headquartered in Beaverton, near the Portland metropolitan area of Oregon. It is the world's leading supplier of athletic shoes and apparel and a major manufacturer of sports equipment with revenue in excess of $18.6 billion USD in its fiscal year 2008 (ending May 31, 2008). As of 2008, it employed more than 30,000 people worldwide. Nike and Precision Castparts are the only Fortune 500 companies headquartered in the state of Oregon, according to The Oregonian.

1 NIKE PROJECT

The company was founded on January 25, 1964 as Blue Ribbon Sports by Bill Bowerman and Philip Knight, and officially became Nike, Inc. in 1978. The company takes its name from Nike (Greek word), the Greek goddess of victory. Nike markets its products under its own brand as well as Nike Golf, Nike Pro, Nike+, Air Jordan, Nike Skateboarding and subsidiaries including Cole Haan, Hurley International, Umbro and Converse. Nike also owned Bauer Hockey (later renamed Nike Bauer) between 1995 and 2008. In addition to manufacturing sportswear and equipment, the company operates retail stores under the Niketown name. Nike sponsors many high profile athletes and sports teams around the world.

HISTORY

Nike, originally known as Blue Ribbon Sports, was founded by University of Oregon track athlete Philip Knight and his coach Bill Bowerman in January 1964. The company initially operated as a distributor for Japanese shoe maker Onitsuka Tiger, making most sales at track meets out of Knight's automobile.

The company's profits grew quickly, and in 1966, BRS opened its first retail store, located on Pico Boulevard in Santa Monica, California. By 1971, the relationship between BRS and Onitsuka Tiger was nearing an end. BRS prepared to launch its own line of footwear, which would bear the newly designed Swoosh.The first shoe to carry this design that was sold to the public was a football shoe named "Nike", which was released in the summer of 1971. In February 1972, BRS introduced its first line of Nike shoes, with the name Nike derived from the Greek goddess of victory. In 1978, BRS, Inc. officially renamed itself to Nike, Inc. Beginning with Ilie Nastase; the first professional athlete to sign with BRS/Nike, the sponsorship of athletes became a key marketing tool for the rapidly growing company.The company's first self-designed product was based on Bowerman's "waffle" design. After the University of Oregon resurfaced the track at Hayward Field, Bowerman began experimenting with different potential outsoles that would grip the new urethane track more effectively. His efforts were rewarded one Sunday morning when he poured liquid urethane

2 NIKE PROJECT

into his wife's waffle iron. Bowerman developed and refined the so-called 'waffle' sole which would evolve into the now-iconic Waffle Trainer in 1974.By 1980, Nike had reached a 50% market share in the United States athletic shoe market, and the company went public in December of that year. Its growth was due largely to 'word-of-foot' advertising (to quote a Nike print ad from the late 1970s), rather than television ads. Nike's first national television commercials ran in October 1982 during the broadcast of the New York Marathon. The ads were created by Portland-based advertising agency Wieden+Kennedy, which had formed several months earlier in April 1982.Together, Nike and Wieden+Kennedy have created many indelible print and television ads and the agency continues to be Nike's primary today. It was agency co-founder Dan Wieden who coined the now-famous slogan "Just Do It" for a 1988 Nike ad campaign, which was chosen by Advertising Age as one of the top five ad slogans of the 20th century, and the campaign has been enshrined in the Smithsonian Institution. San Franciscan Walt Stack was featured in Nike's first "Just Do It" advertisement that debuted on July 1, 1988.Throughout the 1980s, Nike expanded its product line to include many other sports and regions throughout the world.

ProductsNike produces a wide range of sports equipment. Their first products were track running shoes. They currently also make shoes, jerseys, shorts, baselayers etc. for a wide range of sports including track & field, baseball, ice hockey, tennis, Association football, lacrosse, basketball and cricket. The most recent additions to their line are the Nike 6.0, Nike NYX, and Nike SB shoes, designed for skateboarding. Nike has recently introduced cricket shoes, called Air Zoom Yorker, designed to be 30% lighter than their competitors'. In 2008, Nike introduced the Air Jordan XX3, a high performance basketball shoe designed with the environment in mind.Nike sells an assortment of products, including shoes and apparel for sports activities like association football, basketball, running, combat sports, tennis, American football, athletics, golf and cross training for men, women, and children. Nike also sells shoes for outdoor activities such as tennis, golf, skateboarding, association football, baseball, American football, cycling, volleyball, wrestling, cheerleading, aquatic activities, auto racing and other athletic and recreational uses. Nike is well known and popular in youth culture, chav culture and hip hop

3 NIKE PROJECT

culture as they supply urban fashion clothing. Nike recently teamed up with Apple Inc. to produce the Nike+ product which monitors a runner's performance via a radio device in the shoe which links to the iPod nano. While the product generates useful statistics, it has been criticized by researchers who were able to identify users' RFID devices from 60 feet (18 m) away using small, concealable intelligence motes in a wireless sensor network.In 2004, they launched the SPARQ Training Program/Division. It is currently the premier training program in the U.S.

Some of Nike's newest shoes contain Flywire and Lunarlite Foam. These are materials used to reduce the weight of many types of shoes.In the video game Gran Turismo 4 there is a car by Nike called the NikeOne 2022, designed by Phil Frank.

Manufacturing

Nike has contracted with more than 700 shops around the world and has offices located in 45 countries outside the United States. Most of the factories are located in Asia, including Indonesia, China, Taiwan, India, Thailand, Vietnam, Pakistan, Philippines,and Malaysia.Nike is hesitant to disclose information about the contract companies it works with. However, due to harsh criticism from some organizations like CorpWatch, Nike has disclosed information about its contract factories in its Corporate Governance Report.

4 NIKE PROJECT

ASSEMBLY LINE

For the education, We studies about general working step, after that we can take the result to analy for improvement in the next.

For the education of thes work instructure, will start from collection many data in the current condition of the sale of sport shoes assembly line by notice, interrogate, masure time taken, record and study the old data of factory from planning division manager, Chief department, Chief worker and workers in the assembly line of the sole of sport shoes. When we already got the data, we took them to study and analyse. It made us know the problem on assembly line of the sole of sport shoes that is the times problem. They use many times (much -more times) in production line. We use the principle of Motion and Time Study to find the cause of problem and to solve all of them for the high efficiency job including to increase the quantities of products

5 NIKE PROJECT

When the production process was already improved, we can decrease the number of employees and reduce the cycle time of production that it made the short time to produce and to increase the quantities of product. Besides, It'

s tobe increase the productivity line . The assembly line workers handled about 3,400 sneaker shoes per day on the assembly line. A completed shoe weighed 200-500 g. The metal last weighted 400-1,200 g. As the lines were not completely mechanized, the workers passed shoes to the next worker by hand. 2) In the line selected for the study of work actions, 28 female workers and one male worker were engaged. The work direction of the line was one-way (from left to right or vice versa). The actions of the workers were classified into four fundamental actions: i) grasping the shoe or tool, ii) extending or iii) bending of the arms, and iv) keeping the arms in a certain position. These fundamental actions were repeated more than 3,400 times per day by each worker. The time spent in holding a shoe in the left hand was longer than that of the right hand in holding a shoe or tool. 3) Results of medical examinations showed a higher prevalence in assembly line workers than that in non-assembly line workers. Especially the prevalence rate of tapping test, pain sensibility test, vibratory sensibility test, Morley's test, tenosynovitis in the fingers, tenderness at spinal muscle around the thoracic vertebrae, levator muscle of scapula, trapezius muscle, rhomboid muscle, infraspinatus muscle, greater pectoral muscle, anterior scalene muscle, thenar eminence, biceps muscle of arm, brachioradial muscle, and antebrachial flexor muscle were found to be different significantly by McNemar's test between the two groups. These disorders were appeared in the left shoulder, arm and hand. 4) As the non-assembly line workers were not engaged in compulsory work or in one-way work direction, they injured the right side (skillful side). On the contrary, it is considered that compulsory transfer of shoes and one-way work direction imposes a heavier load on the left side of the body in assembly line workers, and consequently

6 NIKE PROJECT

they injured the left side more severely. 5) It is concluded that the sustained task of handing over shoes to the next worker or one-way work direction caused cervicobrachial disorders of assembly line workers, especially on the left side of the body.

