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Nike Departmental Study in Surat City

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8 views73 pages

Nike Departmental Study in Surat City

Nike Pdf

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umarjassat7
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Available Formats
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A PROJECT REPORT ON

NIKE

“DEPARTMENTAL STUDY OF NIKE IN SURAT CITY”

SUBMITTED BY:

CHINCHANWALA AMINUDIN SOKATALI

TYBBA (SEM-5)

GUIDED BY:

PROF. DARSHAN DESAI

SUBMITTED IN FULFILLMENT OF THE REQUIREMENT

OF BBA PROGRAMME

(2023-2024)

[Link] COLLEGE OF ARTS ANS SCIENCE, BILIMORA

(BCA & BBA SELF FINANCE COURSE, BILIMORA)

AFFLIATED TO

VEER NARMAD SOUTH GUJARAT UNIVERSITY, SURAT


INSTITUTION CERTIFICATE (COLLEGE)

V.S. Patel College of Arts & Science, Bilimora.


Bachelor of Business Administration
certificate

CLASS: - T.Y.B.B.A. Sem-5 ROLL NO.:

This is to certify that CHINCHANWALA AMINUDIN SOKATALI has


successfully completed the project work entitled “DEPARTMENTAL STUDY OF
NIKE IN SURAT CITY” as the 5th Semester requirement for the degree of Bachelor of
Business Administration as per the requirements of Veer Narmad South Gujarat
University rules and regulations, during academic year 2023-2024.

________________ ________________ ___________


Sign. of Project Guide ([Link] Bhavsar) (Dr. A. R. Bajaj)

Place: Bilimora.
Date:
Sign. of Examiner: _______________
DECLARATION

I hereby declare that this project report entitled “DEPARTMENTAL STUDY OF NIKE
IN SURAT CITY” Is result of authentic work carried out during the period of 8 weeks
under the guidance/supervision of staff B.B.A department of [Link] COLLEGE OF
ARTS AND SCIENCE (BCA & B.B.A SELF FINANCE COURSE,BILIMORA). I also
declare that the data provided in this report are to the best of my knowledge, the study
carried out by me as a part of programmed structure.

I further declare that the personal data and information received from all respondent
during the survey has not been submitted to any other university or institute for any
other purpose and it is used for academic purpose only.
ACKNOWLEDGEMENT

I take this opportunity to thank all those who have contributed their support in preparing
this report. Firstly, I would like to express my deep sense of gratitude towards
[Link] COLLEGE OF ARTS & SCIENCE (BBA & BCA SELF FINANCE
COURSE, BILIMORA) for providing me this opportunity to study marketing depth as
part of course curriculum.

I am very thankful to our principal sir [Link] SIR for his keen interest and for
providing me the opportunities as well as the facilities in my project work.

I am very much thankful to our coordinator PROF DARASHAN DESAI, HOD OF


DEPARTMENT for his keen interest and for providing me the opportunities as well as
the facilities in my project work.

I would miss the opportunity to thank my project guide [Link] CHANDHOK


and other staff members, [Link] NAIK, PAYAL RATHOD who has provide
continuous guidance and support and always been helping in completing this project,
without their assistance this would not been possible.

Last but not least, I am also grateful to my parents, colleagues, friends whose
continuous support has always boosted my moral towards working on this project and I
am also grateful to the co-operation of respondent of survey, without their sincere
response was not possible.
EXECUTIVE SUMMARY

This report is all about to show a Marketing plan for Nike‘s products; with reference to
older offerings the report shows the plan that how can Nike offer new products in the
market. With respect to this the report contains comprehensive marketing plan
components including company analysis (Nike‘s current and future status), situation or
market analysis and competitors analysis; the report shows the Nike‘s objectives and
marketing strategies in terms of its 4ps that is it is shown that Nike can offer and
increase its product range by offering other related products as aerobic products to its
customers and set value-based pricing strategy accordingly, and for new offerings it can
increase its other media other than commercials that is it can focus more on social
media to promote its new products and it may expand its business in other countries as
China, Middle-East etc. Beside this, the financial budget of this marketing plan has been
discussed which is been forecasted by reviewing Nike‘s previous years revenue and
marketing expenses figures. Also execution plan as well as contingency plan has been
shown which is thoroughly depends upon Nike‘s senior management and team work
which would make its objectives possible new offerings.
INDEX;-
SR PAGE
NO. CONTENT NO.
01 CHAPTER 1: GENRAL INFORMATION 1
Name and location of company 2
Name and location of other branches 4
Year of Establishment 4
Brief history 5
Founders 7
Key peoples of Nike 9
Vision and mission statement 9
Values shared 10
Organization structure 10
Hierarchy 11
Controlling systems 11

02 CHAPTER 2: PRODUCTION DEPARTMENT 12


Raw materials Used 13
Machines used 15
Products and service produced 15
Process used 15
Material handling Equipment used 16
Inventory control method 16
Master schedules 17
Bill of materials file 17
Quality control technique 19
Names and addresses of plants 20

03 CHAPTER 3: MARKETING DEPARTMENT 21


List of products and services 22
Number of customers 22
Marketing mix 23
Major competitors 28
Specific distribution channel 29
PLC concept 30
Market segmentation 31
Positioning strategies 32
Promotion tools used 33
Pricing method followed 33
Pricing strategies of Nike 34
CRM practices 34
Swot analysis of Nike 36

04 CHAPTER 4: HRM DEPARTMENT 37


Recruitment procedure 38
Selection process 39
No. of employees 40
Attendance maintenance 40
Training given 41
Fringe benefits provided 41
Employees safety mechanism 43
Specific hr policies 43
Performance appraisal 43
Strategic HRM 44
Employees feedback mechanism 44

05 CHAPTER:-5 FINANCE DEPARTMENT 45


Income statements 46
Balance sheets 48
Ratio & their interpretation 50
Accounting procedure 51

06 CHAPTER:-6 PURCHASE DEPARTMENT 52


Purchasing lead time 53
Raw materials Ordered 53
List of suppliers 54
Any other specific details 54

07 CHAPER:-7 SAFETY DEPARTMENT 63


Work‘s men compensation policy 64

08 BIBLIOGRAPHY 65
CHAPTER 1:-
GENERAL
INFORMATION

HDHRYHR;KL
[Link] COLLEGE OF ARTS & SCIENCE, BILIMORA Page 1
 NAME & LOCATION OF THE COMPANY

Nike World Headquarters near Beaverton, Oregon

Formerly Blue Ribbon Sports, Inc.


(1964 -1971)

Type Public

Traded as NYSE: NKE (Class B)


DJIA component
S&P 100 component
S&P 500 component

ISIN US6541061031

Industry Apparel
Accessories
Sports equipment

Founded January 25, 1964; 58 years ago

[Link] COLLEGE OF ARTS & SCIENCE, BILIMORA Page 2


Founders Bill Bower man
Phil Knight

Headquarters Beaverton, Oregon, U.S.

Area served Worldwide

Key people Phil Knight


(Chairman Emeritus)
Mark Parker
(Executive Chairman)
John Dona hoe
(President and CEO)

Products Athletic footwear & apparel


Athletic & recreational products
Sports equipment

Revenue ↑US$46.71 billion (2022)

Operating income ↑US$6.86 billion (2022)

Net income ↑US$6.05 billion (2022)

Total assets ↑US$40.32 billion (2022)

Total equity ↑US$15.28 billion (2022)

Number of employees ↑79,100 (May 2022)

Subsidiaries ↑Converse

Website [Link]

[Link] COLLEGE OF ARTS & SCIENCE, BILIMORA Page 3


 NAME & LOCATION OF OTHER BRANCHES

 YEAR OF ESTABLISHMENT

Nike was founded in, 25 January 1964, Eugene, Oregon, United States.

[Link] COLLEGE OF ARTS & SCIENCE, BILIMORA Page 4


 BRIEF HISTORY OF NIKE

Nike, originally known as Blue Ribbon Sports (BRS), was founded by University of
Oregon track athlete Phil Knight and his coach, Bill Bower man, on January 25,
1964. The company initially operated in Eugene, Oregon as a distributor for Japanese
Shoe maker Onitsuka Tiger, making most sales at track meets out of Knight's auto
mobile.

According to Otis Davis, a University of Oregon student-athlete coached by Bower man


And Olympic gold medalist at the 1960 Summer Olympics, his coach made the first pair
Of Nike shoes for him, contradicting a claim that they were made for Phil Knight.
According to Davis, "I told Tom Brokaw that I was the first. I don't care what all the
Billionaires say. Bill Bower man made the first pair of shoes for me. People don't believe
Me. In fact, I didn't like the way they felt on my feet. There was no support and they
were too tight. But I saw Bower man made them from the waffle iron, and they were
Mine.

In its first year in business, BRS sold 1,300 pairs of Japanese running shoes grossing
$8,[Link] 1965, sales had reached $20,000. In 1966, BRS opened its first retail store at
3107 pico Boulevard in Santa Monica, California. In 1967, due to increasing sales, BRS
Expanded retail and distribution operations on the East Coast, in Wellesley
Massachusetts.

By 1971, the relationship between BRS and Onitsuka Tiger came to an end. BRS
Prepared to launch its own line of footwear, which was rebranded as Nike, and would
Bear the Swoosh newly designed by Carolyn Davidson. ] The Swoosh was first used by
Nike on June 18, 1971, and was registered with the U.S. Patent and Trademark
Office on January 22, 1974

In 1976, the company hired John Brown and Partners, based in Seattle, as its
first advertising agency. The following year, the agency created the first "brand ad" for
Nike, called "There is no finish line", in which no Nike product was shown by 1980, Nike
Had attained a 50% market share in the U.S. athletic shoe market, and the
Company went public in December of that year.

