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Nike1

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  • 1. Dr. V. N. Bedekar Institute of Management Studies, Thane (Dr. VNBRIMS) Presents The Nike Team
  • 2. THE NIKE TEAM ADITI SABARIA OUR GAME. OUR TIME. JANKI RAVAL JAY LODAYA KAVITA SINGH LAJJA RESHAMWALA MEGHNA RAJPURA
  • 3. COMPANY OVERVIEW
  • 4. History • Its name is derived from a winged Greek goddess • “Swoosh” logo designed by Caroline Davidson • Is now one of the world’s top shoemaker that captures more than 20% of US athletic market • Original name of Nike given by Phil was “Blue Ribbon Sports”
  • 5. History contd….. • With an agreement in 1964, they began importing Japanese brand Onitsuka Tiger running shoes • Nike has gone through many changes • Started small and now has covered the U.S. and International market • “Greeks say when we go to battle and win, we say it is NIKE!”
  • 6. ------- Time Line ------- 1960’s 1950’s 1980’s 1970’s 1990’s 2000’s
  • 7. Vision Nike’s vision is for every team to be high performing, diverse and inclusive
  • 8. Mission • Nike’s mission is to bring inspiration and innovation to every athlete in the world • Customer service mission: To represent the highest service standard within and beyond our industry, building loyal consumer relationships around the world
  • 9. Brand Portfolio
  • 10. What Nike does • Footwear Studs for Striker Mid fielders Defenders • Apparel Headwear Tops/Polo Jersey Jackets Shorts Socks
  • 11. Contd….. • Equipment Ball Bags Watches • National Team Gear Jersey for Brazil, England, India, etc. • Club Gear Club Jerseys like Man U, Real Madrid, etc
  • 12. Production • Nike has relocated production of its footwear and clothing to 51 countries • Its third party production units employ more than 500,000 people • From its headquarters in Beaverton, Oregon, Nike manages a worldwide virtual company combining internal R&D functions with a low cost manufacturing strategy • Sneakers are assembled in South Korea and Indonesia from dozens of components supplied by firms in Japan, South Korea, Taiwan, Indonesia and the United States • Nike outsources distribution to firms that specialise in logistics services
  • 13. Diversity Nike’s diversity and Inclusion team focuses on three areas: • Developing Innovative Tools, Models and Designs • Engaging Employees • Providing Business Consultation
  • 14. INVESTORS
  • 15. Corporate Governance Responsibilities • CR management at the board level • CR management at the executive level • Leadership responsibilities • Integration of CR at the operational level
  • 16. • Minimizing our impact on the environment • Providing a safe and healthy work place Code • Promoting the health and of well-being of all employees Ethics Management practices that respect the rights of all employees, including the right to free association and collective bargaining
  • 17. Tax Policies • In India Corporates are taxed at 30 % of income as per income tax act • Corporates are subject to 10% surcharge if the income exceeds 1crore
  • 18. Tax Structure • Federal Tax • State Tax Taxable Income over ($) Not over ($) Tax Rate ($) $ 0 $ 50,000 15% $ 50,000 $ 75,000 25% $ 75,000 $ 100,000 34% $ 100,000 $ 335,000 39% $ 335,000 $ 10,000,000 34% $ 10,000,000 $ 15,000,000 35% $ 15,000,000 $ 18,333,333 38% $ 18,333,333 ---------------------- 35%
  • 19. Duty structure • Chapter heading 64 for shoes Chapter heading 65 for sports goods • Import Group no. 3 • Basic Duty:10% • CVD:8% (if above Rs 250@ 4%) (if below Rs 250@ nil) • Education cess: 2% & 1% for Higher & higher secondary education cess on basic duty • Education cess: 2% & 1% for Higher & higher secondary education cess on CVD • Additional duty of 4% on total duty amount
  • 20. Pricing Policies • Material cost account for 60 to 70% of the cost of shoe • Wages, overheads, depreciation & factory profits accounts for the rest • While shipping the shoes Nike pays for shipping, insurance, duty and sometimes inland freight
  • 21. Financial Statement In Millions except per share data 30th Nov2008 30th Nov 2007 % Change Statement Revenues $10,022.3 $8,994.6 11. Cost of Sales $5,410.2 $4,986.5 8. Gross Margin $4,612.1 $4,008.1 15 Expenses $3,429.1 $2,906.2 85 Income before TAX $1,234.8 $1,185.9 4 Income Tax $333.3 $256.8 30 Net Income $901.5 $929.1 -3 Diluted EPS $1.83 $1.83 0 Basic EPS $1.86 $1.86 0 Dividend Declared $0.48 $0.41
  • 22. NIKE RESPONSIBILITIES
  • 23. Work Culture “ We are a company that includes the brightest, most committed, most sought after people in the industry.” - Phil Knight
  • 24. Code of Conduct • Forced labour • Child labour • Compensation • Employee benefits • Hours of work/overtime • Environment, safety and health • Documentation and inspection
  • 25. Why work at Nike??
  • 26. Job Functions at Nike • To create and build Nike products • To bring Nike products to the market place • To build operational efficiency around bringing product to the market
  • 27. Environmental policies • Nike Environmentally Preferred Materials (EPMs) • Material Analysis Tool (MAT) • Sustainable materials • Restricted substances list
  • 28. Community Investment • Youth Games • Aids campaign • Promotes World Refugee Day • Supports empowerment for women
  • 29. Reuse A Shoe & Nike Grind Worn Out. Play On.
  • 30. Foundation • Established in 2004 • Investing in the girl effect : the most powerful force for change • Improving the lives of adolescent girls
  • 31. PROMOTION
  • 32. Distribution • Licenses • Direct retails showrooms • Independent distributors throughout the country • Through internet website(www. nikestore.com)
  • 33. Marketing “IS IT THE SHOES??”
  • 34. Advertising • Designed to make a connection to the consumer • Featuring only the swoosh logo • Seek to portray the core values of sport • Collaboration ads with another strong branded product, such as Apple iPod
  • 35. Contd…. • Employed many athletes as its spokesperson • Among the athletes are Michael Jordan, LeBron James, Serena Williams, and Tiger Woods,Roger Federer, Rafael Nadal
  • 36. Competitors
  • 37. INNOVATIONS
  • 38. STUDIO •The ultimate expression of Customisation
  • 39. Future Investment & Ventures Nike To Invest USD99 Million To Build Distribution Center In Jiangsu
  • 40. Awards & Recognition
  • 41. Global 100 most sustainable corporations 2009 (Davos, Switzerland) 100 Best Corporate Citizens 2009 (New York city, USA) World’s most Ethical Companies 2008 (New York city, USA) Ceres for design and innovation 2008 (Boston, USA)
  • 42. Webliography • www.nikebiz.com • www.nikefoundation.org • www.nike.com • www.imagesgoogle.com • www.google.com
  • 43. THANK YOU

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