assnmnt on nike

7/31/2019 Assnmnt on Nike

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1.1. Background of the Company:

Nike, Inc. is a major publicly traded clothing, footwear, sportswear, and equipment supplier

based in the United States. The company is headquartered near Beaverton, Oregon, in the

Portland metropolitan area. It is the world's leading supplier of athletic shoes and apparel[3]

and a major manufacturer ofsports equipment, with revenue in excess of US$18.6 billion. it

employed more than 30,000 people worldwide. Nike and Precision Castparts are the only

Fortune 500 companies headquartered in the state of Oregon, according to The Oregonian.

The company was founded on January 25, 1964 as Blue Ribbon Sports by Bill Bowerman and

Philip Knight,[1] and officially became Nike, Inc. on May 30, 1978. The company takes its

name fromNike (Greek, pronounced [n k ] ), the Greek goddess of victory. Nike

markets its products under its own brand, as well as Nike Golf, Nike Pro, Nike+, Air Jordan,

Nike Skateboarding, and subsidiaries including Cole Haan, Hurley International, Umbro and

Converse. Nike also owned Bauer Hockey (later renamed Nike Bauer) between 1995 and

2008.[4] In addition to manufacturing sportswear and equipment, the company operates retail

stores under the Niketown name. Nike sponsors many high profile athletes and sports teams

around the world, with the highly recognized trademarks of "Just do it" and the Swoosh logo.

1.2. Corporate Objectives:

1.3. Philosophies on International Marketing:

1.4. Global Coverage of the Company:

Headquarters

Nike's world headquarters are surrounded by the city of Beaverton, but are within

unincorporated Washington County. The city attempted to forcibly annex Nike's

headquarters, which led to a lawsuit by Nike, and lobbying by the company that ultimately

ended in Oregon Senate Bill 887 of 2005. Under that bill's terms, Beaverton is specifically

barred from forcibly annexing the land that Nike and Columbia Sportswear occupy in

Washington County for 35 years, while Electro Scientific Industries and Tektronix receive the

same protection for 30 years.[23

Manufacturing

Nike has contracted with more than 700 shops around the world and has offices located in 45

countries outside the United States.[24] Most of the factories are located in Asia, including
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Indonesia, China, Taiwan, India[25], Thailand, Vietnam, Pakistan, Philippines, and Malaysia.

[26] Nike is hesitant to disclose information about the contract companies it works with.

However, due to harsh criticism from some organizations like CorpWatch, Nike has disclosed

information about its contract factories in its Corporate Governance Report

1.5. Production Facilities:

Sponsorship

Main article: List of Nike sponsorships

Nike pays top athletes in many sports to use their products and promote and advertise their

technology and design.

Nike's first professional athlete endorser was Romanian tennis playerIlie Nstase. The first

track endorser was distance runnerSteve Prefontaine. Prefontaine was the prized pupil of the

company's co-founder, Bill Bowerman, while he coached at the University of Oregon. Today,

the Steve Prefontaine Building is named in his honor at Nike's corporate headquarters.

Besides Prefontaine, Nike has also sponsored many other successful track and field athletes

over the years, such as Carl Lewis, Jackie Joyner-Kersee and Sebastian Coe. However, it is

the signing of basketball player Michael Jordan in 1984, with his subsequent promotion of

Nike over the course of his storied career, with Spike Lee as Mars Blackmon, that proved to

be one of the biggest boosts to Nike's publicity and sales.

During the past 20 years especially, Nike has been one of the major clothing and footwear

sponsors for leading tennis players. Some of the more successful tennis players currently or

formerly sponsored include: James Blake,Jim Courier, Roger Federer, Lleyton Hewitt, Juan

Martn del Potro, Andre Agassi, Rafael Nadal, Pete Sampras, Marion Bartoli, Lindsay

Davenport, Daniela Hantuchov, Mary Pierce, Maria Sharapova, and Serena Williams.

Nike was the official kit sponsor for the Indian cricket team for five years, from 2006 until the

end of 2010. Nike beat Adidas and Puma by bidding US$43 million.[49][50]

Nike sponsors some of the leading clubs in world football, including the national teams of

Serbia,India,France,Brazil, Portugal, theNetherlands, the United States, and Malaysia.

Some of the world's top golf players are sponsored by Nike, among them Tiger Woods,

Stewart Cink, Lucas Glover, Michelle Wie, Trevor Immelman, and Paul Casey.

