Nike, Inc. Strategic Analysis 2009

Jarryd Phillips, Jermaine West, Spencer Jacoby, Othniel Hyliger, Steven Pelletier

HISTORY MAJOR MILESTONES CURRENT VISION & MISSION STATEMENTS PROPOSED VISION & MISSION STATEMENTS

EXTERNAL ASSESSMENT

POSITIONING MAP CPM MATRIX OPPORTUNITIES & THREATS EFE MATRIX

INTERNAL ASSESSMENT

ORGANIZATIONAL CHART 2009 INCOME STATEMENT 2009 BALANCE SHEET CURRENT FINANCIAL RATIOS FINANCIAL TRENDS STRENGTH & WEAKNESSES IFE MATRIX

STRATEGIC ASSESSMENT

SWOT MATRIX SPACE MATRIX GRAND STRATEGY MATRIX BCG MATRIX IE MATRIX MATRIX ANALYSIS QSPM RECOMMENDATIONS OBJECTIVES

STRATEGIC IMPLEMENTATION

PROJECTED INCOME STATEMENT PROJECTED BALANCE SHEET PROJECTED FINANCIAL RATIOS

EVALUATION

BALANCED SCORECARD

SOURCES QUESTIONS

2

3

• • • • • • • • • • • • 1970- The Swoosh first appears on a football/soccer cleat called the Nike.

1978- Tennis "bad boy" John McEnroe is signed by Nike to an endorsement contract.

1989- Nike enters the European football market 1994 +2003- Nike wins Advertiser of the Year at the Cannes Advertising Festival.

1996- Nike signs Tiger Woods 1999- Bill Bowerman, co-founder of Nike, dies on Dec. 24 at age 88.

2002- Nike purchases Hurley International 2003- Nike acquires once-bankrupt rival Converse for $305 million 2004- Phil Knight steps down as CEO and President of Nike, but continues as chairman 2005- Nike Signs Tennis Pro Rafael Nadal.

2006- Nike and Apple release the Nike+iPod sports kit 2008- Nike sells its Nike Bauer hockey equipment division & purchases Umbro.

4

"To bring inspiration and innovation to every athlete in the world"

If you have a body, you are an athlete.

Nike co-founder Bill Bowerman 5

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.

6

To equip every athlete with products that combine performance, quality, and fashion.

7

At Nike, we desire to deliver superior products to customers and athletes that are both safe and dependable (1, 2 and 6). Our well trained employees and experienced executives will ensure a competitive advantage for our markets, growth for the company, and profits for our shareholders (5). Our commitment to social responsibility and the communities in which we operate will ensure business relationships and alliances for the future and a perception of concern with our stakeholders (6, 8). We will continue to utilize innovation and technology to provide our employees with the best possible work environment while adapting to the many changes in the global market (3, 4, 7, and 9).

1. Customers 2. Products or services 3. Markets 4. Technology. 5. Concern for survival, growth, and profitability 6. Philosophy 7. Self-concept 8. Concern for public image 9. Concern for employees

8

9

Low Price High Performance Low Performance High Price 10

Critical Success factors Weights

Advertising Product Quality Price Competitiveness Management Financial Position Customer Loyalty Global Expansion Market Share Brand Endorsement Deals Portfolio Diversification Product Placement Research & Development

Totals 0.0 to 1.0

0.10

0.08

0.08

0.06

0.08

0.05

0.05

0.08

0.09

0.10

0.08

0.09

0.06

1.00

Rating

NIKE

Weighted Score 1 to 4

3 4 2 3 4 3 3 4 4 4 3 3 3 0.30

0.32

0.16

0.18

0.32

0.15

0.15

0.32

0.36

0.40

0.24

0.27

0.18

3.35

ADIDAS

Rating Weighted Score 1 to 4

4 3 3 4 3 2 4 2 3 3 4 2 4 0.40

0.24

0.24

0.24

0.24

0.10

0.20

0.16

0.27

0.30

0.32

0.18

0.24

3.13

Rating 1 to 4

3 2 1 2 1 1 2 1 1 3 2 1 1

PUMA Weighted Score

0.20

0.16

0.08

0.12

0.08

0.05

0.10

0.08

0.09

0.30

0.16

0.09

0.06

1.57

11

1. Creating sportswear that would incorporate recycled materials from their own production lines and other places.

2. Promotion as a fashionable wear, not just sportswear.

3. Growing segment of the female athletes.

4. International expansion into emerging markets – e.g.. India 5. Additional marketing of existing products to appeal to new demographic groups.