Customer Driven Production PlanA customer order driven production planning method is developed by combining the buying behavior of the customers, i.e. the required customer delivery lead time, with the production capacity needed to meet the customer orders. The method can be applied in order to determine the WIP cap and the work-ahead-window of a CONWIP controlled production and can also be used to implement a new market driven production planning. In addition an a priori check is presented to investigate the ability to install a pure make to order system

TEAM CONCEPTS

IMPORTANT TEAM CONCEPTS1. How to drill, the buddy system and intensity Drill to teach and learn Drill to work out and get in match shape Drill to learn the moves better2. Train for mastery, train to win Train to get into shape Train to get better Train to be better Train right to perform right3. Avoiding illegal holds and techniques Don't use illegal holds or techniques that cost you points or matches4. Practice rules and training rules5. Come on time6. Come to practice hard7. Have a positive attitude8. Listen to the coaches9. No talking in the wrestling room or weight room10. Bring both wrestling and running shoes to practice every day11. Team work and team goals12. To learn to love wrestling13. Learn to work hard for your goals in and out of wrestling14. Learn to win...and lose...sportsmanship

7 NIKE PROJECT

15. Learn to practice correctly16. Learn what it is to be a good wrestling team mate17. Learn responsibility to your team, teammates, and yourself18. Learn that losing is easy and winning is hard19. Get better everyday, every week, every match, every month, every season20. Improve every day21. Be a good citizen22. Be a good student23. Set high goals for yourself and your team24. Act vs. React25. You set the pace of your matches26. Take control of you practices and matches27. Take charge, don't be taken in charge of28. Workout gear29. Recommend getting your own headgear30. Bring both running and wrestling shoes31. Recommend bring extra shirt32. Wear gear that fits, no baggies33. Wash workout gear everyday, recommend buddy system34. Bring your own water to practice35. Fund raising

PRODUCTION PROCESSA New Approach in CAD System for Designing Shoes The needs on shoe market change today faster than ever. The shoe series are therefore smaller and the new shoe models have to be developed faster. The classical design of a new shoe is bound to the shoe last that is the form on which a shoe is constructed. The last gives the shoe a shape.To construct the appearance of a new shoe, the style lines are drawn on the shoe last. The style lines are geodesic curves that partition the shoe last surface in the 3D patches which have to be flattened in the plane to\ get cutting model for shoe uppers manufacturing.The flattening of these patches is therefore a reverse engineering process to assembling the leather parts for the shoe upper. This process is expensive and requires a well-trained developer. To make the design process faster and the production of new series cheaper, special CAD/CAM systems are used. The final result obtained by all CAD systems for the shoe design is a flat pattern based on the

8 NIKE PROJECT

style lines, drawn on the shoe last. To generate flat patterns, the shoe last has to be digitized. The style lines can be drawn either on the real shoe last or later on the digitized one. If the style lines are drawn on the real shoe last, the lines have to be digitized, too. The designing of shoe uppers consists of two phases: reconstruction of digitized surfaces and flattening of these surfaces. An especially hard problem is flattening of the digitized surface since distortions like tearing and overlapping can occur in resulting flat pattern. Generally, an arbitrary surface cannot be unrolled into the plane without the distortions, since the distortions can only be completely eliminated if the surface is developable.It is clear that the pattern designer wishes to reduce distortions to the minimum. This is very hard to do automatically, although some methods reducing the distortions significantly exist already.Especially serious problems in pattern generation are caused by overlaps in generated pattern.Since deriving patterns from 3D surfaces is an old problem.many methods have been developed already. We have divided them into two groups: methods for flattening the surfaces in one piece and methods for per partes surface flattening.The methods of the first group are not suitable for automatically flattening of arbitrary surfaces, since overlaps are eliminated from the generated pattern only if the surface is developable. The exceptions are some new methods that were developed for faster rendering of surfaces modelled with irregular trianglemeshes and for non distorted texture mapping. Gu presents an interesting method to convert irregular triangular meshes into completely regular structure, called geometry images. The name is not given by accident since the surface geometry is presented by an image where standard compressing algorithms can be used. Zigelman’s method uses a set of mathematical techniques called multi-dimensional scaling, to flatten the surface into plane where the texture is mapped. Both methods eliminate overlaps from the flat pattern, but the geodesic distances between points are not preserved. This is important if we want to use a generated pattern for composing 3D objects. To eliminate overlaps and preserve geodesic distances, methods of the second group are more appropriate.

9 NIKE PROJECT

Marketing SegmentationMarket segmentation is an essential part in today's business world. It is because not all customers have the same requirement and a market strategy which does not recognize this fact will result business failure. Market segmentation is the process of splitting customers, or potential customers within a market into different groups, or segments, within which customers have the same or similar requirements satisfied by a distinct marketing mix. Nike has been successful in market segmentation for selling their soccer boots, which resulted in a

10 NIKE PROJECT

significant market share in that particular product category in recent years... ...Professional soccer players include all the players playing football as their career. This segment is ranging from the players in the top of the world to those who are hardly recognized by people. Their needs for soccer boots is high, most probably the highest in the market. They need soccer boots which can enhance their performance: comfortable when running on the field and playing football and provide them with good ball control. Price is not a major factor for them when choosing a pair of soccer boots, because they are either having a high salary or they are sponsored by their clubs or even the manufacturers of soccer boots. What they need is a pair of high quality soccer boots which is a combination of well design and good materials... ...The price of the boots showed that Nike's major target customer groups are those on a high income level, or those who are willing to spend on expensive items. So the ranking of the professional and amateur soccer players are high on the KCV table. The need of a pair of good quality soccer boots in the two groups is high and price is not their major considerations. Young people is also a main target customer group for Nike because the brand has been developed into a famous one and it is well-known for it high price and style. Nike's footwear is said to be an expensive goods today. Consumers like the young people, who emphasis much on brand and identity is more likely to choose Nike.

THE SUMMARY OF 4 Ps 1. Product

Nike offers a wide range of shoe, apparel and equipment products, all of which are currently its top-selling product categories. Nike started selling sports apparel, athletic bags and accessory items in 1979. Their brand Cole Haan carries a line of dress and casual footwear and accessories for men, women and children.

They also market head gear under the brand name Sports Specialties, through Nike Team Sports, Inc. They sell small amounts of plastic products to other manufacturers through Nike IHM, Inc. Bauer Nike Hockey Inc. manufactures and distributes ice skates, skate blades, in-roller skates, protective gear, hockey sticks and hockey jerseys and accessories.

2. Price

11 NIKE PROJECT

Nike’s pricing is designed to be competitive to the other fashion shoe retailers. The pricing is based on the basis of premium segment as target customers. Nike as a brand commands high premiums. Nike’s pricing strategy makes use of vertical integration in pricing wherein they own participants at differing channel levels or take part in more than one channel level operations. This can control costs and influence product pricing.

3. Place

Nike shoes are carried by multi-brand stores and the exclusive Nike stores across the globe. Nike sells its product to about 20,000 retail accounts in the U.S. and in almost 200 countries around the world. In the international markets, Nike sells its products through independent distributors, licensees and subsidiaries. Independent distributors need not adapt to local pressures because the 4Ps of marketing are managed by distributors.

4. Promotion

Promotion is largely dependent on finding accessible store locations. It also avails of targeted advertising in the newspaper and creating strategic alliances. Nike has a number of famous athletes that serve as brand ambassadors such as the Brazilian Soccer Team (especially Ronaldino, Renaldo, and Roberto Carlos), Lebron James and Jermane O’Neal for basketball, Lance Armstrong for cycling, and Tiger Woods for Golf.

Nike also sponsors events such as Hoop It Up and The Golden West Invitational. Nike’s brand images, the Nike name and the trademark swoosh, make it one of the most recognizable brands in the world. Nike’s brand power is one reason for its high revenues. Nike’s quality products, loyal customer base and its great marketing techniques all contribute to make the shoe empire a huge success.

Product StrategyProduct Strategy is perhaps the most important function of a company. It must take in account the capabilities in terms of engineering, of production, of distribution (sales) existing in the company or of time to acquire them (by hiring or by mergers). It must evaluate the customers expectations at the time of delivery. It must guestimate the competition (including new entrants) probable moves to enter the same market.

12 NIKE PROJECT

Product strategy by Bull appeared sometimes erratic and not coordinated, specially during the periods where product lines run independently. However, it has been dominated by very old trends rooted in the Sales Network during the 1950s defining Bull's market around the business applications, and fighting against the sole IBM as competitor.

So, the company adopted its version of IBM's business model, following IBM with a variable delay, in the domain of products, price and market following. Sometimes new opportunities appeared and some innovative products were developed, (e.g. time-sharing in GE time, smart card applications) but they faded as marginalized by the Sales Network. In fact, the Sales Network was not conscious of the pressure it exerted on Planning and Engineering. Often, it focalized on IBM's short term moves, ignoring the reasons for those moves (sometimes due to legal constraints, sometimes by internal fighting inside IBM, other times because other competitors moves). While IBM's influence on Bull was extremely important, the reverse existed sometimes (1). Dispute between IBM World Trade and IBM US domestic may have been fueled by some worry of IBM European salesmen about some Bull's (and GE's or Honeywell's) products.

The capability of Bull to match IBM's offer on the market never existed. Before the GE's merger, Bull did not address the US market directly and by consequence excluded itself from the market segments needing the quantities only addressed by a worldwide market (such as large scientific computers). Another market that was ignored (knowledgeably) early was the small scientific market; its margins did not matched the corporate model.

Bull never did a comparable investment to IBM's in the technology area. Each time it (or its American associates) tries a significant move, the success did not reward it. The reasons of the failure were multiple: overestimation of the return on investment, lack of a long term perspective (that existed in architecture and software), size of market. Some more specific problems were due to the lack of experience in fundamental physics, themselves related to the isolation of the engineers.

For historical reasons related to the acquisition of a park of customers and for "political" reasons, Bull did not succeed to shut down a product line before the 1990s. Its resource limitations did not allow to embark in the simultaneous developments of more than one or a couple of compatible processors at the same time. Product Planning had to prepare several product line plans and to invent models within each product line to match the competition prices and performances. Models

13 NIKE PROJECT

were developed from a single engineering design with the same manufacturing cost by slowing down the processor clock or adding dummy cycles and/or by reducing the "connectivity" of the system.When the performances exceeded IBM's target, the system was not sold at full speed to avoid the risk of undercutting IBM future announcements' price and keeping some reserve power to react against a competition "mid-life kicker".New higher models were also created by unleashing the design constraints after one year. New lower models were created by slowing down a bit already shipped processors.