Nike also sponsors various minor events including Hoop It Up (high school basketball) and

The Golden West Invitational (high school track and field). Nike uses web sites as a
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promotional tool to cover these events. Nike also has several websites for individual sports,

including nikebasketball.com, nikefootball.com, and nikerunning.com.

Nike is a major sponsor of athletic programs at Penn State and has decided not to abandon

that relationship in the wake of the Penn State sex abuse scandal.

1.6. Product mix and Product line:

Nike produces a wide range of sports equipment. Their first products were track running

shoes. They currently also make shoes, jerseys, shorts, baselayers, etc. for a wide range of

sports, including track and field, baseball, ice hockey, tennis, association football (soccer),

lacrosse, basketball, and cricket.Nike Air Max is a line of shoes first released by Nike, Inc. in

1987. The most recent additions to their line are the Nike 6.0, Nike NYX, andNike SB shoes,

designed for skateboarding. Nike has recently introduced cricket shoes called Air Zoom

Yorker, designed to be 30% lighter than their competitors'. [17] In 2008, Nike introduced the

Air Jordan XX3, a high-performance basketball shoe designed with the environment in mind.

Nike sells an assortment of products, including shoes and apparel for sports activities like

association football,[18] basketball, running, combat sports, tennis, American football,

athletics, golf, and cross training for men, women, and children. Nike also sells shoes for

outdoor activities such as tennis, golf, skateboarding, association football, baseball, American

football, cycling, volleyball, wrestling,cheerleading, aquatic activities, auto racing, and other

athletic and recreational uses. Nike is well known and popular in youth culture, chav culture

and hip hop culture for their supplying of urban fashion clothing. Nike recently teamed up

with Apple Inc. to produce theNike+ product that monitors a runner's performance via a radio

device in the shoe that links to the iPod nano. While the product generates useful statistics, it

has been criticized by researchers who were able to identify users' RFID devices from 60 feet

(18 m) away using small, concealable intelligence motes in a wireless sensor network.[19][20]

In 2004, Nike launched the SPARQ Training Program/Division.[citation needed]

Some of Nike's newest shoes contain Flywire and Lunarlite Foam to reduce weight.[21]

On July 15, 2009, the Nike+ Sports Band was released in stores. The product records distance

run and calories expended, keeps time, and also gives runners new programs online they

could try running.[clarification needed]
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1.7. Brands that are standardized and that is localized in each product line:

1.8. Political Barrier:

Human rights concerns

Sweatshops

Nike has been criticized for contracting with factories (known as Nike sweatshops) in

countries such as China, Vietnam, Indonesia and Mexico. Vietnam Labor Watch, an activist

group, has documented that factories contracted by Nike have violated minimum wage and

overtime laws in Vietnam as late as 1996, although Nike claims that this practice has been

stopped.[27] The company has been subject to much critical coverage of the often poor working

conditions and exploitation of cheap overseas labor employed in the free trade zones where

their goods are typically manufactured. Sources for this criticism includeNaomi Klein's book

No Logo and Michael Moore documentaries.

During the 1990s, Nike faced criticism for the use ofchild laborin Cambodia and Pakistan in

factories it contracted to manufacture soccer balls. Although Nike took action to curb or at

least reduce the practice, they continue to contract their production to companies that operate

in areas where inadequate regulation and monitoring make it hard to ensure that child labor is

not being used.[28]

In 2001, a BBC documentary uncovered occurrences of child labor and poor working

conditions in a Cambodian factory used by Nike.[29] The documentary focused on six girls,

who all worked seven days a week, often 16 hours a day.

Campaigns have been taken up by many colleges and universities, especially anti-

globalisation groups, as well as several anti-sweatshop groups such as the United Students

Against Sweatshops.[30] Despite these campaigns, however, Nike's annual revenues have

increased from US$6.4 billion in 1996 to nearly US$17 billion in 2007, according to the

company's annual reports.

