Analysis of Nike Inc Essay Example for Free

Analysis of Nike Inc Essay The brand name â€Å"Nike† is one of the most recognized around the globe. The name is synonymous with high-quality athletic shoes, apparel, and accessories in the minds of many people worldwide. Perhaps it is the compelling marketing that commands attention. Or maybe it is the association between the brand name and its famous endorsers, such as Tiger Woods and Michael Jordan. Alternatively, it may be Nike’s cutting-edge sporting vision and technology that entrances multitudes of consumers. Quite conceivably, it is a combination of these factors that has propelled Nike to the top of its industry. However, not the entire of Nike’s story is ideal. In recent years, the company has faced criticism in connection with its use of contract labor in developing nations. The purpose of this case is to provide an understanding of the company’s background, its general business strategy, and its use of contract labor. The Athletic Apparel and Footwear Industry The athletic apparel and footwear industry experienced steady growth for more than two decades, beginning in the early 1980’s. For example, the volume sales in the footwear market are projected to reach 13. 3 billion pairs by the end of 2012, and by the year 2015, the world footwear market is forecast to reach $195 billion. Consumers were not just professional athletes, but ordinary men, women, and children who wore athletic apparel for both sports and leisure. The industry became more fashion-oriented, resulting in higher levels of innovation and cutting-edge technology. As a result of the emphasis on style and fashion and customers’ demands for improving performance and comfort, the industry experienced short life-cycles for individual products. The industry was characterized by fierce competition in global markets. Industry leaders jousted for supremacy in the professional, female, and youth segments. By 2005, the U. S. market was considered to be mature, and global markets were likewise rapidly approaching maturity, resulting in intensified competition for market share. There also was heated competition for advertising and promotional licenses, particularly between the two industry giants, Nike and Adidas. For instance, Adidas sponsored one of the world’s premiere soccer clubs, Real Madrid, while Nike sponsored Manchester United, also a world class soccer club in Great Britain. Adidas was also the Official Supporter of the Athens 2004 Olympic Games and the Germany 2006 World Cup in soccer. However, Nike’s presence was very evident in the World Cup: many teams in this tournament wore uniforms emblazoned with the unmistakable swoosh. The athletic footwear and apparel industry has enjoyed a measure of stability beginning in the 1980’s, due in part to the high barriers to entry that new firms faced. There were high start-up costs due to expensive raw materials; costly innovation, technology, and advertising; and the high market share held by the industry’s leaders. Existing companies achieved economies of scale that were not available to potential new entrants. In addition, established companies had distinct identities and brand-loyal customers. New entrants would have needed to match these companies in research and development and advertising expenditures to win over customers loyal to the other brands. The world economic recession has affected the world footwear market with sales witnessing erosions in developed countries and growth slowing down considerably in developing countries. The decline in income levels have reduced the spending on clothing especially apparel and footwear (including casual, outdoor, sports, and formal footwear). Tight liquidity and financial constraints have redefined value and have induced simplicity in lifestyles and this marks the beginning of shifting consumer focus towards value for money bargains. The recession induced price sensitivity, and trading down to lower price points, has therefore constricted revenues in the marketplace, even though expanding opportunities to value brands and private label brands. Premium priced branded athlete footwear market, which exhibited resilience at the start of the recession, has witnessed quick deterioration in business opportunities, with the number of sports participants and enthusiasts declining. The economic pressures of the recession impacted consumers interest in taking up sports, and the drop in sports participation is reflected in the widespread postponement of renewal of club membership fees. Against this backdrop, the global market for athletic footwear is expected to increase at a modest pace during 2007 through 2015 period. Nike, Inc. – From Humble Beginnings†¦ Although headquartered in Oregon, U. S. A. , Nike operated around the world. As of 2006, the company employed approximately 26,500 individuals worldwide. From humble beginnings, Nike had risen to lead the athletic footwear and apparel industry. Nike began life in 1964, co-founded by Bill Bowerman and Phil Knight. Bowerman was an Olympian, then an Olympic coach, then head track coach at the University of Oregon from 1948 to 1973. On a trip to New Zealand during the early 1960s, he noticed people running for and for the sheer joy of running. The concept intrigued him, and upon his return to the United States, he started the country’s first running club. He also wrote a book entitled â€Å"Jogging† in which he explained how to run for fun and fitness. During Bowerman’s tenure at the University of Oregon, he had coached a young middle distance runner named Phil Knight. Knight wrote a research paper arguing that cheaper, high-performance Japanese