Phil+Knight+105

Born: February 24, 1938 Birthplace: Portland, Oregon Education: University of Oregon (Undergraduate degree); Stanford University (Graduate degree) Occupation: Co-founder and Chairman of Nike, Inc.
 * Philip Hampson Knight**


 * __Why Knight?__**

Since Nike is one of the most widely known companies with one of the most widely recognized logos, we wished to learn more about the man behind the "swoosh". The success of Phil Knight's company could be revealed through some in depth research and analysis using the tools we have learned to utilize in class. Also, there has been controversy surrounding Knight and his business practices. The slogan, "Just Do It" has rendered a positive effect on people's lives, but the motto may be applied in a negative way in regard to Nike's business practices. Is Knight too machiavellian with his "Just Do It" attitude? We wanted to learn more about Knight on a personal and professional level.

__**General Information and History of Nike**__ Nike was co-founded in early 1964 by Oregon natives Bill Bowerman and Phil Knight under the name Blue Ribbon Sports. In 1971, the founders cut ties with the Japanese shoe company, Onitsuka Tiger(now ASICS) and at the request of their first employee Jeff Johnson, the pair named their company “Nike” after the Greek goddess of victory. To go along with their new name, Nike enlisted the help of graphic design student Carolyn Davidson design their logo and the “swoosh” was born. In 1972, the new Nike footwear line was launched at the U.S. Track & Field Trials, held in Eugene, Ore. The company’s mission statement is “to bring inspiration and innovation to every athlete in the world.”

Nike has grown from its humble beginnings to become the market leader for athletic apparel, footwear, and equipment. The company has accumulated a diverse brand portfolio with the addition of affiliates like Cole Haan, Converse, Hurley, NIKE Golf, and Umbro. Nike is headquartered near Beaverton, Oregon, which is a suburb of Portland. Today the company operates in more than 160 countries while employing thirty thousand directly and nearly one million people indirectly worldwide. Nike is a publicly traded company on the New York Stock Exchange under the symbol NKE. Nike closed on Tuesday, October 4, 2011 at $85.73 per share with its five year low at $39.94 and posted revenue of $19.014 billion dollars in 2010.

Phil Knight presents an interesting challenge in regards to his personality. As the leader of one of the world's largest and most highly recognized companies he has a prominent public presence. However, to those who have known Knight, he comes across as a different type of person in more intimate settings. A more technical, theoretical look may give clearer insight as to how the personality of the businessman and the everyday man made him one of the most successful people.
 * __Personality Traits and Characteristics__**

//Openness// According to the openness description, Phil Knight would have a very high rating. Being the CEO of the largest athletic shoe and gear company whose mission equals his passion for outdoor athletics, Knight has been able to merge athletics with the pop culture of consumer’s decades younger. Knight has almost single-handedly turned Nike into more than a manufacturer; it has become a household name and lifestyle.

//Conscientiousness// Fortune 500 companies are often followed by scandals, and Nike is certainly no exception. Under Knight, Nike has been accused of using sweatshop style labor in Asia for many years. According to AllBusiness.com, Nike profited from extremely cheap labor in the developing economies of South Korea and Taiwan. After such heavy criticism, Nike instituted a code of ethics for the company to be enforced in Nike factories across Asia. Knight’s leadership led Nike to operate sweatshops in Asia, proving he scores low in the conscientious trait category,

//Extraversion// Despite being the CEO of one of the most recognized brands in the world, Phil Knight is often considered an introverted person. Many in the press have noted that he is “slightly stiff and a tad shy” (Sporting New, 2006). His company’s enormity often casts a shadow over the quiet diminutive man.

//Neuroticism// Phil Knight is certainly considered a neurotic individual. During football recruiting season, and especially National Signing Day, Knight is often seen around the Oregon Duck’s football office pacing by the fax machine as commitments come in. Being alumni of Oregon, Knight is certainly concerned with the success of the Ducks program. So much so that he built many of their athletic buildings and sponsored all their equipment all in the name of winning. Another example is a rumor that exists saying Knight wear’s a coaches headset on games days during the Ducks football season. Knight is so grossly involved in his alma maters program and it illustrates the neurosis. This illustrates that his emotional stability is linked to success, not only directly with his company, but indirectly through his school.

//Agreeableness// Knight can be described as both agreeable and disagreeable, depending on which Phil you see. The businessman Knight is a tough, determined individual focused on achieving success. He is willing to do what it takes to make his brand the most favored by athletes around the world. But it is the business that has also formed Knight into a human instead of an untouchable icon. When Nike almost folded under pressure from a Japanese shoe distributor, Knight knew it would take extraordinary effort take Nike from the depths of defeat to the pinnacle. In this sense, Knight is able to understand what it takes to win, and that it takes great sacrifice. But he is also a true businessman willing to do what it takes.