This strategy worked well as far as the manufacturer controlled completely the customer configuration by leasing the systems. The first evolution of the model was the advent of clones manufacturers. They obviously attacked IBM's market but GE, Honeywell and Bull strategists ordered to take all measures, sometimes detrimental to product and service costs, to escape cloners. The architecture or the assembler of the machines remained confidential, source and object code of programs was secrete, network architecture was not available even to peripheral suppliers, peripheral interfaces were modified and the differences kept in vaults... Bull argued to the persons objecting the strategy (suppliers, other manufacturers, customers ) that it would respect the "de jure" standards (such as ISO's or ANSI's) but that it did not have to follow the "de facto" standards (such as IBM's). That changed in the 1980s when "Open Systems" became Bull's religion.

Another IBM decision impacted the business model, it was unbundling. While the IBM pricing was more or less related to development and manufacturing costs, adopting the same price for Bull's items where software, for instance, was reproduced in far smaller number of copies, lead to a disconnect between decisions to produce and customers acceptation. Specially in the late 1970s and the 1980s, Bull embarked in many developments with a very low production rate, but they were asked to match the IBM's catalog. Later, in the late 1980s, the competition with open systems, lead to some re-bundling of the offer (the word was "packaging") where for instance associate a purchased data base system with a memory bank and even an additional processor.

Pricing StrategyThe key reasons for the success of Nike are associated with its global brand promotion. Due to its extensive advertising campaigns the Nike’s brand is known in almost every household worldwide.

14 NIKE PROJECT

Considering the major revenue increase over the last decade, the company has proved its popularity and high demand for its products among people. Nike’s brand management strategy as a key of its global success is based on the sponsorship agreements with the world-class athletes, including individual performers and sport clubs. Mainly all kinds of sportswear equipment are branded with Nike’s logo which reminds people of success and associates it with the achievements of star performers. In such a way, Nike not only expands its corporate image worldwide, but also enhances the healthy lifestyle and devotion to sport activities.

Unfortunately, despite million-dollar promotional and advertising campaigns, the original Nike’s products remain unavailable to most people worldwide. The price for individual items is rather high and so the overwhelming majority of purchasers buy franchise copies holding Nike’s logo. However, this is one of the justified and reasonable business strategies applied under the conditions of globalization.

In the recent years, Nike was reported to apply unfair working practices, involving child labour, insufficient working conditions, under-standard wages etc. In addition to this, the company was subject to legal claims for unfair public campaigns associate with the advertisement of corporate brand. Therefore, Nike’s further business success necessitates changes and reconsideration of its business strategies. To this end, recently Nike has ceased its irrelevant practices and tries to lead socially and environmentally responsible business operations.

It also comes as no surprise that the company constantly challenges anti-globalization claims. To this end the company should emphasise on transparent practices, considering human rights and social concerns. In this respect, the company should regain the image of more socially-oriented player on a global scale. Therefore, Nike’s management is fully aware that large corporate revenues gained from multinational operations should be combined with socially-oriented projects aimed at recycling and environmental campaigns.

Opportunities Facing Nike In The Future

In the foreseeable future, Nike’s facing great opportunities backed up with the company’s 2008 financial success. The company will continue to implement its corporate projects and programmes to suit the demand and social needs of its worldwide customers. Though, the main emphasis will be put on promotions and so new sponsorship agreements will be concluded with the rising stars.

15 NIKE PROJECT

Possible Challenges Facing Nike In The Future

It is rather difficult to predict corporate challenges to be faced by the company considering the overall adverse affects of global financial crisis. Most likely, as many other multinational businesses, Nike will close its subsidiary offices in a number of countries and/or shorten manufacturing rates in Asia.

Overall, it is apparent that Nike has a solid potential background to hold strong competitive stance in the foreseeable future. Hopefully, in terms of further business orientation strategy, the company will become more socially responsible in the eyes of average consumers, and so the availability of its brand products will further increase.

PlaceNiketown at Oxford Street, London

Nike sells its product to more than 25,000 retailers in the U.S. (including Nike's own outlets and "Niketown" stores) and in approximately 160 countries in the world. The company also has a program called Nikkei at nikeid.com, which allows customers to customize designs of some styles of Nike shoes and deliver them directly from manufacturer to the consumer. Nike sells its products in international markets through independent distributors, licensees, and subsidiaries.

SponsorshipMain article: Nike sponsorships

Nike has signed top athletes in many different professional sports to endorsement deals in order to further promote their products.

Nike's first professional athlete endorser was Romanian tennis player Ilie Năstase, and the company's first track endorser was distance running legend Steve Prefontaine. Prefontaine was the prized pupil of the company's co-founder Bill Bowerman while he coached at the University of Oregon. Today, the Steve Prefontaine Building is named in his honor at Nike's corporate headquarters.

Besides Prefontaine, Nike has sponsored many other successful track & field athletes over the years such as Carl Lewis, Jackie Joyner-Kersee

16 NIKE PROJECT

and Sebastian Coe. However, it was the signing of basketball player Michael Jordan in 1984, with his subsequent promotion of Nike over the course of his storied career with Spike Lee as Mars Blackmon, that proved to be one of the biggest boosts to Nike's publicity and sales.

During the past 20 years especially, Nike has been one of the major clothing/footwear sponsors for leading tennis players. Some of the more successful tennis players currently or formerly sponsored by Nike include: James Blake, Jim Courier, Roger Federer, Lleyton Hewitt, Juan Martín del Potro, Andre Agassi, Rafael Nadal, Pete Sampras, Marion Bartoli, , Mary Pierce, Maria Sharapova, Serena Williams.

Nike is also the official kit sponsor for the Indian cricket team for 5 years, from 2006 to 2010. Nike was awarded the contract for US$43 Million.

Nike also sponsors some of the leading clubs in world football, such as Arsenal, Manchester United, FC Barcelona, Inter Milan, Juventus, Porto, Steaua, Borussia Dortmund, Red Star, Aston Villa, Celtic and PSV Eindhoven.

Nike sponsors several of the world's top golf players, including Tiger Woods, Trevor Immelman and Paul Casey.

Nike also sponsors various minor events including Hoop It Up (high school basketball) and The Golden West Invitational (high school track and field). Nike uses web sites as a promotional tool to cover these events. Nike also has several websites for individual sports, including nikebasketball.com, nikefootball.com, and nikerunning.com.

Promotional strategy

Advertisement

We Are What We Wear

In the late 20th century American, the cultural capital of corporations has replaced many human forms of capital. As we buy, wear, and eat logos, we become the henchmen and admen of the corporations, defining ourselves with respect to the social standing of the various corporations. Some would say that this is the new form of tribalism, that in sport corporate logos we ritualize and humanize them, we redefine the cultural capital of the corporations in human social terms.

17 NIKE PROJECT

I would say that a state where culture is indistinguishable from logo and where the practice of culture risks infringement of private property is a state that values the corporate over the human.

Have we come to this? In light of the rash of killings over Nike shoes in 1991 and the continued market dominance of the brand, clearly Nike exerts a significant social and psychological force on the American consumer. It is my assertion that Nike appeals to a buying public that treats fitness as a worthy individual goal which simultaneously imparts social identification. The question remains, how? Nike ads, when first released were "treated like new plays or books" (Katz, 1994:153). Through semiotic analysis of a number of Nike advertisements, I hope to uncover at least the clues to Nike's pull on public imagination. (The Media and

Communications Site concerning semiotic analysis informs this discussion and stands as a great study aid and interesting read)

Unlocking Nike's Ads

I plan to work with a small number of Nike ads that speak to the entire genre, though a thorough analysis would include the Air Jordan series, the women-oriented "Empathy"campaign, and All Conditions Gear ads to name a few. I hope to incorporate a wider variety of Nike advertisements at a later date.

Nike's ads, like any other business's, require interpretation. Some of this reading goes on at the conscious level, some unconsciously. As opposed to extremists on either side of the interpretative question, I fall most nearly to the constructivist point of view in that I view meaning as an interplay between text and the reader. Chandler writes, "Texts are full of indeterminacies which require the reader's active interpretation. We must draw not only on our knowledge of language, but on our knowledge of the world." Thus, readers of advertisements bring with them a surface knowledge of the language as well as a set of preconceived ideas about how to relate the ad to themselves. These mental templates are known as schemata. Examples of these may include ideas of the rebel, corporate businessman, or avant-garde

18 NIKE PROJECT

artist as well as Southern Baptist churches, universities, or mechanics' garages.

Ads work on a variety of different levels including, but not limited to, sign typology, paradigmatic meaning, psychological appeals, emotion, roles, values/beliefs, and knowledge. Again, the impact of an ad comes from the interplay between these various aspects of make-up and the reader's own notions about him/herself and the world.

So, taking the "Test Your Faith" ad as our first example: Straight off, the reader finds him/herself thrust into the schema of religious worship. Not only must the viewer literally look up to the runner, but he/she receives the imperative to "Test your faith." The runner pictured appears in the midst of a run and rests easy in the knowledge of his own god-like attention to fitness. Likewise, the runner has no identity beyond his role in the ad. That is, we cannot see his face, giving him an added element of the unknown divine. The reader feels cowed looking from a subordinate position at the figure of the runner in his element. The text implies a direct connection between exercising (in this case, running) and religious questioning. (cp. Nike and the Sanctification of Sport in the History section of this project) The writers seem to suggest an element of transcendence possible in exercise, as well as the need to continually question who we are in relation to our gods and what we hold most sacred. For the runner in the ad, exercise is the object of sanctity.

