Nike

Crisis Management PlanTeam Black Sheep

Rory Mileham, Gianna Torres, Sarah Frelich, Lindsay Briquelet and Tyler Otto

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Table Of Contents

Letter from CEO_________________________________________________________3Background Of Nike______________________________________________________4Crisis Management Team__________________________________________________6Crisis Management Team Contact Sheet______________________________________9Shareholders and Stakeholders_____________________________________________10Crisis Control Center____________________________________________________13Rehearsal Dates_________________________________________________________14Crisis Control Center Materials____________________________________________15Crisis Management Wheel________________________________________________16Proprietary Information__________________________________________________17Issue Sources__________________________________________________________18Risk Assessment Sources_________________________________________________19Nike Pre Crisis- Audience Analysis_________________________________________20Issues Associated with Nike Inc.___________________________________________21Incident Report In Store__________________________________________________24Incident Report for Factory________________________________________________26Strategies and Tactics____________________________________________________28Options for Contain Crisis________________________________________________29Message Strategy_______________________________________________________30Strategic Options________________________________________________________31Post Crisis Format_______________________________________________________32Appendix A____________________________________________________________33Appendix B____________________________________________________________37Aknowledgements_______________________________________________________39

Letter from the CEO

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Since the day Nike opened as Blue Ribbon Sports in 1964, it has focused on supplying the world with the best athletic apparel. Nike has a focus of being on the forefront when it comes to design, creativity, innovation, and style. Our main rule at Nike is like our slogan says “Just Do It,” and we do that by constantly raising the bar when it comes to our products. Our purpose is to inspire both young and old by partnering with top athletes and celebrities, to show that anyone can “Just Do It.”

At Nike, we work hard to make sure that every idea, product, and purchase made is one that inspires and motivates everyone to get out there and “Just Do It.” From our dreams that push the boundaries of what can and can’t happen the possibilities of our products are endless.

By working alongside the world’s best sports teams, athletes, celebrities, and style icons, our goal is to motivate everyone that by lacing up their Nike shoelaces, they are one step closer to their icon. At Nike, have built a brand where the memories made in our products, can last a lifetime.

Being a global brand, Nike is focused on having a presence in the community, from sponsoring sporting events, and endless charities that focus on giving back, and building up sports in low income areas. Our commitment to making sure everyone can live their dreams through our products is at the front our minds.

At Nike we are passionate about creativity, creating top of the line products, and giving back to the communities we serve. We will never be afraid to “Just Do It”

Sincerely Yours,

Rory MilehamChief Executive Officer

Background on Nike

Known today for being a world leader in sporting goods, shoe design, and athletic wear, the Nike swoosh is one of the most recognizable

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symbols in the world. While today Nike is one of the most powerful countries in the world, Nike stared out as a man who wasn’t afraid to “Just do it.”

Starting out as Blue Ribbon Sports in 1964 Nike founder Phil Knight was selling running shoes out of the trunk of his car. Being a former track and field runner at the University of Oregon, Knight had a close bond to his former coach, Coach Bowerman. The two had a passion to make a shoe that was like nothing on the market. They wanted a shoe that was lightweight, but also durable.

It wasn’t until 1972 that the two had the creation they wanted. By experimenting with shoes that the two were selling at Blue Ribbon Sports, the two created the “Oregon Waffle Shoe,” which was made by the two pouring rubber in a waffle iron.

After this success Blue Ribbon Sports officially became Nike Inc. The name Nike comes from the Greek Goddess of Victory, which was Knight and Bowerman’s mission for everyone who owned the shoe.

Knight and Bowerman knew that they now had a product that would sell; they just needed to find a way to market the shoe. Steve Prefontaine was the first athlete to be endorsed by Nike. Prefontaine went on to set records in his distance running, and for Nike, this was the beginning of their association with the world’s top athletes.

Nike went on to partner with the top sports starts in the world in every major sport, one of the most recognizable being Michael Jordan. Jordan was signed to an endorsement deal in 1984, from having the world’s greatest basketball player signed with them Nike growth as the worlds leader in sporting goods skyrocketed. The following year Nike released a new line of shoes named “Air Jordan,” which to this day are one of their most successful selling product.

