Briefing Paper



Nikeis currently the market leader in the sports shoes and clothes. Itwas founded in 1964 and since then it has shown a tremendous growththat has sustained it at the top. It began as a shoe company thenlater diversified and then it bought several brands that it appliedto strengthen its hold on the market. Typically, the company is lovedby its investors and customers, and the customers enable it torealize a profit on a yearly basis. On the other hand, the investorshave helped to drive Nike’s product price up past 90 dollars thatare high for any ordinary stock. To focus its business, Nikeoutsourced its manufacturing then it decided to focus on itsmarketing, strength, and design. This strategy worked for thecompany, but the human rights activists sounded an alarm saying thatNike’s contract workers were mistreated (Locke,2003).

Asearlier mentioned, Nike has been in existence since 1964, as BlueRibbon Sports by Phil Knight and Bill Bowerman. Nike started as asmall American based company, and it only targeted the Americansprimarily. It then expanded tremendously to various parts of theworld, and it’s currently the leading in the market in theproduction of the sports shoes and apparel. Some of the productsproduced by Nike include Air Jordan, Air Force, Nike Dunk, Nike Pro,Nike+ and Nike skateboarding. The company sells its products forsports activities such as American football, football, running,basketball, tennis, combat sports, tennis, golf, and the crosstraining for children, women and men. Typically, Nike targetseverybody but majors on those people participating in sportsactivities. The targets for Nike have greatly increased in number dueto the increasing number of people that are willing to participate insports and also to lose weight. It is important to note that Nike haslately diversified their products to ensure that they capture theirtargets fully. For instance, at the start they were only producingthe sports shoes and then they later diversified their services toclothes and other organ supports such as the ankle supports. It isalso vital to note that the company has been in the business for morethan 50 years, and, therefore, it has a concrete background for itsbusiness in the current market. In its fifty years of existence, thecompany has come through many challenges that they had to makeappropriate decisions to maintain the dignity of the company. Thesechallenges have helped the company to gain an experience on what theyare supposed to do during various occasions.

Externaland internal analysis of Nike

Tostart with, when the company was founded, it was the only companythat was producing products that were targeting the sportsmen. Itenjoyed the monopoly for a while, and there was the emergence ofother similar companies such as the Li-Ning, Columbia Sportswear,Puma, and Adidas. Nike has experienced a great competition from theLi-Ning that has shown a great sense of creativity on the productsthey produce lately (Galy,1998).Additionally, the company has had a problem in reaching most of thecustomers in other parts of the world due to rejection of theirproducts. The company has had to think about the most efficient waysthat they can market their products globally to ensure that itremains acceptable to all of the people. For instance, there havebeen cases where competitors discourage people from buying Nike’sproduct since they do not meet the required standards like anklesafety. As a result, it has been hard for the company to demonstrateto those discouraged customers that their products are the leading inthe market.

Itis vital to note that Nike is also exposed to the internationalnature of trade. This is to say that it sells and buys variouscurrencies all the time. It has been noted that costs and margins arenot stable over a long time. Therefore, in most of the cases Nike hasbeen manufacturing some of its products at a loss. Although it is anissue that faces all the global brands, it has dragged the company ofmy choice to a greater level (Stonehouse,et al. 2009).

Internally,there have been various strengths and loopholes that the company hasexperienced. For instance, through the appropriate application oflabor division within the workers of the organization, they have beenable to realize much profit and capture new customers. Also, the goodleadership skills applied in the company have been the key driver ofthe company’s success. It is also crucial to note that the teamworkof the employees has played a critical role in the success that thecompany has experienced.

However,some internal factors have dragged the company’s success behind.For instance, miscommunication within the various outlets of thecompany in the world has impacted the company negatively. Thecompany’s strategy in some cases has been misinterpreted, and thishas been costly to the company in that they have had some difficultyin achieving their goals. Additionally some instances have beenexperienced whereby the employees of the company leak out the plansof the company thus making the competitors strategize on ways tocounter them easily.

