Nike’s Planning And Organizing Essay

1145 words - 5 pages


Nike's planning and organizing began in 1962 when Phil Knight, an accounting student and middle distance runner at the University of Oregon, had an idea to bring low-priced, high-tech athletic shoes from Japan to dislodge German domination of the U. S. athletic footwear industry (Nike, 2007, p. 5). In 1972, Knight, along with Bill Bowerman, University of Oregon's track and field coach, formed a partnership and introduced Nike, a new brand of athletic footwear named for the Greek winged goddess of victory. Leading its employees and controlling or monitoring the company's worldwide operations, along with on-going planning and organizing as new goals are established, has made Nike, Inc. one of the largest sports and fitness company in the world.


When Nike first started selling in the foreign market in 1972, the company had to assess the economic trends of domestic and international markets during the planning stage. This would include the impact of the global market, technological advancements, and e-business which is rapidly growing. The planning and organizing process also has to be specific to the region where a new factory was to be built. For example, resources may be more available in the Nike Americas Region than in the Europe, Middle East, and Africa (EMEA) Region; government regulations may be stricter in the Asia Pacific Region.

To be successful in the leading or motivating process, Nike would have to assess a country's culture and economic status. For example, in Indonesia, the take-home pay averages $65 a month which does not seem like much to the U. S. worker, but this pay scale is almost double Indonesia's minimum wage of $34 a month. These wages also come with other benefits that include overtime and holiday bonuses, social security, free health care, free schooling, free clothing, at least one free meal a day, and sometimes free housing (Jenson, 2000, 1). In these countries where most of the population lives below the poverty line, Nike jobs are quite desirable. As with any global company, Nike's success depends on the controlling or monitoring of the progress of its manufacturing and sales of athletic footwear and athletic gear.

When one thinks of technology, computers or electronic games may come to mind. For Nike, technology refers to product technology; new innovations in footwear, apparel, and equipment. As fitness evolves, Nike's products are planned to give consumers a competitive edge and help athletes perform better. Each part of the manufacturing process is designed to accomplishing the goal of providing the world's best athletic gear. When Nike Air was introduced, it made a revolutionary impact on the sports world for its versatility. Beyond its basic function of impact protection, it can be shaped and tuned to meet the specific demands of contemporary athletes (Nike, 2007, 6). As Nike monitored athletes' needs, changes were...

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