Seeing the success it had by partnering with the top athletes and selling their sporting goods, and also being inventive with the top of the line designs. Nike was able to strengthen its grip as being the worlds best. From a company that started by selling shoes out of a car truck, to selling shoes all over the world, the Nike Corporation will always be willing to ‘Just Do It.”

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Crisis Communication Team

Rory MilehamChief Executive Officer and Social Media LeadMilera22@uwgb.edu 608-320-570As Chief Executive Officer of Nike, Rory is dedicated to making sure that each person who laces up their Nike sneakers, or wearing Nike apparel has the best experience possible. From his multiple roles of maintaining Nikes image, strengthening partnerships, and managing the

crisis management team, Rory has been the Chief Executive Officer at

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Nike since January of 2015. Rory earned his degree in Communication, emphasizing in Public Relations and Social Media Strategy from the University of Hawaii.

Gianna TorresPublic Relations Director and Social Media Consultant Torrgm12@uwgb.edu 414-292-6187As the Public Relations Director and Social Media Consultant, Gianna strives to maintain a transparent character with the public. Her daily tasks include but are not limited to; writing press releases, overseeing Nike’s various campaigns and reaching out to the media. One of the largest goals for the Nike brand is to be true to

the “Just Do It” slogan. This consists of keeping a strong face with their morals and the way the company operates. Gianna has been the Public Relations Director at Nike since June 2010 and became a Social Media Consultant in January of 2015. Gianna graduated from the University of Kentucky, with a degree in communication double emphasizing in Public Relations and Mass Media.

Sarah FrelichHead Legal ConsultantFrels17@uwgb.edu 920-606-0266Sarah graduated from South Carolina State with a Masters in Legal Studies. She was appointed to Nike’s Legal Counsel April 21, 2011. It is her job to make sure that the corporation of Nike operates and functions properly under United States law. Nike knows that people perform best in a work

environment free from unlawful harassment and discrimination. Nike is committed to providing safe and healthy work environments. It is Nike’s policy to comply with the export and import control laws and regulations of all countries in which Nike does business. Everywhere in the world, Nike complies with the U.S. anti-boycott laws. From working with a highly competitive business, Sarah

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knows that all employees should not disclose any of Nike’s non-public exclusive or confidential information to the public domain through any form of communication.

Lindsay BriqueletHead of Safety and Security Briqll22@uwgb.edu 920-246-4308Lindsay’s main objective is safety throughout the whole company. Lindsay and her whole team keep a close eye on maintaining safe working conditions and preventing accidents in factories. Keeping all Nike employees safe at all times is the number one priority. Lindsay makes sure safety and security members are performing their jobs effectively. In addition Lindsay handles any issues that may arise within the factories or store locations quickly and effectively. In a crisis situation it is Lindsay’s duty to contact the local fire department, authorities and pest

control. Daily responsibilities include overseeing factory and store inspections to ensure all requirements are met by Nike. Other tasks include evaluating equipment in the factory, making sure it is in top condition, up to date and malfunction free. Beyond her daily responsibilities Lindsay is constantly researching the newest innovations to keep product quality high and employees safe at all times. She frequently suggests safety improvements to keep Nike moving smoothly and safely. Lindsay helps keep Nike employees.

Tyler OttoOperations ManagerOttotj04@uwgb.edu 920-850-3668As Director of Operations, Tyler’s job is to make sure that everyone is doing their job and that operations are running smoothly at Nike’s facilities worldwide. Due to the fact that Nike has operations running in many different parts of the world, Tyler serves as a middleman by staying in constant contact with all levels of management and answering any questions they may have in order to maintain the continuous

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success of the company. He makes sure to meet with the key officials monthly to ensure things are running smoothly. Tyler is also traveling frequently to the various locations to check up on their operations, resolve any conflicts and suggest ways that their operations can continuously improve. Tyler developed these skills at Central Michigan University in Mount Pleasant, MI where he graduated with a Bachelor’s Degree in Organizational Communication. Tyler has been an important asset for Nike since 2011.

