Stratman Nike

STRATEGIC
AUDIT OF NIKE,
INC.
Members of auditor:
Siti Cassia
19013007
Vincent Jonathan K.
19013011
Vania Anindita
19013012
Monica Adhelia
19013013
Oswaldo Gwendy R.
19013021
Intan Rahmatillah
19013027
Zoraya Majid
19013037
Table of Contents
I.
LIST OF TABLE.........................................................3
II.
LIST OF PICTURE....................................................3
III.
CASE ABSTRACT......................................................4
IV.
CASE ISSUE AND SUBJECT.....................................4
V.
CASE SUMMARY......................................................5
Company History
Organization
Changing the Game
Making It Happen
Integrated Spring Dance Collection
Biographies of Nike Employee
VI.
VII.
I. Current Situation................................................17
A.
Current Performance
B.
Strategic Posture
II. Corporate Governance.......................................22

A.
Board of Directors
B.
Top Management
VIII. III. External Environment: Opportunities and
Threats (SWOT).....................................................57
IX.
A.
Natural Physical Environment:

Sustainability Issues
B.
Societal Environment
C.
Task Environment
D.
Summary of External Factors

(EFAS)
IV. Internal Environment: Strengths and Weaknesses

(SWOT)...................................................................72
X.
XI.
XII.
A.
Corporate Structure
B.
Corporate Culture
C.
Corporate Resources
D.
Resources as Nike Strength

and Weakness (IFAS)
V. Analysis of Strategic Factors............................112

A.
SWOT MATRIX
B.
STRATEGIC FACTOR ANALYSIS

SUMMARY
VI. Strategic Alternatives and Recommended

Strategy................................................................117
A.
Strategic Alternatives
B.
Recommended
Strategy
Based on TOWS Matrix
VII. Implementation.............................................122
A.
Program
XIII. VIII. Evaluation and Control.................................124

XIV. References............................................................125
LIST OF TABLE
Table 0.1. Nikes Vision for Changing the Game in the Womens
Market
Table 0.2 Biographies of Nike Employee
Table 3.1. External Factor Analysis Summary
Table 4.1. Internal Factor Analysis Summary (IFAS)
Table 5.1. Nikes SWOT
Table 5.2. Strategic Factor Analysis Summary Table
Table 6.1. Nikes TOWS
Table 6.2. Nikes Porter generic strategies
LIST OF PICTURE
Picture
Picture
Picture
Picture
4.1.
4.2.
4.3.
4.4.
Nike Organization Structure Example

Nikes Income Statement
Nikes third year ratio comparison
Nikes ratio comparison with industry
STRATEGIC AUDIT OF NIKE, INC. - OCTOBER 2015
CASE ABSTRACT
This case focus on giving a strategic management auditing on Nike
Corporation at 2006 when they done a huge change on their
organization by getting from a product-oriented company into a
category-drive company. A new challenge emerged when they
decided so, because Nike was never get too focused on womens
fitness like they did in 2006 after having womens fitness category,
they face the problem to implement the change quickly on large
scale, unseen barrier, and what should Nike do to adapt themselves
on these changes. By learning and doing review on information
available at both the case and external case to support any idea or
statement, this strategic management audit will be focused on
giving a viable strategy option to Nike regarding their change to
enhance womens fitness unit and show the implementation
through available framework and theory based on research to
maintain the validity of this strategic management audit.
CASE ISSUE AND SUBJECT

There are several issues and subjects which can be explored within
the research either as a problem, information, or even solution to
existing problem. However, the main issues to be discussed on the
case are what detailed and clear recommendations to be given to
Nike and help it to manage the change rapidly and globally.
Through that, some other question emerge such as what challenge
will be faced by Nike, trade-offs to be done in order to achieve it on
womens fitness category specially and Nike generally. Also Nike
had to consider from all of the issues relating to Nike efforts in
womens market from both internal and external perspective.
In order to make the strategic management audit to be focused and

detailed, the main issue to be discussed in this audit is Nike efforts
in womens market from both and internal perspective and ensure
their success within this new market.
CASE SUMMARY
In summer 2006, Nike conducted a considerable corporate change
that shift the companys focus from a product-oriented company
into a category-driven approach. The new six business categories
created
through the
change were running, mens
training,
basketball, soccer, womens fitness, and sportswear. These six

areas were chosen due to their high contribution to company
growth, making 90% of the growth compared to another category.
Nike businesses are mostly concentrated in footwear, apparel, and
equipment. However, the integration between them was unsettled
and only happened based on initiative also event. The objective of
the change itself was to be more considerate toward the market
and
customer,
optimizing
the
companys
activities
to
give
customers a holistic collection of everything they want and need a

sport.
Darcy Winslow asgeneral manager of Nikes global womens fitness
businesstried
to
achieve
the
highestlevel
of
cross-business
integration. She tried to deliver integrated collections of footwear

and equipment to the womens market by leaping through the
traditional limitation within Nikes complex organization. They
want to get different business units at multiple geographic regions
to work on the same mindset toward a common goal, therefore
even with organizational barriers, leadership issues, and the need

for intense supervision and intervention. Winslow neededto think
carefullythe lesson on shaping a new organization to support the
predetermined
business
strategy,
stimulate
cross-business
cooperation, and sustain innovative thinking. After doing so, she

could rely on the her strategies and avoid common pitfalls
happening on changes.
Company History
Bill Bowerman and Pill Knight are two founder of Nike. Bowerman
was a coach at the University of Oregon and Knight was a runner
on Bowermans team. After graduated from MBA at Stanford,
Knight come to Oregon and asked Bowerman to be his partner on
making a brand with low-cost and high performance shoes
imported from Japan. Soon after that, they agreed and made an
initial investment of $500, their brand was Blue Ribbon Sports
(BRS) in 1964. BRS began their business by importing shoes from
Onitsuka Tiger. Along the growth, in 1972, they decided to stop the
import progress and focused on design and produce the product by
themselves. This will be the company from which Nike developed.
By 2006, Nike adapted from Greek goddess of victory had grown to
be a famous brand. Nikes corporate mission was to bring
inspiration and innovation toevery athlete in the world. By
believing the mission, they achieve performance and strong believe
that If you have a body you are an athlete. To help them grow
even more.
Organization
In fiscal year 2006, footwear contributed 66%, apparel 28%, and
equipment 6% towards the revenue. Global brand footwear market
approximate Nikes market share at 38%, with Adidas/Reebok
following them with 34% market share.
Nike considered to add gender on its organizational structure as a
fourth dimension in the matrix in 1997. By then footwear business
dedicated to bring womens perspective to its running category as
more and more women were becoming active in running. At that
time, product line manager, a designer, and a developer were
dedicating themselves on developing running shoes for women.
They design it by visualizing what they really want and the
designer sketch it directly on to picture.
As the project and business on womens market grow, another idea
came up for addressing them: that is a retail and marketing project
named Nike Goddess, which was intended to help company
reengineer the way it sold its products towards women. They
created stores named Nike Goddess stores which were meant to be
the women-only sport-shop destination.
Changing the Game

For about six months, a cross-functional team analyzed new sports
categories and geographic markets, as well as the possibility of
moving more aggressively into womens products. From this
analysis, the five high potential opportunities (outdoor, bags, mens
training, value footwear, and women) were chosen to be part of a
larger assessment project called Change the Game. Winslow was
selected to lead the womens Change the Game.
Emma Minto, an external consultant, brought on to play the role of

the strategic lead, was the teams only dedicated resource.
Phase One
First phase of the teams work what occurred over the course for
about six weeks. The first phase started with getting a read
internally on where we had been with the womens business:
What had been our successes?

What had been our challenges?
How do we define the market?
How do we size it?
Internally, the team confirmed that there was a great initiative to

address the womens market but they were not integrated, so the
team wasnt leveraging the collective power. Nike defined the
womens fitness market as encompassing all of the fitness activities
women performed.
Apparel data was particularly challenging due to the blurry
boundaries between fitness and active wear. In the end, after a lot
of triangulation, there was about a $13 billion market. Roughly
25% of the market opportunity would be in footwear, 70% in
apparel, and the remainder was coming up from equipment. The
team estimated that the market would expand 5%-8% per year,
driven by trends in womens participation.
They are some competitors entered the women:
Reebok (dominating the market in womens aerobic)

Adidas (bringing on celebrity designer athletic wear)
Puma (introducing its Olive brand to try to break into the
yoga market)
New Balance (launching cause-related marketing to attract
to Race for the Cure), and

A lot of new and smaller competitors such as Lulu Lemon,
Under Armour,and Danskin.
Nike had to figure out a new way to talk to female consumers by

creating a dialogue and emotional connection with women. So, the
team made the vision for Changing the Game in the Womens
market.
Table 0.1. Nikes Vision for Changing the Game in the Womens Market
Nikes Vision for Changing the Game in the Womens

Market:
Accelerating Womens Fitness to Womens Sports
From
Initiative
To
A sustainable, profitable, brandenhancing
portfolio
businesses
where
of
sports
were
the
aspirational brand of choice for

her.
In consistent relationship with The Dominant Brand in Her Mind
consumer
Color-base Collections
Integrated,
Inconsistent Retail Experience
Collections
Consistent
Concept-based
Defining
Retail
Experience Globally
Aligned Global Strategy
Isolated Initiatives
Inconsistent,
Inadequate Integrated, Fully Resourced Global
Team
Commitment and Resources
Incremental, Isolated Business Accelerated
Global
Business
Opportunities
Opportunities
Phase Two
During phase two, the team focused on developing an overarching
plan for approaching the womens market. The team had challenge
to deliver its vision of presenting integrated collections to female
consumers. To face the challenge, the team used an approach that
took a 21-month view of the product creation and delivery
processes across footwear, apparel, and equipment as wells as
brand
marketing.
Critical
activities
and
decisions
were
synchronized through the creation of six joint milestones.
1. Seasonal Kickoff and Creative Direction

Integrated meeting to set seasonal creative
direction,
confirm seasonal themes, and build key stories.

2. Design Review
Integrated creative meeting to review product design in all
fitness sport, across all business units.
3. PrototypeReview
Planning and prioritization for the brand, retail, sales, and
regions.
4. Go-to Market Strategy
Presentation of the go-to-market plan by brand, retail, sales,
and the regions.
5. Pralines
Product groups and brand presents an integrated collection
to key accounts in multiple regions.
6. Brand Execution and Post-Season Review
Brand plans presented and evaluation of seasonal planning
and booking results.
The process was designed to culminate six months later with the
delivery of the integrated collections to retail, as well as Nikes
other distribution channels. After working the process, Winslow

and Jamie Shierk(Head of global womens apparel) made a decision
to initiate the development of an integrated collection of footwear,
apparel, and equipment in the womens dance category.
Phase Three
In phase three, the team focused on two primary work streams:
Jim
How we would organize, and

How much money we needed.
Sutton,
global
HR
director
for
apparel,
designed
the
organization. He was brought on to the team the structure,

positions, and people would be required to enable the new group to
execute the strategy.
Minto spent estimated the amount of additional revenue the
womens business could expect to drive through an integrated
approach, as well as how much of an incremental investment would
be required to support the vision. She went out to the region and
talkedwith representatives from footwear, apparel, and equipment
to perform the sanity check on the numbers.
The next challenge was to define the special positions that would
make up the global womens fitness core team and then develop
high-level position description outlining the responsibilities of each
role.
To address the issues associated with the collection-based
approach, Winslow and the team also proposed the global

marketplace
development
director,
who
would
handle
for
developing and executing the new retail and merchandising

strategy. They also created an ongoing part-time role for the

member of the operations team to work with the global womens
fitness, helping the group get product collections to market.
Making It Happen
Grossman hired Winslow in the GM role for the global womens
fitness on January 1, 2005. Winslow began building her team. She
had criterias for people who wanted to join with her team, the
criterion are
1.
2.
3.
4.
5.
People who like her

Influence in the organization
Have solid reputations
Good communication skills
Deep passion for the womens business
The team used a strategy of spending more time listening than

talking or trying to influence people. Because they wanted to earn
customer trust by really listening and helping them by adding
value.
The challenge to the womens fitness team was to make believers
out of kind of supporters and skeptics alike. To solve that, Winslow
went
on
explaining
the
approach
she
took
to
crafting
complementary strategy for womens fitness. Simultaneously, the

team worked to define matrixes and incentives to help motivate,
drive, and track desired performance related to global womens
fitness.
Another challenge for the womens fitness business was that was
no
longer
about
providing
training
products
to
female
consumers. To drive this mentality, the team set up virtual fitness

sports teams and named captains from the various product groups
to lead the focus in these areas through integrated teams. Winslow
and Grossman promoted the global womens fitness concept
through a road show throughout the company, enthusiasm and
commitment remained high.
Integrated Spring Dance Collection

Change the Game team was not only developing dance as a
category
within
global
womens
fitness
and
initiate
the
development of the first integrated collection.It was built on

successes that had been realized in the EMEA region by having
EMEA started developing, delivered integrated collections, and
entered the dance market.
The global womens fitness team started to design its first
integrated dance collection, they made fashionable and trendy
sportswear. Through the superhuman efforts, the integrated
product development effort moved forward, producing a holistic,
innovative collection that exceeded even the teams expectations.
Grossman said that being able to create at the point of the
consumer touchpoint the experience that we wanted the consumer
to have was the biggest issue. Through this challenge, the team
tried to make them sure that Nike delivered complete assortments
to customers across product types.
Despite these barriers, the first integrated dance collection was

considered a success on multiple levels. It included its contribution
to Nikes brand in the womens fitness market, the products
themselves, and as a catalyst for driving the new, integrated
approach to the womens fitness market.
Biographies of Nike Employee

Table 0.2 Biographies of Nike Employee
Mindy Grossman, Vice President of Apparel
30 year veteran of the retail and apparel industries

CEO of IAC Retailing in April 2006
President and CEO at Polo Jenas Company
VP of new business at Polo Ralph Lauren Corporation
President of the Chaps Ralph Lauren division of Warnacos
menswear division
VP of sales and merchandising at Tommy Hilfilger
Graduated from Manhattanville College and George Washington
Seana Hannah, Category Footwear Leader Womens Training
Leading the global team of marketers designers
Developers who create exciting products for women in the gym
and girls training for sport
Retail Associate
Product line manager in kids and running
Product director of womens running
Bachelor Degree of Sociology from Amherst College
Steve Lesnard, Global Concepts Director for Global Womens
Fitness
Marketing director for a womens luxury apparel brand
Join the global footwear division of Nike in 1997
Joined the EMEA regional footwear team as the apparel and
womens regional marketing manager
U.S. senior brand manager for apparel, womens, tennis, and

kids.
Recently, moved into the role of global concept director for
womens fitness.
Emma Minto, Director of Strategic Planning for Nike Brands
U.S. Apparel Division
Specialist in business strategy, business development, and
marketing
Director of strategic planning for Nike Brands U.S. apparel
division
Director of strategic planning for its global womens fitness
division
VP marketing and professional services in TeamOn Systems
Management consultant att Corporate Decisions Inc.
Mercer Management Consulting
Product marketer at Colgate-Palmolive
Graduated of MBA from Harvard Business School
Bachelor of Commerce from Queens University in Ontario,
Canada
Maithili Shenoy, Global Director of Supply Chain Strategy and
Development
Responsible for
strategy
development,
process
redesign,
performance management, and education for the supply chain

area
Ten years in management consulting at Deloitte Consulting and
Accenture
Receiving BS in Operations Research from Columbia University
Receiving
Master
in
International
Business
from
Sophia
University in Tokyo
Jodo Sittig, Marketplace Development Director, Global Womens
Fitness
Instrumental in delivering and implementing brand, retail, and

event strategies.
Aligned retail and sales strategies around the globe for the
womens fitness business
Womens brand manager for the U.S. womens business
Director of marketing and event in Nikes retail group
Creation and execution of national strategic plans for NIKS
ETOWN and the factory Store markets
Creation and implementation of the marketing strategy for the
first Nike Goddess store
Earned BS in Fashion Merchandising from Kent State University
Mary Slayton, Director of Market Intelligence
Overseas market, consumer, and competitive information and
analysis for Nike on a global basis
General manager of the accessories business marketing director
for the Jordan Brand
Director of strategic planning for the U.S. religion
Director of strategic planning of subsidiaries
Director of consumer insights
Received BS in Economics from Colorado College
Received MBA from Northwesterns Kellogg Schol of Business
Prior to Nike
Worked at Pillsbury, McKinsey & Company and Wilson Sporting
Goods
Barbara Summer, Creative Director for Integrated Footwear,
Apparel, and Equipment
Leads design in mens and womens styles across all sporst
categories and Nikes sports culture business
Creative director for the U.S. Womens business
Creative director for global apparel
Attended the University of Oregon and the Fashion Institute of
Technology in New York

Jim Sutton, Senior Director
of
Leadership Development
Leads Nikes talent management
development,
assessment,
Global
Organization
processes
executive
for
coaching,
and
leadership
succession
management, performance management, and learning/training

HR director for Nikes global apparel and equipment business
units
Worked
as
senior
HR
generalist
leadership
roles
at
San
Fransisco-based Lesvi Strauss & Company for 25 years

HR drirectot for Levis the USA
Joined Nike in 1997
Has a Bachelors Business Administration from Texas A&M
University
Hold a coaching certification from the Hudson Institute of Santa
Barbara
Hans van Alebeek, Vice President of Global Operations &
Technology
Director operation of Europe in 1999
Vice President, operation and administration in EMEA in 2001
Vice President, global operations & technology in November
2005
Worked McKinsey & Company as a management consultant
Worked at N.V. Indivers in business development
Darcy Winslow, Global General Manager for Womens Footwear,
Apparel, and Equipment
Overseas all aspects of the value creation chain in womens
fitness (innovation, product creation, marketing, supply chain,
retail, and sales
Biomechanical research assistant
Director of footwear and apparel product testing
Product development manager