shoes could overthrow German dominance of the U. S. athletic shoe industry. On a trip to Japan, Knight contracted with the Onitsuka Tiger Company to sell its quality athletic shoes in the U. S. He made up the name Blue Ribbon Sports (BRS) in 1962 and formed a partnership with Bowerman in 1964, each partner investing $500 in the business (Nike Timeline, 2006). Bowerman designed most of the prototypes and made suggestions for improvement to the Tiger Company, while Knight distributed the shoes from his father’s basement and out of the back of his car at track meets. In 1965, Jeff Johnson, Knight’s former track competitor at Stanford University, became the first full-time employee of BRS. Under his guidance, BRS opened its first retail outlet in Santa Monica, California, in 1966 (Nike Timeline, 2006). In the following year, the company was incorporated. In 1971, Carolyn Davidson, a graphic design student that Knight met at Portland State University, designed the swoosh for $35. Later that year, Jeff Johnson devised the name Nike, after the Greek goddess of triumph and victory. â€Å"Nike† edged out Knight’s idea of calling the company â€Å"Dimension 6† (Nike Timeline, 2006). In 1970, Bowerman created the first running outsole by pouring liquid rubber into his wife’s waffle maker, an innovation that forever changed the design of running shoes (Nike Timeline, 2006). In 1972, Nike and the Onitsuka Tiger Company parted company. Later that year, Romanian tennis player Ilie Nastase became the first professional athlete to sign an endorsement contract with Nike. Nike’s signing of American record-holder track athlete Steve Prefontaine in 1973 led to many athletes converting to the new brand. In 1974, the waffle trainer was introduced and quickly became the best-selling training shoe in the nation. Subsequent endorsement contracts, advertising campaigns, and athletic footwear innovations (such as Nike air cushioning shoes in 1979) established Nike as a force to be reckoned with. In 1986, corporate revenues exceeded $1 billion for the first time (Nike Timeline, 2006). To Industry Leader In 2005, Nike generated total revenues of $13. 7 billion, an increase over 2004 of 11. percent. Nike held 40 percent of the global market for athletic shoes and apparel (Nike, Inc. , Datamonitor, 2005). Adidas’ acquisition of Reebok in January 2006 made that company a serious rival to Nike’s industry dominance, cornering 20 percent of the worldwide market (Nike, Inc. , 2006, Hoover’s Company Records). The remaining 40 percent market share was divided among other industry contenders, such as Puma AG Rudolf Dassler Sport, K-Swiss, Adams Golf, Callaway Golf Company, and Columbia Sportswear. Nike continued to lead the industry, largely due to its strong international presence. In 2003, Nike’s international sales outstripped its U. S. sales for the first time; in 2005, international sales generated 62. 7 percent of all revenues. Nike sold about 200 million pairs of athletic shoes, and the footwear division contributed 53. 1 percent of all sales for 2005. In 2007, Nikes revenue totaled $16. 326 billion, making a total gross profit of $7. 16 billion. In 2012, for the quarter ended 29 February, Nike’s net income rose 7% to $560 million from the same period last year. Nike said that worldwide future orders for its footwear and apparel, scheduled for delivery from March to July 2012, came to $9. billion up 15% from the same period last year. In North America, Nike’s revenues surged by 17% to $2. 15 billion, and in China, gained by 25% to $694 million. Revenues in Western Europe, which has been suffering from sluggish growth and a debt crisis, rose by 4% to $962 million, but these are expected to increase prominently this summer, with the European football championships in Poland and Ukraine and the 2012 Olympics in London. Finally, the total revenues rose 15% to $5. 8 billion. In January, Nike agreed compensation in a dispute with workers in Indonesia over unpaid overtime. Its Indonesian subsidiary will pay $1 million to about 4,500 workers. Nike’s Vision, Mission and Values An effective and successful Vision statement is powerful and compelling, conveying confidence and inspiring views of the future. The importance of a Vision Statement should not be underestimated. One good paragraph will describe the values, services and vision for the future. The main reason for an organizations existence is to follow through on the mission, vision values, and goals taking into considerations all key stakeholders. However, every company has different set of stakeholders varying in power and significance. The Nike organization uses the collaborative process in functional areas identifying the key stakeholders to facilitate appropriate interactions. In defining the company, strategic managers must identify all of the stakeholders groups and weigh their relative rights and their relative ability to affect the firms success (Pearce Robinson, 2009). Resourcing the key stakeholders to recommend strategic action plans that support the organizational structure and facilitate the organizations success. The Nike Mission is to bring inspiration and innovation to every athlete in the world and if you have a body you are an athlete (Nike, 2010). This refers to the fact that Nike exists to supply everyone in the world with the shoes, equipment, or apparel that if anyone has a body then anyone has the potential of becoming an athlete. From the start one understands that Nike intends to merchandize to the world of athletes or people who have a body. That is a huge undertaking, which involves various sets of stakeholder groups. The mission is the catalyst