//INFP// Apart from the Big Five another trait based description of one's personality is available through the Myer's-Briggs Type Indicator Instrument. Through our analysis we have determined Knight to be introverted, intuitive, feeling, and perceiving. An INFP is described as someone who is "idealistic, loyal to their values and to people who are important to them. Want an external life that is congruent with their values. Curious, quick to see possibilities, can be catalysts for implementing ideas. Seek to understand people and to help them fulfill their potential. Adaptable, flexible, and accepting unless a value is threatened". When examining Nike and Phil Knight, we believe this describes him perfectly.

He has been described by employees as being reserved almost to the point of being shy. This may seem odd to those who see Knight as the face of an industry but by describing him as an introvert one can see why Knight was able to achieve what he has. He is very loyal people and institutions that have come to define his legacy (i.e. Oregon, his employees). He re-energizes by immersing himself in what he is comfortable with--loyalty to his past and his company. Others may be involved in his recreational pursuits but he does what he does for himself, receiving an internal gratification.

As a student Knight discovered that one of his passions was entrepreneurship. It was his ambition to start something that was his own, not follow in another's footsteps. Certainly he was successful in his pursuits. His intuition no doubt added to that entrepreneurial spirit. He looked for what was possible but not yet realized. This intuition no doubt allowed Knight to not only found Nike, but grow it to what it is today. Nike continues to expand into almost every aspect of an active person's life and shows no signs of letting up.

The life Phil Knight has led and the business he has constructed is guided by his internal values, as discussed in a later section. These values create the foundation that gives him direction in decision making. Every decision he makes is to give Nike that competitive advantage that has made it such a successful company. A person categorized as "feeling" makes decisions in this value oriented manner. He may not come across as a "feeling" type to a casual observer, but his heart is in his decisions. What is important to Phil Knight as a person is important to Nike as a company.

Nike's world famous slogan "Just Do It" embodies Knight's tendencies toward the perceiving trait. He attacks new possibilities, whether its in expansion of his business, marketing, endorsements, or products. He has never been afraid to go after something that he wants as illustrated by his entrepreneurial spirit. The spontaneity that comes with being a perceiver is viewed in what he has implemented in his employees. The active lifestyle he wants to lead he helps others to lead as well. He fosters the "Just Do It" attitude with athletic facilities and outdoor activities to expand people's lives and get them involved and diversify their lives.

//Locus of Control// In terms of his business we would classify Phil Knight as someone who has an external locus of control. Now, we do not doubt that Knight believes he controls many of his decisions on a personal level but his actions surrounding the running of his business suggest he reacts generally to those around him, particularly ethically. In an article published by Stanford they quote Knight reacting to a questions about Nike's questionable business practices. He states "Our business practices are no different than those of our competitors. But we are bigger, and thus more visible, so we get more flack." This sort of justification leads us to believe he has an external locus of control. That the ethics outside of his company deem it appropriate for his company to engage in it as well. In his mind, to stay competitive he must engage in what his surroundings deem acceptable.



__**Values & Attitudes**__

Ambition allowed Phil Knight to turn Nike into a multi-million dollar company. Even when manufactures in Japan and Asia did not answer his calls about partnering, his ambition motivated him to continue. One day he made a call to a factory in Kobe, Japan. He persuaded Tiger shoes to allow him to become a U.S. distributor of the shoes.

Furthermore, his imagination and marketing savvy allowed Nike to catapult to the top of the industry. By using top sports stars to market the products, Nike was able to cement sneakers as a mainstream fashion item. Knight once introduced himself by saying “I’m Phil Knight and I hate advertising.” This fact paired with his creativity led Nike to use famous, inspirational athletes to advertise their products. With this form of indirect adve rtising, the Nike brand became a symbol for achievement and greatness. Furthermore, on Nike’s website, it states that the Nike culture “embraces diversity and rewards imagination.”

Starting in 1996, evidence surfaced of Nike using sweatshops to manufacture their products. When conditions of the factories, wages, and ages of the workers surfaced, Nike’s profits declined. Due to the societal pressures, Knight and Nike were forced to face their ethical issues and promised change. Although it took a few years, Nike promised change in 1998. One New York Times editorial stated that Nike "set a standard that other companies should match." This allowed Nike to reverse the decline in profits and rectify their brand name.

As mentioned earlier, Knight has always emphasized an exciting, active life. Besides on campus fitness centers, employees also receive fitness center memberships. Knight believes that all children should be free to play. He is even quoted saying “Kids’ sports and fitness programs are being axed from schools and the country’s playgrounds aren’t safe anymore. Access to play should be a kid’s inalienable right. Nike wanted to lead the change to guarantee that these rights to children are preserved.” Knight wants to share his philosophy of living an active not only with children, but the entire world.

