Nike Presentation

1. Strategic Analysis
Prepared By
Rati Kiria & Natia Tsutskiridze

2. Contents
Sales and Income Trends
Company Analysis
Environmental Analysis

3. Nike Inc. was founded in 1962
by Bill Bowerman and Phil
Knight as a partnership under
the name, Blue Ribbon Sports.
Their modest goal then was to
distribute low-cost, high-
quality Japanese athletic
shoes to American consumers
in an attempt to break
Germany's domination of the
domestic industry.

4. Revenues in the fiscal year ended May 31, 1999, declined by 8% over the prior
year to $8.777 billion. As illustrated in the graph below, this marked the first
time since 1994 that revenues have declined. Regardless of this year's
decline, Nike Inc. achieved 300% revenue growth over a 10-year period, rising
from 1990 sales of $2.235 billion.

5. Their primary product focus is athletic
footwear designed for specific-sport
and/or leisure use(s). They also sell
athletic apparel carrying the same In addition, we utilize the
trademarks and brand names as many following wholly-owned
of our footwear lines. Among their subsidiaries to sell additional
newer product offerings, they sell a line sports-related merchandise and
of performance equipment under the raw materials: Cole Haan Holdings
Nike brand name that includes sport Inc., Nike Team Sports, Inc., Nike
balls, timepieces, eyewear, skates, bats, IHM, Inc., and Bauer Nike Hockey
and other equipment designed for Inc. Our most popular product
sports activities. categories include the following:

6. Company Analysis
Board of Directors - Strength Board of Directors - Weakness
Nike’s board of directors consists of both The average age of Nike’s board is 62, the
management directors and independent youngest member being 49 and oldest being
directors. The combination of these two types 79. This constitutes a possible weakness in
of directors benefits Nike in that there is a that there is a lack of younger members of
presence of those directly involved with Nike the board who could serve to bring a new
as well as others indirectly involved who bring perspective to the company and assist in
outside experience, provide another frame of achieving Nike’s goals.
reference and can assist the overall board in
thinking "outside the box."

7. Internal – Strength External - Weakness
Nike’s management Nike’s failure to foresee
analyzes its internal problems in relation to
environment and labor and factory
makes decisions conditions at production
based on that locations has resulted in
analysis. Because of bad publicity and
Nike’s marketing declining sales as society
research, the and consumers call for
company has decided more "socially
to revamp its apparel responsible" companies.
division to be more
fashion savvy.

8. Thank You For Your Attention