Chap.(12)- Supply Chain Management

Nike has admitted that its Chinese supply chain is suffering from a lack of transparency, problems with wages and the use of underage workers. This month the sportswear manufacturer published its first country-specific supply chain report, revealing some problems the company is having. China is the companies largest sourcing area, with 180 manufacturers contracted to produce goods, including footwear. Nike found out the top three problems in management in China were: inefficient compliance with the company code of conduct; a lack of training and awareness of the code; and poor communication of factory standards by suppliers to workers. Nike's factories in China employee more than 210,000 civilians. Problems identified in the report included fake factory documents, 167 cases of workers with "incorrect identification" and two current cases of workers under Nike's minimum age of 18. A 15 year old girl was found working in one of Nike footwear supplier. Nike suppliers were also slow to increase wages in response to laws.

Chap.(12)- Supply Chain Management

This is a short film on how Nike runs its logistics center. It shows the warehouse techniques and technology use by the company.

Chap.(9)- Product Concepts

The Nike Hindsight glasses design uses Fresnel lenses, which were originally made for lighthouses and provide a wide aperture and short focal length. Even though the lenses reduce image quality, the idea is that since they are located only on the sides of the glasses, little clarity is lost in the process as the eye only detects motion in that area. Nike designed the glasses for cyclists, but the design could be handy in a more wide range of activities where detecting motion beyond the usual 180 degrees would prove advantageous. People such as marathon runners to track and field athletes could benefit from a few extra seconds of warning the glasses afford.

Chap.(8)- Decision Support System

Pay less Shoe Source has inked an agreement with Exeter Brands Group, a subsidiary of Nike, to jointly make a new brand of athletic shoes for women. The Tailwind brand was on shelves in spring 2007. The shoe will combine contemporary fashion styling with technical athletic performance. The shoes was retail for under $35 and are available at stores and online. As part of the partnership, Exeter and Pay less will together market the Tailwind brand.

Chap.(8)- Marketing Research

Nike marketing research offers a comprehensive analysis of the organization, its business segments, and competitors. It analyzes the business and marketing strategies adopted by the company, to gain a competitive edge in today's industry. Nike also evaluates the strengths of the company and the opportunities presented in the market. Nike gives immense help to management consultants, analysts, market research organizations and corporate advisers.

Chap.(7)- Segmentation

Nike will continue its brand segmentation and will attempt to beef uo its women's business next year with a broader product line and an extensive print campaign addressing women's issues to break in February magazines and continue through the year and beyond. Nike hopes to build relevance and market share with college females. Reebok stronghold in this area that has become like a stepchild recently, due to Nike's focus on and absolute domination of the teen market. Nike Women's concept shops are also showing up more in sporting goods, specialty and department stores across the country.

Chap.(7)- Targeting Markets

Nike's target market is still active people who enjoy high-quality sporting goods, especially footwear. The company targets top-line revenue growth to $23 billion by fiscal 2011 based on growth in its brand portfolio. It is up from $15 billion in fiscal 2006. Over the next five years, the company anticipates 75 percent of this growth will be made by the Nike brand and will be driven by a consumer defined category strategy. Nike focus on creating premium consumer experiences built on product innovation, brand leadership and elevated retail presence. Nike is targeting further geographic expansion and farther marketing penetration in all regions. Through disciplined operating management, the company still continues to target long-range mid-teen earnings per share growth.

Chap.(5) Consumer Decision Making

Nike always seem to sponsor the best athlete in each sport. In basketball they sponsor Lebron James and Kobe Bryant. In football they sponsor Adrian Peterson, baseball Alex Rodriguez, and in golf they sponsor tiger woods. This help buyers lean towards Nike then other sport brands. Consumers are more willing to buy from Nike because the athletes that are being endorse are on the top of their game. Buyers think that if they purchase a top athletes merchandise that they will inherit their attributes. This give Nike the upper hand on their competation.

