Faculty of Management Sciences

& Liberal Arts

MASTER OF BUSINESS ADMINISTRATION

Submitted To: Dr. Pooja Verma

Session 2018-2020

Name : Amit Kumar Registration No. 1871401081

Name : Kapil Thakur Registration No. 1871401121
Name : Tarun Thakur Registration No. 1871401070
INTRODUCTION:

Nike is an American multinational corporation that is engaged in the design, development,

manufacturing, and worldwide marketing and sales of footwear, apparel, equipment,
accessories, and services. The company is headquartered near Beaverton, Oregon, in the
Portland metropolitan area. It is the world's largest supplier of athletic shoes and apparel and a
major manufacturer of sports equipment, with revenue in excess of US$24.1 billion in its fiscal
year 2012 (ending May 31, 2012). As of 2012, it employed more than 44,000 people
worldwide. In 2014 the brand alone was valued at $19 billion, making it the most valuable
brand among sports businesses. As of 2017, the Nike brand is valued at $29.6 billion. Nike
ranked No. 89 in the 2018 Fortune 500 list of the largest United States corporations by total
revenue.

The company was founded on January 25, 1964, as Blue Ribbon Sports, by Bill Bowerman
and Phil Knight, and officially became Nike, Inc. on May 30, 1971. The company takes its
name from Nike, the Greek goddess of victory. Nike markets its products under its own brand,
as well as Nike Golf, Nike Pro, Nike+, Air Jordan, Nike Blazers, Air Force 1, Nike Dunk, Air
Max, Foamposite, Nike Skateboarding, Nike CR7,[9] and subsidiaries including Brand Jordan,
Hurley International and Converse. Nike also owned Bauer Hockey (later renamed Nike
Bauer) from 1995 to 2008, and previously owned Cole Haan and Umbro. In addition to
manufacturing sportswear and equipment, the company operates retail stores under the Nike
town name. Nike sponsors many high-profile athletes and sports teams around the world, with
the highly recognized trademarks of "Just Do It" and the Swoosh logo.

TRAINING

Nike has approximately 1 million employees spread out across 715 factories in over 44
countries. Of those 715 factories, Nike only owns 73 manufacturing centres located in the
United States whereas the other 642 are contract factories that Nike source product from. Each
of these factories are to follow Nike’s Code of Conduct which states the rules and regulations
they must follow in order to be in association with Nike. Each of the factories must have a set
of policies and procedures in affect which are not only posted in the factories, but also brought
to employees attentions through initial training as well as yearly review. Nike’s training covers
four sections, lean manufacturing, Human Resource Management (HRM), health & safety, and
environmental compliance. All training documentation must be signed off by a supervisor,
dated, documented and kept for 3 years to ensure training accuracy among all employees.
LEAN MANUFACTURING:
Through lean manufacturing Nike is trying to build the employees skills naturally by
empowering them with a voice to help create innovative solutions to increase productivity in
the factories. In 2012 up-to-date training was provided to the contract factories and focused on
ways “to engage employees in problem solving and continuous improvement” (Inc., Make
Today Better - Labour, 2014) throughout the productivity line.

HUMAN RESOURCE MANAGEMENT (HRM):

When it comes to Human Resource Management, Nike really wants to stress the value that
each employee has towards the company and re-insure the notion of lean manufacturing. Nike
found that many of the contract factories lacked HR fundamentals, but through an increase in
training the factories were able to gain valuable knowledge and implement it around the
workplace.

HEALTH AND SAFETY:

When it comes to health and safety there are many issues that Nike stresses at the initial training
because of the constant harmful elements workers are continually exposed to. The initial
training goes over topics such as physical & mental health, material handling, medical services
& first aid, fall protection, and Personal Protective Equipment (PPE). Each of the factories
have in place a “Health, Safety and Equipment (HSE) management system to eliminate or
reduce risks associated with operations.” (Nike Code Leadership Standard, 2010) Nike takes
employee health and safety very seriously and for that annual review on the policies and
procedures regarding take place at all factories.

ENVIROMNETAL COMPLIANCE:
When it comes to environmental risks, each factory has different protocols depending on the
countries environmental regulations. Nike is very much an environmentally conscious
company and is always looking for new ways to reduce the impact the manufacturing process
has on the environment. During the initial training factories cannot stress enough how
important the materials workers are using are not only harmful to themselves but also to the
environment. The trainer will go over proper procedures for handling and disposal of
hazardous materials. All employees receive an annual review on this subject matter.