Yet the reader might inhabit a different role by placing themselves as the runner in the ad itself. Transported from reading a magazine to the middle of a run, filled with the sensual pleasure of using one's body, the reader identifies him/herself as the 'tester of faith.' And finding the purity of exercise within the soul, the reader can accept a measure of hearty self-congratulation.

A slightly dissimilar angle for interpretation would be to imagine the set of causes or drives that propelled the runner in the ad from his home to the streets for a run. Recall Bauman's statement of drive for fit bodies. The measure of the individual in contemporary society rests upon the extent to which they exercise their body. Seeing the runner

19 NIKE PROJECT

engaged in a long run should impel the reader to imagine their own set of values and desires. What would it take to get them on the streets for a run? How important is exercise to that person? The ad places fitness as a top priority and suggests that the reader must acknowledge the fitness culture, even if they do not take an active part.

Finally, the gritty gray and white tones of the advertisement insinuate a harsh world in which running becomes an escape. Reading the ad, perhaps themselves members of such a life, viewers will immediately seek the release and redemption that running and exercise offer.

Moving on to another example of running advertising, we look at "You either ran...": Again placed in the dichotomy between athletes and spectators, the reader need only answer one question. Have I run today? Respondents will fall neatly into two categories and can take with them the requisite set of emotions that come with their answer. Identification and affiliation with others, approval, self-worth, and pride all spring from the answer 'yes.' Meanwhile, shame (first and foremost) and ostracization from the 'in-crowd' leave a bitter taste in the mouths of those answering 'no.'

Marketing analysis

Nike, Inc. is engaged in the design, development and worldwide marketing of footwear, apparel, equipment and accessory products. It sells its products to approximately 18,000 retail accounts in the United States and through a mix of independent distributors, licensees and subsidiaries in nearly 200 countries.

Nikes athletic footwear products are designed for specific athletic use, although some of its products are worn for casual or leisure purposes. The company creates designs for men, women and children. Running, basketball, childrens, cross-training and womens shoes are the Companys top-selling product categories.

Nike also markets shoes designed for outdoor activities, tennis, golf, soccer, baseball, football, bicycling, volleyball, wrestling, cheerleading, aquatic activities, hiking and other athletic and recreational uses. It

20 NIKE PROJECT

sells active sports apparel that covers most of these categories, athletically inspired lifestyle apparel and others.

We present Analysis of Nike Inc. A complete and comprehensive analysis of Nike Inc, the worlds leading computer software company, includes an overview of the sporting goods & equipments industry in the United States, a PEST Framework Analysis of the US Sports Goods & Equipments Industry, and then moves on to analyzing the company itself.

Company analysis includes a history of Nike Inc, a business segment analysis of the segments Nike Inc operates through, a look at the organization structure of the company, a geographical operating segments analysis, an analysis of the company’s major competitors namely Adidas AG and Reebok International Ltd.

A financial analysis of Nike Inc is presented in the report which includes a ratio analysis, basic profit and loss analysis, presentation of the company balance sheet, and much more.

Nike RecruitmentNike Employee Workplace Surveys are detailed accounts of jobs and careers at Nike, including, but not limited to corporate culture, diversity, hours, dress code, and opportunities for advertisement. Nike Salary & Compensation Surveys include information about base salary, signing and year-end bonuses, stock options, vacation time, and other special perks and reimbursements that make up total compensation at Nike.

Nike Business Outlook Surveys provide information about strengths and weaknesses in competition, distribution channels, products and services, employee morale, human resources, etc. that Nike employees consider helpful for jobseekers considering employment at the company.

Nike Interview & Recruiting Surveys are detailed accounts of the recruiting/hiring process and interviews at Nike (how many rounds of

21 NIKE PROJECT

interviews, who conducted the interviews and whether there were any specific interview questions you remember of note).

Experience by a EmployeeAyre joins Nike with more than 20 years of human resource corporate andconsulting experience. He most recently was head of talent and performancerewards for PepsiCo, where he worked since 1990. During his time at PepsiCohe led worldwide and regional human resources positions and lived ininternational markets, including China, for eight years. He currently is aboard member for the WorldatWork and National Business Group on Healthorganizations. At Nike, Ayre will lead human resources strategy globallyfor the Nike brand and Nike, Inc. affiliate brands. The company has morethan 28,000 employees worldwide. "The talent and passion of Nike people worldwide is one of our greatestcompetitive strengths," Parker said. "We're very pleased to have David joinNike. His deep experience leading human resources strategies in global,diverse organizations will be a tremendous benefit as we grow our companyand continue developing and attracting the best talent in the industry." For two years in a row, Nike has been named by Fortune magazine as oneof the "100 Best Companies to Work For." Nike also is recognized as a bestplace to work for gay, lesbian, bisexual and transgender employees by theHuman Rights Campaign Foundation. NIKE, Inc., based near Beaverton, Oregon, is the world's leadingdesigner, marketer and distributor of authentic athletic footwear, apparel,equipment and accessories for a wide variety of sports and fitness

22 NIKE PROJECT

activities. Wholly owned Nike subsidiaries include Converse Inc., whichdesigns, markets and distributes athletic footwear, apparel andaccessories; NIKE Bauer Hockey Inc., a leading designer and distributor ofhockey equipment; Cole Haan, a leading designer and marketer of luxuryshoes, handbags, accessories and coats; Hurley International LLC, whichdesigns, markets and distributes action sports and youth lifestylefootwear, apparel and accessories and Exeter Brands Group LLC, whichdesigns and markets athletic footwear and apparel for the value retailchannel.

Why does Nikes Trains it Employees

Typical Reasons for Employee Training and Development

Training and development can be initiated for a variety of reasons for an employee or group of employees, e.g.,:

When a performance appraisal indicates performance improvement is needed

To "benchmark" the status of improvement so far in a performance improvement effort. As part of an overall professional development program

As part of succession planning to help an employee be eligible for a planned change in role in the organization

To "pilot", or test, the operation of a new performance management system

To train about a specific topic (see below) Typical Topics of Employee Training Communications: The increasing diversity of today's workforce

brings a wide variety of languages and customs. Computer skills: Computer skills are becoming a necessity for

conducting administrative and office tasks. Customer service: Increased competition in today's global

marketplace makes it critical that employees understand and meet the needs of customers.

Diversity: Diversity training usually includes explanation about how people have different perspectives and views, and includes techniques to value diversity

23 NIKE PROJECT

Ethics: Today's society has increasing expectations about corporate social responsibility. Also, today's diverse workforce brings a wide variety of values and morals to the workplace.

Human relations: The increased stresses of today's workplace can include misunderstandings and conflict. Training can people to get along in the workplace.

Quality initiatives: Initiatives such as Total Quality Management, Quality Circles, benchmarking, etc., require basic training about quality concepts, guidelines and standards for quality, etc.

Safety: Safety training is critical where working with heavy equipment , hazardous chemicals, repetitive activities, etc., but can also be useful with practical advice for avoiding assaults, etc.

Sexual harassment: Sexual harassment training usually includes careful description of the organization's policies about sexual harassment, especially about what are inappropriate behaviors.

General Benefits from Employee Training and Development

There are numerous sources of online information about training and development. Several of these sites (they're listed later on in this library) suggest reasons for supervisors to conduct training among employees. These reasons include:

Increased job satisfaction and morale among employees Increased employee motivation Increased efficiencies in processes, resulting in financial gain Increased capacity to adopt new technologies and methods Increased innovation in strategies and products Reduced employee turnover Enhanced company image, e.g., conducting ethics training (not a

good reason for ethics training!) Risk management, e.g., training about sexual harassment,

diversity training

NIKE GOLF REORGANIZING, JOINING IN COMPANY-WIDE DOWNSIZING

24 NIKE PROJECT

Even though Nike Golf "had clearly been one of the company's top performers" recently, it was ordered to downsize operations in the same manner as other divisions,"even those that hadn't performed as well," according to Gene Yasuda of GOLFWEEK. Yasuda reports, "Bearing that equal, yet unfair, burden of reorganization discouraged" the golf division's former leaders, GM Bob Rief, Marketing Manager Joe Moses and Dir of Marketing Rod Tallman, who have all recently left Nike. Now, in a "reshaped corporate landscape," Nike Golf is "emerging as a different entity," one that will operate "almost as a subsidiary" and report to new Nike VP/Global Brand Management Andy Mooney. Mooney has decided to spin off Nike Golf "to let it pursue new products more rapidly and aggressively." Nike Golf plans to introduce a golf ball line soon and Mooney said it is "in the midst of creating a feasibility committee to explore the possibility of selling clubs" (GOLFWEEK, 7/11 issue) CHIP SHOTS: IMG will present its first-ever National Golf Consumer Show, March 25-26, 1999 at Cleveland's Int'l Exposition Center. Designed to showcase the latest golf products and services to the public, IMG plans to expand the inaugural Expo into a National Show Series in several major metro areas (IMG)....Mark Brooks' contract with Callaway,which he severed two weeks ago, was worth $500,000 a year.Brooks has gone back to using Hogan clubs, but is not yet under contract with the company. Hogan Dir of Market Development & Player Relations Joe Henley said, "Discussions on the business side of the relationship will most likely take place" (GOLFWEEK, 7/11)....GOLFWEEK's "Forecaddie" reported that after Se Ri Pak's win at the U.S. Women's Open, "word" was Samsung, which already pays her $1M per year, was considering "sweetening" her deal. Also, a dealfor Pak, who does not currently have a club contract, to play Callaway clubs "likely is in the offing" (GOLFWEEK,7/11)....Dottie Pepper hired TN-based Alday Communications to handle her PR and marketing (ADWEEK, 7/13)....With the CVS Pleasant Valley Classic ending after this year's events,and Friendly's announcement yesterday that it will not renew its sponsorship of the Friendly's LPGA Classic, the state of MA has been "effectively frozen out" of the LPGA and PGA Tours. However, in Boston, Shira Springer reports that arrangements for a new LPGA stop in the state will "likely" be made "in the coming weeks"

OUTSOURCINGNike, that global icon of sportswear, is a powerful lesson to organisations considering outsourcing their IT, says visiting outsourcing expert and lawyer Dr Trevor Nagel.

