Managing Enterprise in the 21st Century

This report discusses the management of enterprises in the 21st century, focusing on Nike as a case study. It covers topics such as the overview of the company, market audit, target market, marketing plan, and management team. The report also includes a financial plan for implementing the business idea.

Managing Enterprise
in the 21st Century

Table of Contents
Executive Summary.........................................................................................................................1
INTRODUCTION...........................................................................................................................1
Overview of company.................................................................................................................2
Overview of company.................................................................................................................3
Products and Services.................................................................................................................5
Market Audit...............................................................................................................................6
5 M's of marketing:...................................................................................................................10
Target Market:...........................................................................................................................11
Marketing Plan..........................................................................................................................14
Management Team....................................................................................................................17
CONCLUSION..............................................................................................................................23
REFERENCES..............................................................................................................................24

Executive Summary
Enterprise management is refer as the way or approach for managing different activities and task
of the business. It is essential that all task and activities of enterprise is successfully managed in
order to meet with the set goals of business. There are various function of business such as
human recourse, marketing, finance, production, IT, research and many more which is
significant for effective and efficient performance of business in market area. Staff member and
employees of organisation play crucial role in organisation that will help in enhancing business
performance as well as capability of business. It is very important that employees have right
skills and placed at right position in order to effectively conduct business task. Organisation
needs to develop strong and effective business strategies which is significant for improving
performance of company in market area. This will assist organisation to gain competitive
advantages over other rival companies. This report is based on Nike business idea which is
providing new and different products and services to customers in order to meet with the needs
of business. It is crucial for this company to identify and determine different aspects of business
environment in order to effectively introduce its new products. This company have idea to
launch new products or services that is workout equipment and tools. This will be helpful for
individual to carry out their workout practices at home. This idea is developing with the motive
of providing more safe and secure workout practices for individual. Further in this report market
audit has been conducted by considering potential customers as well as market area in which
company is providing its products and services. Target market for identifying the customer base
who need the products and services that is offered by respective company. Apart from this a
proper marketing plan has been developed with will includes all information related to this
business idea as well as strategies that will help in meeting with the goals. Management team
will help respective company to effectively conducting different business practices in most
effective and efficient manner. Financial plan of this business idea will includes information
regarding the financial recourse which will be needs for implementing business idea and
attaining desired objectives.
INTRODUCTION
There are different aspects which are related to management of enterprises in more effective
and efficient manner. It is very crucial for manager to consider different elements and functions
of organisation in order to successfully manage business practices and attain goals of
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organisation. Managing enterprise in 21 st century will includes new and innovative technology
and other tools that is significant for managing different task as well as accomplishment of
business goals. Organisation is developed by different employees and various function which is
essential for conducting business task as well as providing its products and services to customers.
Employees are essential part of organisation which will help in enhancing performance and
capability of business to develop effective and efficient products. Enterprise management will
includes day to day activities which needs to be successfully managed and control in order to
smooth performance of organisation. It is crucial for manager or top authority of management to
have effective networks that will support in enhancing business practices and effective
development of products and services. Chosen company for this report is Nike. This is one of the
well known America multination organisation which is developing high quality products and
services in order to meet with the needs and wants of customers. Nike company is dealing in
apparel, sports equipment and accessories industry and providing different types of products and
services to customers. This organisation was developed in year 1964 and founder of Nike
company was Bill Bowerman and Phil Knight. Headquarter of this company is located in
Beaverton, Oregon, U.S. This organisation is offering its products and services to different part
of world and successfully attracting large number of customers towards business. In this report
different elements which are related to management of enterprise has been determine. Nike
business is introducing new range of workout tools and equipments. This report will be
performed by 5 member and all task of this project is equally divided between team members.
This will include complete information about the company as well as its products and services.
In this report market audit has been conducted in order to analyse the market area and its impact
on business operation. Target market for the new product offering of respective company has
been determined. It includes analysis or evaluation of marketing plan that is developed for
introducing new workout equipment range and tool to customers. In this management team has
been determined for successfully managing different activities of business project. Apart from
this a proper financial plan has been developed that will include information regarding funds and
other financial resources.
Overview of company
Nike is consider as one of the leading company is sportswear sector as it is providing high
quality products which is according to the value of customers. Nike is an American company
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which was developed in year 1964. This company is offering its products and services form
many year which is significant in developing strong relationship with customers. This company
consist of designing, developing as well as manufacturing of products in order to meet with the
expectation or requirement of customers. It is marketing its developed products in all over the
world in order to meet with the requirement of customers and enhancing their experience with
Nike company. The major products of respective company includes cloths, footwear, accessories
as well as other equipments and services. Founder of Nike company is Bill Bowerman and Phil
Knight. This company was developed with the motive of bringing innovation and inspiration in
every athlete all over the world. This company is considering sustainability in its products and
services with the motive of building a global and creative team.
Overview of company
Nike is consider as one of the leading company is sportswear sector as it is providing high
quality products which is according to the value of customers. Nike is an American company
which was developed in year 1964. This company is offering its products and services form
many year which is significant in developing strong relationship with customers. This company
consist of designing, developing as well as manufacturing of products in order to meet with the
expectation or requirement of customers (TOMASSONI, 2019). It is marketing its developed
products in all over the world in order to meet with the requirement of customers and enhancing
their experience with Nike company. The major products of respective company includes cloths,
footwear, accessories as well as other equipments and services. Founder of Nike company is Bill
Bowerman and Phil Knight. This company was developed with the motive of bringing
innovation and inspiration in every athlete all over the world. This company is considering
sustainability in its products and services with the motive of building a global and creative team.
