The new NIKE

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The new NIKE
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NIKEs original approach to business commerce

• Located on the ground floor of the Mia Hamm
  building on Nike's 175-acre headquarters campus
  in Beaverton, the Nikes Innovation Kitchen is
  off limits to most visitors and even to most Nike
  employees. It is the way that Nike to protect
  their new products.

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NIKEs original approach to business commerce

• Nearly 20 years ago, Nike star designer Tinker
  Hatfield came up with the Air Jordan -- the
  best-selling sports shoe of all time. Hatfield
  and his design geeks produced two different kinds
  of shoes for distance runners. As befits a global
  company, Nike's sponsored athletes hailed from
  all over the world.

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NIKEs original approach to business commerce

• Eight years ago in Atlanta, Nike ambushed
  basketball sponsor Champion (a brand of Sara Lee
  Corp.) by sneaking giant Swoosh signs into the
  arena. When the cameras panned the stands, TV
  audiences saw the Nike logo loud and clear.

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NIKEs adapt to pursue its business model

• developing top-flight information systems,
  logistics, and supply-chain management ?
• Nike is searching for the right balance between
  its creative and its business sides,
• relying on a newfound financial and managerial
  discipline to drive growth.
• "Senior management now has a clear understanding
  of managing the creative process and bringing it
  to the bottom line.

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Business problem which NIKE encounter as it
evolved over time

• Some analysts believe Nike is poised to become a
  20 billion company by the end of the decade.
  That would have seemed laughable just a few years
  ago,because sales started falling after hitting
  the 9.6 billion mark in 1998. Even before Nike's
  superstar endorser and basketball great Michael
  Jordan retired from the game in 2003, Nike's
  creative juices seemed to have run dry.

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Business problem which NIKE encounter as it
evolved over time

• Nike wrestled with accusations that it exploited
  Asian factory workers.
• From 1997 to 1999, Nike didn't even have a chief
  financial officer.
• Knights technology and marketing antics that had
  served it well in the past seems not work when
  his iconoclastic company faltered.

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Business problem which NIKE encounter as it
evolved over time

• The unusual co-president structure was hardly
  Business 101, and many observers figured the new
  team wouldn't last.
• The succession issue remains the single biggest
  question at the company, although the new
  management structure has gone a long way toward
  assuring investors that the bench is deep.

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Business problem which NIKE encounter as it
evolved over time

• In the old days at Nike, the culture encouraged
  local managers to spend big and to go flat-out
  for market share instead of profitability.
• Because the company pumps out 120,000 products
  every year in four different launch cycles, local
  managers always had plenty of choice -- but also
  plenty of ways to screw up.

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Business problem which NIKE encounter as it
evolved over time

• The old jerry-built compilation strung together
  27 different computer systems worldwide, most of
  which couldn't talk with the others.
• Nike has also had to grapple with the touchy
  topic of sweatshop labor at the 900-odd
  independent overseas factories that make its
  clothes and sneakers.

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Business problem which NIKE encounter as it
evolved over time

• Of course, Nike still faces challenges. After
  several years of red-hot growth, European sales
  of higher-priced shoes have started to slide.

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Changing the business operations and processes,
the NIKE grown and matured.

• Nike has overhauled its computer systems
  ---------to get the right number of sneakers to
  more places in the world more quickly.

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Changing the business operations and processes,
the NIKE grown and matured.

• Has beefed up its management team
• Learn to manage those brands (eg. Cole Haan dress
  shoes, converse retro)
• Nikes growth strategy is to add to its portfolio
  of brand
• Overhauled its supply chain system

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Changing the business operations and processes,
the NIKE grown and matured.

• Open the market to the whole world
• Built an elaborate program to dial with charges
  of labor exploitation
• Turn the business model into a lifestyle (Nike
  made basketball shoes into an offthe-court
  fashion statement)

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• No matter what was happened to NIKE, and no
  matter what will happen to NIKE. The importance
  that NIKE shows to other companies is changing.
  
• In todays international market, companies should
  change their management system, change the
  balance between produces supply and design
• Every company needs to gain power to pursue the
  business model, NIKE tell us that we should have
  not only a pair of strong shoulder but also a
  effective brain when we are struggling in the
  world market.

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• THE END

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Team members

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