NIKE

LOO YIH CHIET SMM15015 CEO

LIM YIK CHING SIB15040 Accounting Manager

LOO CHIAN YIN SAF15040 HR Manager
TAN CHE REN SMM16001 Marketing Manager
EE CHAI LIAN SMM15030 Advertising Manager
KELVIN LOW KAH WAI SMM15032 Purchasing Manager
CHUAH ZHEN HONG SMM15037 Production Manager
OOI XIN YI SIB15036 R&D Manager
TEH WEN TING SIB15031 - Secretary

COMPANY PROFILE
Begin in 1960.
Originally name as Blue Ribbon Sports.
Industry : Textile - Apparel Footwear & Accessories.
Trademark : Just Do It & Swoosh.
In 2015 Nike have distribute total 931 retail store in
world wide.

COMPANY PROFILE
Main Segment Market : Sport footwear & Apparel.
Nike brand value : 15.9 Billion.
Subsidiary : Converse, Hurley, Umbro, Cole Haan.
Total spend in sponsorship for 2015 : 1 Billion

Nike Air Zoom Structure 19

PROBLEM

Annual Sale Drop in

Meeting Objective
Solution for Sale Drop.
Identify the thing go wrong and brainstorm to
overcome problem.
Discussion with Marketing, Advertising,
Purchasing, Accounting, Production , R&D and
Human Resource Department.

NIKE Brand Revenues

20000
18000
16000
14000
12000
10000
8000
6000
4000
2000
0
Fiscal 2013

Fiscal 2014
Footwear
Equipment

Apparel
Global Brand Divisions

Fiscal 2015

Result of Operation for NIKE Company

35000

30000

25000

20000

15000

10000

5000

Fiscal 2013

Fiscal 2014
Revenue

Gross Profit

Net Income

Fiscal 2015

Professional Expertise
More than 150 consultants and
trainers.
Proven track record,
Good training abilities,
Services ranging from 5 to 15 years

Practical Learning Approach

Unique accelerated learning
methodology
Role-playing,
Workshops,
"back at work" projects,
Hands-on activities in actual business
scenarios

Systematic
Deploy 6E Cycle to Business Success.

Award

Testimonial

Nike Zoom Air Sneakers

Aim: To make fastest advertisement
A super fast sneaker deserve a super fast commercial
On our 8 running shoes
Featuring on 13 all-star athletes getting their speed on

Who should be in the advertisement?

Kobe Bryant: 5-time NBA champion (basketball)
Wayne Rooney: 3-time England player of the year (soccer)
Richard Sherman: Super Bowl champion (football)
Marlen Esparza: Olympic bronze Medalist (boxing)
Odell Beckam Jr.: Offensive rookie of the year (football)
Rafael Nadal: 14-Time Grand Slam champion (tennis)
Serena Williams: 20-Time Grand Slam champion (tennis)
Marcus Mariota: 2nd overall NFL draft pick (football)
Katarina Johnson Thompson: 2014 world No. 1, heptathlon (track and field)
Shane O'Neill: Pro Skater (skateboarding)
Mo Farah: Olympic Gold Medalist: 5,000M/10,000M (track and field)
Allyson Felix: Olympic Gold Medalist: 200M/4x100M/4x400M (track and field)
Shelly-Anne Fraser-Pryce: Olympic gold medalist,100M (track and field)

Kobe Bryant: 5-time NBA champion (basketball)

Wayne Rooney: 3-time England player of the year

(soccer)

Richard Sherman: Super Bowl champion (football)

Marlen Esparza: Olympic bronze Medalist (boxing)

Odell Beckam Jr.: Offensive rookie of the year

(football)

Rafael Nadal: 14-Time Grand Slam champion

(tennis)

Serena Williams: 20-Time Grand Slam champion

(tennis)

Marcus Mariota: 2nd overall NFL draft pick (football)

Katarina Johnson Thompson: 2014 world No. 1,

heptathlon (track and field)

Shane O'Neill: Pro Skater (skateboarding)

Mo Farah: Olympic Gold Medalist: 5,000M/10,000M

(track and field)

Allyson Felix: Olympic Gold Medalist:

200M/4x100M/4x400M (track and field)

Shelly-Anne Fraser-Pryce: Olympic gold

medalist,100M (track and field)

Material for shoes

Cotton
Wool
Rubber
Polyester
Nylon
Synthetic leather

Problem
1. Supplier have keep delay our stock.
2. Complain from receive department:
-material have been broken/spoil
3. Price have been increase (Material for
shoes .)
-Cotton.

Reason of Price increase.

- Have been negotiating with current local supplier but
fail.
Reason:
1. GST impose in Malaysia.
2. Drop of currency.
3. Supplier said that recently rubber in India and
Malaysia is heavy harvest.
4. Import duty fees
(duty fees have been increase from 4.53% to 5.74%)

Price of wool (US cents/pound)

$1.43/pound

Price of wool increase (supplier from New

Zealand)

Global
Rubber
price (US
cents per
Pound)
$2.51/po
und

Solution

1. Solution for wool and cotton.

A) better quality, same price compare to current supplier.
B) lower price compare to our long term supplier.
(recruit new supplier may not meet our expectation.)
C) Purchaser lower quality material.
D) Deal with same supplier but request for more budget.