Atsome point, poor management within the company had a negative impacton the growth of the company. It is obvious that the management ofany company is the one that determines the level of success that theyare likely to achieve. Nike experienced some cases of poor managementin the early 1980’s, and they recorded a great loss since thecompany was discovered. One of the major reasons towards the poormanagement is the miscommunication within the managers. This way,they were unable to execute their strategies appropriately and inturn it led to the failure of the company (Strasser,et al. 1991).

Finally,another major internal factor that has dragged the company behind fora while is its overdependence on single customers. Before theirdiversification to make new products and also explore the new market,the company only provided its services to a single type of customers,and this did not give them room for expansion.

Knowledgemanagement topic about the organization

Theknowledge management topic I chose is decision-making in the contextof a specific company. Leaders in different places will sometimes befound in an ethical dilemma, and they will have to think criticallyfor them to make the wise decision. Therefore, this paper is crucialto ensure that the leaders are well equipped on some of thechallenges they should expect and how they will deal with them. Theorganization of my choice is a crucial example to demonstrate theimpact of the decision-making of the leaders of an organization.Therefore, there is a relationship in my knowledge management topicand the Nike Company since the leaders in this organization have hadto make crucial decisions to ensure that the company succeeds. It isalso vital to note that they have had to take risks to see if theirplans are going to work out (DeTienne,et al. 2005).

Iam writing this paper for the purposes of informing the leaders onsome of the issues that surround them and also provide them with somecrucial measures they can take to curb those issues. Besides, this isto inform the leaders that they can apply the knowledge they have onmanagement to push their organization to the next level. Typically,the purpose of this paper is to provide an appropriate solution tosome of the challenges that the leaders encounter in their leadership(Stonehouse,et al. 1999).

Presentation,Explanation, and Research

Asearlier mentioned, Nike has found itself in situations that they havehad to make decisions to ensure the company progresses. In thesecases, the leaders have been greatly involved in making thesedecisions that matter for the well-being of the company. The bestexample is when the company had to diversify the production of itsgoods. Although it seemed to be a growth of the company, there werealso chances that they might experience a tremendous loss. In thiscase, the management of the company had to exercise decision-makingto ensure that the decision they make will influence the companypositively. Additionally, they had to take risks since they were notsure if the step they were just about to take was the best.Therefore, they had to take a risk to try diversifying theirservices.

Diversificationin the products that the company produces implies that the companyhas to assess their target market critically before releasing theirproducts. Therefore, wise decision-making has to be done to achievethe desired results. My knowledge management topic is crucial in thisinstance since it will assist the leaders to make the best decisionsin the dilemma they are found in. Leaders have some basic knowledgethat they should try to exercise in their organizations to realizetheir goals. In this case, Nike’s management/leadership had to makea crucial decision in the matter of diversification. One of the majorthings that the leaders did is advice on the research to be conductedon their target market to ensure that the customers won`t rejecttheir products. After some consultations, they only made a fewproducts check out the response of the market. After they had foundout that the customers loved their products, they made more productsdue to the demand that had grown (Locke,et al.2007).

Besides,it is crucial to note that the decision-making process of the companyentails the communication of the crucial leaders within theorganization. Therefore, effective communication among the leaders iscrucial for them to make the appropriate decisions regarding thecompany’s success (Ricceri,2008).Despite the large size of the company and its branches all worldwide,it is vital that information should be transformed successfully andinterpreted in the same way among all the leaders. The large size ofthis company has made it hard for information to be successfullytransferred to different leaders of the company globally. Therefore,the company has had to strategize on some of the ways that they cantransfer information so that it will have the same meaning to all theleaders and avoid the issues of misinterpretation. Currently, I notedthat they conduct live meetings online to ensure that all the leadersget the actual information regarding the strategies of the company.This has been helpful since they get the audio part of the messageand also get the stress that accompanies a particular point so thatthey might put much effort to accomplish it (Jackson,et al. 1993).


