HISTORY

Nike was founded in1968 by Phil Knight

Phil Knight graduated from UofO and Stanford
As a young aspiring businessman began selling shoes out of his truck at sporting
events
With the help of his former track coach developed traction for running shoes
The new waffle like traction design made Nike stand out
By 1979 Nike became the most well known shoe company in the world
Today, Nike is a four billion dollar company
World campus located in Beaverton, OR
Strengths
Number one sports brand in the world
Global Brand
Strong at R&D and innovation
No factories that tie up cash in buildings and manufacturing
They manufacture where ever they can produce the highest quality products for the
lowest price
The Swoosh
The SWOOSH logo is a graphic design created by Caroline Davidson in 1971. It
represents the wing of the Greek Goddess NIKE.
Caroline Davidson was a student at Portland State University in advertising. She met
Phil Knight while he was teaching accounting classes and she started doing some
freelance work for his company.
Phil Knight asked Caroline to design a logo that could be placed on the side of a shoe.
She handed him the SWOOSH, he handed her $35.00. In spring of 1972, the first
shoe with the NIKE SWOOSH was introduced.....the rest is history! (from Nike
Consumer Affairs packet, 1996)
Update: 2004-2006
2004: Nike introduces Swift technology.
Nike Swift increases track times by up to 1.13%.
Football (soccer) wear becomes #1 in Europe.
Nike SHOX footwear introduced in other footwear types and continues to
boom.
2005: Profits recover, growing nearly 30% to reach $1.2 billion on
unprecedented revenue of $ 13.7 billion.
Nike has 8 NikeWomen stores in key cities in the U.S..
Nike Pro Apparel introduced into NFL and MLB.
Greatly expands SHOX running footwear
August: Main competitors have joined with the recent announced acquisition of
Reebok by Adidas
2006: Nike Pro Apparel expands into NBA.
Nike uses Rihanna to help infiltrate the womens market.
Nike expands womens product line and website.
Introduced Nike Consider to be more environmental conscious.
Introduced new footwear and apparel line Pre dedicated to Steve Prefontaine
Our Brands
Mission Statement
Nike is the "largest seller of athletic footwear and athletic apparel in the world.
Performance and reliability of shoes, apparel, and equipment, new product development,
price, product identity through marketing and promotion, and customer support and
service are important aspects of competition in the athletic footwear,
apparel, and equipment industry. We believe we are competitive in all of these areas."
The company aims to " lead in corporate citizenship through proactive programs that
reflect caring for the world family of Nike, our teammates, our consumers, and those who
provide services to Nike."
Proposed Mission Statement
To continue to offer quality products with increasing growth in the industry and expanding
globally. Our mission has always been to provide a competitive edge by developing the
most technological products. Keeping in mind fair labor practices in all our suppliers
factories, while maintaining a competitive advantage, with the shareholders interests, and
company profits in mind. We also believe our employees are one of our most important
assets. To increase the responsibility towards the environment by evaluating the impact of
day to day operation and attempts to change operations that have a negative impact.
Manufacturing: Nationality of Contract Suppliers


NIKE SELLS


Challenges
To gain an understanding of potential implications to their business and examine
ways to go green, Nike has been working since many years to examine the
challenges that they face as well as the measures that are needed to overcome them
and gain a competitive edge.
Nike is looking forward to develop new business concepts that will help them to
succeed in the sustainable economy.
They are looking forward to create a road map regarding the challenges that the
brand is facing.
Thus, develop the expertise that will lead them to a successful future.
Nike was also facing the challenge to continue their evolution as well as improving
their current model during their transition.
There were also issues regarding the designing of their products which could go
eco-friendly, the corrugated boxes as well as the retail bags which Nike uses. The
boxes and the retail bags could be designed in a way that will be recyclable.
The lighting facilities used in Nikes stores were also required to ponder upon in
order to Go Green.
Nike became the chair of the World Economic Forums Consumer Industries
Working Group on Sustainable Consumption in the year 2008.
The goal of Nike in this group is to spur the industry collaboration on the solutions
that will help to achieve a sustainable economy.
In order to overcome the above challenges, Nike joined hands with World Economic
Forum, The Natural Step, Deloitte and Touche and Business for Social
Responsibility.
Nike also faced the challenge about the existence of their customer brand in a
sustainable economy.
Thus, Nike was staring at two key challenges:
first, the solutions that will require systemic change according to industry and
secondly, the scale and difficulty level of the changes that would demand new
changes and novel approaches to collaboration and innovation.
Thus, optimistic measures were required to fulfill the solutions to these challenges.
Measures
Nikes single largest material purchase is the corrugated cardboard. Almost 50% of
Nikes packaging consists of shoebox and its shipping carton. Thus, with an intention
to reduce packaging waste, Nike applied innovative design and came up with
different materials and alternatives in order to reduce load and shipping cost. But it
was also observed that in most of the markets, majority of the materials wont be
recyclable.
The research started again and with the help of innovative engineering, a box which
will use 30% less material than a 1995 vintage box was discovered. These fully
recycled and recyclable boxes will aid in saving 200,000 trees annually and the box
is being used since 2011.
Understanding the significance of collaboration and sharing of knowledge, Nike
along with nonprofit Creative Commons has formed GreenXchange. This
collaboration ensures patent licensing tools, patent owners that enable an array of
technologies for research, development and pioneering commercial uses
Nike had researched a great deal regarding the improvement in the sustainability of
retail bags.
Previously, Nike outsourced the retail bag business only to the printers that were
certified by FSC (Forest Stewardship Council). FSC paper was too costly at that time
and as the time went by, Nike encouraged the printers to make use of FSC-certified
supplies.
Since this time, four years have gone by and now Nike uses the bags which are
manufactured with the help of FSC-certified papers. These bags were printed on
FSC-certified printers which were operated using soy-based inks and distributed by
FSC-certified fulfillment company. As a result of this chain, Nike uses the FSC
certification number and logo on every retail bag in Singapore and North America.
Nike has adopted remote lighting management in their retail stores and has also
reduced the energy waste. Nike has identified body suppliers which use sustainable
materials and are located near Nike centers. This helps in reducing the traffic and
miles travelled from manufacturing plants to Nike center as well as also reduce the
long-distance shipping.
Nike has also been operating Re-Use a show program under which the old shoes are
dropped at collection sites located worldwide. In case of non-availability of
collection center there is a mail-in option. These shoes are then delivered to Nike's
Wilsonville, Oregon facility and the Meerhout, Belgium facility where they are
separated in 3 parts, ground up and are recycled.

