2. 2
Table Of Contents
Letter from CEO_________________________________________________________3
Background Of Nike______________________________________________________4
Crisis Management Team__________________________________________________6
Crisis Management Team Contact Sheet______________________________________9
Shareholders and Stakeholders_____________________________________________10
Crisis Control Center____________________________________________________13
Rehearsal Dates_________________________________________________________14
Crisis Control Center Materials____________________________________________15
Crisis Management Wheel________________________________________________16
Proprietary Information__________________________________________________17
Issue Sources__________________________________________________________18
Risk Assessment Sources_________________________________________________19
Nike Pre Crisis- Audience Analysis_________________________________________20
Issues Associated with Nike Inc.___________________________________________21
Incident Report In Store__________________________________________________24
Incident Report for Factory________________________________________________26
Strategies and Tactics____________________________________________________28
Options for Contain Crisis________________________________________________29
Message Strategy_______________________________________________________30
Strategic Options________________________________________________________31
Post Crisis Format_______________________________________________________32
Appendix A____________________________________________________________33
Appendix B____________________________________________________________37
Aknowledgements_______________________________________________________39
3. 3
Letter from the CEO
Since the day Nike opened as Blue Ribbon Sports in 1964, it has focused on
supplying the world with the best athletic apparel. Nike has a focus of being on
the forefront when it comes to design, creativity, innovation, and style. Our main
rule at Nike is like our slogan says “Just Do It,” and we do that by constantly
raising the bar when it comes to our products. Our purpose is to inspire both
young and old by partnering with top athletes and celebrities, to show that
anyone can “Just Do It.”
At Nike, we work hard to make sure that every idea, product, and purchase made
is one that inspires and motivates everyone to get out there and “Just Do It.”
From our dreams that push the boundaries of what can and can’t happen the
possibilities of our products are endless.
By working alongside the world’s best sports teams, athletes, celebrities, and style
icons, our goal is to motivate everyone that by lacing up their Nike shoelaces,
they are one step closer to their icon. At Nike, have built a brand where the
memories made in our products, can last a lifetime.
Being a global brand, Nike is focused on having a presence in the community,
from sponsoring sporting events, and endless charities that focus on giving back,
and building up sports in low income areas. Our commitment to making sure
everyone can live their dreams through our products is at the front our minds.
At Nike we are passionate about creativity, creating top of the line products, and
giving back to the communities we serve. We will never be afraid to “Just Do It”
Sincerely Yours,
Rory Mileham
Chief Executive Officer
Background on Nike
4. 4
Known today for being a world leader in sporting goods, shoe design, and
athletic wear, the Nike swoosh is one of the most recognizable symbols in the
world. While today Nike is one of the most powerful countries in the world, Nike
stared out as a man who wasn’t afraid to “Just do it.”
Starting out as Blue Ribbon Sports in 1964 Nike founder Phil Knight was selling
running shoes out of the trunk of his car. Being a former track and field runner at
the University of Oregon, Knight had a close bond to his former coach, Coach
Bowerman. The two had a passion to make a shoe that was like nothing on the
market. They wanted a shoe that was lightweight, but also durable.
It wasn’t until 1972 that the two had the creation they wanted. By experimenting
with shoes that the two were selling at Blue Ribbon Sports, the two created the
“Oregon Waffle Shoe,” which was made by the two pouring rubber in a waffle
iron.
After this success Blue Ribbon Sports officially became Nike Inc. The name Nike
comes from the Greek Goddess of Victory, which was Knight and Bowerman’s
mission for everyone who owned the shoe.
Knight and Bowerman knew that they now had a product that would sell; they
just needed to find a way to market the shoe. Steve Prefontaine was the first
athlete to be endorsed by Nike. Prefontaine went on to set records in his distance
running, and for Nike, this was the beginning of their association with the world’s
top athletes.
Nike went on to partner with the top sports starts in the world in every major
sport, one of the most recognizable being Michael Jordan. Jordan was signed to
an endorsement deal in 1984, from having the world’s greatest basketball player
signed with them Nike growth as the worlds leader in sporting goods
skyrocketed. The following year Nike released a new line of shoes named “Air
Jordan,” which to this day are one of their most successful selling product.
Seeing the success it had by partnering with the top athletes and selling their
sporting goods, and also being inventive with the top of the line designs. Nike
was able to strengthen its grip as being the worlds best. From a company that
started by selling shoes out of a car truck, to selling shoes all over the world, the
Nike Corporation will always be willing to ‘Just Do It.”
