Management Principles: Nike Corporation

by Marvel Bialaszewski, May 2015

2400 words

8 pages

essay

1. Introduction

History

Nike is a major US footwear, clothing and sportswear supplier based in Beaverton, Oregon. The company operates in more than 160 countries and employs over 44000 people across six continents. Nike’s revenue totalled $20.862 billion in 2011 with total equity of $9.843 billion. Today Nike is considered the world’s leading supplier of athletic shoes and apparel and one of the world’s most famous and strongest brands.

The company was founded in 1964 as a footwear distributor Blue Ribbon Sports by Bill Bowerman (track and field coach at the University of Oregon) and Phil Knight (middle-distance runner from Portland). Initially, the company operated as a distributor for Onitsuka Tiger, the Japanese shoe maker. Most of the sales were made out of Knight’s automobile. In 1967 the first retail store was opened.

In 1972 the jump was made to manufacturing company’s own brand of athletic shoes and the “Swoosh” brand mark was created. The first self-manufactured company’s shoes used Bowerman’s “waffle” design. They became extremely popular among the runners: they had special waffle-type nubs for traction and at the same time they were lighter than traditional athletic shoes. In 1979 Nike Air technology was successfully launched and by 1980 the company already attained 50% of national athletic shoe market. In 1982 Nike started to cooperate with Portland-based advertising agency Wieden+Kennedy. Many successful advertising campaigns were mutually launched and even Nike’s famous slogan “Just Do It” was designed by agency’s co-founder Dan Wieden. Throughout the 1980s, the company expanded its product lines and went global, encompassing new regions and sports.

By November 2008 Nike already owned four major subsidiaries: Hurley International, Cole Haan, Umbro and Converse Inc. The company’s CEO Mark Parker said: “At NIKE, Inc. we run a complete offense, and it’s based on a core commitment to innovation. That’s how we stay opportunistic, serve the athlete, reward our shareholders, and continue to lead our industry”.

The Purpose of This Research

The purpose of this paper is to research and analyze the theories of management that apply to Nike Corporation. The emphasis is made on company’s strategic planning, organization peculiarities, leadership, management, innovation and change. Among the main tasks are: defining company’s core competencies, inner strengths and weaknesses, opportunities and threats that the company’s environment poses; identifying how the company is organized, showing its structure and decision-making process; defining the company’s leadership style and communication environment; analyzing managerial controls and the role of Information Technology within the company; describing innovative management processes and corporate responsibility issues.

2. Strategic Planning

The mission of Nike corporation is: to bring inspiration and innovation to every athlete in the world.

Company’s main goal (vision) is to carry on its founder’s legacy of innovative thinking, whether to develop products that help athletes of every level of ability reach their potential, or to create business opportunities that set Nike apart from the competition and provide value for its shareholders. The company’s current financial goal is to grow sales to $27-billion up to the year 2015.

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