6. Develop new alliances with companies that are respected regarding social responsibility. 7. Brand reorganization by market regions 12

1. High competitive industry 2. Failure to respond to market trends in timely manner could greatly affect financial position. 3. Production of counterfeit goods, and generic products.

4. Negative public perception created by environmental, child labor, contracted manufacturing issues, and sponsored athletes. 5. International currency changes could decrease profits.

6. Federal Trade regulations in dealing with foreign manufactures.

13

External Opportunities

1. Creating sportswear that would incorporate recycled materials from their own production lines and other places.

2.

3.

4.

Promotion as a fashionable wear, not just sportswear.

Growing segment of the female athletes.

International expansion into emerging markets – e.g. India 5.

Additional marketing of existing products to appeal to new demographic groups.

6.

Develop new alliances with companies that are respected regarding social responsibility. 7.

Brand reorganization by market regions 0.05

0.06

0.08

0.12

0.07

0.06

0.07

1.

External Threats

High competitive industry 0.14

2.

Failure to respond to market trends in timely manner could greatly affect financial position. 6.

Federal Trade regulations in dealing with foreign manufactures.

0.09

3.

Production of counterfeit goods, and generic products.

0.06

4.

Negative public perception created by environmental, child labor, contracted manufacturing issues, and sponsored athletes. 0.09

5.

International currency changes could decrease profits.

0.06

0.05

Totals 1.00

3 2 3 4 2 1 2 4 4 2 3 2 2 0.15

0.12

0.24

0.48

0.14

0.06

0.14

0.56

0.36

0.12

0.27

0.12

0.27

3.03

14

15

Gary M. Destefano President of Global Operationsitle Hans van Alebeek Vice President, Global operations & Technology Donald W. Blair Vice President and CFO David J. Ayre Vice President Global Human

Resoursces

Philip H. Knight Chairman of the Board Mark G. Parker CEO and President Ronald D. McCray Vice President Chief Administrative office r Bernard F. Pliska Vice President Corporate Controller Trevor Edwards Vice President Global Brand & Category Management Charles D. Denson President Nike Brand President Affiliates John Slusher Vice President Global

Sports Marketing

Lewis L. Bird III

Eric D. Sprunk Vice President Global Footwear 16

(In millions, except per share data) Revenues Cost of sales Gross margin Selling and administrative expense Restructuring charges (Note 16) Goodwill impairment (Note 4) Intangible and other asset impairment (Note 4) Interest income, net (Notes 1, 7 and 8) Other (income) expense, net (Notes 17 and 18) Income before income taxes Income taxes (Note 9) Net income Basic earnings per common share (Note 12) Diluted earnings per common share (Note 12) Dividends declared per common share 2009 Year Ended May 31 2008 2007 $ 19,176.10 $ 10,571.70 $ 8,604.40 $ 6,149.60 $ 195.00 $ 199.30 $ 202.00 $ (9.50) $ (88.50) $ 1,956.50 $ 469.80 $ 1,486.70 $ 3.07 $ 3.03 $ 0.98 $ 18,627.0 $ 10,239.6 $ 8,387.4 $ 5,953.7 $ $ $ $ (77.1) $ 7.9 $ 2,502.9 $ 619.5 $ 1,883.4 $ 3.80 $ 3.74 $ 0.875 $ 16,325.9 $ 9,165.4 $ 7,160.5 $ 5,028.7 $ $ $ $ (67.2) $ (0.9) $ 2,199.9 $ 708.4 $ 1,491.5 $ 2.96 $ 2.93 $ 0.71 17

