Strategic Management for Nike

RUNNING HEAD: STRATEGIC MANAGEMENT
STRATEGIC MANAGEMENT
Name of the Student:
Name of the University:
Author’s Note:

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Executive Summary:
To develop a future strategic plan for Nike, the Board of Directors of Nike has approached a
strategic consultant. The strategic consultant has the responsibility to develop a strategic plan
for this sports accessories business organisation by analysing the business operation of Nike.
To do that the strategic consultant has to analyse the mission and objectives of the company,
external and internal analysis of the company, strategic choice and implementation of the
strategy. For the external analysis part, PESTLE analysis and industry scenario will be
discussed. For the internal analysis part, SWOT analysis, strategic capabilities, and business
canvas model will be discussed. For the strategic choice part, Ansoff model, Porter’s generic
model, and functional strategic analysis will be done. In the end, the implementation of the
strategic choice will be discussed. This strategic change will help the company to defend its
core business in future. To accomplish a competitive advantage, these modifications are
needed.

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Table of Contents
Task 1: Vision, mission and objectives:.....................................................................................3
Vision:....................................................................................................................................3
Mission:..................................................................................................................................3
Objectives:..............................................................................................................................4
Task 2: External analysis:..........................................................................................................4
PESTLE analysis:...................................................................................................................4
Competitive advantage among its direct competitor:.............................................................7
Industry scenario:...................................................................................................................8
Task 3: Internal analysis:...........................................................................................................9
SWOT analysis:.....................................................................................................................9
Analysis of mission statement and vision statement:...........................................................11
Strategic capabilities:...........................................................................................................11
Business canvass model:......................................................................................................13
Task 4: Strategic choice:..........................................................................................................14
Ansoff Matrix:......................................................................................................................14
Porter’s generic strategy:......................................................................................................16
Functional strategy analysis:................................................................................................18
Task 5: Implementation:..........................................................................................................20
References:...............................................................................................................................22

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Task 1: Vision, mission and objectives:
Nike. Inc, the American international corporation headquartered near Beaverton,
Oregon, in the Portland metropolitan area, is the manufacturer of footwear, sports
accessories. In 1964, this business organisation was established by Phil Knight and Bill
Bowerman. Board of Directors of Nike Inc has requested a strategy consultant for the future
strategic direction of this business organisation. The strategic consultant has the responsibility
to analyse the business operation, the business strategy of this organisation to set an effective
strategic plan for Nike Inc.
Vision:
The vision of this business organisation is “To bring inspiration and innovation to
every athlete in the world”. There are the key elements of this vision statement of this
company which are ‘Inspiration’, ‘Innovation’, and ‘to every athlete’. The management team
of this organisation uses its marketing to create and encourage demand. To increase the
demand for Nike’s product, this organisation spend billions of dollars. As an innovative
business organisation, Nike Inc prioritises the innovation procedure. Through innovation, this
company increase its sale. The third key element of the vision statement is the athlete.
According to this organisation if a person has a body then that person is an athlete. The
demand generation strategy of this company follows the vision of Nike Inc.
Mission:
The mission statement of this organisation is to “do everything possible to expand
human potential” (Nike News 2019). By analysing the mission statement of this organisation
it can be said that there are certain key elements of this mission statement, which will be
discussed here. The aim of this company is to influence the customer’s psychology. The
customer should have a feeling that wearing products of Nike can be ideal for them. To

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generate demand this organisation has to innovate new products for the customers.
Sustainability is a crucial part of the mission statement of Nike Inc.
Objectives:
The objective of this organisation is to make a profit for its shareholders. To achieve
the objective, the management team of this organisation has taken several small aims and
steps. The goal of this organisation is to enhance partnerships. The opportunity to work with
its stakeholder in the apparel industry must be prioritised. To accomplish its goal and
objectives, this organisation produce superior products, maintain the integrity of the
international brand and empower the innovation procedure for nee design. These profit-
oriented goals of this company will be balanced by its social and sustainable responsibilities.
Task 2: External analysis:
PESTLE analysis:
PESTLE analysis, which a framework used by the management team of a business
organisation, examine the macro-environmental factors of a business organisation. These
factors can create an impact on the business organisation. In this part, a PESTLE analysis will
be done to evaluate the macro-environmental factors of Nike. This analysis will identify the
political factors, economic factors, social factors, technical factors, legal factors and
environmental factors of this organisation.
Political factors  The stable political scenario is
beneficial for a global business
organisation like Nike.
 Expansion of free trade policy can be
an opportunity for this company.