Download - NIKE - SHRM.pptx
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Quick Facts About Founded by:
Phil Knight & Bill Bowerman Headquarters: Washington County, Oregon, USA
Key People : Phil Knight Mark Parker Chairman President & CEO
Quick Facts About Contd…1964 – Started as Blue Ribbon Sports (BRS), initially
operated as distributor for Japanese shoe maker Onitsuka Tiger now known as ASICS1966 – opened its first retail store in California1971 – introduced the brand with ‘Swoosh’logo designed by Carolyn Davidson1980 – attained 50% market share in US, the company
went public in December that year1988 – introduced the now famous slogan ‘Just do it’for Nike Ad Campaign
Acquisitions by 1988 - COLE HAAN (fashion brand)1994 - BAUER (ice hockey equipments)2002 - HURLEY (Clothing Company)2003 - CONVERSE (Shoe Company)2004 - STARTER (Sportswear)
2008 - UMBRO (Football equipments)
Affiliate Brands
Nike Revenue Statistics for FY08
Total Revenue $16 billion (86%)
$ 18.6 Billion $2.6 billion (14%)
Revenue Break-Up
Footwear – 61% Apparels – 33% Equipments – 7%
Nike Sales & Market Share 2008
$ 12.7 Billion Sales Break-Up OF SALES IN
OF SALES IN
Nike Sales & Market Share 2008 ContdGlobal Athletic Footwear Market Share
36 % Market share for NIKE than its prime competitor ADIDAS with only 22% market
share
Nike Production Facts Footwear sourcing of Nike50 Factories in China, Vietnam, Indonesia & Thailand
Apparel & Equipment Sourcing of Nike700 Factories/800,000 workers/52 Countries Green House Gas Emission/ Carbon Footprint
25% GHG Emission
59% GHG EmissionSHOE MANUFACTURING
Nike Labor CrisisNike’s Contract factories subjected to :- Unjust & illegal pay practice- Forced overtime- Verbal & physical abuse- Sexual harassment- Interference with unionization- Excessive toxic chemical exposure
NIKE Considered:Getting Traction on Sustainability
Rebecca HendersonRichard M LockeChristopher Lyddy Cate Reavis
Environmental Programs by Nike Staff1990 – replace GHG from their flagship Nike Air System
with climate neutral, developed water based cements to replace toxic solvents called Volatile Organic Compounds (VOC)
2000 – introduced company wide training on product sustainability
2005 – released a small line of sustainable shoe called ‘Considered’
The name came from the team “considering what was right and doing what was right”
Sustainability through CR- Strategic approach to Corporate Responsibility (CR)
emphasized Value Creation, Collaboration with Biz Units & Proactive Strategic planning
- Institutionalize CR into DNA of the company- Organizing CR around Return on Investment“ Corporate Responsibility is no longer a staff function at
Nike, It’s a Design function, a Sourcing function, a Consumer Experience function, part of how we operate.” Nike CEO Mark Parker
- Hannah Jones VP- Corporate Responsibility
The Considered Group- Started in 2005 by Mark Parker, Hannah Jones & John
Hoke as a way to diffuse the considered ethos of high-performing, aesthetically pleasing greener products
- Think tank, tool box, internal consultancy, competitive catalyst
- Objective was to choose over the impact of design of a product through its PLC
- Understand & reduce their environmental footprint
Considered's Implementation Challenge
- Performance & Aesthetics - Design- Time- Profit Margin- Supply Chain Partners- Consumers- Response from Employees
Competitor’s Play 2007 - introduced ‘Green Index’ a
rating system that showed customers how the product they bought affected environment
2007 - introduced BioMoGo world’s first fully biodegradable foam for footwear
2008 - introduced eco-oriented non-performance shoes & shirts ‘Grun’
Just Doing It Right
How did Nike Just Do It ?- Considered the Product Design- Considered the Logistics- Considered the Source of Materials- Considered the People (Consumers &
Employees)- Considered the Environment
NIKE have done what they could do for the planet, now its ‘OUR’ turn to JUST DO IT right
Thank You