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Succession Planning Case Study

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Case Title:

Nike: Surviving after Phil Knight

Publication Year : 2005

Authors:  Mridu Verma

Industry:  Apparel and footwear

Region: USA

Case Code: SUP0005P

Teaching Note: Not Available

Structured Assignment: Not Available


OR





Abstract:
After announcing his resignation as CEO and president of Nike in November 2004, Phil Knight (Knight) names an outsider, William D. Perez (Perez), the former CEO of consumer-goods company S.C. Johnson, as his successor. Perez appears to be well-suited to help Nike’s metamorphosis into a less volatile, global consumer concern. Knight believes that Perez will soon adjust to Nike's insular culture. Perez has to win the confidence of and manage Nike's designers and marketers who are used to an almost unstructured work environment. Perez has joined with the knowledge that Knight has stepped back from active supervision of the company twice before. Both times the company has foundered, forcing him to return. Perez intends tolive up to Knight’s expectation and maintain the growth momentum. With the US market for high-end athletic footwear now at a mature stage, Perez looks for new markets to tackle.

Pedagogical Objectives:

  • To discuss Phil Knight’s unique style of functioning and the role it has played in Nike’s growth
  • To discuss the importance of managing succession.

Keywords :  William D. Perez; Marketing; Retail; Growth;Succession Planning Case Study; Brand

Contents : 
Nike’s Business
Nike and Phil Knight
The management structure
Nike’s financial performance
Nike’s EPS Performance

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