The Nike history Essay

Nike was founded by Mr. Phil Knight and his past manager Bill Bowerman in 1964 and they started Blue Ribbon Sports. Knight ‘s first shoe was called Tiger and so began distribution of places. Blue Ribbon got great success in 1971 and Knight changes the company name “ Nike ” . In 1971 it introduced Nike ‘s first trade name line. Nike launched its merchandise line in 1979. The new version of its Air shoe which was really successful and it was known as Air Jordan ; introduced in 1985. Nike opened its first retail mercantile establishment in Portland, Oregon in 1990. In 1991 the company was really successful and its gross reached USD $ 3 billion. Company began selling its merchandises straight to clients from its web site. Nike is the universe ‘s prima athleticss and athletic places. Nike is the major maker of athleticss equipment with $ 18.6 billion USD in the twelvemonth of 2008. Nike has 30000 employees in worldwide. ( Nikebiz: company overview, 2010 )

Nike Mission Statement

“ To convey inspiration and invention to every athlete* in the universe * If you have a organic structure, you are an jock. ” ( nike, 2010 )

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Nike had generated net incomes of $ 97.4 million and its net income dropped down by 50 % in February 2001. Nike said that it was because of the failure of supply concatenation package produced by i2 engineerings. Both companies blamed each other. This failure besides effected Nike ‘s repute. The supply concatenation package was the first section of NSC ( Nike Supply Chain ) undertaking from SAP and besides client relationship direction package from Siebel System. Analysts pointed out the mistake of customization of the package and over demand prediction. ( Koah, 2004 )

Company successfully implemented ( NSC ) Nike Supply Chain undertaking by 2004. The ( NSC ) Nike Supply Chain undertaking is centralized be aftering traveling and fabrication. At last Nike got success in Implementing ERP and it became the coveted attack for those who want to implement the ERP systems in their company. Christopher Koch ( Editor of CIO Magazine ) stated that “ If it was easy, everyone would merely make it. ” In the late 1990, most companies avoided to follow ERP because of the immense cost of ERP systems. ( Koch, 2004 )

“ The lesson of Nike ‘s failure and subsequent recoil lies in the fact that it had a sound concern program that was widely understood and accepted at every degree of the company. Given that resilience it afforded the company, in the terminal the i2 failure turned out to be merely a velocity bump. ” ( Koah, 2004 )

Merchandises Range

Nike has broad scope of athleticss equipment, running places, and New Jerseies and may other merchandises as shown in figure 1.

ERP ( Enterprise Resource Planning )

ERP entitles a company ‘s information system which can convey more closely the company ‘s sections and maps like human resources, finance and stock lists. It besides creates the nexus between clients and manufacturers.

Introduction of ERP ( Enterprise Resource Planning )

Enterprise Resource Planning is the endeavor system tool which manages demand and supply. It has the ability to do nexus between clients and providers. ERP besides provides the high grade of integrating between buying, fabrication, selling, gross revenues, logistics and selling. ERP is the tool which can supply high degree of client services and productiveness and besides lower the cost. ( Wallace & A ; Kremzar, 2001 )

Enterprise Resource Planning is a company which addition it gross revenues by 20 % because of ERP. The frailty president states that “ ERP has provided the key to going a truly planetary company. Design can be made with the accurate informations and with the procedure that concretes demand and supply across boundary line and oceans. This alteration is deserving billion to us in gross revenues worldwide ” . ( Wallace & A ; Kremzar, 2001 )

The Director of ERP “ For the first clip of all time, we have a good grip on our hereafter demands for constituents natural and stuffs. When our client demand alterations, weaa‚¬ ” ourselves and our suppliersaa‚¬ ” can pull off alterations to our agendas on a really co-ordinated and controlled footing. I do n’t see how any company can make effectual supply concatenation direction without ERP. ” ( Wallace & A ; Kremzar, 2001 )

Beginning of the Term ERP

The Enterprise Resource Planning ERP developed from Manufacture Resource Planning ( MRP ) . The ERP was introduced by an analytical house Garner. Enterprise Resource Planning has all the maps of an endeavor except administration concern or charter. Many administrations like IBM, Dell and HP Microsoft, Intel and many other administrations are now utilizing ERP systems. The ERP systems are typically for big and more loosely based applications although it is besides used in little and average sized concerns. The ERP systems provide standardisation, lower care and it can hive away all informations in one database. So, we can state that it has greater describing capablenesss. ERP includes other applications like Manufacturing Resource Planning ( MRP ) , Financials Resource Management ( FRM ) , Customer Relationship Management ( CRM ) , Supply Chain Management ( SCM ) and Human Resources Management ( HRM ) . ( Leon, 2008 )

Overview of ERP

Many administrations choose to implement one portion for ERP systems and stand-alone systems for the other ERP applications need to develop an external interface to the other ERP system. Because in an administration one seller choose to utilize human resource direction system and the fiscal system take another and integrating between those systems. It is really common in midsized retail merchant and the retail sector will hold a point of sale ( POS ) and fiscal application so they have a specialised application to manage other concern demands like logistics and selling. ( Leon, 2008 )

The quality of ERP system is that it provides a individual database which contains all the information for the package faculty besides shown in figure 3:

  • Manufacturing
  • Supply Chain Management
  • Financials
  • Undertakings
  • Human Resources
  • Customer Relationship Management ( Leon, 2008 )

Reasons for Buying ERP Software

In these yearss when the concern environment is progressively complex and extremely competitory so the administrations need the IT system which is extremely competitory with clip direction. The administrations need the outstanding public presentation in their concern by using the clip in the right manner. Enterprise system use the company clip right. Enterprise Resource Planning is the planning in which the concern resources like stuff, employees and clients moved from one province to another province. An ERP system maintains the information which connects with the concern maps like fabrication, supply concatenation, Management, finance, human resource, client relationship direction. ( Leon, 2008 )

Reasons of ERP undertakings Failure

Sometimes ERP undertakings fail if you do non implement them good. There are some of the grounds for the failure of ERP failure.

The company selected the incorrect package of ERP for the company. The preparation of employee is besides really of import and some administrations do n’t develop good their employees. Some package is to a great extent customized and if these are non match with the company ‘s IT substructure so there can be job. If we do non implement the effectual alteration direction schemes so it can be the consequence of failure of the undertaking. If the concern amalgamation leaves out the work in the procedure so it can be besides a large loss. ( Glenn, 2008 )

There are besides some factors from where we can accomplish the successful ERP undertakings by choosing the right package for the company. Give the right preparation to employees. For implementing the ERP we have to pull off each attack and use the best patterns for implementing ERP package. ( Starinsky, 2001 )

I found some of import worlds about ERP are that there is no perfect ERP system exists. We can non state that any ERP execution is of all time perfect. If two companies have the same ERP package but the execution can non be the same because every company has its ain manner of execution. ( Leon, 2008 )


Supply Chain Management is a web that is involved purchasing, doing, traveling, selling and distribution. ( Hugos, 2006 )


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