Contact Sheet

Rory MilehamChief Executive Officer and Social Media Lead

Milera22@uwgb.edu(608)320-570

Call or Text: Both

Sarah FrelichHead Legal Consultant

Frels17@uwgb.edu (920)606-0266

Call or Text: Both

Lindsay BriqueletHead of Safety and Security

Briqll22@uwgb.edu (920)246-4308

Call or Text: Both

Tyler OttoOperations ManagerOttotj04@uwgb.edu

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(920)850-3668Call or Text: Both

Shareholders

The Vanguard Group Inc.41,931,566 shares100 Vanguard BlvdMalvern, PA 19355(610) 669-6100

Fidelity Management and Research Co.39,117,305 shares9310 Topanga Canyon Blvd #220-AChatsworth, CA 91311

(818) 407-6620

State Street Global Advisors34,003,096 sharesState Street Financial CenterBoston, MA 02111(617) 786-3000

BlackRock Fund Advisors27,322,752 shares400 Howard StSan Francisco, CA, 94105

Capital Research and Management Co. (Global Investors)16,803,524 shares333 South Hope PlazaLos Angeles, CA 90012(213) 615-0514

Capital Research and Management Co. (World Investors)13,882,000333 South Hope PlazaLos Angeles, CA 90012(213) 615-0514

Jennison Associates LLC16,230,286 shares466 Lexington AveNew York, NY 10017(212) 421-1000

Stakeholders

Anne KellyDirector of Governance ProgramsCeres99 Chauncy St

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Boston, MA 02111(781) 354-6708

David ChenFounder/Managing DirectorEquilibrium Capital555 Clay StSan Francisco, CA 94111(415) 398-9401

Garrett BrownCompliance OfficerCal/OSHA1515 Clay St Suite 1901Oakland, CA 94612(510) 286-7000

Helio MattarPresidentAkatu InstituteSao Paulo, Brazil(604) 682-6673

Jason MorrisonProgram DirectorPacific Institute654 13th St Preservation Park, Oakland, CA 94612(510) 251-1600

Kavita RamdasCEOGlobal Fund for Women222 Sutter St Suite 500San Francisco, CA 94108(415) 248-4801

Kevin CarrollAuthor, Speaker and Agent for social change

Ma JunDirectorInstitute of Public and Environmental Affairs

6-1-91, Jianguomenwai Diplomatic Residence Compound, No.1 Xiushui Street Chaoyang District, Beijing 100600+86 010 6718 9470, 6713 6387

Melissa BrownDirectorIDFC Global Alternatives (Hong Kong) Ltd.

Paul GildingWriter, Advisor and Advocate on climate change and sustainability

Peter GrafChief Sustainability OfficerSAP1 (800) 872-1727

Tim BrownPresident/CEOIDEO150 Forest AvePalo Alto, CA 94301(650) 289-3400

Todd MossSenior Fellow/Director of the Emerging Africa ProjectCenter for Global Development2055 L Street NW Fifth FloorWashington DC 20036(202) 416-4000

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Sands Capital Management LLC23,696,065 shares1101 Wilson Blvd #2300Arlington, VA 22209(703) 562-4000

Crisis Control Center

Primary Location

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University Union 103

University of Wisconsin Green BayUniversity Union room 103

2420 Nicolet DriveGreen Bay, WI 54311

Secondary Location

Cofrin Library

David A. Cofrin LibraryUniversity of Wisconsin - Green Bay

2420 Nicolet DriveGreen Bay, WI 54311-7001

Tertiary Location

Garden Café

University of Wisconsin-Green Bay2420 Nicolet Drive,

Green Bay, WI 54311

Rehearsal Dates

The Nike Crisis Management Plan is rehearsed on a quarterly basis that is categorized based on product, factories, staff and a wild card so each member of the crisis management team is trained on how to act in a crisis situation. Each meeting will rotating from the primary and secondary location to make sure the director of each global headquarters will also be involved in the training.

Primary Location

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Nike World HeadquartersOne Bowerman DriveBeaverton, OR 97005

1-503-671-6453January 23

April 24

Aug 22November 21

Secondary Location:Nike EMEA (Europe, Middle East & Africa) Headquarters

Colosseum 11213 NL HilversumThe Netherlands+31 35 6266453

January 23 April 24

Aug 22November 21

Materials Needed In Crisis Control Center:

Phone chargers Computer chargers

Televisions Teleconference capabilities

Week supply of dry food Week supply of water

Bathroom Shower

First aid kits Landline Batteries

Pens Paper

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Crisis Management Wheel

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Above is a crisis management wheel. This wheel breaks down accidents into three large categories. Normal accidents which can break broken up into 3 subsections, natural accidents and abnormal accidents. This wheel reflects all of the possible crisis situations that could occur at any time. Based on this wheel, our group has constructed a crisis management plan that will prepare us for any situation.

