Nike Team

www.sneakerfreaker.com 

Blake Daw

n Rebecca Steve

n

Nike Corporation"TO BRING INSPIRATION AND INNOVATION TO EVERY ATHLETE*

IN THE WORLD."  

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Nike

Early Years

Two Visionary Men…Bill Bowerman & Phil Knight

Blue Ribbon Sports Became Nike in 1972

Logo Was Created…“Swoosh”

First Debuted in Eugene, OR

http://nikeinc.com/pages/history-heritage

Highlights

“Swoosh” Recognized World-wide After Trials

“Just Do It” Became Their Slogan

In 1985 Signed NBA Rookie Michael Jordan

Publicly Traded Company

1995 Signed Brazilian World Cup Team

2012 NFL’s Official Sponsor

Nike Products and Services

Nike Brand-Footwear, Apparel , and Equipment

Converse, Hurley, Nike Golf, Jordan Brand

Nike Foundation

Nike Global Distributionhttp://beta.fool.com/peoplesinvestor/2013/04/01/3-questions-to-take-a-bite-out-of-your-first-stock/28181

Revenues and Net Income (in Millions)

www.standardandpoors.com

Stock StatisticsCurrent Price-$66.30EPS-2.71PE Ratio-24.44Dividends and YieldStock SplitsStock Repurchase PlanShares Outstanding

www.standardandpoors.com

Nike and S&P 500 Comparison  Nike S&P 500

Initial Investment $5,000 $5,000

Additional Investments $120,000 $120,000

Total Invested $125,000 $125,000

Total Dividends (Reinvested) $52,972.16 $36,990.89

Total Value $759,515.81 $255,310.73

Total Benefit

As of June 2013

$634,515.81 $130,310.73

Initial Investment: $5,000 in June 1993DCA Investment: $500 per month

Information taken from Edward Jones Equity Hypo

Problems For Nike Corporationhttp://www.michellehenry.fr/Nike2.jpg

Nike Failed to Maintain Oversight on Subcontracted Factories

Accused of Sweatshop Labor

Child Labor Allegations

Key Issues

Problems & Key Decision Criteria

Ethical Issue: Nike failed to maintain oversight on factories that it subcontracted to produce its goods

Alternatives: Shift manufacturing to the United States where monitoring the factories is easierDevelop a corporate social responsibility program and incorporate it into business

strategy

Key Decision Criteria:

Optimize stakeholder balance of interest, Improve corporate image, Maintain profitability in the long run

Problems & Key Decision Criteria

Ethical Issue: Sweatshop Labor An employer that violates more than one federal or state labor law governing minimum wage and overtime, child labor, industrial homework, occupational safety and health, workers compensation or industry regulations

Alternatives: Terminate contracts with factories that consistently violate labor laws and regulationsWork with the host government and the contracted factories to improve areas of

concern

Key Decision Criteria:

Optimize stakeholder balance of interest, Improve corporate image

Problems & Key Decision Criteria

Ethical Issue: Child LaborUNICEF estimates that 150 million children aged 5-14 are involved in some type of child laborInternational Labor Organizations estimates that 215 million children under the 18 work full-time

Alternatives: Enforce the legal minimum age set by host governmentProvide a means for education for children in the communities where

factories are located

Key Decision Criteria

Optimize stakeholder balance of interest, Improve corporate image

"Child protection from violence, exploitation and abuse." UNICEF. 04 Aug. 2013 <http://www.unicef.org/protection/57929_58009.html>."Travail des enfants." Travail des enfants. 04 Aug. 2013 <http://www.ilo.org/global/topics/child-labour/lang--fr/index.htm>.

RecommendationsOverview of Issues:

Lack of oversightSweatshop laborChild Labor

Selected Alternatives: Develop a corporate social responsibility program and incorporate it into

business strategyWork with the host government and the contracted factories to improve

areas of concern Provide a means for education for children in the communities where

factories are located

Accused of Poor Factory Conditions

Challenged with Environmental Problems

Accused of Abandoning Sites

Key Issues

Problems & Key Decision Criteria

Buy Factories for Nike Use OnlySet Standards and Have Surprise Inspections

Key Decision Criteria: Maintain Corporate Image, Optimize Stakeholder Interests, Improved Employee Morale

Ethical Issue: Accused of Poor Factory Conditions

Alternatives:

http://www.chinahearsay.com/wow-a-positive-story-on-prc-factory-workers

Problems & Key Decision Criteria

Ethical Issue: Challenged with Environmental Problems

Alternatives:Research & Development on Cleaner ManufacturingEstablish OSHA Standards

