Nike Case Study

Company mission “ To be the world’s leading sports and fitness company”

Company history ,[object Object], design created by Caroline Davidson in 1971. ,[object Object]

The 1st shoe with the NIKE SWOOSH was introduced in Spring 1972. ,[object Object], goddess of victory according to Greek mythology.

Company history 1962: Philip H Knight founds Blue Ribbon Sports (BRS) to import Japanese running shoes. 1963: BRS takes its first delivery of 200 shoes from Onitsuka Tiger Co. 1964: BRS becomes partnership between Knight $ William Bowerman. 1966: The company’s 1st retail outlet opens. 1968: Company is incorporated; the Bowerman Cortez design become a big seller. 1971: BRS begins manufacturing its own product overseas & the Swoosh trademark and the Nike was introduced.

CASE SUMMARY DEVELOPING AN EFFECTIVE PUBLIC RELATIONS STRATEGY. ,[object Object]

NIKE has responded and took a proactive action to ensure the best practices in Human Resources Management, Environment protection and safety policies. ,[object Object]

QUESTION 1 What could Nike’s Corporate Responsibility team do to improve Nike’s public image?

QUESTION 2 Why did Nike’s attempt to address it critics prove unsuccessful?

QUESTION 3 What damage, if any, has been done to Nike? Did Nike react appropriately? Did it overreact?

QUESTION 4 Many of Nike’s competitors subcontractor production to Asian factories that are similar to the factories used by Nike, why was Nike singled out by human rights and labour right activist?

QUESTION 5 What responsibility does Nike have to the workers in the factories of its subcontractors? What wage rates should it require them to pay their workers?

QUESTION 6 According to its corporate Web site (www.nikebiz.com) Nike seems to be more forthright in delineating what it believes to be more corporate responsibility issuing, for example, an annual Nike responsibility report? Is Nike now doing enough for its contract workers?

Q1: Answer ,[object Object], PRESS RELEASE OUTLINING THE STEPS THAT NIKE HAD TAKEN TO ENSURE COMPLIANCE WITH ITS CODE OF CONDUCT. ,[object Object]

RESPONDING TO EACH INQUIRY FROM THE MEDIA OR WATCHDOG GROUP & TRYING TO OPENLY CPMMUNICATE WITH THEM.,[object Object]

TO MONITOR THE IMPLEMENTATION THE CODES OF CONDUCT & TO FOCUS ON THE ROOT OF THE PROBLEMS.

NIKE UNABLE TO BALANCE BETWEEN BUSINESS OBJECTIVE AND LABOUR PRACTICES ISSUES.

THE WATCHDOG GROUP ARE NOT CONVINCE WITH IMPLEMENTATION OF THEIR CODE OF CONDUCT AND HUMAN RESOURCES MANAGEMENT ISSUES.,[object Object]

Q3(a): What damage, if any, has been done To Nike? Nike initial response was to ignore the problem and suggested that any problems were the responsibility of Nike’s subcontractor

Q3: Answer The above action has lead to the following damages: Nike Image Shattered More “Negative News About Nike’s Labor Practices” Emerged Series of “Anti-Nike” Demonstration, Tarnishing Nike’s Image Nike Logo and Tagline are Associated With Bad Labor and Ethic Practice Out of Court Settlement Confirms Nike’s Bad Labor Practice Nike’s Management Reputation

Q3: Answer The above action has lead to the following damages: ,[object Object]

Instead of rushing to mitigate the crisis of workers exploitation, Nike choose toe deny the existence of the crisisNike Image Shattered More “Negative News About Nike’s Labor Practices” Emerged Series of “Anti-Nike” Demonstration, Tarnishing Nike’s Image Nike Logo and Tagline are Associated With Bad Labor and Ethic Practice Out of Court Settlement Confirms Nike’s Bad Labor Practice Nike’s Management Reputation

Q3: Answer The above action has lead to the following damages: More “Negative News About Nike’s Labor Practices” Emerged ,[object Object],Nike Image Shattered Series of “Anti-Nike” Demonstration, Tarnishing Nike’s Image Nike Logo and Tagline are Associated With Bad Labor and Ethic Practice Out of Court Settlement Confirms Nike’s Bad Labor Practice Nike’s Management Reputation

This may “directly/ indirectly” affected Nike’s customers’ purchase decision as Nike experience reduction in Net ProfitNike Image Shattered More “Negative News About Nike’s Labor Practices” Emerged Series of “Anti-Nike” Demonstration, Tarnishing Nike’s Image Nike Logo and Tagline are Associated With Bad Labor and Ethic Practice Out of Court Settlement Confirms Nike’s Bad Labor Practice Nike’s Management Reputation

Q3: Answer The above action has lead to the following damages: Nike Image Shattered More “Negative News About Nike’s Labor Practices” Emerged Nike Logo and Tagline are Associated With Bad Labor and Ethic Practice ,[object Object],Series of “Anti-Nike” Demonstration, Tarnishing Nike’s Image Out of Court Settlement Confirms Nike’s Bad Labor Practice Nike’s Management Reputation

The action indirectly shows that Nike is “guilty” and “responsible” for the work conditions and employees wellbeing of its subcontractor.Nike Image Shattered More “Negative News About Nike’s Labor Practices” Emerged Out of Court Settlement Confirms Nike’s Bad Labor Practice Series of “Anti-Nike” Demonstration, Tarnishing Nike’s Image Nike Logo and Tagline are Associated With Bad Labor and Ethic Practice Nike’s Management Reputation

Q3: Answer The above action has lead to the following damages: Nike Image Shattered More “Negative News About Nike’s Labor Practices” Emerged Series of “Anti-Nike” Demonstration, Tarnishing Nike’s Image ,[object Object],Nike Logo and Tagline are Associated With Bad Labor and Ethic Practice Nike’s Management Reputation Out of Court Settlement Confirms Nike’s Bad Labor Practice

Q3(b) Did Nike react appropriately? (c) Did it overreact? The team answer is No, Nike fail to react appropriately. The team finds Nike is actually “under-react”.

Nike is associated as a US brand/ product.

Nike is associated with “luxury” products.

Nike is also seen as the leader among its competitors

Nike Case Study

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Nike Case Study