Chap.(5)- Decision Making

The actions a person takes in purchasing and using products and services including the social processes that precede and go by certain aspects of buying. The costumers mind set helps answer questions. Questions like why people choose one product or brand over another. Also how do companies use this knowledge to provide value to the consumers. Nike knows that in the sports world they're the leading and top selling company. Nike has developed over the years allot of loyal customers that would buy their merchandise no matter what the price is. Nike still manage to put their products at reasonable prices.

Chap.(4)- Nike in China

Last year NBA myvp Lebron James was in China as part of his Nike-sponsored "world tour," highlighting youth and basketball activities. James was in Beijingl visiting schools for the children of migrant workers, as reported by ChinaDaily.com. Lebron told his listeners about his experiences and donated basketballs and scholarships, with the support of his sponsor, Nike.

Lebron said "You look at those migrant kids. They feel like their dreams are washing away. We want to help them to regain the belief that they can achieve anything they want to. That's the inspiration we have behind all of these things," said James, who is nicknamed "King James".
"Hopefully these kids can understand that they cannot only have a dream but also make it reality."

Chap.(4)- Global Vision

Nike has released several special China Edition Lebron signature shoes over the years. The last couple of years Nike haven't made any special Asia Exclusive or China Exclusive Lebron signature shoes. This year Nike Basketball ressurected the Lebron James China Edition signature shoe with a new Nike Air Max Lebron VII China Edition that was released on Saturday, October 3rd in China. The shoes feature a white and gold colors and various inspiration from Chinese culture including the Moon Cake Festival as well as Chinese characters that symbolize LBJ.

Chap.(3)- Nike Code of Ethics

Nike code of ethics for employees is called Inside the Lines. This defines the standards of conduct Nike expect from all their employees. Every year, Nike employees are required to verify that they have read and understand Inside the Lines. The company operates a global toll-free alert line for employees to report any suspected violations of their code of ethics. Anything bad reported concerns around accounting, auditing or internal control are sent to the Audit Committee of the Board. Nike also expect their suppliers to share their standards and to operate in a legal and ethical manner. While Inside the Lines covers the behavior of Nike employees, Nike has a Code of Conduct that covers contractors who manufacture Nike-branded products. It helps them to respect the rights of their employees, and to provide them with a safe and healthy work environment.

Chap.(3)- Social Resonsibility

On the day before World Aids day some of the world’s best soccer players joined Bono at an announcement of partnership between NIKE, Inc. The players that reach out for this event are Didier Drogba (Chelsea), Joe Cole (Chelsea), Andrei Arshavin (Arsenal), Marco Materazzi (Inter Milan), Denilson (Arsenal), Lucas Neill (Everton), Clint Dempsey (Fulham) and Seol Ki-Hyeon (Fulham). These players came together in London to announce a partnership between NIKE Inc. and RED. This one of a kind partnership delivers a strong approach to fight HIV/AIDS in Africa by delivering funds to support programs that offer education and medication. It also will harness the power of sport to engage youth around the world in the fight against AIDS in Africa.

Chap.(2)- Nike Competitive Advantages

Nike is a real competitive organization. Phil Knight (Founder and CEO) is sometimes quoted as saying that 'Business is war without bullets.' Nike has a healthy dislike for their competitors. Nike doesn't own any factories. Nike doesn't see the reason to tie up cash in buildings and manufacturing workers. This makes Nike a very lean organization. Nike strengths are research and development. Nike then manufacture wherever they can make at a high quality product for the lowest possible price. If prices rises and products can be made more cheaply some where else, Nike would move it's production.

Chap.(2)- Strategic Planning

Nike's goal is to be a company that surpasses all other companies in the athletic industry. Nike will maintain it's position by providing quality footwear, apparel and equipment to give an individual consumers of all ages and lifestyles. Nike pledge to make their products easily available worldwide through the use of retail outlets, mail order and our company web site. Nike’s management believes that it's success lies in the hands of teammates, customers, shareholders and the communities in which it operates. Nike vow to keep in mind with the execution of every decision within their company.