[Link] COLLEGE OF ARTS & SCIENCE, BILIMORA Page 5


Wieden + Kennedy, Nike's primary ad agency, has worked with Nike to create many
Print and television advertisements, and Wieden + Kennedy remains Nike's primary ad
agency. It was agency co-founder Dan Wieden who coined the now-famous slogan
"Just Do It" for a 1988 Nike ad campaign, which was chosen by Advertising Age as one
of the top five ad slogans of the 20th century and enshrined in the Smithsonian
Institution. Walt Stack was featured in Nike's first "Just Do It" advertisement, which
Debuted on July 1, [Link] credits the inspiration for the slogan to "Let's do it", the
Last words spoken by Gary Gilmore before he was executed.

Through out the 1980s, Nike expanded its product line to encompass many sports and
Regions throughout the world n 1990, Nike moved into its eight-building World
Headquarters campus in Beaverton, Oregon. The first Nike retail store, dubbed Nike
town, opened in down town Portland in November of that year.

Phil Knight announced in mid-2015 that he would step down as chairman of Nike in
2016. He officially stepped down from all duties with the company on June 30, [Link] a
company public announcement on March 15, 2018, Nike CEO Mark Parker said Trevor
Edwards, a top Nike executive who was seen as a potential successor to the Chief
executive, was relinquishing his position as Nike's brand president and would Retire in
August.

In October 2019, John Dona hoe was announced as the next CEO, and succeeded
Parker on January 13, 2020 In November 2019, the company stopped selling directly
Through Amazon, focusing more on direct relationships with customers On June 24,
2021, during an earnings call with investors, CEO John Dona hoe stated that "Nike is a
Brand that is of China and for China", in response to a question about competing
Against Chinese brand.

[Link] COLLEGE OF ARTS & SCIENCE, BILIMORA Page 6


 FOUNDERS

PHILL HAMPSON KNIGHT:-

Philip Hampson Knight is an American billionaire businessman. He is the co-founder


And chairman emeritus of Nike, Inc., and was previously chairman and CEO of the
Company. As of July 23, 2020, Knight was ranked by Forbes as the 24th richest person
in the world, with an estimated net worth of US$54.5 billion.

 Born: 24 February 1938 (age 84 years), Portland, Oregon, United States

 Education: Stanford Graduate School of Business (1962),

[Link] COLLEGE OF ARTS & SCIENCE, BILIMORA Page 7


BILL BOWERMAN:-

William Jay Bower man was an American track and field coach and co-founder of
Nike,Inc. Over his career, he trained 31 Olympic athletes, 51 All-Americans, 12
American record- holders, 22 NCAA champions and 16 sub-4 minute milers.

 Born: 19 February 1911, Portland, Oregon, United States

 Died: 24 December 1999, Fossil, Oregon, United States

 Awards: Bronze Star Medal, Silver Star

[Link] COLLEGE OF ARTS & SCIENCE, BILIMORA Page 8


 KEY PEOPLES OF NIKE

 John Donahue. President & CEO Director.


 Philip H. Knight. Chairman Emeritus.
 Mark Parker. Executive Chairman.
 Dirk-Jan van Ameren. Chief Marketing Officer.
 Andy Campion. Chief Operating Officer.
 Matthew Friend. EVP & Chief Financial Officer.
 Thomas Clarke. President, Innovation.
 John R. Hooke III.

 VISION STATEMENT

We see a world where everybody is an athlete — united in the joy of movement.


Driven By our passion for sport and our instinct for innovation, we aim to bring
inspiration to every athlete in the world and to make sport a daily habit.

 MISSION STATEMENT

Our mission is to bring inspiration and innovation to every athlete in the world. [If
you Have a body, you are an athlete.] This mission 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.

[Link] COLLEGE OF ARTS & SCIENCE, BILIMORA Page 9


 VALUE SHARED

 Do the right thing


 Be on the offense always
 Serve athletes
 Create the future of sport
 Win as a team

 ORGANISATIONAL STRUCTURE

[Link] COLLEGE OF ARTS & SCIENCE, BILIMORA Page 10


A major part of Nike‘s success is due to Nike‘s organizational structure. The firm has
Chosen, from different types of organizational structures, the one that suits them the
most. Nike‘s organizational structure is one of the best organizational structure
examples in the world.

An organizational structure defines task delegation, and line authority establishment


within an organization.

 HIERARCHY

North America, Western Europe, Central & Eastern Europe, Greater China, Japan
and Emerging markets are the regional divisions of Nike structure. The operations of
each division are separate from each other. The regional divisions are given autonomy
in taking decisions in their regions.

 CONTROLLING SYSTEMS

The Nike Company currently uses flow charts to depict step by step processes when
Mapping out ideas for events such as new product launch or holiday transitions, run
(Trend charts) to show what items are selling more/better in a particular area and cause
And effect(fishbone diagrams) to show the outcome of the selected reports or ideas.
Continuous improvement is used in the company so that it can continue to grow and
Prosper.

Through the use of opinions in which customers lend during customer service surveys as
Well as their store visits help to keep the company aware of how to become the best in the
Retail Clothing market. Supplier certification as well as inspection at the time the goods
Are finished is also used for inspection to ensure quality service. Nike also implements
The Six Sigma Practices in their routine when assessing the customer service aspect of
the Company. Through the use of customer surveys and feedback from customers, the
company is able To work on the weak areas that can become beneficial.

[Link] COLLEGE OF ARTS & SCIENCE, BILIMORA Page 11


-

CHAPTER 2:-
PRODUCTION DEPARTMENT

[Link] COLLEGE OF ARTS & SCIENCE, BILIMORA Page 12


 RAW MATERIAL USED

Nike six main materials used in all their [Link] uses many materials to make all
their products but there are only six main Materials That make up the majority of all their
products mass. First the polyester, 19 Percent of the polyester Nike uses is recycled.
Nike helped recycle 82 million plastic Water Bottles To make polyester out of. The world
cup jerseys Nike made in 2010 were 100% recycled polyester each using eight plastic
bottles. The solid plastic bottles are

[Link] COLLEGE OF ARTS & SCIENCE, BILIMORA Page 13


Broken down into pieces and then melted to a liquid when they are then made into
Polyester strands. China and India are the main polyester producers worldwide. The
next main material Nike uses is rubber and they have used more and more
Environmentally Preferred Rubber Well over 70% of Nikes shoes now use
Environmentally Preferred Rubber Nike released their environmentally preferred rubber
in 2002, this altered rubber is made by incorporating more benign accelerators and
Vegetable oils, they also modify the processing. Thailand, Indonesia, Malaysia are the
dcTop Producers of Rubber around The World.

Eva foam is a very environmentally friendly material used in many shoes. The main
producers of Eva Foam are located in China. EVA stands for Ethylene Vinyl Acetate.
Eva Foam is one of the most efficient and cheap materials that Nike uses in their shoes.
The next material Nike widely uses is cotton.

Nike is proud to say that they are using more and more organic cotton every year and
Plan to keep this trend going. Organic cotton means that it is harvested without
chemical Pesticides, no Fertilizer, And Defoliants. Nike gets most of its cotton from
suppliers in China, India, Turkey, and the United state Of America. Nikes plan is to have
at least 10% of organic cotton in all of their appeal that contains cotton by 2015.
Synthetic Leather is also used often in Nike products. Synthetic leather is a man made
fabric is made to look and feel like real leather but function better than real leather. Nike
uses Synthetic leather in many of their products because it is cheaper than real leather,
tends To be More breathable, and easier to clean. China and Taiwan are the leading
supplier of synthetic leather worldwide.

Nike also uses real leather that is LWG certified. Nike is one of the world‘s largest
Users of white leather and teams up with tanners, suppliers, and other distributers to be
most efficient. Nike does not believe in harvesting leather from animals in the Amazon
because they believe that it is contributing to the deforestation but before 2011 they
were using leather taken from the Amazon. Nike gets their leather from tanners and
suppliers in China and Vietnam. Nike uses 1,500 different material vendors, suppliers,
and companies. All the companies that they buy from are independent businesses.

[Link] COLLEGE OF ARTS & SCIENCE, BILIMORA Page 14


 MACHINES USED

Nike uses Grab it Stack it material handing robot system to produce up to 600
pairs of shoes in an eight-hour shift. Stack it is used by Nike to assemble the layers of
material that comprise the shoe's upper (the top portion of the shoe that covers the foot)
20 times faster than a human.

 PRODUCTS AND SERVICES PRODUCED

Nike's range of products include shoes, jerseys, shorts, cleats, base layers, etc.
for Sports activities such as association football, basketball, track and field, combat
sports, Tennis, American football, athletics, golf, ice hockey, and cross training for
men, women, and children.

(Shoes, jerseys, shorts, cleats, base layers.)

 SERVICES

The company provides a wide range of athletic footwear, apparel, equipment, and
Accessories to athletic trainers, runners, and cyclists.

 PROCESS USED

To make the shoe the worker first cuts all the material in the shapes and forms they
need to be in, they then sew the pieces together on the upper section above the sole.

[Link] COLLEGE OF ARTS & SCIENCE, BILIMORA Page 15


The workers then prepare the sole also called stock fitting, followed by preparing the
attachment of upper to the sole also know as lasting.

