Garrett Moschel, Dane Robinson, Will Murphy, Timmothy Less

Business Pathways
12 October 2016

Nike Inc.
Nike Incorporated was founded as Blue Ribbon Sports in 1964 by track and field coach
Bill Bowerman and Phil Knight, a long distance runner. They specialize in making athletic
products from sportswear, shoes, socks, balls, sports utilities, etc. It is by far the worlds largest
athletic product brand bringing in $24.1 billion in revenue this past fiscal year. Nikes popularity
has come about from many luxurious endorsement deals with popular athletes to promote their
products. These athletes include Michael Jordan, Lebron James, Kobe Bryant, Serena Williams,
and many more. Despite their success, Nike is constantly finding ways to innovate their products
and workplace to keep up with the ever-changing world.
Nike has shown it has a spectacular area of character in the business world. In terms of
PACE, character in businesses is shown by an understanding of diversity and leadership. Nike is
well-known for having one of the most diversified workforces in the world. A recent study by
Fortune.com states that minorities have taken over as the majority of employees. According to
Mark Parker, Nikes CEO, diversity fosters creativity and accelerates innovation. Diversity is
definitely valued at Nike, where African-Americans make up 21 percent of the staff, Asians
make up 7 percent, Hispanics make up 18 percent, while Pacific Islanders make up around 2
percent of the staff. Whites are only at 48 percent of the staff which makes them a minority
(Kell). Women made up 48 percent of the staff, which shows their dedication to closing the
gender gap that exists in sports. Nike has also stated, To serve every athlete individually and

completely, we need teams that reflect the diversity of our consumers and a culture of inclusivity
that respects the communities in which we live and work. Nikes commitment to creating
diversity in their company is a huge advantage because with a global economy, they can get
more ideas regarding buying behavior among international consumers.
Moreover, there is still room for improvement. Women only hold 41 percent of
management positions while men hold the remaining percentage. Eleven of the board members
are white, a number that could be improved significantly. This is a nationwide trend as 80
percent of the nations leadership positions are held by whites (Kell). Despite these facts, Nike is
still ahead of their competition. Under Armour, a lead competitor, has ten board members, all of
whom are white men. Nike recognizes diversity brings positive progress, and although they
could still see growth in this area, they have established themselves as an industry leader.
Nike is characterized as one of the most dominant companies in the sports and athletics
industry. Nike has been a powerhouse that has shown significant growth as a company. Some
factors that have led to Nikes strong growth trajectory are improving labor and employee
practices, improving the product mix, and increasing presence in developing countries. By doing
these three things, Nike can continue to their successful business model. Although Nike has been
at the top of its industry the past few years with its strong growth, there are reasons to expect a
decline in the near future. One reason for this decline is the intense competition from Adidas and
Under Armour. Both of these companies have signed famous celebrities and athletes such as
Kanye West and Stephen Curry. Another reason for decline is basketball itself is losing strength,
and that industry is such a key market for Nike (Schlossberg). Company reports show that
basketball shoes were down one percent which may not seem like a lot, but basketball accounts

for twelve to fourteen percent of all of Nike's business. These factors may not guarantee a
decline, but the possibility is present.
At Nike, they strive for employee development. Nike gives their employees many
opportunities to sharpen their skills, push limits, and uncover their full potential. They can cause
these reactions by inspiring their employees to constantly innovate and stand on top. Nike offers
many benefits that match employees locations and positions to generate a strong bond to its
workers. The climate at Nike is positive and electric, stimulating employee growth. Innovation is
Nikes biggest goal. They inspire their employees to innovate new products for athletes around
the world, greatly impacting the professional aspect of their company, and showing a new level
of engagement to their employees.
Nikes characteristics really stand out compared to other athletic companies. Employees
at Nike are strongly committed and engaged in what they do. They want their entire workforce to
be talented so innovation is not a problem. They also want a diverse workforce to generate
creativity, brand image, and a competitive advantage. Finally, Nike wants themselves and their
employees to be inclusive to minimize problems with business operations (Young). All of these
characteristics are a must to work at Nike and they create their companys image as being one of
the best in the business.
The role of a Nike employee is determined by ones level of education. As a high school
student (at least the age of 16) or high school graduate, a potential employee will be able to
secure positions in the company such as Sales Associate, Specialist, Department Manager, etc.
There are other positions in the company held by interns, however, the positions require a higher

level of education (Nike). Nike offers several internships each year to college students as an
invitation to join their team of curious and innovative minds.
Nike offers incredible opportunities to a very select group of interns that are brought in
each year. During this paid internship program, interns will take a dive into the culture of the
Nike brand. These internships stretch across the globe from the U.S. all the way to China. Not
only will they be learning about the culture of the business, but they will also participate in the
interaction of top company leaders and take on complex projects to generate growth of the
already thriving business. In the process of all of this, interns will also be developing skills and
building several relationships among not only other interns, but also the higher ups that will
create connections that will lead to a brighter future for the fortunate interns that are given this
opportunity. Here Nike shows commitment to the academics and engagement of potential future
employees, and greatly assists academic institutions in the process.
Nike sponsors several different educational institutions across the country including
schools such as: Louisiana State University, Florida State, Duke, Michigan, and Ohio State.
Although these are some of the biggest athletic programs in the nation, one of Nikes biggest
partnerships is with the University of Oregon (Nazario). Nike has captivated the nation in the
past few years by showcasing flashy equipment and uniforms on Phil Knights beloved Oregon
Ducks. What is cool about their partnership is that Oregon athletics are always the first to test the
new and latest gear that Nike produces and in return, the coaches give feedback to the company
(Wish). Many students have a lifelong dream to work for large athletic programs such as Oregon.
Nike not only gives one that opportunity, but gives one the chance to create the tools to achieve