Knight’s desires for achievement and prosperity have pushed him to make Nike a leader in the sportswear industry. Everything started with a handshake between Knight and his college track coach. A company was born, and Knight evolved it into a global manufacture of athletic footwear and apparel. His need to succeed may have lead him to abandon his values and to arrive at unethical decisions; however, he turned Nike into the company it is today.

__**Motivational Style**__

Nike, Incorporated has grown to be one of the largest corporations in America, with over 34,000 employees worldwide. With such a vast number of employees, we took a look at what motivates individuals to seek, and retain, employment at this sportswear behemoth.

After reading testimonials from several employees, one thing was made apparent about the house that Knight built: if you had the drive to succeed, then you can go places in this company. Reviews of the ability to rise in the ranks at Nike were mixed. However, this can be attributed to the fact that the company has thousands of employees, creating high levels of competition. Douglas McGregor’s classification of individuals’ needs into Theory X and Theory Y is based upon those with lower and higher order needs, respectively. This means that Nike is attractive to people with both Theory X and Theory Y motivations. Those who are driven by lower order needs, such as safety and security find solace in the fact that job security at Nike is very high. While roles within the company may change, employee turnover rate is very low. Those who are driven by Theory Y are motivated by the ideas of self-actualization and growth, which are abundant at Nike. These individuals coincide with the “G”, or growth aspect of Alderfer’s ERG theory, where employees are motivated to succeed by the potential for personal growth and advancement.

Another attractive part of the infrastructure that Knight has created is the way that employment at Nike satisfies all three of McClelland’s manifest needs. The need for achievement is the first of these. Within Nike, there is such great competition that one need not look far for a challenge or a goal to accomplish. This transitions into a need for power, which is important if one wishes to rise in the ranks. There are many management opportunities within Nike, that those who feel the need to oversee teams and delegate tasks can easily find themselves in a position to do so with the hard work that comes with achievement needs. Furthermore, the need for affiliation may be the most satisfied need at Nike. Nike employees feel like a giant family, and have very strong ties to both the people they work with and the company they work for. You would have to work very hard to find someone with a different opinion. In fact, Knight himself frequents Nike’s office in Oregon, and is always open to interactions with Nike workers, regardless of their position in the company.

Another way to gauge the happiness of Nike employees is with the Herzberg two-factor theory. Hygiene factors, which create job dissatisfaction, are almost nonexistent at the company. Employees are very satisfied with wages and cherish their good relationships with coworkers very much. In fact, Knight and Nike go above and beyond the call of duty, sometimes turning potential hygiene factors into motivators. For example, while some companies make it hard to balance work and home life, Nike provides ample breaks and vacations, and even encourages employees to spend time with their families. Instead of providing a safe and acceptable workplace, the Nike offices in Oregon are on a beautiful, state of the art compound with amenities such as an immense employee gym and a diverse cafeteria focused on physical health. Nike is a company based around the idea that happy employees will have the greatest productivity, and they do everything they can to keep their employees motivated and satisfied. With all of these motivational factors, it’s no wonder that many Nike employees have the classic “swoosh” symbol tattooed on their bodies somewhere.

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__**Additional Links:**__

[] Nike Foundation

[] Forbes Profile

http://www.nikebiz.com/ Nike Corporate Website

__**Resources**__:

Duncan, J. (2007, January 22). 100 Best companies to work for 2007. Retrieved from []

Greenhouse, S. (2010, July 26). Pressured, Nike to Help Workers in Honduras. //New York Times//. Retrieved September 31, 2011, from [|http://www.nytimes.com]

Goldman, R., & Papson, S. (1998//) Nike Culture//. London: SAGE Publications Ltd.

Hartley, F. (2000). //Management Mistakes & Successes// (6th ed.). New York: John Wiley & Sons, Inc.

Krentzman, J. (1997). Phil Knight: The force behind Nike. Retrieved from []

//Movers & Shakers: The 100 Most Influential Figures in Modern Business//. (2003). New York: Basic Books.

Nelson, D., & Quick J. (2011). //ORGB//. Mason, OH: South-Western.

Nike, Inc. Code of Conduct (August 2010). Retrieved September 30, 2010, from [|http://www.nikebiz.com]

Nike Inc. Common Stock. Retrieved from http://finance.yahoo.com/q?s=NKE

Nike Reviews. Retrieved from @http://www.glassdoor.com/Reviews/NIKE-Reviews-E1699.htm

Roth, D. (2005, April 4). Can Nike still do it without Knight?. Retrieved from []

Scandalios, T. (2011, March 5). Phil Knight: The man behind the myth. Retrieved from []

Watson, B. (2009, May 15). Nike Layoffs: Swoosh felt ‘round the world. Retrieved from []

__**Images**__:

http://www.projectcontactafrica.com/NBAplayers.aspx

http://en.wikipedia.org/wiki/File:Logo_NIKE.svg

http://www.angelfire.com/nt/nunavut/nike.html