6. 6
Chief Executive Officer and Social Media Lead
Milera22@uwgb.edu 608-320-570
As Chief Executive Officer of Nike, Rory is dedicated to making sure that each
person who laces up their Nike sneakers, or wearing Nike apparel has the best
experience possible. From his multiple roles of maintaining Nikes image,
strengthening partnerships, and managing the crisis management team, Rory has
been the Chief Executive Officer at Nike since January of 2015. Rory earned his
degree in Communication, emphasizing in Public Relations and Social Media
Strategy from the University of Hawaii.
Gianna Torres
Public Relations Director and Social Media
Consultant
Torrgm12@uwgb.edu 414-292-6187
As the Public Relations Director and Social Media
Consultant, Gianna strives to maintain a transparent
character with the public. Her daily tasks include but are
not limited to; writing press releases, overseeing Nike’s
various campaigns and reaching out to the media. One
of the largest goals for the Nike brand is to be true to
the “Just Do It” slogan. This consists of keeping a strong face with their morals
and the way the company operates. Gianna has been the Public Relations
Director at Nike since June 2010 and became a Social Media Consultant in
January of 2015. Gianna graduated from the University of Kentucky, with a
degree in communication double emphasizing in Public Relations and Mass
Media.
Sarah Frelich
Head Legal Consultant
Frels17@uwgb.edu 920-606-0266
Sarah graduated from South Carolina State with a
Masters in Legal Studies. She was appointed to Nike’s
7. 7
Legal Counsel April 21, 2011. It is her job to make sure that the corporation of
Nike operates and functions properly under United States law. Nike knows that
people perform best in a work environment free from unlawful harassment and
discrimination. Nike is committed to providing safe and healthy work
environments. It is Nike’s policy to comply with the export and import control
laws and regulations of all countries in which Nike does business. Everywhere in
the world, Nike complies with the U.S. anti-boycott laws. From working with a
highly competitive business, Sarah knows that all employees should not disclose
any of Nike’s non-public exclusive or confidential information to the public
domain through any form of communication.
Lindsay Briquelet
Head of Safety and Security
Briqll22@uwgb.edu 920-246-4308
Lindsay’s main objective is safety throughout the
whole company. Lindsay and her whole team keep a
close eye on maintaining safe working conditions
and preventing accidents in factories. Keeping all
Nike employees safe at all times is the number one
priority. Lindsay makes sure safety and security
members are performing their jobs effectively. In
addition Lindsay handles any issues that may arise
within the factories or store locations quickly and
effectively. In a crisis situation it is Lindsay’s duty to
contact the local fire department, authorities and
pest control. Daily responsibilities include overseeing
factory and store inspections to ensure all requirements are met by Nike. Other
tasks include evaluating equipment in the factory, making sure it is in top
condition, up to date and malfunction free. Beyond her daily responsibilities
Lindsay is constantly researching the newest innovations to keep product quality
high and employees safe at all times. She frequently suggests safety
improvements to keep Nike moving smoothly and safely. Lindsay helps keep Nike
employees.
8. 8
Tyler Otto
Operations Manager
Ottotj04@uwgb.edu 920-850-3668
As Director of Operations, Tyler’s job is to make sure
that everyone is doing their job and that operations are
running smoothly at Nike’s facilities worldwide. Due to
the fact that Nike has operations running in many
different parts of the world, Tyler serves as a
middleman by staying in constant contact with all
levels of management and answering any questions
they may have in order to maintain the continuous
success of the company. He makes sure to meet with the key officials monthly to
ensure things are running smoothly. Tyler is also traveling frequently to the
various locations to check up on their operations, resolve any conflicts and
suggest ways that their operations can continuously improve. Tyler developed
these skills at Central Michigan University in Mount Pleasant, MI where he
graduated with a Bachelor’s Degree in Organizational Communication. Tyler has
been an important asset for Nike since 2011.
Contact Sheet
Rory Mileham
Chief Executive Officer and Social Media Lead
Milera22@uwgb.edu
(608)320-570
Call or Text: Both
9. 9
Sarah Frelich
Head Legal Consultant
Frels17@uwgb.edu
(920)606-0266
Call or Text: Both
Lindsay Briquelet
Head of Safety and Security
Briqll22@uwgb.edu
(920)246-4308
Call or Text: Both
Tyler Otto
Operations Manager
Ottotj04@uwgb.edu
(920)850-3668
Call or Text: Both
Shareholders
The Vanguard Group Inc.
