Operational Improvements Nike Inc.

Transcription

1 Operational Improvements Nike Inc. Kevin Conrad, CEO Nike Inc. Contemporary Organizational Management November 6 th, 2009

2 As the new CEO of Nike Inc. it is my duty to research and determine what necessary changes and modifications are needed to ensure that Nike remains one of the most profitable and respected companies in the world. All companies have different strategies to make their company the best that it can be; the same is true for Nike Inc. It is important to look at all the parts of Nike to help find the best techniques that will make the continued growth possible. I will talk about such departments as Human Resources, Production, Marketing and Sales, Accounting, and Design and Development. It is very important for people to know that Nike Inc. is a part of the new generation that is always trying to help improve the environment and be a leading contributor to the education and success of our younger generation. It is because of this that Nike is always trying to develop a safer way of production and a development of new ways to keep the pollution down while still producing great shoes and apparel. It is also why Nike only supports and advertises celebrities and athletes who carry a good image. The first, and in many cases, the most important department at Nike Inc. is the Human Resources Department. HR can be considered the most important department because they are the people that hire, fire, and pay the employees of Nike. It is very imperative that the people in this department have a strong grasp on the type of employees that Nike Inc. is looking for when hiring. The last thing that anyone would want would be for someone who is completely unqualified to step into a position of high importance and jeopardize the success of the company. This includes, but is not limited to, hiring people whom one is friendly with just because they are unemployed and in need of a job. This shows poor ethics and it will not be tolerated. Everyone is responsible for the people that they hire. Having said this, it is true that

3 people makes mistakes and are usually deserving of a second chance. Therefore, it is important for management to clarify this with the employees so that they know my expectations. Showing employees that they are appreciated is another major part of Human Resource and Management. In the case of Nike Inc. even though the economy has been very bad, Nike has continued to grow. Four of the past five quarters have been the most profitable in Nike s history (Berman). Therefore, it is important that the hard-working employees see potential for raises and bonuses, starting with the entry-level employees and working all the way up but to the senior executives. Reimbursing employees for travel due to work is another very important part of HR. Not only will this relieve some of the stress due to the economy, it will show everyone that Nike Inc. is very happy and supportive of their employees. Accounting is another very important department to the success of Nike Inc. It is the accountant s jobs to make sure that all accounts are accurate to assure appropriate taxation and allocations and for up-to-the-minute sales forcasts. This is extremely vital to the success of Nike and its shareholders because publically stating the wrong numbers could make a company susceptible to tax and fraudulent penalties. Another problem is that if the numbers are wrong and Nike Inc. didn t make as much as was recorded, they would be paying more taxes than necessary and would, therefore, lose money. So the key improvement that I will be implementing in the accounting department is making sure that everyone is well trained and motivated to continue doing their job. Bringing in new accountants is another possible change that I will make because you can always use someone who is good with numbers. It is essential to have a checks and balances system in place.

4 Over the past 20 years, Nike Inc. has used some of the most famous celebrities and athletes to promote their shoes and equipment. Doing so is a great way to market your products and increase sales through advertising. Nike has perfected this and will continue to do so under my watch. Using athletes like Tiger Woods, LeBron James, Lance Armstrong, and Michael Jordan has helped Nike become the leader in athletic wear throughout the world (Wikipedia). Using these athletes as role models for the future of younger generations is Nike s main priority. It is important that Nike maintain great relationships with these athletes and different foundations to better promote their products while maintaining the belief that there are far more important things in life than being a great athlete; the ultimate goal is to be a great person. This is why Nike will not stand for promoting and advertising athlete s that do not show a good lifestyle and act as good role models for tomorrow s future. Whether or not you think Michael Vick is a good or bad person, Nike Inc. decided that he was not someone that they wanted to promote and have supporting their company. As the new Chief Executive Officer of Nike Inc. I will maintain this standard of excellence. There is such a thing as bad promotion and Michael Vick is a perfect example of it. He went from being one of the most beloved and favored athletes of his time, to having almost no supporters and being the most hated man in sports; all because of dog fighting. I will only be looking for celebrities and athletes that have the greater good of their communities in mind. When I take over as the CEO of Nike Inc. the first rule that I will be implementing is that any sponsored athlete is subject to drug tests on a random basis. I, as well as Nike, will not support athletes like Andre Agassi, who take part in recreational drug use and are a poor example of what champions are supposed to be. It is my main goal to make sure that only athletes that are good role models to the

