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

1. Nike, Inc. Strategic Analysis 2009 Jarryd Phillips, Jermaine West, Spencer Jacoby, Othniel Hyliger, Steven Pelletier

2. OVERVIEW 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

3. HISTORY

4. MAJOR MILESTONES • 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.

5. CURRENT VISION STATEMENT "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

6. CURRENT MISSION STATEMENT 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.

7. PROPOSED VISION STATEMENT To equip every athlete with products that combine performance, quality, and fashion.

8. PROPOSED MISSION STATEMENT 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

9. EXTERNAL ASSESSMENT

10. POSITIONING MAP High Performance Low Price High Price Low Performance

11. CPM MATRIX

12. OPPORTUNITIES • Creating sportswear that would incorporate recycled materials from their own production lines and other places. • Promotion as a fashionable wear, not just sportswear. • Growing segment of the female athletes. • International expansion into emerging markets – e.g.. India • Additional marketing of existing products to appeal to new demographic groups. • Develop new alliances with companies that are respected regarding social responsibility. • Brand reorganization by market regions

13. THREATS • High competitive industry • Failure to respond to market trends in timely manner could greatly affect financial position. • Production of counterfeit goods, and generic products. • Negative public perception created by environmental, child labor, contracted manufacturing issues, and sponsored athletes. • International currency changes could decrease profits. • Federal Trade regulations in dealing with foreign manufactures.

14. EFE MATRIX

15. INTERNAL ASSESSMENT

16. ORGANIZATIONAL CHART

17. 2009 INCOME STATEMENT

18. 2009 BALANCE SHEET

19. 2009 FINANCIAL RATIOS

20. FINANCIAL TRENDS

21. 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. • Diverse portfolio • Successful advertising campaigns. • Customer loyalty • Strong financial position • Strong international presence

22. 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

23. IFE MATRIX

24. STRATEGIC ASSESSMENT

25. SWOT MATRIX

26. SPACE MATRIX

27. GRAND STRATEGY MATRIX Rapid Market Growth Quadrant II Quadrant I Weak Competitive Market Strong Competitive Market Quadrant III Quadrant IV • Market Development • Market Penetration • Product Development • Forward Integration • Backward Integration • Horizontal Integration • Related Diversification Slow Market Growth

28. BCG MATRIX High 1.0 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 Low +25 +20 I II +15 Stars Question Marks +5 (4) 11% (3) 17% (1) 35% 0 IGR (2) 37% -5 Dogs Cash Cow -15 IV III -20 -25 Low

29. IE MATRIX High 3-4 EFE Medium 2-2.99 Low 1-1.99 Strong 3-4 Average 2-2.99 Weak 1-1.99 I F E

30. MATRIX ANALYSIS

31. QSPM

32. RECOMMENDATIONS

33. OBJECTIVES • 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.

34. STRATEGIC IMPLEMENTATION

35. PROJECTED INCOME

36. PROJECTED BALANCE SHEET

37. PROJECTED FINANCIAL RATIOS

38. EVALUATION

39. BALANCED SCORECARD

40. http://www.youtube.com/watch?v=4Uugz5Y7u6M

41. SOURCES • 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&dataset=incomeStatement&period=A&currency=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 13th Edition. Fred R. David.