Core team member of Nikes business engineering initiative
Director of advanced research and development
Global director for footwear research design and development
General manager of sustainable business strategies
Global womens footwear director
Received her BS in Exercise Science
Received MS in Exercise Physiology and Biomechanics
Graduated of the Stanford Executive Program in 2003
Pat Zeedic, General Manager of Equipment and Womens for the
EMA Region
General Manager of Nike Canada
Director of Sales for the Americas region
Global director of sales training and development
National development sales director for the United States,
Western regional apparel sales manager
Territory sales manager in the Nike Rocky Mountains region
Worked in retail as a buyer and general manager at Joslins
department store in Colorado
Completed her education at Indiana University of Pennsylvania
I.
Current Situation
A. Current Performance
NIKE MARKET SHARE
In fiscal 2006, footwear accounted for roughly 66% of the business,
apparel 28% and equipment 6%. The company is being the market
leader in athletic footwear market, with nearly 38% market share,
with Adidas/Reebok following at 34%. The footwear competitors,
including Puma, Asics, Mizuna, and Umbro trailed significantly in
their market share. Because the apparel and equipment markets
were more fragmented than footwear, with many more competitors
of all sizes vying for share. Nike had a dominant mindshare in the
women fitness market. By this strategy, Nike can retain the same
strength.
NIKEs ROI over the Quarter Ending May 31, 2006
Revenues
Cost of investment
$4,005.4
=
$2,252.2
Returnon Investment=
(RevenuesCost of Investment )
Cost of Investment
( 4,005.42,252.2)
2,252.2
Returnon Investment=0.7784
Retur n on Investment =77.84
It means that the company has the ability by 77.84% of the

investment to run the company to generate profits quarterly.
NIKEs ROI over the Year Ending May 31, 2006

Revenues
Cost of investment
$14,954.9
=
$8,367.9
(RevenuesCost of Investment )
Cost of Investment
(14,954.98,367.9)
8,367.9
Returnon Investment=0.7872
Retur n on Investment =78.72
It means that the company has the ability by 78.72% of the

investment to run the company to generate profits annually.
PROFITABILITY
1. Gross Profit Margin

The case clearly stated that the gross profit is $1,753.4 and the
gross profit margin quarterly is 43.8%. From this percentage, it
means that the company could indicate the companys ability to
efficiently production by 43.8%.
But the gross profit on the year ending May 31 2006 is $6,587
which the gross profit margin is 44%. Nike has a larger percentage
in the year ending, the larger percentage of the gross profit margin
is, the better company condition.
2. Net Profit Margin
Net Profit Margin Quarter Ending
Net Income=
$332.8
Sales
$2,252.2
Net Profit Margin=
Net Income
Sales
Net Profit Margin=
332.8
2,252.2
Net Profit Margin=0.1478

It means that the company gets 14.78% from its sales, the higher
net profit margin, the better company is.
NIKEs ROI over the Year Ending May 31, 2006

Net Income=
$1,392.0
Sales
Net Profit Margin=
$8,367.9
Net Income
Sales
Net Profit Margin=
1,392
8,367.9
Ne t Profit Margin=0.1663
It means that the company gets 16.68% from its sales, the higher
net profit margin, and the better company is. The company has
higher profitability if the year ending May 31, 2006. If the net
profit margin for the quarter ending compared with profit margin
with the year ending, the net profit margin for the quarter ending
less than profit margin in the year ending. It means that, the last
four months, the profit margin decrease.
B. Strategic Posture
Mission
To bring inspiration and innovation to every athlete in the
world
Objectives
To get the womens business on Nikes leader board. Nike has
been 15 years went as initiator in women fitness industries
and nowadays, Nike objectives is to embed as one of the
biggest growth market in the global competition
Strategies
Drive strategic integration in the market, because integrated
strategy is very useful in the market and has been proved
successful by some other company.
Nike strategy from 2006 has created mass market nowadays
and Nike being one of the largest shoes production in the

world
Initiated a study to identify the next big growth

opportunities for the company
Hire some celebrity designer to join the design of the

new product as fashion performance has became one of
the trend in shoes world
Expansion in consumer base
Expansion in Nikes locations
Expansion in activity and demands
Delivered some integrated campaign

Policies
Creating some new management to overcome the women

fitness market, Nike have to change from the Nike traditional
business to modern business.
II.
Corporate Governance
A.
Board of Directors
Board of Directors Member
On 2007, Nikes Board of Directors are consisting of nine persons

from various background and role. Here are the list of each current
Nikes
Board
of
Director
and
their
status
as
Board
of
Directors(Nike Inc., n.d.):
Philip H. Knight
Mr. Knight has been becoming directors since 1968 and
currently is the Chairman of the board of directors of Nike.
He was serving as president of Nike since 1968 to 1980
except for a period between June 1983 through September
1984, and he also was serving as president from June 2000 to
December 2004. This is making him be categorized as
internal member.
Mark G. Parker
Mr. Parker has been President, Chief Executive Officer, and a
director since 2006. He has been internal member of Nike as
employee since 1979 and currently being the other Executive
Commitee beside Mr. Knight. He has extensive knowledge
and experience in Nikes operations, branding, research,
design, and management. He is categorized as internal board
of directors member.
John G. Connors
Mr. Connors currently a member of the board of directors of
Splunk and privately held some others companies. He is
currently an Audit Committee and a Finance Committee to
be categorized as external members.
Timothy D. Cook
Mr. Cook is Chief Executive Officer of Apple and currently
the Chair of Compensation Committe and Nomination and
Corporate Governance Committee at Nike board of directors.
He is also a member of the board of directors of the National
Football Foundation and Apple, Inc. This way he can be
categorized as external member.

Alan B. Graf, Jr.
He isExecutive VP and the Head of Financeat FedEx
Corporation, other than FedEx he is also serving under three
other board memberships. In the Nike board he served as
Chair of Audit Committee and Chair of Nominating and
Corporate
Governance
He
is
an
external
member.
Douglas G. Houser
Mr. Houser has been a partner in the Portland making him an
external
member.
Sustainability
Committee.
He
is
Corporate
Committee,
Executive
Responsiblity
and
Committee,
and
Nominating and Corporate Governance Committee.

Jonathan A. Rodgers
Mr. Rodgers is retired broadcast and cable television Chief
Executive Officer and founding President making him an
external
member.
He
is
Corporate
Responsibility
Committee and Compensation Committee.

Orin C. Smith
Mr. Smith was President and Chief Executive Officer at
Starbucks Corporations from 2000 to 2005 and currently
becoming Chief Financial Officer to two transportation
company making him an external member. He is a Audit
Committee and Chair of Finance Committee.

John R. Thompson, Jr.
Mr. Thompson was head coach of the Georgetown University

mens basketball team from 1972 until 1998. He is an
external member and is Corporate Responsibility Committee.
Board of Directors Stock and Share
According to Nike Corporate Governance Guidelines, there are
certain significant Nike Stock Ownership needed by the board
members, those is five times of eachs board members cash
retainer for each member with the maximum time to achieve it is
by five years of membership. In this exception, Chief Executive
Officer is bound to have stock valued six times of his annual base
salary (in this case is Mr. Parker who also Executive Committee).
(Nike Inc., n.d.)
Classes / Kind of Stock Owned by Board of Directors
The stocks owned by board of directors are publicly traded even
though there are two kind of common stocks available that is
Common Stock A and Common Stock B. Both have no differences
in the dividend and liquidation preferences or participation rights
of the Class A and Class B common shareholders. It just stated that
voting rights of Class B Common Stock are limited in certain
circumstances with respect to the election of directors.
Board of Directors Contribution and InternationalEnvironment Concerns

There are many factors which a board members can contribute,
especially
in
representing
the
desire
and
interest
of
all
shareholders. In Nike, there are several main contribution needed

from each member of the board, those are:
Nike was expecting a well-diversified and high skill board of

director to ensure them execute their responsibilities to overseer
in optimally. Specifically, each member are expected to have a
strong
backgrounds
in
finance,
operations,
technology,
management, marketing, the professions, sports, and education,

depending on the needs of the board.
It is highly expected that all of the board member are for the least
is having a bachelor degree from a well-known college. This
criteria is not meant to undervalued one with a high intelligence
through university background, however it is just as a proxy to
show the expectation of how good the members should be. And
also it is of course didnt mean to close the chance of a person with
high achievement and no college background to join the board.
And as Nike is an international-wide business, 7 out of 9 members
on
the
board
are all having
their
own respective unique
international experience, which, of course could support Nike

International business.
In addition, Nike themselves through the code of ethics organized
and created by the board of directors are having environment as
their first code of ethics concern. Other than that, there are several
more code of ethics which could support the environment concern
such as health and safety, but this already enough to show the Nike
concern towards environment.
Board of Directors Serving Periods
Each and every member in board of directors are having their own
serving period as below with after several criteria is failed to be
met by the individual member, he/she will be asked to be resigned

and new election to be started and done by board of director and
shareholders as the voters, below is the member list along with
eachs serving period:
Philip H. Knight
A director from 1968 until
Mark G. Parker
John G. Connors
Timothy D. Cook
Alan B. Graf, Jr.
Douglas G. Houser
Johnathan A. Rodgers
Orin C. Smith
John R. Thompson Jr.
2007 39 years of serving.

2007 1year of serving.
2007 1 year of serving
Board of Directors Involvement Degree

As the website and information available suggest, Nikes board of
director involvement degree is could be said as Active Participation
where the board of director approves, question, and doing regular
meeting with the top management along with active board
committees meeting and available fiscal and management audits.
(Nike Inc., n.d.)
Board of director are having their own Corporate Responsibility
Committee, in which the committee need to review and evaluate
management
decision
toward
company
sustainability
and
responsibility as stated on amended code of ethics. This means

environment is always being one of the consideration on every
board of director managements proposal evaluation. (Nike Inc.,
n.d.)
Global Women Fitness Organizational Structure
Global VP
Global Director Marketplace Development

Global Director Strategic Planning
Global Director Womens Footwear

VP Footwear
Global Director Womens Apparel

Global Apparel Director
Womens Creative Director

Business Unit Director
Womens Innovation Director

VP Equipment
Global Director Womens Equipment Womens Merchandising Director
Director Brand Marketing

Director Womens Brand Initiatives Director Operations and Supply Chain
VP Operations
Regional Management
USA
EMEA
Asia-Pacific
TOP MANAGEMENT
1.
2.
Darcy
Winslow,
Global
General
Manager
for
Womens
Footwear, Apparel and Equipment

3.
Jim Sutton, Senior Director of Global Organization and

4.

U.S Apparel Division
5.
Barbara Sumner, Creative Director fir Integrated Footwear,

Apparel and Equipment
6.
Steve Lesnard, Global Concept Director for Global Womens

Fitness
7.
Maithili Shenoy, Global Director of Supply Chain Strategy

and Development
8.
Jodi
Sittig,
Marketplace
Development
Director
Global
Womens Fitness
9.
10.
Hans Van Alebeek, Vice President Global Operation and

Technology
11.
Pat Zeedick, General Manager of Equipment and Womens

for the EMEA Region
TOP MANAGEMENT CHIEFs CHARACTERISTICS
1.

Knowledge
Apparel
industry,
retail
and
merchandising, branding concept & strategy, ecommerce
business,
manufacturing,
Skill
fashion,
operations,
global
apparel
sourcing,
quality
assurance, innovation and product development.

:Leadership, managerial, business development,
e-commerce business, strategic planning.

Background
: Manhattan Ville College and George
Washington University.
Style
: Innovative, emphatic, aggressive, confidence,
visionary, certainly, strong passion of fashion,
charismatic, inspiring, entrepreneurial.
International experiences:
1977-1991
: Assistant president of the international
division
in
menswear
apparel
industry
at
Manhattan International Company.

1978-1980
: Executive at Jeffrey Banks menswear.
1980-1981
: Executive at Ron Chereskin menswear.
1981-1985
: Regional Sales Manager at Merona, Vice
President of Sales at Jeffrey Banks, Oxford
Industries.
1985-1988
: Vice President of Sales of Menswear, at
Wlliwear by Will Smith.
1981-1991
: Vice President of Sales and Merchandising
at Tommy Hilfiger.
1991-1994
: President of Chaps Ralph Lauren, Senior
Vice President of menswear division at Warnaco,
Inc.
1994-1995
Vice
President
of
New
Development at Polo Ralph Lauren Corp.

Business
1991-2000
1995-2000
2000-2006
: Vice President Ralph Lauren Corp.

: President and CEO of Polo Jeans Company.
: Vice president of Global Apparel at Nike,
Inc.
2006- Present
CEO
HSN,
CEO
IAC
International
retailing.
Executive part of top management: Yes, she is. She has
serving Nike, Inc. as a
Vice President of Global Apparel
from 2000-2006.
2.
Darcy
Winslow,
Global
General
Manager
for
Womens

Knowledge
: Business strategic, innovation, business
development,
sales,
supply
re-engineering
chain,
process,
sustainability
retail,
business,
product creation, biomechanical engineering, and

Skill
product development.
:
Leadership,
Management,
Sustainability,
Executive Coaching, Entrepreneurship, Strategic

Planning, Business Strategy
Background
:
1973-1977:BS, Exercise Science at Murray State University
1985-1985:MS, Sports Medicine at Southern Connecticut
State University
1986-1988:MS, Exercise Physiology & Biomechanics at
Portland State University
2003-2003: SEP, Business at Stanford University Graduate
Style
School of Business
:Professional, enthusiasm,
detail,
openness,
dedication, inspirational leader, strong leader,

good communication skill, solid reputation, deep
passion, visionary.
1988-2008: General Manager at Nike, Inc.

Biomechanical Research Assistant Director
Director of Product Testing Manager
Product Development Manager
Process Business Re-engineering Team Manager
Director of Advanced Research & Development
Footwear
Director
of
Development Footwear
General
Global
Manager
Research,
Design
Sustainable
&
Business
Strategies
General Manager of Global Womens Fitness
(FW, APP, EQP)
Nike Brand Process Re-engineering Director
Senior Advisor Nike Foundation
2010-2012: Senior Strategist at Brightworks Sustainability
Advisor
2008- Present
: Executives in Residence at MIT Sloan
School of Management
2008- Present
: Founder Designs for a Sustainable World
Collective, LLC
Executive part of top management: Yes, she is. She was
working in Nike, Inc. for 18 years and held many positions.
3.

Knowledge
:Performance
management,
resource
management,
strategic
planning,
organizational
business
process,
human
design,
career
development, training, employee management,

Skill
and talent management process.

:Leadership, managerial, executive coaching, HR
consulting, HRM
Background
: Bachelor Business Administration from
Texas A&M University.
Coaching Certification from Hudson Institute of
Santa Barbara.
Style
: Professional, insightful,
1972-1997:HR Director, Levis USA.
1997- 2008
:Senior Director Global Organization and
Leadership at Nike, Inc.
2009- Present :Business Advisor and Executive Coach at
Bois DArc Leadership.
Executive part of top management: Yes, he is. He has held
senior HR leadership roles in Nike, Inc.
4.

Knowledge
: Apparel, product development, business
development, merchandising, marketing strategy,

business strategy, consumer goods, sports goods,
Skill
and cross functional team.

: Leadership, managerial, specialist business
strategy, strategic planning, marketer
Background:
1987-1991: Bachelor of Commerce at Queens University
1994- 1996
: MBA at Harvard Business School
Style: tactical, realist, professional, creative, marketer
1991- 1994
: Associate Product Manager at Colgate
Palmolive Toronto, Canada.
1996- 1997
: Associate at Corporate Decisions Inc.
1997- 1998
: Senior Associate at Mercer Management
Consulting
2000- 2002
: VP Marketing &Profl Services at TeamOn
Systems.
2000- 2006
Strategic
Planning
Director
Womens fitness at Nike, Inc.

2006- 2008
: Business Development
Global
Director
US
Apparel at Nike, Inc.

2008- 2009
: Merchandising Director US Kids Apparel
at Nike, Inc.
2009- 2013
: Global Category Apparel Lead- Young
Athletes at Nike, Inc.

2013- 2013
:
Senior
Director
Apparel
Process
Innovation at Nike, Inc.

2013-Present
: GM Nike Sportswear Central & Eastern
Europe at Nike, Inc.
Executive part of top management: Yes, she is.
5.

Knowledge
: Product design, fashion design, creative
textiles, trend forecasting, project management,

Skill
apparel design, concept boards.

: Leadership, managerial, product design,
creative planning
Background
: 1988-1990, BS, Fashion Design, Fashion
Style
Institute of Technology, University of Oregon

: genuine, creative, inspirational, listener,
cooperative, trustworthy
1990- 2006
: Creative Director Nike, Inc.
1990-2008: Global Creative Director Womens Footwear,
Apparel and Equipment Nike, Inc.
2009- Present
: Creative Director Interior and Product
Design Self Employee Consultant

6.

Fitness
Knowledge
Skill
: Brand development, marketing strategy,
sports goods, strategic planning

:
Leadership,
managerial,
marketer,
branding concept
Background:
September 1995 December 1996 MBA, Business &
entrepreneurshipBabson college
MBA Babson College Franklin W. Olin Graduate School of
Business
Style
: professional, creative, inspiring, initiatives
2015Present
: VP/GM Running North America Nike, Inc.
2008Present
: Running Global Brand Director & London
2012 Olympics, Nike, Inc.

