Nike Inc. Corporate Overview

NIKE INC.

CORPORATE OVERVIEW

CORPORATE DEFINITION

CORPORATE MISSION

The overriding objective of Nike, Inc. is to maintain leadership in the retail market they are in and also lead their consumers with innovative, quality and sustainable products and above else the passion for sports.  The company is changing to adapt to new trends and new markets, but the objectives remain the same.  

Nike proposes to reach its objectives in the following ways:

• Enhanced Appeal and Value of Products through continued product innovation, change and continuous improvement, and increased brand awareness.

• Consumer focus by providing excellent service to customers, and offering products of high quality.

• Worldwide availability of products providing powerful distribution.

• Corporate responsibility defined by a sense of community, a regard for the environment and a commitment to integrity and diversity for Nike employees and the contract workers who make their product.  

• Challenge of environmental sustainability through comprehensive product design, materials sourcing and manufacturing initiatives.

        Nike also has some implicit objectives which are not explicitly stated by the company, but which are evident from readings about the corporation.  They include the following:

• Let a new generation of management lead the company into the 21st century with innovation and growth.  As said by Phil Knight in the annual report, “40% of our vice-presidents are new; we bring in talented newcomers, push a very good bench along a little faster than planned, and weave it all into a strong culture”. (1)

• Replicate the success of basketball in other sports branches such as golf, soccer and hockey.  Nike has signed contracts with Tiger Woods, Brazilian soccer team and have standalone business units for these branches. (8)

PRESENT BUSINESS STRATEGY

Nike Inc. has implemented an overall strategy of diversification in its operations and globalization.  This diversification is achieved through continuous product development, opening up large retail stores throughout the country and global expansion.  

The enlarging success of Nike through subsidiaries, vigorous marketing, and innovative product development, was introduced to global market place in 1994.  (2)

Nike is a world-class leader in design, marketing, and distributing and seeks to meet the needs of their customers and markets as well as maintain world-class performance.  Nike sells athletic shoes, accessories, and clothing for men, women and children.  Including the international markets the revenues have been sky rocketing in the past three years to highs of $9.2 billion.  Nike also has about 50% market share of the shoe and apparel market in the US. The company wants to keep the high revenues and market share and also get into every branch of sports as they can with their products and the way they present those products, their brand name.

        Nike is planning to continue it’s operations in Americas, Europe and Asia, with a better understanding of where they stand with their business right now.  

ORGANIZATIONAL STRUCTURE

Philip Knight thought a lot about the culture and structure of his new company, eventually named Nike after the Greek goddess of victory. He wanted his employees to exhibit the deep corporate loyalty he had seen in Japan, and he wanted them to feel the adrenaline rush of athletes performing at the highest level. He also tried his best to re-create the towel-snapping camaraderie of the locker room. Meetings of key Nike managers were known as "buttfaces," top executives used nicknames like "Dragon Lady" and "Rolling Thunder," and a tequila fountain was standard at large sales conferences. No matter how grand Nike would become, declared Knight, he hoped always to be surrounded by "magnificent bastards and wonderful goons."  (Annual Meeting) (3)

The organizational structure in Nike Inc. is just like any other big firm in the industry.  Being a public company, Nike has to have its Board of Directors.  The Board of Directors has different sub-committees:

  (1) Member - Executive Committee

  (2) Member - Audit Committee

  (3) Member - Finance Committee

  (4) Member - Personnel Committee

  (5) Member - Compensation Plan Subcommittee

        Each of these committees is responsible of their part in managing the company and is supposed to keep the information flow going to create and integration between all the departments nationally and internationally.