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Proprietary Information

Business plans Marketing plans Salary Structure Employee Health Records Employee Injury Records Employee Personal Records and Information Patents Copyrights Trademarks Stockholders personal records and info Designs for future apparel Designs for future shoes Designs for future merchandise Production methods Names of compensated customers Contacts with athletes Contracts with celebrities Contracts with other companies Transcripts Prototypes

Issue Sources

Newspapers -- Wallstreet Journal, The New York Times, The Washington Post, USA Today, Washington Times, Los Angeles Times, Investor’s Business Daily (IBD), Chicago Tribune, The People’s Daily, The Examiner, Bild, Asahi Shimbun, The Christian Science Monitor, China Times, The Daily Mail, The

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Times of India, El Mundo, The Sydney Morning Herald, Le Monde, La Repubblica, The Globe and Mail, Hurriyet, Gazeta Wyborcza, Kompas, Miada fronta Dnes, O Globo, Kommersant, The Jerusalem Post, The Dong-a Ilbo, Der Standard, Phillipine Daily Inquierer, Aftonbladet, The New Zealnd Herald, De Telegraaf, Dagbladet, The Star Online, Dawn, Al-Ahram, The Straits Times, Het Nieuwsblad, South China Morning Post, Ilta Sanomat, Politiken, Arab News, Independent Online, Gulf News, SME, El Comercio, To Vima, El Universal,

We are a global company, so these are the top newspapers in the world covering many different countries. TV News -- ABC News, Bloomberg Television USA, CBA News, CNBC, CNN, Fox News Channel, NBC News (MSNBC), ESPN, BBC News

Business Magazines -- Barron’s, Bloomberg Businessweek, Fast Company, Forbes, Fortune, Newsweek, Time, U.S. News & World Report

Online -- Drudge Report, NPR, Google News, TV/Newspapers/Magazine Webpages, News Groups, Blogs, Social Media Sites, Sports Sites

Risk Assessment Sources

Safety/Accident Records

Ethical Climate Surveys

Financial Audits

Liability

Workers Comp.

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Product Tamering

Risk Audits

Sexual Harrassment

Nike Pre-Crisis Planning – Audience Analysis

Nike is more concerned about reputation loss and losing the valuable stakeholders within their organization. Nike makes an impact on consumers, buyers, suppliers, workers and communities around the globe. All of these groups are stakeholders and vital to the company's success. According to nikebiz.com, Nike employs more than 800,000 workers. As stakeholders, these employees are valuable and many of these employees around the world are young women, many of who are the first in their family to work in a formal economy. (nikebiz.com). This could create a significant social change for these families and their communities, so if the workers aren't happy, this could hurt Nike's reputation and go against some of the goals of their business such as making a positive impact around the world.

Therefore, it is critical for Nike to keep in constant contact with their stakeholders around the world. Nike’s main concerns involve keeping their

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stakeholders happy and maintaining a positive image and reputation in society. They are not as concerned about the issue of money because without their stakeholders, the organization wouldn’t be able to achieve their goals.

Key Relationship Sources:Shareholder resolutionsStakeholder concerns/complaintsThreats to their reputationPotential boycotts

During a crisis situation, it is key that Nike understands which of their audiences or stakeholders are being affected the most, and how this is affecting the organization as a whole. Because they are a global company, it is also important to understand where the situation is occurring and how this affects their company worldwide.

In Appendix B find Kiss chart to further illustrate the audience Nike has to address.

Issues Associated with Nike Inc.

Their endorsement deal with Jameis Winston. Erica Kinsman has filed a civil sexual assault suit against Winston and his character has been in question before. This is an issue for Nike because this would misrepresent their company if Winston is found guilty or continues to have character issues. This cold lead to shareholders and stakeholders becoming upset and cutting ties with the company. This could lead to people boycotting products because they endorse an athlete with such issues.

Nike is close to taking over NBA apparel rights from Adidas. This is a good thing for the company because it will allow them to grow and expand in the United States as well as overseas because the NBA wants to grow overseas as well. This could be an issue if something goes wrong because Nike will now have such a large organization tied to it. If issues occur NBA itself and fans could boycott the company.

