Nike Communication Strategy - Case Study Example

Nike Communication Strategy Contents Contents 2 Internal communications at Nike 3 Reporting in terms of HR and CO comm 3 Communication from up and down 4 Internal branding 4 Type of crisis that Nike had to face recently 5 How did the company prepare and react to crisis  5 Type of communication used to deal with different types of crisis (product, endorsement) 6 Ways Nike deals with media and employees security 6 Affect on business in term of sales and hiring new employees 7 Works Cited 8 Name of the Student Name of the Professor Course Number Date Internal communications at Nike Nike employees are well aware of the fact that their product is superior to many of the competitors. At Nike, quick decision making is valued and employees are expected to make quick decisions at all levels. Nike stores globally take their own decisions pertaining to matters restricted to the store. The director of internal communications has his office in the Nike inc. world headquarters at Beaverton, Oregon. Nike has developed a highly innovative communication strategy, which engages Nike employees through targeted messages and tactics. Nike has separate communication strategies for different business functions. The internal communication team in Nike headquarters creates participatory programs for Nike employees in all locations worldwide so as to support business goals of Nike Inc. The internal communications team also organizes global corporate communications events for better understanding and correlation with the headquarters and global locations (“About Nike, Inc.”). Reporting in terms of HR and CO comm Nike launched the sustainable performance report in 2011, which marked the change in reporting style of Nike Inc. The company introduced a strategy, where they would not release a single report containing the strategy, progress and performance. They would instead publish a summary of the report online. This online report would be interactive and self-explanatory. Besides that, Nike has also started reporting major developments in products and corporate responsibility achievements and initiatives through various websites. The subsequent report of Nike has been based on this strategy and is available online with the option of being printed on demand (“Labor Policies”). The managers report to the product manager at Nike global headquarters from all locations worldwide. Nike maintains a very strict and comprehensive labor policy, which is followed in all its factories and stores. The contract employees working with Nike have a set of policies pertaining to them, which is followed by the company. Employees can directly report to location or regional human resource managers, who in turn inform managers at the headquarters, in case of any issues with respect to labor policies (“Reporting at Nike”) Communication from up and down Nike publishes a newsletter periodically, which mentions its achievements, in terms of sales, innovation, community building or accolades received. The newsletter also contains important announcements about decisions taken by management of the company. The Nike newsletter is circulated to all company locations globally so that all employees can be well aware about organizational happenings as well as stay connected with decisions taken at the headquarters. This newsletter is originally sent to all stakeholders in online format, which can be downloaded or printed as per convenience (“Communication”). Most of the reporting or communication at a particular location is done face-to-face. Communication with headquarters is conducted mostly through internet in order to save on travelling costs of employees. Internal branding Nike has an internal communication policy, which aims at internal branding of products so that employees understand significance of the brand. Nike has incorporated values of sports, like, teamwork and perseverance and has adopted them in the company culture. Emotions are infused in daily functioning of the employees so that they remain competitive in order to upkeep the spirit of sportsmanship. Hence, each employee can identify himself as a part of the team that is called Nike Inc. Organizational communications are so designed that the organization appears to be a team of sports, where manager is the captain. All employees are expected to receive the essence of sports management, which they use in their daily work (“How we work”). Nike is endorsed by athletes who have a reputation for winning and a passion for the sport they play. This policy is in unison with the internal branding initiatives of Nike without reshaping the value delivery mechanism. Many players only link themselves with the brand of Nike because they connect with its advocated values. Nike has an ultimate goal to enhance lives of individuals through sports and fitness. The work culture at Nike is so designed that it encourages employees to understand reasons that motivate people to play the sport of their choice. This understanding is utilized to design products, which form an integral part of Nike`s value proposition. At Nike, emotion is used in everyday work to remain competitive in the workplace. Nike employees use sporting metaphors for carrying out their everyday business. Most managerial policies are borrowed from sports management techniques and committee names also propagate a similar thinking among employees. The entire work environment is seen as an extension of the sports game. Thus, through such branding initiatives, Nike ensures that all employees meet the ultimate goal of creating a world class sporting product (“How we work”). Type of crisis that Nike had to face recently Nike has outsourced most of its manufacturing to vendors who provide cheap materials as this helps to produce world class sports products at effective prices. Recently, it was discovered that working conditions in some of