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Chapter 8

Lecture 11 - chapter 8.doc

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Global Management Studies
GMS 200
Horatio Morgan

Lecture 11 23/nov ← Chapter 8: ← Organizational skills • If you are an owner/manager of a company that had: o The most talented people under your control o Lots of money in the bank o The most ideal location o The latest technology • You still may not be an industry leader if you are unable to o Get the most of the resources that are available to you • You need exceptional organizational skills to get ahead ← Organizing to maximize profits • In today’s lecture, we want to understand how organizing as a management function may contribute to the profitability of the company • Company: Nike Nike: Quick Facts • Co-founders: Phil Knight + Bill Bowerman • Bike concept = introduced by BRS (Blue Ribbon Sports) in 1971 with the creation of the Nike “swoosh” • Officially launched in 1972 • HQ in Beaverton, Oregon • Primary business: design, develop, market & sell footwear, apparel, equipment, accessories • Employs approx.. 44,000 workers worldwide (2012) • Approx.. 30% of global shoe market $24b in revenue (2012) • Outsources shoe production to approx.. 700 contract factories around the world (41% Vietnam, 32% Chine, 25% Indonesia) Where’s the value? • If Nike outsource virtually everything, what’s really left? • Where’s the source of value? o Brand recognition Role of athletes … • Starting with Michael Jordan in 1980s, athletes played a dominant role in building the Nike brand + marketing a range of profuct lines Advertising • 2012  Nike spent $2.7 billion on advertising + promotion • all about building the brand! Public relations troubles • Nike recently came under harsh criticism for what s
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