A July 2008 investigation by Australian Channel 7 News found a large number of cases

involving forced labour in one of the largest Nike apparel factories. The factory located in

Malaysia was filmed by an undercover crew who found instances of squalid living conditions

and forced labour. Nike have since stated that they will take corrective action to ensure the

abuse does not continue.[31]
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As of July 2011, Nike stated that two-thirds of its factories producing Converse products still

do not meet the company's standards for worker treatment. A July 2011 Associated Press

article stated that employees at the company's plants in Indonesia reported constant abuse

from supervisors

1.9. Social Concerns:

Advertising

In 1982, Nike aired its first national television ads, created by newly formed ad agency

Wieden+Kennedy (W+K), during the broadcast of the New York Marathon. This was the

beginning of a successful partnership between Nike and W+K that remains intact today. The

Cannes Advertising Festival has named Nike its Advertiser of the Year in 1994 and 2003,

making it the first and only company to receive that honor twice.[41]

Nike also has earned the Emmy Award for best commercial twice since the award was first

created in the 1990s. The first was for "The Morning After," a satirical look at what a runner

might face on the morning of January 1, 2000 if every dire prediction about the Y2K problem

came to fruition.[42]The second was for a 2002 spot called "Move," which featured a series of

famous and everyday athletes in a variety of athletic pursuits.[43]

In addition to garnering awards, however, Nike advertising has generated its fair share of

controversy.

Beatles song

Nike was criticized for its use of the Beatles song "Revolution" in a 1987 commercial against

the wishes of Apple Records, the Beatles' recording company. Nike paid US$250,000 to

Capitol Records Inc., which held the North American licensing rights to the recordings, for

the right to use the Beatles' rendition for a year.

Apple sued Nike Inc., Capitol Records Inc., EMI Records Inc. and Wieden+Kennedy for

$15 million.[44] Capitol-EMI countered by saying the lawsuit was "groundless" because

Capitol had licensed the use of "Revolution" with the "active support and encouragement of

Yoko Ono Lennon, a shareholder and director of Apple."

According to a November 9, 1989 article in theLos Angeles Daily News, "a tangle of lawsuits

between the Beatles and their American and British record companies has been settled." One

condition of the out-of-court settlement was that terms of the agreement would be kept secret.

The settlement was reached among the three parties involved: surviving Beatles George

Harrison, Paul McCartney,Ringo Starr; Yoko Ono; and Apple, EMI and Capitol Records. A
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spokesman for Yoko Ono noted, "It's such a confusing myriad of issues that even people who

have been close to the principals have a difficult time grasping it. Attorneys on both sides of

the Atlantic have probably put their children through college on this."

Nike discontinued airing ads featuring "Revolution" in March 1988. Yoko Ono later gave

permission to Nike to use John Lennon's "Instant Karma" in another advertisement.

Minor Threat advertisement

In late June 2005, Nike received criticism from Ian MacKaye, owner ofDischord Records,

guitarist/vocalist forFugazi and The Evens, and front man of the defunct punk band Minor

Threat, for appropriating imagery and text from Minor Threat's 1981 self-titled album's cover

art in a flyer promoting Nike Skateboarding's 2005 East Coast demo tour.

On June 27, Nike Skateboarding's website issued an apology to Dischord, Minor Threat, and

fans of both and announced that they have tried to remove and dispose of all flyers. They

stated that the people who designed it were skateboarders and Minor Threat fans themselves

who created the advertisement out of respect and appreciation for the band. [45] The dispute

was eventually settled out of court between Nike and Minor Threat. The exact details of the

settlement have never been disclosed.

Rafael Nadal is currently sponsored by Nike, Inc. (Note theswoosh on Nadal's attire)

In 2004, an ad about LeBron Jamesbeating cartoon martial arts masters and slaying a Chinese

dragon with martial arts offended Chinese authorities,[who?] who called the ad blasphemous and

insulting to national dignity and to the dragon. The advertisement was later banned in China.

In early 2007, the ad was reinstated in China for unknown reasons.[46]

Nike 6.0

The company rolled out a new campaign in June 2011 called "Nike 6.0" that was aimed at

extreme sport athletes. As part of the campaign, Nike introduced a new line of T-shirts that

include phrases such as "Dope", "Get High" and "Ride Pipe" sports lingo that is also a

double entendre fordrug use. Boston MayorThomas Menino expressed his objection to the

shirts after seeing them in a window display at the city's Niketown and asked the store to

remove the display. "What we don't need is a major corporation like Nike, which tries to

appeal to the younger generation, out there giving credence to the drug issue," Menino told