the manufacturing locations of Nike`s vendors, most of whom are located in developing nations, are far below the basic human standards. Most of these workers working for more than ten hours a day were paid meagerly by the vendors, which was below the minimum US wage rate. It was also witnessed that several Nike`s vendors employed children who were below the age of fourteen. These revelations had created an upheaval in the media circles. Nike`s immediate response to these revelations was that of denial of any responsibility. According to Nike, working conditions of suppliers were the responsibility of vendors and the government authorities where the manufacturing sites are located. This led to a huge communication crisis and brand value of Nike was severely affected. The corporate image of Nike was described as synonymous to slave wages, forced overtime and child abuse (“Sustainable Business”). How did the company prepare and react to crisis  The CEO, Philip Knight had held a press conference where he made promises to improve image of Nike, which was tarnished after the communication crisis. Some of the promises included one to meet all U.S. Occupational Safety and Health Administration’s (OSHA) standards of indoor air quality at all manufacturing locations in the US or abroad, including facilities operated by vendors of Nike. He also promised to implement a rule across all footwear and apparel factories producing products for Nike, which mandated only adults above the age of 18 to be employed therein. All facilities of Nike will be monitored by non-government organizations and their reports would be made public (“Empower Workers”). The CEO also vouched to implement education programs in all manufacturing locations of Nike or its vendors. Through this program, Nike will encourage workers to complete their education through education continuation programs and funding university research on business practices to be implemented in factories of Nike (“Support Communities”). He also claimed to start a micro-enterprise loan program, where all workers working in company factories would receive benefits of starting their own micro venture. Type of communication used to deal with different types of crisis (product, endorsement) Nike has a communication crisis plan, which is used to deal with any crisis. The communication plan has a set of directives, which are to be followed in case of a crisis. According to the plan in case of a crisis, Nike will estimate severity of crisis and adapt its actions accordingly. Different actions are required for managing a crisis depending on location of the crisis, whether local or global. After collection of maximum amount of information, a communication plan has to be framed by the company, which must be brief as well as effective. In case of a crisis, specific roles have to be assigned to different individuals for holding communications in public, writing press release and giving speeches. The receivers of the information, which explains facts for the purpose of neutralizing crisis, should be identified and properly communicated the same. The communication explaining the company`s point of view should be clear, so that there are no rumors. All employees should be duly apprised about the crisis, facts and the communication plan so that everyone behaves appropriately. This in turn would minimize damages caused by the crisis. The company must take all possible steps to upkeep brand image, restore brand equity and gain back public trust (“How we work”). Ways Nike deals with media and employees security Employees of Nike are part of many network groups within the organization (“Employee Networks”). So, they communicate with each other within the network in order to understand the culture and problems encountered by Nike employees across the globe. This also facilitates transfer of communication from one part of the network to another. Nike is also active in social media circles where its employees are encouraged to participate. The employees communicate with the media, corporate and public at large over the social media platform. This helps to conduct a proper and balanced communication with the mainstream media in general. The employees enjoy multiple benefits from developmental programs organized by the company. Affect on business in term of sales and hiring new employees The communication strategy helps to paint a brand image of the company in minds of prospective customers. It also helps the company reach out to maximum consumers through the open platform of social media. The strategy enlarges brand vision and improves brand cognizance. It also builds brand equity of Nike through customer retention. The ultimate aim of the communication strategy is to augment brand loyalty and brand reach. Hence, through such initiatives, sales revenue of Nike is greatly heightened. Prospective employees are also able to understand values on which the company functions through this communication strategy. The employees also interact over social media, which helps prospective employees comprehend work culture at the company. Therefore, the communication strategy of Nike not only improves sales, but also improves brand equity as well as hiring of new employees. Works Cited “Sustainable Business”. Nikeresponsibility. Nike.Inc, 2014. Web. 16 May. 2014. “About Nike, Inc.”. Nikeresponsibility. Nike.Inc, 2014. Web. 16 May. 2014. “Communication”. Nikeresponsibility. Nike.Inc, 2014. Web. 16 May. 2014. “Employee Networks”. Nikeinc. Nike.Inc, 2014. Web. 16 May. 2014. “Empower Workers”. Nikeresponsibility. Nike.Inc, 2014. Web.16 May. 2014. “How we work”. Nikeresponsibility. Nike.Inc, 2014. Web.16 May. 2014. “Labor Policies”. Nikeresponsibility. Nike.Inc, 2014. Web.16 May. 2014. “Reporting at Nike”. Nikeresponsibility. Nike.Inc, 2014. Web.16 May. 2014. “Support Communities”. Nikeresponsibility. Nike.Inc, 2014. Web.16 May. 2014. Read More