There was a strike in Vietnam from workers at a Nike and Adidas factory, which ended when the government agreed to meet their

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demands on retirement payouts. There were thousands involved, and although the protest was peaceful and didn’t cause any damages, this could go back to Nike’s mistreatment of employers and hurt their reputation. It is unclear whether it was Nike or the government of Vietnam that the workers wee unhappy with.

 Some key issues Nike is concerned about

Freedom of Association: An education program that they want to take place in all contract factories. Challenges are the legal framework from country to country, Union issues, educating contract manufacturers who may be poorly educated in various countries.

Getting a human resource management program implemented in all contract factories.

Improving working conditions in their global supply chain and industry as a whole.

Having a bad carbon footprint because they have been working to be eco-friendly

Categories to consider in a crisis situation

Footwear Apparel Equipment Employees Consumers Buyers Suppliers Communities Factories Other stakeholders

Possible crises that could happen to Nike(Don’t know if we need this in our crisis management plan, just random examples from serious to not so serious)

Athletes don’t want to wear our shoes or endorse us any more Equipment failure leads to no more production or less production Price of shoes causes people to be upset and cause issues such as

people thinking we are fooling them into buying our product Performance of shoes decreases Shoes causes injury to customer somehow Footwear is made of materials that are harmful to environment and we

are trying to be environmentally friendly Athletes stop wearing and endorsing Nike Equipment failure leads to no more production or less production

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Price issues again Clothes constantly ripping or tearing Clothes causing some reaction or disease from the factories Apparel is made of materials that are harmful to environment and we

are trying to be environmentally friendly Equipment failure causes no production Equipment doesn’t last very long Equipment is made of materials that are harmful to environment and

we are trying to be environmentally friendly Nike equipment is no longer being used Mistreatment of employees Not paying employees Employee death due to factory conditions or abuse by employer Consumers/Buyers find better quality products for cheaper or boycott

products Stakeholders/Shareholders stop funding company Harassment and discrimination in the work environment Business partner, agents, distributors, consultants, representatives,

attorneys, independent contractors, external temporary workers and suppliers do not follow Nike’s ethical expectations

Labor and employment rights of all employees could impact the environment, a safe and healthy work place, and the health and wellbeing of employees.

Nike product is not designed, produced or serviced to Nike standards and do not comply with applicable regulations and contractual obligations

Export or importing does not follow regulations and requirements Nike Information, Ideas, and intellectual property is disclosed to the

public Accurate records and reports are not properly completed Assets are wasted or abused Personal information of employees are disclosed Fraud and theft Any action or relationship that could conflict with or appear to conflict

with the interests of Nike The appearance that business decisions are based on improper

payments, favors, gifts, or hospitality

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INCIDENT REPORT FORM FOR STOREThis report is to be used in all cases that emergency personnel has

been summoned or when further action needs to be taken following an incident at a Nike store.

Date of Crisis: ______________ Time of Crisis: __________ Location (store number) of Crisis: _____________Person(s) Involved:_____________________________________________________________________________Addresses: _________________________________________________ Phone (ext.):____________________CMT Member Contacted: _______________________________________________ Date: __________________Details of Incident (Who, What, When, How, Observed Behaviors, Refrain from Opinions)______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________Was Emergency Personnel called? ______ Yes _______ No Were there injuries? ______ Yes ______ NoInjuries____________________________________________________________________________________________________________________________________________________________________________________If YES, was an ambulance called? ______ Yes _______ No Were there instructions from EMT/Emergency personnel? _____ Yes _____ No Reported by: _____________________________________________ Phone:_____________________Signature: ____________________________________________________________________________

Address: ____________________________________________________________________Department: _________________________________________________________________

Route to:

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_____ Chief Executive Officer, Rory Mileham _____ Safety & Security, Lindsay Briquelet _____ Public Relations, Gianna Torres _____ Legal Counsel, Sarah Frelich_____ Operations, Tyler Otto_____ Victim Manager, Keifer Sykes _____ Other(s) __________________________________

INCIDENT REPORT FORM FOR FACTORYThis report is to be used in all cases that emergency personnel has

been summoned or when further action needs to be taken following an incident at a Nike factory.