Mission Statement:” Make every effort to expand potential of humans ”
Vision Statement:” To bring innovation and inspiration to every athlete in the world.”
Nike stands to be one of the world's largest supplier of apparels and shoes. They also
manufacture a number of sports equipments. They have been growing gradually since day and at
present there are more than 75000 employees in company. The brand value company have been
increasing rapidly. Nike was also ranked at 89th position in 2018 in the list of fortune 500. the
name Nike comes from the name of a Greek goddess of victory. All the products of Nike are
marketed under its own brand and some other like Nike Pro, Air Jordan, Nike Blazers, Nike
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Dunk and so on. There are a number of high -profile players as well as team that are attached to
Nike. It is recognized by its Swoosh logo and its tag line “Just Do It”.
Growth of Nike have been glorious from the very beginning itself. Company had already
won 50% shares in athletic shoes market of U.S. After which Nike also went public. After this
co-owner of company came up with the very famous slogan of company that is “Just do It”. Also
after this company effectively started expanding their product line. Over the time Nike have also
acquired a number of companies. The first amongst them was Cole Haan in 1988. after this they
acquired Bauer Hockey in 1994. There are a number of companies which was acquired by Nike
such as Hurley International, Converse, Starter.
Nike have been strong financially as well. Company effectively became a member of
Dow Jones Industrial Average in year 2013. Aloca was replaced by Nike on the list. Instantly
after this quarterly profits of company increased 13%. Along with it there was increase seen in
shares of Nike as well. Seeing such profits Nike decided to initiate share buy back along with
stock split. They have been continuously announcing splitting of share as well as buy back of
shares. However at present due to the Covid -19 outbreak company have seen a downfall of 5%.
This is the first outbreak of company in last 6 years (Lämmle, 2020). At the same interval online
sales of company have immensely increased by 36% in just the first quarter. Along with this
growth in sales of personal training applications in China have also been up to 80%.
Over the time company have also gained a lot of negative media attention. The wages
Nike paid to its labourers in Vietnam, Indonesia, China have always been in question. They have
been working with poor health conditions and were also paid less. They were also allegedly
blamed for using child labour in their factories situates in Pakistan and Cambodia. There was
also a documentary shot which explained the poor conditions of child labours. After this there
was also a strike in the factory of Nike situated in China who were underpaying labour from over
past 20 years. In 2017, a news came forward which exposed Nike of the scams it is doing in
order to save their taxes. The news shows how Nike have been using fake offshore companies in
order to avoid taxes. There were some other small scandals which have been faced by Nike.
The marketing strategies, product range, goodwill, brand value of company have always
brought it up in market in terms of revenues as well as profits. They are also working for society
in a number of ways. They have developed a program in which the employees of company from
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around the world go out and give back to their community. Also the employees from Nike stores
are actively teaching children about healthy and active life.
Products and Services
NIKE, a well known brand which is named for Greek goddess of the victory, is the best and
number apparel and shows company all over the world. The company mainly designs, create, as
well as sells range of products to their customers around the globe. There products mainly help
the players in order to play basketball, football, soccer along with running, men's as well as
women's training and exercise and other sort of sports. Under the name of brand, it is said that
NIKE also markets and sell sports-inspired offerings for children for various recreational
activities and competition. Furthermore it has also been identified that it also sells some sort of
sportswear under Converse & Hurley brands. In addition to this, NIKE mainly generates around
60% of their overall sales outside the boundaries of US, where they mainly sells through
approximately 1,100 retail stores across worldwide. Along with this, they also have an e-
commerce site as well as thousands of retail accounts and large number of independent
distributors along with licensees. In the present competitive world, NIKE has been proven itself
one of the most popular brand which has developed a niches with the help of selling products
which includes apparels, footwear as well as different sort of sports equipment as per the need
and requirements of customers. The company mainly emphasizes on the products or offerings
such as basketball, running, soccer, athletics, baseball, combat sports, eye wear and many more.
In addition to this, company also sell their shoes for some outdoor activities such as golf,
cycling, tennis along with various recreational uses.
There are various competitors of Nike's which include Reebok, New
Balance, Adidas, Puma, Under Armour, and many more. All these competitors sell similar sort
of products which is being sell by NIKE. These are the organizations which commonly deals in
similar sort of products and services and create competition to the firm. The company easily
managed in order to expand their products and services with the help of various acquisitions with
the help of which it only retains Nike, Jordan, Converse, Hurley. At the start of 21st century, it is
said that Nike already have their retail outlets as well as distributors in around 170 countries as
well as its logo is already recognized across the world. In addition to this, it is also said that
competitors of the company provide different sort of products which is sometimes more unique
and attractive then the company. This will create competition to the company and for eliminating
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this, it is required by the management team to produce unique and innovative products as per the
needs and requirements of the customers at the marketplace.