 MATERIAL HANDLINDLING EQUIPMENT USED

Nike uses grab its Stack it material handing robot system to produce up to 600
pairs of shoes in an eight-hour shift. Stack it is used by Nike to assemble the layers of
material that comprise the shoe‘s upper (the top portion of the shoe that covers the foot)
20 times faster than a [Link] the electro adhesion technology developed, Grab its
next step in the development of Stack it involved finding the right robot on which to
mount its electro adhesive gripper.

 INVENTORY CONTROL METHODS

The company is using RFID and artificial intelligence to monitor inventory. Nike (NKE
4.74%) has been investing in technology to track its inventory. This includes putting
RFID chips in its shoe packaging so it can know how its shoes are selling Inventory
control methods are processes and programs you use to plan, order, store, and manage
inventory. In general, there are two methods of inventory control: manual and perpetual.
With manual inventory control, you must conduct physical counts of inventory regularly.
This is time-consuming and often involves shutting down all operations to get it done.

With perpetual inventory control all inventory is tracked in real-time using inventory
management software. Barcodes are scanned when products arrive, are used, or shipped.
This gives you access to the most accurate data at all times but is more costly than manual
counting.

The key to effective inventory control methods is finding a balance between controlling
costs and being able to meet customer demand. If your inventory control methods lower
cost, but lead to issues with dead stock or backordered products, it's not effective.

[Link] COLLEGE OF ARTS & SCIENCE, BILIMORA Page 16


 MASTER SCHEDULES

The Nike business strategy is clear, invest in building your brand through emotional
marketing and sports celebrity endorsements, develop products that have high-quality,
market-leading technology and buy out competing sports brands.

 BILL OF MATERIAL FILE

However, what we don‘t have is the material break down of each FOB cost. In the
industry, this is known as the BOM – short for bill of materials. This itemizes the cost of
each and every component used in the shoes, based on their consumption in a single
pair. Think of it as a list of ingredients in a cooking recipe, except that the list is marked
with how much each ingredient cost you to purchase.

For a typical running shoe, the BOM will add the consumed cost of synthetic leather
threads, logos/inks, trims, midsole, outsole etc.

cost of making the expensive sole molds is spread across/amortized a particular model
too. The BOM information is confidential, restricted to the product team involved in
creating a particular shoe model. For that reasons, we do not have individual BOM‘s
andcosting sheets. The same article brings an interesting summary of a shoe cost. Take
a look on the picture which shows the cost anatomy of Nike shoe.

[Link] COLLEGE OF ARTS & SCIENCE, BILIMORA Page 17


While BOM and cost are hugely important, I found the transparency of BOM and cost
information in an organization problematic. The information lives in different
departments, organizations, suppliers and systems. Each of these systems knows how
to manage BOM and related information. But the overall picture is often [Link]
vision of PLM system was to manage product information across a lifecycle. But most of
PLM implementation stuck in CAD management.

With an increased complexity and distribution of design, manufacturing, supply chain


and distribution, to manage information about product is a challenging [Link]
manufacturing ending up with no information about what does it cost to manufacture
product and how to decompose Bill of Materials and what are the most important
components in product BOM from every standpoint - production, components, etc.

When it comes to manufacturing "God is in the BOM" and it is really important for
companies. The information about BOM cost is scattered among different departments,
people and functions. To combine it in a single place with all references pointing on the
right information sources, people and operations can be an interesting exercise for
many manufacturing companies.

[Link] COLLEGE OF ARTS & SCIENCE, BILIMORA Page 18


 QUALITY CONTROL TECHNIQUES

Control The Nike Company currently uses flow charts to depict step by step
processes when mapping out ideas for events such as new product launch or holiday
transitions, run (trend charts) to show what items are selling more/better in a particular
area and cause and effect(fishbone diagrams) to show the outcome of the selected
reports or ideas. Continuous improvement is used in the company so that it can
continue to grow and prosper. Through the use of opinions in which customers lend
during customer service surveys as well as their store visits help to keep the company
aware of how to become thebest in the retail clothing market.

Supplier certification as well as inspection at the time the goods are finished is also used
for inspection to ensure quality service. Nike also implements the Six Sigma Practices in
their routine when assessing the customer service aspect of the company. Through the
use of customer surveys and feedback from customers, the company is able to work on
the weak areas that can become beneficial.

Nike‘s 3 elements of the service product bundle. Tangible (Explicit Service) Nike
provides the customers with a variety of sporting goods and apparel, which can be worn
causally or used athletically. The clothes are produced in a wide variety of factories and
sold by retailers all over the world. Psychological (Implicit Service) The look and feel of
Nikes products.

The style type and design that The name brand gives. The personal mindset Nike gives
to the customer knowing that they have a high quality product. Physical (Facilitating
Goods) The actual clothing or equipment worn or used after purchasing the items. The
shirts, shoes, hats, sporting goods, pants, and all other accessories Nike produces1.
Planning, Organizing• A strategic plan is something that a •A SWOT analysis could be
created company needs in order to succeed for Nike by a manager and at anything.

Nike needs to develop employees will read it and will see this plan and move forward
from an assessment of how the company this fiscal year in 2010. The manager is doing in
terms of strengths, of Nike needs to set goals and weaknesses, opportunities, and
determine the best way to achieve threats. These will keep them. Companies
employees on its toes Core values upon the crew at Nike Functional organization is
something and ask the question: What does this that Nike might want to take into
organization stand for? A revamp of consideration when thinking about all of this is need if
Nike is to make changein their organization. They sales revenue increase in 2010.

[Link] COLLEGE OF ARTS & SCIENCE, BILIMORA Page 19


 NAME AND ADDRESS OF PLANTS IF ELSEWHERE SITUATED

Nike has contracted with more than 700 shops around the world and has offices
located in 45 countries outside the United States. Most of the factories are located in
Asia, Including Indonesia, China, Taiwan, India, Thailand, Vietnam, Pakistan,
Philippines, and Malaysia.

[Link] COLLEGE OF ARTS & SCIENCE, BILIMORA Page 20


CHAPTER 3:-
MARKETING DEPARTMENT

[Link] COLLEGE OF ARTS & SCIENCE, BILIMORA Page 21


 LIST OF PRODUCT & SERVICES

PRODUCT:-

The company provides a wide range of athletic footwear, apparel, equipment, and
accessories to athletic trainers, runners, and cyclists. The majority of Nike‘s sales are
attributed to selling its footwear to wholesale distributors in North America.

Nike's range of products include shoes, jerseys, shorts, cleats, base layers, etc. for
sports activities such as association football, basketball, track and field, combat sports,
tennis, American football, athletics, golf, ice hockey, and cross training for men, women,
and children.

SERVICES:-

NIKE, Inc., together with its subsidiaries, designs, develops, markets, and sells athletic
footwear, apparel, equipment, and accessories worldwide. The company offers NIKE
brand products in six categories, including running, NIKE basketball, the Jordan
brand, football, training, and sportswear.

 NUMBER OF CUSTOMER/OVERSEAS CUSTOMERS

Nike's target market is 11–55-year-olds. By spanning the generations, Nike taps


middle-aged consumers who have disposable income and develops its relationship with
younger audiences to ensure future growth and build life-long brand enthusiasts. Over
the last 2 years alone, we grew membership at nearly 30% per year. We currently
have over 100 million members. And those are people, 100 million consumers who want
to be connected with our brand. And our Nike Plus membership program will more than
triple that over the next 5 years.

[Link] COLLEGE OF ARTS & SCIENCE, BILIMORA Page 22


 MARKETING MIX OF NIKE WITH 4PS

1. PRODUCT MIX

This element of the marketing mix enumerates the sporting goods company‘s
organizational outputs, also known as the product mix, which is the set of products
offered to target customers. Nike Inc.‘s marketing strategy involves growing the business
through market-based changes in its product mix.

For example, the sports and leisure footwear business‘s research and development
investments produce new products and enhanced versions of current products, resulting
in corresponding improvements in the 4P variables. As Nike‘s marketing mix evolves, the
business adds or changes its operational processes, such as the manufacturing of
shoes, apparel, and equipment for various sports. This evolution also comes with new
technologies to improve the product mix and other 4P variables, as indicated in Nike
Inc.‘s generic strategy and intensive growth strategies.

At present, the sporting goods company‘s marketing mix includes a wide variety of
product categories and brands. However, broadly speaking, the following categories
represent Nike‘s product mix:

1. Footwear
2. Apparel
3. Equipment and accessories

Shoes are the most popular products from Nike Inc., and the company‘s overall
marketing strategy gradually adds more product lines to strengthen the product mix. For
example, the company now offers running shoes, tennis shoes, and shoes for a variety
of other sports, including cricket.

Nike also sells apparel, such as jerseys, shorts, and related products. Furthermore, the
company‘s marketing mix includes product lines for accessories and equipment, such as
golf clubs. These products are available under a number of the company‘s brands,
including Air Jordan and Converse. Based on this element of the marketing mix, Nike
expands its product mix to address the needs of its target markets and market
segments, thereby making the 4Ps more suited to market characteristics.

[Link] COLLEGE OF ARTS & SCIENCE, BILIMORA Page 23


The most famous shoes of Nike are,

 The Nike Cortez – Retro-looking, the natural fit was originally designed for running.
 The Nike Air Max– It is the jewel in Nike‘s sneaker crown. The first visible air
visibleshoe.
 The Air Huarache – Mostly famous under the age of 18. Super lightweight,
high-techrunning shoe.
 The Nike Blazer – Casual cool-looking sneakers also used for skateboarding.
Designedto make a big swoosh.
 The Nike Air Force 1 – Most iconic basketball sneaker. It is popular as a
casual streetshoe as well as a sports shoe.

