A CONDUCTIVE INTERVIEW: NIKE
QUESTION 1 briefly explains the organization you choose and explain why you made this choice.
SOLUTION I am choosing Nike as an organization because of its different variety of products available in the market like athletic shoes, equipment, apparel and accessories for all age groups. People prefer choosing Nike when they come to choose shoes, apparel or any other accessories. Nike is a global brand that attracts people of all ages due to its uniqueness. It is one of the most valuable brand when it comes to sport equipment. Nike has extended itself in the range of shoes, sports equipment, and jackets. Nike has many products under its roof to make the people of all age group happier. This company aims to enhance the productivity rate of the sports person because people always gets attracted to the brand which is customer-friendly and caring. With the increasing competition, the global turbulences are also taking a toll and making it an important aspect to understand. It is a business challenge that is in need of evolving and for the customer’s preference it needs to be customized also. It is important to understand the need of the customers and keep oneself updated technologically as it saves both the time and efforts. For achieving it successfully, Nike is in need of mitigating the risk and understand new technologies to create a place in the global competitive market. The company has considered many different aspects detrimental and it includes business challenges like laws, strategy, and law. The mission of Nike is to deliver fashionable equipment to its global audience in a unique and personalized way. The Nike apparels are very different from any other company working in the same field. The Nike is working in 100 countries in accordance with social media, e-commerce website. Nike has a collection of intersection of fashion, health, fitness and wellbeing connecting lakhs of people across the world. Nike or ‘A pioneer of innovation,’ rules the market as it adapts the updated and new technology to provide its customers a unique customer experience through its luxury active wear products in the global market. The approach of Nike is “community first” that makes it a brand that has a unique customer approach. It also aims to create a digital shopping experience for its customers like no other with each package hand-wrapped and dispatched from their global headquarters.
The marketing plan of Nike is as follows: –
Advertising – Nike has advertised its products through television ads or by commercial. The Cannes advertisement festivals have taken Nike in its show in 1994 and 2003. Advertising is one of the most prominent method to bring your product and services in a limelight all around the world.
Beatles songs – Nike has used Beatles song for its promotion against the Apple records. Nike has spent lot of money for the recordings of the Beatles Songs. Today’s we know songs throw a good effect on the customers to get crazy for their products and sing them all around. There are many companies like Nestle, Pepsi, Coca-Cola has used the songs for the advertising purpose.
New Media Marketing – Nike has adopted E-mail system, internet marketing and also used narrowcast technologies to create different types of marketing campaigns. Nike must try to reach out through their customers using different social media platforms. This platform includes Twitter, Instagram, Facebook, LinkedIn and many more that connects with real people of the real world. Nike must try to ask their authority to ask their customer to like their favorite sports equipment or apparel.
Nike used to pay big and top athletes in many games to play their clothes and equipment’s to promote their brand image and its uniqueness. Ronaldinho is the football player who promotes the shoes of the Nike in 2005. The first athlete who promotes Nike is Nastase (David, 2003).
QUESTION 2 Identify the individual you interviewed, date, time and location.
SOLUTION
Topic: Success story of Nike
Interviewer name: Phillip H. Knight
Discussion: I am interviewing the CEO Phillip H. Knight. He is running the company and become the driving force of the company success since 1964. Knight holds an undergraduate degree at the age of 61 years from the Oregon University and MBA from the Stanford University. He has a full-fledge mission and vision for his company to what should be the product range of the company. Knight is the risk-taker and makes many decisions in respect of the company to sell sports shoes to apparels of almost all age group. The decision he take is based on the external and internal forces of the environment so, he take its single step in a very calculative way. Knight mostly uses participative approach for taking or analyzing any decision.
I have asked some of the question about his company:
What is the objective of the Nike?
The objective of the company is to inspire each and every athlete of the world by serving something creative and innovative products.
Where is Nike headquarters?
The headquarters of the Nike is in Washington State in U.S.A.
Who are Nile shareholders?
Phil knight and bill Bowerman are the Nike Shareholders. They are working from the beginning with us. As we have made very good tuning to work as long as we could. We both are benefited in one or other way.
What is the Nike panning for the future game?
Yes, there is big planning of Nike for the future. To get successful by maintain happiness of each employee is very difficult, we are working on various aspects to make the thongs happen. The planning of the Nike is to keep making shoes for its customer.
Why do Nike cost so much?
Nike cost so much because everybody buys them. The reason behind it, it is Nike. Nike has maintains their quality of the products and services in a unique way.
What is Nike purpose?
The purpose of Nike is to make best shoes and apparels which help in increasing the performance of the employees.
What are the Nike marketing objectives?
The objective of the Nike is to maintain its position as a leader in the world.
What is the logo of Nike? Why you choose this?
The logo name of Nike is “Nike Swoosh”. The beautiful logo design has been made by a student who had been learning graphic designing.
