Nike Case
About Nike Case 6.1: How to Make Money (D) – Near Automatic
Phil Knight and Bill Bowerman started their company with a vision of serving the athlete. That vision was shared by their first employees, who were committed to the company but who needed more detailed directions: They needed to know what was appropriate and what wasn’t when it came to conducting company activities. Knight responded by issuing a list of guiding principles at a crucial time in the company’s history. It was 1977, and the 13-year-old company was prospering. Sales had reached $28 million, but Knight wasn’t satisfied. Because he wanted to be number one and beat his staunch rival, Adidas, he conceived this list of principles in the faith that they would foster the behavior that would get him and his company where he wanted to be: NIKE PRINCIPLES 1. Our business is change. 2. We’re on offense. All the time. 3. Perfect results count—not a perfect process. Break the rules; fight the law. 4. This is as much about battle as about business. 5. Assume nothing. Make sure people keep their promises. Push yourselves; push others. Stretch the possible. 6. Live off the land. 7. Your job isn’t done until the job is done. 8. Danger Bureaucracy Personal ambition Energy takers vs. energy givers Knowing our weaknesses Don’t get too many things on the platter 9. It won’t be pretty. 10. If we do the right things, we’ll make money damn near automatic. Knight was right about number 10. By 1980, with 2,700 employees and revenues of $270 million, Nike had surpassed Adidas and dominated the U.S. market. New Statements for New Missions By the mid-1980s, however, Nike was toppled from the top spot by a new rival—Reebok. Women had discovered Reebok’s soft leather shoes and its sales took off, while Nike’s declined. To regain its top place, Nike needed a new mission—namely, “Crush Reebok.” It worked—Nike soon regained industry leadership—but the lead was a little too narrow for Phil Knight’s comfort. So he issued a new
Phil Knight and Bill Bowerman started their company with a vision of serving the athlete. That vision was shared by their first employees, who were committed to the company but who needed more detailed directions: They needed to know what was appropriate and what wasn’t when it came to conducting company activities. Knight responded by issuing a list of guiding principles at a crucial time in the company’s history. It was 1977, and the 13-year-old company was prospering. Sales had reached $28 million, but Knight wasn’t satisfied. Because he wanted to be number one and beat his staunch rival, Adidas, he conceived this list of principles in the faith that they would foster the behavior that would get him and his company where he wanted to be: NIKE PRINCIPLES 1. Our business is change. 2. We’re on offense. All the time. 3. Perfect results count—not a perfect process. Break the rules; fight the law. 4. This is as much about battle as about business. 5. Assume nothing. Make sure people keep their promises. Push yourselves; push others. Stretch the possible. 6. Live off the land. 7. Your job isn’t done until the job is done. 8. Danger Bureaucracy Personal ambition Energy takers vs. energy givers Knowing our weaknesses Don’t get too many things on the platter 9. It won’t be pretty. 10. If we do the right things, we’ll make money damn near automatic. Knight was right about number 10. By 1980, with 2,700 employees and revenues of $270 million, Nike had surpassed Adidas and dominated the U.S. market. New Statements for New Missions By the mid-1980s, however, Nike was toppled from the top spot by a new rival—Reebok. Women had discovered Reebok’s soft leather shoes and its sales took off, while Nike’s declined. To regain its top place, Nike needed a new mission—namely, “Crush Reebok.” It worked—Nike soon regained industry leadership—but the lead was a little too narrow for Phil Knight’s comfort. So he issued a new