Date of Crisis: _____________ Time of Crisis: __________ Location (factory number) of Crisis: _____________Name of Employee: _______________________________ Job Position: _________________________________Address: _________________________________________________ Phone (ext.):____________________

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CMT Member Contacted: _______________________________________________ Date: __________________Details of Incident (Who, What, When, How, Observed Behaviors, Refrain from Opinions)______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________Was Emergency Personnel called? ______ Yes _______ No Were there injuries? ______ Yes ______ NoInjuries____________________________________________________________________________________________________________________________________________________________________________________If YES, was an ambulance called? ______ Yes _______ No Were there instructions from EMT/Emergency personnel? _____ Yes _____ No Reported by: _____________________________________________ Phone:_____________________Signature: ____________________________________________________________________________

Address: ____________________________________________________________________Department: _________________________________________________________________

Route to:_____ Chief Executive Officer, Rory Mileham _____ Safety & Security, Lindsay Briquelet _____ Public Relations, Gianna Torres _____ Legal Counsel, Sarah Frelich_____ Operations, Tyler Otto_____ Victim Manager, Keifer Sykes _____ Other(s) __________________________________

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Creating Strategies and Tactics:

During a crisis, Nike knows that it is important to remember that creating the necessary strategies and tactics is key when

it comes to addressing the crisis. It is also important to remember who the audience is, and wants to make sure the

core values of Nike are always at the forefront of the message they are sending out.

Nike Core Value Message:

_____________________________________________________________________________________________________________________________________________________________________________________________

Audiences:

Primary: __________________________ Secondary: _______________________ Others to note: ____________________

Strategies:

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_____________________________________________________________________________________________________________________________________________________________________________________________

Tactics:

_____________________________________________________________________________________________________________________________________________________________________________________________

Strategic Options for Containing a Crisis

When a crisis occurs, Nike Inc. needs to make sure it: Quickly Responds

Be honest, be forward about what you don’t know yet, but are working on knowing

Prioritize what is most important Always express sympathy

The following table, shows strategic options that will assist Nike Inc. to deal with a crisis positively

Full Apology and Corrective Action

Opening admitting that the fault is of Nike Inc.

Attack The Accuser Deals with confronting the originator of the crisis

Ingratiation (Remind audiences of the good Carnival

Cruise has done in the past

Remind the audiences of everything that is good about Nike Inc. from the top shoe design, to

the top athletes they endorseJustification – Minimize or no

Serious ProblemsMinimizing the situation and giving reasons as to why it

occurred.Excuse – “no control,” or “no

bad intentions”Denying that Nike Inc. has done any wrong doing, or that nothing that is occurring is qualified as a

“crisis”Denial – No Crisis Exists Not acknowledging that a crisis is

occurring

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Message Strategy

Strategic Categories

Strategic Options

Costs Benefits

Who Audience involvedSender of Message

Attack the Messenger

What ApologizeCorrective

ActionMake an Excuse

When Focus on the future

Where Does the location of the ship cause a

problemWhy What are the

motives of the message

Question why it’s a crisis

So What Why is this important

Is the message strategy going

to have the

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desired affect?

Strategic Options

Message Strategy: What is the message we are wanting to send to our audience

Channel Strategy: How should we send out the message? Does the channel change when we trying to obtain certain

objectives? Which channels are best suited for Nike?

Process Strategy: In what order should the audiences be notified? In what order do we communicate? In what order do we communicate events?

Strategic Process:

Determine the costs and benefits of all options when

dealing with a crisis involving Nike.

Which option are we going to select?Practice your strategy. Make sure to have assigned times to practice for possible crisis.

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Post Crisis Format

Please answer the following based on how each crisis situation has been handled.Please rank based on a 1-10 scale with one being very ineffective and 10 being very effective.

1. How effective was the crisis situation handled?

1 2 3 4 5 6 7 8 9 10

2. How effective was the chain on communication?

1 2 3 4 5 6 7 8 9 10

3. How effective was the time management team?1 2 3 4 5 6 7 8 9 10

4. Was the crisis situation was handled in a timely manner?

1 2 3 4 5 6 7 8 9 10

5. How effective was the follow up crisis communication?

1 2 3 4 5 6 7 8 9 10

Please provide feedback for the following questions.

6. What changes would you make to the crisis communication plan?

7. Is there any additional information that you wish you could have been provided with in during the crisis?

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8. How did you receive information about the crisis and was it effective?