Market Audit
Marketing audit is defined as systematic, comprehensive, analysis, evaluation as well as
interpretation of business environment that is both external and internal environment. In addition
to this, it also consist of analysis of marketing objectives, goals, principles, strategies that help in
gaining insight about issues as well as opportunities which has a direct impact on marketing
performance in a positive and effective manner (Iliev, 2019). For conducting marketing audit, it
is important for the managers that the audit should be systematic, comprehensive and
independent as well. One of the main reason to conduct market audit is to align marketing
activities with the goals and objectives. In addition to this, it also help an entity to gain
knowledge about the weak areas due to which company is able to develop effective strategies
that leads to increases in market performance and productivity of an organisation. Marketing
Audit allows an organisation to know about the level of competition prevailing at marketplace so
that strategies are developed in order to decline competition level and earn higher profits from
the market. By gain an understanding about strength as well as weaknesses of competitors, an
entity can make use of approaches that improve the level of customer base and performance in an
appropriate manner. Marketing audit consist of internal audit as well as external audit. The
managers of Nike is conducting market audit in order to know abut factors that impact on their
performance and productivity level. In addition to this, it also help company to bring out its new
idea of introducing workout tools and techniques at market in n appropriate manner. Both the
internal and external audit of respective company is given below:
External marketing audit: It is defined as an systematic approach to develop information
require for a company in order to identify and analyse issues which help in developing successful
marketing strategy. In addition to this, external analysis is take place by companies to customer
requirement that is important to retain and gain success at marketplace (Cenciarelli, De Santis
and Greco, 2018). In relation to Nike, its higher authorities make use of PESTLE analysis
framework to conduct external analysis. The PESTLE analysis is described below in context to
the respective organisation:
Pestle analysis: It is defined as a framework that is used by an entity to identify macro
environmental factors which has direct impact on the performance of an organisation. In addition
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to this, it assist an organisation to create an effective strategies that reduce the level of risk
associated with the external factors. This framework is mainly used by companies when they are
introducing new product or service and expanding operations in foreign markets. This
framework involves six elements or factors which is given below in relation to Nike:
Political factors: This factor consist of political stability, tax policy, government policy,
foreign trade and many more. It is determine that all such factors directly impact on company's
performance, it is important for managers to analyse all such factors in an effective manner (Lu,
Simnett and Zhou, 2019). In relation to Nike, it is an American based company that produce high
quality clothes and footwear. It is analysed the the government of U.S. Supports its companies to
expand their business globally as it leads to growth and development of economy. It is determine
that because of US sanction on Iran, the respective company that is manufacturer of footwear and
apparel is unable to develop the clothes and equipments for Iranian football team. This has
developed a negative brand image of Nike in mind set of Iranian. In addition to this policies of
U.S. Such as favourable international tax agreements, low interest rates help Nike to advance its
policies and attain growth in an effective manner.
Economic factors: This factor has a significant influence on how a company does
business & how profitable it is. It involve elements such as inflation rate, exchange rates, income
of consumers, interest rates, economic growth and many more. With reference to Nike, one of
the biggest threat or issue face by Nike is economic recession. The economic recession of Asian
and US can impact Nike as the organisation is manufacturing goods in U.S. and Asia as well. It
is analysed that Nike has a competitive market and to generate high revenue requires low labour
cost so it is important for the company to maintain low labour cost that help in enhancing the
level of revenue in an appropriate manner (Gul and Ng, 2018). Increase in the level of
competition & currency movement can impact on its performance in a negative manner.
Social factors: This area involve factors such as career attitude, population growth
beliefs, culture and tradition of the population. It is important for an organisation to focus on all
these factors and the offer product in market as it increases the level of acceptance and enhance
the performance of an organisation. In relation to Nike, it is determine that people nowadays are
more concerned of their health and did make compromise towards their health issues. For this,
people join fitness club that increase the sales of Nike products such as appeals, shoes and so on.
This impact positively on the profitability and productivity of company in an effective manner.
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Technological factors: It is determine that the behaviour and attitude of people towards
purchasing a product is getting changed because of technological advancements. People prefer to
buy those goods and service which is new and innovative in market. In context to Nike, it make
use of social media applications such as Facebook, Instagram and YouTube in order to promote
its offerings globally (Meilak, 2019). This hep company to increase its customer base level and
earn higher profits in an effective manner. In addition to this, it also assist company to strengthen
its market performance and market share in an appropriate manner.
Legal factors: It is important for organisations to follow all the rules and regulations
formulated by government as it help in systematic implementation of activities of the company.
The legal factor consist of consumer rights & laws, health and safety, product safety and so on.
With reference to Nike, its higher authorities is always focuses on complying with international
laws as it help in execution of activities without any conflicts and delays. In addition to this, the
company ensure product quality and also emphasis ion protecting the interest of staff members.
This help in developing positive mind set of employees which has a positive impact on the
performance and profitability of company.
Environmental factors: The preferences of people are now shifted as they are more
concerned towards protecting environment. This factor is significant because of increasing
scarcity of raw materials, carbon foot targets developed by government and many more. In
context to Nike, its higher authorities ensured that its mass production factories did not creating
pollution and also promised environmental friendly policies by all of its suppliers (Goffnett,
2020). It helps company to developed positive brand image at marketplace which in turn leads to
increase in performance and profitability of respective organisation.
Internal marketing Audit: Internal marketing Audit refers to audit over the things which the
company have greater control over. The major part included in internal audit consists of SWOT
analysis. Marketing mix which includes products, price, promotion and place (Chang and et. al.,
2019). It is necessary to keep regular reviews of performance in order to make sure that the goals
are effectively reached or not. Below mentioned is internal audit conducted on Nike:
Swot Analysis: Swot Analysis refers to an internal analysis of factors which brings
strengths, weaknesses, opportunities and threats of an organisation. Below mentioned is SWOT
performed on Nike:
Strengths:
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 The recall value of Nike is very high. It is a brand which can be easily memorized by
anyone. The symbol used by the brand is also enough for recognizing it. The brand
awareness of company is increasing along with market share of company in athletic
footwear market which is 31%.