2. Solution for rubber.

-KMK rubber manufacturer company.

Solution (Summarize)
Recruit new supplier.
Go for lower grade material.
Straight deal with manufacturer. (only for rubber)
Go for same supplier but request for more budget.

PRODUCTION
MANAGER

Nike Shoes Product

NIKE FLYKNIT AIR MAX

NIKE AIR MAX 90

NIKE AIR HUARACHE

NIKE FLYKNIT

NIKE ROSHE RUN

NIKE AIR FORCE 1

Nike Jersey

NIKE SOCCER JERSEY

NIKE FOOTBALL JERSEY

NIKE BASKETBALL JERSEY

NIKE TENNIS JERSEY

Basketball Sneaker

LeBron James

All Star 2016

Sneaker

Nike Running Shoes Company

PRIMARY STRATEGIC
MATCH POSITION

Against Adidas
Success Factors

Against Reebok

Weight

Rating**

Score

Rating**

Score

Market Share

.07

.35

.28

Breadth of Product Line

.10

.50

.30

Sales Distribution Effectiveness

.06

.24

.18

Price Competitiveness

.10

.30

.20

Advertising Effectiveness

.14

.70

.42

Facilities location and newness

X*

Production Capacity

.04

.20

.16

Relative Product Quality

.10

.40

.30

R & D position

.18

.72

.54

Caliber of top management

.03

.15

.12

Customer Service

X*

Experience Curve

.05

.25

.20

Corporate Culture

.05

.25

.15

Profitability Ratios

.08

.40

.32

TOTAL

1.00

4.46

3.17

Business Strength and

Competitive Position

High

Average

Low

Industry
Attractiveness
High

Leverage

Constraint

Average

Maintenance
Low

Vulnerability

THE STRATEGIC
PLAN

Mission Statement
Our mission at Nike is to be a company
that surpasses all others in the athletic
industry.
Maintain our position by providing
quality footwear, apparel and
equipment to institutions and
individual consumers of all ages and
lifestyles.
Keep this in mind with the execution of

 Pledge to make our products easy

available worldwide through the use of
retail outlets, mail order and our
company web site.
Nikes management believes that our
success lies in the hands of our
teammates, customers, shareholders and
the communities in which we operate.

Values Statement
Nike will focus its commitment to all
stakeholders by continuing to make strides
towards being a company that sets the
precedents in social responsibility.
Ensure that all employees and members of
its surrounding communities are treated in
a manner that is inline with our mission.

 Nike has made many alliances with human

rights organizations in an attempt to ensure
labor rights for employees of the industry
overseas.
Committed to treating our employees with
the utmost respect, which is reflected in our
compensation and human resource policies.
Committed to making sound decisions in
regards to our environment, resources, and
the fight against pollution.

 Nike has made many alliances with human

rights organizations in an attempt to ensure
labor rights for employees of the industry
overseas.
Committed to treating our employees with
the utmost respect, which is reflected in our
compensation and human resource policies.
Committed to making sound decisions in
regards to our environment, resources, and
the fight against pollution.

Alternative Strategic Slogan

Nikeas always, a step ahead of

the rest!

Nike Sport Research Lab (NSRL)

Athletes , scientists , engineers , designers work hand-

in-hand to develop new products

Focus on biomechanics , physiology , perception ,
athletic performance
Motion Capture Lab
High spending

Research & Development Department

Nike uses Leader R&D strategy
To differentiate its athletic shoes from the competitors
Routinely spend 25 millions each year on R&D

R & D Challenges
High cost
Long timescales
Uncertain outcomes
Changing customer needs during the long R&D process

Solutions
Use university researchers / private sectors researchers
Stress basic and applied research
Emphasize products / process improvements
Spend average cost on R & D

R & D Strategies
First firm to market new technological products
Be an innovative imitator of successful
products
Low-cost producer of similar but less expensive
products

REFERENCE
http://www.forbes.com/pictures/mlm45eflmk/1-nike-2/
http://money.cnn.com/2015/06/05/news/companies/nike-en
dorsement-dollars
/
http://www.businessinsider.my/history-of-nike-facts-aboutits-50th-anniversary-2014-11/?
r=US&IR=T#0QO5A4y373b3DfRL.97
http://about.nike.com/
https://youtu.be/bh8r6S2FNP0
http://
www.adweek.com/adfreak/nike-makes-one-fastest-ads-eversell-zoom-air-sneaker-165688

 http://
www.stats.govt.nz/browse_for_stats/economic_indicators
/prices_indexes/historical-wool-export-prices-volumes2011.aspx
Price for wool
http://mytabletennis.net/forum/forum_posts.asp?TID=40
154&title=rubber-prices-going-up
rubber price
http://www.dutycalculator.com/country-guides/Import-du
ty-taxes-when-importing-into-Malaysia/
import duty fees.
http://www.kmkrubber.com.my/ Kmk company