25 NIKE PROJECT

Nike never outsourced its strategic thinking, he says. Instead, the company identified its core competencies and outsourced accordingly, says Nagel, a partner and head of the Global Technology Practice Group, at Washington DC law firm Shaw Pittman."Nike basically is a trademark and a distribution network," Nagel says."Companies that are in the manufacturing and distribution world are moving very much towards the Nike model. Nike is way out there in terms of someone who has taken this to its ultimate potential but you can see a lot of the electronic manufacturers moving towards that," he says.Major banks are another example of organisations that outsource much of the mundane work of delivering the day-to-day necessities to customers while they concentrate on developing new financial products, he says.Many organisations' outsourcing headaches are due to farming out too little rather than too much, he says. Outsourcing vendors can easily deny responsibility when things go wrong if you only hand them segments of your business processes."If you don't give the vendor the degrees of freedom to tailor a solution, you're going to limit what they can do extensively and also you're going to have difficulty in getting them accountable," Nagel says.He says vendors will just shift the blame back on to the customer, which will lead to "finger pointing and then a death spiral".Australian-born and Harvard qualified, Nagel is vice-chairman of the International Bar Association Committee on Technology and e-Commerce. He was a pioneer of IT outsourcing law in the early 1990s and has advised on global outsourcing and strategic alliance arrangements for McDonald's, Cable & Wireless, MCI and Pepsi.Nagel was at Melbourne's La Trobe University last week to teach a unit in the La Trobe Law Global Business Law program covering how to structure, implement and then govern an outsourcing arrangement.A lesson many of Nagel's clients have learned from outsourcing is the value of consolidating outsourcing agreements."Not only were those clients not an expert in technology - such that it made more sense to have their requirements met by a big vendor - but they learnt they're not very good integrators either," he says.Nagel also warns clients that saving money or acquiring better technology are not in themselves good enough reasons to outsource."Generally when you're outsourcing the wisest thing you can do is look for a solution rather than look for a specific technology," he says."During the life of the agreement you'd expect, with the speed that technology is changing, that the technologies that deliver your requirements and the services you want will, in fact, change in many areas."

Motivation Theories used by Nike

26 NIKE PROJECT

1.Team WorkSkillful managers form work groups when possible with the hope that peer pressure will induce high levels of performance. This is reported to be an effective means of motivation because individuals appear to be more concerned with living up to the expectations of fellow workers rather than the expectations of their bosses. Complexities arise when a group conforms to a level of achievement rather than a high performance level, or when a particular work setting makes it difficult to structure group activities.

2. Personal involvement

Workers who are allowed to set their own performance levels will usually try to meet their own expectations. It is important to have the worker make a verbal commitment regarding their anticipated achievement levels. Also, individuals and groups are most likely to attain goals when they make a public commitment to do so. This may be due to the fact that such commitments are promises and most people view themselves as persons who keep their word.

The chief problem with this strategy results from workers who maintain a low self-image. At this point, managers are faced with the problem of motivating a worker to think positively about himself so his self-image will correlate with high performance. On the whole, this strategy is effective, but it might demand a manager to reinforce an employee's strengths first.

3. work Enhancement

With this method, managers structure jobs so the work provides fulfillment. The experiment in job enrichment underway at the Saab-Volvo automobile plant in Sweden illustrates rather nicely how job enrichment works. They use a team-assembly concept in which workers rotate the tasks required for building an automobile. Basically, the entire group is responsible for assembling the complete automobile. This is in contrast to the monotonous production system which now characterizes auto manufacturing in the United States.

One of the difficulties with this type of motivational strategy is that workers want to be compensated adequately for the work they do. When employees are expected to perform more complicated job skills, they expect increased compensation. When this does not happen, the work may no longer offer an internal incentive.

4. Rewards

27 NIKE PROJECT

This type of planning is based on the behavior modification approach that workers will increase or repeat the desired work performance if they are given rewards. It is also hoped that poor performance will be eradicated once the subordinate comprehends the relationship between commendable performance and rewards.

Generally, the reward approach is successful but it is not without its complications. Individuals are unique and maintain different value systems. What may be considered rewarding to one worker may be no incentive whatsoever to the next employee. Some people prefer pay increases. Others seek promotions. Still others may desire new rugs on their office floors. Establishing meaningful incentives for performance with individuals can be a difficult task for a manager.

5. Mutual Exchange

Sometimes, managers promise special privileges for the exchange of desired work performance. A supervisor may allow a worker to leave work early if he completes his task for the day, or he may be allowed a day away from the job if he finishes a required project within a specified time.

Mutual exchange is a frequently used strategy, but not necessarily the most effective. Problems arise when the employee feels the exchange is out of balance, or when he cannot come to an agreement with his supervisor as to what would be a fair exchange.

6. competitive measures

In this design, workers compete against others for certain bonuses or prizes. Banners, plaques, vacations, and free dinners are examples of some rewards offered. This strategy is often used for sales incentives.

Difficulties emerge when managers design contests that do not offer a fair opportunity to achieve the specified goals. If the same individuals and groups consistently win the prizes due to the contest design, interest in competing is likely to grow lukewarm for many of the workers. Also, competition does not promote a cooperative strategy and work performance can actually be sabotaged due to the hostility that competition can trigger.

7. Punishment And Fear

Although frequently used, the least effective method of motivating a worker is with a negative consequence, such as a verbal dressing-down, suspension, or the loss of the job. Punishment may achieve

28 NIKE PROJECT

immediate results, but it does not accomplish internal motivation for several reasons. First, adults are not inclined to remain in employment where they are threatened and intimidated. Second, workers who are backed by a strong union may dissolve the threat with a higher level of authority. Third, scares and intimidation can create animosity toward a superior and employees may respond with hostility and subversion. Another problem with the fear strategy is that it creates a punitive climate in which individuals are afraid of being different from or of offending others. This particular situation has a tendency to diminish creativity and lead to intellectual stagnation.

Human rights concerns

Nike has been criticized for contracting with factories in countries such as China, Vietnam, Indonesia and Mexico. Vietnam Labour Watch, an activist group, has documented that factories contracted by Nike have violated minimum wage and overtime laws in Vietnam as late as 1996, although Nike claims that this practice has been halted.The company has been subject to much critical coverage of the often poor working conditions and exploitation of cheap overseas labor employed in the free trade zones where their goods are typically manufactured. Sources of this criticism include Naomi Klein's book No Logo and Michael Moore's documentaries.

Nike has been criticized about ads which referred to empowering women in the U.S. while engaging in practices in East Asian factories which some felt disempowered women. During the 1990s, Nike faced criticism for use of child labor in Cambodia and Pakistan in factories it contracted to manufacture soccer balls. Although Nike took action to curb or at least reduce the practice of child labor, they continue to contract their production to companies that operate in areas where inadequate regulation and monitoring make it hard to ensure that child labor is not being used.

These campaigns have been taken up by many colleges and universities, especially anti-globalization groups as well as several anti-sweatshop groups such as the United Students Against Sweatshops Despite these campaigns, however, Nike's annual revenues have increased from $6.4 billion in 1996 to nearly $17 billion in 2007, according to the company's annual reports.

29 NIKE PROJECT

A July 2008 investigation by Australian Channel 7 News found a large number of cases involving forced labour in one of the biggest Nike apparel factories. The factory located in Malaysia was filmed by an undercover crew who found instances of squalid living conditions and forced labour. Nike have since stated that they will take corrective action to ensure the continued abuse does not occur.

Following Liu Xiang's withdrawal from the 2008 Olympics, Nike admitted seeking help from "relevant government departments" in the Chinese government to track down and identify an anonymous Internet poster.