2012 2015
: VP Brand Management Western Europe
Nike, Inc.
2006 2008
: Global Brand Director. Beijing Olympics
Nike, Inc.
2005 2006
: Global brand concept director Nike, Inc.
2004 2005: US Brand Marketing Director Nike, Inc.
2001 2004
: Regional Brand Manager Nike EMEA
Executive part of top management: Yes, he is.
7.

and Development
Knowledge
operations
business
planning
Skill
strategy,
development,
and
retail
strategy,
purchasing,
inventory
management,
supply
chain
performance management.
: supply chain strategy consulting, engineering
process management
Background:
1991 1993
: MBA, International
University
1987 1991
B.S.,
Operations
Business,
Research/
Sophia
Industrial
2003
Engineering, Columbia Engineering

: Certifications APICS: American Production and
Style
Inventory Control Society, APICS

: genius, tactical, out of the box thinker, business
speak, deep in technology knowledge

2012Present:Senior Director, Emerging Markets Demand
Planning & Inventory Management Nike, Inc.
2011 2012
: Senior Director: Sales and Operations
Planning Nike, Inc.
2007 2011
: Senior Director, Global Replenishment
Nike, Inc.
2003 2007
: Global Sr. Director of Supply Chain
Strategy & Development Nike, Inc.

2000 2001
:
Vice
President,
DevelopmentSupplycahinge.
1996 2000
: ManagerDeloitte Consulting
Business
1993 1996
:AccentureSenior Consultant
8.
Jodi
Sittig,
Marketplace
Development
Director
Global
Womens Fitness
Knowledge
Marketing
management,
strategy,
marketing
marketing
integration,
sports
goods, brand development, sales strategies, retail

Skill
and merchandising.
: Marketing strategy, brand development,
marketing specialist
Background:
1986 1990, Bachelor
of
Science
(BS),
Fashion
Merchandising, Kent State University

Style
: Professional, serve the best
2011Present: Senior Global Brand Director- Access to
Sport Nike, Inc.
2009 2011
2007 2011
2003 2005
Executive part
9.
: Global Brand Director Nike, Inc.

: Brand Marketing DirectorNike, Inc.
: Brand ManagerNike, Inc.
of top management: Yes, she is.

Knowledge
: Brand development, sports goods, market
consumer,
Skill
Background
: Business Strategic, Marketing

: B.S in Economics from Colorado College
and MBA from Northwestern Kellogg School of

Business.
Style
: Humorist, professional, learner
International experiences: Director of Market Intelligence,
GM of Accessories Business, Marketing Director for the
Jordan Brand, Director of Strategic Planning for the U.S

Region, Director of Strategic Planning for Subsidiaries, and
Director of Consumer Insights. Before join with Nike, She
worked at Pillsbury McKinsey & Company and Wilson
Sporting Goods.
10.

Technology
Knowledge
: Operations management, supply chain,
strategic
planning,
development,
Skill
forecasting,
operational
product
excellence,
E-
commerce, logistics, and

: OPM consultant, business strategy, business
development, and process improvement.

Background
:
1990 1992
: MBA, UCLA Anderson School
Management
1983 1988
Drs.
Econometrics,
VU
of
University
Amsterdam
Style
: creative, professional
1999Present
: VP operations and administrations, VP
global operations and technology, Corporate VP,
Executive, Nike, Inc.
1992 1998
: CPO, Shared Services, EVP Supply Chain,
Technology, COO EMEA, Consultant, McKinsey &
Company
1988 1990
: Business Analyst, NV Indivers
11.

for the EMEA Region
Knowledge
: Business development, marketing, sports
goods, sales management, sales strategy, retail,

product innovation, brand leadership and sales
Skill
development.
:
sales
strategy,
business
strategic
planning.
Background
: Indiana University of Pennsylvania.
Style
: competitive, perfectionist, speak to the point,
walk the talk, critical thinker.
International experiences: 2007, Nike appointed Zeedick as
GM of Equipment for the Nike Brand. 1984-2006, GM of
Equipment and womens for EMEA, GM of Nike Canada,
Director of Sales for America, Global Director of sales and
training development, National development sales director
for the U.S, Western Regional Apparel Sales Manager,
Territory Sales Manager in the Rocky Mountains Region,
Nike, Inc. Prior worked at Nike, Pat has joined as GM at
Joslins Department Store in Colorado.
B.
Top Management
Global Women Fitness Organizational Structure
Global VP
Global GM Womens Fitness

Senior Administrative Assistant
Global Director Marketplace Development

Global Director Strategic Planning
Global Director Womens Footwear

VP Footwear
Global Director Womens Apparel

Global Apparel Director
Womens Creative Director

Business Unit Directo
Womens Innovation Director

VP Equipment
Global Director Womens Equipment Womens Merchandising Director
Director Brand Marketing

Director Womens Brand Initiatives Director Operations and Supply Chain
VP Operations
Regional Management
USA
EMEA
Asia-Pacific
TOP MANAGEMENT
12.
13.
Darcy
Winslow,
Global
General
Manager
for
Womens

14.
15.

16.
Barbara Sumner, Creative Director for Integrated Footwear,

17.
Fitness
18.
and Development
19.
Jodi
Sittig,
Marketplace
Development
Director
Global
Womens Fitness
20.
21.
Technology
22.
for the EMEA Region
12.
TOP MANAGEMENT CHIEFs CHARACTERISTICS

Knowledge
Apparel
industry,
retail
and
merchandising, branding concept & strategy, ecommerce
business,
manufacturing,
Skill
fashion,
operations,
global
apparel
sourcing,
quality
assurance, innovation and product development.

: Leadership, managerial, business development,
e-commerce business, strategic planning.

Background
: Manhattan Ville College and George
Washington University.
Style
:Innovative, emphatic, aggressive, confidence,
visionary, certainly, strong passion of fashion,
charismatic, inspiring, entrepreneurial.
1977-1991: Assistant president of the international division
in menswear apparel industry at Manhattan
International Company.
1978-1980: Executive at Jeffrey Banks menswear.
1980-1981: Executive at Ron Chereskin menswear.
1981-1985: Regional Sales Manager at Merona, Vice
President of Sales at Jeffrey Banks, Oxford
Industries.
1985-1988: Vice President of Sales of Menswear, at
Wlliwear by Will Smith.
1981-1991: Vice President of Sales and Merchandising at
Tommy Hilfiger.
1991-1994: President of Chaps Ralph Lauren, Senior Vice
President of menswear division at Warnaco, Inc.
1994-1995: Vice President of New Business Development at
Polo Ralph Lauren Corp.
1991-2000: Vice President Ralph Lauren Corp.
1995-2000: President and CEO of Polo Jeans Company.
2000-2006: Vice president of Global Apparel at Nike, Inc.
2006- Present
CEO
HSN,
CEO
IAC
International
retailing.
Executive part of top management: Yes, she is. She has
serving Nike, Inc. as a Vice President of Global Apparel
from 2000-2006.
13.
Darcy
Winslow,
Global
General
Manager
for
Womens

Knowledge
: Business strategic, innovation, business
development,
sales,
supply
re-engineering
chain,
process,
sustainability
retail,
business,
product creation, biomechanical engineering, and

Skill
product development.
:
Leadership,
Management,
Sustainability,
Executive Coaching, Entrepreneurship, Strategic

Planning, Business Strategy
Background
:
1973-1977: BS, Exercise Science at Murray State University
1985-1985: MS, Sports Medicine at Southern Connecticut
State University
1986-1988: MS, Exercise Physiology & Biomechanics at
Portland State University
2003-2003: SEP, Business at Stanford University Graduate
Style
School of Business
: Professional, enthusiasm,
detail,
openness,
dedication, inspirational leader, strong leader,

good communication skill, solid reputation, deep
passion, visionary.
1988-2008: General Manager at Nike, Inc.
Biomechanical Research Assistant Director
Director of Product Testing Manager
Product Development Manager
Process Business Re-engineering Team Manager

Director of Advanced Research & Development
Footwear
Director
of
Development Footwear
General
Global
Manager
Research,
Design
Sustainable
&
Business
Strategies
General Manager of Global Womens Fitness
(FW, APP, EQP)
Nike Brand Process Re-engineering Director
Senior Advisor Nike Foundation
2010-2012: Senior Strategist at Brightworks Sustainability
Advisor
2008- Present
: Executives in Residence at MIT Sloan
School of Management
2008- Present
: Founder Designs for a Sustainable World
Collective, LLC
Executive part of top management: Yes, she is. She was
working in Nike, Inc. for 18 years and held many positions.
14.

Knowledge
Performance
resource
management,
strategic
planning,
management,
human
organizational
design,
business
process,
career
development, training, employee management,

and talent management process.
Skill
: Leadership, managerial, executive coaching, HR
consulting, HRM
Background
: Bachelor Business Administration from
Texas A&M University.
Coaching Certification from Hudson Institute of
Santa Barbara.
Style
: Professional, insightful,
1972-1997: HR Director, Levis USA.
1997- 2008
: Senior Director Global Organization and
Leadership at Nike, Inc.
2009- Present : Business Advisor and Executive Coach at
Bois DArc Leadership.
Executive part of top management: Yes, he is. He has held
senior HR leadership roles in Nike, Inc.
15.

Knowledge
: Apparel, product development, business
development, merchandising, marketing strategy,

business strategy, consumer goods, sports goods,
Skill
and cross functional team.

: Leadership, managerial, specialist business
strategy, strategic planning, marketer

Background:
1987-1991: Bachelor of Commerce at Queens University
1994- 1996
: MBA at Harvard Business School
Style: tactical, realist, professional, creative, marketer
1991- 1994
: Associate Product Manager at Colgate
Palmolive Toronto, Canada.
1996- 1997
: Associate at Corporate Decisions Inc.
1997- 1998
: Senior Associate at Mercer Management
Consulting
2000- 2002
Systems.
2000- 2006
: VP Marketing &Profl Services at TeamOn

:
Strategic
Planning
Director
Womens fitness at Nike, Inc.

2006- 2008
: Business Development
Global
Director
US
Apparel at Nike, Inc.

2008- 2009
: Merchandising Director US Kids Apparel
at Nike, Inc.
2009- 2013
: Global Category Apparel Lead- Young
Athletes at Nike, Inc.

2013- 2013
:
Senior
Director
Apparel
Process
Innovation at Nike, Inc.

2013- Present : GM Nike Sportswear Central & Eastern
Europe at Nike, Inc.
16.

Knowledge
:Product design, fashion design, creative
textiles, trend forecasting, project management,

Skill
apparel design, concept boards.

: Leadership, managerial, product design,
creative planning
Background
:1988-1990, BS, Fashion Design, Fashion
Style
Institute of Technology, University of Oregon

: genuine, creative, inspirational, listener,
cooperative, trustworthy
1990- 2006
: Creative Director Nike, Inc.
1990-2008: Global Creative Director Womens Footwear,
Apparel and Equipment Nike, Inc.
2009- Present : Creative Director Interior and Product
Design Self Employee Consultant
17.

Fitness
Knowledge
Skill
: Brand development, marketing strategy,
sports goods, strategic planning

:
Leadership,
managerial,
marketer,
branding concept
Background
:
September 1995 December 1996 MBA, Business &
entrepreneurship Babson college
MBA Babson College Franklin W. Olin Graduate School of
Business
Style
: professional, creative, inspiring, initiatives
2015Present
: VP/GM Running North America Nike, Inc.
2008Present
: Running Global Brand Director & London
2012 Olympics, Nike, Inc.

2012 2015
: VP Brand Management Western Europe
Nike, Inc.
2006 2008
: Global Brand Director. Beijing Olympics
Nike, Inc.
2005 2006
: Global brand concept director Nike, Inc.
2004 2005: US Brand Marketing Director Nike, Inc.

2001 2004
: Regional Brand Manager Nike EMEA
18.

and Development
Knowledge
:operations
business
planning
Skill
strategy,
development,
and
retail
strategy,
purchasing,
inventory
management,
supply
chain
performance management.
:supply chain strategy consulting, engineering
process management
Background
:
1991 1993
: MBA, International
University
1987 1991
B.S.,
Operations
Business,
Research/
Sophia
Industrial
2003
Engineering, Columbia Engineering

: Certifications APICS: American Production and
Style
Inventory Control Society, APICS

: genius, tactical, out of the box thinker, business
speak, deep in technology knowledge

2012Present
: Senior Director, Emerging
Markets
Demand Planning & Inventory Management Nike,

Inc.
2011 2012
: Senior Director: Sales and Operations
Planning Nike, Inc.

2007 2011
: Senior Director, Global Replenishment
Nike, Inc.
2003 2007
: Global Sr. Director of Supply Chain
Strategy & Development Nike, Inc.

2000 2001
:
Vice
President,
DevelopmentSupplycahinge.
1996 2000
: ManagerDeloitte Consulting
1993 1996
:AccentureSenior Consultant
Business
19.
Jodi
Sittig,
Marketplace
Development
Director
Global
Womens Fitness
Knowledge
:Marketing
management,
strategy,
marketing
marketing
integration,
sports
goods, brand development, sales strategies, retail

Skill
and merchandising.
: Marketing strategy, brand development,
marketing specialist
Background
:
1986 1990, Bachelor
of
Science
(BS),
Fashion
Merchandising, Kent State University

Style
: Professional, serve the best
2011Present
: Senior Global Brand Director- Access to
Sport Nike, Inc.
2009 2011
2007 2011
2003 2005
Executive part
20.
: Global Brand Director Nike, Inc.

: Brand Marketing DirectorNike, Inc.
: Brand ManagerNike, Inc.
of top management: Yes, she is.

Knowledge
: Brand development, sports goods, market
consumer,
Skill
Background
: Business Strategic, Marketing

: B.S in Economics from Colorado College
and MBA from Northwestern Kellogg School of

Business.
Style
: Humorist, professional, learner
International experiences: Director of Market Intelligence,
GM of Accessories Business, Marketing Director for the
Jordan Brand, Director of Strategic Planning for the U.S
Region, Director of Strategic Planning for Subsidiaries, and

Director of Consumer Insights. Before join with Nike, She
worked at Pillsbury McKinsey & Company and Wilson
Sporting Goods.
21.

Technology
Knowledge
:Operations
strategic
planning,
development,
Skill
management,
supply
forecasting,
operational
chain,
product
excellence,
E-
commerce, logistics, and

:OPM consultant, business strategy, business
development, and process improvement.

Background
:
1990 1992
: MBA, UCLA Anderson School
Management
1983 1988
Drs.
Econometrics,
VU
of
University
Amsterdam
Style
: creative, professional
1999Present
: VP operations and administrations, VP
global operations and technology, Corporate VP,
Executive, Nike, Inc.
1992 1998
: CPO, Shared Services, EVP Supply Chain,
Technology, COO EMEA, Consultant, McKinsey &
Company
1988 1990
: Business Analyst, NV Indivers
22.

for the EMEA Region
Knowledge
:Business development, marketing, sports
goods, sales management, sales strategy, retail,

product innovation, brand leadership and sales
development.
Skill
:sales strategy, business strategic planning.
Background
:Indiana University of Pennsylvania.
Style
:competitive, perfectionist, speak to the point,
walk the talk, critical thinker.
International experiences: 2007, Nike appointed Zeedick as
GM of Equipment for the Nike Brand. 1984-2006, GM of
Equipment and womens for EMEA, GM of Nike Canada,
Director of Sales for America, Global Director of sales and
training development, National development sales director
for the U.S, Western Regional Apparel Sales Manager,
Territory Sales Manager in the Rocky Mountains Region,
Nike, Inc. Prior worked at Nike, Pat has joined as GM at
Joslins Department Store in Colorado.
Top Managements Responsible For The Corporations

Performance Over The Past Few Years
1.

She has responsible for:
-
Provides strategic direction for womens business
Led global strategic Nike womens fitness business for

product development, innovation, merchandising, funding,
retailing, etc.
Organizethe entire apparel organizationincludes three

sub-brands for Nike apparel: Nike Performance Nike
Fusion, and Nike Women.
Led the business development and growth of the global

womens business
Led Nikes Global Womens Leadership Council.
Develop
semi-virtual
organization
matrix
for
global
womens fitness business to maximize cross-functional

business units.
2.
Darcy
Winslow,
Global
General
Manager
for
Womens

-
Leads the global womens fitness team to develop new

business strategy with new products to catch new market.
Implement
integrated
strategy
approach
in
global
womens fitness business.

-
Building the global womens footwear for approaching the

womens market emerged.
Led micro-segmentation approach to specified product

category based on sports activity and core products.
3.

He has responsible for:
Established Global HR strategy to optimize organizational

structures, positions, peoples, and key resources.
Solves
organizational
matrix
complexity
in
global
womens fitness business

-
Organizational
structure
assessment
and
resources
planning
4.

-
Led new strategic planning in Change the Game

challenge to evaluate the womens fitness project.
Led the research in global womens fitness business to

redefine the business target.
Develop
overarching
plan
for
approaching
womens
market segment.
-
Drive integrated approach to support the womens fitness

business teams
5.

-
Led creative direction for womens fitness business
Led creative teams to solve the problems for womens

fitness consumers.
6.

Fitness.
-
Develop integrated business concept for womens fitness

business through global functions and regional level.
Build key marketing concept includes the marketing

strategies, products and seasonal marketing plan across
the world.
Lead marketing strategy for cross-business collaboration.
Develop and implement global marketing concepts for

primary global brand and all merchandized products. E.g.
Goddess Store/Nike Women
Develop executions plan to actualized the marketing

strategies such as Integrated marketing campaigns in all
media (TV commercials, digital marketing, magazine,
social connections). E.g. If You Let Me Play campaign.
Develop Nike global womens fitness business for longterm strategic planning.
Led and controls the EMEA regional marketing strategies

and periodical executions plan of Nike apparel brands and
womens fitness campaign.
7.

and Development
Organize
supply
forecastingdemand,
chain
management
purchasing
consist
schedule,
of
inventory
management.
-
Develop advanced system inventory management
Led effort to integrated inventory management across the

worlds and region.
Stimulate cross-functional metrics to optimize business

performance.
Initiate
to
cross-business
manufacturing-partners
to
collaboration
increase
with
productivity
and
reduce risks-costs of supply chain among global and

regional level.
-
Improve inventory planning system and reduce stock out.
Develop
integrated
operational
strategic
planning
includingstrategic planning reviews, seasonal reviews,

etc.
-
Lead global and regional operations strategy on adaptable

supply chain models to deliver integrated products to
market on dynamic timelines.
Managing supply chain assessment to evaluate supply

chain performance. E.g. key metrics/ scorecards.
8.
Jodi
Sittig,
Marketplace
Development
Director
Global
Womens Fitness
-
Develop the concept customer service approach of Nike

Goddess, Goddess Store or Nike Women.
Develop and execute the new retail and merchandising

strategy
9.