that drives the organization. The stakeholders have power to influence the process of accomplishing the mission, vision, values and goals. However the stakeholders groups have varying ideas, goals, objectives and expectations on how to accomplish the mission. Thus claims must be reconciled in a mission statement that resolves the competing, conflicting and contradicting claims of stakeholders (Pearce Robinson, 2009). The mission must be clear and concise with a solitary purpose that represents the firms goal. Nikes vision is to help Nike, Incorporated and our consumers thrive in a sustainable economy where people, profit, and planet are in balance (Nike, 2010). By integrating information from the various stakeholders roups, rethinking pass mistakes and processes will allow Nike to continue, implementing sustainable principles. This information enables Nike to make changes in the industry and in the company. Identifying challenges, brainstorming solutions, deciding and acting to evaluate, monitor, and reevaluate if the vision is in line with expectations. Nikes values are formed by the strategy teams whose primary focus is to work repeatedly on each part of the vision, strategy, factories, environment, community people, and culture the process keeping Nike in line with working toward the goals of Nike organization. The goal for Nike is believing in the partnerships formed valuing the opportunity to work together with all stakeholders in the apparel industry and to share best practices. Nike has built a stronger relationship with the European governments by considering legislation that will form the future of the clothing industry in areas such as recycling, environmental labeling, consumer awareness, and sustainability. Nike supports the goal of partnerships that bring solutions to enhance sustainability throughout its supply chain and helping the world. Nikes mission, vision, values and goals take on the responsibility living up to these stated purposes. Working together to provide inclusiveness, and diversity inventing ways for people, products and profit to thrive for the Nike organization. Creating systems that work together with partners to rethink, reshape, and analyze challenges. Each component builds upon the other to accomplish primary reasons that Nike exists, for the athlete, the planet and to profit. A company’s core philosophy has the power to influence, inspire and challenge employees on a daily basis. Nike, being the progressive company they are, employs an emergent strategy, one that originates in the interaction of an organization with its environment. Nike’s philosophy is of an extremely importance, not only because of the great success it has garnered Nike and their products, but also because of the continuous call to creativity and innovation it facilitates. The Nike core purpose, experiencing the emotion of winning and crushing your competition, is also important in developing the foundation of a brand promise and value proposition.

Larry Summers Memo :: essays research papers

Larry Summer’s Memo   Ã‚  Ã‚  Ã‚  Ã‚  A controversy exists whether the World Bank should be encouraging migration of dirty industries to less-developed countries. Larry Summer challenges that the World Bank should persuade such a migration. Others contend that these less-developed countries, despite their economic plight, should not be coerced into harboring dirty industries, a position I support. (A1) In his first argument Summer wants to force a sudden increase in pollution, which would cause an improvement in the economy, of lower wage countries. Summer justifies his beliefs by giving an example of circumstantial as hominem. He states, â€Å"Health impairing pollution should by done in the country with lowest cost, which will be the country with the lowest wages.† An assumption is made by Summer, where he concludes that lowest cost countries will have the lower wages. He concludes by saying, these low wage countries should contain high pollution. The premise of Summer’s argument is assumed true, so his argument is invalid, but strong.   Ã‚  Ã‚  Ã‚  Ã‚  (C1) Many agree with Summer on his stance of high-pollution industries in lesser-developed countries. They claim that it is economic logic to fill the countries with low wages with profitable industries. By doing this, it would cause more people to want to live in a less populated area and work for higher wages. A sudden increase in population would also increase the number of the labor force. By doing this, more workers and industries would rapidly affect the growth of the economy.   Ã‚  Ã‚  Ã‚  Ã‚  (R1) In closing the first argument Summer commits to subjective fallacy when he states dumping toxic waste is â€Å"logical† and â€Å"impeccable†. He develops this argument by using errors in reasoning, such as these examples. Summer also makes ambiguous claims by make a personal attack on the reader. The phrase â€Å"we should face up to that† tells the readers they have been denying something. Summer uses this phrase to conclude his argument of pollution dumping.   Ã‚  Ã‚  Ã‚  Ã‚   (A2) In the second argument, Summer’s discusses his opinion of Environmental issues. He states, â€Å"I’ve always thought that under-populated countries in Africa are vastly under-polluted.† This is clearly a subjective claim and Summer’s opinion. He vaguely assumes that a country could be â€Å"under-polluted†. The pollution of the world is not a natural occurrence; the waste of man creates it. This waste should not be pressured upon a geographical area if they do not create it. A clean and healthy environment is the only thing many lesser-developed countries have to cherish.