41,931,566 shares
100 Vanguard Blvd
Malvern, PA 19355
(610) 669-6100
Fidelity Management and Research
Co.
39,117,305 shares
9310 Topanga Canyon Blvd #220-A
Chatsworth, CA 91311
(818) 407-6620
10. 10
State Street Global Advisors
34,003,096 shares
State Street Financial Center
Boston, MA 02111
(617) 786-3000
BlackRock Fund Advisors
27,322,752 shares
400 Howard St
San Francisco, CA, 94105
Capital Research and Management
Co. (Global Investors)
16,803,524 shares
333 South Hope Plaza
Los Angeles, CA 90012
(213) 615-0514
Capital Research and Management
Co. (World Investors)
13,882,000
333 South Hope Plaza
Los Angeles, CA 90012
(213) 615-0514
Jennison Associates LLC
16,230,286 shares
466 Lexington Ave
New York, NY 10017
(212) 421-1000
Stakeholders
Anne Kelly
Director of Governance Programs
Ceres
99 Chauncy St
Boston, MA 02111
(781) 354-6708
David Chen
Founder/Managing Director
Equilibrium Capital
555 Clay St
San Francisco, CA 94111
(415) 398-9401
Garrett Brown
Compliance Officer
Cal/OSHA
1515 Clay St Suite 1901
Oakland, CA 94612
(510) 286-7000
Helio Mattar
President
Akatu Institute
Sao Paulo, Brazil
(604) 682-6673
Jason Morrison
Program Director
Pacific Institute
654 13th
St
Preservation Park, Oakland, CA
94612
(510) 251-1600
Kavita Ramdas
CEO
Global Fund for Women
222 Sutter St Suite 500
San Francisco, CA 94108
(415) 248-4801
Kevin Carroll
Author, Speaker and Agent for social
change
11. 11
Ma Jun
Director
Institute of Public and Environmental
Affairs
6-1-91, Jianguomenwai Diplomatic
Residence Compound, No.1 Xiushui
Street
Chaoyang District, Beijing 100600
+86 010 6718 9470, 6713 6387
Melissa Brown
Director
IDFC Global Alternatives (Hong
Kong) Ltd.
Paul Gilding
Writer, Advisor and Advocate on
climate change and sustainability
Peter Graf
Chief Sustainability Officer
SAP
1 (800) 872-1727
Tim Brown
President/CEO
IDEO
150 Forest Ave
Palo Alto, CA 94301
(650) 289-3400
Todd Moss
Senior Fellow/Director of the
Emerging Africa Project
Center for Global Development
2055 L Street NW Fifth Floor
Washington DC 20036
(202) 416-4000
13. 13
Crisis Control Center
Primary Location
University Union 103
University of Wisconsin Green Bay
University Union room 103
2420 Nicolet Drive
Green Bay, WI 54311
Secondary Location
Cofrin Library
David A. Cofrin Library
University of Wisconsin - Green Bay
2420 Nicolet Drive
Green Bay, WI 54311-7001
Tertiary Location
Garden Café
University of Wisconsin-Green Bay
2420 Nicolet Drive,
Green Bay, WI 54311
14. 14
Rehearsal Dates
The Nike Crisis Management Plan is rehearsed on a quarterly basis that is categorized
based on product, factories, staff and a wild card so each member of the crisis
management team is trained on how to act in a crisis situation. Each meeting will
rotating from the primary and secondary location to make sure the director of each
global headquarters will also be involved in the training.
Primary Location
Nike World Headquarters
One Bowerman Drive
Beaverton, OR 97005
1-503-671-6453
January 23
April 24
Aug 22
November 21
Secondary Location:
Nike EMEA (Europe, Middle East & Africa) Headquarters
Colosseum 1
1213 NL Hilversum
The Netherlands
+31 35 6266453
January 23
April 24
Aug 22
November 21
15. 15
Materials Needed In Crisis Control Center:
Phone chargers
Computer chargers
Televisions
Teleconference capabilities
Week supply of dry food
Week supply of water
Bathroom
Shower
First aid kits
Landline
Batteries
Pens
Paper
16. 16
Crisis Management Wheel
Above is a crisis management wheel. This wheel breaks down accidents into three
large categories. Normal accidents which can break broken up into 3 subsections,
natural accidents and abnormal accidents. This wheel reflects all of the possible crisis
situations that could occur at any time. Based on this wheel, our group has constructed
a crisis management plan that will prepare us for any situation.