 The customer base of company is huge. There are huge number of customers who are
loyal for the brand. There are a number of events and games managed by the company
and these loyal customers are regularly participating in them. The team of in house professionals that are working on creating designs for Nike
products are excellent. They are designing shoes as well as a range of athletic accessories
that are sold by Nike. One of the major reason behind success of Nike's business is their
team of designers and continuous development.
Weaknesses:
 The labour condition that Nike is managing at their factories is below average. There
have also been some documentaries which reveal the condition of labours and company
have gained a lot of negative media attention due to it.
 The pricing structure which is used by retailer is proving to be a negative factor for Nike.
The producers provide retailer's with around 60-70% of stock and the retailers often
forward it based upon their core customers (Drogalas and et. al., 2019). The dependency of Nike over U.S. Market is very high. Major part of sales made by Nike
is in U.S. The marketing strategy or targeting strategy of Nike is not efficient enough as it
still has to depend highly upon U.S. after having such huge brand awareness and
customer base.
Opportunities:
1. Nike is a brand which is known worldwide. Even after all this there are a number of
flourishing markets which are bringing lot of opportunities for Nike. Developing
countries like China, India, Brazil are great opportunity that Nike can use.
2. Nike have always been forward in bringing in new innovations in the market. Still with
the technological development coming around in this era there are a number of
innovations that can
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3. The supply of product in Nike as well as the production of company are independently
handed by different manufacturers. In order to make an efficient supply chain Nike can
but out some of these under their organisation.
Threats:
 Increase in competition is seen in the market of athlete accessories and apparels.
However, Nike is dominating the market of athletic industry still company posses fear
from a number of new entrants in the market.
 Nike is operating internationally. Due to this the changes in the rates of currency is
affecting the profits of company as well. The earnings of Nike are reported in US dollars
so it is highly volatile against the financial currencies of other countries.
 It is necessary for Nike to bear the pressure of promoting products as its competitors are
spending more on advertising.
5 M's of marketing:
Each and every organization have different sort of factors which creates value for the
business entity if uses in proper and appropriate manner. There are commonly five elements
which is required to be considered as major assets for the organization as they provide benefits to
the enterprise in long run. Along with this, it has also been said that these elements plays very
crucial role in the process of decision making as managers need to consider each and every
aspects related to this. In the present context of NIKE, it is said that the main five elements of
marketing are going to be discussed. These M’s includes Manpower (Staffing), Money
(Finance), Materials (Production), Minutes (Time), Machinery (Equipment). All these elements
are going to be discussed below which will assist in identifying the influence of these factors on
the business functions.
Money: The first and most critical element is money which is used to fulfil all the purpose of
organization. Whether it is related with gathering resource or hiring staff members, money is the
basic as well as most essential element for every business entity. In an enterprise, money is
usually employed to generate more and more money so they can perform all their business
functions in an effective and appropriate manner. In the present context of Nike, the brand is
estimated to have the value of around $ 28 billion, along with the net revenues of $ 36.4 billion
in the year 2018. It has also been said that money requires in the form of working as well as
fixed capital.
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Manpower : It is also known as the human resource of the company which include managerial as
well as non-managerial staff members who are employed in a business entity. They are the one
who mainly work to attain all their organizational objectives and goals. It is said that human
resources mobilize, utilize as well as allocate the physical & financial resources of a business
organization. In the present context of Nike, in the present era, there are almost 77,000 people
are employed who perform their role for the attainment of organizational targets.
Materials : Materials shows the raw materials along with intermediate products also known as
semi-finished products which are usually converted or assembled in finished offerings with the
assistance of specific processes as well as technology. In relation to the present entity Nike it is
said that company buy their raw material and semi finished products from different suppliers
within low or reasonable price.
Machinery: Machines and equipment are used to convert raw material into finished products. In
the present competitive era, I it has been observed that technology changes on a fastest manner
which increases competition at the marketplace. In the current investigation where Nike is the
chosen organization, it is said that managers adopt modern and highly advanced machinery
which helps them in order to reduce their overall costs and improve the quality of products and
services.
Methods: It refer to normal as well as prescribed ways of performing things so that high quality
products will be produced. In relation to Nike, managers use right methods to produce goods and
services which assist them in order to enhance their efficiency of operations.