What Determines Are Destiny

It can be difficult to understand and realize what determines our destiny. There are Contradiction determining if our characteristics and behavior are primarily due to Genetics or the environment in which we live. Many factors and aspects of Lives influence us daily. These factors create different circumstances that lead us to determined our path. Dr. Judith Rich Harris states in the video that the similarity of children to their parents in personality, is entirely genetic†. In the video Dr.  Stanley Greenspan said that if parents feel they have no influence and everything is genetically determined, then they may not do what they need to do to help the babies be flexible, healthy and good capers. The video states that we are born with a set of genes that never change. When we are conceived, two sets of genes are joined into one. From that moment, DNA determines certain characteristics. We can now readily accept that genes determine our eye color, height, blood type, gender and other biological factors. But science has only begun to explore the role that genes play in human behavior. Some People believe that the power of genes, determines all consequence in our lives. But other people say that genes do not determine everything in a person life. There have been countless studies to find out if our destiny is written in our genes or determined by circumstance. Dr William R. Clark thinks that â€Å"Gene may well, determine how we behave in given situations. This way, the behavior can be caused from the Genes, and not by habits or education. Some features and of a person will never change, and other can be easily changed. The male speaker states that one of UCLA immunologist Dr.  William Clark says, that genes help to control how we interpret our environment. In many cases genes can be very useful and there can be a lot of similarities in gestures, talking etc. In many cases this similarities are done by children without knowing that their parents do these things the same way. It is the opinion of Dr. William R. Clark, â€Å"You’re dealt a particular hand of neurotransmitters and neurotransmitters receptors and again together, with other things of course in your biology and in your history, it’s to play out differently in different people. As fact, everything is very ndividual. There are children that are not similar to their parents and very different in character and features. Let consider what Dr. Steven Pinker said , â€Å"There has to be some kind of innate circuitry in place that allows us to create culture and acquire culture and do the learning. It was suggested that they do not operate without some input. Dr William R. Clark thinks that what you choose to learn, how hard you try to learn, and what you do with what you learn, you do some input. The ability to modify our behavior is what allows us to overcome genetic predisposition. In opinion of Dr.  David Moore, different genes are turned on and off in different circumstances. Personally I agree with that and I think that sometimes people act not by the rules made up by society, but by the genetic rules. They do this unconsciously. Speaker also states that â€Å"those circumstances thought maybe very subtle. Consider identical twins born with the same DNA; though raised alike, Nancy and Jenna are quick to point out they are individuals. Jenna says that Nancy was always very pretty spirited, and that she was a little bit more responsible. For each person their individuality is very important. It means being different from each others, doing something special and something that will surprise others. All individual have different interested, characteristics, and skills. People use creativity, through knowledge and new ideas, and implement them in their daily lives. Many people appreciate changes, as they bring a lot of new things. New things always have the upper hand, always attracting people and keeping them motivated. According to Dr. Stanley Greenspan, â€Å"Proper upbringing will depend on lots of nurturing interactions in your all years of life. † Dr Steven Pinker thanks that â€Å"Parents aren’t the only aspects of the environment? There is also the surrounding culture. As a fact, some people believe that in reality, the strongest social influences exist outside the home. Dr. Judith Rich Harris presumes that â€Å"Children live in separate worlds and each world is very important, but there is very little carry over from one world to the other. And what is carried over is whatever is genetic. As stated by Dr. Judith Rich Harris, â€Å"we get our genes from our parents but are guided by our peer. Nature vs. nurture purists believe that