NIKE - SHRM.pptx

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Quick Facts About Founded by:

Phil Knight & Bill Bowerman Headquarters: Washington County, Oregon, USA

Key People : Phil Knight Mark Parker Chairman President & CEO

Quick Facts About Contd…1964 – Started as Blue Ribbon Sports (BRS), initially

operated as distributor for Japanese shoe maker Onitsuka Tiger now known as ASICS1966 – opened its first retail store in California1971 – introduced the brand with ‘Swoosh’logo designed by Carolyn Davidson1980 – attained 50% market share in US, the company

went public in December that year1988 – introduced the now famous slogan ‘Just do it’for Nike Ad Campaign

Acquisitions by 1988 - COLE HAAN (fashion brand)1994 - BAUER (ice hockey equipments)2002 - HURLEY (Clothing Company)2003 - CONVERSE (Shoe Company)2004 - STARTER (Sportswear)

2008 - UMBRO (Football equipments)

Affiliate Brands

Nike Revenue Statistics for FY08

Total Revenue $16 billion (86%)

$ 18.6 Billion $2.6 billion (14%)

Revenue Break-Up

Footwear – 61% Apparels – 33% Equipments – 7%

Nike Sales & Market Share 2008

$ 12.7 Billion Sales Break-Up OF SALES IN

OF SALES IN

Nike Sales & Market Share 2008 ContdGlobal Athletic Footwear Market Share

36 % Market share for NIKE than its prime competitor ADIDAS with only 22% market

share

Nike Production Facts Footwear sourcing of Nike50 Factories in China, Vietnam, Indonesia & Thailand

Apparel & Equipment Sourcing of Nike700 Factories/800,000 workers/52 Countries Green House Gas Emission/ Carbon Footprint

25% GHG Emission

59% GHG EmissionSHOE MANUFACTURING

Nike Labor CrisisNike’s Contract factories subjected to :- Unjust & illegal pay practice- Forced overtime- Verbal & physical abuse- Sexual harassment- Interference with unionization- Excessive toxic chemical exposure

NIKE Considered:Getting Traction on Sustainability

Rebecca HendersonRichard M LockeChristopher Lyddy Cate Reavis

Environmental Programs by Nike Staff1990 – replace GHG from their flagship Nike Air System

with climate neutral, developed water based cements to replace toxic solvents called Volatile Organic Compounds (VOC)

2000 – introduced company wide training on product sustainability

2005 – released a small line of sustainable shoe called ‘Considered’

The name came from the team “considering what was right and doing what was right”

Sustainability through CR- Strategic approach to Corporate Responsibility (CR)

emphasized Value Creation, Collaboration with Biz Units & Proactive Strategic planning

- Institutionalize CR into DNA of the company- Organizing CR around Return on Investment“ Corporate Responsibility is no longer a staff function at

Nike, It’s a Design function, a Sourcing function, a Consumer Experience function, part of how we operate.” Nike CEO Mark Parker

- Hannah Jones VP- Corporate Responsibility

The Considered Group- Started in 2005 by Mark Parker, Hannah Jones & John

Hoke as a way to diffuse the considered ethos of high-performing, aesthetically pleasing greener products

- Think tank, tool box, internal consultancy, competitive catalyst

- Objective was to choose over the impact of design of a product through its PLC

- Understand & reduce their environmental footprint

Considered's Implementation Challenge

- Performance & Aesthetics - Design- Time- Profit Margin- Supply Chain Partners- Consumers- Response from Employees

Competitor’s Play 2007 - introduced ‘Green Index’ a

rating system that showed customers how the product they bought affected environment

2007 - introduced BioMoGo world’s first fully biodegradable foam for footwear

2008 - introduced eco-oriented non-performance shoes & shirts ‘Grun’

Just Doing It Right

How did Nike Just Do It ?- Considered the Product Design- Considered the Logistics- Considered the Source of Materials- Considered the People (Consumers &

Employees)- Considered the Environment

NIKE have done what they could do for the planet, now its ‘OUR’ turn to JUST DO IT right

Thank You