Target Market:
A target market is considered as a group of user which helps business organization
in maintaining appropriate efforts or resources that helps in achieving goal as well as objective in
stipulated period of time. In addition to this, it is determined as a subset of whole market for
goods as well as services. It signifies the consumer who has same kind of characteristics such as
age, location, income as well as lifestyle that helps the organization in providing same kind of
product as well as services in order to satisfy them. The organization focuses on targeting large
number of customer for fulfilling their needs. In context of NIKE, it is considered as the
American International Company that provide different kind of products such as
footwear ,equipment, accessories to its customers for satisfy them (Hutchins, 2018). Therefore
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this company adopts STP approach in order to target ample of customer at Marketplace which
is going to be mentioned below:
Segmentation is considered as a process in which the organization segments their market
into different region for satisfying the need of customer. There are different elements such as
demographic, psychographic, and behavioral as well as geographical in which Nike segment its
market. Demographic segmentation is considered as a most appropriately adopted technique for
Nike company that helps them in easily assessing several sources like counting government
population that help in analyzing the sports attitude in an appropriate manner. Depend upon
demographic segmentation, NIKE focuses on targeting individual person as per gender, Lifestyle
as well as age (Choi, 2016). Therefore that NIKE focuses on targeting its customer among the
age of 11- 45 that help in building loyal customers towards organization. For example, in 2004
before World Cup NIKE focuses on generating a promotional campaign that help in inspiring
teenager to become athletes. Moreover, gender is considered as other factor that is adopted by
Nike in order to target its audience. At that time the male buying audience is greater than the
female. But in current time they focus on investing in female products. Therefore, the Nike
adopts strategic approach in order to introduce female sports that help them in achieving revenue
in future period of time. The other element is psychographic in which the Nike segment in
market into different region for satisfying the need of the customer. Herein, focus is on targeting
its user depends upon Lifestyle, activities, interest as well as personality. Herein, the aim of
NIKE is to create an interest of an individual person towards gym, sports as well as many more.
Therefore, the Nike bring the statement to bring innovation as well as inspiration for every
athlete in globe not to explain, run with me help in increasing sales in future period of time.
Apart from this organization also segment the market on the basis of behavior of consumer.
Therefore the NIKE focuses on giving opportunity to the consumer to share their views, opinions
as well as experience with their family and also involving the review or feedback of product on
internet which help in connecting or interacting with individual person in an appropriate manner.
It also helped the Nike in assessing purchasing behavior of an individual person which increases
the experience level of customer in future period of time. Apart from this, the organization
focuses on segmenting the market on the basis of geographical area that help them in
differentiate their product from competitive product in order to achieve competitive advantage
over rivalries at Marketplace.
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Target: Target marketing is considered as a next level of segmentation process in which
the organization selects the segment in systematic manner that will provide allowance to most
appropriate process that help in achieving goals as well as objective in a stipulated period of
time. Nike also select its target market depends upon size, measurability as well as many more.
They focus on serving the Nishi market that helps in targeting professional athletes as well as
sporty individual. Moreover, they provide an opportunity to an individual person to provide a
unique product to its consumer. They provide their own designed shoes which help in increasing
the awareness towards the brand that is differentiate from other footwear organization that help
in achieving competitive advantage over rivalries at marketplace. Then they also focus on
targeting its market that helps in achieving tremendous growth in future period of time. In
addition to this, Nike also focuses on bringing innovative ideas for manufacturing of sports
equipment that help them in targeting large number of customer at Marketplace. They also focus
on using marketing mix approach in order to target customer or product of the organization that
help in increasing the uniqueness (Schmidt, 2016).
Positioning: The last step of STP approach helps in taking decisions regarding the
positioning. Nike focuses on positioning its brand in order to achieve a leading position in
relation to sports equipment by offering high quality as well as innovative technology. They also
focus on using “just do it” approach in order to promote its product that help in achieving good
position in-market. Therefore, the main focus is to increase the brand image or reputation of the
company in front of customer at Marketplace. Therefore, positioning is depending upon the
perception as well as image that boost as well maintained in relation to sports equipment. The
organization focuses on improving the perception of individual person by conducting appropriate
marketing research that help in assessing the competitive firm at Marketplace (Liu, 2016)
On the basis of above mentioned STP approach, it has been analyzed that NIKE focuses
on providing unique product in order to target its customer at Marketplace. They also focus on
increasing brand image and reputation of the company that help in achieving leading position at
Marketplace. Nike focuses on positioning its brand in order to achieve a leading position in
relation to sports equipment by offering high quality as well as innovative technology. Nike also
focuses on bringing innovative ideas for manufacturing of sports equipment that helps them in
targeting large number of customer at Marketplace.
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Marketing Plan
A marketing plan refers to an effective and essential part of the whole business plan which
assist in performing all the marketing related functions in an effective and appropriate manner.
Best and most effective marketing strategy define as the foundation of well-written or systematic
marketing plan so each and every goals of the organization must be achieved within given time
period. It is said that marketing plan includes ample number of actions, without effective and
sound strategic foundation. A marketing plan is a written document which includes ample
number of elements which makes it easy to conduct all the business functions in a systematic and
well defined manner. These elements are going to be discussed in a detail manner as follows in
reference to the chosen organization which is Nike.
Executive Summary: For each and every business entity it is necessary to develop an
effective marketing plan which assist in performing all the business operations in a positive as
well as systematic manner. It has been identified that business entity needs to create strong as
well as best business strategies which is important for enhancing the overall performance of
business organization in the present market area. Nike is a business entity which deals in
apparels such as shoes for football, running and many other use. For introducing new range in
the marketplace Nike decided to launch workout equipment’s and tools. The main benefit of this
product is that for individual who want to do workout carry out their overall session at their
home by getting these equipment. For this, managers of the company need to prepare a
marketing plan so that all the activities can be drawn on a paper so they can easily be conducted
and produce positive outcomes in an effective and appropriate manner.