At the 2010 FIFA World Cup, Nike introduced environmentally friendly national team kits.
These eco-friendly kits were used by Brazil, USA, Portugal, Australia, Netherlands, South
Korea, Slovenia, New Zealand and Serbia. Nike used recycled polyester for this purpose and
prevented around 13 million plastic bottles which totaled around 254,000 kg of polyester
waste. This huge was recycled and an eco-friendly kit was manufactured.
The CR report outlines some important initiatives for the company including:

1. Considered Design
Considered Design combines sustainability principles and innovative performance
products for athletes by reducing or eliminating toxics and waste and increasing the use of
environmentally preferred materials.

2. GreenXchange (GX)
GX is a web-based marketplace designed to share intellectual property which can lead to
new sustainability business models and innovation. It is a system for capturing, sharing and
licensing patents that, when used by someone else, could lead to unlimited innovation in
helping solve current obstacles to sustainability issues. By making private intellectual
property visible and usable, the aim is to accelerate the development of green innovation.

3. Lean and Human Resource Management (HRM)
Nike has been working with contract factories to train them in the implementation of
specialized Lean manufacturing and HRM. Lean principles put the decision making closer
to the worker through skill building, teamwork and understanding quality over quantity.
HRM builds the factorys managerial capacity and helps them value an empowered
workforce. While only one aspect of Nikes work with contract factories, it is an important
pillar of Nikes strategy to build a more lean, green, empowered and equitable supply chain.

4. Sport for Social Change
Nike has furthered its strategy of using sport as a powerful movement for social change.
Sport is undervalued for its capacity to build networks of social entrepreneurs and
community innovators and for its ability to drive positive social, economic and cultural
change. One powerful example of a program Nike partners with is Grassroot Soccer in
Africa. It is a community program which is directly addressing a dire social need through
raising awareness and education of HIV/AIDS by enabling young people to make informed
decisions, using sport as a catalyst to engage and communicate to boys and girls.

5. Energy and Climate Change Strategy
In 2009, Nike instigated the formation of new coalition of consumer companies called
Business for Innovative Climate and Energy Policy (BICEP), which is advocating for strong
U.S. climate and energy legislation with the aim of creating a level playing field through a
cost on carbon and unlocking innovation that is essential to creating technology and
infrastructure solutions. Nike aims to be ahead of the curve of mandatory regulation,
energy price increases and volatility and consumer pressure.

In addition, in 2008, Nike launched a footwear energy efficiency program with five contract
manufacturers. Nikes commitment to collaboration on this project has shown excellent
early results: the contract factories absolute CO2 footprint was down 6 percent despite a 9
percent increase in production.

Nikes corporate responsibility report, available online at Nikeresponsibility.com, provides
greater detail on progress against targets and provides a comprehensive review of the
companys efforts for fiscal years 2007, 2008 and 2009.
Nike Sustainability Report: Aims for 20% CO2, 15% Water, 10% Waste Cuts by 2015


Nike has committed itself to a 20 percent reduction in CO2emissions per unit, a 15
percent improvement in water use per unit of production and a 10 percent reduction in
waste from manufacturing by financial year 2015, measured against a financial year
2011 baseline, according to the companys 2010-2011 sustainability report.
Nikes carbon emissions reduction will be judged against the sportswear giants
footprint in the built environment, inbound transportation and footwear manufacturing.
In FY 2011 the company used 19.7 percent more energy and emitted 16.6 percent more
carbon that.