Lean Six Sigma Project at Nike Inc.

Lean Six Sigma
project at Nike Inc.

Part 1. Organization Background and
Work Process
 Background of Nike Inc. (subject organization): Nike Inc. is an American
multinational company which manufactures and markets sports goods including
sports equipment, accessories, sportswear and services.
 The mission of Nike is to bring about ‘groundbreaking’ innovation in the sports
industry to create sustainable products. The company envisions to boost its
creativity in manufacturing sports goods by deploying a diverse team of employees.
 The company also aims to create a positive impact in the global community and
establish itself as a socially responsible corporate citizen
 Industry sector: Nike Inc. leads the global sports industry. The Business Wire
reports that the global sports market reached the value of $bn 488.5 in 2018 and is
expected to achieve a growth rate of 5.9% to achieve a value of $bn 614.1 by 2022.
 Products and services: The products of Nike Inc consists of high quality
sportswear and sports accessories. The company divides its customer segments
into men, women, boys and girls. The company has also entered into partnership
with Apple Inc to manufacture Apple Watch Nike+ (Apple.com, 2019).
 The product line of the company today consists of smart watches as well. The
services which the company provides consist of providing ecommerce services
using its official website which enable consumers from all over the world view and
order for products. Nike Inc also provides customer assistance services to
customers on helpline numbers and email.

Part 1. Organization Background and
Work Process contd...
 Types of customers served: The following the two types of customers
which Nike Inc. serves through its superior products:
 Individual customers:
 The first group of customers of Nike Inc. consists of individual customers
who consume Nike products. The customers consuming Nike products
generally consist of people who are involved in sports and are health
conscious. The target age group of customers ranges from 15 top 40 days.
 Majority of customers of the company are urban residents. Nike gets
access to individual customers through its own outlets and official website
which has attached ecommerce portal (blue boxes)
 Business customers: The second type of customers the company serves
consists of business customers which purchase of stocks of finished goods
from the company to sell them ultimately to the end customers. The
business customers of the company consists of wholesalers, distributors,
retailers, retail chains and third party ecommerce

Part 1. Organization Background and
Work Process contd...
 Core department or division: The department of Nike
Inc. selected for the research would be marketing
department. The marketing department of the company
is responsible for marketing its products in the global
market.
 Selected work or service process: The marketing
department of Nike is responsible for marketing products
all over the world and generating high revenue. The table
below shows that the revenue of Nike Inc has increased in
2018 compared to the pervious years (Figure 2).
However, it can also be pointed out that though the
company has earned increase in revenue generation, the
rate of increase has not increased. The table shows that
the revenue increased by 10% percent in 2015 compared
to 2014. The revenue increase rate thereafter remained
stagnant at 6 percent.