-
10.
Develop strategic planning in Nike

Technology
-
Led Nikes supply planning, sourcing, manufacturing, and

delivery mechanism across the regional business units.
Develop advanced supply planning system to deliver the

core of integrated collections of womens fitness footwear,
apparel and equipment products to the distribution
channels.
11.

for the EMEA Region
Shehas responsible for:
-
Develop long-term strategic planning and plot target to be

achieved in this capacity as GM.
Assessed the integrated collection of womens fitness

development and make sure that the plans got the key to
be success.
Drive womens business to deliver integrated collections

at the regional level, EMEA.
Top Management Has Established a Systematic Approach to

Strategic Management
Grossman, Winslow, and the top management team cooperate to
established global womens fitness business to get the biggest
growth opportunities in womens market segment. The top
management believes that the womens fitness business will
optimize company performance in global sportswear industry. But,
Nike has very complex multidimensional business and complicated
organizational matrixed. So, when the teams develop new business
in new market segment, their led the womens fitness teams with
systematic approach to clearly define the strategies. There are
several new strategies to drive global womens fitness business.
1)
2)
3)
4)
5)
6)
Category-driven approach
Consumer-oriented approach
Integrated collection-based approach
Centralization system of product development
Integrated cross-business collaboration approach
Micro-segmentation approach
These approaches would be the strategic ways for Nike womens

fitness team to bring new breakthrough innovation to the global
markets. Systematic approaches help the team to brief the
strategic planning into more attainable goals.
Top Managements Level of Involvement in The Strategic
Management
The top management led the transition from strategic planning into
strategic management in which environmental scanning lead to
strategy formulation, strategy implementation, evaluation and
control. People at all level are now involved.
Trevor Edwards, currently the EVP of Brand and Category

management, will become the new Nike Brand President leading
all category and geographic business units, the Jordan Brand,
Action Sports which includes Hurley International Digital Sport
and brand management throughout the world. The team reporting
to
Edwards
will
be
organized
to
optimize
an
integrated
marketplace and will now include Nikes wholesale, retail and ecommerce operations.
Eric Sprunk, currently the EVP of Merchandising and Product, will
become
Nike,
Inc.s
Chief
Operating
Officer
leading
all
manufacturing, sourcing, IT and procurement for the company. In

this role, Sprunk will also continue to oversee the companys
efforts to drive innovation in the supply chain. Hans van Alebeek
will remain EVP of Global Operations & Technology reporting to
Sprunk.
Jeanne Jackson, currently the President of Direct-to Consumer, will
become President of Product and Merchandising, leading Nikes
product engines and merchandising. Jackson will be responsible
for driving the strategy for creating all footwear, apparel and
equipment for the company and leading the merchandising of
product to the global marketplace.
Dr. Thomas Clarke, currently the President of New Business
Development, will become President of Innovation. He will lead
Nikes Advanced Product Innovation Teams and the Sustainable
Business & Innovation (SB&I) team. Hannah Jones will remain VP
of SB&I reporting to Clarke and will continue to report to Parker
on policy matters relating to sustainability and labor practices.
Edwards, Sprunk, Jackson and Clarke will report directly to Mark

Parker, Nike, Inc.s President and CEO, along with Parkers current
direct reports including Hilary Krane who becomes EVP, Chief
Administrative Officer and General Counsel, Don Blair, EVP and
Chief Financial Officer, David Ayre, EVP of Global Human
Resources, John Slusher, EVP of Global Sports Marketing, Jim
Calhoun, President & CEO of Converse, John Hoke, VP of Global
Design and Tinker Hatfield, VP of Creative Concepts.
The Interact between Top Management-Lower Level

Managers and Top Management-Board Of Directors
The top management are controlled by Board of Director, and top

management
are
monitoring
lower
management
directly.
Employees could give the feedback for the management system.

For example, Manager is an upward feedback tool that Nike
launched in FY12 to provide managers with insights from their
employees about key strengths and opportunities to improve
according to the four core principles of our manifesto. Managers
can use the feedback they receive to create a customized plan for
their growth and development. In late FY14, Nike will begin to roll
out the tool more broadly in 14 languages. Manager Journey is an
end-to-end digital experience we plan to launch in FY15. It will
provide
NIKE
managers
with
increased
visibility
into
best
practices, tools and resources they need to effectively manage

their teams.
Nike also make monitoring by giving relevant survey among

workers that asks 70 questions to an employee about demographic
information, employees perception of pay and benefits, health and
safety, management culture, hours worked, their empowerment as
employees and general job satisfaction. Until now most of them
was satisfied.
Nike believes that they can make stronger two-way communication
between upper management and lower management. Because in
manufacture business like Nike, the engagement between its
employee really important and it is also affected to the creating of
innovation inside the company.
The
Board
of
Directors
(the
Board)
of
NIKE,
Inc.
(the
Company) has adopted the following Corporate Governance

Guidelines to assist the Board in the exercise of its responsibilities.
These Guidelines reflect the Boards commitment to monitor the
effectiveness of policy and decision making both at the Board and
senior management level, with a view to enhancing long-term
shareholder value. These Guidelines will be reviewed annually by
the Nominating and Corporate Governance Committee and the
Board, and are subject to modification from time to time by the
Board. Waivers of these Guidelines may be made only by the
Nominating and Corporate Governance Committee or the Board.
Frequency of meeting- There are five regularly scheduled
meetings of the Board each year. Meetings may be held in locations
that present opportunities to expose the Board to various facets of
the Companys business, are related to other Company business, or
connected with a shareholder meeting
Agenda for board and committee meeting- The Chairman of

the Board, and the Chairs of the Board committees, set the agenda
for Board and committee meetings, respectively. Directors are
invited to suggest inclusion of items on the agenda, and are free to
raise at any Board meeting subjects that are not specifically on the
agenda. Materials related to agenda items are provided to
directors
sufficiently
in advance of Board meetings, where
necessary, to permit directors to review and prepare for discussion.

Attendance of management at board meeting- At the invitation
of the Board, members of senior management recommended by the
CEO attend Board meetings or portions thereof for the purpose of
presenting
information
regarding
particular
matter
or
participating in discussions. The Board is free to excuse members

of senior management from meetings at any time.
Executive
sessions
session
or
on
meetings
non-employee
of
meeting-
non-employee
Executive
directors
without
management present are held at least once each year. The

responsibility to preside as chair of the executive sessions or
meetings is rotated among the Chairs of the Board committees as
designated
by
the
Nominating
and
Corporate
Governance
Committee. This practice provides for leadership at all of the

executive sessions or meetings of non-employee directors without
the need to designate a lead director.
Nikes Strategic Decisions are Made Ethically in A Socially

Responsible Manner
Nike has positive mindset about Corporate Social Responsiblility.
Nike believe that Corporate Social Responsibility is a good things
to do to support companys growth and innovation. Besides that, it
becomes an integration of how brand power, Nikes people
potential, and Nikes business scale can be used to give a valuable
change to the environment.
Nike has CSR that related to its designs, sourcing, operations, and
consumer experiences function. Nike has long term goal which is
targeting to focus on three area for 2011. First is improving the
contract factories working condition by integrating business
approach
in
the
supply
chain.
Second
is
minimizing
the
environmental waste, which is caused in both Nikes own factory or

Nikes contract factory through sustainable in the innovation of
product and supply chain. And the last is using its brand power as
a media to give the importance of sport to not only youth around
the world. So, with this targets Nike will do activity such as
innovation, design and production, which is integrated with these 3
things. The purpose is for the goodness of the company and also to
create meaningful effect to the environment around the world.
Nike has made CSR committee of the board of director in 2001
which has function to review the policies and give recommendation
about labor or environment, community affairs, foundation and
charity activity, environmental and sustainability activities in the
meetings. This committee have 3 meeting each years to make
strategy in corporate social responsibility. In 2006 the member of
corporate social responsibility committee are Jill Ker Conway,
Douglas G. Houser, Jeanne P. Jackson, John R. Thompson, and

Johnathan A.Rodgers.
Nikes Strategic Decisions are Made in An Environmentally

Sustainable Manner
In nike long term target, Nike has aim to minimizing the waste
made by its manufacturing process to the environment. So, in
every decision made by Nike it will be based on the environmental
effect besides on social effect. Nike focus on solving the problem
from the root rather than fixing what problem that has been
Tccurred or its symptom.
One of the way to eliminate waste is from its whole supply chain.
Nike implementing sustainability for all of its innovation. This
innovation will improve the quality and design of the product while
have good effect on the environment sustainability. Nike has some
target for 2011 in order to eliminate the waste there are increasing
the manufacturing above the sustainability standard index, run the
business process that produce low effect to the climate change,
decreasing 17% of its waste, and decreasing 30% in packaging
and purchasing waste.
By implementing this focus, From 2005 2006 theres a significant
number of changes in eliminating environmental waste. Until 2006,
Nike has reach some changes in eliminating solving problem from
sustainable material, chemistry, waste, water, climate change,
business processes, and packaging. In sustainable material, nike
use rubber that more than 50% of it is environmental friendly and
also 52% of all cotton-containing garments contain minimum 5%

organic cotton. For chemistry, nike try to reduce pvc usage by
working with ink supplier and printer. In waste, nike make waste
mapping in their supply chain around the world and then they will
implement the strategy from the most prioritize part that produce
waste in this mapping. For water, nike expand the number of
suppliers to 282 in the apparel program. For climate change, nike
eliminate the production of nitrogen in all nike air product. In
business process, nike educate its designers to make sustainable
innovation in every product design. In this part, nike found better
solution for its product by making new technique and development
in technology. For example is when nike want to eliminate the use
of F-gas it leds to the making of Nike Air Technology which is
represented the most significant innovation in the company
product. For packaging, nike also make mapping of the packaging
footprint then implement the strategy in it.
Stock of Top Executives in The Corporation

Some of them have stock in the NikeCorporation. Mark Parker,
Trevor Edwards, Jeanne P. Jackson, and Eric Sprunk. Theres 2 kind
of stock they can get:
1. Stock Options. Mr. Parker was granted an option for 165,000
shares. Edwards, and Sprunk and Ms. Jackson each received
an option for 75,000 shares. Each award vests equally over
four years.
2. Restricted Stock. Mr. Parker received an award in the
amount of $3,500,000. Mr. Edwards received an award in the
amount of $750,000. Sprunk and Ms. Jackson each received

an award in the amount of $625,000. Each award vests
equally over three years.
Nikes Top Management is Sufficiently Skilled to Cope with

Likely Future Challenge
The
Top
Management
have
qualified
innovators,
designers,
engineers, and also leaders. Theyll bring Nike Inc. into the next
level of a global company. Most of top management have broad
experience in International business both in Nike, or another
company. This makes top management know well the condition and
situation of the market, future challenges, how to manage the
corporate. Because of that, this top management experience lead
them to organize well in the strategic that must be plan and decide
by the company. For Example, Phillip Knight have been worked in
Nike since 1968. He know well the condition of Nike and it really
help him as president to decide what strategy that his company
should create.
III. External Environment: Opportunities and

Threats (SWOT)
A.
Natural Physical Environment: Sustainability Issues

There are several forces that affect the corporation and the
industries in which it competes. Below is the explanation of those
several forces:
CLIMATE
Climate change is one of the natural forces that affect the
companys overall production. It can cause the problem in water
supply due to fluctuating rainfall pattern. Water supply affects the
growing condition of cotton that is one of the main raw material in
Industry ofwomen sport apparel. If there was any problem in the
water supply, the cotton will end in bad quality. In other case, fresh
water scarcity can be a threat for industry.
In sales point of view, drastic climate change gives unexpected
shifts in customer preference that affects the companys sales. For
example, if it became snow in one country, industry ofwomen sport
apparel sales will increase because people will do some routine
exercise to make their body warm. They will buy double products,
such as sports bra completed with sports jacket. Unfortunately,
these climate changes give the bad impact towards distribution.
The distribution will be delayed by the climate changes.
WEATHER-RELATED EVENTS
Bad weather such as heavy rain could be a disaster in cotton
growth as the main material of women apparel. Besides, floods and
extreme
rainfall
intensity
may
interrupt
the
supply
chain,
distribution, and transportation of finished products and raw

materials.The cotton growing areas have to come up with irrigation
schemes in order to maintain the water supply level so it can
minimize the damage.
But, this force (sudden weather changes) can be used by industry
to maintain sales by having different apparel for each seasons and
weather conditions. It
means that industry will always
have to
provide an innovative product each seasonto maintain their selves

in the industry.
SOLAR PHENOMENA
Solar phenomenasare natural phenomena that happen caused by
the magnetically heated outer atmospheres in the sun. The
example of solar phenomena are radio wave flux, solar wind,
energy bursts such as solar flares, coronal mass ejection or solar
interruptions, coronal heating and sunspots. These phenomena
could lead to a delay production women apparel industry and it
causes a decrease in sales. However, once again, by adjusting to
sola phenomena on specific location, industry could get additional
sales.
B.
Societal Environment
There are general environmental forces that currently affecting
both the corporation and the industries in which it competes.
Below is the explanation about the forces:
ECONOMIC
Womens sportswear industry must aware of the economic decline.
The economic recession could affect overall industry growth and
development. The Economic downturn in one country could make
customer demand decreases significantly. In other cases, if there
were any changes in oil prices, global womens sportswear
industry will also get the impact of it, as high price of oil means
that the supply chain and transportation cost increase. (Current
Threat).
TECHNOLOGY
The sports industry are growing in a fast rate especially with all of
the new technology that come into the sports equipment and
sportswear, this could be a great opportunity to be seized by
applying new breakthrough and innovation happening on new
sport science and material science for even lighter material and as
this field is start to be looked upon by many industry, the growth
and new innovation are happening quite frequently for industries
to utilize it. However, it is to be noted that the research and new
science could be seized by another company within industry.
(Current and future opportunity)
In addition to that, with the recently discovered Just in Time and

lean operation method for the supply chain and operation practice
by utilizing computer and information technology could affect the
business model of whole sports industry including Nike which
could adapt with it. (Current opportunity)
POLITICAL-LEGAL
As on this industry most of the businesses rely on outsourcing and
off-shoring for their production system, global sportswear industry
must keep them on considering the legal aspect if they outsource
the manufacturing plant. However, by doing outsourcing off-shore,
the legal aspects is more challenging and within industry more
cautious consideration should be made to prevent any sue.(Current
and future threats).
SOSIO CULTURAL
New market are started to emerge in modern era where female are
started to be considered on the equal footing. That market is
women market, with women are starting to be more active in this
decade more than they did on the last century, their market growth
is constant as a lot of women try to get their own footing and it is
so attractive for many industry with its future prospect (Current
and future opportunity)
C.
Task Environment
Task environment is external environment of an organization which
affects its ability to reach business goals. Below the task
environment analysis based on Porters five forces model, a

framework
for
industry
analysis
and
business
strategy
development. This five forces include threat of new entrants,

bargaining power of buyers, threat of substitute products or
services, bargaining power of suppliers, and rivalry among
competing firms. The five forces included in this model help to
determine
the
competitive
intensity
and
therefore
the
attractiveness of a market.
1. Threat of New Entrants
New entrants are relatively hard to get into the same scale of
Nike with its global size even with the market challenger, thus a
new entry could not give a high threat towards Nike. However
as Nike is established in global market means that Nike could
have many threats from new entrants on small area (sporadic)
new entrants as the barrier from local area tend to be small or
insignificant. Distribution channel itself on the global scale need
a lot of capital and hard to be established.
Along with all Nikes experience, it is able to cut its cost to a low
one along with the utilization on economies of scale along with
its global scale of production and a lot of supplier to let their
cost run even lower coming through their experience in the
industry. In addition to that, by experience, come more expert
and skilled people within Nike itself, leading to economies of
learning for Nike.
In conclusion threat of new entrants is more likely to be low
since Nikes customers have had a strong brand loyalty over
time. It causes new companies are hard to get into the industry
as a significant competitor. Moreover, the experience and
history of Nike along with the market challenger that has been
large also make the others hard to gain popularity and make
sales in the industry as consumers value image already been
established. Nikes top brand gives the entrants some difficulties
to access distribution opportunities from their agreements and
contracts with schools, athletes, teams, and retailers. So, theres
just a little opportunity to compete with the large firms in the
industry such as Nike.
2.
Bargaining Power of Buyers
Nike as a global brand which hope to inspire people to be

active, have a business model of business to customer selling,
thus the meaning of buyer here is their all of their global
customer and women who wear Nike as their sportswear
specifically. A B2C business model in addition does not let
customer to interfere with Nike business function.Furthermore,
with the brand as one point of differentiation of Nike, giving
customer sense uniqueness towards Nike, make the customer
quite dependent with Nike and give pressure towards buyer
bargaining power.
Bargaining power of buyers is really limited in this industry; the
customer number all over the globe is relatively big if it is
compared to the firm within industry and in addition to that,
each customer make purchase on relatively small purchase as it
is a sportswear which not need to be purchased frequently.
Thus, could be concluded that the bargaining power of buyers