ORGANISATION DEVELOPMENT:
Nike is a well-established supplier of sports clothing and equipment. Nike has successfully
opened franchised chains of department stores all over the world. The Nike stores provide the
public with top quality apparel and equipment at “value for money” prices. Management is
responsible for day-to-day operation of the store and human resources.

LIFE/WORK BALANACE:

Nike believes in making difference in people's lives has made it provide a variety of benefits
to help its employees achieve optimum work/life balance, including:
Paid Time Off (PTO) - Accrues on a per-pay period basis. One may earn 18-28days based on
your completed years of service
Holidays - Nine company-paid holidays
Bereavement - Up to three paid days
Jury Duty
Military Leave – Nike pays its employees the difference between military pay and their base
compensation for unto one year. They also maintain medical, dental, vision and life insurance
benefits for one year
Adoption Assistance – Nike reimburses up to $5,000 ($2,500 for part-time associates) per
adoption for eligible expenses
Long-term Care
Home/Auto Insurance
Pet Care Discounts
Flexible Work Schedules
On-site Cafeterias
Scholarships to trainees
New Mother Rooms
OLD RULES:

Employee experience defined by annual engagement surveys

Culture is a topic on the company website and perhaps on the wall but not measured or defined
through behavior

Companies have a series of HR leaders across recruiting learning rewards engagement and
other HR services

Compensation benefit and reward are managed with the focus on benchmarking and fairness

Wellness and health program are focused on safety and managing insurance costs

Reports are designed to cover salary overtime bonus benefits and stock options

Employee self-service is viewed as a technology platform that makes it easy to complete HR

transactions and reports

NEW RULES:

Employee experience defined as a holistic view of life at work requiring constant feedback
action and monitoring

company uses tools and behaviors to measure a line and improve culture during change M&A
and other major initiatives

companies have someone responsible for the complete employee experience focus on
employee journey experiences engagement and culture

Compensation benefit rewards and recognition design to make peoples live better and balance
financial and nonfinancial benefits

companies have an integrated program for employee well-being focused on the employee her
family and her entire experience at life and work

Rewards also include non-financial rewards means leaves vacations policy fitness and wellness
programs

The employee experience platform is designed mobile and include digital apps prescriptive
solution based on employees journey and ongoing communications that support and inspire
employees
NIKE FUTURE PLANNING:
Traditional retailing has been getting crushed of late. Nike has intelligently pivoted toward
online selling and selling directly to consumers, as well as pursuing digital and online channels.
Take a look at the company's direct sales growth from the most recent transcript of Nike's
quarterly earnings call

NIKE Direct revenues grew 12 percent to $10.4 billion, driven by a 25 percent increase in
digital commerce sales, the addition of new stores and 4 percent growth in comparable store
sales.

We also said that we would 2X Direct with Digital Commerce growth, both owned and
partnered, comprising over 50% of NIKE's total company growth over the next five years. In
fiscal year '18, NIKE Direct, in fact, drove over 90% of our growth and 100% of our growth
was driven by the combination of NIKE Direct and partnered NIKE consumer experiences.
NIKE Digital in particular grew 34% in Q4 on a constant currency basis and was the single
fastest growing channel globally.

Nike has been so well managed in the last number of years that the company has made an
overhaul of the business model look easy. Its success was no coincidence at all. The company
realized a long term ago that traditional retailing was in major trouble and began to shift its
business model. The company's strategy is clearly working. I have to credit CEO Mark Parker
for the work he has done with Nike. He has been an exceptional CEO who I believe has not
received enough credit for what he has done with Nike. The company has been so relentlessly
focused on its customers and creating winning products that the financials have pretty much
dealt with themselves. Nike's continued willingness to adapt with the times is what is
impressive to me.

Nike has also stood up to competition from rivals adidas (OTCQX:ADDYY) and Under Armor
(NYSE:UAA). Nike admits it made some missteps in the past couple of years which made it
loose market share in important segments like basketball. The company has since recovered
share and grown strongly again in North America, its core market. Meanwhile, rivals such as
Under Armor have seen their sales slow and their shares underperform. Nike's competitive
advantage is the company's brand and innovation, with a relentless focus on style and fashion
appeal.

Nike is fortunate to be operating in a sector which has secular growth ahead. The company will
likely continue to grow in the low-single digits domestically, while it can easily grow at double-
digit rates in emerging markets like China. There is still massive opportunity for the company
to expand abroad, considering that 50% of its sales are still coming from North America, which
comprises only 6 percent of the world's population.