Vision and Mission of the company: Nike refers to one of the fastest and biggest leading
entity in sportswear sector which provides range of high quality products to their customers. It is
an American based company introduced in the year 1964. Nike mainly offer range of sportswear
products and services to their customers from last many years all over the world. The mission
and vision of the company are as follows:
Mission Statement of Nike:” Mission of the company is to make every efforts in order to
expand their potential of humans ”
Vision Statement of Nike: ” Vision of the company is to bring innovation as well as
inspiration to each and every athlete across the world.”
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Market research: The most essential element in a marketing plan is the market research
which is quite necessary for every business entity before starting or launching a new business at
the competitive marketplace. Market research help in understanding the overall market situation
in a detail manner which includes current trends, needs and requirements of the customers and
many more. In reference to the present investigation, researcher conduct a market analysis with
the help of which they can determine their target customers, needs and requirements of
customers and many more. In this context, it has been identified that in the current environment
people become more health conscious and fitness freaks. Large number of individuals prefer to
go gym and stay healthy but on the other hand some people are unable to go to gym due to their
strict schedule. This as a result, assist management team of Nike to introduce a new workout
equipment and tool kit which can easily be purchased by middle class families. The need of this
product first identified by the higher authorities at the marketplace and then decide to introduce
such product to fulfil needs and requirements of customers.
Target Market: Another element is target market which is one of the biggest challenge for
the organization. In reference to the present context of Nike, where they decide to launch
innovative workout equipment and tool it is quite essential to know the target market and
customers. This will help in attracting only those customers who are interested in this and want
to buy the stuff for themselves. In relation to this, target customers of the company are youngster
and those individuals who are health conscious and fitness freaks. These people can be College
going students, youngster and people who are health conscious and wants to stay fit. By
examining the target market it becomes very easy for the marketing team to attract these
customers towards them.
Marketing strategies: It is essential for an organisation to adopt effective marketing
strategies in order to promote their products and services. With the help of effective digital
marketing techniques it can be said that Nike will be able to grab attention of large number of
people towards them across the whole wide world. On the other hand in case traditional
marketing method, it becomes difficult to attract more and more customers towards them.
Therefore, it is said that online or digital marketing strategies are quite effective and beneficial
for the business organisation.
Marketing Mix: Nike Inc.’s marketing mix help in identifying the profitability as well as
growth of all the athletic footwear, equipment and apparel business. It has been identified that a
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company’s marketing mix includes all the strategies along with tactics which are going to
implement in order to execute marketing plan in an effective manner, with the emphasis on
products, process, place, people, promotion, physical evidence and price. Below mentioned is
the detailed description of Nike’s marketing mix.
Product: Nike is one of the fastest leading sportswear company mainly offers wide range
of shoes, apparel as well as equipment. These are the top selling products of the company since
the business was started in the year 1979. In addition to this, it has also been identified that Nike
have a brand which is named as Cole Haan which carries a line of dress as well as casual
footwear along with accessories for men, women and of children.
Price: Nike’s pricing strategy is based on premium pricing where they offer high quality
products at premium cost. It has also been said that Nike’s pricing strategy also uses of vertical
integration in their pricing in which they at their own participants in various channel levels as
well as take initiative in more than one channel of operations. As a result this can easily control
their costs as well as influences the overall product pricing.
Place: Nike have their stores all over the world and sell their product in around 20,000 retail
stores in the marketplace of U.S. as well as in approximately 200 countries all over the globe. In
addition to this, company have production facilities in the countries like Asia. It has also been
said that apart from physical stores, Nike sell their products through online mediums. Online
platform is quite beneficial as it help in attracting large number of customers towards them
across the whole wide world.
Promotion: In order to promote their products and services Nike adopt online platform for
promoting their new product range. This is one of the best method to promote the goods which
assist them in attracting customers from all over the world within limited time period. Along
with this, another benefit of this approach is that it is time and cost effective which assist the
business entity in order to promote their products within stipulated time duration.
People: In this context, people refer to the staff members and workforce of the company
which are the main asset of any business entity. In relation to Nike, it is said that around 77,000
people are currently employed in the business organisation which help in manufacturing high
quality products and services. In addition to this, it has also been said that the workforce of Nike
are quite skilled and qualified which as a result help the organisation to produce high quality
products and services.
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Process: Another essential element of marketing mix is the process of distribution of
products and services offered by Nike. This is the method which is the most effective as well as
needs to be systematic so that the whole process of distribution produces positive outcomes. In
reference to the online platform it is said that distribution channel are quite effective of the
company which increase the loyalty of customers towards the business entity.
Physical evidence: It is the last factor of marketing mix which says that physical presence of
the product plays very crucial role. It is quite essential for the management team to consider the
physical presence of products as it will assist in attracting large number of customers towards
them. In relation to this, Nike’s product is highly attractive and has some sort of uniqueness
which helps them to grab attention of customers towards them.
Management Team
Marketing and sales
Marketing and sales plays an important role within business organization. It is necessary
for organization to use different promotional campaign in order to increase the sales within
organization. It is necessary for business organization to manage the marketing department for
success as well as growth of the organization in future period of time. In addition to this, they
focus on increasing its revenue as well as profit margin which is necessary for success of
organization. In addition to this, the revenue of Nike in 1996 was the $6.4 billion USD but in
current time the sales of Nike is $32.4 6 billion USD in 2016. In addition to this, it also covers
31% of the international athletic footwear market which increases profit margin of the company.