toward Nike is quite low.
3. Threat of Substitutes
Threat of substitute is one of the Porters Five Forces that
evaluate the competition intensity in one industry that produces
the substitute product or service toward Nike womens sport
apparel core product. The example of Nike substitute in this
case are other women apparel which still could be used as
active outfit such as casual clothing from Calvin Klein casual or
Burberry brand.
The threat of substitutes have moderate effect on Nikes
apparel woman product and it can be explained as follow:
a. Nikes substitute products such as trousers, daily
underwear, long sleeve, skirt, and heavy jacket have
performance limitation eventhough they can give better
price. The price stated doesnt mean that those substitute
products sell comfort and design.
b. Nikes customer are athletes and people who love sport,
thus Nikes customer will not substitute their Nikeshigh
quality and comfort apparel with another apparel (e.g :
Women prefer to purchase Nikes sport bra than daily bra
to support their sport activity).
c. But, it cannot be denied that Nike still have real
substitution like daily underwear (daily bra) and long
sleeve shirt for moslem customer.
d. There is also fact that the customers will be free for incur
costs in switching to another substitutes.
4. Bargaining Power of Suppliers
Bargaining power of suppliers is the existence of how powerful
the supplier are to negotiate the price of the raw material
required by industry and willingness to work on the needs of an

industry.
The bargaining power of supplier towards Nike is low and it can
be explained as follow :
a. All inputs of Nikes women apparel are standard but it
also has been standardized for guarantee the quality.
b. Nike can switch between suppliers quickly and has no
significant impact for Nikes capital because Nike is
strong brand and has potential suppliers all over the
world.
Nike
has
distribution
and
sub-contractors
mastery, cheap labor and raw materials, low tariffs and

duties of a country, and Nike also had 565 contract
factories in 46 countries.
c. Suppliers would find difficult enough to enter Nike
business. Although the material is standard, but Nike has
severeal criterias in selecting reliable suppliers.
d. Nike has many potential suppliers all over the world,
because Nike is a needed company for many sport shoes
supplier due to Nikes existence.
e. Nike is important to its supplier because Nike always
order in large amoount.
f. Nike has a lot of supplier spread across the world, so Nike
can press the price of the raw material at the lowest price
from its suppliers.
g. But, Nike couldnt substitute the input readily, because
the main material for women apparel is cotton.
5. Rivalry among Existing Competitors
Rivalry among existing competitors is the power to which firms
within an industry give a pressure on one another industry and
limit each others potential of profit or even steal the market
share of targeted industry. In Nike industry of women apparel,
the other potential competitors are mainly Under Armour and
Adidas which potentially start to intensify themselves on

womens apparel and sportswear market.
Nike faces a moderate rivalry among existing competitors and it
can be explained as follow:
a.
b.
c.
d.
e.
f.
g.
h.
i.
j.
Nike believes that the woman apparel industry is growing

rapidly because women starts to aware of their health but
want to keep stylish in doing the sport.
Nike has big variable cost rather than fixed cost
The other competitors has been diversified their design
and target market, such as Under Armour and Lululemon
Athletica, which focus on niche market segments such as
performance apparel and yoga-focused apparel.
Nike specialized in product design and high technology to
diversified its product and also understand its customer
needs.
Nike is a cyclical industry and always expands its capacity.
Most of Nikes competitor has been known worldwide.
There are large incumbent competitors who are trying to
be the favorite one and strong one.
Nikes competitors give almost the same models, the differences
only on its design, color or logos.
It will be hard to get out of this business (sport business in
large area) due to its big capital, market share, and also
long term-contract.
The customer doesnt incure cost in switching to a
competitor.
6. Relative power of unions, governments, special interest

groups, etc.
Relative power of unions and governments are high especially
because the amount of the workers being employed and the
regulation from the manufacturing-based country. Governments

in some countries have strict measures for multinational players
and in some regions. The forces itself is applied globally, but
from one country to another it is varied.
Key factors in the immediate environment are customers and
shareholders, both of them are driving Nike to grow and sustain
even more, because Nike concerned about the customers so
much and based all the products on comprehensive market
research and the shareholders drive Nike to make a profitable
and valuable strategic decision.
Here are the current or future threats:
1. Competitors are the threats as they could take the market
share as they grow, innovate, and develop new brand and
techniques. Competitors could give lower price with better
quality to beat Nike. (current and future)
2. Labor unions are the threats as they are more likely to give
additional cost and capable to sue the company. Besides,
there is a potential threat in which the increasing of
production cost especially in rising its raw material costs.
(current and future)
3. Government has the authority to close any business in the
industry in particular country if there were any sues of the
union or another party is realized (future / potential)
4. Economic could be a threat due to its recession because it
may
lead
to
job
shortages
in
industry
and
even
macroeconomics. (current and future)

5. Consumers especially women consumers tend to be savvier
and looking for discounted items.(Kartajaya, 2014)
6. Natural and Society environment could give a bad impact on

industrys production activity.
Here are the current or future opportunities:
1. Women nowadays become more aware of doing exercise
tomake their body keep fit. Besides, they want to look stylish
and fashionable while doing exercise.(Kartajaya, 2014)
2. Scienceand research able to develop new technology and
thus giving the opportunity to industry to seize and utilize it.
(future)
3. Creditors are more likely to give credits to industry with
global market as it has high stability. (future)
4. Trade associations can give a great opportunity
in
cooperation (current and future).

5. Local communities can be a great opportunity as a potential
of big market and supporter on firms at industry (current and
future).
6. Industry market tendency to stimulate one generation to
advocate their next generation, thus stimulate growth on the
long run.
7. Natural environment could be an inspiration of industrys
design for women apparel product.
D.
Summary of External Factors (EFAS)

Below is the summary of all external factors listed above, their
degree of influence towards Nike, and how good Nike could
response to it in term of rating which is scaled from 1 (poor) to 5
(outstanding) within each external factor. In addition total of the
weighted score will be used to determine how good Nike seize
opportunity from external environment or avoid any hindrance
from external threats. Any external factors considered as
insignificant or could be a Force majeure. With that being in mind,
there is additional coding (e.g. O1 which stands for Opportunity

number 1, etc.) imprinted on the right of the external factors to
help on further analysis and identification at chapter V.
Table 3.1. External Factor Analysis Summary
External Factors
Weig
Ratin
ht
Weight
ed
Score
Comment
and
Rationale
Opportunitites
The weight of 0,2 is
given
towards
innovation
and
technology
development
because
it is one of the most

important
Nike
Innovation
Technology (O1)
and
0,2
point
history
in
and
strategy, it is one of
the
point
that
give
Nike their competitive

advantage, and Nike
always able to seize
any
new
innovation,
technology
making
their performance to
be
outstanding
(5
rating).
Creditors Trust Towards 0,05
Nike (O2)
0,2
Nike with its size and

capital
acquired
through its profit all of

this time is not really
dependent
towards
creditors
(0.05
weight),
nevertheless
means that Nike dont

have
enough
credibility
from
and
trust
creditors,
the
creditors would likely

to
lend
them
fund,
with their A1 rating of

excellence
on
debt
(thus 4 score).
The
new
market
emerged
of
fitness
category
happening
last
New emerged market of
women fitness category 0,05
(O3)
0,15
women
few
since
is
the
years
and
some
company
has
been
being
the
in
category on a small
scale
with
thought
that it is hard to give

huge revenue increase
(weight
However,
0,05).
Nike
has
started to go into the

market since the first
time
they
realize
it
and currently be the

first one to goes into
this category globally
(3 score)
Once
again,
communities
local
are
an
opportunity which give

Nike additional place
of sales and advocate,
Local Communities (O4)
0,05
0,15
yet it is not their main

target (0,05 weight),
even though with their
above average mouth
to mouth marketing on
local communities (3
score)
Regeneration
of 0,05
Customers (O5)
0,15
In the industry which

each
choice
generation
affect
generation
next
choices,
Nike is quite capable

on
passively
encourage
its
customers to advocate
Nike
towards
their
own kin and family (3

score).
However
it
never be the focus of

Nike activity as Nike
doesnt dependent on
it, it focus on give new
innovation
on
every
generation
by
itself
(0,05 weight).
Threats
Competitors
or 0,2
substitute (T1)
0,8
Competitors is always
have been what threat
Nike
the
especially
most,
on
competitive
the
global
industry, Nike need to

outperform
or
differentiate
their
from
fellow
global
firms and local firms

all over the globe in
order to keep itself as
the market leader (0,2
weight), even so, Nike
handsomely still able
to keep itself as the
market
most
leader
of
outperform
the
and
time
their
competitor with Nike
differentiation
cost
and
advantage
(will
be further explained in
internal analysis)
Nike
have
number
of
large
off-shore
factory and thus the

influence
of
labor
unions from different

country
or
even
different factory could

Labor Unions (T2)
0,05
0,1
not
influence
Nike
very
much
(0,05
weight). Even so, Nike

treat their employee
with
minimum
cost
most of the time and

often leading to labor
union
reports
of
protest (2 score).
Governmentand
legal 0,05
aspects (T3)
0,15
Government and legal

aspects
could
affect
Nike business activity

to
certain
degree,
however as a global
company,
government
the
of
one
country could not give
many
influence
towards Nike business

(0,05 weight), even if
they
could
it
never
happened to the level

Nike got banned or
something similar at
certain
country
(3
score).
Economic
condition
affects
Nike
quite
much
as
when
economics goes down,

the buying power of
customers
Recession
Condition (T4)
Economic
0,1
0,4
will
go
down too (0,1 rating).

However, with its loyal
customer base, it can
only influence Nike to
certain
degree
recession,
reach
on
unless
it
level
of
the
crisis (4 score)
Consumers
characters 0,2
(T5)
Customer
is
always
been the main point of

Nike
consideration
and base of action (0,2

weight).
However,
within the customers

of market, especially
women market, there
could
be
additional
threats brought from

the market itself like
customers
characteristics
undetected
and
desire
which could lead to

company
Even
so,
downfall.
Nike
has
always been able to

understand
customer
their
well
and
adapt with it on the

best manner (5 score).
TOTAL
4,1
From the EFAS table above, the total point of opportunity and
threat element is 4,1. It means that Nike as an organization able to
perform on excellent manner towards opportunity-taking and
avoidance of threats which could hinder their performance. In
addition to that, with this score it can be concluded that Nike is
quite an adaptable learning organization.
IV. Internal
Environment:
Strengths
and
Weaknesses (SWOT)
A.
Corporate Structure
Nike
corporate
structure
is
using
matrixed
organization
structure, along with a handful of global functions (sales, brand,

customer service, operations, logistics, etc.). The second dimension
is Nikes four geographic area and the third dimensions are
represented by the product of sports categories.
Picture 4.1. Nike Organization Structure Example
The
diagram
above
represent
Nikes
matrixed
organization
structure, but it is still lack the third dimension of the business

region.
As the structure is matrixed, the decision making and priority
setting were mainly done by each products category to keep the
Nike desire and mission to optimize innovation and execution
around its primary products. The collaboration of each products
team usually happened to some extent.
B.
Corporate Culture
Nike was built with a simple main culture, hat is to do innovation.
They were able to make their culture on innovation clear since
fiscal year of 2005 and 2006, and after that Nike were able to
develop even more in the context of innovation based on what their
website stated. In addition to innovation as their culture, the CEO
also stated that every employee must be themselves in another
word they must say no if it is should be that way so that the idea
can be enhanced through several rejection before being accepted
and it can lead to better result of innovation.
After that there are no more clearly stated corporate culture,
however, there are some corporate culture being implied by certain
articles to said that there are several corporate culture within Nike
that was built based on the Innovation culture, that is to make
every employee feels that they are being worthy, to make Nike as
something all of employee care like family or their own tribe, and
to be like a sponge, evolve and yet simplify everything.
C.
Corporate Resources
MARKETING
MARKETING STRATEGY FORMULATION
OBJECTIVE
Optimizing innovation and execution around its primary

products
Bring a womens perspective to its running category as

more and more women were becoming active in that
sport.
STRATEGIES
Endorsement strategy:Excellent marketing campaigns

featuring popular athletes.
Present in all major world sports events
Spend more time listening than talking strategy: Trying

to influence people to earn customers trust by really
listening and helping them by adding value
POLICIES
Decentralized product development in apparel
Policies for the womens fitness business:
Make believers out of these kinds of supporter and

skeptics alike.
No longer about providing training products to female

consumers.
Create at the point of the consumer touchpoint the

experience that we wanted the consumer to have was
the biggest issue
PROGRAMS
Program for Endorsement Strategy
Endorsement
contracts with female athletes such as Sheryl Swoopes,

Lisa Lesli, Gabrielle Reece, and Mia Hamm
Build Women-only Destination
: Nike Goddess store
which offered footwear, apparel and equipment to its

customers, loosely unified via Nikes corporate color
palette
Make a larger assessment project called which was

called Change the Game
1. Knowing the five high potential opportunities from

outdoor, bags, mens training, calve footwear, and
women had that would take to outpace growth in the
rest of business and drive the companys next leap
forward.
2.
Phase one:
2.1
Internal observation about where we had
been with the womens business.

2.2
Analysis to get an external take on what
was going on the market.

2.3
3. Phase
Understanding competitive position.

two:
Developing
an
overarching
approaching the womens market

3.1
Seasonal Kickoff and Creative Direction
plan
for
Integrated
meeting
to
set
seasonal
creative
direction, confirm seasonal themes, and build key

stories.
3.2
Design Review
Integrated creative meeting to review product
design in all fitness sport, across all business
units.
3.3
Prototype Review
Planning and prioritization for the brand, retail,
sales, and regions.
3.4
Go-to Market Strategy

Presentation of the go-to-market plan by brand,
retail, sales, and the regions.
3.5
Pralines
Product groups and brand presents an integrated
collection to key accounts in multiple regions.
3.6
Brand Execution and Post-Season Review

Brand plans presented and evaluation of seasonal
planning and booking results
4. Road show throughout the company, enthusiasm and

commitment remained high.
5. Developing dance as a category within global womens
fitness and initiating the development of the first
integrated collection.
The corporation current marketing objectives, strategies,
policies, and programs are clearly stated and merely implied
through performance.
Points that are merely implied:
1. Endorsement strategy. In the case just mentioned that

the contract with female athletes in the mid-1990s to
bring the market to Nike. It means that endorsement
strategy is one of their strategy to be success.
2. The case never mentioned the marketing policy, but it
delivered the policy by the challenge that the team
faced were the policy. The challenges are given by their
leader to make everything still in the corporation role.
Beside, the two points above are clearly stated in the case,
such as present in special event. The case stated that they
created special collection for a special event because they
want to increase global function and execute through the
regions.
The corporation current marketing objectives, strategies,
policies,
and
programs
are
consistent
with
mission,
objectives, strategies, policies, and programs and with

internal and external environment. In line with corporates
mission, the current marketing also want to optimize
innovation by Global Womens Fitness Business. The internal
and external environment in the corporation also supported
the marketing activity.
TRENDS FACED BY NIKE

The emerging trends faced by Nike are Customization and
creating a multiple markets. In the previous productions,
Nike only plays a game in men market especially in sports
footwear, apparel, and equipment. But, in the summer of

2006, Nike announced that they will expand their market into
womens apparel fitness. The reason of this expanding is
because Nike sees that nowadays, women want to look good
and fashionable in apparel both at the gym and after a
workout. To make clear this new target market, Nike made a
good marketing mix, so in the future, Nike could perform
well in its new target market. This new market impacts to the
increasing of Nikes total revenue. Nikes team apparel
estimated that the market will grow at rate of 5 to 8 percent
per year from total 70 percent current market share of
apparel because of the sales of Nikes women apparel. After
some sales, Nikes women apparel reaches its maturity
phases, proven by, Nike becomes a leader in womens
running apparel. Expanding the market means that Nike has
to drive all market towards the same goal, shape the whole
market to support business strategy, stimulate cross business
collaboration, sustain innovation and avoid common pitfalls
that might hinder Nikes progress. Nikes marketing team
has made the strategy to boost up the Nikes product by
Nikes competitive advantages that are innovative and
compelling products, brands that are distinct and relevant to
their consumers.
MARKETING PERFORMANCE COMPARED TO SIMILAR
COMPANY
Nike led in womens running from a market share and
revenue perspective. However, in apparel womens running
was a much more fragmented business, so the market share
was much lower.
But, after that they changed to womens
fitness market. The primary takes away for the team was that
no single company, Nike included, had a dominant mindshare
in the womens fitness market when these conditions came;
Reebok dominated the market in womens aerobic.
Adidas brought celebrity designer to create fashionable

athletic wear.
Puma introduced its Olive brand to try to break into the yoga
market.
New Balance launched cause-related marketing to attract

women via connections to Race for the Cure.
Lulu Lemon, Under Armour, and Danskin took a singularly

focused.
All of these facts show that Nike still lead the market.
MARKETING
APPROPRIATENESS
TO
IMPROVE
CORPORATE PERFORMANCE
The marketing managers used market research to evaluate
and improve product performance as mentioned in the
second program when they made womens fitness business.
The case doesnt explain about product lifecycle, market
segmentation,
and
product
portfolios
for
improvement
innovation)
MARKETING
ADJUSTMENTS
EACH COUNTRY
TO
CONDITIONS
IN
The marketing adjusted to the condition in each country in

which
it
operates.
As
mentioned
above,
the
product
development is decentralized. The marketing have four

different product-creation engines because it has four
geographic region, they are United States, Europe, Middle
East, and Africa, Asia Pacific and America. The marketing
appropriate with the region, so the marketing developed
products for four seasons a year, however as to maintain the
sales value, the price adjustment is not quite significant
between each country, lead to higher percepted price on
several country, especially developed country (for example,
$60 for woven women sport shirt is affordable, however in
Indonesia it is quite expensive).
MARKETING
CONSIDERATION
TOWARDS
ENVIRONMENTAL SUSTAINABILITY
The marketing didnt consider environmental sustainability
when making decision. They just thought to continue to grow
the business, and the challenges are market wants and needs
and competitor.
MARKETING
MANAGERS
ROLE
IN
STRATEGIC
MANAGEMENT PROCESS
The role of senior management is finding the new potential
for company growth from researching. But actually there are
no global marketing manager, so there are no specificrole for
marketing manager. The global marketing manager is
replaced with Global Director for Marketplace Development.
The rolesof Global Director for Marketplace Development are

develop and drive vision for retail presentation in market,
create and manage global showrooms, identify and helpto
develop priority markets for Womens Fitness, lead efforts
globally to identify and drive new distribution channels for
Womens fitness, and leade integration of sales into Global
Womens Fitness.
FINANCE
FINANCIAL STRATEGY FORMULATION