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2. PRICE MIX

Nike‘s Prices, This element of the marketing mix identifies the prices that maximize
profits while attracting the desired share of the multinational market for leisure and sporting
goods. Nike‘s technology investments relate to marketing strategies to offer its products at
a premium price. Still, the company‘s marketing mix considers current market conditions in
setting its price points and price ranges. Based on these considerations for this 4P variable,
Nike Inc. applies the following pricing strategies in its business:

1. Value-based pricing strategy


2. Premium pricing strategy

In the value-based pricing strategy, Nike Inc. considers consumer perception about the
value of its products. In the marketing mix context, perceived value determines the
maximum prices that consumers are willing to pay for the company‘s sports shoes, apparel,
and equipment. In contrast, the premium pricing strategy uses high prices, based on a
premium branding strategy that establishes Nike products as higher in quality and value
than competing products.

In this 4P variable, the footwear company‘s use of advertisements involving high-profile


celebrity endorsers is indicative of such emphasis on premium branding. In using the
premium pricing strategy as part of its marketing mix, Nike enjoys higher profit margins and
potentially higher sales revenues, as customers associate a premium status with the
company‘s products.

Also, a relevant point is that, based on the PESTEL/PESTLE analysis of Nike Inc.,
premium statuses and premium prices are linked to the socio cultural and economic trends
in the industry environment. The footwear and apparel business adjusts its price ranges
and price points according to such trends, to ensure that this 4P variable suits the market.
In this element of the marketing mix, Nike Inc. successfully uses its pricing strategies to
maximize its profits while emphasizing high value in promoting its products and brands.

3. PLACE MIX
This element of the marketing mix outlines the venues where the sporting goods
company‘s products are sold, accessed, or distributed. This 4P variable focuses on
optimizing Nike‘s market reach. The company sells its sports shoes, apparel, and
equipment through a large number of outlets worldwide, including large retailers and
specialty outlets. In this context of the marketing mix, the following places or venues form
Nike‘s distribution strategy, arranged according to significance in the company‘s marketing
strategy and performance:

1. Retail stores
2. Nike Online Store
3. Nike town retail outlets (company-owned)

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Retail stores are the most significant places where Nike products are sold because these
venues are strategically located and easily accessible in various markets around the world.
These retailers include small local and regional stores, as well as large firms, like Walmart.
This 4P element of Nike‘s marketing strategies also shows that customers can purchase
sports shoes, apparel, and equipment through the company‘s online store. In addition, the
business operates its Nike town retail outlets, where the company has control of retail sales
processes.

These outlets are company-owned and allow access to business and market intelligence
that supports corporate strategic management with regard to Nike‘s marketing strategies
and tactics for current and emerging products. Based on this element of the marketing mix,
the co mpany has considerable control on the distribution of its products, especially through
its online store and Niketown retail outlets, making this 4P variable an information
contributor to strategic formulation. However, this element of the marketing mix also shows
that Nike has limited control on the distribution and sale of its products at other retail
outlets.

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4. PROMOTION MIX

This marketing mix element, also known as marketing communications mix, involves
the tactics that Nike uses to communicate with its target markets. The company depends
on the effective promotion of its products to maintain a strong brand image, which is one of
the strengths determined in the SWOT analysis of Nike Inc. This part of the sporting goods
company‘s marketing mix uses promotional tactics to communicate with customers about
its products, and persuade them to purchase these products. The following are Nike‘s
promotional activities, arranged according to significance in the firm‘s marketing strategies:

1. Advertising
2. Personal selling
3. Direct marketing
4. Sales promotions
5. Public relations

Advertising is one of the biggest contributors to Nike‘s ability to attract customers. In this
4P variable, the company heavily relies on advertisements, especially those that involve
high-profile celebrity endorsers, such as professional athletes and sports teams. This
element of the company‘s marketing mix also includes personal selling through sales
personnel who persuade target consumers to buy the company‘s sporting goods.

For example, sales personnel at Nike town retail outlets are trained to use such persuasion
tactics. On the other hand, in the context of the 4Ps, the company‘s direct marketing
activities involve promoting its products through direct communications with colleges, local
sports teams, and other organizations. In addition, in terms of sales promotions, Nike
occasionally provides discounts and special offers to attract more customers and generate
more sales.

Moreover, the marketing mix includes public relations, in which the company sponsors and
provides financial support to organizations, such as community-based networks, to promote

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its athletic shoes, apparel, and equipment. Based on the tactics included in this element of
Nike‘s marketing mix, the business depends on its relations with high-profile endorsers to
succeed in promoting its business and products to the international sporting goods market.

The company does direct marketing by personal communication with organizations,


schools, colleges, and local sports teams. They also give time to time discounts and great
offers to their customer which comes under sales promotion tactics. They give financial
support to the NGOs to make public relations strong and able to promote theirproducts
through it. Nike‘s target audience is fitness-centric, elite class, and sports enthusiastic
people especially youngsters.

As many youngsters are on social media, Nike also promotes its products through
social media by connecting with millions of people and interacting with them
through Instagram, Twitter, Facebook, and Youtube.

Nike Just Do It Campaign launched in 1988 which motivates all the people to do their
job efficiently. To date, this slogan is a trademark of Nike. The company‘s Latest hash
tag #You Can‘t Stop Us for their new campaign tells us that every sports field is equal
which has gone viral on social media. Nike does such inspiring campaigns of different
themes from time to time and gains the emotional trust of their customer.

 MAJOR COMPETITORS

1. Adidas
2. Reebok
3. Puma
4. Fila
5. Converse
6. New balance
7. Under armour
8. K-swiss
9. Asics
10. Li Ning
11. Vans
12. Skechers
13. Brooks

Page 28
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 SPECIFIC DISTRIBUTION CHANNEL

NIKE distributes its products through three major channelsBy selling products
towholesalers in the US and international markets

By direct-to-consumer (or DTC) sales, which include in line and factory retail outlets
(see graph below) and e-commerce sales through [Link]

By selling to retailers and then to consumers

Producer - Retailer - consumer

Direct to Customer

Selective Distribution

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 PLC CONCEPT AND ASSOCIATION OF THEIR
PRODUCT WITH RESPECT TO PLC STAGE

PRODUCT LIFE CYCLE OF NIKE PRODUCT:


Removable Massaging Insole for Athletic Shoes The process of identifying a product‘s
life cycle primarily includes four chief junctures which determine its progression, the first
of which is the introduction stage. During the introduction stage of the removable
massaging insole, Nike Inc. must recognize the readiness of the market as a whole, the
selected target market, and buyers. Subsequently, the company must execute timing
and strategy as it decides to penetrate an indeed whole new form of technology for its
accessory sports-foot wear line.

When a product is at this particular phase, many complexities in terms of business


process from sales, marketing, to advertising and beyond can all be met by the newborn
Nike insole. Aside from the fact that Nike Inc. has to put together effective wide-ranging
efforts in advertising, public relations, and marketing (which most likely involves
considerable financial implementation) to build brand awareness and recognition among
its consumers, both target and potential, profits are expected to start downbeat or
worse.

Kotler explains, ―Profits are negative or low in the introduction stage‖ (Kotler et al., 2006,
p. 335).

At these rather demanding times, Nike Inc. has, in many ways, little to worry about, for
it is simply and truly extensively equipped—in experience, resources, ability, and
capability. With all these, Nike Inc. must strongly establish product attributes, benefits,
and features of the insole. Within just a few months‘ time, Nike Inc. can usher in a new
era in sports insole technology.

With strategic campaigns in advertising and marketing, Nike insole awareness can be
built and solidified in the minds of the targeted athletes and sports wear enthusiasts,
and even more to those who are already loyal brand users. With the spread of word-of-
mouth advertising, especially with availability of the internet, Nike Inc. must only ensure
that the product will speak for itself as it has made superb quality part of its tradition.
However, in every way, Nike Inc. must not be overconfident in its projection, for ever-
lurking competitors shall be waiting on the wing and are keyed in to its every move.

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 MARKET SEGMENTATION

In its most straightforward meaning, market segmentation refers to the process of


dividing a company's target market into achievable and approachable groups. Nike
creates sub-segments based on needs, demographics, priorities, shared interests, and
behavioral and psychographic criteria.

The process of identifying the segments will vary from company to company. For Nike,
its market segmentation involves four categories - geographic, demographic,
psychographic, and behavioral.

For Nike's demographic segmentation, the firm included various age groups, gender,
and the customer's financial status. Nike has classified its products according to gender
and group, typically between 15 and 55 years old. The company also categorizes its
products from men, women, and kids. Nike offers promos, discounts, or cuts prices to
reduce costs in special cases. The company's special offers sometimes fall on special
occasions to entice customers to buy their products. It's Nike's way to have customers
buy products that they cannot afford before the discount.

The presence of physical stores in different parts of the world is one of Nike's strategies
under its geographic segmentation. This segment acknowledges that each country has
varied lifestyle habits and cultures. The company introduced different products for
various countries that meet the customers' needs. Nike conducts multiple promotional
campaigns in the US, Europe, Australia, Asia, Africa since sports vary in regions and
cities. You might notice that most commercials in the US focus on baseball and football,
while in Europe, ads refer to soccer.