There are around 700 outlets of Nike which is located across the globe which is the main
achievement of the organization. Therefore, it is vital for the organization to maintain the
marketing department for increasing the profit margin of the company. Therefore, the
organization focuses on providing unique product to its customer for satisfying them. In addition
to this, they also use different promotional tools such as advertisement, sales promotions,
publicity as well as a sponsorship which helps them in increasing brand image or reputation of
the company in front of customer at Marketplace. Hence, there are various promotional
techniques which are adopted by Nike that helps in increasing brand image or reputation of
company in front of customer at Marketplace. Therefore, there are various promotion techniques
which are adopted by Nike that is going to be mentioned below:
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Personal selling The management team of NIKE focuses on increasing contribution
towards increasing experience level of customer at Marketplace. They focus on recruiting
talented or trained employees that help in increasing the experience level of the customer
towards company. The customer also feel good towards product and services of the company
that help in taking decisions which will be beneficial in future period of time. Therefore, the
NKIE focuses on adopting personal selling that help in generating or providing superior
experience to its customer and also helpful in maintaining good relationship with its user in order
to promote its product during the particular phase of time period.
Direct marketing Nike focuses on using direct marketing tool for promoting its
innovative product to its target market in an appropriate manner. The company focuses on hiring
such a sales person that help in targeting the customer in particular period of time. For example
the company focuses on promoting its goods to sports business organization that help in
maintaining good relationship with customers and also influence them to purchase the product or
services of the company. They also focus on providing unique product and services to its
customer that helps in achieving competitive advantage over rivalries at Marketplace. The
marketing team also focuses on managing its member of team for increasing productivity in
future period of time.
Sales promotion here in the management team focuses on providing special offers to its
target customer in order to satisfy them. They focus on adopting sales promotion techniques in
order to influence new customer towards product as well as services provided by company. In
context of Nike Company, there are various sales promotion tools for attracting large number of
customer that help in increasing profit margin in future period of time.
Public relation Herein, the company focuses on maintaining good relationship with
public that help in increasing profit margin in upcoming period of time. They connect with the
public in an appropriate manner which will be beneficial for company in future period of time. In
addition to this, Nike also focuses on fulfilling its corporate social responsibility that helps in
increasing brand image or reputation of the company in front of user at Marketplace. There are
various approaches which are used by the management team of Nike in order to increase profit
margin and sales of the company in upcoming period of time. They also organize the events that
are related to the sports that help in interacting with its target customer in an appropriate manner.
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Therefore, from the above-mentioned analysis it has been assess that there are various
promotional tool which is adopted by the company for marketing and sales of goods and services
which help in increasing profit margin in future period of time. It also helps the company in
increasing its Goodwill as well as reputation of company in front of customer at Marketplace.
The main focus is to provide unique as well as differentiate product and services to its customers
for achieving competitive advantage over rivalries at Marketplace. Apart from this, marketing
and sales plays an important role within business organization. It is necessary for organization to
use different promotional campaign in order to increase the sales within organization. Hence,
there are various promotional techniques which are adopted by Nike that helps in increasing
brand image or reputation of company in front of customer at Marketplace.
Recruitment and HR
Recruitment is important part of every organisation because it is related to hiring of talented
employees within the firm so that form can perform its different functions effectively and
achieve the goals and objectives which are free determined by the management team. Achieving
the goals and objectives as well as using a proper strategy it is important for the firm to develop
the human resources department which conduct different processes related to employees within
the organisation which also include recruitment selection placement orientation and performance
appraisal of different individuals so that form can achieve its goals and objectives as well as
manage its most important human resources. In relation to Naik it is important for the
organisation to perform various functions related to development of HR team as well as a proper
recruitment process within the firm so that it can achieve its different strategies related to
marketing financial planning and other functions within the organisation. For achieving the goals
and objectives related to launching of new tools and techniques and fitness and training it is
important for Nike to hire a talented staff which can work on this innovative idea as well as help
the organisation in performing various functions related to marketing financing and dealing with
customer for achieving the goals and objectives. For achieving the goals and objectives related to
performance of new product within the market it is also important for Nike to conduct a proper
training and development program which is related to functioning of the organisation in a limited
budget. There are various kinds of training programs like on the job training, off the job training,
vestibule training and many more which are to be used by Nike before implementing the product
within the market (Hoffman, Wulf and Stubner, 2016). In relation to human resources
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department of organisation has to make a separate budget where it requires 20 employees in
human resources department that can work towards the direction of managing human resources
in an effective way. Nike is a consistent front within the market so it will be easier for
organisation to look it up appropriate HR manager with the firm and perform different functions
related to hiring of talented employee as well as military training them within the organisation
for proper execution of operations in marketing and other sectors of product launch.
For managing a proper hiring process within the organisation it is also important for Nike
to formulate effective strategies related to talent management where the following steps are
required to be fulfilled. Identification of job requirements, advertising about job requirements,
taking applications from interested candidates, conducting interviews, selection of appropriate
candidate, placement and orientation, performance appraisal, follow up. These are the following
steps which have to be followed by HR department of Nike to launch new tools within the
market and achieve maximum satisfaction of the customer. For performing various functions
related to launching activity marketing activity and management of the products and product line
it is important for the organisation to hire a proper HR manager which will address the issues
related to compensation and management of human resources within the organisation and will
also promote different functions for proper involvement of training and development for each
and every individual who is related to the process of launching the new product.