Nikes current financial objectives, strategies, policies, and
program are all cleary stated during its investor meeting in
New York. NIKE, Inc. Officially announced 2015 GLOBAL
GROWTH STRATEGY as its strategy to achieve sustainable
and long-term growth of brands and businesses.
The Company declared a revenue target of $27 billion by
the end of 2015 based on expansionprospectsover NIKE
Brand, Cole Haan, Converse, Hurley, Jordan Brand, NIKE
Golf and Umbro. Moreover, the Company is being confident
it will generate the cumulative free cash flow over $12
billions
from
objectiveswill
operation
lengthen
activitiesby
NIKEs
2015.
long-term
Those
financial
conditions on its revenue growth, earnings per share

growth, and increasing returns on capital.
NIKE Brand is the most potential asset in NIKE, Inc.
Portfolio, since it is controlling 85 percents of total
revenues.
The
other
brands
have
role
of
increasingcontributions to the Companys growth on the

whole. For example, by doing acquisition to Umbro, NIKE
has been increasing its position as the largest football
company in the world; Hurley keeps on performing better
than the others in its market; and Converse has expanded
its strategy to double revenuesthrough 2015.
Geographic
Opportunities
Nike
has
target
and
projection can produce additional revenue in the end of

December 2015 as much as $ 3 $ 3.5 billion per year. This
additional revenue can be earned by increasing the growth
of nikes brand in 6 of its geographic both with mid growth
in north America, japan, and western Europe and also with
aggressively growth in geographic market like greater
china,
emerging
market,
central
europe
and
eastern
Europe.
Direct to consumer In this 5 years, Nike has target by
opening more than 250 new stores around the world for
direct selling consumer. By opening new stores, Nikeexpects
the increasing of its growth and can earned $ 2.2 - $ 2.6
billion in 2015. This growth gives impact to the increasing
of consumer experience, digital commerce, positioning of
brand in shopping location, and the growth in NIKE ID.
Retail Partners- NIKE, Inc.focuses on increasing working

with
retail
partners
differentiated
to
consumer
produce
more
experiences
advanced
based
on
and
their
segmented concepts within key markets. NIKEs businessis

expected to consistently survive as the key driver of longterm
growth,
with
retail
partners
still
expected
to
contribute for more than 80 percent of the Companys

business as a whole through 2015. To develop and build up
its global retail existence, NIKE, Inc. Is planning to invest
$500-600 million in capital over the next five years to
expand
the
Direct
to
Consumer
business
and
build
competences to support wholesale retail productivity and

companysperformance.
Other Businesses- Other Businesseswhich include Cole
Haan, Converse Inc., Hurley International LLC, NIKE Golf,
and Umbro Ltd., the Company declared a low double-digit
growth expectation which contribute an additional $1.5-2.0
billion of revenue by the end of 2015.
Long-Term Financial Objectives Nike has long term
financial model which can build strong performances in
market environment fluctuation. This model make more
sustainability in the company, generate more revenue,
strong balance sheet, and also profitable growth which
gives impact to the business investment flexibility and also
can increase the value of shareholder. Nike has some
financial objective until 2015, they are high revenue growth,
growth in earning per share and also 25% of return on
invested capital.
Picture 4.2. Nikes Income Statement
COMPANY FINANCIAL ANALYSIS
VERTICAL COMMON-SIZE STATEMENT OF INCOME
Gross margin was decrease a little from 2005 to 2007. This

badness balanced by a grow in interest (income) expense, net
and a down in income taxes. The finish result increase
slightly in net income.
HORIZONTAL COMMON-SIZE STATEMENT OF INCOME

Material goes up in revenues
Gross margin increased in a great amount less than
revenues.
Net income goes up slightly, and its more profitable than
revenues increase.
Increasing in net income was the result of the income tax
decrease.
THREE-YEAR RATIO COMPARISON
Picture 4.3. Nikes third year ratio comparison
Some of the liquidity ratios increased and some decreased.

Receivables increasedsignificantly, which would be a good
sign. This resulted on operating cycle increase. Working
capital also increased materially. The current ratio decreased
a
little,
whereas
the
cash
ratio
increasedsignificantly.
Operating cash flow/current maturities of long-term debt,

current
notes
payable,
decreasedsignificantly.
and
But
performingvery well.
sales
overall
to
working
liquidity
capital
ratiosis
Some of the long-term debt paying ratios increased and some

decreased. Times interest earned and the fixed charge
coverage decreased a little, but still in a good performance.
The debt ratio and the debt/equity increased a little, and they
both are performing very well.
Some of the profitability ratios increased and some decreased.
Net profit margin until gross profit margindecreased a little.
But overall, profitability ratio is performing well.
Some of the investor analysis ratios incerased and some
decreased. Diluted earnings per share increased, which would
be a good sign. The important one, which is Price/earnings
ratio increasedmaterially in 2007. It makes overall investor
analysis are performing well.
RATIO COMPARISON WITH INDUSTRY
Picture 4.4. Nikes ratio comparison with industry
LIQUIDITY
Nike has significantly different policies in the receivables and
inventory areas than the industry.
LONG-TERM DEBT-PAYING ABILITY

Nikes
long-term
debt-paying
capabilitylooks
to
be
significantlypreferable than the industry.
PROFITABILITY
All profitability ratios were significantlypreferable for Nike
than the industry, except for operating asset turnover.
Operating aseet turnover was preferable for the industry. But
overall, Nike had a better profit on that year.
INVESTOR ANALYSIS
Only some ratios were possible in the investor area. The ratios
are profitablefor Nike.
ROLE
OF
FINANCE
MANAGER
IN
STRATEGIC
MANAGEMENT PROCESS
Financial managers ensure the financial health of an
organization through investment activities and longterm financing strategies.
Company activities can be divided into many different
sector, one of the sector which is important for the company
is financial sector. So financial manager needs to take action
regarding the financial activities of the company.
A financial manager job is to take care of the financial
sector of an organization or institution. The person in
charge for the job need to maintain the company fund in
order to ensure the funds are used in the most efficient way.
The actions taken by the person in charge significantly
affect the profit, growth, and goodwill of the firm itself.
RESEARCH AND DEVELOPMENT (R&D)
R&D STRATEGY FORMULATION
Objectives
Nikes R&D team is focus to develop sustainability innovation
products for global womens fitness. The R&D creates
integrated
collection
of
womens
sportswear
products,
services and values specifically in apparel, footwear, and

equipment business.
Strategies
1) Category-driven
approach
are
chosen
to
be
new
corporates major to increase the eminence of global

womens business which has potentially profitable market
segment.
2) Consumer-oriented
approach
will
optimize
the
companys innovation and product development to give

customers an integrated products collection met with they
want and need in doing a specific sports category.
3) Integrated collection-based approach to organize all
their collections from footwear, apparel and equipment
products. The customers would be easier to get any
products with different types from all sports category in
the same area. For example, The Goddess Store (Nike
Women). It shows their objectives to deliver an integrated
collection of products to female customers in the same

place at the same time.
4) Centralization system of product development. Nike has
four product-creation engines which are distribute in
United State, Europe, Middle East, and Asia-Pacific which
is have different product creation cycle, calendar/timelines
and priorities. Regional levels mostly adapt the plans
based
on
demands.
local
prospect,
These
potentiality
product-creation
and
domestic
engines
are
decentralized because they have so many different product

types, it causes the cross-business collaboration was
harder to work together. This centralized system is
implemented to unified global level and regional business
units strategy. It is also making the business units can
optimize
innovation
sustainability
and
excite
cross-
business collaboration strategy in the same vision, the

same priorities, in the same calendars and process.
5) Integrated cross-business collaboration approach to
synergize womens innovative products collection and
hasten integration planning and execution. It makes the
strategic ways are potentially offer bigger opportunities
and better performance.
6) Micro-segmentation approach.
Nike
creates
more
specific products for a particular sport activity regarding

the differences about.
7) Technological leader. Nike well-known as a pioneer an
innovation and athletic shoes products. Nike spends more
R&Ds budgets than the competitors in the industry, e.g.
Adidas/Reebok,
etc.
Innovation
is
the
core
of
the
companys values, and an innovative product is the

companys primary competitive advantage.
8) Open innovation, Nikes also collaborates with scientist,

orthopedist, stylist, artist, athletes, academics lab and
consumers to develop new breakthrough innovation.
Policies
1) Collaboration. Product groups from global and regional
level would collaborate to work together to create products
collection for the special event or some extent. E.g.
Olympic, World Cup, etc.
2) Men is men, Women is women. Over the past years,
theres no faction separation between mens and womens
product development, product design, or innovation in the
organizational matrix.
But, after doing some experiments
within the company, clearly after cross-business work

during Change the Game, it shows that there are differences
between
mens
and
womens
teams
from
innovation,
product development, and design by interpreted the women

feminine style, women perspective and womens products.
3) Perspective. Everybody in the same perspective. The team
creates the product innovation by defining what womens
consumers really want to wear when they were doing
particular sport activity.
4) Translated
technology
into
fantastic
products.
Footwear products are made by womens biomechanics

engineers. Actually, there was a distinct between mens foot
and womens foot size. It would require different shoe
designs and dynamics mold. So, The R&Ds teams develop
accurate technology to make sure that the product exactly
fit with the womens feet.
Programs
Changing the Game-The program is developed by Nikes
senior management team to determine profitable potential
growth for the company business sustainability. The teams that
combined of five or six men and women from different business
part are worked for the womens business task force. Emma
Minto will join in this game as an external consultant of the
strategic lead. This program consist of three phase.
Phase 1, the teams were focused to determine the:
-
Internal analysis
:key success factor, key challenge, and
market definition.
-
External analysis
:market
analysis;
define
market,
size
market, and competitive position.

-
Consumer analysis: womens market (internally & externally

research).
Phase 2, the teams were focused to develop planning for
approaching potential womens segment which delivering
integrated collection from head-to-toe of footwear, apparel and
equipment to the global market.
The team approach cross-
business collaboration to ensure that every functional element

such as marketing, operation, HR, and others, would be
synergized before plans are executed.
Phase 3, the teams were preparing the final presentation to
senior
executives.
The
teams
focused
on
designing
organizational structure and financing the business. It was so

challenging
because
the
teams
should
understand
the
strategy to get the power in the global womens fitness

market.
Nike has clearly stated performance of the research and
development teams reflect on company performance in return
on investment. But the company doesnt show the R&Ds
budgets in the case. The company only attached the financial
report (FY 2006, exhibit 1) based on quarter ending and year
ending growth.
Nikes R&D team is still consistent with companys mission,
objectives, strategies and policies and with internal and
external environments. Theyre bring the inspiration and
innovation through womens products with huge impact toward
womens sport perspective. They build a new brand, new
products for new market segment. After survive in Change the
Game challenges, womens fitness business became Nikes
leader board. Theyve got the key for their competitive
advantage is to bring integrated womens fitness collection in
Goddess Store as well as strong brands. Change the game
completely
leads
the
teams
strategies
to
sustainable
innovation, profitable opportunities, potential market, and

integrated business that would makes Nike as the prior brand
of womens choices. Nike had grown into the one of the worlds
strongest brands and largest competitor in the top global
athletic footwear, apparel and equipment market.
Research and development is one of the key success factors for
company
performance.
Technology
is
the
fundamental
stimulation to bring new breakthrough innovation and product

development. Technical research innovation in the product design and
manufacturing process of all merchandized are supported by high technological
engines. Technologies also help the company to reduce inefficient process or
activities to maximize production capability.
Nike input mixed method of basic-applied research in day-to-day engineering
activities to support innovation and product development process using
scientific
studies
includes
biomechanics,
physiology,
engineering, science, arts, etc. For example, Change the Game

challenge.
Nikes R&D gained competitive advantage from technology
innovation products and integration strategic decision to build
strong barrier in global market as the top global brands.
Innovation is the core of the corporate values, and technical
innovation is the key success factor of companys performance.
CORPORATIONS RETURN FROM INVESTMENT IN R&D

Indirectly, the return of investments in R&D captured from
high technology & breakthrough innovation that affected to
increase company growth in the future. As the result, based
on FY 2006, Nike sales achieved $15 billion or grew up 9%
than the last year. At the same time, net income of Nike
attained $1.2 billion compare to the previous year. Nikes
market shares within the company are contained 66% footwear,
28% apparel, 6% equipment. Approximately, huge opportunities of global
womens business expected to $13 billion market. It shows that new market in
womens products is positively correlated to the company growth in FY 2005

to FY 2006.
COMPETENCY IN TECHNOLOGY TRANSFER
Nike transferred their high-technology to outsource alliance
in
developing
countries
to
increase
manufacturing
productivity. Nike also uses subcontracting (outsourcing)

manufacturing
with
low-cost
production
and
low-labor
wages. E.g. Product creation-engine U.S, product-creation

engine EMEA, product-creation engine Asia, and productcreation engine The America.
ROLE OF TECHNOLOGICAL DISCONTINUITY PLAY IN
THE COMPANYS PRODUCTS
Technological discontinuities could deliver better product
performance, it might be attract many new competitors, and
also require new technology to increase companys growth.
Nike has strengthens in high technological development that
creates positive impacts for environmental sustainability.
R&D PERFORMANCE COMPARED TO SIMILAR COMPANY
Nikes core competitive advantage is products innovation.
Nike is the global leader in sportswear innovation. Nikes
R&D activities focus on new technology development with
breakthrough
innovation
as
key
investment.
Their
investments directly affect increasing companys growth

which
attracts
investor
to
join
with
Nikes
business.
Furthermore, Nike on 2006 have registered almost 300

patents to show their differentiation on Innovation, along
with around 14% growth on number of patents granted to

Nike every year.(Macquarie Capital, 2006)
R&D ADJUSTMENTS TO CONDITIONS IN EACH COUNTRY
Nike has difficulties to integrated global and regional
business level because both of them day-to-day operate in
different timelines/calendar, priorities, plans and execution.
Their decentralized systems and processes are unable to
deliver an integrated collection of products to the same place
at the same time. Regional levels usually adjust the plans
based on local issues, opportunities and needs. So, Nike
created a sub-team to work & trying to align the calendars
and the process that could be leveraged across all regions,
which they called Integrated Calendar Alignment Process.
R&D CONSIDERATION TOWARDS ENVIRONMENTAL
SUSTAINABILITY
Nike global womens fitness leads the company to develop
innovations that are reducing environmental impact. Nike
has a commitment to optimizeenvironmentalsustainability
toward integrated business strategy. Nike creates premium
design
to
reduce
the
waste
and
eliminate
inefficient/ineffective activities in the product life cycle.

ROLE
OF
R&D
MANAGER
MANAGEMENT PROCESS
IN
STRATEGIC
Refers to the Nikes R&D objectives, R&D manager are

responsible for the global womens fitness as a key part of
Nikes breakthrough products. The manager leads the team
to develop sustainability innovation, integrated strategic
planning, encourage the teams to be creative thinker while
solves womens consumer needs & wants problems, and
monitoring products development for womens sportswear,
cooperate with key partner in integrated business process
from all element in internal or external environment.
OPERATIONS AND LOGISTICS

OPERATIONS AND LOGISTICS STRATEGY FORMULATION
Based on Nikes Global Womens Fitness Business case, the
objective and policies are not clearly stated. But implicitly,
Nike wants to optimize company activities to give the
customer a holistic collection of everything they need and
want in particular sports. Because in approximately thirty
years Nike run the business it was dominated and focusing
on male product, while womens market have great potential,
Nike planned to give more effort to the womens market.
Then, Nike wants to deliver a cohesive collection of footwear,
apparel, and equipment to the women market by creating the
strategy
in
how
to
selling,
designing
product
and
communicating its product to the womens market. Thats the

challenge for Nike team at that time. Nike want to increase
the return of shareholder through effectively managing
operating cost related to the companys growth rates. Deliver
good quality of product, create significant growth in their
geographic regions and elevate retail experiences were the
way to reach target revenue of Nikes long term goal (2011)
at amount $23 billion.
The strategies and program are also not clearly stated, but
we can see it through the Changing the game assessment
project that is consist of 4 phase. In this 4 phase, Nike
womens teams analyze the strategy from its internal and
external condition of the company and also see the behavior
of the customer target market and competitive perspective.