we are either molded entirely by our surroundings or our genetic makeup. Personally I think that upbringing is extremely important, and it determines the future character of a person. The children of immigrants do not resemble their parents in the language they’re speaking even in their culture. They resemble the people they grew up with. In a recent study, all that Dr. Judith Rich Harris said was back-up. The greatest influence was found on weather teen drink or smoke, has to do if weather their friends do. External influence can make a great different, as everything depends on the company and friends, who surround the particular person. Dr Judith Rich Harris thinks that â€Å"as long as you are within the normal range of parenting, how your child turns out is not up to you is up to the child. All in all, children and their perception of the situations and the world as a whole determine their habits, their communications skills and abilities. The whole future depends on what child experiences, who he communicates with who these people are. As was stated by child psychiatrist Dr Stanley Greenspan, this attitude can create irresponsible parenting. We encourage parents to be either passive or hopeless or helpless in the phase of certain challenges that they were assumed are genetic. Consequently, the genes and environment are like a dance, working together to make as who we are. Dr Stanley Greenspan thinks that maybe the environment sets the constraints, just as much of genes do . Dr David S. Moore stated that â€Å"if you throw Einstein in a closet, when he’s a baby because he had some insane parent, he would not grow up to be smart, He would wind up like one of those tragic kids who get’s found in a closet. â€Å" To sum it up, it can be stated, that whether it’s parents, peers or genetic predisposition, it seems our destiny our destiny is determined by a blend of factors. Dr. Greenspan is convinced, that â€Å"nature is a lock and nurture has provided the key for that lock. † In the present, scientist continue to study the nature of our DNA and how it reacts to environment as they think they will gain better understanding of the diseases and behaviors that affect our lives. All in all, it is almost impossible to determine our destiny, as the influence on the person’s life is unpredictable and there are many possibilities to change everything and to make a choice. I think both sides of the issue are correct to varying degrees depending on the issue. Obviously we are not able to change our height, shoe size, or natural hair color, but if we are plagued with a trait that is not considered â€Å"normal† that we want to change and do so, by all means we should. I think that upbringing and behavior, and our belief determine our destiny. It comes down to what is in our entire character makeup, and our ability to overcome the negative influences of our environment and take steps to modify the glitches in our personalities. It can be said for sure, that education plays the most important part in a person’s life and it determines the future and success of a person.

An Educational Presentation By Caitlin Gibbs - 1314 Words

Yersinia pestis An educational presentation by Caitlin Gibbs General Outline Covering: ï‚ § History and Relevance ï‚ § Biological Characteristics ï‚ § Pathogenesis ï‚ § Detection Not covering ï‚ § Its use as a biological warfare agent The Plague Considered by many to be the greatest pandemic in the history of the world, the Plague is a disease that has ‘plagued’ the world for over a millennia. Three major pandemics recorded throughout history— claimed an estimated 200 million lives. History of the Plague The First Pandemic ï‚ § First recorded history of the plague, was the Plague of Justinian between 541 – 542 AD. ï‚ § Began in Pelusium, Egypt, after arriving from Ethiopia. ï‚ § Quickly spread through the Middle East and Mediterranean basin ï‚ § Eventually affected all the known world— o 25 million deaths during the pandemic o Up to 50 million deaths total over the next 250 years until 700 AD. Slowly spread from Central Asia, to the west via trade routes between 1330 and 1346. The Second Pandemic ï‚ § Its arrival in Sicily in 1346 brought the start of the Second Pandemic, known as the Black Death. ï‚ § During 1346 to 1353 it killed between 17 and 28 million Europeans, which was about 30 to 40% of the population. ï‚ § Further epidemics continued across the globe until the mid 17th century. o The biggest pandemic in history with over 100 million deaths. o Killed 30% of the world’s population. The Third Plague Pandemic (AKA The Modern Pandemic) ï‚ § Started in 1855 in the Chinese province of Yunnan. ï‚ § By