Nike Mission – To represent the highest

Nike
&
Change Management
By: Mahmood AlHamad

Nike ( Ni – key)
• Nike Co. started in 1955 as a shoe distributor
company
• Conceived in a garage in Oregon, it had an initial
two -word mission..
• Global revenues of about 40+ Bil .
• Converse, Umbro, Hurley acquired by Nike
• 70’000+ employees worldwide
• Nike, Inc. is the largest manufacturer
worldwide of both athletic footwear
and apparel.


Nike founders: Phil Knight ;
Bill Bowerman

Change Management ;
1960’s 2018

Vision & Mission
“to distribute low -cost, high -quality Japanese athletic
shoes to American consumers in an attempt to break
Germany’s domination of the domestic industry. ”
1960’s
Mission
Customer Service Mission – To represent the highest service and
standard within and beyond our industry, building loyal customer
relationships around the world
The Nike Mission – To bring Inspiration and Innovation to every athlete
in the world.

•The United States, Nike’s ‘home country’ so to speak, has fantastic
policies for growth which are especially valuable to this corporation .
These include low -interest rates and well arranged international tax
agreements .
•As a company that produces and sells physical goods, Nike is, however,
always subject to changes in tax and manufacturing laws .
•Various political conflicts can always make customs related processes
difficult, or prevent imports and exports .
PESTLE Analysis – P
Political

PESTLE Analysis – E
•A market collapse could mean bad news for Nike, along with many
other big brands . Consumers may choose to switch to lower -end,
cheaper products if this were to occur, or even just as a decent level of
quality becomes easier to produce .
•Nike’s revenues are to some extent dependent on the low cost of labour
in Far Eastern countries . This is changing, though, which might mean
higher Nike prices across the globe come with the development in Less
Economically Developed Countries .
•With its ‘deep pocket’ of finances, Nike has the resources to chase after
small emerging markets in which they could sell products .
Economical

•Worldwide increases in ‘health consciousness’ means that more and
more individuals are moving towards better lifestyles .These people will
undoubtedly buy plenty of sports apparel, something which would make
Nike very happy .
•On the other hand, Nike receives much criticism for its dubious
production processes .(Sweat shops, low wages etc .)
PESTLE Analysis – S
Social

PESTLE Analysis – T
•Social media allows things to blow up or whittle away faster than ever .
Nike is doing well with using social media to build their brand, but it can
be a double -edged sword if used incorrectly .
•Nike also gets the opportunity to use valuable information based
metrics thanks to technological advances, allowing for them to optimize
targeting and production, and maximize revenue .
Technology

PESTLE Analysis – L
•It shouldn’t surprise you to hear that, like most massive corporations,
Nike also dodges substantial amounts of tax . In recent years, there
hasn’t been too much of a crackdown on this, but it’s still valuable to
consider .
•Also, Nike occasionally meets legal repercussions for its shady
marketing practices, which include false discounts
Legal

PESTLE Analysis – E
•Nike’s mass production factories are, without a doubt,
harming the environment . Not only do they release
plenty of aerial pollution like most factories, but Nike’s
production centers occasionally go as far as directly
polluting rivers .
•However, Nike also shows promise of a change in their
current practices, with a strong resolve to become more
‘eco’ .
Environmental

Change Management: SWOT
Strengths:
Weaknesses:
Opportunities:
Threats:
– Brand loyalty
– Brand Equity
– Effective advertising
– Product development
– Bad publicity
– Human right concerns
– Limited market share
– Highest prices in market
– R&D
– Fashion potential
– Global Markets
– New categories
– Consumer spending habits
– Competition
– Piracy/Counterfeiting

Change Management:
Organizational culture
“Organizations need to develop some sort of competitive advantage to thrive and remain viable”
Talent
Diversity
Inclusive
Trainings, Leadership Development, overall HR support to enable product
development and growth, internally & externally.
In order to create a widely dynamic culture, diversity promotes creativity,
innovation and brand image – which in return create a huge competitive
advantage, mainly through HR programs and product development
To minimize barriers and boost performance, harnessing an inclusive environment
is vital to nurture a culture of success, awareness and togetherness.

Change Management: External
R&D
Market Entry
Brand Image
Invest more in R&D to tap into more potential markets for sports/apparel utilizing
new technologies
How can Nike focus on high growth developing countries by expanding
based on free trade policies.
Improvement in sociocultural concerns and brand image through positive
campaigns and public reports/ showcasings .

Change Management: Strategic changes
“Sometimes you need to move some people around
to get things working.”
Nike to cut about 2% of its global workforce,
announces new business structure
New CEO
New CFO

Change Management: Innovation &
sustainability
“Nike has dedicated themselves to constantly evolving their business processes to more
effectively drive growth, improve efficiency, reduce costs, and create innovative products ;
content. ”

References
•Gillespie, A. (2007). PESTEL analysis of the macro –
environment. Foundations of Economics, Oxford University Press, USA .
•Housing Industry Association (2011). An Introduction to PESTLE
Analysis . HIA Ltd.
•Murphey, M., & Gause , R. (1974). UCF Research Guides. Industry
Analysis. PESTLE Analysis. Business Horizons ,17 (5), 27 -38.
•Nike, Inc. Form 10 -K, 2015 .
•Roper, K. (2012, November). BIM Implementation: PESTEL Drivers &
Barriers (Cross -national Analysis). In World Workplace 2012 . IFMA.
•U.S. Department of Commerce. The Retail Services Industry in the
United States .
•McClusky, M. (2009). The nike experiment: How the shoe giant
unleashed the power of personal metrics.
Wired Magazine
, 6, 2009.