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r morker Rights Consortium(mRC)- engaged in an
internal debate over the ethical responsibilities
associated with its role as purchaser of goods
manufactured overseas.
r The university had considered joining two
organizations, both of which purported to certify
goods as Dzno sweatdz
r Fair Labor Association(FLA)
r Apparel Industry „artnership(AI„)
Nike
r In 2000 NIKE was the
leading designer and
marketer of athletic
footwear, apparel, and
equipment in the world.
r Logo- DzJust Do It!dz
r Nike employed around
20,000 people, 565
contracts factories in 46
countries around the
world turning out Nike
products.
r Owned subsidiaries
r Bauer Nike Hockey Inc.
r Cole Hann
r Nike Team sports
r Revenues almost $9 billion(Nov 1999)
r 45% global market share
r Knight owned 34% of the company stock and
was believed to be the 6th richest individual in
the us.
r In 1978 revenue-$269 million and 2700
employees
r Nike became a publicly traded company
r In 1990ǯs founder defined Nike as a
Marketing-oriented companydz

r In 1991-revenues $3 billion-beginning stage


r Dzcool shoesdz
r Record breaking-1998-$9.5 billion
r ADIDAS(2nd firm)
Éey events
r 1962-BBA-dzBlue Ribbon Sportsdz
r 1963-1st shipment of 200 Tiger shoes arrived
from Japan
r 1966- 1st retail shop was opened
r 1971-Nike and Mexico contract(production of
shoes)-failed
r 1977- manufacturing r/s with the Japanese firm
Ì nt..
r 1982- Dz„ioneer Awarddz for „hilip knight
r 1986- billion dollar mark
r 1990- growth in international sales($2
billion)
r 1991-Michael Jordan wears Nike shoes
while leading the Chicago Bulls to their
first NBA championship($3 billion)
Ì nt..
6 1995-Nike ȂAir system($4.8 billion)
r 1996-Gold metallic shoes ȂMichael
Johnson($6.5 billion)
r 1999-$9.5 billion-dzbrown shoesdz
r 2000-$30 million contribution for the
University of Oregonǯs football stadium.
Ìtting Edge Pr dts
6 Nikeǯs Sports Research Lab
6 Human movements
6 Job is to translate activities into a set of
performance-enhancing and injury Ȃreducing
needs.
6 The specialists developed new polymer materials
that would make the shoes lighter, more
aerodynamic, or more resistant to the abrasions
incurred during normal athletic use.
Æ e Making  At eti S es
r No manufacturing process
r Outsourced production to subcontracts in
Southeast Asia
r Company shifting production locations within
the region when prevailing wages rates become
too high.
r Nike shifted much of its shoe production to
Indonesia, daily wages around $1 a day(comp with
u.s. shoe industry-$8 an hr)
1995 1996 1997 1998 1999
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