ASSETS Current assets: Cash and equivalents Short-term investments Accounts receivable, net (Note 1) Inventories (Notes 1 and 2) Deferred income taxes (Note 9) Prepaid expenses and other current assets Total current assets Property, plant and equipment, net (Note 3) Identifiable intangible assets, net (Note 4) Goodwill (Note 4) Deferred income taxes and other assets (Notes 9 and 18) Total assets LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Current portion of long-term debt (Note 8) Notes payable (Note 7) Accounts payable (Note 7) Accrued liabilities (Notes 5 and 18) Income taxes payable (Note 9) Total current liabilities Long-term debt (Note 8) Deferred income taxes and other liabilities (Note 9) Commitments and contingencies (Notes 15 and 18) Redeemable Preferred Stock (Note 10) Shareholders’ equity: Common stock at stated value (Note 11): Class A convertible — 95.3 and 96.8 shares outstanding Class B — 390.2 and 394.3 shares outstanding Capital in excess of stated value Accumulated other comprehensive income (Note 14) Retained earnings Total shareholders’ equity Total liabilities and shareholders’ equity 2009 (In millions) May 31, 2008 $ 2,291.10 $ 1,164.00 $ 2,883.90 $ 2,357.00 $ 272.40 $ 765.60 $ 9,734.00 $ 1,957.70 $ 467.40 $ 193.50 $ 897.00 $ 13,249.60 $ 2,133.90 $ 642.20 $ 2,795.30 $ 2,438.40 $ 227.20 $ 602.30 $ 8,839.30 $ 1,891.10 $ 743.10 $ 448.80 $ 520.40 $ 12,442.70 $ 32.00 $ 342.90 $ 1,031.90 $ 1,783.90 $ 86.30 $ 3,277.00 $ 437.20 $ 842.00 $ $ 0.3 $ 0.1 $ 2.7 $ 2,871.40 $ 367.50 $ 5,451.40 8693.1

$ 6.30 $ 177.70 $ 1,287.60 $ 1,761.90 $ 88.00 $ 3,321.50 $ 441.10 $ 854.50 $ $ 0.3 $ 0.1 $ 2.7 $ 2,497.80 $ 251.40 18 $ 5,073.30 7825.3

Liquidity Ratios Current Quick Leverage Ratios Debt to total assets Debt to equity Long-term debt to equity Times-interest-earned ratio Activity Ratios Fixed Assets Turnover Total Assets Turnover Inventory Turnover Profitability Ratios Gross profit margin Operating profit margin Net profit margin Return on assets Return on equity Price-earnings ratio EPS Growth Ratios Sales Growth% Net Income Growth% Earnings per share Growth% Dividends per share Growth% 2.97

2.25

0.06

0.09

0.05

61.06

9.8

1.45

8.14

0.45

0.13

0.08

0.11

0.17

18.83

3.03

3 Years 0.28226

0.06803

-0.4261

-0.1695

19

Date May-09 Sales EBIT 19.18 Bill 1.96 Bill DEPRECIATION 347.00 Mill May-08 18.63 Bill 2.50 Bill 312.80 Mill May-07 May-06 May-05 16.33 Bill 14.95 Bill 13.74 Bill 2.20 Bill 2.14 Bill 1.86 Bill 279.60 Mill 291.80 Mill 266.50 Mill TOTAL NET INCOME 1.49 Bill 1.88 Bill 1.49 Bill 1.39 Bill 1.21 Bill LONG TERM DEBT 437.20 Mill 441.10 Mill 409.90 Mill 410.70 Mill 687.30 Mill 20

1. Recognized brand name – ‘Swoosh’ is ubiquitous 2. Strong in research and development – innovative product development 3. Strong marketing campaign - sponsors top athletes. Marketing practices enables them to expand the athletic market. 4. Diverse portfolio 5. Successful advertising campaigns.

6. Customer loyalty 7. Strong financial position 8. Strong international presence

21

1. Products are highly priced 2. Revenues are still mostly dependent upon footwear sales 3. History for violations of minimum wages, child labor and over times in its manufacturing countries.