5 community remain in the public image for Nike Inc. This policy extends to all Nike employees, not just our Athletic spokespeople. Having said all that, there are also ways to help increase the sales of Nike products. It is going to be crucial for the development and design department to work hand in hand with the marketing and sales department. It is my goal to be able to create new shoes and other products that are more eco friendly. Nike Inc. has already taken several steps in this process with their Air Pockets in shoes. Years ago Nike s plastic air pockets were filled with SF6, a strong greenhouse gas that was helping pollute the environment every time one would break. However, over the years Nike has worked hard to finally produce, 14 years later, a new plastic air pocket that is SF6-free (Holmes). This was a great success for Nike and it needs to continue over the next several years. To help do so, I hope to have the design and development teams figure out a new type of Styrofoam for the production of shoes that will be considered more green. Giving back to the community and our customers is also very practical. We will be slashing prices on several products to make it more affordable for people struggling to wear our brand. This will help us in the long run when the economy picks back up because past customers will remember who helped them out when they were hurting and in need, and they will, in turn, keep buying Nike s as a sense of brand loyalty. Nike has already started several programs to help with the environment; the creation of Reuse-A-Shoe Program has been making way and helping the environment by recycling old athletic shoes to be used in athletic facilities such as basketball courts, running tracks, and playgrounds. My goal is to continue in the process set forth by past CEO s at Nike Inc. to make Nike the most well respected athletic company in the world.

6 The final department that I will pursue is the production department. While many people think that the production of a product is the easiest step of a multi-step process, they are very wrong. While we may have robots today that have the potential to build anything, it is important to remember that without a production team nothing would actually get done and Nike Inc. would not make any money and over 30,000 people would be without a job. While most of our lowest paid employees do work in production, it is important to remember that they are working very hard to make sure that everything is getting done on time and within budget. By cutting the slightest thing, and increasing production, an employee could save Nike millions of dollars a year. This is why it is so important to always be looking for new and innovative ways of producing products. Something as simple as shutting the lights off for the hour it takes to eat lunch would greatly contribute to the overall success of Nike Inc. It is very critical to make sure that you are not doing anything extra that could slow down the production of a product. I, myself, and Nike Inc. will not stand for any laws being broken; whether in the United States or any other country that produces Nike products. I will take it upon my top executive team and myself to personally make sure that there are no child-labor laws being broken and that there are no sweat-shops producing Nike products. Nike Inc. has always been a company that showed strong ethical and moral principles and we will continue to do so under my watch. I know in the past Nike Inc. has taken heat from several different groups that have felt that laws had been broken, but I want to ensure people that I will not tolerate it any longer. How ethical is it to show commercials of athletes in the United States that have all this success and money and have numerous children in foreign lands producing these products for under minimum

7 wage? It is my belief that kids should get the education needed to fulfill their dreams, whatever they might be. Overall, there are several things that will be changing in the near future for the good of Nike Inc.. These include; considering bonuses and raises more frequently, reimbursing compensation for travel, improving and implementing new accounting processes, endorsing only role-model-type athletes for marketing, setting discounted prices of several products, creating newer ways to be eco-friendly, and creating a work environment in production that is based on principles and beliefs. It is my belief that with all these changes to Nike Inc. I will be able to create the next generation of Nike; a newer and better Nike with a focus on fiscal stability and a work force and customer base loyal to our products and our principles.

8 Sources: Berman, David. "Under the right circumstances, Nike could be a slam-dunk." The Globe and Mail 3 Oct. 2009, Sports Column sec. Print. Holmes, S. "Goes for the Green; after 14 years, it Figures out how to get Greenhouse Gas out of its Sneakers." Business Weekly 24 Mar Print. "List of Nike sponsorships -." Wikipedia, the free encyclopedia. Web. 04 Nov < "Nike, Inc. -." Wikipedia, the free encyclopedia. Web. 04 Nov <