By finding positioning through Nikes dance collection
product from 3 Nikes product focused (footwear, apparel,
and equipment), finally Nike find the right strategies that can
delivered integrated way to the customer. And with the new
organization structure on its team and also budgeting and
revenue projection on this womens focused product, this
small Nike team has successfully implemented womens
product to the market.
TYPE AND EXTENT OF OPERATIONS CAPABILITIES OF

THE CORPORATION
Nike is an iconic footwear and apparel manufacturer that
operates in over 180 countries. Nike contract outsource
manufacturers to produce and deliver their product to the
retailers in the world. Most of them are independent contract
manufacture, operate multiple factories, and are outside
United States. Nike currently has 719 factories, employing
990,325 workers in 44 countries around the world. The
company was supplied by 150 footwear factories in 14
countries. Contractedfactories are mostly located in Vietnam,
China, and Indonesia.
With this capacity of plant facilities, Nike can fulfill its

demand over the world. Nike chooses some country around
the world with low labor cost for manufacturing while the
place is near to the place of the supplier of raw material.
Because of that the production cost of Nike is very low. But

Nike has a high cost in distributes the product to the
customer. Because the place of its customer is further from
where it was manufactured. For distribution in South
America, which is the largest Nike customer, Nike has a
contract with HDL to help in distribution of products.
MANUFACTURING OR SERVICE FACILITIES

Most of Nikes manufacturing product is outsourcing. The
purpose is to minimize cost of production. After being
manufactured, it will deliver to the US, where Nike come
from then delivered to customer around the world. So most
of Nike production is depends on an international 3 rd party of
Nike. If theres something happen to this 3rd party, it will
affect Nike operation.
In 2006, contract footwear supplier manufactured 35% in
China, 29% in Vietnam, 21% in Indonesia and 13% in
Thailand of Nike footwear product. Besides that, Nike also
made manufacturing agreement with some independent
factories like Argentina, India, Brazil, South Africa, Italy, and
South Africa. For apparel, it produce outside united states by
40
independent
manufacture
like
Bangladesh,
china,
Honduras, India, Indonesia, Malaysia, Mexico, Pakistan, Sri

Lanka, Taiwan, Thailand, Turkey and Vietnam.
Nike trying to reduce the number of contract factories in
order to minimize the risk ofnaturaldisaster like labor
performance
and
product
quality
by
make
long-term
relationships with few numbers of factories as trusted

partners.
So,
Nike
can
create
more
integration
of
sustainability in its manufacturing, premium product, good

quality and innovation on product, deep understanding and
relationship with contractor, labor, and factories.
Nike buy raw material in bulk. Most of them are available in
contract manufacturing countries and it makes the difficulty
in checking the material requirement. Materials used by Nike
in footwear product are natural and synthetic rubber, nylon,
leather, polyurethane films, plastic compounds and foam
cushioning materials. The largest Nikessupplier are NIKE
IHM and NIKE (Suzhou) sports company. The most important
part of the material in apparel product is natural and
synthetic fabric and threads, specialized performance fabric,
and metal hardware.
International operation give some risk to Nike business
process such as revaluation of currencies, change in the
export duties, instability in politics, terrorism. This risk
happened unpredictable. If something happened to the
manufacturer process, it will give financial impact to Nike.
The Material used was increased by time to time, because of
that Nike make the reduction of material used in the
manufacturing factories and also try to reduce the number of
vendors Nike have.
APPROPRIATE MIX IN MANUFACTURING OR SERVICE

FIRMS
In operation part, Nike use some mix between human and

machine Like using of i2 and NSC system. This system have
purposes on controlling supply chain more accurately in the
operation system in Nike. To maximize its production, Nike
should match its supply and demand. So this system help
Nike match between supply and demand and also in purpose
on reducing the exceed raw material. At once, Nike failure in
implementing i2 system in the 2000. It is because some
factor like the inexperience of i2 and also the forecasting
which forecast too far out ahead. Because of that Nike stop
using i2 in 2003 and then Nike change to another system
named NSC and succesfully implement NSC or Nike Supply
Chain after 2004. This NSC planning the projection of
moving
and
manufacturing
the
product.
Its
become
important for Nike to have sytem like this tohelp Nike doing
well
organized
in
manufacturing globally, because its
operation made in some country in the world and the product

which will be distribut to customer in different country in the
world.
CORPORATION PERFORMANCE RELATIVE TO THE
COMPETITION
Sports footwear,
apparel,
and
equipment
are
very
competitive industry in worldwide. Nike should compete with

this industries competitor that ishaving increasing number
over the time and also have rapid changes in innovation and
technology. Because of that, it is important for Nike to always
adapt to the changes of trends. In operation segment,
Nikeimplements the revolution of its manufacturing. It is
including the improvement in technology and decreasing the

volatile labor and material price.
Operation gives great impact to the company. Because of this
production, Nike can get high price on the product but low in
the production cost. So it creates large product margin in
each unit.
OPERATIONS AND LOGISTICS APPROPRIATENESS TO
IMPROVE CORPORATE PERFORMANCE
Nike uses appropriate concept and technique in evaluating
and improving its current performance. To make effective
forecasting, in 2000 Nike launch NSC Project or Nike Supply
Chain Project which have goals to make integrated platform
from
ERP
(Enterprises
Resources
Planning)
and
CRM
(Customer Relationship Management) software.

Besides
that,
in
order
to
make
efficient
inventory
management, Nike develops more accurate demand forecast.

Then, Nike implement recent ERP software and coordinate it
with Nikes supplier through vendor managed Inventory and
continuous replenishment program. This combination will
give a great impact to the company and also supplier. Besides
that, it also improves all part in supply chain.
OPERATIONS
AND
LOGISTICS
ADJUSTMENTS
TO
CONDITIONS IN EACH COUNTRY

Nike has calculates and think about where facilities placed in
every country. Nike finds country where facilities placed near
to the suppliers of raw material. Besides of that, Nike also
considering the cost of labor in the country where its product
being manufactured like Because of that, Nike can reduce its

operational cost.
OPERATIONS
AND
LOGISTICS
CONSIDERATION
TOWARDS ENVIRONMENTAL SUSTAINABILITY

Operation of Nike is based on environmental sustainability
when making a decision. Because the objective of Nike that
want to create sustainability both in the company, customer,
and an environment. Nike always makes products that have
high waste management that does create a low waste level in
manufacturing.
From 1996, Nike has started to concerned on reducing waste
caused by manufacturing in contracted footwear factory.
Then to make an improvement in environment Nike make
Environmental Engineering (E2) organization that make
some program to reduce waste in each factory. One of this
organization work result is make foot bed from the waste of
producing the cushioning foam. In 2000, Nikemakes waste
management system near the factories.
To make environment sustainability from operation, Nike
have some goals like make minimum target of organic cotton
in its material, increasing the used of environmentally rubber
material, minimizing the used of PVC, continuing to eliminate
the
waste
in
its
supply
chain,
make
strategy
on
environmental footprint to the water, eliminate nitrogen in

the manufacturing process to create climate change-neutral,
make a sustainable innovation for product design, and create
efficient and less waste packaging.
ROLE
OF
OPERATIONS
MANAGER
IN
STRATEGIC
MANAGEMENT PROCESS
Nikes Operation manager have responsibility in designing
and creating Nikes long-term operating strategy and driving
innovation through the global supply chain. Operation
manager make the management of growth in its supply chain
and also the growth in its innovation and design for the
purpose of designing the operation strategies of Nikes
manufacturing and production globally.
HUMAN RESOURCES MANAGEMENT (HRM)
HRM STRATEGY FORMULATION

Nikes current HRM objectives, strategies, policies, and
program are not all clearly stated from within the company
itself. However, Nike implied their objectives, policies and
program on HRM from several sources and state that as Nike
is having more than fifty thousand of employee, Nikes
growth can be unlimited, and thus developing everyone
within the organization is a must and has been done through
intense leadership specialize in developing everyone within
the company. (Nike Corporation, 2007).
In addition, even though the HRM policies of Nike are not
stated, it is implied on the proxy annual report of Nike that
HRM policies especially on compensation encourage that all
the directors, executives, and even employee to have stock
ownership on Nike either by giving an option to buy stock
with discount or getting a huge amount of stock as
compensation. Those are implying that Nike hope every
single human resource will do their best to increase Nikes
value through high performance, resulting on personal
wealth increase too. Another fact, is that compared to other
corporation, Nike give more long term and performance
based incentive instead of a fixed bonus based on position.
(Nike Inc., 2007)
IMPROVEMENT IN FITTING BETWEEN INDIVIDUAL

EMPLOYEE AND JOB
It is said that the fitting between individual employee and job

at Nike is excellent and are being improved through the
previous mentioned programs and policies. None of the
employees are represented by the union, except for certain
employee in the Emerging Market. However, the effect of the
union in Emerging Market could possibly hindrance Nike
performance for the future even though on small value, but it
is predicted that as it can lead to legal issue, if it is being let
for a long time it could lead to a bigger hindrance.
HRM
PERFORMANCE
COMPARED
TO
SIMILAR
COMPANY
The HRM performance compared to similar company cant be
compared head to head as each company has their own
unique human resource management strategy and form. One
of the indicators to show it is the end result of the human
resource management itself, which are employee turnover
and well-being of the workers. As the data are not shown by
Nike, the next or derivative indicators are the stock value of
Nike and the loyalty of the directors and executives.
As for the stock value of Nike, its been said on Wall Street
that Nike performances is outstandingly great and make both
their profit and stock value growth consistently, or in another
words, HRM as one of the function to keep Nike running,
support it greatly. In addition, most of the directors and
executives on Nike are loyal as some could stay as the
directors from 1990s and the executives who get to his/her
position from the lower level of employment in Nike,

ensuring a loyalty.
HRM APPROPRIATENESS TO IMPROVE CORPORATE
PERFORMANCE
In the case, it is stated that the team developing the Nikes
Global Womens Fitness are started as a virtual team, where
everyone is becoming the part of the team without significant
additional compensation and its only as far as an additional
burden for each of the member in the team (everyone has
already their own responsibilities and position). However,
after showing a high performance and chance to show
themselves, the team is given a chance to be a semi-virtual
team with a supported funding to create the team and give
more compensation and off-load each team member eachs
responsibilities a little. This shows that even though without
being compensated, the companys employee are trying their
best to improve the company performance, meaning that the
loyalty and motivation of the employee are excellent.
However, it cant be debated that the triple layer matrix of
Nike make the change on the organization is really hard
because each position can affect many others position.
WORKFORCE DIVERSITY AND HUMAN RIGHT
As
stated,
Nikes
management
is
thinking
that
the
relationship with all of the diverse employee, start from the

part-time employee until top management are excellent.
However, there are some noted issue on human right,
especially on the labors at factories which has been said to

be given a low salary and bad working condition for the
labors, making the living condition worse and their works to
be harder than it is supposed to be.
HRM
ADJUSTMENTS
TO
CONDITIONS
IN
EACH
COUNTRY
There are three matrix dimensions on Nikes organization;
the first one is the functional business matrix such as sales,
brand, operations, human resources, etc. The next one is
their geographic regions as the second dimension and the
last one are Nikes nine sports categories which included
running, basketball, tennis, soccer, and golf. The matrix of
Nike already shown that their function, including Human
Resource, has their own adjustments towards the area of
business.
OUTSOURCING IN HRM PLANNING
Nikes main strategy is 100% subcontracting / outsourcing
manufacturing, meaning that each factorys being used for
manufacturing their products are owned by subcontractors
throughout the globe with the majority of the output only
consisting of Nikes products. However, the HRM take role on
employing one team consisting four expatriates per each of
the big three countries of the manufacturer (China, Vietnam,
and Indonesia), that focus both on quality of products and
working conditions that could be done by visiting the
factories regularly every week. Also the HRM planning
created a code of conduct back on 1992, even though the

implementation is still controversial until now especially on
the
human
issue
right
and
misconduct
of
the
code.
(University of North Carolina, 1997).

ROLE
OF
HRM
MANAGER
IN
STRATEGIC
MANAGEMENT PROCESS
It is implied that the there are two roles of HRM Manager in
Strategic Management Process, the first one is as shown in
the annual report and proxy report of Nike, that is designing
an appropriate compensation system to encourage everyone
in the company work more than merely their job description
as they are part of the company and they also own the
company, also led to a better performances. Secondly, the
HRM Manager role is to develop all human resources on the
company through extensive development and leadership
within the company, this to ensure the utilization of the
companys potential kept on each and all individuals who are
the human resources of Nike.
INFORMATION TECHNOLOGY (IT)

IT STRATEGY FORMULATION
Nikes current IT strategy is very important to the company as
the company rely significantly on technology in their supply
chain, and any failure, inadequacy, interruption or security
failure of that technology could harm their ability to effectively
operate their business.
IT PERFORMANCE COMPARED TO SIMILAR COMPANY
Paanakker, Nikes
chief information officer and the vice
president of Nike Technology says that IT is the one area of

business left on the outside looking in when it comes to strategy
innovation development. The statistic says that Depending on
the industry, companies will spend between 3 percent and 8
percent
of
revenues
on
IT.
For
Nike
that
number
is
approximately 2.7 percent. This condition shows that Nike

company doesnt really rely on the IT department of their
company because they rely mainly on the technology of its
product
which
is
done
by
Research
and
Development
department
IT
APPROPRIATENESS
TO
IMPROVE
CORPORATE
PERFORMANCE
In the case, Nike is trying to compete in women fitness market
and they try their best to lead the market share in the world. IT
department doesnt directly involved in the development as IT
department works behind the scene as the developer of the
computer system and software Nike use for their manufacturing

everyday
IT
ADJUSTMENT
TO
CONDITION
ON
DIFFERENT
COUNTRY
IT department have to adjust each time Nike emerge in new
country. The adjustment is mainly concerned in manufacturing
world in some country as the technology and the human
resources available in each country is not always support the
former technology. The adjustment also concerned when new
store are open in new country as the store system each country
differs from the other
ROLE OF IT MANAGER IN STRATEGIC MANAGEMENT
PROCESS
The Role of IT department in strategic management process is
mainly occurred in raising the company competitive advantage
in the market as the IT department is responsible to make the
system and management system move as fast and as real-time
as possible. The company can also achieve sustainable
competitive advantage in the market by using the appropriate
ways to use the technology available.
D.Resources as Nike Strength and Weakness

(IFAS)
Based on all of the resource possessed by Nike and mentioned
above, there are things that could be classified as strong point
of Nike as Strengths and point in which Nike is lacking as Nike
Weaknesses as below.
Here are Nikes Strengths:
1. Strong innovation and technology development within Nike

itself rather than being too dependent with the new
breaktrough happening outside Nike.
2. Their brand is already deep rooted in many country and all
over the globe as a sportwear and equipment related
company along with their customer focused approach.
3. Along with all of Nike experience, large number
of
distributed manufacturer in low minimum wage level, and

economies
of
scale
and
scope
coming
with
it,
Nike
manufacturing cost considerably very low

4. Nike financial performance is good compared to industry
along with internal growth of the company itself.
5. Human resource within company are extremely understand
the DNA of Nike on innovation and always actively perform
initiative in order to improve Nike.
Here are Nikes Weaknessess:

1. Complicated matrixed corporate structure that leads to long
decision making and needs extraordinary effort to perform
collaboration.
2. Nike as a global brand charge an above average price to
maintain their image and quality, however on developed
country it is often viewed as a premium/expensive price.
3. Overseas manufacturer lead to Nike depedencies on them, as
Nike doesnt have any own factory, they are really dependent
towards the overseas manufacturer.
4. Nike often too focused on lowering their cost and one of their
way in order to perform that is by paying minimum wage
towards overseas labor cause criticism towards them.
Below is the internal factor analysis summary table which

summarized the internal factors which affect Nike performance,
its importance towards Nike growth and sustainability, and
current performance of Nike related to the factor. The factor are
having a coding on the right of the sentence to make it easier on
understanding the SWOT table later on (e.g. S1 to be coding of
Strength
number
1).
In
addition
to
that,
the
current
performance of Nike is assessed at Rating from 1 (poor) to 5

(outstanding).
Table 4.1. Internal Factor Analysis Summary (IFAS)
Internal Factors
Weig
Ratin
ht
Weight
ed
Score
Comment
and
Rationale
Strength
Nike
Innovation
and 0,2
Innovation
and
TechnologyDevelopment
technology
(S1)
development
is
insribed within Nikes

culture
thus
and
it
important
Nike
very
thing
for
identity
weight).
many
is
vision,
(0,2
Nike
has
innovation
sportwear
and
on
sport
equipment, also their

capital allocation for
Research
and
Development is one of
the
biggest
within
industry (5 scoring).
Nike as a global brand
and a company with
customer
as
main
consideration
on
taking their action or

decision
really
need
their brand image to

be
established
and
improved from time to

time along with the
Global Brand Equity (S2)
0,2
0,8
trust
which
been
put
brand
into
(0,2
They
already
Nike
weight).
have
done
marketing
effort
continously
and
actively, along with its

positive
outcome
shown
by
sales
increase
steadily.
(4
scoring)
Low-cost
0,1
Manufacturing(S3)
0,4
With Nike global size,

a
small
cost
efficiencies
could
mean
profit
huge
increase, thus low

cost manufacturing is
constantly pursued by
Nike even though it is
not
affecting
existence
Nike
too
(0,1
much
weight).
Nevertheless
of
it,
Nike able to maintain

their
low-cost
manufacturing
(4
Score).
Financial
Performance 0,05
(S4)
0,2
Financial performance
is
the
indicator
to
show how good Nike is

running
and
important
quite
for
investors, however it
is not really significant
towards
Nike
operational
performance
for
its
except
evaluation
standards
weight).
that,
(0,05
Along
the
with
financial
performance of Nike is
relatively
good
compared to industry
average
and
yearly
growth(Thus, 4 score).
Employee
and
personnel
with
leadership at Nike is
one of the important
point
to
ensure
competitive advantage
and sustainability (0,1
Employee
and
Human
Resource Quality (S5)
weight)
0,1
0,4
and
this
is
always maintained by
Nike by giving enough
compensation on wellperformed
personal
along
its
with
HR
program to encourage
their employee fulfill
company objective (4
score).
Weakness
Complexed
Corporate 0,1
Structure (W1)
0,2
Corporate
ensure
structure
the
business
process activity being

fulfilled by a certain
person
position
and
at
certain
accordingly
efficiently
(0,1
weight), but by having
a complex structure,
the decision making at
Nike and collaboration
between
division
needs initiative by the

employee
within
division
itself
(2
score).
Price is one of the
marketing
main
mix
and
component
getting revenue
weight).
on
(0,1
Nike
are
having a global price