Admiration
In order to launch the new products and services it is necessary to set up a productive
administration team. Administration team is the backbone of an organisation which performs a
number of necessary tasks of company which can be otherwise time-consuming. The roles of
administration teams must stay similar in both small as well as large organisations. It is
necessary that task is related to growth of the company which helps the administration team.
Administration team also runs the day today business and operations in an organisation such as
communication, design promotion, web related issues, financial management and so on.
In order to launch this new product in Nike and administration team is required which will be
responsible for a number of functions (Van Doorn, Heyden and Volberda, 2017). They will be
dealing with queries, taking minutes, managing appointments, data entry, arranging a number of
internal as well as external events which will be necessary for the company while they are
launching the product. In Nike their new station team for this new product will contain 25
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employees. It is necessary that all these employees are skilled enough in business studies and law
in order to understand the needs of their job. It is necessary that they have good negotiation skills
as they need to deal with both internal as well as external shareholders of the company. They
need to be professional all the time and well presented in order to make a good impression on the
stakeholders from which they are dealing.
A manager is required who will be hiring the administration team for the launch of the
new product all of whom will be qualified enough to carry out the task smoothly. These tasks
include providing support to a number of departments such as sales representative, senior
management as well as property managers. It is the duty of administration team to efficiently
handle the social media accounts which will be promoting the new product launch of company.
The accommodation as well as travelling of all the customers and employees of the organisation
for the purpose of new launch will also be handled by administration team.
There are a number of benefits which will be provided to Nike by setting up this administration
team such as they will have a general concept of administration and the ability of the employees
in the organisation can be increased. It is necessary that performance of all the departments in the
organisations is linked together towards a common perspective and goal which will be
maintained by the administration team (Georgakakis, Greve and Ruigrok, 2017). Other than this
administration team will also provide motivation to the workforce and make sure that they are
well aware about the goals and objectives of organisation. The major aim of this administration
team will be to make sure that all the rules and regulations which are mentioned in policies and
procedures of the company are applied effectively. Without an administration team organisation
is never sound and all the task of the organisation cannot be aligned towards a common goal.
Product development
It is also important within the organisation to formulate a product development team which is
important for attracting the customer as well as using appropriate methods of marketing so that
they can develop a product which can be used by the organisation to target its customers. In
relation to Nike it is going to launch workout equipment and tools where the product
development department play an important role within the functioning of this entire launching
program. This is because these are the products which are helpful to the work individuals for
their work out practices at home where the idea of development with the motive of providing
safe and secure workout practices to individual. Show product development is important part
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within this function where organisation has to identify different functions related to the
competition within the market as well as the development of product by eliminating the
competitors. In relation to the current market of sports industry this product is unique which
provide assistance to different individuals for their home workouts. In current time due to covid-
19 impact there unfavourable condition for the individuals who want to do workout in gym and
clubs (Ruiz-Jiménez and del Mar Fuentes-Fuentes, 2016). This tool will assist different
individuals and reducing the negative impact of workout where these equipment and tools can be
used by the individuals to perform various workout activities at home without going gyms and
clubs. Product development team is important here because it help the organisation developing
the product with the help of research and development department where organisation is going to
launch the product within the market. It is a unique product which provides a competitive edge to
the organisation because product consists of various approaches which are directly related to the
benefit of and customers. In relation to product development department there are various
functions which have to be performed by the Nike for launching the new product within the
market. In production department there is requirement of 50 individuals for different functions
which are related to launching of the new product as well as development of new product in an
appropriate by conducting a proper research.
Financial plan:
Financial plan is defined as estimation of future income, expenses by help of a range of financial
tools such as income statement, cost sheet and many more. In relation to above business, a
financial plan is produced below in such manner:
Cost sheet for first three years:
Particulars Year 1 Year 2 Year 2
Fixed cost:
Licensing cost 4000 0 0
Salary to professionals 6000 6000 6000
Rental payments 8500 8500 8500
Interest payment 1500 1500 1500
Insurance 1200 1200 1200
Total fixed cost 21200 17200 17200
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Variable cost:
Material cost 10000 10200 9500
Wages to labour 1000 1200 950
Marketing cost 1800 2000 2500
12800 13400 12950
Projected revenues in first three years:
Revenue stream for first three years
Number of items
sold in a year
Price for each
item
Total revenue
per annum
800 20 16000
1000 20 20000
950 20 19000
Assumptions:
 Number of sold items are assumed.
 Price per item has been assumed.
BEP: Fixed cost/contribution
Contribution: Sales -variable cost
Year one: 16000-12800
= 3200
Year two: 20000-13400
= 6600
Year three: 19000-12950
= 6050
Hence,
BEP (1st year) = 21200/3200
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= 6.625 items
2nd year= 17200/6600
= 2.60 items
3rd year= 17200/6050
= 2.84 items
CONCLUSION
From the basis of above mentioned report it has been analysed that it is necessary to
make appropriate business plans for managing and handling different operations or activities of
business organization in an appropriate manner. Therefore, it is necessary for organization to
provide explanation regarding the business plan that helps in interacting with employees in an
appropriate manner. They also focus on explaining different kind of product which is included in
business plan such as marketing audit, target market, marketing plan, management team as well
as financial plan that is necessary to consider for success as well as growth of the business
organization in future period of time. The company focuses on targeting large number of
customer for increasing profit margin and sales in future period of time. In addition to this, it is
necessary to handle the management team that help in interacting with its employees in an
appropriate manner that is also explain in this assignment.
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