17. 17
Proprietary Information
Business plans
Marketing plans
Salary Structure
Employee Health Records
Employee Injury Records
Employee Personal Records and Information
Patents
Copyrights
Trademarks
Stockholders personal records and info
Designs for future apparel
Designs for future shoes
Designs for future merchandise
Production methods
Names of compensated customers
Contacts with athletes
Contracts with celebrities
Contracts with other companies
Transcripts
Prototypes
18. 18
Issue Sources
Newspapers -- Wallstreet Journal, The New York Times, The Washington Post, USA
Today, Washington Times, Los Angeles Times, Investor’s Business Daily (IBD), Chicago
Tribune, The People’s Daily, The Examiner, Bild, Asahi Shimbun, The Christian Science
Monitor, China Times, The Daily Mail, The Times of India, El Mundo, The Sydney
Morning Herald, Le Monde, La Repubblica, The Globe and Mail, Hurriyet, Gazeta
Wyborcza, Kompas, Miada fronta Dnes, O Globo, Kommersant, The Jerusalem Post, The
Dong-a Ilbo, Der Standard, Phillipine Daily Inquierer, Aftonbladet, The New Zealnd
Herald, De Telegraaf, Dagbladet, The Star Online, Dawn, Al-Ahram, The Straits Times,
Het Nieuwsblad, South China Morning Post, Ilta Sanomat, Politiken, Arab News,
Independent Online, Gulf News, SME, El Comercio, To Vima, El Universal,
We are a global company, so these are the top newspapers in the world covering many
different countries.
TV News -- ABC News, Bloomberg Television USA, CBA News, CNBC, CNN, Fox News
Channel, NBC News (MSNBC), ESPN, BBC News
Business Magazines -- Barron’s, Bloomberg Businessweek, Fast Company, Forbes,
Fortune, Newsweek, Time, U.S. News & World Report
Online -- Drudge Report, NPR, Google News, TV/Newspapers/Magazine Webpages,
News Groups, Blogs, Social Media Sites, Sports Sites
Risk Assessment Sources
20. 20
Nike is more concerned about reputation loss and losing the valuable stakeholders
within their organization. Nike makes an impact on consumers, buyers, suppliers,
workers and communities around the globe. All of these groups are stakeholders and
vital to the company's success. According to nikebiz.com, Nike employs more than
800,000 workers. As stakeholders, these employees are valuable and many of these
employees around the world are young women, many of who are the first in their family
to work in a formal economy. (nikebiz.com). This could create a significant social change
for these families and their communities, so if the workers aren't happy, this could hurt
Nike's reputation and go against some of the goals of their business such as making a
positive impact around the world.
Therefore, it is critical for Nike to keep in constant contact with their stakeholders
around the world. Nike’s main concerns involve keeping their stakeholders happy and
maintaining a positive image and reputation in society. They are not as concerned about
the issue of money because without their stakeholders, the organization wouldn’t be
able to achieve their goals.
Key Relationship Sources:
Shareholder resolutions
Stakeholder concerns/complaints
Threats to their reputation
Potential boycotts
During a crisis situation, it is key that Nike understands which of their audiences or
stakeholders are being affected the most, and how this is affecting the organization as a
whole. Because they are a global company, it is also important to understand where the
situation is occurring and how this affects their company worldwide.
In Appendix B find Kiss chart to further illustrate the audience Nike has to address.
Issues Associated with Nike Inc.
21. 21
Their endorsement deal with Jameis Winston. Erica Kinsman has filed a civil sexual
assault suit against Winston and his character has been in question before. This is
an issue for Nike because this would misrepresent their company if Winston is
found guilty or continues to have character issues. This cold lead to shareholders
and stakeholders becoming upset and cutting ties with the company. This could
lead to people boycotting products because they endorse an athlete with such
issues.
Nike is close to taking over NBA apparel rights from Adidas. This is a good thing
for the company because it will allow them to grow and expand in the United
States as well as overseas because the NBA wants to grow overseas as well. This
could be an issue if something goes wrong because Nike will now have such a
large organization tied to it. If issues occur NBA itself and fans could boycott the
company.
There was a strike in Vietnam from workers at a Nike and Adidas factory, which
ended when the government agreed to meet their demands on retirement
payouts. There were thousands involved, and although the protest was peaceful
and didn’t cause any damages, this could go back to Nike’s mistreatment of
employers and hurt their reputation. It is unclear whether it was Nike or the
government of Vietnam that the workers wee unhappy with.
Some key issues Nike is concerned about
Freedom of Association: An education program that they want to take place in all
contract factories. Challenges are the legal framework from country to country,
Union issues, educating contract manufacturers who may be poorly educated in
various countries.