Appendix A Facts on Nike

1.Nike has eight key categories: Running, Basketball, Football (Soccer), Men’s Training, Women’s Training, Action Sports, Sportswear, and Golf2. Nike markets products for kids3. In 2014 Nike made more than $27.7 million in revenue4. Nike is the leading supplier of athletic shoes and apparel5. Nike is headquartered near Beverton, Oregon6. Nike employees 44,000 people worldwide7. The Swoosh logo was designed in 19718. The Swoosh was designed by Carolyn Davidson9. In June 1972 the first running shoes with the Swoosh came out 10.  In 1980 Nike attained a 50% market share in the U.S. athletic shoe market11. Nike introduced the Air Jordan in 198512. Nike sells in 160 countries13. Nike is a public organization14. Nike was founded by Bill Bowerman and Phil Knight15. The president of Nike is Mark Parker16. Nike was founded as Blue Ribbon Sports in 196417. Nike officially became Nike in 197118. Bill Bowerman was Phil Knights track coach19. Nike paid $309 million to acquire Converse20. Nike has offices in 46 countries21. Nike has contracted more than 700 shops worldwide22. Nike’s Slogan Originated From a Convicted Killer23. Footwear Revenues Account for 58.3% of Total Revenues.24.The Nike Swoosh Was Designed for $3525. Revenues from “Men’s Training” are more than double that of “Women’s Training”26. Nike Owns Converse and Hurley International27. Nearly 15% of Revenues Come from Emerging Markets28. No Single Customer Accounted for more than 10% of 2014 Net Sale.29. Nike first went under the name “Blue Ribbon Sports”.30. The name “Nike” comes from the Greek goddess of victory.31. Ilie Nastase, a tennis star, was the first pro athlete to sign with Nike.

32. Nike has many marketing names, such as Nike Golf, Nike Pro, Nike+, Air Jordan, Nike Skateboarding, Team Starter, and subsidiaries like Bauer, Cole Haan, Hurley International, Umbro and Converse.

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33. Nike has factories in 45 countries around the world.

34. Nike’s first self-designed product was based on Bowerman’s “waffle” design in which the sole of the shoe was made by the pattern of a waffle iron.

35. Nike has a history of using inhumane labor practices to produce their products.

36. Nike has acknowledged these labor problems in the past and has promised to change.                 

37. Nike factories violated local minimum wage laws, payed subsistence wages and illegally forced massive overtime.

38. Nike factories subjected workers (90% young women and girls) to criminally dangerous, brutal sweatshops.

39. Nike supported military dictatorships that crush labor unions and worker protest.                                                                                 

40. Nike FY06 revenues were approximately $15 billion. They are the world’s leading designer, marketer and distributor of authentic41. athletic footwear, apparel, equipment and accessories for a wide variety of sports and fitness activities.42. Nike produces approximately 50,000 product styles per year.43. Nike sells products in more than 160 countries.44. Nike has approximately 28,000 employees worldwide.45. Almost 800,000 workers are employed in contracted factories around the world making Nike-branded products.46. Nike operations (owned and not directly owned) contribute to approximately 1.36 million tonnes of CO2 annually.  47. The company that became Nike was an importer and distributor of Japanese track shoes made by Onitsuka Company48. Workers at a Nike plant in Sukabumi say supervisors frequently throw shoes at them, slap them in the face, kick them and call them dogs and pigs.49. Nike admits such abuse has occurred but there was little they could do to stop it.50. The 10,000 employees at the Pou Chen plant make around 50 cents an hour.51. Nike has fired employees for wrongful reasons such as taking sick leave even though a doctor's note was given.52. Nike has over 1,000 overseas factories.53. Jeff Johnson was the first employee of Nike and also came up with the brand name.54. Phil Knight wanted to name the brand Dimension 6.55. The "Just Do It" campaign was first launched in 1988.

