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Nike Crisis Management

Nike has assembled a crisis management team to respond to potential issues and crises. The team includes the CEO, who will lead social media responses. The public relations director will oversee campaigns and media outreach. The legal consultant will ensure compliance. The head of safety will monitor factory conditions and respond to emergencies. The operations manager will maintain communication between facilities worldwide to ensure smooth operations. The team is prepared to swiftly address any concerns regarding Nike.

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1 Nike Crisis Management Plan Team Black Sheep Rory Mileham, Gianna Torres, Sarah Frelich, Lindsay Briquelet and Tyler Otto
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 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 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.”
5 Crisis Communication Team Rory Mileham
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 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 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 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 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 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
12 Sands Capital Management LLC 23,696,065 shares 1101 Wilson Blvd #2300 Arlington, VA 22209 (703) 562-4000
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 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 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 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 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 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
19 Safety/Accident Records Ethical Climate Surveys Financial Audits Liability Workers Comp. Product Tamering Risk Audits Sexual Harrassment Nike Pre-Crisis Planning – Audience Analysis
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  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  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  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 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 _____ 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 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 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  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 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 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 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 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 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 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 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 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 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 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 Lindsay Briquelet, Head of Safety and Security --------------------------------------------- Tyler Otto, Operations Manager

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Nike Crisis Management

  • 1.
    1 Nike Crisis Management Plan TeamBlack Sheep Rory Mileham, Gianna Torres, Sarah Frelich, Lindsay Briquelet and Tyler Otto
  • 2.
    2 Table Of Contents Letterfrom 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 theCEO 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 forbeing 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.”
  • 5.
  • 6.
    6 Chief Executive Officerand 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 April21, 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.edu920-850-3668 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 LegalConsultant 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 GlobalAdvisors 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 ofPublic 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
  • 12.
    12 Sands Capital ManagementLLC 23,696,065 shares 1101 Wilson Blvd #2300 Arlington, VA 22209 (703) 562-4000
  • 13.
    13 Crisis Control Center PrimaryLocation 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 NikeCrisis 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 InCrisis 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 Aboveis 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  Businessplans  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
  • 19.
    19 Safety/Accident Records Ethical ClimateSurveys Financial Audits Liability Workers Comp. Product Tamering Risk Audits Sexual Harrassment Nike Pre-Crisis Planning – Audience Analysis
  • 20.
    20 Nike is moreconcerned 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 endorsementdeal 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 andemployment 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 FORMFOR 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.):____________________ CMTMember 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 andTactics: 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 – Minimizeor 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 shipcause 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 thefollowing 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 34 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 introducedthe 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 supportedmilitary 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 Knightcame 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 StakeholderKnow 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 concernsASAP - 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 ------------------------------------------- GiannaTorres, 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, Headof Safety and Security --------------------------------------------- Tyler Otto, Operations Manager