The Business of Nike

Running head: BUSINESS OF NIKE
Business of Nike
Name of the Student:
Name of the University:
Author Note:

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Table of Contents
Part 1................................................................................................................................................5
Organizational setting:.....................................................................................................................5
Mission of Nike:..............................................................................................................................6
Organization (e.g., what product or service is provided, to what intended markets, and how the
product or service is distinct from those offered by competitors),..................................................6
Customers are (internal and external):.............................................................................................7
What value you add to the organization (how you help the organization achieve its mission):.....7
What role Christianity currently plays in this organization:............................................................7
Part 2................................................................................................................................................8
Part 3. Integrative Learning Project – Outline:..............................................................................14
Abstract:.........................................................................................................................................14
A. Organizational Setting:.............................................................................................................14
Background and industry of Nike Inc........................................................................................14
Leadership team:....................................................................................................................14
Industry:.................................................................................................................................15
B. Integration of Chapter Concepts to the Organizational Setting:...............................................17
1. Supply chain management:....................................................................................................17
1.1 Comprehensive description:............................................................................................17
1.2. Benefits:..........................................................................................................................20

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1.3 Strategies of further improvement:..................................................................................21
2. Six sigma, business strategy:.................................................................................................21
2.1. Comprehensive description:...........................................................................................21
2.2. Benefits:..........................................................................................................................22
2.3. Strategies of further improvement:.................................................................................22
3. Core capabilities:.......................................................................................................................23
3.1. Comprehensive description:...........................................................................................23
3.2. Benefits:..........................................................................................................................28
3.3. Strategies of further improvement:.................................................................................28
4. Innovation:.............................................................................................................................28
4.1. Comprehensive description:...........................................................................................28
4.2. Benefits:..........................................................................................................................28
4.3. Strategies of further improvement:.................................................................................29
5. Lean management:.....................................................................................................................29
5.1. Comprehensive description:...........................................................................................29
5.2. Benefits:..........................................................................................................................29
5.3. Strategies of further improvement:.................................................................................30
6. Bench marking:..........................................................................................................................30
6.1. Comprehensive description:...........................................................................................30
6.2. Benefits:..........................................................................................................................31

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6.3. Strategies of further improvement:.................................................................................31
7. Balance Scorecard:....................................................................................................................32
7.1. Comprehensive description:...........................................................................................32
7.2. Benefits:..........................................................................................................................33
7.3. Strategies of further improvement:.................................................................................33
8. Strategy Map:.............................................................................................................................34
8.1. Comprehensive description:...........................................................................................34
8.2. Benefits:..........................................................................................................................34
8.3. Strategies of further improvement:.................................................................................34
C. Conclusion:...............................................................................................................................35
D. References:................................................................................................................................36
E. Appendices:...........................................................................................................................42
Action Planning: This specifies objectives, responsibilities, and timelines for completion of
objectives...................................................................................................................................42
Description of Strategic Planning Process Used: This describes the process used to develop the
plan, who was involved, the number of meetings, any major lessons learned to improve
planning, etc. Strategic Analysis Data:.....................................................................................42
PESTLE of the US:................................................................................................................42
SWOT of Nike Inc.................................................................................................................43
Goals for Board and Chief Executive Officer:..........................................................................43

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Budget Planning:.......................................................................................................................43
Operating Plan:..........................................................................................................................43
Financial Reports:......................................................................................................................45
Monitoring and Evaluation of Plan:..........................................................................................45
Communication of Plan:............................................................................................................45

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Part 1.
Organizational setting:
Multinational companies operate in the global market and come under the influences of
the macroeconomic conditions. These macroeconomic conditions have impacts on every
business aspect of the multinational companies right from their mission to corporate structures
and even products. According to Lasserre (2017) global companies are being forced to adapt
their business models to adapt to the market environmental changes. The multinational
companies today are under continuous pressures to reduce their operating costs so as to increase
their profits. These companies today emphasize on different aspects to achieve the aims of cost
reduction to boosting their profits (Aithal, 2017). These facts are evident from the report
published in 2018 in the Financial Times which mentions that Nike, the company which would
provide the basis for the research, received less orders in 2018 owing to intense competition from
both international players. (Żmuda, 2017). The aim of the paper would be exploring eight key
concepts which business organisations use to retain and boost their competitive advantages. The
eight key concepts which the paper would explore are supply chain management, six sigma,
business strategy, core capabilities, innovation, lean management and bench marking. The
company which would lend the substratum to the research to explore these eight concepts would
be none other than the leading multinational sports goods manufacturer and marketer, Nike Inc,
commonly known as Nike. The company is based in the United States and listed on the NYSE.
The global sports goods manufacturing and marketing company operates under the leadership of
Phil Knight, Chairman Emeritus and Mark Parker, Chairman, President and CEO (Nike.com,
2019).

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Mission of Nike:
The mission reads, ‘Our mission is what drives us to do everything possible to expand
human potential. We do that by creating groundbreaking sport innovations, by making our
products more sustainably, by building a creative and diverse global team and by making a
positive impact in communities where we live and work.’(Nike.com, 2019). It can be
interpreted from the mission of the multinational company that it aims to market innovative
products which earn high profits and have less negative impacts on the environment. Thus, in
other words the company aims to use its innovative prowess to integrate sustainability and
profitability, thus protecting interests of the society and investors. This stakeholder centered aim
of the company expands to take all its business partners located in its host markets within its
ambit. The mission of the company then goes on to mention its internal stakeholders namely, its
global employee base. The company aims to ensure professional as well as personal wellbeing of
its employees. Thus, the mission of Nike Inc. can be interpreted as the very reflection of its
stakeholder centric business operations.
Organization (e.g., what product or service is provided, to what intended markets, and how
the product or service is distinct from those offered by competitors),
The products of which Nike Inc. offers aims four main customer segments namely, men,
women, boys and girls. The products of the company can broadly be divided into two categories
namely, sports goods like football and sports accessories. The company has also established
itself as leader in sports and casual wear segment. The company has also forayed into the
electronics industry. The product line of Nike today consists of smart watches which can be used
by wearers to keep track of their workout and sports sessions.

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Customers are (internal and external):
The main external customers of the Nike consists of customers. The external customer
base of the company can be divided into two divisions. The first division of customers of Nike
consist of individual consumers who purchase Nike products from its outlets. The second base of
external customers consists of business customers like third party sports good distributors and
retailers which sell Nike products.
What value you add to the organization (how you help the organization achieve its
mission):
The employees add value to Nike by operating more efficiently and providing superior
products to customers. The employees can work ethically in order to enable Nike achieve its
mission. Customers can help Nike to achieve its mission by purchasing more Nike products. This
would generate higher revenue for the company which would enable it mobilise more resources
to carry out innovations.
What role Christianity currently plays in this organization:
Christianity plays an important role in the company. The aim of the company to ensure
wellbeing of the stakeholders can be attributed to Christianity (Leone 2015).