Nike also customizes its campaigns in New Delhi, India, by promoting cricket equipment
and rugby for England and Sydney. Nike's most significant markets include North
America, China, and Western Europe, where the firm performs segmentations more and
focuses on urban areas.

Nike's psychographic segmentation tackles offering their customers a selection of


products that can cater to their needs and suit their interests. This stage in the Nike
market segmentation allows Nike to explore the preferences of every customer.

Finally, the behavioral segmentation of Nike is about providing benefits to customers


through clothing, comfortable footwear, and essential sports equipment. Nike also
creates a series of versions for a product to satisfy the preferences of each customer.

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Nike gives its customers the mindset of feeling athletes if they use Nike products. It also
builds customer engagement by offering distinct quality and innovative products to
choose from. More importantly, Nike allows its target market to share their experiences
with family and friends, including product reviews on the internet and other social media
channels. This, in turn, will have a significant effect on customers' purchasing behavior.

 POSITIONING STRATEGIES

Positioning is all about placing the company's brand in the market with other
competitors. Nike has strategically positioned its brand as a market leader for sports
equipment that provides innovative and premium quality technology. Nike's swoosh
logo, "Just Do It" slogan, and its promotional initiatives to connect to magnificent
achievements of great athletes convinced its customers that it's a victorious and
ambitious brand. Nike' speaks' into athletes' hearts through meaningful and unique
feelings, making the firm exceptional from its competition. The company has also
solidified its place in fashion, where a part of its products defines specific markets'
lifestyles.

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Nike has effectively imprinted a strong belief in its customers' minds that its products are
the best options every time they need to buy sports products.

 PROMOTION TOOLS USED

Nike's main source of promotion is advertisement and sponsorships. The


company does advertisements involving high-profile celebrities and athletes of different
[Link], Nike makes use of sales promotion strategies like discount
codes to notice potential customers to buy their products.

 PRICING METHOD FOLLOWED

There are different pricing strategies that Nike used effectively for expanding its
branding all over the world. Nike implements its pricing strategy based on the product‘s
understanding and determining which price point will be best for their products. Nike was
able to raise its price range while other U.S. apparel industries dropped their pricesand
offered heavy promotional discounts. In 2014, Nike implemented its new pricing strategy
after determining from a market analysis that its customers appreciated the value that the
brand provided.

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 PRICING STRATEGIES OF NIKE

 Value-Based pricing Strategy

of Nike

 Nike Price Leadership

Strategy

 Premium Pricing Strategy of

Nike

 Nike Skimming Pricing

Strategy

 CUSTOMER RELATIONSHIP MANAGEMENT PRACTICES

customer (Stokes, 2012). In 2010, Nike created a division called Nike Digital Sport
(DS).DS provides skilled resources, budget, and coordination across the enterprise
(Cendrowski, 2012). Nike‘s goal was to create a combined consumer experience that
shapes responds to the evolving preferences of consumers (Cendrowski, 2012). Nike
DS leads most customer-facing digital projects, releasing products under the Nike Plus
brand. Personnel,designers and a team of marketers work together to develop new
digital innovations. Together, they work to find new ways to mine large amounts of
highly accurate customer data, which is a key strategic asset for marketing and product
development in the highly competitive digital space. Nike plans, in the future, to become
ever-closer to each of its customers around the world.

I think in the future, Nike should considering incorporating a link similar to [Link]
to the Nike web site. Customers can click on the link and contact Nike in real time via
text-chat software hosted by a second party such as a live person. Customers can click
on a text-chat button and the site launches a new window and have questions answered
by a live representative. Customers can continue to browse Nike while a support
representative answers their question(s). If after asking the question a customer is still
having difficulty finding the information, the representative from Nike online can simply

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send the page to the customer with the information that he or she was seeking for. This
might impose a high cost to Nike starting out, but the increase in sales will quickly cover
the expenses and further enhance the company‘s customer support and satisfaction.

Customer(Stokes, 2012). In 2010, Nike created a division called Nike Digital Sport (DS).
DS provides skilled resources, budget, and coordination across the enterprise
(Cendrowski, 2012). Nike‘s goal was to create a combined consumer experience that
shapes responds to the evolving preferences of consumers (Cendrowski, 2012). Nike
DS leads most customer-facing digital projects, releasing products under the Nike Plus
brand. Personnel, designers and a team of marketers work together to develop new
digital innovations. Together, they work to find new ways to mine large amounts of
highly accurate customer data, which is a key strategic asset for marketing and product
development in the highly competitive digital space. Nike plans, in the future, to become
ever-closer to each of its customers around the world.

I think in the future, Nike should considering incorporating a link similar to [Link]
to the Nike web site. Customers can click on the link and contact Nike in real time via
text-chat software hosted by a second party such as a live person. Customers can click on
a text-chat button and the site launches a new window and have questions answered by a
live representative. Customers can continue to browse Nike while a supportrepresentative
answers their question(s). If after asking the question a customer is still having difficulty
finding the information, the representative from Nike online can simply send the page to the
customer with the information that he or she was seeking for.

This might impose a high cost to Nike starting out, but the increase in sales will quickly
cover the expenses and further enhance the company‘s customer support and
satisfaction.

Nike manufactures shoes also athletic clothing such as shorts, shirts, jackets and under
armors; wristbands, bag packs, jerseys and socks are also sold by Nike (Rao, 2012).
The Nike slogan, Just Do It, have placed it‘s brand in the mind of consumers, through
the recognition of it‘s products and promotional tools used worldwide (Rao, 2012).
Customer Relationship Management (CRM) is focusing on meaningful, long term
relationships and not immediate profit with the customers (2010, p.202).

According to the research, in 2012, Nike launched a new business division called Nike
Digital sport (NDS). The objective of NDS was designing to develop technologies that
allow the users to track their personal performance while Nike collected and stored data
relating to customer needs. Because of NDS, Nike has been able to communicate more
effectively with customers about their needs. Nike also has it‘s own social networking
service called Nike+ (Rao, 2012). This social networking service focuses on building
social networks and relationships among people and communities. Nike has built
relationships between the company and customer by understanding the customer‘s

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needs and preferences.

CRM programs implemented by Nike are mainly operational and strategic. For example,
Nike Fuel enables customers to record their progress through the use of Nike Plus
devices. These devices are designed to update customers on the latest Nike sports
trends and insights, and allow them to communicate with Nike. Another CRM program
implement by Nike is Nike + Connect apps. It is a free app developed by Nike that
uploads customer‘s Nike+ data from plus devices to their accounts.

Nike also created a Nike+ running app that enables customers to share their
experience on social media sites such as Twitter and Facebook. According to the
research, Nike reaches over millions of fans.

 SWOT ANALYSIS OF NIKE

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CHAPTER 4:-
HUMAN RESOURCE
MANAGEMENT/
PERSONNEL
DEPARTMENT

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 RECRUITMENT PROCEDURE

Existing Nike employees can view job openings on the internal web and apply direct to
the SSC resourcing center electronically. Active recruiter then handles the application
Process from receipt to job offer. The key stages in the Process are detailed
below:

A job request is received from the employing department and this is discussed with the
central resource in team. A job requisition is completed and approval sought if it
involves a new position of additional headcount. Once finalized the job is posted on the
system and applications are invited from internal and external candidates as appropriate
At the same time the recruiter will search the ―future interest‖ database for already
registered potential candidates with the job profile details and interviews are scheduled
The system then matches candid held in the active recruiter files.

A shortlist is produced from the system, sent to the line manager The introduction of
Active Recruiter into the business provides a number of avenues for people to apply for
jobs at Nike External applicants can apply direct to the Nike internet site for specific jobs
or for more general speculative job opportunities. Electronic links have been established
with external web based recruitment organisations such as Monster board to provide
further job postings opportunities to attract candidates to Nike More conventional
resourcing processes are also used including newspaper advertising and Search
organizations for more senior positions.

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 SELECTION PROCESS

Selection is the process of identifying and selecting the right candidate for that job.

The Selection Process Should Be:

 Transparent
 Timely and cost effective
 Equitable
 Free from conflict of interest

All recruitment will be based on agreed job descriptions and person specifications.
Recruitment and selection must be conducted as an evidence-based process and
candidates should be assessed against agreed selection criteria, based on relevant
knowledge, skills, competencies, experience and qualifications to perform the role as
outlined in the person specification. All decisions must be recorded. Short listing must
be undertaken by at least two individuals who are involved in the interviewing process.
Interviews should normally be conducted by at least two people, and all interviews for
one post must be conducted by the same people. In order to promote equality of
opportunity selection committees should, wherever possible, be of mixed race and
gender composition. Any skills tests (e.g. presentations) must be directly related to the
role and measured against objective criteria, and presentations for one post must be
assessed by the same persons. Candidates must be notified of the details of any skills
test when they are invited for interview. Interview questions must relate to the job
requirements as exemplified in the person specification and the candidate‘s suitability
for the position.

The person specification should be used as the basis for determining the interview
questions. The choice of appoint will be determined by the majority view of the
interviewers.