4. Little control over quality of products from 3

rd

party contractors 5. Anti-globalization groups 6. Price sensitivity of products

22

Internal Strengths

Recognized brand name – Swoosh is ubiquitous Strong in research and development – innovative product development Strong marketing campaign - sponsors top athletes. Marketing practices enables them to expand the athletic market A very professionally competitive company Diverse portfolio Successful advertising campaigns Customer loyalty Strong financial position Strong international presence

Internal Weaknesses

Products are highly priced Revenues are still mostly dependent upon footwear sales History for violations of minimum wages, child labor and over times in its manufacturing countries.

Little control over quality of products from 3rd party contractors Anti-globalization groups Price sensitivity of products

Totals

0.10

0.07

0.09

0.08

0.08

0.09

0.06

0.09

0.10

0.06

0.05

0.06

0.05

0.04

0.06

1.00

4 3 2 1 2 2 4 3 3 4 3 4 4 2 2 0.40

0.21

0.36

0.24

0.24

0.36

0.18

0.36

0.4

0.12

0.10

0.12

0.05

0.08

0.12

3.10

23

24

SO Strategy - S1, O2, O3: The swoosh is so well known that recycled materials and fashionable lines of clothing would definitely create a whole new dimension for Nike.

- S3, O3, O4: With some of the most recognizable and followed athletes globally, expanding into places like India and forming alliances with different kinds of sports leagues will be a viable strategy to expand.

- S5, O6, O7: Use the company`s successful competitiveness and alliances to reorganizing the brand name and appeal to new/ different demographic groups.

WO Strategy - W1, W2, O1, O2:Creating sportswear and even fashionable wear from recycled materials, would be an opportunity to sell products at a lower cost.

- W4, O4: Use 3rd party contractors to manufacture cheap/ lower cost products in order to appeal to the group of consumers who end up buying generic products, because official merchandise is too expensive.

ST Strategy - S3, S9, T1, T2: Nike is well known for some of the athletes that it endorses, as well as its international presence, which will help maintain and attract customers even if there are high prices and challenging economic times, as long as it remains at the forefront of market trends.

- S6, S7, T3: The quality of material throughout Nike`s diversified portfolio, may be able to help combat counterfeit goods and generic products. Especially now that many consumers associate cost with quality.

WT Strategy - W3, W5, T4, T5: Due to Nike`s history of low labor wages to the thousands of factory workers, a recession may spell the end of many jobs and the production of many more important products. Improving the working conditions and pay of its factory workers is an ideal strategy to prevent such circumstances.

25

Financial Strength

1 Liquidity 2 Leverage 3 Working capital 4 Return on assets 5 Return on equity 6 Price per earnings 7 Earnings per share rating is 1 (worst) to 6 (best)

Industry Strength

1 Profit potential 2 Extent Leveraged 3 Economies of scale 4 Growth potential rating is 1 (worst) to 6 (best) 5 Financial stability 6 Resource utilization 7 Diverse Portfolio

Environmental Stability

rating is -1 (best) to -6 (worst) 1 Price range of competing products 2 Competitive pressure 3 Ease of exit from market 4 Successful and recognized advertising 5 Endorsement agreements 6 Price elasticity of demand 7 Risk involved in business

Competitive advantage

1 Market share rating is -1 (best) to -6 (worst) 2 Global presence 3 Strong investor reputation 4 Technological innovation 5 Product life cycle 6 Customer loyalty 7 Control over suppliers and distributors FS Total IS Total ES Total CS total 37.0

-2.0

-2.0

-1.0

-1.0

-1.0

-1.0

-1.0

-9.0

-1.0

-1.0

-1.0

-1.0

-2.0

-1.0

-3.0

-10.0

Ratings 6.0

6.0

6.0

4.0

4.0

6.0

5.0

37.0

6.0

5.0

5.0

5.0

6.0

5.0

5.0

ES average CA average IS average FS average X Coordinate Y Coordinate Strategy ->>>> -1.29

-1.43

5.29

5.29

3.86

4.00

Aggressive 26

Rapid Market Growth Quadrant II Quadrant I Weak Competitive Market Quadrant III o o o o o o o Market Development Market Penetration Product Development Forward Integration Backward Integration Horizontal Integration Related Diversification Slow Market Growth Quadrant IV Strong Competitive Market 27

IGR High +25 +20 +15 +5 (3) 17% 1.0 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1

Stars (4) 11% II I Question Marks (1) 35% 0 -5 -15 -20 -25 Low (2) 37% Cash Cow III Dogs IV Divisions (1) U.S.