Expensive Price (W2)
0,1
0,3
with little adjustment

and
it
could
mean
overpriced
at
developed country, but

it could also means
just the right price at
another
country
(3
score).
Overseas Manufacturing 0,05
Dependencies (W3)
0,1
Manufacturing
dependencies towards
oversea manufacturer
could
lead
to
hard
process control yet it

could
be
overcome
through
quality
enough
control
(0,05
Nike
itself
weight).
has
weekly
delegation
to
do
quality control at each

factory
they
even
are
though
recruited
from oversea too (2

score)
Treatment
Towards 0,1
Labor(W4)
0,1
Treatment
towards
labor in the short run

could not affect Nike
quite much unless for
the
additional
profit
obtained through low

wage cost. However,
with future and ethical
consideration
long
run,
towards
cause
in
the
treatment
labor
could
criticism
and
brand trust decrease

or
pessimism
(0,1
weight). This far, Nike

is reportedly pay its
labor
on
minimum
wage and often make

them
overwork
(1
score).
TOTAL
3,5
From the IFAS table above, the total point of strength and
weakness factors is 3,5. It means that Nike as an organization
able to perform well by being able to utilize their strength and
cover their weakness. In addition to that, with this score it can
be concluded that Nike is an organization with a good internal
condition.
V.
A.
Analysis of Strategic Factors
SWOT MATRIX
In order to analyze the strategic factor of Nike, all of Nike
strength, weakness, opportunity and threat are being listed on a
SWOT matrix as below:
Table 5.1. Nikes SWOT
STRENGTH
WEAKNESS
Nike Innovation and Technology Development (S1)
Complexed Corporate Structure (W1)
Global Brand Equity (S2)
Expensive Price (W2)
Low-cost Manufacturing (S3)
Overseas Manufacturer Dependencies (W3)
Financial Performance (S4)
Treatment Towards Labor (W4)
Employee and Human Resource Quality (S5)
OPPORTUNITIES
THREATS
Innovation and Technology on industry (O1)
Competitors or substitute (T1)
Creditors Trust Towards Nike (O2)
Labor Unions (T2)
New emerged market of women fitness category (O3) Governmentand legal aspect (T3)
Local Communities (O4)
Recession Economic Condition (T4)
Regeneration of Customers (O5)
Consumers characters (T5)
B.
STRATEGIC FACTOR ANALYSIS SUMMARY

In order to develop a strategy which will have a significant result,
strategic factor identified based on most weighted, aligned with
chosen issue, and more easily to be changed or adapted factor at
Strength, Weakness, Threat and Opportunity factors. In addition to
that, all of the listed factors will be assessed to know their level of
importance as shown on Weight, how good it is performed by Nike
on terms of Rating from 1 (poor) until 5 (outstanding), and in
additional, duration of the strategic factor influence toward Nike
are also being noted to know the level of urgency or time-based
decision (e.g. long run decision).
The importance being represented on weight are calculated
previously based on weight from EFAS table (chapter III) and IFAS
table (chapter IV) with ratio between external and internal factors
is 1:1. This ratio is taken with consideration that external and
internal factors both are equally important for strategic decision
within Nike. Performance rating is being taken and adapted from
both of EFAS and IFAS tables.
Table 5.2. Strategic Factor Analysis Summary Table
Factors
Weight
Rating
Weighted
Duration
Comments
Score
Short
Inter-
Long
mediate
Nike
0,15
0,75
The weight of 0,15 is
Innovation
given
and
innovation
Technology
technology
Developme
development
towards
and
because it is one of
the most important
point in Nike history
and strategy, it is
one of the point that
give
Nike
their
competitive
advantage, and Nike
always
able
develop
any
to
new
technology
innovation,
nt (S1)
making
their performance to
be
outstanding
(5
rating). Intermediate
duration
is
because
now,
2006,
taken
on
technology
development
needs
quite a time to be
developed while the
technology cant last
more
than
several
years.
Nike as
Brand
brand
and
Equity (S2)
company
Global
0,14
0,56
customer
global
a
with
as
main
consideration
on
taking their action
or
decision
need
really
their
image
brand
to
be
established
and
improved from time

to time along with
the
trust
already
into
which
been
Nike
put
brand
(0,14 weight). They

have done marketing
effort
continously
and actively, along

with
its
positive
outcome shown by
sales
increase
steadily. (4 scoring).
Short
duration
on
brand equity focus

on
acquiring
customer
to
immediate
while
in
new
show
result
the
long
run, Nike needs to

sustain
Low-cost
0,07
0,28
the
customers loyalty.
With Nike global
Manufactur
size,
small
ing (S3)
efficiencies
cost
could
mean a huge profit
increase, thus low

cost
manufacturing
is
constantly
pursued
by
Nike
even though it is not

affecting
Nike
existence too much

(0,07
weight).
Nevertheless
Nike
of
able
it,
to
maintain their lowcost
manufacturing
(4 Score). Low cost

manufacturing
needs to be run at
all
the
maintain
cost
production
activities.
Complexed
Corporate
Structure
0,07
0,14
0,07
0,21
0,15
0,75
(W1)
Expensive
Price (W2)
Innovation
and
Technology
on Industry
time
the
to
low-
whole
(O1)
New
emerged
market
of
women
0,05
0,15
0,15
0,6
0,15
0,75
fitness
category
(O3)
Competitor
s
or
substitute
(T1)
Consumers
characters
(T5)
1,00
3,65
VI. Strategic Alternatives and Recommended

Strategy
A.
Strategic Alternatives
Based on all of the strategic factors on previous chapter, TOWS
matrix are made to enable strategy alternative creation through
combination of Strength, Weakness, Opportunities, and Threats.
TOWS matrix are having four parts of content with each parts are a
combination and match-up from: Strength and Opportunity which
signifies what is being the positive side of Nike and what
Opportunities are available to be seized by Nike through their
strengths, Weakness and Opportunities which indicates what
opportunity which could be seized to overcome the weakness of
Nike, Strength and Threats which signifies through what method
could Nike avoid or overcome the external threat through their
strength, Weakness and Threats which shows through what way
could Nike minimize their weakness and avoid the external threat.
TOWS Matrix below explain and show what alternatives are
available based on the previous chapter strategic factor.
Table 6.1. Nikes TOWS
Strength
1. Nike
Weakness
Innovation
and
Technology
Development (S1)
2. Global
Brand
Equity (S2)
Complexed
Corporate
Structure (W1)
Expensive
Price
(W2)
3. Low-cost
Manufacturing
(S3)
Opportunities
Innovation and
SO
S3O1
WO
Good
W1O1:
To
solve
Technology on
technology
industry (O1)
New emerged
low cost by doing
structures,
joint-cost
Management
market of women
outsourcing
center builds own
fitness category
manufactures and
priority innovation
(O3)
partnership
base while let each
with
within
research
in
complex
regional
technology
structured
development
regional
S1O1
strong
RnD
With
in
adapt
characteristics
(Asians, American,
manufacturing
European,
technology
African) to creates
supports
the
uniqueness
product
innovation
development
on
and
local
based
issues,
creates
cultures,
breakthrough
trends.
innovation
develop integrated
S2O3:
business region by
Integrated
collection
global
for
women
by
sportswear
creating
trend
and
Then,
joint cross-cultures
strategy.
W1O3 :
There
is
an
based on womens
opportunity
for
fitness needs.
each
region
expand
the
womens
by
to
market
joining
cross-
cultures
strategy
as
products
the
value.
Threats
Competitors or
substitute (T1)
Consumers
characters (T5)
ST
WT
S1T1: Nikes RnD
W1T1:
develop the core-
expand
identity
business
&
Nike
the
across
uniqueness
the
innovation
(American,
continuously,
Nike
so
countries
African,
Asian,
European).
Each
compete with the
region
own-
competitor
as
identity.
innovation
leader
creates
with
strong
breakthrough
identity.
could
has
product
has
Nike
&
S2T1:
Utilize
brand
equity
improve
by
firms
by
adapted
local
issues,
cultures
value,
increasing
and
brand
awareness
core-products
as
well-known
and
brand
engaging
customers
to
loyalty
as
value.
W2T5:
Quality
quantity.
Builds
image
as
generates
elegant and classy
while
products with high
winning
the
competition.
S3T1:
trends
over
profits
innovation
Keep
value.
Offer
cross
the
value
the
cultures
makes
the
cost
product
manufacturing low
worth
by
price nominal. Sell
joint-cost
or
more
than
the
economic of scale,
the
economic of scope
experiences
strategy
value to attract the
to
products
compete as cost-
customers
leader
interest.
and
also
innovation leaders
in global womens
fitness business.
and
B.
Recommended Strategy Based on TOWS

Matrix
By knowing Porters generic strategies, and knowing of lower cost
and differentiation at a broad target as being signified by Nike, all
of the strategy alternatives generated through TOWS Matrix are
being assessed and chosen based on their compatibility, efforts
needed and impact expected as being show on the table below.
Table 6.2. Nikes Porter generic strategies
Broad Target
Lower Cost
Cost Leadership
Differentiation
Differentiation
S3O1, S3T1
S1O1, W1O1, W1O3,
Nike
keeps W1T1,W2T5, S1T1
manufacturing
at Builds strong RnD in
lower cost by joint- manufacturing

cost or economic of technology
scale
and
within business
outsourcing
development
to
manufactures. Then, supports

cooperates
to breakthrough
collaborate
research
with products.
center
university
at the
To solve
complexity
or within
the
institutional
organization central-
partnership.
regional, Nike has an
Furthermore, women opportunity

products
with
the expand the business
same basic material with

could
to
cross-cultures
promote strategy
because
economies of scope integrated
region
in
Asian,
production
sharing
by (American,
mutual African,
resource
such
machine
with
European)
as can serve womens

man need
products.
with
unique
values
and
experiences cultures
across the countries.
Through
combining,
alternatives,
sportswear
choosing,
integrative
and
existing
and
eliminating
manufacturing
men
sportswear
the
strategy
between
women
also
to
create
breakthrough products on women market to be the leader in the

market through differentiation are two recommended strategies
which
could
Nike
to
show
their
Strength,
overcome
their
Weakness, seize the Opportunity, and avoid the risk coming from
Threats.
VII.
A.
Implementation
Program
Based on the recommended strategy, the program below will show
on what manner will it be implemented and who will be responsible
for the strategy to ensure its success.
1) Nike women integrated business
This program is aiming to solve regionals organization
complexity (America, Asia, Africa and Europe Business
Units), strengthening operation strategy in its production
costs by joint cost or economic of scale and economics of
scope strategy, besides that it can improving its R&D by
differentiation strategy. They could decline costs by joining
the
cost
from
each
region
about
the
materials
and
manufacturing technology. We recommend cross-cultures

value of the products to connecting womens needs across
the region (American, Asian, African, and European) by
product design sharing and exchange. Product design
sharing provides products variety with country uniqueness
value. For example, with the same raw materials, production
process, technology and production machine Nike can
produce different type of womens sportswear depend on its
country by adding its countrys value (e.g. motives from
another country) and produced also sold accordingly to the
trend happening in one country or region (e.g. Batik has
been used as motives in Indonesias Nike last year, but on the
next year it will be a trend on Europe to wear Batik, so the
design through the same manufacturing process could
reduce the cost through time saving for design and

economies of scale by having the products from Indonesia).
So, it can decrease manufacturing costs for any additional
design.
Nike also can take an opportunity to create differentiation by
producing womens sportswear with countrys value. Darcy
Winslow, Global General Manager for Womens Footwear,
Apparel and Equipment will lead and oversees the team to
develop integrated business program (Africa, Asia, America,
Europe) for every 18 months and direct the strategic
planning into feasible action. Nike provides the same
material and resources for all region and then allowing the
regional business unit to explore their potential. Moreover,
Barbara Sumner, Creative Director for Integrated Footwear,
Apparel and Equipment creative direction for womens
fitness business led the team during the process of executes
this program for 4 month or every season.
2) Research Partnership
Research partnership will help Nike to create breakthrough
innovation
and
product
development
with
the
experts
especially to give more innovation which is appropriate for

women market. Combined internal ideas and external ideas
will bring unlimited out-of-the-box ideas. There are some
recommended institutions such as sports science laboratory,
sports engineer, sports medicine research laboratory,and
fashion engineer.
common
resource
To achieve synergy by applying sharing

methodsof
R&D
laboratory
through
making contract with sports laboratory center. This contract

will be valid for 10 years with option to add the duration for
the contract for preserving the cooperation if it goes

well.This synergy purposes is to maintain the sustainability of
innovation in the long-term growth.
Hans Van Alebeek as the Vice President on Global Operation
and Technology could assign his division to take care of the
strategic synergy with the laboratory. Through his experience
and knowledge on the operation and technology, he could
assess the ability and performance of a lab to contribute
towards Nike. This program expectedly could run through
the sparring of Nike budget on internal R&D to the
laboratory R&D. With the facility of the lab and Nike
investment, it could quicken the progress of innovation. In
addition to that, the main policies that should be noted are to
make the innovation patent to be registered under Nike
name along with rewards to the appropriate researcher.
VIII.
Evaluation and Control

In order to ensure that the performance and the strategy being
implemented is perform well and align with the Nike target,
evaluation and control need to be done with appropriate standard
and measurement tools. Evaluation and control which can be done
to assess the performance for each of the program are as specified
below:
1) Nike women integrated business
Regional business decentralization giving huge opportunities
for Nike business in order to dominated global women
sportswear market. The evaluation and control of women
integrated business strategy is concerning to the business
expansion. It could be expressed on the additional sales
volume; manufacturing cost reduction or cost saving, and
visible profitability increase.
The standards of those measurements expectedly increase
the sales volume more than 10% (as Nike average sales
growth from 2004-2006 is approximately 10%) with this
additional strategy or else the strategy dont give any impact.
Manufacturing cost reduction or cost saving and profitability
increase are could be expressed through the same proxy, that
is net profit margin, which if the strategy going well, then the
operational expense percentage should remain the same or
even lower than 2006 cost of 56,1% of sales and the net
profit margin should increase more than 0,16% (average net
profit margin growth from 2005-2007) to show this strategy
effectiveness.
2) Research Partnership
The
evaluation
and
control
in
regards
of
research
partnership worth (success) could be represented by the

number of patent growth. This far, the average patent
granted growth to Nike every year is almost reach 300 and
14%
increase
from
to year.
Thus, with the
research
partnership with external laboratory, it is expected that Nike

growth in patent granted starting from 2007 and beyond
could
reach
more
than
14%
to
show
this
strategy
effectiveness.
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STRATEGIC

CASE ISSUE AND SUBJECT.....................................4

II. Corporate Governance.......................................22

VIII. III. External Environment: Opportunities and

Natural Physical Environment:

Summary of External Factors

IV. Internal Environment: Strengths and Weaknesses

Resources as Nike Strength

V. Analysis of Strategic Factors............................112

STRATEGIC FACTOR ANALYSIS

VI. Strategic Alternatives and Recommended

XIII. VIII. Evaluation and Control.................................124

Nike Organization Structure Example

STRATEGIC AUDIT OF NIKE, INC. - OCTOBER 2015

CASE ISSUE AND SUBJECT

In order to make the strategic management audit to be focused and

change were running, mens

basketball, soccer, womens fitness, and sportswear. These six

customers a holistic collection of everything they want and need a

integration. She tried to deliver integrated collections of footwear

STRATEGIC AUDIT OF NIKE, INC. - OCTOBER 2015

even with organizational barriers, leadership issues, and the need

cooperation, and sustain innovative thinking. After doing so, she

STRATEGIC AUDIT OF NIKE, INC. - OCTOBER 2015

Changing the Game

STRATEGIC AUDIT OF NIKE, INC. - OCTOBER 2015

Emma Minto, an external consultant, brought on to play the role of

What had been our successes?

Internally, the team confirmed that there was a great initiative to

Reebok (dominating the market in womens aerobic)

STRATEGIC AUDIT OF NIKE, INC. - OCTOBER 2015

Puma (introducing its Olive brand to try to break into the

to Race for the Cure), and

Nike had to figure out a new way to talk to female consumers by

Nikes Vision for Changing the Game in the Womens

aspirational brand of choice for

Inconsistent Retail Experience

STRATEGIC AUDIT OF NIKE, INC. - OCTOBER 2015

synchronized through the creation of six joint milestones.

1. Seasonal Kickoff and Creative Direction

confirm seasonal themes, and build key stories.

STRATEGIC AUDIT OF NIKE, INC. - OCTOBER 2015

other distribution channels. After working the process, Winslow

How we would organize, and

organization. He was brought on to the team the structure,

To address the issues associated with the collection-based

approach, Winslow and the team also proposed the global

developing and executing the new retail and merchandising

strategy. They also created an ongoing part-time role for the

People who like her

The team used a strategy of spending more time listening than

complementary strategy for womens fitness. Simultaneously, the

STRATEGIC AUDIT OF NIKE, INC. - OCTOBER 2015

consumers. To drive this mentality, the team set up virtual fitness

Integrated Spring Dance Collection

development of the first integrated collection.It was built on

STRATEGIC AUDIT OF NIKE, INC. - OCTOBER 2015

Despite these barriers, the first integrated dance collection was

Biographies of Nike Employee

Mindy Grossman, Vice President of Apparel

30 year veteran of the retail and apparel industries

STRATEGIC AUDIT OF NIKE, INC. - OCTOBER 2015

U.S. senior brand manager for apparel, womens, tennis, and

performance management, and education for the supply chain