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 NO. OF EMPLOYEES

NIKE ANNUAL NUMBER OF EMPLOYEES

2022 79,100
2021 73,300
2020 75,400
2019 76,700
2018 73,100
2017 74,400
2016 70,700
2015 62,600
2014 56,500
2013 48,000
2012 44,000
2011 38,000
2010 34,400
2009 34,300

 ATTENDANCE MAINTENANCE

Nike matches employee donations and offers volunteer pay, which means Nike gives
the employee $10 per hour for hours volunteered that they can donate to the
organization they choose. And it gives retail store employees time on the clock to serve
as weekly volunteer coaches in their communities

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 TRAINING GIVEN

Nike has approximately 1 million employees spread out across 715 factories in over 44
countries. Of those 715 factories, Nike only owns 73 manufacturing centres located in
the United States whereas the other 642 are contract factories that Nike source product
from. Each of these factories are to follow Nike‘s Code of Conduct which states the
rules and regulations they must follow in order to be in association with Nike. Each of
the factories must have a set of policies and procedures in affect which are not only
posted in the factories, but also brought to employees attentions through initial training
as well as yearly review. Nike‘s training covers four sections, lean manufacturing,
Human Resource Management (HRM), health & safety, and environmental compliance.
All training documentation must be signed off by a supervisor, dated, documented and
kept for 3 years to ensure training accuracy among all employees and legal reasons.

Through lean manufacturing Nike is trying to build the employees skills naturally by
empowering them with a voice to help create innovative solutions to increase
productivity in the factories. In 2012 up-to-date training was provided to the contract
factories and focused on ways ―to engage employees in problem solving and
continuous improvement‖ (Inc., Make Today Better - Labor, 2014) throughout the
productivity line.

 FRINGE BENEFITS PROVIDED

Health & Insurance Benefits

Health Insurance
Life Insurance
Dental Insurance
Vision Insurance
Temporary Disability Insurance
Prepaid Legal
Long-term Disability Insurance
Severance Pay
Scholarship

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Nike, Inc. provides perks. Like Nike, Inc., many American employers fund group health
Insurance for their employees, through which employers typically pay a significant
Percentage of Their workers' health insurance premiums. These contributions are tax
deductible for employers and tax-free for workers. Nike, Inc. offers health, dental, and
Vision plans. Nike, Inc. also offers group life insurance, short-term disability insurance
For accidents or illness, and long-term disability insurance.

Most Popular Benefits at Nike EMPLOYEES REPORTING

Paid Sick Leave 7

Paid Holidays / Vacation 6

Casual Dress/Atmosphere 4

Life Insurance/Disability 4

Flex-Time / Flexible Schedule 3

Cell Phone 2

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 EMPLOYESS SAFETY MECHANISM

Nike‗s health and safety guidelines, including those applying to employees


residential facilities. Problem of Diversity of Employees To increase awareness and
continue to educate Nike employees about the Native American culture For
DisabledEmployees To enrich Nike and our community by promoting the inclusion of
people impacted By disabilities and fostering an environment that realizes everyone's
fullpotential.

For Black Employees and Friends Nike's Black Employee & Friends Network (BEN)
offers a strong support system for black employees to facilitate a successful transition
into Nike's corporate culture.

 SPECIFIC HR POLICIES

Minimize the costs associated with high employee turn over Improve retention of skills,
knowledge, motivation and morale, which in time impact Productivity Give employees
job security and money in their pockets.

 PERFORMANCE APPRAISAL

Many managers value 360-degree feedback because it gathers accurate data.

360 Degree Feedback

This instrument enables organizational leaders to gather information from employees,


supervisors, managers, and clients regarding company performance. Karkoulian,
Assaker, and Hallak (2016) contend that 360-degree feedback constitutes structured
and semi-structured questions that the participants are supposed to answer. The
individuals who take part in this form of performance appraisal are not required to reveal
their names, thereby being free to share opinions without fear. Many managers value
360-degree feedback because it gathers accurate data. Nike uses this mode of

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performance evaluation to collect information from workers and supervisors. This
company‘s chief executive officer (Parker) encourages employees to share ideas
regarding organizational performance (Blazek, 2016). He believes that all workers are
capable of coming up with plans that could be helpful to Nike.

Consequently, this company has devised mechanisms for gathering data from workers
anonymously. The 360-degree feedback has been helpful in streamlining operations in
this corporation and promoting cooperation between employees and their supervisors.

 STRATEGIC HRM

Nike, Inc. (NYSE: NKE) is a major publicly traded sportswear and equipment supplier
based in the United States. The company is headquartered near Beaverton, Oregon,
which is part of the Portland metropolitan area. It is the world's leading supplier of
athletic shoes and apparel and a major manufacturer of sports equipment with
revenue in excess of US$18.6 billion in its fiscal year 2008 (ending May 31, 2008).

As of 2008, it employed more than 30,000 people worldwide. Nike and Precision
Castparts are the only Fortune 500 companies headquartered in the state of Oregon,
according to The Oregonian.

 EMPLOYEES FEEDBACK MACHANISM

Out of 731 Nike employee reviews, 79% were positive. The remaining 21% were
Constructive reviews with the goal of helping Nike improve their work culture. The
Marketing team, with 92% positive reviews, reports the best experience at Nike
Compared to all other departments at the company. The Business Development team
Offered the most constructive feedback, with 80% of that department's reviews
constructive in nature.

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CHAPTER 5:-
FINANCE DEPARTMENT

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 INCOME STATEMENTS

Fiscal year is 2023 2022 2021 2020 2019


June-may all
values USD
millions
Sales/revenue 51,191 46792 44493 37420 39122
Sales growth 9.40% 5.17% 18.90% -4.35% 7.59%
Cost of Goods 29506 25208 24588 21526 21696
Sold(COGS) incl.
D&A
Cogs excluding 28803 24491 23844 20805 20991
D&A
Depreciation & 703 717 744 721 705
amortization
expense
Depreciation 703 717 744 721 705
Cogs growth 17.05% 2.52% 14.42% -0.78% 6.61%
Gross income 21685 21584 19905 15894 17426
Gross income 0.47% 8.44% 25.24% -8.79% 8.83%
growth
Gross profit margin 42.36% - 44.74% - -
SG&A expense 16372 14805 12773 13124 12702
Other SG&A 16372 14805 12773 13124 12702
SGA growth 10.58% 15.91% -2.67% 3.32% 10.34%
EBIT 5313 6779 7132 2770 4724
Unusual expense (28) (38) 461 (75) (173)
Non-operating 846 32 245 124 (54)
income/expense
Non-operating 297 94 34 62 82
interest income
Interest expense 283 292 289 144 124
Interest expense -3.08% 1.04% 100.69% 16.13% 5.98%
growth
Gross interest 283 292 289 144 124
expense
Pretax income 6201 6651 6661 2887 4801
Pretax income -6.77% -0.15% 130.72% -39.87% 11.01%
growth
Pretax margin 12.11% - 14.97% - -

[Link] COLLEGE OF ARTS & SCIENCE, BILIMORA Page 46


Income tax 1131 605 934 348 772
Income tax-current 614 329 462 (28) 130
domestic
Income tax 634 926 857 756 608
currentforeign

Income tax- (187) (538) (405) (278) (42)


deferreddomestic
Income tax- 70 (112) 20 (102) 76
deferredforeign
Consolidated net 5070 6046 5727 2539 4029
income
net income 5070 6046 5727 2539 4029
net income growth -16.14% 5.57% 125.56 -36.98% 108.43%
net margin 9.90% - 12.87% - -
net income after 5070 6046 5727 2539 4029
extra ordinaries
Net income 5070 6046 5727 2539 4029
availableto
common
EPS (basic) 323 3.75 3.56 1.60 2.49
EPS (basic)growth -13.95% 5.48% 123.08 -35.92% 112.78%
%
Basic shares 1552 1579 1573 1559 1580
outstanding
EPS (diluted) 3.23 3.75 3.56% 1.60 2.49
EPS (diluted)growth -13.95% 5.48% 123.07 -35.92% 113.67%
%
Diluted 1570 1611 1609 1592 1618
shares
outstanding
EBITDA 6016 7496 7876 3491 5429
EBITDA growth -19.74% -4.82% 125.61 -35.70% 3.47%
%
EBITDA margin 11.75% - 17.70% - -
EBIT 5313 6779 7312 2770 4724

[Link] COLLEGE OF ARTS & SCIENCE, BILIMORA Page 47


 BALANCE SHEET
Name May 31, May 31, May 31, May 31, May 31,
2023 2022 2021 2020 2019
Total Current Assets 25,202 28,213 26,291 20,556 16,525
Cash and Short Term 10,675 12,997 13,476 8,787 4,663
Investments
Cash
Cash & Equivalents 7,441 8,574 9,889 8,348 4,466
Short Term Investments 3,234 4,423 3,587 439 197
Total Receivables, Net 4,131 4,667 4,463 2,749 4,272
Accounts Receivables - Trade, 4,131 4,667 4,463 2,749 4,272
Net
Total Inventory 8,454 8,420 6,854 7,367 5,622
Prepaid Expenses 1,223 1,261 1,498 1,653 1,352
Other Current Assets, Total 719 868 616 240 217

Total Assets 37,531 40,321 37,740 31,342 23,717

Property/Plant/Equipment, Total 8,004 7,717 8,017 7,963 4,744


– Net
Property/Plant/Equipment, Total 13,638 13,023 13,174 12,758 9,469
- Gross

Accumulated Depreciation, Total -5634 -5,306 -5,157 -4,795 -4,725

Goodwill, Net 281 284 242 223 154


Intangibles, Net 274 286 269 274 283
Long Term Investments

Note Receivable - Long term - - - - -

Other Long Term Assets, Total 1,322 1,526 2,921 2,326 2,011

Other Assets, Total 10,724 11,339 - - -


Total Current Liabilities 9,256 10,730 9,674 8,284 7,866

[Link] COLLEGE OF ARTS & SCIENCE, BILIMORA Page 48


Accounts Payable 2,862 3,358 2,836 2,248 2,612
Payable/Accrued - - - - -
Accrued Expenses 2,289 1,793 6,172 4,504 4,271
Notes Payable/Short Term Debt 6 10 2 248 9