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56.”The Just Do It” campaign is now enshrined at the Smithsonian National Museum.57. The “Just Do It” slogan was Inspired by serial killer Gary Gilmore.Before Gary Gilmore was executed in 1977, he said "Let's do it."Carolyn Davidson, a Portland State University student, created the Swoosh for $3558. Davidson was given a diamond swoosh ring as well as an unknown amount of Nike stock in addition to the 35$.59. Foot Locker stopped carrying high end Nikes in 2003.60. Foot Locker was unhappy with the high prices of Nike's products.61. The original Nike Sports Research facility was opened in Exeter, N.H. no Beaverton, Oregon.62. Phil Knight came up with the idea for a sneaker company while he was writing a paper for college.63.The first shoe to have the swoosh was a soccer cleat.64. Nike has actually made sneakers in the USA back in the early days of the company, now they are made overseas.65. Geoff Petrie was one of the first NBA players to wear Nike, and the first Nike Basketball sneakers, the 66. Blazer, was named for his team.67. Phil Knight stepped down as president from 1983-84.68. The initial foundation of Nike golf was created by Bob Wood in 1984 and wasn't launched when Tiger 69. Woods signed to Nike in 1996.70. The Beatles first song in a commercial was "Revolution No. 9" and was for the Nike Air Max.71. The first Nike retail store was actually opened in California.72.Nike is the only footwear brand to become the leader of the industry, lose its position, and then gain it back.73. Michael Jordan didn't want to sign with Nike, but his parents made him meet with the brand.74. Mark Parker is the current CEO of Nike.75. The first Nike shoes were made inside a waffle iron.76. The Nike name comes from the Greek goddess of victory, and it’s pronounced "ny'-kee." Nike's first employee, Jeff Johnson, came up with the name.77.  Romanian tennis professional Ilie Nastase, "the Bucharest Buffoon," was the first athlete to sign an endorsement contract with Nike, in 1972.78.  Nike’s 1987 ad for the Air Max shoes was soundtracked by The Beatles’ “Revolution”.79.  Globally 88% of Nike Brand apparel contains at least 5% organic cotton.80. There are 48,000 Nike, Inc. employees worldwide.81.  Nike is clothing, footwear, and equipment supplier based in the United States.

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82.  The "Swoosh" logo was a design created in 1971 by Carolyn Davidson, a graphic design student at Portland State University.83.   Nike entered the golf game in 1986, just a year after introducing the Air Jordan basketball sneaker.84. Footwear Revenues Account for 58.3% of Total Revenues.85.  No Single Customer Accounted for more than 10% of 2014 Net Sales.86.  Oregon athletes test the latest Nike gear and Oregon coaches give Nike designers feedback about how products perform.

Appendix BKISS CHART

Stakeholder Know Infer So What to Do

So What Not to Do

Investors /Shareholders

-They have put faith into Nike-Chose to invest in Nike-Want Nike to be successful

-They want the best for Nike-They care about what happens to the company

-Maintain positive relationship- Keep them informed of major company

-Give them no information during a crisis-Ignore them

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- They will express their concerns

changes- Include them in important decisions/meetings- Address their concerns ASAP- Keep them informed on crisis situations and the steps being taken

Employees -Chose to work and continue to work for Nike

-They enjoy their job-They want Nike to grow and be successful- They rely on their jobs for an income source- Want job security

-Listen to any concerns or suggestions they have- Treat employees with respect and maintain a relationship with all of them- Make sure they are informed

-Consider them unimportant in a crisis-Avoid utilizing their skills- Mistreat them

Consumers -They like the products/services that Nike has to offer and prefer them over competitors-They are loyal to Nike

-They will continue to support the company- They pay attention to what is happening surrounding the company

-Keep providing high quality products-Show them how important they are to the company- Address their major concerns- Inform them during a crisis

-Change our products completely-Ignore them in time of a crisis

Government -Regulate Nike’s actions

-Keep an eye on the actions of the company

-Acknowledge and follow their standards

- Ignore their rules

Media -Media wants a story, good or bad

-They will take any necessary measures to

-Inform them in a timely manner with

-Respond to their questions with “no

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get a story accurate information

comment”

Community/General Public

-They are possible consumers and may choose to purchase our products

-They want quality products from a company with a positive reputation

- They are a primary audience-Provide them with quality products- Show them our positive image

-Disregard their wants/needs-Make our products unavailable to certain people-Deny that anything bad could happen to our company

Acknowledgements

-----------------------------------------

Rory Mileham, CEO

-------------------------------------------Gianna Torres, Public Relations Director

---------------------------------------------Sarah Frelich, Head Legal Consultant

----------------------------------------------Lindsay Briquelet, Head of Safety and Security

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---------------------------------------------Tyler Otto, Operations Manager

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