Key Decision Criteria:Maintain Corporate Image, Minimize Environmental Impact

http://thinkprogress.org/climate/2009/07/01/174368/scotus-environment

Problems & Key Decision Criteria

Ethical Issue: Accused of Abandoning Sites

Alternatives:Be More TransparentLease Sites for Term with Option of Extending on

Year-to-Year Basis

Key Decision Criteria:Maintain Corporate Image, Increase Sales, Optimize Stakeholder Interests

http://fiz-x.com/abandoned-america

RecommendationsOverview of Issues:

Poor Factory ConditionsEnvironmental ProblemsAccused of Abandoning Sites

Selected Alternatives: Set Standards & Implement Surprise Inspections (New Buildings Would

be Too Expensive)Research & Development of Cleaner/Greener Manufacturing Be More Transparent

Universities Cancelled Contracts:Branded Athletic Goods

Stock Prices Decreased:Led to Layoff of 1500 Workers

California Lawsuit:Violated Unfair Competition

Key Issues

Problems & Key Decision Criteria

First Ethical Issue: Universities Cancelled Contracts with Nike

Alternatives: Personal visits to these Universities Invite the athletic funding department to visit the factories Hold a discussion at these Universities/present a video

Key Decision Criteria: Maintain Corporate Image/Improve Profitability/Increase Sales

http://www.arkansasbusiness.com/article/31796/arkansas-unveils-new-razorback-football-uniforms

Problems & Key Decision Criteria

Second Ethical Issue: Stock Prices Decreased/Lay Off 1500 Workers

Alternatives: Hold Public Conferences Around the Country Where Sales are LowCreate a Marketing Campaign /Activist Against Child Labor and Unfair

Wages

Key Decision Criteria: Maintain Corporate Image/Employee Morale/Optimize Stockholder Interests

http://www.wallstreetoasis.com/tag/bank-layoffs

Problems & Key Decision Criteria

Third Ethical issue: California Lawsuit/Violated Unfair Competition

Alternatives: Keep Nike’s mouth shut…Let the public relations team do all of the talkingHire lawyers who specialize with these issues

Key Decision Criteria: Maintain Corporate Image/Optimize Stockholder Interests

http://sanfrancisco.cbslocal.com/2011/01/23/toxic-flea-collar-lawsuit-filed-referencing-californias-prop-65/

RecommendationsOverview of Issues:

Universities Cancelled ContractsStock Prices Decreased-Lay Off WorkersCalifornia Lawsuit

Selected Alternatives: Visit the Universities that cancelled the contracts and hold Q&A Session Create a Marketing Campaign /Activist Against Child Labor and Unfair

WagesKeep Nike’s mouth shut…Let the public relations team do all of the talking

Nike Needs Transparent Measures

Needs to Pay Fair Wages

Celebrity Endorsements

Key Issues

Problems & Key Decision Criteria

Ethical Issue: Lack of Transparency

Behind the Swoosh Video

Alternatives:Allow Transparent Measures & AuditsDo Not Disclose more than what is legally required

Key Decision Criteria: Optimize Stakeholder Interests; Maintain Corporate Image; Ease or Speed of Implementation

Problems & Key Decision Criteria

Ethical Issue: Nike Pays Unfair Wages-What is Fair?

Alternatives:Pay above the country’s minimum wage Pay base wage, along with housing allowance and benefitsDetermine a formula to base wages somewhere between the other

countries and the U.S. wages

Key Decision Criteria: Optimize Stakeholder Interests; Within Present or Future Capabilities; Employee Morale, Safety, and Turnover; Code of Conduct

Problems & Key Decision Criteria

Ethical Issue: Celebrity Endorsements

Alternatives:Keep Celebrity EndorsementDiscontinue Celebrity EndorsementInclude Stricter Ethics Clauses in Contracts

Key Decision Criteria: Optimize Stakeholder Interests, Increase Sales, Market Share and Return on Investment,

Improve Profitability

RecommendationsOverview of Issues:

Needs Transparent MeasuresNeeds to Pay Fair WagesCelebrity Endorsements

Selected Alternatives: Allow Transparent Measures & AuditsDetermine a Formula to Base Wages Between the Other Countries & the

U.S. Wages Continue/Discontinue on Individual Basis, Include Stricter Ethics Clauses

Nike Corporation*"IF YOU HAVE A BODY YOU ARE AN

ATHLETE."

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