Getting a human resource management program implemented in all contract
factories.
Improving working conditions in their global supply chain and industry as a
whole.
Having a bad carbon footprint because they have been working to be eco-
friendly
Categories to consider in a crisis situation
Footwear
Apparel
Equipment
Employees
Consumers
22. 22
Buyers
Suppliers
Communities
Factories
Other stakeholders
Possible crises that could happen to Nike
(Don’t know if we need this in our crisis management plan, just random examples
from serious to not so serious)
Athletes don’t want to wear our shoes or endorse us any more
Equipment failure leads to no more production or less production
Price of shoes causes people to be upset and cause issues such as people
thinking we are fooling them into buying our product
Performance of shoes decreases
Shoes causes injury to customer somehow
Footwear is made of materials that are harmful to environment and we are trying
to be environmentally friendly
Athletes stop wearing and endorsing Nike
Equipment failure leads to no more production or less production
Price issues again
Clothes constantly ripping or tearing
Clothes causing some reaction or disease from the factories
Apparel is made of materials that are harmful to environment and we are trying
to be environmentally friendly
Equipment failure causes no production
Equipment doesn’t last very long
Equipment is made of materials that are harmful to environment and we are
trying to be environmentally friendly
Nike equipment is no longer being used
Mistreatment of employees
Not paying employees
Employee death due to factory conditions or abuse by employer
Consumers/Buyers find better quality products for cheaper or boycott products
Stakeholders/Shareholders stop funding company
Harassment and discrimination in the work environment
Business partner, agents, distributors, consultants, representatives,
attorneys, independent contractors, external temporary workers and suppliers do
not follow Nike’s ethical expectations
23. 23
Labor and employment rights of all employees could impact the environment, a
safe and healthy work place, and the health and wellbeing of employees.
Nike product is not designed, produced or serviced to Nike standards and do not
comply with applicable regulations and contractual obligations
Export or importing does not follow regulations and requirements
Nike Information, Ideas, and intellectual property is disclosed to the public
Accurate records and reports are not properly completed
Assets are wasted or abused
Personal information of employees are disclosed
Fraud and theft
Any action or relationship that could conflict with or appear to conflict with the
interests of Nike
The appearance that business decisions are based on improper payments, favors,
gifts, or hospitality
24. 24
INCIDENT REPORT FORM FOR STORE
This report is to be used in all cases that emergency personnel has been
summoned or when further action needs to be taken following an incident at a
Nike store.
Date of Crisis: ______________ Time of Crisis: __________ Location (store number)
of Crisis: _____________
Person(s)
Involved:_____________________________________________________________________________
Addresses: _________________________________________________ Phone
(ext.):____________________
CMT Member Contacted: _______________________________________________ Date:
__________________
Details of Incident (Who, What, When, How, Observed Behaviors, Refrain from
Opinions)
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
__________________________________________
Was Emergency Personnel called? ______ Yes _______ No Were there
injuries? ______ Yes ______ No
Injuries_______________________________________________________________________________
______________________________________________________________________________________
_______________
If YES, was an ambulance called? ______ Yes _______ No
Were there instructions from EMT/Emergency personnel? _____ Yes _____ No
Reported by: _____________________________________________
Phone:_____________________
Signature:
____________________________________________________________________________
Address: ____________________________________________________________________
Department: _________________________________________________________________
Route to:
_____ Chief Executive Officer, Rory Mileham
_____ Safety & Security, Lindsay Briquelet
25. 25
_____ Public Relations, Gianna Torres
_____ Legal Counsel, Sarah Frelich
_____ Operations, Tyler Otto
_____ Victim Manager, Keifer Sykes
_____ Other(s) __________________________________
INCIDENT REPORT FORM FOR FACTORY
This report is to be used in all cases that emergency personnel has been
summoned or when further action needs to be taken following an incident at a
Nike factory.