Current Port. of LT 425 920 0 3 6


Debt/Capital Leases - - - - -
Other Current liabilities, Total 3,674 4,649 664 1,281 968

Total Liabilities 23,527 25,040 24,973 23,287 14,677


Total Equity 14,004 15,281 12,767 8,055 9,040
Redeemable Preferred 0 0 0 0 0

Preferred Stock - Non - - - - -


Redeemable, Net
Common Stock, Total 3 3 3 3 3
Additional Paid-In Capital 12,412 11,484 9,965 8,299 7,163
Retained Earnings 1,358 3,476 3,179 -191 1,643
(Accumulated Deficit)
Treasury Stock – Common - - - - -
ESOP Debt Guarantee - - - - -
Unrealized Gain (Loss) - - - - -
Other Equity, Total 231 318 -380 -56 231
Total Liabilities & Shareholders' 37,531 40,321 37,740 31,342 23,717
Equity
Total Common Shares 1535 1,578 1,578 1,558 1,568
Outstanding
Total Preferred Shares - - - - -
Outstanding

[Link] COLLEGE OF ARTS & SCIENCE, BILIMORA Page 49


 RATIO & THEIR INTERPRETATION

TITLE COMPANY INDUSTRY


Valuation Ratios - -
Profitability - -
Free Operating 6.26 -
CashFlow/Revenue
Gross Margin 44.31% 57
Operating margin 12.28% 16.75
Pretax margin 12.28% 16.14
Net Profit margin 10.69% 12.23
Per Share Data - -
Management - 26.43
Effectiveness
Return on Equity 39.56% 11.2
Return on Assets 15.72% 14.93
Return on Investment 21.53% -
Growth - -
Tangible Book Value 0.68% -
EBITDA 5Y CAGR 9.1% -
EBITDA 5Y Interim CAGR 8.37% -
Free Operating Cash Flow -
28.5%
5Y CAGR
Total Debt 5Y CAGR 35.81% -
Net Profit Margin Growth -
2.06
Rate
Book Value / Share Growth 2.11 -
Revenue / Share Growth 8.29% -
5 Year EPS Growth 10.52% 20.45
5 Year Sales Growth 6.59% 9.4
5 Year Capital -9.47% -2.33
Spending Growth
Financial Strength - -
Efficiency - -
Dividend - -
Dividend Yield 5 Year Avg. 0.97% 1.09%

[Link] COLLEGE OF ARTS & SCIENCE, BILIMORA Page 50


 ACCOUNTING PROCEDURE

The Company uses derivative financial instruments to reduce its exposure to changes in
foreign currency exchange rates and interest rates. All derivatives are recorded at fair
value on the Consolidated Balance Sheets and changes in the fair value of derivative
financial instruments are either recognized in Accumulated other comprehensive
income (a component of Total shareholders‘ equity), Long-term debt or Net
income depending on the nature of the underlying exposure, whether the derivative is
formally designated as a hedge and, if designated, the extent to which the hedge is
effective. The Company classifies the cash flows at settlement from derivatives in the
same category as the cash flows from the related hedged items. For undesignated
hedges and designated cash flow hedges, this is primarily within the Cash provided by
operations component of the Consolidated Statements of Cash Flows. For designated
net investment hedges, this is within the Cash used by investing activities component of
the Consolidated Statements of Cash Flows. For the Company‘s fair value hedges,
which are interest rate swaps used to mitigate the change in fair value of its fixed-rate
debt attributable to changes in interest rates, the related cash flows from periodic
interest payments are reflected within the Cash provided by operations component of
the Consolidated Statements of Cash Flows. Refer to Note 16 — Risk Management and
Derivatives for more information on the Company‘s risk management program and
derivatives.

[Link] COLLEGE OF ARTS & SCIENCE, BILIMORA Page 51


CHAPTER 6:-
PURCHASE DEPARTMENT

[Link] COLLEGE OF ARTS & SCIENCE, BILIMORA Page 52


 PURCHASING LEAD TIME

 Nike is looking to reduce lead times for its orders from 60 days to a mere ten
days by redesigning its logistics network, nearshoring more facilities, improving
contract manufacturer relationships and investing in automation, Quartz reports.
 By the end of 2018, Nike plans to have installed a minimum of 1,200 new
automated machines at its Asian suppliers‘ factories, in order to speed cutting,
cementing, shoe assembly, and sole creation
 In the past, Nike‘s product cycle began with a ―futures order‖ months in advance.
This would then prompt more than 1 million workers at 566 factories to produce
an estimated 1.3 billion units and ship them through 75 distribution centers to
more than 30,000 retailers in 190 countries.
 But now, the company seeks a business model where ―consumer demand is our
signal to anticipate and demand,‖
 By 2023, together with Flex, we plan to produce tens of millions of pairs
nearshore with more than 25% of those volumes delivered through NIKE Direct
on a short lead time responsive model

 RAW MATERIALS ORDERED

Generally, raw materials are purchased directly by the independent contractors and
suppliers which manufacture our branded footwear, apparel and equipment. Tanneries
currently supplying leather for Nike products are located in China, Vietnam, Indonesia,
South Korea, Taiwan, Thailand, Australia, and Brazil

[Link] COLLEGE OF ARTS & SCIENCE, BILIMORA Page 53


 LIST OF SUPPLIERS

KEY TAKEAWAYS

1-POE CHEN CORPORATION


2-PY PAN BROTHERS
3-FULGENT SUN GROUP
4-DELTA GALIL INDUSTRIES
5-EAGLE NICE [Link]

 Nike is the largest seller of athletic apparel and footwear, generating nearly
$37.5 billion in sales.
 Most of its products are sourced from China, Vietnam, Indonesia, and Thailand.
 Major suppliers include Pou Chen, PT Pan Brothers, Fulgent Sun International,
Delta Galil, and Eagle Nice.

 COMPANY ANY OTHER SPECIFIC DETAILS

Business requires EXTERNAL and INTERNAL analysis in the form of swot and
PESTLE Ensure feasibility and set objectives and goals.

Nike’s Strengths – Internal Strategic Factors

1. Strong Brand Awareness and Brand Value– Nike is one of the most recognizable
brands in the world as its name alone is memorable, easy to pronounce, and very
unique. Its swoosh symbol is easily recognized by everyone. According to Inter brand,

[Link] COLLEGE OF ARTS & SCIENCE, BILIMORA Page 54


Nike has a brand value of $42.5 Billion.

2. Huge Customer base – Nike has millions of customer from around the world who
loyally follow Nike‘s trends, participate in Nike events, and even provide customer
feedback. Due to its huge popularity, Nike‘s market cap has grown to $232 billion as of
Jan 2022.

3. Aimed For Sustainability – Nike‘s CEO Mark Parker has addressed that they will
continue to acknowledge the environmental issues in the communities. The CEO
ensures that Nike will help to contribute in finding a solution against these
environmental issues.

4. Iconic Relationships – Nike‘s long-term partnership with Michael Jordan has proved to
be beneficial in terms of sales for the company. Their collaboration resulted in ―Air
Jordan 1 Shoes‖. Additionally, Nike teamed up with the famous basketball player to
help design the ―Air Jordan 1 Shoes‖.

5. Side Brands – Nike‘s ability to maintain and enhance its side brands such
as converse and Hurley have enabled it to enjoy unparalleled success for decades.

6. Low Manufacturing Cost – Most of Nike‘s footwear is manufactured in foreign


countries. In the fiscal year 2021, Vietnam produced 51%, China produced 24%,
and Indonesia produced 21% of total Nike‘s footwear. Other operations are in
Argentina, Brazil, India, Italy, and Mexico.

7. In-house Professionals – Nike has a team of professionals that design its shoes and
other athletic accessories. Nike believes that their business has flourished due to the
thorough research that is conducted for each product.

8. Superior Marketing Capabilities – Nike has excellent marketing campaigns. The


brand heavily relies on demand creation expense, which includes advertisement,

[Link] COLLEGE OF ARTS & SCIENCE, BILIMORA Page 55


promotion, endorsement contracts, media print and complimentary products. In the
fiscal year 2019, 2020 and 2021, Nike spent $3.7 billion, $3.6 billion and $3.1 billion

respectively. The brand has successfully utilized social media and marketing
campaigns to target more customers.

9. Black Community Support – The brand has excellent marketing campaigns


and recently released “Don’t Do It” ad campaign in support of Black communities
against racism.

10. High Market Share – Nike is a market leader in footwear industry. Nike has captured
approximately 39% of the global athletic footwear market and 13% of global athletic
apparel market.

Nike’s Weaknesses – Internal Strategic Factors

1. Poor Labor Conditions in Foreign Countries – In the last 20 years, Nike has been
consistently targeted regarding their poor labor conditions. These issues include forced
labor, child labor, low wages, and horrific working conditions that were deemed
―unsafe‖.

2. Retailers Have a Stronger Hold – Nike‘s retail sector makes Nike weak due to its
sensitivity against pricing. 65% of Nike products are sold directly to wholesalers or
retailers. With retailers serving as their core customers, Nike does not put up a fight
against their pricing structures whatsoever.