Environmental record

The consistently growing textile industry often negatively impacts the environment. Because Nike is a large participant in this manufacturing, many of their processes negatively contribute to the environment. One way the expanding textile industry affects the environment is by increasing its water deficit, climate change, pollution, and fossil fuel and raw material consumption. In addition to this, today's electronic textile plants spend significant amounts of energy, while also producing a throw-away mindset due to trends founded upon fast fashion and cheap clothing. Although these combined effects can negatively alter the environment, Nike tries to counteract their influence with different projects. According to a New England-based environmental organisation Clean Air-Cool Planet, Nike ranks among the top 3 companies (out of 56) on a survey conducted about climate-friendly companies.Nike has also been praised for its Nike Grind programme (which closes the product lifecycle) by groups like Climate Counts.In addition to this, one campaign that Nike began for Earth Day 2008 was a commercial that featured Steve Nash wearing Nike's Trash Talk Shoe, a shoe that had been constructed in February 2008 from pieces of leather and synthetic leather waste that derived from the factory floor. The Trash Talk Shoe also featured a sole composed of ground-up rubber from a shoe recycling program. Nike claims this is the first performance basketball shoe that has been created from manufacturing waste, but it only produced 5,000 pairs for sale.Another project Nike has begun is called Nike's Reuse-A-Shoe program. This program, started in 1993, is Nike's longest-running program that benefits both the environment and the community by collecting old athletic shoes of any type in order to process and recycle them. The material that is created from the recycled shoes is then used to help

30 NIKE PROJECT

create sports surfaces, such as basketball courts, running tracks, and playgrounds

Marketing strategy

Nike's marketing strategy is an important component of the company's success. Nike is positioned as a premium-brand, selling well-designed and expensive products. Nike lures customers with a marketing strategy centering around a brand image which is attained by distinctive logo and the advertising slogan: "Just do it".Nike promotes its products by sponsorship agreements with celebrity athletes, professional teams and college athletic teams. However, Nike's marketing mix contains many elements besides promotion. These are summarised below.

Gantt chart

A Gantt chart is a type of bar chart that illustrates a project schedule. Gantt charts illustrate the start and finish dates of the terminal elements and summary elements of a project. Terminal elements and summary elements comprise the work breakdown structure of the project. Some Gantt charts also show the dependency (i.e, precedence network) relationships between activities. Gantt charts can be used to show current schedule status using percent-complete shadings and a vertical "TODAY" line as shown here.

In the 1980s, personal computers eased the creation and editing of elaborate Gantt charts. These desktop applications were intended mainly for project managers and project schedulers. In the late 1990s and early 2000s, Gantt charts became a common feature of web-based applications, including collaborative groupware. Although now

31 NIKE PROJECT

regarded as a common charting technique, Gantt charts were considered revolutionary when they were introduced. In recognition of Henry Gantt's contributions, the Henry Laurence Gantt Medal is awarded for distinguished achievement in management and in community service. This chart is used also in Information Technology to represent data that has been collected.

32 NIKE PROJECT

SWOT ANALYSIS

Strengths.

Nike is a very competitive organization. Phil Knight (Founder and CEO) is often quoted as saying that 'Business is war without bullets.' Nike has a healthy dislike of is competitors. At the Atlanta Olympics, Reebok went to the expense of sponsoring the games. Nike did not. However Nike sponsored the top athletes and gained valuable coverage.

Nike has no factories. It does not tie up cash in buildings and manufacturing workers. This makes a very lean organization. Nike is strong at research and development, as is evidenced by its evolving and innovative product range. They then manufacture wherever they can produce high quality product at the lowest possible price. If prices rise, and products can be made more cheaply elsewhere (to the same or better specification), Nike will move production.

Nike is a global brand. It is the number one sports brand in the World. Its famous 'Swoosh' is instantly recognisable, and Phil Knight even has it tattooed on his ankle.

Weaknesses.

The organization does have a diversified range of sports products. However, the income of the business is still heavily dependent upon its share of the footwear market. This may leave it vulnerable if for any reason its market share erodes.

The retail sector is very price sensitive. Nike does have its own retailer in Nike Town. However, most of its income is derived from selling into retailers. Retailers tend to offer a very similar experience to the consumer. Can you tell one sports retailer from another? So margins tend to get squeezed as retailers try to pass some of the low price competition pressure onto Nike.

Opportunities.

Product development offers Nike many opportunities. The brand is fiercely defended by its owners whom truly believe that Nike is not a fashion brand. However, like it or not, consumers that wear Nike product do not always buy it to participate in sport. Some would argue that in youth culture especially, Nike is a fashion brand. This creates its own opportunities, since product could

33 NIKE PROJECT

become unfashionable before it wears out i.e. consumers need to replace shoes.

There is also the opportunity to develop products such as sport wear, sunglasses and jewellery. Such high value items do tend to have associated with them, high profits.

The business could also be developed internationally, building upon its strong global brand recognition. There are many markets that have the disposable income to spend on high value sports goods. For example, emerging markets such as China and India have a new richer generation of consumers. There are also global marketing events that can be utilised to support the brand such as the World Cup (soccer) and The Olympics.

Threats.

Nike is exposed to the international nature of trade. It buys and sells in different currencies and so costs and margins are not stable over long periods of time. Such an exposure could mean that Nike may be manufacturing and/or selling at a loss. This is an issue that faces all global brands.

The market for sports shoes and garments is very competitive. The model developed by Phil Knight in his Stamford Business School days (high value branded product manufactured at a low cost) is now commonly used and to an extent is no longer a basis for sustainable competitive advantage. Competitors are developing alternative brands to take away Nike's market share.

As discussed above in weaknesses, the retail sector is becoming price competitive. This ultimately means that consumers are shopping around for a better deal. So if one store charges a price for a pair of sports shoes, the consumer could go to the store along the street to compare prices for the exactly the same item, and buy the cheaper of the two. Such consumer price sensitivity is a potential external threat to Nike.

NIKE RESPONSIBILITY: SUSTAINABLE MATERIALS

Sustainable MaterialsWhat We UseAs part of the production of our products, we face a number of challenges, ranging from use of materials to handling waste. For each, we have developed and applied an appropriate approach and continue to seek ways to limit use of materials and handle them safely and, where possible, eliminate their use throughout production.

34 NIKE PROJECT

Sustainable materialsExpanding our use of environmentally preferred materials as new technologies become commercially viable will allow us to integrate these materials into our products. These materials have added environmental benefits that do not compromise the aesthetic, quality and performance that our consumers expect from Nike products. This allows us to leverage our purchase volumes with our suppliers, making environmentally preferred material options more cost effective. It also encourages our suppliers to develop more sustainable materials since they know there will be a market.

Recycled polyesterRecycled polyester is a fiber derived from reprocessed, post-industrial and/or post-consumer polyester waste materials such as plastic bottles, consumer textile products, uniforms and textile scraps. We have begun using recycled polyester in many of products in our All Conditions Gear outdoor line as well as various active apparel items.

LeatherNike is the one of the world’s largest users of white leather. Waste from cutting leather constitutes one of our largest footwear solid waste streams. Recognizing our impact in the athletic footwear industry, we collaborated with tanners and other footwear brands and retailers to found the Leather Working Group (LWG) in 2006. The LWG developed a protocol to assess the environmental compliance and stewardship practices of leather tanneries, and to promote best practices in the industry. By assessing tanners against this protocol, we will be able to identify those that meet our threshold for environmentally preferred leather suppliers. The protocol was peer reviewed in 2006 and will be launched in FY07. The LWG is facilitated by BLC Leather Tech.

Organic cottonNike’s long-term goal for organic cotton is for every cotton-containing apparel product to contain at least 5 percent organic cotton by 2011. We are currently on track to achieve this ambitious goal. Fifty-two percent of our cotton-containing products produced in FY06 contained a minimum of 5 percent organic cotton.

Polyvinyl chloride (PVC)Known as vinyl, PVC has become ubiquitous in the past 50 years, used in everything from packaging to flooring, toys, pipes, medical supplies, cars and sports equipment. Durable and inexpensive to make, PVC was the plastic of choice until recently. Over the last several years, PVC has received considerable attention because of a range of environmental issues related to its manufacturing and disposal.

35 NIKE PROJECT

In the late 1990s, we – controversially at the time – announced our policy to remove PVC from our product lines. Removing PVC has required great cooperation in our supply chain and discipline from our design and production teams. Nike has made real progress in this aim. Virtually all of Nike-branded product is now PVC free. At the end of FY06, a few remaining product types still use PVC with performance, difficulty of use and price being the primary obstacles in the implementation of suitable alternatives. We continue to work our supply chain and with ink suppliers and printers to find and implement attractive and durable alternatives to PVC

NIKE: Nike Shoes and Child Labor in PakistanNike has been accused of using child labor in the production of its soccer balls in Pakistan. This case study will examine the claims and describe the industry and its impact on laborers and their working conditions. While Pakistan has laws against child labor and slavery, the government has taken very little action to combat it. Only a boycott by the United States and other nations will have any impact on slavery and child-based industries. Furthermore the U.S constitution states that child labor is an illegal and inhumane practice and any U.S. company found guilty practicing and encouraging it will be prosecuted.GATT and WTO prohibits member nations, like the United

States, from discriminating against the importation of goods made by children. Are dolphins becoming more important than children? A question making WTO to reconsider the children's appeal of the third world.DescriptionPakistan has a per-capita income of $1,900 per year -meaning that a typical person survives barely on $5 per day. And that's nonot all, Pakistan has a traditional culture where earning of one person goes on feeding 10 mouths; and

with the high rate of inflation it becomes difficult for a low income

36 NIKE PROJECT

population to survive. Child labor is spread all over Pakistan but has the greatest impact in the north-west of punjab province, that is Sialkot. Pakistan has a population of approximately 1 million and is an important centre for the production of goods for export to international markets, particularly sporting goods. In 1994, exports from Sialkot brought income of almost US$ 385 million into the Pakistan economy. Sialkot is thus one of the world’s most important centres for production of sporting goods.

