Nike Inc.ppt

NIKE Inc. Dian Ratnasari (0849018) Dwi Martiyanti (0848022) I Made Sindhu Yoga (0848037)

Case Summary  Nike

Inc. is a major publicity traded sportswear and equipment supplier based in the United States.  The company was founded on January 25, 1964 as Blue Ribbon Sports by Bill Bowerman and Philip Knight, and officially became Nike, Inc. in 1978.  Philip Knight officially announced his resignation as CEO and president of the world's largest sneaker company

 Perez

joined Nike from S.C. Johnson & Son, a household-products company that he had helped to expand into multiple international markets.  Knight hoped that Perez could bring some more organizational and managerial discipline to a company that has been expanding rapidly into new global markets as well as acquiring more brands

 Perez,

appears to be well-suited to help Nike as it morphs into a less volatile, global consumer concern. He appears to have two key strengths: Experience selling in multiple markets across the world as well as managing a big portfolio of consumer brands.  Fact is, Nike no longer singularly focuses on making and marketing sneakers. It now owns and manages brands such as dress and casual-shoe

 So

why did Knight even hire Perez? Because he wanted someone with strong financial and managerial discipline and a track record overseeing the growth of a profitable consumer-products company.

Issue  The

board of Nike Inc. wanted somebody with a different viewpoint to drive the company down a different path in terms of being experienced with multiple brands and also having strong international experience

Problems  What

makes Nike become a strong brand especially for maintaining and managing Nike’s brand?  What makes Perez's leadership (as the first outsider) was clashing with Nike insiders?

Analysis #1  Sport

Sponsorship sponsorship has not only increased the expense of sponsorship but it has also created environment where cutting through advertising clutter has become more difficult  Nike History Nike has built its empire based on its mission to "to bring inspiration and innovation to every athlete in theworld"

 Cause-Related

Marketing Cause-related marketing (CRM) is commercial activity by which businesses and charities or causes form a partnership with each other to market an image, product, or service for mutual benefit.

Analysis #2 Knight said the differences in style and strategy under Perez caused management to operate at only 80% efficiency.  Perez didn't have an intuitive sense of Nike as a brand  Perez’s spreadsheet and consultants thought this was a good idea - but in this industry, it would be market-share suicide 

Recommendation 

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Of all the commercial advantages a Nike corporation may seek to exploit through sport sponsorship Refusing to let go of the helm is a though thing to do, so it won't happen that easy. Succesion planning is the priority of every organization. If a charismatic leader is to remain on the premises after a replacement arrives, boards must draw clear lines of demarcation to allow the newcomer to do his or her job.