that dream, and in that way can give something back to a community of people who love their
brand.
Nike has a long, notorious reputation in its responsibility to help the global community,
albeit that reputation has not always been a positive one. Economist Max Niesen once cited the
companys massive success on incredible margins and aggressive marketing campaigns which
are largely funded by money saved by outsourcing labor costs, which is where the problems
start. Nike has often urged, or threatened contractors to move into southeast Asia to keep costs
low; the strategy backfired in 1992-93 when Jeff Ballinger reported low wages and
sweatshop-like conditions for Nikes factory employees overseas. The next few years were very
damaging to Nikes image, including protests and the revelation of Nike exploiting child labor
laws by making kids work in abusive conditions for less than fourteen cents an hour (Niesen).
The secret of Nikes success showed a lack of character by those who both supported it, and
those who allowed it to continue. 1996 brought Nikes first attempt to remedy its public image
by organizing a task force designed to improve conditions. Throughout the next few years, little
progress was made and unrest grew amongst key target markets such as college students. Finally,
in 1998, CEO Phil Knight spoke publicly on the issues brought up over the past half decade.
Instead of avoiding allegations like the company had done in previous years, Knight owned up to
the responsibility Nike had as a leader in such a prominent industry, a great display of both
character and professionalism that was unseen previously. The following years saw a massive
rebuilding project for Knight and Nike. The organization created the Fair Labor Association,
promoting a minimum age requirement, increased wages, and a sixty-hour work week (Niesen).
Following this projects, Nike worked to bring six hundred factories up to speed with the new

requirements and continues regular self investigations, which was and is a very real embodiment
of engagement in its community. Poor conditions still plague Nikes factories to this day, but
through diligent work and a need to save their image, the company is now considered by many to
be a leader in the conditions of Asian factories. That being said, improvements can always be
made and although Nikes image has been saved they still have a long way to go before they can
be deemed to have entirely safe and moral work conditions. In terms of PACE, while Nike may
have successfully fulfilled its obligations in professionalism, and to some level engagement, one
may question their character. Knights motives are not clear, and whether these changes are the
result of genuine care and concern, or simply desperate attempts to save Nike is a debate that is
sure to continue long into the future.
As far as roles in our group, each member contributed an equal and vital amount to the
total success of the group. Garrett was in charge of researching diversity in Nikes employees
and bringing that aspect of our project together. Tim focused on company culture and trajectory,
and also played a key role in organizing the powerpoint presentation. Dane looked into the
academic credentials of various positions at Nike, as well as internships and their exclusive deal
with various universities. Will discussed social responsibility and helped with editing the final
paper. Overall, each members contributions were invaluable to the team.
In closing, Nike is and will most likely continue to be the premier brand in the sporting
goods industry for years to come. Through their commitment to values such as Professionalism,
Academics, Character, and Engagement they try to be the best they can be. Although there is
tremendous room for growth, they have no doubt shown their ability and dominance as a global
powerhouse and generational icon.

Work Cited:

"Company Culture Examples | Nike Corporate Culture." Corporate Culture Pros. N.p., 2016.
Web. 09 Oct. 2016.
"Corporate Careers." Careers at Nike. N.p., n.d. Web. 09 Oct. 2016.
Kell, John. "Majority of Nikes U.S. Employees Are Minorities For the First Time." Fortune
US Employees Are Minorities For the First Time Comments. N.p., 11

Majority of Nikes

May 2016. Web. 09 Oct. 2016.

Kissinger, Daniel. "Nike Inc. SWOT Analysis & Recommendations - Panmore Institute."
Panmore Institute. N.p., 2016. Web. 09 Oct. 2016.
Nazario, Marina. "11 College Teams That Rake in Tons of Cash from Nike, Under Armour, and

Adidas." Business

Insider. Business Insider, Inc, 22 Sept. 2015. Web. 12 Oct. 2016.

Nisen, Max. "At Nike, Workers Quote The Company's Maxims Like The Ten Commandments."
Business Insider. Business Insider, Inc, 2013. Web. 09 Oct. 2016.
Nisen, Max. "How Nike Solved Its Sweatshop Problem." Business Insider. Business Insider, Inc,

09 May 2013. Web.

10 Oct. 2016.
Schlossberg, Mallory. "Nike Is Facing Unprecedented Headwinds." Business Insider. Business
Insider, Inc, 2016. Web. 09 Oct. 2016.
Wish, Matthew. "10 Fun Facts about the Oregon Ducks' Unique Nike Deal." Business Insider.
N.p., n.d. Web. 12 Oct. 2016.
Young, Justin. "Nike Inc. Organizational Culture Characteristics: An Analysis - Panmore
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-http://jobs.nike.com/article/internships
-http://www.businessinsider.com/biggest-ncaa-athletic-apparel-contracts-2015-9/#1-university-of-michigan-11
-http://www.bizjournals.com/portland/blog/threads_and_laces/2015/01/10-fun-facts-about-the-oregon-ducks-unique-nike.html