Who are the competitors of Nike?
The perfect competitor of Nike is Adidas. Unless, there are many competitors like Amour, Puma etc.
Why Nike logo is black and white. Many companies has chosen different colors, why u chose these two only?
The designer has given the logo design in black and white because he wants us to choose color so we decided to let the colors be black and white.
QUESTION 3 Describe the staff development plans, coaching philosophies, management policies, quality control initiatives, initiatives, etc., that are currently in existence.
ANSWER STAFF DEVELOPMENT PLANS OF NIKE
Staff development plans are very important tool of Human Resource Management. It can be referred as the enhancement of the capabilities of the workers and the whole firm. These activities show that company cares for his employee department. The company can be more flourished if these performances from these activities increased. If the employee’s abilities to work increased, they would be more satisfied and committed towards the work more than earlier.
Employee is the key component of the organization. Nike has given many opportunities of promotion to the employees so that employees participated in most of the task.
COACHING PHILOSPHIES
Coaching is one of the prominent activities for the staff development. Coaching is the informal activity not a formal activity. It treats the employee in a friendly manner in achieving both formal and informal goals. This is the reason we can solve the problems of the employees through the effective coaching. When the employee’s problems get resolved, this leads to the increase in the performance of the staff with desired goals. Coaching is a type of development in which a person gets an individual training to work in the company effectively and efficiently. Companies make their employees to work in a professional way by effective training, guidance and advice. The purpose of the philosophy is to give proper guidance to the employees. It also aims to extend the learning ability of the employees. coaching can be used in large number way to support the development (David, 2003).
MANAGEMENT POLICIES
Nike has created many management policies for their workers to work in a unique way. Nike has adopted many strategies like market visibility, promotion through various channels, communication with the customer, promoting cultures, and reasonable pricing. Nike has come up to the high position in just 3 years of its beginning. The strategy of style runner remains stable even in that period they face challenges. This strategy has become a business model for a large numbers of businesses. Earlier there are no other online platforms who are working to sell shoes and other sports equipment’s. The company faces challenges when employees were not available when they need (Mishra, 2011). Then Nike finds a strategy by which the employees get easy to access and can work from anywhere they are. This helps in get connected with the customers any time they need. Some of the management policies are:
Nike has developed a corporate culture rich with the employees’ loyalty and working team spirit.
Nike has worked towards the inner culture that gives the reflection of mantra.
It’s a new policy of Nike for the new employees to watch a sports video which highlights the company soundtrack which gives competitive spirit to them.
Nike asks his team to work with two policies and principles: first to work with honesty and loyalty, secondly take competition as a good team spirit (David, 2003).
QUALITY CONTROL INITIATIVE
Quality control is the initiative taken by the Nike through which a business wants to make sure that product quality is maintained and product manufacturing errors are supposed to reduce. Quality check requires a business to create an environment for the management and employees work in the path of perfection. The history of Nike quality management is from inspection to total quality check such as Six Sigma. A different technique was used for the quality check to identifying, prioritizing which are important for the quality check. Some of the important tools are:
Cause and effect technique
Brainstorming
Pareto analysis
Control charts
Bar charts
Check-sheets
Scatter diagrams
Histograms
QUESTION 4 Analyze the specific approaches against the background of scholarly research and provide an analysis of their effectiveness in terms of the organization’s vision, mission, goals, fit, etc.
SOLUTION NIKE MISSON STATEMENT
Nike mission is to bring inspiration and innovation to each and every athlete around the world. Nike mission statement involves:
Inspiration
Innovation
Each and every athlete in the world
Nike says that “if you a body, you are an athlete. Nike mission statement focuses on the inspiration and innovation. The company mission is to push the target customers around the world. Therefore, company products are designed to attract and satisfy the customers in the entire segment globally. Nike mission statement has outlined the strategic direction of the Nike business. The mission statement is always the current situation of the company. Nike mission is to go ahead and get successful space from its competitors (Mishra, 2011). Nike competitors are:
If we see in terms of market share, NIKE and ADIDAS are the perfect competitors.
Puma
Skechers
Anta and Li Ning
Under Armor
Reebok
Hurley
Converse
Bauer
Nike mission statement is very clear and precise statement which shows where the company is at now. Nike mission is to bring some creative ideas and products to the large number of people. (David, 2003).
NIKE VISION STATEMENT
Nike has both mission and vision statement. Nike used to take a different path in terms of vision statement. The vision statement of the Nike is to incorporate by all the members of the leadership team who give the example of core values and beliefs. The Nike Company has a vision statement as its corporate social responsibility which is good for the business. According to CSR, to help Nike and their customer in a way where the profit, economy has its balance (Mishra, 2011). The components of Nike business is:
Help customer by providing different types of products and services.
Provides social and balance economy.
Planet, people and profit should be in balance.