Child labor exists in Sialkot both in the export sector and the domestic sector. This fact has been well documented and reported by the international media for several years but nothing has been done about it. In Pakistan it

is clearly documented that child labor is against the law, but the government carries lack of willingness to do anything about it. Provision for education is very limited, due to the fact that very low priority is given to education in the national budgets. Education receives around 3% of the total gross domestic product when compared to over ten times of this amount spent on military. Gender and other forms of discrmination plus adding to the lack of political will, gives the clear picture of the existence of child labor in Pakistan. Nike as a helper or exploiter to IIIrd World

Recently if you go to a shop to buy your child a new soccer ball. There is a good possibility that the ball has been made by someone your child's age or even younger. About half of the world's soccer ball are made in Pakistan, and each one of them passes through a process of production where child labor is involved. This problem not only pertains to Pakistan but is worldwide. More than 200 children, some as young as 4 and 5 years of age, are involved in the production line. Majority of these children work in Asia, e.g in the nations of India, Pakistan, Bangladesh and Indonesia.

37 NIKE PROJECT

Nike is characterized of making its equipments in countries which are in the developing phase, having very cheap labor, authoritarian government and lack of human rights appeal and union movement. In doing this it has made greater margins on the cost of mere cents to its workers. So Nike success story is not based on good name and advertising alone but also attached to it is the tears of tortured workers and child labor.

A columnist 'Stephen Chapman' from Libertarian newspaper argues that "But why is it unconscionable for a poor country to allow child labor? Pakistan has a per-capita income of $1,900 per year - meaning that the typical person subsists on barely $5 per day. Is it a a revelation - or a crime - that some parents willingly send their children off to work in a factory to survive? Is it cruel for Nike to give them the chance?" (source: http://www.raincity.com/~williamf/words96.html) Stephen argues that the best way to end child-labor is to buy more of the products that children produce. This would increase their demand, and as they will produce more, they will earn more, hence giving themselves chane to rise above poverty level and thus also benefiting the families of the children and as well as the nation.

However, the issue is not that simple. Increasing the demand of the products produced by child labor means encouraging more child labor, encouraging more birth rates, more slavery, increasing sweatshops and discouraging education - as parents of the children working in factories would want them to work more and earn more. If this happened to be the case, then more and more children will be bought and sold on the black market, leading no end to this problem. By encouraging more child labor, you are not only taking away those innocent years from them but also the right to be educated and the right to be free.

Nike - a good chess player As a good chess player Nike always thinks ahead of its movement. It does not launch its production directly in to the developing country, such as Pakistan, but instead it subcontracts it to them by selecting a local firm. When doing this, the local firm, in this case SAGA sports, has to abide by the Nike's international rules and regulations when producing its goods. And it is the duty of the international firm (NIKE) to monitor its subcontracted production units and hold it to tight scrutuny. But this is not what really happens. Both Nike and the local production company aims to minimize cost and earn the highest amounts of profit thus involving themselves in illegal practices, such as child labor, a practice which is not so highlighted by the government

38 NIKE PROJECT

of the host developing country. So what happens when you question Nike about its labor practices? An answer comes that it is not they who are involved in this illegal labor practices but it is the local subcontracter who is doing so. This is wrong to say as Nike and SAGA sports both benefits with access to cheap child labor in Pakistan. And if Nike cannot control its subcontracted plants, it means they have not implemented their rules and regulations effectively and is not abiding by the international standards which they have set for themselves.

Nike's entrance in to the Pakistani markets was the part of its long term strategic planning. It is false to explain that Nike didn't knew that child labor is an ages-old practice in Pakistan. Nike went into Pakistan, having full knowledge of the favorable conditions prevailing in terms of child labor and has taken no precautions whatsoever to prevent the use of child labor in the production of its soccer balls. Instead Nike has made a profit from its Pakistani contractors who inturn has used bonded child labor in the production process. Critically analyzing the situation, "Why Nike always land up in places having cheap or bonded labors or in places where it can easily get away with illegal labor practices?" Examples incude: Vietnam, China, Indonesia, Pakistan, Bangladesh and India. Nike simply bases its operations on finding the lowest-cost labor to make its products.Twelve-year-old girls work in Indonesian sweatshops 70 hours a week making Nike shoes in unhealthy plants.

According to a Foulball campaign report, Nike has refused twice to have a check in their Saga-managed center in Pakistan while on the other hand Nike's rival Reebok readily granted access to its Moltex-managed center in Pakistan. Nike has the habit of hiding behind its good public image and its effective means of promotions and advertising. Nike attempts to create a good public image by offering charity, donating equipments and never passing an opportunity to remind the public that it has set up stitching centers in places such as Sialkot, Pakistan.

How it all started - Consumer awareness 1996 When the June, 1996 issue of Life magazine carried an article about child labor in Pakistan, Nike knew that it was in trouble. The article's lead photograph showed 12-year-old Tariq surrounded by the pieces of a Nike soccer ball which he would spend most of a day stitching together for the grand sum of 60 cents. In a matter of weeks, activists all across Canada and the United States were standing in front of Nike outlets, holding up Tariq's photo.

39 NIKE PROJECT

And yet, Nike has not done an especially good job of scrutinizing the subcontractors with which it's working. Nor has it been open about its labor practices in the way public companies should be expected to be. Cameramen have been pushed out of factory floors. Supervisors at a plant in Vietnam apparently beat workers being paid 20 cents an hour and refused to allow them to leave their work posts. Indonesian labor organizers has been put behind bars. And, most troubling, nearly all the soccer balls made in Pakistan have been revealed to be made by young children getting paid just cents a day. Nike chairman Phil Knight also acknowledged that a shipment of soccer balls Nike purchased in Pakistan in the year 1996 was made by a subcontractor using child labor in "horrible conditions." Although 1996 was the first year in which real public attention was focused on Nike's labor practices abroad, it's important to recognize that manufacturing shoes in low-wage countries was, from the start, a crucial part of Phil Knight's plan for his company. In other words, American jobs have not been shipped abroad. On the contrary, Nike has never made shoes in the United States. Its first factories, built in the 1960s, were in Japan, when that country was still a part of the Third World. And since thirty years Nike have migrating from nation to nation, arriving as countries install the necessary mechanisms for orderly business operations and leaving as living standards become too high to make manufacturing profitable.

Nike "not Just do it but Do it right."

This is the first time that Nike has had to face real questions about its labor practices abroad, the first time that it has felt a public-

40 NIKE PROJECT

relations impact. At this point, that impact does not seem at all devastating. While in the short run Americans are generally horrified by the issue of child labor and has expressed concern over the working conditions in foreign factories, Nike should take immediate actions in order to provide remedy to all the activism it faces, otherwise it can prove devastating for the company's image in the long run. The basic truth about Nike is that its only real strength is its good name. Nike rules because of all the good things people associate with the company: sharp ads, Michael Jordan, Tiger Woods, little Penny, and Michael Jordan again. If "beaten workers" and "child labor" get added to that list, then Nike's greatest asset will be lost.

Now the burden is on the company both to do a better job of implementing company-wide global standards of conduct and also to improve its openness to the media. The more you hide, after all, the more people think you have something to hide. Every hand that goes up, hurts Nike in the public eye. And when you're a consumer company, that's the only eye that matters.

Consumers -- "Just don't do it." When a person states that he/she is working for Nike, it gives a very good status symbol. But what if the person is a 9 - year old child? What image will it give you as a consumer when you buy ththose products or brands that employ child labor?

Nike CouponsNike Coupons - Nike Coupon Codes, Nike Promotions, Printable Coupons and Discount CodesThe Nike Coupons page is dedicated to being the complete source for Nike Coupon Codes, Nike Promotions, and Nike Hot Deals. Our coupons and hot deals are updated multiple times every day, helping shoppers like you to get big discounts at hundreds of online and retail stores. Please let us know if a Nike Coupon Codes or Nike Promotion has expired, or if you know any additional Nike coupon codes, promotions, printable coupons, or discount codes. RSS Feed - all deals, promotions and coupons from Nike Nike Coupons Codes, Printable Coupons, Promotions and Hot DealsExtra 20% off Already Reduced Clearance Items - extra 20% offThe Nike Store takes an Extra 20% off Already Reduced Clearance Items when using coupon code OCTCLEAR at checkout. This coupon is stackable with the 20% off orders of $125 or more coupon code 2PTCNC1. 10/28/2008 More Store Events the Peanut - a new way to help your toddler walk - $35

41 NIKE PROJECT

NikeStore.com just introduced the Peanut, advertised as "a new way to help your toddler walk". Available in 4 colors, for both boys and girls, sizes 2c to 10c, for $35! 12/31/2008 More Babies & Kids

Expired Nike Coupon Codes20% off orders of $125 or more Online Coupon - 20% off $125Expired. The Nike Store takes 20% off orders of $125 or more when using coupon code 2PTCNC1 at checkout. Plus, receive free shipping on orders over $175. This is the best dollar-off coupon we have seen from Nike recently, and it may expire anytime! More Sporting Goods Free shipping for all orders of $100 or moreExpired. NikeStore.com offers free shipping for all orders of $100 or more when using coupon code SHIPOCT at checkout. 10/11/2008

Origins of the Fitness CultureWhat does it mean to be fit? How healthy are you? In what ways does a hard, athletic body appeal to you? How many hours a week do you spend working out? What's your cholesterol level? Your resting pulse? Your VO2 max?Questions like these bombard the contemporary athletic consumer. Visions of lean, golden-tanned bodies sweating in exercise accost us from all media. Yet, these dreams (or nightmares) of idyllic exercise have only recently held popular sway. As late as the 1950s, American consumers rested easy in their self-conceptions of health. But even by that time, the subtle messages that make up popular notions of health began to undergo transformation. Howell (1991) cites the post-WW2 years as the time during which the massive growth of state apparatus came to define precisely the term "quality of life." The concept of leisure came to represent, writes Gruneau (1984), the happiness and success of postwar social democracy. In turn, leisure became a sign of broader political and cultural advances in American life.

