Inconsistent Shoe Quality From Nike Inc

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Inconsistent Shoe Quality From Nike Inc

General Comments

Due to the continuous amount of complaints we have been receiving every week since the release of the new Jordan line shoes on November 1st, 2008, we can’t help but be concerned. Nike is currently the largest and most respected athletic wear company in the world, but we might lose our respectable reputation if we do not fix this problem. Over the past years, our revenues have been increasing on average of about 8% a year; but recently over the last 5 years, our revenue growth has slowed down and our competitor’s revenues have increased dramatically gaining more dividends in the market. With a slower projected growth, we can not afford to lose any more of our business to our competitors. Therefore, immediate action must be taken to solve this problem at hand to keep our reputation of being the best and at the top of the industry.

Mission Statement

We at Nike are here to serve our customers and the community. We have been considered as the industry’s best and we hope to continue to uphold that position by delivering the best to our customers. The purpose of this report is to investigate the complaints we have been receiving about the inconsistent shoe quality from Nike Inc. and find solutions and recommendations to solve this problem. This report addresses the root cause of the problem, the implications resulting from the problem, and the recommended plan of action our investigation team has concluded on. This report has been written so as to guide the reader through the problem, stress on the resulted implications, and recommend a solution for the problem.

Background

Nike Inc. was founded in 1964 by track athlete Phil Knight and his coach Bill Bowerman. The company initially started off as a distributor for a Japanese shoe manufacturer called Onitsuka Tiger. Nike first started selling their products out of coach Bowermans Dodge Caravan at athletic events such as track meets or football games. With the support of the top NCAA athletes in the Oregon area wearing Nike shoes, the shoes became very popular and in 1966, the company became independent and opened their own retail store in Portland, Oregon. During the 1970’s, the company’s revenue increased rapidly and soon the company had professional athletes endorsing their products. With all the mainstream success and recognition, Nike Inc. grew into the Fortune 500 company it is today.

The problem of the inconsistent shoe quality from Nike Inc.

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