(2) AMEA (3) Asia Pacific (4) Americas Total Revenue 6,542.9

5,512.2

3,322.0

1,284.7

16,661.8

% Revenue 39% 33% 20% 8% 100% Profits 837.2

877.1

394.6

263.6

2,372.5

% Profits 35% 37% 17% 11% 100% RMSP 1 1 1 1 IG Rate% 1.20% -2.20% 2.70% 1.20% 0 Low 28

High 3-4 E F E Medium 2-2.99

Low 1-1.99

Strong 3-4 Average 2-2.99

I F E Weak 1-1.99

29

Alternative Strategies Forward Integration Backward Integration Horizontal Integration Market Penetration Market Development Product Development Related Diversification Unrelated Diversification Horizontal Diversification Joint Venture Retrenchment Divestiture Liquidation IE x x x x x x SPACE x x x x x x x x GRAND x x x x x x x BCG x x x x x x x x x Count 4 4 4 4 4 4 2 1 1 1 1 30

Key factors External

Create products from recycled materials Promotion as a fashionable wear, not just sportswear.

Growing segment of the female athletes International expansion into emerging markets - India Add. marketing of existing prod - appeal to new groups New alliances with co. respected for social responsibility Brand reorganization by market regions High competitive industry Failure to respond to market trends in timely manner Negative public perception Federal Trade regulations with foreign manufactures International currency changes could decrease profits Production of counterfeit goods, and generic products total should be 1.0

Internal

Recognized brand name – Swoosh is ubiquitous Strong in research and development/innovation Strong marketing campaign/sponsors top athletes Diverse portfolio Successful advertising campaigns Customer loyalty Strong financial position Strong international presence Products are highly priced Revenues still mostly dependent upon footwear sales Violations for wages and child labor in manuf. countries Little control over quality of prod. from 3rd party contract.

Anti-globalization groups Price sensitivity of products total should be 1.0

Weight 0.1

0.07

0.08

0.12

0.1

0.06

0.06

0.08

0.06

0.06

0.08

0.07

0.06

1 0.1

0.09

0.08

0.09

0.07

0.07

0.08

0.08

0.06

0.05

0.06

0.06

0.05

0.06

1 1 to 4 4 4 2 1 1 3 2 4 1 3 2 3

Market Expansion

AS TAS 1 to 4 3 3 4 3 3 4 4 4 2 3 0.3

0.21

0.48

0.3

0.18

0.24

0.32

0.32

0.14

0.18

0.4

0.36

0.16

0.09

0.07

0.21

0.16

0.32

0.06

0.15

0.12

0.18

4.95

1 to 4 3 2 1 3 2 2 3 3 2 2 3 2

Prod/Recycle/Materials

AS TAS 1 to 4 2 1 2 2 2 1 3 3 4 2 0.2

0.07

0.24

0.2

0.12

0.06

0.24

0.32

0.32

0.12

0.3

0.18

0.08

0.27

0.14

0.14

0.24

0.24

0.12

0.1

0.18

0.12

4 1 to 4 2 3 3 2 3 1 4 1 3 1 1 1

Add. Sports Accessories

AS TAS 1 to 4 4 2 1 4 1 2 2 2 3 1 0.4

0.14

0.12

0.4

0.06

0.12

0.16

0.16

0.21

0.06

0.2

0.27

0.24

0.18

0.21

0.07

0.32

0.08

0.18

0.05

0.06

0.06

0 31

Open a new Nike Super store in each of India’s largest cities: Mumbai, Delhi, and Bangalore at $5 million per store.