The Boston Herald. A company official stated the shirts were meant exclusively to pay

homage to extreme sports, and that Nike does not condone the illegal use of drugs.[47]Nike

was forced to replace the shirt line.
http://en.wikipedia.org/wiki/John_Lennonhttp://en.wikipedia.org/wiki/Ian_MacKayehttp://en.wikipedia.org/wiki/Dischord_Recordshttp://en.wikipedia.org/wiki/Fugazihttp://en.wikipedia.org/wiki/The_Evenshttp://en.wikipedia.org/wiki/Minor_Threathttp://en.wikipedia.org/wiki/Minor_Threathttp://en.wikipedia.org/wiki/First_Two_7%22s_on_a_12%22http://en.wikipedia.org/wiki/Nike_Skateboardinghttp://en.wikipedia.org/wiki/Nike,_Inc.#cite_note-44http://en.wikipedia.org/wiki/Rafael_Nadalhttp://en.wikipedia.org/wiki/LeBron_Jameshttp://en.wikipedia.org/wiki/Chinese_dragonhttp://en.wikipedia.org/wiki/Chinese_dragonhttp://en.wikipedia.org/wiki/Wikipedia:Avoid_weasel_wordshttp://en.wikipedia.org/wiki/Wikipedia:Avoid_weasel_wordshttp://en.wikipedia.org/wiki/Nike,_Inc.#cite_note-45http://en.wikipedia.org/wiki/Extreme_sporthttp://en.wikipedia.org/wiki/Double_entendrehttp://en.wikipedia.org/wiki/Drug_usehttp://en.wikipedia.org/wiki/Thomas_Meninohttp://en.wikipedia.org/wiki/Niketownhttp://en.wikipedia.org/wiki/The_Boston_Heraldhttp://en.wikipedia.org/wiki/Nike,_Inc.#cite_note-46http://en.wikipedia.org/wiki/Nike,_Inc.#cite_note-46http://en.wikipedia.org/wiki/John_Lennonhttp://en.wikipedia.org/wiki/Ian_MacKayehttp://en.wikipedia.org/wiki/Dischord_Recordshttp://en.wikipedia.org/wiki/Fugazihttp://en.wikipedia.org/wiki/The_Evenshttp://en.wikipedia.org/wiki/Minor_Threathttp://en.wikipedia.org/wiki/Minor_Threathttp://en.wikipedia.org/wiki/First_Two_7%22s_on_a_12%22http://en.wikipedia.org/wiki/Nike_Skateboardinghttp://en.wikipedia.org/wiki/Nike,_Inc.#cite_note-44http://en.wikipedia.org/wiki/Rafael_Nadalhttp://en.wikipedia.org/wiki/LeBron_Jameshttp://en.wikipedia.org/wiki/Chinese_dragonhttp://en.wikipedia.org/wiki/Chinese_dragonhttp://en.wikipedia.org/wiki/Wikipedia:Avoid_weasel_wordshttp://en.wikipedia.org/wiki/Nike,_Inc.#cite_note-45http://en.wikipedia.org/wiki/Extreme_sporthttp://en.wikipedia.org/wiki/Double_entendrehttp://en.wikipedia.org/wiki/Drug_usehttp://en.wikipedia.org/wiki/Thomas_Meninohttp://en.wikipedia.org/wiki/Niketownhttp://en.wikipedia.org/wiki/The_Boston_Heraldhttp://en.wikipedia.org/wiki/Nike,_Inc.#cite_note-46


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1.10. Environmental Concerns:

Environmental record

According to the New England-based environmental organization Clean Air-Cool Planet,

Nike ranks among the top three companies (out of 56) in a survey of climate-friendly

companies.[35] Nike has also been praised for its Nike Grind program (which closes the

product lifecycle) by groups like Climate Counts.[36]One campaign that Nike began for Earth

Day 2008 was a commercial that featured basketball star Steve Nash wearing Nike's Trash

Talk Shoe, which had been constructed in February 2008 from pieces of leather and synthetic

leather waste from factory floors. The Trash Talk Shoe also featured a sole composed of

ground-up rubber from a shoe recycling program. Nike claims this is the first performance

basketball shoe that has been created from manufacturing waste, but it only produced 5,000

pairs for sale.[37]

Another project Nike has begun is called Nike's Reuse-A-Shoe program. This program,

started in 1993, is Nike's longest-running program that benefits both the environment and the

community by collecting old athletic shoes of any type in order to process and recycle them.

The material that is produced is then used to help create sports surfaces such as basketball

courts, running tracks, and playgrounds.[38]

A project through the University of North Carolina at Chapel Hill found workers were

exposed to toxic isocyanates and other chemicals in footwear factories in Thailand. In

addition to inhalation, dermal exposure was the biggest problem found. This could result in

allergic reactions including asthmatic reactions.[39][40]

1.11. Research and Development:
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