3. Pending Debts – Although Nike‘s income statements prove to be prosperous, a quick


glance at their balance sheet could paint a different picture. Nike is still facing financial
threats. As of FY21,
Nike‘s total long term debt was $9.4 billion.

[Link] COLLEGE OF ARTS & SCIENCE, BILIMORA Page 56


4. Dependency on US Market – Even after having established itself globally, Nike still
relies on the U.S Market in terms of sales and revenue. In the fiscal year 2021,

about 39% of Nike’s sales came from the North America, while the rest of 61% came
globally. Despite its fame, Nike depends on the U.S for substantial sales and growth.

5. Lawsuits:

o Recently, a former employee accused Nike of discrimination based on his Croatian


origin.

o Four former female Nike employees filed a class-action lawsuit against the company in
August 2018. According to these women, Nike has a toxic company culture for women.
The women filed their case against the sportswear company claiming that the company
violated the Equal Pay Act. The women said the company engaged in systematic
gender pay bias where men were paid more than women for the same amount of work.

6. Lack of Diversification: Nike‘s over-dependence on sporting apparel or lack of


diversification is a major weakness. The pandemic has discouraged physical interaction
and gathering with sporting events canceled or postponed. Several sporting teams are

on the brink of collapse. If the crisis discourages sporting events for longer, Nike‘s
losses can be catastrophic.

7. Contradicting Strategies: Nike pledged to shift all its facilities to 100% renewable
energy with net-zero carbon emissions under the ―Move to Zero‖ scheme.

While the Strategy is great and welcomed, it contradicts Nike‘s strategy that favors innovation
over sustainability. This creates the perception that Nike is not committed to addressing climate
change and its pledge is just a marketing stunt.

[Link] COLLEGE OF ARTS & SCIENCE, BILIMORA Page 57


Nike’s Opportunities – External Strategic Factors

1. Emerging Markets – Although Nike already has a presence in many foreign countries,
there is still plenty of opportunities for Nike. This is because emerging
markets like India, China, and Brazil are gradually flourishing.

[Link] COLLEGE OF ARTS & SCIENCE, BILIMORA Page 58


2. Innovative Products – Although Nike has produced many products, there is still a lot to
innovate. Nike has extended its reach in technology in association with fitness and
health. Products like wearable technology that monitors physical activities, is the first
step in building innovative technology products. Combining technology with athletic
wear can prove to be beneficial as it is an aspect of the fashion industry that still hasn’t
been explored much.

3. Efficient Integration – The supply and production of Nike‘s products depend on


independent manufacturers. The brand can either acquire a few of these or make some
of its own for a more efficient and streamlined supply chain.

4. Cutting ties with big retailers: Nike has decided to cut ties with some of the biggest
multi-brand retailers and wholesale partners. According to the report, Nike will no longer
work with wholesale retailers such as Zapoo’s, Dillard’s, Fred Meyer, Bob’s Stores,
etc. The step is taken for better product positioning and greater customer experience.

5. Acquired Artificial Intelligence Start-up – With its vast financial resources, Nike can
acquire small or medium companies or startups. It recently acquired predictive analytics
platform – Celect to expand its online sales capabilities and predict
customer‘s shopping behavior.

6. Merges with the Metaverse – Recently, Nike acquired RTFKT, a digital shoe-making
company. Yes, you heard that right, the company designs shoes, but for the virtual
stratosphere only. However, RTFKT also claimed that it partnered with FEWOCiOUS (a
young artist) to sell real shoes along with their digital versions. Nike is banking on the
opportunity to market their digital shoes on the Metaverse, where players can use their
Metamask wallets to purchase different types of in-game merchandize.

[Link] COLLEGE OF ARTS & SCIENCE, BILIMORA Page 59


7. Exiting From Wholesale Distribution – Recently, Nike announced it‘s going to be
exiting the wholesale distribution market in the U.S. The company plans to only market
its products at Nike stores, app, and websites. According to Nike, the move away from
distributors is going to help them double their profit margins. Moreover, Nike will also
have the opportunity to spearhead the customer shopping experience as well as control
prices.
8. Consumer Direct Strategy – Nike has accelerated the consumer-direct strategy, which
means shifting its focus to digital business and subsequently closing physical stores. In
fiscal year 2021, 38.7% of its Nike brand revenue comes from online sales. Clearly, the
pandemic is shaping up how Nike interacts with its customers.

Nike’s Threats – External Strategic Factors

1. Counterfeit Products – Counterfeit products can significantly affect the revenue and
reputation of Nike. The company deals globally and the risk of counterfeit products has
become higher. A number of merchandisers and retailers offer counterfeit Nike products
at lower prices. The low-priced products are made from low-quality materials but still
have the Nike label. This can tarnish the image of the brand as the customers might feel
that Nike has started producing low quality products.

2. Increased competitive pressure – Although, Nike is a dominating the athletic industry,


competition, and new emerging brands are still potential threats to the company. With
higher competition ratio, Nike has to spend more money on marketing and advertising.
Nike spent $3.5 Billion specifically on marketing and demand generation in fiscal year
2020. To overpower competition, Nike‘s safest bet is to design innovative products that
are tailored according to the needs of athletes.

3. Marketing Budget Pressure– Companieslike Under Armour , Adidas and Lululemon


are spending more on marketing and advertising campaigns, increasing the pressure on
Nike.

[Link] COLLEGE OF ARTS & SCIENCE, BILIMORA Page 60


4. Currency Foreign Exchange Risks – Since the brand operates globally, it is affected
by fluctuating foreign exchange rates. Nike reports its financial earnings in U.S dollars.
This affects its revenue as the U.S dollar is exposed to volatility against other financial
currencies.

5. Patent Disputes – Regardless of whether a company is wrong or right, patent disputes


are hotly and fiercely contested in the public domain and expose some dirty secrets
about sides in the dispute. Nike and Adidas have been engaged in a fierce patent
disputes over Primeknit and Flyknit shoes in U.S. and German courts.

6. Economic Uncertainty – Regardless of the industry, all companies are susceptible to


the negative effects of a global recession. Already, Nike has registered a 38% decline in
sales in Q2 of 2020 and can drop further in the future if the recession strikes as hard as
predicted by experts.

7. Trade Tensions – Nike depends on different markets across the world evidenced by
the recent increase in its stocks rallied by an increase in sales in China. With China and
the US as its biggest markets, a large chunk of Nike‘s sales will be threatened if the
trade tensions between the two giants escalate.

8. Patent Conflict towards Adidas Primeknit Shoes – In an appeal to a U.S. agency,


Nike filed a complaint that Adidas has been infringing on the company‘s Flyknit shoe
technology patent. The company also stated that the German shoe manufacturer had
used Nike‘s Flyknit tech in 49 shoe designs (which uses Primeknit tech). However,
according to an Adidas representative, the company will fight these claims and stated
that Adidas has started using their Primeknit technology after numerous years of
research and development.

9. Risk to Kangaroo Population – Nike has been accused of putting the Australian
kangaroo population at risk of extinction. The leading athletic brand uses kangaroo skin
to manufacture leather football shoes. Animal rights activists and advocates have urged
Nike to rethink its strategies and to use plant-based alternatives. So far, Nike hasn‘t

[Link] COLLEGE OF ARTS & SCIENCE, BILIMORA Page 61


responded to these allegations.

[Link] COLLEGE OF ARTS & SCIENCE, BILIMORA Page 62


CHAPTER 7:-
SAFETY DEPARTMENT

[Link] COLLEGE OF ARTS & SCIENCE, BILIMORA Page 63


 NIKE WORKMEN’S COMPENSATION POLICY

Nike employees receive their compensation in the following ways: base salary, annual
cash bonuses, and stock grants, which come in the form of Restricted Stock Units
(RSUs) and Restricted Stock Awards

LIST OF POLICIES

 Respect for Human Rights in Nike's Supply Chain. Nike does not own or operate the
facilities which produce our products.
 Commitment to Core Labor Rights.
 Forced Labor.
 Freedom of Association.
 Discrimination and Gender Equity.
 Compensation.
 Working Hours.
 Commitment to a Healthy and Safe Working Environment.

[Link] COLLEGE OF ARTS & SCIENCE, BILIMORA Page 64


BIBLIOGRAPHY:-

REFERENCE BOOKS:-
Marketing management by PHILIP KOTLER (2005): 11th Edition

Production management by [Link] (2011):2 nd Edition

Human Resourse management by [Link] Rao (2014):5 th Edition

Finanacial management by I am pandey (2010): 10th Edition

[Link] (list of product)

[Link] (4ps)

[Link] (distribution channel)

[Link] (plc-product life cycle)

[Link]
(market segmentation and positioning strategies)

[Link]
,Promotion,customers%20to%20buy%20their%20products. (promotion tools used)

[Link] (pricing tools followed)

[Link]
nike.214291/ (recruitment & selection)

[Link] (num of
employees)

[Link]
(safety p)

[Link] COLLEGE OF ARTS & SCIENCE, BILIMORA Page 65


[Link]
(performance appraisal)

[Link]
nike.214291/ (recruitment & selection)

[Link] (feedback)

[Link]
(accounting procedures)

[Link]
consumer/508606/#:~:text=Nike%20is%20looking%20to%20reduce,investing%20in%20
automation%2C%20Quartz%20reports. (purchasing lead time)

[Link] (swot analysis)

[Link] (packing)

[Link] (engineering department)

[Link] COLLEGE OF ARTS & SCIENCE, BILIMORA Page 66

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