Sign an endorsement bat sponsorship deal with Sachin Tendulkar, India’s biggest cricket star to a multi-year contract. The terms include apparel, footwear, and his own name brand. The deal is worth $30 million over 3 years.

Invest $500 million in India that will increase revenue by 4.5% through product development, market development, and market penetration in the next 3 years.

Invest $235 million in R&D and manufacturing contracts over the next 3 years. Invest $220 million on marketing and advertisement over the next 3 years. 32

• To continue being the world leader in sports equipment and apparel.

• To complete brand reorganization within market regions that will lower cost of sales. • To create sportswear that would incorporate recycled material.

• To develop new alliances with companies who are well respected regarding social responsibility.

• To invest in additional marketing of existing products that will appeal to new demographic groups.

• To promote products as fashion wear, not just sportswear.

33

34

Year Ended May 31 2009 (In millions, except per share data) Revenues Cost of sales Gross margin $ 19,176.10 $ 10,571.70 $ 8,604.40 Selling and administrative expense Restructuring charges (Note 16) Goodwill impairment (Note 4) Intangible and other asset impairment (Note 4) Interest income, net (Notes 1, 7 and 8) Other (income) expense, net (Notes 17 and 18) Income before income taxes Income taxes (Note 9) Net income Basic earnings per common share (Note 12) Diluted earnings per common share (Note 12) Dividends declared per common share $ 6,149.60 $ 195.00 $ 199.30 $ 202.00 $ (9.50) $ (88.50) $ 1,956.50 $ 469.80 $ 1,486.70 $ 3.07 $ 3.03 $ 0.98 Projected 2010 $ 19,463.74 $ 10,730.28 $ 8,733.47 Forecasted 1.5% revenue increase.

1.5% increase. $ 6,351.95 $ $ 50.00 $ $ (9.50) $ (88.50) $ 2,429.52 3.3% increase from previous year.

$ 583.08 $ 1,846.43 $ 3.20 $ 3.16 $ 1.00 Based on 24% from 2009 35

Current assets: Cash and equivalents Short-term investments Accounts receivable, net (Note 1) ASSETS Inventories (Notes 1 and 2) Deferred income taxes (Note 9) Prepaid expenses and other current assets Total current assets Property, plant and equipment, net (Note 3) Identifiable intangible assets, net (Note 4) Goodwill (Note 4) Deferred income taxes and other assets (Notes 9 and 18) Total assets LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Current portion of long-term debt (Note 8) Notes payable (Note 7) Accounts payable (Note 7) Accrued liabilities (Notes 5 and 18) Income taxes payable (Note 9) Total current liabilities Long-term debt (Note 8) Deferred income taxes and other liabilities (Note 9) Commitments and contingencies (Notes 15 and 18) Redeemable Preferred Stock (Note 10) Shareholders’ equity: Common stock at stated value (Note 11): Class A convertible — 95.3 and 96.8 shares outstanding Class B— 390.2 and 394.3 shares outstanding Capital in excess of stated value Accumulated other comprehensive income (Note 14) Retained earnings Total shareholders’ equity Total liabilities and shareholders’ equity Year Ended May 31, 2009 $ 2,291.10 $ 1,164.00 $ 2,883.90 $ 2,357.00 $ 272.40 $ 765.60 $ 9,734.00 $ 1,957.70 $ 467.40 $ 193.50 $ 897.00 $ 13,249.60 $ 32.00 $ 342.90 $ 1,031.90 $ 1,783.90 $ 86.30 $ 3,277.00 $ 437.20 $ 842.00 $ $ 0.30 $ 0.10 $ 2.70 $ 2,871.40 $ 367.50 $ 5,451.40 $ 8,693.10 $ 13,249.60 Projected 2010 $ 2,163.80 $ 1,164.00 $ 2,976.18 $ 2,628.00 $ 272.40 $ 900.00 $ 10,104.38 $ 1,972.70 $ 467.40 $ 95.00 $ 977.56 $ 13,617.04 Minus $161.67 in investment.

