Case Study - Nike

Today, Nike is based in Oregon in the United States.  They have over 29,000 direct employees around the world, but this is really no indication of the true number of people employed due to business generated by Nike.  It is estimated that a further 650,000 people are employed in the manufacture of Nike products.  It should be noted, however, that this work is completed by companies which are under contract to Nike – they are not actually employees of the business. 

The simple beginnings of the company which were outlined on the previous page disguise the complex structure which is in operation today.  Nike is an enormous company which has grown from annual sales of US$8,000 in 1962 to the US$15 billion that it earns today.  After starting out importing shoes from one manufacturer, today they organise for the production of a complete line of sporting apparel; from shoes to ice skates, and from track suits to team jerseys. 

The company is owned by public shareholders, as it was floated on the New York Stock Exchange in 1980.  The day to day operation of the business is managed by a board of directors.  After Bill Bowerman passed away in 1999, Phil Knight became the chief executive officer.  Today, he remains important in the running of the company, but the position of CEO has been adopted by Mark Parker.  The administrative arm of the company operates on 178 acres in Oregon in the United States.  There are sixteen key buildings in this expansive set up, and each one is named after a key athlete who helped to make the Nike brand what it is today. 

In addition to the Nike brand, the company has also managed to acquire some other brands of sporting apparel.  For example, the Converse brand is owned by Nike, and so are the Starter and Team Starter brands. 

There are over seven hundred factories around the world that are exclusively licensed to produce Nike products.  These factories are not formally part of the Nike company structure, because they operate under contract conditions.  On the other hand, there are over 29,000 people all over the world who are directly employed by Nike.  These people are involved in the distribution, warehousing, display and sales of Nike products in many countries. 

The company is very proud of the fact that it has received numerous awards over an extended period of time.  In both 2006 and 2007, Nike was named one of the top one hundred employers in the United States by Fortune Magazine.  In 2004, 2005 and again in 2006, Nike was recognised as the best company for people who like to catch public transport to work.  Aligned with this, in 2007, the World Wildlife Fund commended Nike for reducing their carbon dioxide emissions to 13% below their 1998 levels.  Also in 2007, Nike was recognised as one of the best places to work for gay, lesbian and bisexual employees.  The list is far more extensive than is suggested here; Nike is a very well regarded company.

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