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!”
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
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
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
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
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
32. Distribution
• Licenses
• Direct retails showrooms
• Independent distributors throughout the country
• Through internet website(www. nikestore.com)
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
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)
