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Nike

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  • 1. Chris OstrowNike Assignment Nikeq) What kind of role NIKE’s external environment has played in the decision of contracting MichaelJordan?-Nike knew that Adidas was about to sign Michael Jordan so they threw more money at the Rookie thanany other company could match. Sunny Baccano convinced the company that if it took giving up thecompany they needed to sign Michael. At the time they gave him ½ a million dollars.q) List the main decisions related to athletic shoe development. Pay particular attention to technologyand environmental issues.-Nike main objective being comfortable and the best shoe for an athlete. When Nikes creator was incollege he would cut out parts of shoes and reconstruct them to make the perfect shoe. No shoe wasever light enough for the NCAA runner.q) To what extent has the NIKE organizational culture and structure become significant in decisionmaking process?-Nike is located in Beaverton, Oregon and has 16 buildings that give it a “campus feel”. They say it isn’tyour normal place to work. When other potential clients come to check out the facility it blows themaway.q) Describe how did the structure developed to fulfill the organization’s mission statement?-Phil Night and Bill Bomerman discussed how when the company first started they had 8 different jobseach. Night went to business school at Stanford University and wrote a paper on his blueprint for Nike.After graduation Night went to Japan to distribute Tigers in the United States and sold shoes out of thebackseat of his car. He went to different track and field events. Carolyn Davidson designed a logo forthem. They only gave her 35 dollars for this logo. Today they are ground breaking advertisers toppedwith a roster full of superstars. They have more than 16 billion dollars in sales. Half of their sales comeinternationally.q) What kind of policy changes has occurred to fulfill the managerial tasks?-Nike has moved from not just being a track and basketball shoe you can see it as formal wear such asthe Jordan 11’s or even in a local skate shop. Nike fans known as sneaker heads will camp outside fordays just to get the opportunity to purchase one of their sneakers.q) Name the innovations in advertisement that led NIKE to controversy.-Some of the controversies that lead to the NIKE controversy were using the Beatles song in one of theiradvertisements. This gave NIKE more publicity. Some other examples were Spike Lee in MichaelJordan’s commercial. This addition of Spike to the commercial gave Jordan more of a presence.
  • 2. Another example was Charles Barkley’s commercial where he says I am not a role model. This set off anational debate. Tiger Woods was also in a campaign where he did tricks that made the cut. In 2003Nike signed Lebrun James and headed more towards marketing online. Nike hasn’t changed its messageand encouraged people to Just Do It. This slogan has since become a national phenomenon.q) How should we distinguish between the effect of globalization ‘domestically’ and ‘outsourcingabroad’?-Globalization domestically is bringing brands of a certain product over seas such as McDonalds inRussia, or India. In those countries the corporation makes changes due to the culture. In this causeNIKE outsourced jobs from Americans for cheap labor and non workable conditions.q) How should NIKE act with the ethical challenges it faced worldwide?-NIKE should admit its mistakes and look to correct what it has done wrong. When the St. John’s coachwent undercover he reveled how the workers were treated unfairly. 10% of the shoe sales go to theworkers. 400 strikes have taken place in the Vietnam factory since 2007.q) What can we learn from the policy change from ‘defensive’ being ‘proactive’?- In life when you are caught the best thing to do is admit the truth. When you lie it leads to another lieand it makes you look really bad. When you are proactive and look to correct the problem they canpresent themselves in a more public light. People still go nuts for NIKE but they could have potentiallylost a lot of clients.q) What should be done in the future? Do you believe more in a PR or Corporate responsibility approachbeing more effective for NIKE?-I think Corporate should show more responsibility because they are the ones who make the ultimatedecision. They can have a few little things that make it look like they care but they really don’t.q) What types of challenges do NIKE face with changing face of sport shoe customers?-Nike has to keep up with the times they realize every year is a different year and they need 2 adjust to anew strategy. They have to remain hungry because when you are on top everyone is gunning for yourposition.q) How do you understand the expression: “Skateboarders do not be legitimized by a corporation!”-Skateboarders are a different kind of breed I have a lot of friends who still dabble but were much moreserious when they were younger. Skateboarders don’t want to be associated with the commercialatmosphere of the sport. It’s an underground rebellious lifestyle and sport and they don’t want NIKEcoming into their sport and taking their money.q) Why did NIKE change its strategy related to extreme sports?
  • 3. - Nike realized this and began selling their products in small skate shops to give the skateboarders a feelof their product. Nike also signed a 19 year old unknown rookie similar to what they did with MichaelJordan. They redesigned the sneaker to give it more of a skateboarder feel and have sold very well.

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