Nike CSR vision statement includes the company staff and its members as important participants to achieve desired goals. Sustainable economy is another component of the vision statement. The third component of the company vision statement is to make people, profit and planet. Nike has supposed to give benefits to all the consumer and customers of all levels. Nike has faced lot of challenges with its some employees in the beginning. The team has no trouble in email for product copying, designs or any other page web designs. As the company expanded it require need for the mode of communicating with the customers or with internal members without any prior disturbance. The staff is not able to work efficiently, as it takes a lot of time to get back to the each task on time (David, 2003).
GOAL OF THE NIKE
Nike is the biggest manufacturers of sports equipment’s and apparels for the both casual and leisure purpose. Nike has major competition with the Adidas. Nike Company should try to make something better to win the race by improving their quality in effective way. There is also a need of technological innovation because manual work needs more time which waste the most of the time of the company. The goal of the Nike is to make high-quality products designed for both men’s and women’s. Some of the categories are:
Running
Soccer
Basket ball
Sport-shoes
Kids shoes
Another goal of Nike is to include people from both genders by making some innovative and creative equipment’s and apparel’s. . Nike has extended itself in the range of shoes, sports and jackets. Nike has many products under its roof to make the people of all age group happier. This company aims to enhance the productivity rate of the sports person. People always gets attract to that brand which is customer-friendly and caring. With the lot of competition along with facing the global turbulences, one needs to understand the business challenges which need to be evolving and customized as per the preferences of the customers. With understanding the consumer need, one need to involve or upgrade technology to save time and efforts.
PEST ANLAYSIS OF NIKE
POLITICAL FACTORS
Political Factors can affect Nike for the both the bad and good changes.
POSITIVE: with the reduction of taxes on product, more consumer gets attracted towards the product.
NEGATIVE: with the increase of taxes per product increases, the consumer will not buy anymore.
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ECONOMIC FACTORS
Economic factors can highly convert into profitability.
Prices of the properties are higher as compared to consumer’s income in some countries. Due to this reason, many people opt to live in rental accommodations and increases the demand for rental homes. The overall cost of the products increases due to the increased rents and production cost. This can affect Nike adversely.
If the income of consumer increase or decrease, then demand will be the increase or decrease vice versa
SOCIOLOGICAL FACTORS
If the bank charge high rate of interest on the money borrowed, then Nike will not borrow money which will limit its expansion.
Nike has makes changes according to the cultures as to grow worldwide.
TECHNOLOGICAL FACTORS
Upgradation of technology may enhance the effectivity of the outfits which will make profit in the large.
The company can take media for its promotions for its new products.
SWOT ANALYSIS
SWOT analysis is the combination of the strengths, weakness, threats and opportunities of any organization that face many difficulties.
Strengths:
The strength of the Nike is the primary initiators for the growth of the company and the sovereign leadership in the sports equipment’s. The SWOT analysis deals with the company strength and weakness which deals with its growth and the competitive edge. The strength of the company is:
Brand image – Nike has make always something new and creative which make its competitive brand image as compare to the other brands. The Nike has to not restrict to the some countries, it has spread its victory all over the world. Nike has become the handsome creation of the today’s generation. People are very crazy about the players who follow the brand they chose to prefer. Nike has always try to make something better and different from the other to make everything possible for their labor and staff (Bernroider, 2012).
Innovation – Innovation refers to make something new and innovative. Nike has always tried to reach the satisfaction level of the customers. Nike has tried to make something unique for their customer to attract more public towards them. This is the only reason, why Nike promotes its brands through the international level players.
Production and distribution – Nike strong production level has reached the entire customer throughout the world. Nike has also adopted various distribution channels to make it convenient for their global lovers worldwide. Nike has followed many distribution channels like retailer, through agents etc. Nike has working through large number of the distribution channels.
Nike brand image is based on its quality product and services. Nike customers are always satisfied if they have any complaint regarding the products they purchase. High quality products and safe products are the causes which make a brand into a loyal brand. Nike as a strongest competitions (Bernroider, 2012).
WEAKNESS OF NIKE:
As a global leader, Nike should try to avoid weaknesses as it may destroy the name and fame of the company. It is very important for any company to maintain its level with continuous and sharp watch. Some of the weaknesses are:
Labor related problems
Restrictions in product – mix
Limited presence on social media platforms
Nike should try to avoid labor controversies to maintain its high quality products globally. Labor issues may interpret Nike as it doesn’t taking care of their labor which is also very important for the company. The Nike has still working in not so good direction as its participation on social media is very less which can turn its position into trouble. Nike must try to make more strategies and policies to maintain its position into the market (Bernroider, 2012).