Date of Crisis: _____________ Time of Crisis: __________ Location (factory number)
of Crisis: _____________
Name of Employee: _______________________________ Job Position:
_________________________________
26. 26
Address: _________________________________________________ Phone
(ext.):____________________
CMT Member Contacted: _______________________________________________ Date:
__________________
Details of Incident (Who, What, When, How, Observed Behaviors, Refrain from
Opinions)
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
__________________________________________
Was Emergency Personnel called? ______ Yes _______ No Were there
injuries? ______ Yes ______ No
Injuries_______________________________________________________________________________
______________________________________________________________________________________
_______________
If YES, was an ambulance called? ______ Yes _______ No
Were there instructions from EMT/Emergency personnel? _____ Yes _____ No
Reported by: _____________________________________________
Phone:_____________________
Signature:
____________________________________________________________________________
Address: ____________________________________________________________________
Department: _________________________________________________________________
Route to:
_____ Chief Executive Officer, Rory Mileham
_____ Safety & Security, Lindsay Briquelet
_____ Public Relations, Gianna Torres
_____ Legal Counsel, Sarah Frelich
_____ Operations, Tyler Otto
_____ Victim Manager, Keifer Sykes
_____ Other(s) __________________________________
27. 27
Creating Strategies and Tactics:
During a crisis, Nike knows that it is important to remember that creating
the necessary strategies and tactics is key when it comes to addressing the
crisis. It is also important to remember who the audience is, and wants to
make sure the core values of Nike are always at the forefront of the
message they are sending out.
Nike Core Value Message:
______________________________________________________________________________________
______________________________________________________________________________________
_________________
Audiences:
Primary: __________________________
28. 28
Secondary: _______________________
Others to note: ____________________
Strategies:
______________________________________________________________________________________
______________________________________________________________________________________
_________________
Tactics:
______________________________________________________________________________________
______________________________________________________________________________________
_________________
Strategic Options for Containing a Crisis
When a crisis occurs, Nike Inc. needs to make sure it:
Quickly Responds
Be honest, be forward about what you don’t know yet, but are working on
knowing
Prioritize what is most important
Always express sympathy
The following table, shows strategic options that will assist Nike Inc. to deal with
a crisis positively
Full Apology and Corrective Action Opening admitting that the fault is of
Nike Inc.
Attack The Accuser Deals with confronting the originator of
the crisis
Ingratiation (Remind audiences of
the good Carnival Cruise has done in
the past
Remind the audiences of everything
that is good about Nike Inc. from the
top shoe design, to the top athletes
they endorse
29. 29
Justification – Minimize or no
Serious Problems
Minimizing the situation and giving
reasons as to why it occurred.
Excuse – “no control,” or “no bad
intentions”
Denying that Nike Inc. has done any
wrong doing, or that nothing that is
occurring is qualified as a “crisis”
Denial – No Crisis Exists Not acknowledging that a crisis is
occurring
Message Strategy
Strategic
Categories
Strategic Options Costs Benefits
Who Audience involved
Sender of
Message
Attack the
Messenger
What Apologize
Corrective Action
Make an Excuse
When Focus on the
future
Where Does the location
30. 30
of the ship cause a
problem
Why What are the
motives of the
message
Question why it’s
a crisis
So What Why is this
important
Is the message
strategy going to
have the desired
affect?
Strategic Options
Message Strategy:
What is the message we are wanting to send to our audience
Channel Strategy:
How should we send out the message?
Does the channel change when we trying to obtain certain objectives?
Which channels are best suited for Nike?
Process Strategy:
In what order should the audiences be notified?
In what order do we communicate?
In what order do we communicate events?
Strategic Process:
31. 31
Post Crisis
Format
Please answer
the following
based on how each crisis situation has been handled.
Please rank based on a 1-10 scale with one being very ineffective and 10 being
very effective.
1. How effective was the crisis situation handled?
1 2 3 4 5 6 7 8 9 10
2. How effective was the chain on communication?
Determine the costs and
benefits of all options when
dealing with a crisis involving
Nike.
Which option are we going to select?
Develop the message.
Stay true to the smessage
Be prepared for the push
back, not everyone is going to
agree with what you are doing
or saying.
Practice your strategy. Make sure to have
assigned times to practice for possible crisis.
32. 32
1 2 3 4 5 6 7 8 9 10
3. How effective was the time management team?
1 2 3 4 5 6 7 8 9 10
4. Was the crisis situation was handled in a timely manner?
1 2 3 4 5 6 7 8 9 10
5. How effective was the follow up crisis communication?
1 2 3 4 5 6 7 8 9 10
Please provide feedback for the following questions.
6. What changes would you make to the crisis communication plan?
7. Is there any additional information that you wish you could have been
provided with in during the crisis?
