business project one

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Business Project One
Demetrius Cohen
MGT/101
April Miller, Instructor
May 9, 2014

Business Project One
Purpose of Company
NIKE is a for profit Corporation (Nike, Inc. 2014). This company has reported their third quarter revenue for 2014 is at 7 billion dollars (Nike, Inc. 2014). Nike Inc. is the world leading innovator in athletic footwear , equipment, apparel, accessories, and services (Nike, Inc. 2014). The Company sells a line of performance equipment under the NIKE brand name, including bags, electronic devices, sport balls, eyewear, protective equipment timepieces socks, bats, gloves, golf clubs and other equipment designed for sports activities (Rueters, 2104). Consumer can purchase Nike products directly from outlet stores, online, or third party vendors. Nike World Headquarters is located on 200-acre of land in Beaverton, Oregon (Nike, Inc. 2014). Today the company operates in more than 160 countries and six continents around the globe. Bringing together 40,000+ employees worldwide, each make their own contributions to fulfilling Nike’s mission to bring inspiration and innovation to every athlete in the world (Nike, Inc. 2013). History of Samsung

In the 1950’s there was two with a vision that would pioneer a revolt in athletic footwear the redefine the industry (Nike, Inc. 2014). Bill Bowerman and Phil Knight had connections with the University of Oregon. Bowerman was the track and field coach while Knight competed for Bill’s track program (Nike, Inc. 2014). Bowerman was always looking for his athletes a competitive advantage. He tried different track surfaces, re-hydration drinks and most importantly running shoes (Nike, Inc. 2014). Knight earned a MBA in finance from Stanford University at that time Knight wrote letters to manufactures in Japan and Asia that proposed quality running shoes could be manufactured in Japan and compete whit more established German brands. His letters were ignored (Nike, Inc. 2014). Knight later persuaded a company from Japan who manufactured Tiger shoes to make him a distributer in the United States. (Nike, Inc. 2014). When Knight received his first set of shoe samples he sent Bowerman a few trying to make a sale but Bowerman had bigger ideas and offered to become Knights partner (Nike, Inc). The two shook hands and pledge $500 each to form the company Blue Ribbon Sports. Their first order was 300 pairs of shoes in January 1964 (Nike, Inc. 2014). Knight and Bowerman both had full time so they needed someone to manage the growing company. In 1965 they hired a man named Jeff Johnson who became a godsend to the company. Johnson did most of the marketing; he established a mail-order system and opened the first retail store located in Santa Monica, California (Nike, Inc. 2014). He also designed several Nike shoes and even invented the name Nike in 1971. At that Knight and Bowerman were ready to make the jump from being a distributer to designing and manufacturing their own brand of athletic shoes (Nike, Inc. 2014). In 1972 a graphic design student from Portland State University named Coralyn Davidson created the well-known brand mark the “Swoosh” (Nike, Inc. 2014). Now almost 40 years late Nike has become the leading innovator in all athletic supplies with a fiscal 2015 revenue target of 28-30 billion (Nike, Inc. 2014).

Form of Economic Environment
The economic environment that Nike operates in an oligopoly because there are not too many competitors in the shoe market. An oligopoly is a market structure in which a few firms dominate. When a market is shared between a few firms, it is said to be highly concentrated (Oligopoly, n.d. para. 1). Nike owns over 54 % of the shoe market. (Riper, 2013). While Addidas is a distant second at 8% (Riper, 2013). Role of Government with Company

Nike’s Commitment is to create extraordinary performance products for athletes while managing their business...
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