Inthis case, I would advise that the company should capture aparticular target at a time to ensure that they do not come across ahuge loss in case of rejection. Targeting one after another iscrucial to increasing the market of the company since they will beincreasing their size after they capture a specific target.Alternatively, they would opt to give offers to customers at thebeginning so that they can encourage more customers to buy theirproducts. Offers are crucial to making the customers buy the goodsin large quantities so that they can assess the new product. Also,customers are fascinated by the offers due to the reduction in theprices of the goods they know well and, therefore, they will buy themin larger quantities (Kytle,et al. 2005).

Justificationsfor my research

Myresearch would help leaders in different capacities to makeappropriate decisions when they are required to do so. As it has beenpointed out in my research communication among the leaders is crucialto making the wise decision. This is because the unity of theleadership of a company can lead to the rise of the fame of thecompany. Additionally, it is vital for the leaders to put theirtheoretical knowledge into practice to ensure that the progress ofthe company is guaranteed. Typically, my research is meant toidentify some of the common problems that the leaders are likely toface in their respective companies with respect to Nike. After that,it provides the most appropriate approaches to deal with thesechallenges to ensure that the company succeeds (Ramaswamy,2008).

Regardingmy recommendations, there are some risks that the company is likelyto take if it has to make these decisions. However, there is alsosome strength that the company is likely to encounter if it is goingto work with these suggestions. To start with, one of the major risksthat the company will have to take is that it is likely to lose mostof the customers. If the management of the company choses to captureone market after the other, those customers that will be reached lastwill have a feeling that they are less significant to the progress ofthe company. This will cause the customers to opt for other optionsrather than buying the products from this company. Another riskassociated with this is that the company is likely to lose all itscustomers in case their first target market rejects their new productor when they give a negative feedback about the product. The otherpart of their target market will have the same feeling that theproduct that is being introduced is of low quality or does not meetthe required standards (Schaltegger,2011).

Onthe other hand, there are numerous strengths that the company islikely to experience from the application of the listedrecommendations. For instance, opting to give offers on their newproducts imply that the `company is likely to capture more customers.Offers might be given in different capacities such as deductions fromthe original price of the product or on the basis of buy one get onefree. If the customers try the product and find out that they are ofthe required standards, then they will keep coming back, and eventhey will recommend newer customers to the company. Therefore,through this method, the company is likely to capture and maintaincustomers to sustain their business. Additionally, capturing theirmarket targets one after the other implies that the company will besure with the customers of a specific region and even know the amountof goods that they should deliver to them. This is a crucialguideline to their production process to help them to understand thequantity of products that they have to produce to suit the needs ofthe customers. Also, they will be capable of knowing thespecification of the products that the customers of a specific regionprefer and in turn meet their needs (Stonehouse,et al. 2008).

Inconclusion, it is important for the company to evaluate the strengthsand the risks of a given approach before executing it. By the factthat each approach will have their downfalls (risks), it is vitalthat the company management assesses the strengths and the risks. Ifthey realize that the strengths are more than the weaknesses, thenthey can execute the approaches to curbing their problems (Katz,1994).


Fromthe above research, it is crucial that the company’s managementshould understand the situations that their company is facing or islikely to face in the future. Also, the leaders are expected to bequick in exercising their theoretical knowledge to if the company hasto progress. Exercising their knowledge will assist in finding themost appropriate way for the company to deal with the issues thatthey face regularly. Typically, most of the challenges that thecompany encounters can be solved by the appropriate decision-makingof the key leaders of the organization just as it were the case inthe Nike Company. Therefore, the managers of a company should beconversant with the decisions they make for their companies sincethey directly influence the progress of the company. Most of theapproaches that have been discussed above are derived from the pastexperiences of Nike Company. Therefore, other companies are likely toexperience the same situations in their way to the diversification oftheir products (Frenkel,2013).

Theleaders have to evaluate the situation critically that theircompanies are laying before coming to the final decision. Evaluationof the situation of the company helps the managers to understand theproblem they are facing before they can make any decision. As it hasbeen demonstrated, managers are the crucial stakeholders in thecompany, and they should be keen in the leadership process so thatthe company realizes its goals easily.


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