3.2% previous Influenced by the cricket line Plus $15 million for three new stores.

$ 6.90 $ 375.00 $ 1,051.50 $ 1,783.90 $ 90.00 $ 3,307.30 $ 405.20 $ 872.71 $ 0.30 Less portion of $32.0

$ 0.10 $ 2.70 $ 2,995.40 $ 367.50 $ 5,665.83 $ 9,031.53 $ 13,617.04 36

Liquidity Ratios Current Quick Leverage Ratios Debt to total assets Debt to equity Long-term debt to equity Times-interest-earned ratio Activity Ratios Fixed Assets Turnover Total Assets Turnover Inventory Turnover Profitability Ratios Gross profit margin Operating profit margin Net profit margin Return on assets Return on equity Price-earnings ratio EPS Growth Ratios Sales Growth% Net Income Growth% Earnings per share Growth% Dividends per share Growth% 2009 2.97

2.25

0.06

0.09

0.05

48.55

9.8

1.45

8.14

0.45

0.1

0.08

0.11

0.17

18.83

3.03

3 Years 0.28226

0.06803

-0.4261

-0.1695

Projected 2010 3.06

2.26

0.06

0.09

0.04

65.66

9.87

1.43

7.41

0.45

0.12

0.09

0.14

0.20

17.83

3.20

1 Year 1.50

24.20

4.23

2.04

37

38

Area of Objectives Customers

1. Customer satisfaction

Measure

Customer and online surveys 2. Customer Loyalty 3. Accessibility Product and purchasing reviews. Memberships and number of returning and new customers.

Open more stores in various countries.

Managers/Employees

1. Improve working conditions 2. Improve employee training Increase in productivity, employee surveys.

Increase in productivity and overall operating efficiency Community/Social Responsibility 1. Business Ethics 2. Environmentally Friendly 3. Community involvement Endorse positive role model athlete`s. Increase promotion of sports and wellness.

Recycle materials, improve reputation and customer perspective.

Run local sports camps, community/ city events- increase customer awareness.

Operations/ Processes

1. Improve Brand Image 2. Product Innovation 3. Market Penetration Increase in sales and customer recommendations.

Number of new stores, products and marketing Number of stores and sales in new/ other countries

Financial

1. Reduce Cost of production Decrease in production expenses.

2. Increase Revenue Increase in annual sales

Time Expectation

Quarterly Quarterly Biannually- Annually Quarterly Quarterly Annually Biannually Biannually Quarterly Quarterly Annually Annually Annually

Primary Responsibility

Managers/ Marketing Marketing Marketing CEO Human Resources CEO CEO Regional Managers CEO CEO/ Marketing Marketing CFO CFO 39

• http://www.youtube.com/watch?v=4Uugz5Y7 u6M

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• • • • • • • • • • • • • • • http://investors.nikeinc.com/Investors/Financial-Reports-and-Filings/Annual-Reports/default.aspx

http://investors.nikeinc.com/Theme/Nike/files/doc_financials/AnnualReports/2009/docs/Nike_2009 _10-K.pdf

http://investors.nikeinc.com/Theme/Nike/files/doc_financials/AnnualReports/2006/docs/10k.pdf

http://investing.businessweek.com/research/stocks/financials/financials.asp?ticker=NKE:US&data set=incomeStatement&period=A¤cy=native http://finance.yahoo.com/q/is?s=NKE+Income+Statement&annual http://www.nike.com/nikeos/p/nike/en_US/?&ref Datamonitor.com – UMFK library sites http://en.wikipedia.org/wiki/List_of_most_populous_cities_in_India www.yahoofinance.com

https://materials.proxyvote.com/Approved/654106/20090724/AR_44240/HTML2/default.htm

http://en.wikipedia.org/wiki/Nike_timeline http://nikeinc.com/pages/history-heritage http://investing.money.msn.com/investments/financial-statements?symbol=NKE http://www.nike.com/nikeos/p/nike/en_IN/store_locator Strategic Management Concepts and Cases 13 th Edition. Fred R. David.

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