8. How did you receive information about the crisis and was it effective?
Appendix A
Facts on Nike
1.Nike has eight key categories: Running, Basketball, Football (Soccer), Men’s
Training, Women’s Training, Action Sports, Sportswear, and Golf
2. Nike markets products for kids
3. In 2014 Nike made more than $27.7 million in revenue
4. Nike is the leading supplier of athletic shoes and apparel
5. Nike is headquartered near Beverton, Oregon
6. Nike employees 44,000 people worldwide
7. The Swoosh logo was designed in 1971
8. The Swoosh was designed by Carolyn Davidson
9. In June 1972 the first running shoes with the Swoosh came out
10. In 1980 Nike attained a 50% market share in the U.S. athletic shoe market
33. 33
11. Nike introduced the Air Jordan in 1985
12. Nike sells in 160 countries
13. Nike is a public organization
14. Nike was founded by Bill Bowerman and Phil Knight
15. The president of Nike is Mark Parker
16. Nike was founded as Blue Ribbon Sports in 1964
17. Nike officially became Nike in 1971
18. Bill Bowerman was Phil Knights track coach
19. Nike paid $309 million to acquire Converse
20. Nike has offices in 46 countries
21. Nike has contracted more than 700 shops worldwide
22. Nike’s Slogan Originated From a Convicted Killer
23. Footwear Revenues Account for 58.3% of Total Revenues.
24.The Nike Swoosh Was Designed for $35
25. Revenues from “Men’s Training” are more than double that of “Women’s
Training”
26. Nike Owns Converse and Hurley International
27. Nearly 15% of Revenues Come from Emerging Markets
28. No Single Customer Accounted for more than 10% of 2014 Net Sale.
29. Nike first went under the name “Blue Ribbon Sports”.
30. The name “Nike” comes from the Greek goddess of victory.
31. Ilie Nastase, a tennis star, was the first pro athlete to sign with Nike.
32. Nike has many marketing names, such as Nike Golf, Nike Pro, Nike+, Air
Jordan, Nike Skateboarding, Team Starter, and subsidiaries like Bauer, Cole Haan,
Hurley International, Umbro and Converse.
33. Nike has factories in 45 countries around the world.
34. Nike’s first self-designed product was based on Bowerman’s “waffle” design in
which the sole of the shoe was made by the pattern of a waffle iron.
35. Nike has a history of using inhumane labor practices to produce their
products.
36. Nike has acknowledged these labor problems in the past and has promised to
change.
37. Nike factories violated local minimum wage laws, payed subsistence wages
and illegally forced massive overtime.
38. Nike factories subjected workers (90% young women and girls) to criminally
dangerous, brutal sweatshops.
34. 34
39. Nike supported military dictatorships that crush labor unions and worker
protest.
40. Nike FY06 revenues were approximately $15 billion. They are the world’s
leading designer, marketer and distributor of authentic
41. athletic footwear, apparel, equipment and accessories for a wide variety of
sports and fitness activities.
42. Nike produces approximately 50,000 product styles per year.
43. Nike sells products in more than 160 countries.
44. Nike has approximately 28,000 employees worldwide.
45. Almost 800,000 workers are employed in contracted factories around the
world making Nike-branded products.
46. Nike operations (owned and not directly owned) contribute to approximately
1.36 million tonnes of CO2 annually.
47. The company that became Nike was an importer and distributor of Japanese
track shoes made by Onitsuka Company
48. Workers at a Nike plant in Sukabumi say supervisors frequently throw shoes
at them, slap them in the face, kick them and call them dogs and pigs.
49. Nike admits such abuse has occurred but there was little they could do to
stop it.
50. The 10,000 employees at the Pou Chen plant make around 50 cents an hour.
51. Nike has fired employees for wrongful reasons such as taking sick leave even
though a doctor's note was given.
52. Nike has over 1,000 overseas factories.
53. Jeff Johnson was the first employee of Nike and also came up with the brand
name.
54. Phil Knight wanted to name the brand Dimension 6.
55. The "Just Do It" campaign was first launched in 1988.
56.”The Just Do It” campaign is now enshrined at the Smithsonian National
Museum.
57. The “Just Do It” slogan was Inspired by serial killer Gary Gilmore.
Before Gary Gilmore was executed in 1977, he said "Let's do it."
Carolyn Davidson, a Portland State University student, created the Swoosh for
$35
58. Davidson was given a diamond swoosh ring as well as an unknown amount of
Nike stock in addition to the 35$.
59. Foot Locker stopped carrying high end Nikes in 2003.
60. Foot Locker was unhappy with the high prices of Nike's products.
61. The original Nike Sports Research facility was opened in Exeter, N.H. no
Beaverton, Oregon.
35. 35
62. Phil Knight came up with the idea for a sneaker company while he was writing
a paper for college.