Ingham, Katz, and Cole all place the germ of the fitness culture within the late 1970s and early 1980s. Writing in perhaps the seminal work of fitness anthropology, Ingham (1985) frames the preoccupation with the body in terms of a contradiction between the welfare state and consumer culture. As the American state assumed more and more responsibility for its poor, many citizens viewed welfare as morally repugnant. Conservatives saw the admission of moral weakness in

42 NIKE PROJECT

placing a demand on the state to take care of one's body. In contrast, liberals thought the poor stigmatized for not being able to perform the role of "body-consumer." That is, the individual who purchases goods and services based upon their exercise efficacy. Without delving into a discussion of the morality of the welfare state, it should be noted that both points of view deal exclusively with the body. Ingham cites Bauman:The care of the body is the crucial time and money-consuming activity of the denizens of consumer society. The body is charged with the responsibility for success and failure in earthly endeavors, and the urge 'to do something about my life' is most eagerly translated into a precept 'to do something about my body.'"As the First Running Boom took off in the late 70s, the idea of exercise and game-playing ceased being something Americans did for fun. Instead, "one ran for long life, health, or for a toned body suitable to the imminent halter-topped, and stretch-panted aesthetic" (Katz, 1994:65-66). Working on the body became a means of taking control of and displaying one's self. It gave the individual an iconographic representation of who they were in relation to everyone else.

Success of Nike Brand

The Success of the Nike Brand, a HistoryBy Clay Parker Jones | December 18, 2006Reader beware: I’ve been a fan of Nike for my entire life. Dang you, brand loyalty, and the fog that you put me in. Below are two photos of my most recent loves, my Air Force Ones. I’ll get to these later. This is an enormous post. Apologies.Birth and AcceptanceSo in 1972 Nike was born, as I understand it, out of Phil Knight and Coach Bill Bowerman’s desire to make good athletic shoes. Bowerman was a bit of a nut about running and running shoes, according to runners’ mythology, and his principle innovation was the lightweight running shoe with the now-famous waffle outsole. Yadda yadda yadda, they become the biggest sport brand in the world, thanks in no small part to Mr. Michael Jordan, his Airness and their ability to consistently market their innovations.Oddly enough, their growth hasn’t ever really been about the technical superiority of their product, besides perhaps in the basketball category. In almost every sport, Nike isn’t the choice of the “serious” athletes. If you’re a serious basketballer or American footballer, it’s likely that you wear Swooshes. But serious runners typically choose something that is appropriate for their stride (New Balance, Saucony, Mizuno and Asics lead here, perhaps not in sales…). And most serious cyclists ride with Shimano, Sidi or Carnac. Serious backpackers and

43 NIKE PROJECT

hikers stick with Asolo or some other specialty brand. Until recently (with the Joga effort and its ancestors) Nike played second fiddle for adidas in soccer. I’m not that familiar with baseball but I’ve seen a lot of logo diversity on the mound, suggesting that Nike’s hold here isn’t that strong. Nike rose to great heights with Agassi and stole Sampras away from Sergio Tacchini, but other specialty brands were still considered superior by many serious Tennis players. And in Golf, Footjoy and others lead (at least in perception of quality and appropriateness) Nike despite their ownership of the Greatest Of All Time, Tiger.

So Nike’s success, as far as I can tell, been founded on their ability to win over weekend warriors and to provide fashionable designs that can be worn outside of sporting activities. As I recollect from my middle-school and early high-school days, most every kid wore some sort of Nike (or Nike-inspired Payless knockoff) athletic shoe, typically of either basketball or running varietal.

Brown Shoe Movement[Note: Not sure if I have my timing right here. Can anyone help?] But as the 1990s came to a close the so-called Brown Shoe Revolution started to threaten Nike’s hold on our collective feet. The rise of Doc Martens and their Bleatheren (get it? God that’s stupid) ilk introduced a new “look”…a new fashion possibility/sensibility that stole a significant share of foot from Nike. As trendsetters started to wear more “adult” footwear, the role for Nike (and other athletic footwear) became diminished. Nike wasn’t “about” the serious athlete and wasn’t fashionably relevant anymore. Big worries, I’m sure, in Beaverton.

A New AestheticI remember in about 2002/3, my cousin Adam called from Italy and told me that everyone was wearing tight jeans tucked into wrestling boots. If you’re not familiar with wrestling boots, they are tall boots with a very spare midsole (the foam part) and a thin outsole. This helps wrestlers grip the mat; in this case, supportive foam is a detriment…you want as much “mat feel” as possible. About this time, Nike’s design really started to suffer. Their shoes became too technically garish, too over-the-top, too self-celebratory.

In the above graphic I’ve shown the style progression that occurred over the past 10 years that resulted in Nike’s current position. At top left is the Air Max 97. It arrived on the heels of the Air Max 95, which at one point (in the gray and green colorway) was selling for several thousand dollars a pair in Japan. This, I would say, was the height of the technically advanced, athletic Nike design aesthetic. It’s probably

44 NIKE PROJECT

the most tasteful of the highly athletic genre. Note the thickness and prominence of the midsole (again, the foam part), and the weight/thickness of the upper (the fabric part), as compared to the middle shoe. In the middle is a typical wrestling boot. As mentioned above, note the lack of midsole and thin outsole and the high-top construction. These were very in for a while, and continue to be among particularly daring types. This spare, almost retro aesthetic led to the rise of the driving shoe (bottom right), which has a decent midsole for practicality but maintains the same general design idea as the wrestling boot. The shoe pictured here is the Puma Speed Cat. Certainly you’ve seen these on the feet of trendy types. It was this shoe style that helped to usher Puma and adidas to the front of the line for people looking to pair athletic shoes with their casual outfits.So, to re-cap, the Brown Shoe Movement gave people the idea that hyper-athletic shoes didn’t really go with casual clothes. This, along with Nike’s push toward shoes that outwardly celebrated their technical advancement, with big air pockets and such, resulted in a movement to a spare, retro footwear aesthetic. Puma and adidas raced in to satisfy this need with their wide range of driving-oriented shoes that looked good but weren’t quite as outlandish as the trendy wrestling boots.

ColorificSo that brings us up to the present. Recently, a trend started in the hip-hop community a few years back has resulted in a growing desire for retro sneaks with crazy colors. I’m not sure when this really started, but I’ll track some key events for you.

Jordans have always been popular, somehow since day one. And Nike produced some rare colorways of Jordans on a few occasions that grew to extreme popularity. One particular example was the Space Jam Air Jordan XI, pictured above. But in about 2002, factory variants started to become available on the internet (some real, some fake, many desirable no matter their provenance). For example, check out these Louis Vuitton Jordan XIs:

These are almost certainly fake. But it became very cool to have a unique, rare colorway of a popular shoe. And this trend is currently exploding. Nike’s doing a brilliant job with this trend, and it may help them achieve fashion relevance again. As far as I can tell, it started in hip-hop, with Nelly’s Air Force Ones:

Seriously, watch it.

45 NIKE PROJECT

It’s a tribute to Nike’s Air Force One shoe, originally made in 1982 and still worn in the NBA by Rasheed Wallace. The song is all about having rare, custom, or one-off Air Force Ones (like the ones pictured at the top of the post). But at about this time, there were some limited-edition (or painted-at-home) versions of the Ones showing up on the street, as evidenced by this lyric from the song:

Now if you looked, and seen lime green forces and kiwiYou couldn’t get this color if you had a personal genie…

I like the limited edition to khaki and army greenPatent leather pin stripe you should see how I do the stringsSize twelve with the strapRed and white with a cardinal cap…

And once it crossed-over into the general public, it went crazy. For example, check out Sneakerplay, Freshness, NikeLab, Kicks Finder, and Nike SB. And in New York, they’ve got an invite-only Nike store where you can customize to your heart’s content.

In the end…So Nike, through their moves with iD and by picking up on the customizability trend, has been able to win back some ground. And they’ve picked up some of their slack with the serious athletes. The Shox technology has been well-received by runners (and by Runner’s World, for what that’s worth), serious footballers are wearing Nikes, and the rise of LeBron James has been helpful.Over at Adliterate, they were talking about Nike’s big brand idea. I’m not so sure what that is anymore. You used to be able to define it as Just Do It…but I’m not so sure that’s applicable. I think it’s more a collection of small ideas that work for specific niches. And that may be a big brand idea in itself.

46 NIKE PROJECT

47 NIKE PROJECT