OPPURUNITIES OF NIKE:
Nike has got many opportunities to extend its presence in the international and domestic market. Inspiration means the people are encouraged to wear the sports shoes or apparels of their favorite players like Ronaldo. Nike must try to watch out the activities of the competitors to work in unique way. Nike cannot always rest at the top of the companies because to maintain some position it has to continue make some innovative and creative ideas to stay on some good position The External and internal factors helps Nike to get many opportunities to get into the world of sports. Some of the opportunities are:
Improve labor interactions
Improve product and marketing mix
Improve social presence
Nike has various opportunities to solve the problems of the labor and make them more confident to work in effective way. There are many strategies which are proactive may improve the brand loyalty. Nike must try to improve the product and marketing mix to get benefits from these markets which have high-potential of the growth. Nike should try to increase its social presence on the social media platforms to attract large number of customers. They should engage themselves in increasing creative and innovative ideas for the strategies of the Nike.
THREATS OF NIKE:
Nike is one of the strongest leaders in the world of sports shoes or sports equipment’s. Threats may limit the growth of the company which the makers have to pay for it. It will be good to analyze the threats in advance and try to find out some solution for it. The main threats for Nike are:
Competition
Technological issues
Copying
Nike has major competition with the Adidas. Nike Company should try to make something better to win the race by improving their quality in effective way. There is also a need of technological innovation because manual work needs more time which waste the most of the time of the company. These threats must be removed by the company to grow in a good way. Nike must try to take patent rights for each and every idea whether it has to be followed or not. There may be chances of imitating the creative and innovative work (Hazucha & Hezlett & Schneider, 2011)
RECOMMENDATION FOR THE SWOT ANALYSIS
The SWOT analysis has reviewed the strength, weakness, threat and opportunity for the organization. It shows that company has that strength to face the threat and weakness involved in the organization. Nike team members must try to solve the difficulties to maintains its king position around the world. SWOT analysis helps in making good decision like how Nike should achieve the goal by taking few steps? It is very important for any company to have SWOT analysis done properly. It will have its own advantage, if it’s done properly. Company would know the weakness of its products and will try to sort out in the proper way.
The Nike Company must focus on Digital sports shoes. This can be a high quality innovation for the Nike to give confidence to people to make use of sports in daily life. Nike has become leader in the sports world. Many sports person are following Nike which is also a huge promotion for the Nike Company. Now, the time of the company to make some of the changes in their products and services to attracts more and more customers (Valentin, 2001). Digital shoes must have some innovative quality like track record and many more. If there is any problem, the shoes can be tracked accordingly which is the good idea for the organization. The another recommendation is that Nike must try to reach out through their customers through various social media platforms like Facebook, Twitter, LinkedIn, Instagram and many other platforms to connect with real people of the real world. Nike must try to ask their authority to ask their customer to like their favorite sports equipment or apparel (Bernroider, 2012). This would make customer very connected to their favorite choices and also will be much and more aware to the latest collection at the same time (Valentin, 2001). Nike slogans like:
Just do it
Make it count
If you have a body, you are an athlete
Nike must encourage their customers to have confidence with the real sports shoes to live a luxurious life (Valentin, 2001). As we know the cost of the Nike products are very costly because it’s Nike. People set goals to the themselves as they love to wear the products which are followed by their idols players. The Nike core competencies are innovation and inspiration. Innovation generally means making something creative. Inspiration means the people are encouraged to wear the sports shoes or apparels of their favorite players like Ronaldo. Nike must try to watch out the activities of the competitors to work in unique way. Nike cannot always rest at the top of the companies because to maintain some position it has to continue make some innovative and creative ideas to stay on some good position (Valentin, 2001).
For example: The management at Nike should aim to improve the company balance by showing the positive attitudes towards the employees, labors and staff. Employees must be provided with the all suitable resources to get the work done properly. The Nike needs to assure that the resources are fully utilized by the staff. It is very important for the customers also to know their rights against the issues worldwide.
CONCLUSION
NIKE has a very high position in the global market as well as in the domestic market, which it has successfully maintained. The above-given project, talks about the different types of shoes and apparels that the company can introduce in the market. Despite of the many global and domestic challenges Nike has maintained a stable position and aims to continue so. There are many types of products of Nike like Sports shoes, apparels, running shoes, air-shoes etc. which are also available in various categories for the men and women. The customer can choose the shoes according to their budget and preferences. People have their own tastes and preferences so, they have to choose themselves. Company has to maintain the price level of the products properly. These products have win – win situation for the company because no other company or any online platform sell Nike shoes or any other products which is remarkable for the company. Nike has tried to make something unique for their customer to attract more public towards them. This is the only reason, why Nike promotes its brands through the international level players There is a more important model which is retail. Besides producing the innovative products which are very costly but people are buying because it is Nike. The company trying its best foot forward in the retail and manufacturing model, for which many employees are working internally or externally. It has a large number of people for its working inside or outside the company. The company must take care of the people to make their dignity and maintain the confidence level of the customer in a proper way.
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