Section 2 - PMO Mission, Charter, and Competency The purpose of the Portfolio Project is to synthesize current research about the project management office (PMO) for the purpose of developing a PMO re

NIKE INC. PROJECT MANAGEMENT 7

Nike Inc.

Name

University

PJM560 Project Management Office (PMO)

Dr. Aktar Shah

January 30, 2020

Nike Inc.

Nike Inc. manufactures and distributes athletic shoes and other athletic apparels. The initial goal of Nike was to distribute low cost, high quality to American consumers from Japan. Today, the company dominates 33% of the global market in the athletic shoe industry, operating more than 20,000 stores in more than 100 countries worldwide. Nike’s primary market includes Europe, the United States, and the Asia Pacific. The company not only sells sportswear, but also leisure clothes in its Nike factory stores, Nike stores, Cole Haan stores, Nike Town, and online stores. Nike’s vision is to bring inspiration and innovation to every athlete in the world. The mission that drives the company is to do everything possible to extend human potential. To achieve this mission and vision statement, the company makes its products more sustainable. Nike utilizes its creative and diverse global team and positively influences the community to achieve its mission and vision. Its values include inspiration, innovation, authentic, connected, distinctive and every athlete in the world.

Industry Type

Nike Inc. focuses mostly on athletic footwear for different sports and leisure. The global athletic footwear industry is divided based on the product type such as aerobic wear shoes, running shoes, hiking shoes, shores. These products can also be segmented according to distribution channels such as shoe stores, supermarkets and hypermarkets, sports and athletic goods stores, and online stores. Lastly, footwear products can be segmented depending on the end-user such as Women, men, and children. The major players in this market include Adidas, Asics, Fila, Puma, and Under Armor (Marques et al., 2016). Athletic footwear market is affected by innovation that market player makes in the process of product development and changing trends in different regions of the world (Marques et al., 2016). Nike has more than 76,700 employees working in the global market. Driven by the mission and vision statement and cohesive values, employees are determined to achieve maintain its competitive advantage and increase the company’s market share.

Nike Inc. Culture

Nike has been having challenges in its leadership because of non-diverse leadership. Due to this, valuable employees left the company, a bad decision was being made and business suffered. Currently, the leadership is working towards building a culture of inclusivity where women are included in the team and their views listen (Brohi et al., 2016). The recent promotion of Montage and Leonard to influential position to make this change. More so, Nike Inc. uses the power of sports to drive the demand for its products. Through the culture of inclusivity, the company is determined to achieve a sustainable future, where every person thrives in a healthy planet. Besides, Nike contracts celebrity athletes to generate the demand for products. More importantly, Nike’s culture combines traditions, values, habits, and behavioral expectations for employees (Yao, 2019). The company gives a set of instruction to employees and expectation on how to do their jobs as well as how to relate with customers and other employees. Strategies and policies are in place to promote an organizational culture to promote business resilience and competence.

Executive Sponsors and Shareholders

Philip H. Knight is the Chairman of Nike Inc. and the co-founder of the company. Mark Parker is the Executive Chairman leading the way for Nike and promoting different products in the market. the corporate governance is composed of Ann Miller, VP, Corporate Secretary and Chief Ethics and Compliance Officer; Matt Friend, CFO; and Chris Abston, VP, Corporate Controller. Other key stakeholders include Travis A. Knight and Trevor Edwards. In addition, the institution that holds shares in the company. The top five institutional stakeholders include Vanguard Group (103.5M shares), SSgA Funds Management (59.5M shares), Blackrock Advisors (59M shares), Capital Research and Management (79.3M shares), and Wellington Mgmty (28M) (Yao, 2019).

Existing Project Management in Nike Inc.

The company has developed ten strategic decision areas to help in streamlining operations as well as productivity for effective achievement of business objectives and goals. Nike considers talent management, total quality management and product development in decision-making. Firstly, Nike considers goods and services design to ensure that its products align with the business goals and organizational capabilities. This is achieved by designing products based on current market preferences and advanced technology. Also, process and capacity design to prioritize efficiently of production to ensure adequate, and effective production. Managers utilize continuous improvement strategies to ensure production goals and needs are based on market trends (Ferguson, 2017). More so, quality in the processes of production is a key consideration in project management. Managers ensure that decision made on processes and products satisfy customer’s expectations about the product quality. High-quality standards are set, and total quality management applied in the production of goods.

Furthermore, location is a crucial concern in Nike’s project management to minimize costs and ensure efficiency through proximity to suppliers, employees and target market. Moreover, layout design at the company’s facilities is a concern for project management. Layout design helps optimize workflow in the facilities concerning human resource, technology, inventory requirements, and capacity requirements (Brohi et al., 2016). Similarly, supply chain management promotes efficient production in the company through supply chain automation and optimization of transport requirement for suppliers, distributors, production equipment, and retailers. Project management offices also promote human resource adequacy and maintenance through internal leadership development, coaching and mentoring (Ferguson, 2017). Project management considers inventory costs to maximizing effectiveness and efficiency. Project managers use the perpetual method of inventory management such as continuous monitoring as well as moving inventory from supply chain to retailers and distributors. Lastly, maintenance is applied to ensure the adequacy of all resources such as human resource, facilities and capacity.

Perceived Benefits of Project Management Office

The role of a project management office is to maintain an overview of projects and ensure that these projects align with the company’s strategies. Among the crucial goals of project management office is to establish a good business relationship between a company and external organizations and stakeholders. This refers to the overarching rationale in project management. Among the benefits perceived from overarching rationale, include increased scalability, easy management, improved efficiency, and improved consistency. Good business relationship with customers, suppliers and other organizations because of the easy flow of information, being informed about market trends and motivated employees. Similarly, PMO is perceived to promote long-term goals. Among these goals is expanding market share to other regions of the world. Other regions in the world demand for footwear is increasing. PMO can help understand the needs in these new markets and consumer preferences as well as purchasing power.

Moreover, Nike can achieve is the expansion of its range of products through PMO. Nike can expand production to include other sports apparel such as the products sold under the brand. Currently, Nike sales and distributes products branded by the company, but produced by an external organization. PMO can help in the analysis of these new products and ways to penetrate the market (Marques et al., 2016). Among the first year, the specific goal is to expand market share to new regions of the world. This can be measured by evaluating the sales made in the first year from new markets. Finally, the company can strive to innovate new products that apply to the new markets.

References

Brohi, H., Prithiani, J., Abbas, Z., Bhutto, A., & Chawla, S. (2016). Strategic Marketing Plan of Nike.

Ferguson, E., (2017). Nike Inc. Operations Management: 10 Decisions, Productivity. Panmore Institute. Retrieved on 29 January, 2020 from http://panmore.com/nike-inc-operations-management-10-decisions-areas-productivity

Marques, C. S., Leal, C., Marques, C. P., & Cardoso, A. R. (2016). Strategic knowledge management, innovation and performance: a qualitative study of the footwear industry. Journal of the Knowledge Economy, 7(3), 659-675.

Yao, D. (2019). Nike inc.-footware and apparel (Doctoral dissertation).