operational Issues of Nike

1. Presented by,
Aswini Shylaja Baburaj (Roll No 25)
EkankitaAgrawalla (Roll no 50)
Fatehdeep Singh(Roll No 54)
GeorgeVarkeyVakkachan (Roll no 58)

2.  TYPE: PUBLIC
 INDUSTRY: MANUFACTURING AND DESIGNING SPORTSWEAR
AND SPORTSEQUIPMENTS
 FOUNDED: JANUARY 1964 AS BLUE RIBBON SPORTS, CAME TO
BE KNOWN AS NIKE, INC. IN 1978
 FOUNDERS: WILLIAM J. “BILL” BOWERMAN AND PHILIP H.
KNIGHT
 HEADQUARTERS: WASHINGTON COUNTY, OREGON,UNITED
STATES (NEAR BEAVERTON, OREGON)
 PRODUCTS: ATHLETIC SHOES, APPARELS, SPORTS EQUIPMENT
AND ACCESSORIES
 REVENUE: US$25.3 billion (FY 2013)
 TOTAL ASSETS: US$15.465 billion (FY 2012)
 TOTAL EQUITY: US$10.381 billion (FY 2012)
 EMPLOYEE STRENGTH:44,000 (2012)

3.  BRING INSPIRATION AND
INNOVATION TO EVERY
ATHLETE* IN THE WORLD
*IFYOU HAVE A BODY,YOU ARE AN ATHLETE.

4. NIKE, Inc. fosters a culture of invention.
We create products, services and
experiences for today’s athlete while
solving problems for the next
generation.

5. PHILIP H. KNIGHT
FORUNDER AND CHAIRMAN OFTHE BOARD
OF DIRECTORS
MARK PARKER
PRESIDENT & CEO, NIKE, INC.
TREVOR EDWARDS
PRESIDENT, NIKE BRAND
ANDY CAMPION
EVP, CHIEF FINANCIAL OFFICER

6.  They design, develop, and market high quality active sports apparel,
equipment, and accessory products
 Nike distributes one new shoe style every single day
 Nike’s critical factors for success are maintaining current standards,
closer working relationships, and retaining customer loyalty by
guaranteed standard of product
 Their products are made for men, women, and children of all ages.
 The company presently sells roughly 300 models of athletic shoes in 900
styles for 25 different sports.
 Nike's target market for their shoes is males and females between 18
and 35 years old.

10. Nike launched the Nike Supply Chain (NSC) project in
2000 with goals of implementing enterprise resource
planning (ERP) and customer relationship
management (CRM) software into an integrated
platform from i2 technologies .This project proved to
be a disaster for Nike.
SOLUTION:
In conformity with the Single Instance Strategy, Nike
used the SAP AFS application across all geographies,
and also chose to implement other SAP applications
including Supply Chain management (SCM) and
Business InformationWarehouse (B/W)

11. Forced labour and appalling living conditions in a Nike supply
factory called Hytex in Malaysia.
Solution:
Nike didn’t withdraw from Hytex, but confirmed Channel 7’s
allegations and undertook improvements:
 Workers were moved out of the squalid factory annex and into
apartments
 Fees paid to unscrupulous employment agents were reimbursed,
with Hytex undertaking to pay future recruitment fees as a cost of
doing business
 Passports were returned, with a 24-hour hotline to Nike should
passports be withheld
 Workers were offered return airfares to visit home at any point in
their contract

12.  Innovative New Nike Project Hopes To
Connect Climate Dots
Nike has been acquiring data on many
fronts, and its Sustainability & Innovation
team realized that this data could be open-
sourced and mined to help the industry as a
whole better understand its impacts and
prepare for future trends like climate change,
food and material shortages, and escalating
oil prices.

13.  Nike will sell the self-lacing sneakers from
Back to the Future in 2016
Of all the technological innovations
promised by Back to the Future II, two are
most desired: the hoverboard, and self-lacing
shoes. On the semi-official Back to The
Future Day Nike officially unveiled the real-
life shoe and gave Back to The Future II star
Michael J. Fox the first pair of its self-lacing
MAG shoes.

14.  Sustainable innovation is open innovation. The
American sports shoe manufacturer has innovation
as part of its brand DNA.
 Nevertheless, Nike impresses the market again
and again when it comes to consolidating its
brand and competitive position through
sustainable measures. The latest addition is a free
app which offers designers and other interested
parties information on the environmental impact
of various materials. The objective is to help
designers throughout the clothing industry to
choose materials that impact less on the
environment