63.The first shoe to have the swoosh was a soccer cleat.
64. Nike has actually made sneakers in the USA back in the early days of the
company, now they are made overseas.
65. Geoff Petrie was one of the first NBA players to wear Nike, and the first Nike
Basketball sneakers, the 66. Blazer, was named for his team.
67. Phil Knight stepped down as president from 1983-84.
68. The initial foundation of Nike golf was created by Bob Wood in 1984 and
wasn't launched when Tiger
69. Woods signed to Nike in 1996.
70. The Beatles first song in a commercial was "Revolution No. 9" and was for the
Nike Air Max.
71. The first Nike retail store was actually opened in California.
72.Nike is the only footwear brand to become the leader of the industry, lose its
position, and then gain it back.
73. Michael Jordan didn't want to sign with Nike, but his parents made him meet
with the brand.
74. Mark Parker is the current CEO of Nike.
75. The first Nike shoes were made inside a waffle iron.
76. The Nike name comes from the Greek goddess of victory, and it’s pronounced
"ny'-kee." Nike's first employee, Jeff Johnson, came up with the name.
77. Romanian tennis professional Ilie Nastase, "the Bucharest Buffoon," was the
first athlete to sign an endorsement contract with Nike, in 1972.
78. Nike’s 1987 ad for the Air Max shoes was soundtracked by The Beatles’
“Revolution”.
79. Globally 88% of Nike Brand apparel contains at least 5% organic cotton.
80. There are 48,000 Nike, Inc. employees worldwide.
81. Nike is clothing, footwear, and equipment supplier based in the United
States.
82. The "Swoosh" logo was a design created in 1971 by Carolyn Davidson, a
graphic design student at Portland State University.
83. Nike entered the golf game in 1986, just a year after introducing the Air
Jordan basketball sneaker.
84. Footwear Revenues Account for 58.3% of Total Revenues.
85. No Single Customer Accounted for more than 10% of 2014 Net Sales.
86. Oregon athletes test the latest Nike gear and Oregon coaches give Nike
designers feedback about how products perform.
36. 36
Appendix B
KISS CHART
Stakeholder Know Infer So What to Do So What Not to
Do
Investors
/Shareholders
-They have put
faith into Nike
-Chose to invest
in Nike
-Want Nike to be
successful
-They want the
best for Nike
-They care about
what happens to
the company
- They will
express their
concerns
-Maintain
positive
relationship
- Keep them
informed of
major company
changes
- Include them in
important
decisions/meetin
-Give them no
information
during a crisis
-Ignore them
37. 37
gs
- Address their
concerns ASAP
- Keep them
informed on crisis
situations and the
steps being taken
Employees -Chose to work
and continue to
work for Nike
-They enjoy their
job
-They want Nike
to grow and be
successful
- They rely on
their jobs for an
income source
- Want job
security
-Listen to any
concerns or
suggestions they
have
- Treat
employees with
respect and
maintain a
relationship with
all of them
- Make sure they
are informed
-Consider them
unimportant in a
crisis
-Avoid utilizing
their skills
- Mistreat them
Consumers -They like the
products/services
that Nike has to
offer and prefer
them over
competitors
-They are loyal to
Nike
-They will
continue to
support the
company
- They pay
attention to what
is happening
surrounding the
company
-Keep providing
high quality
products
-Show them how
important they
are to the
company
- Address their
major concerns
- Inform them
during a crisis
-Change our
products
completely
-Ignore them in
time of a crisis
Government -Regulate Nike’s
actions
-Keep an eye on
the actions of the
company
-Acknowledge
and follow their
standards
- Ignore their
rules
Media -Media wants a
story, good or
bad
-They will take
any necessary
measures to get a
-Inform them in a
timely manner
with accurate
-Respond to their
questions with
“no comment”
38. 38
Acknowledgements
-----------------------------------------
Rory Mileham, CEO
-------------------------------------------
Gianna Torres, Public Relations Director
---------------------------------------------
Sarah Frelich, Head Legal Consultant
----------------------------------------------
story information
Community/
General Public
-They are
possible
consumers and
may choose to
purchase our
products
-They want
quality products
from a company
with a positive
reputation
- They are a
primary audience
-Provide them
with quality
products
- Show them our
positive image
-Disregard their
wants/needs
-Make our
products
unavailable to
certain people
-Deny that
anything bad
could happen to
our company
39. 39
Lindsay Briquelet, Head of Safety and Security
---------------------------------------------
Tyler Otto, Operations Manager
