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MANAGEMNT INFORMATION SYSTEM IN A NIKE COMPANY
SUBMITTED BY :
Kinza Rafique 2121109039
Fatima Sharif 2121109034
Adeeba Asif 2121109001
Malika Majeed 2121109049
SUBMITTED TO :
Miss Ayesha Jalal
[ GOVT ISLAMIYA COLLEGE COOPER ROAD LAHORE }
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TABLE OF CONTENTS
INTRODUCTION OF NIKE .......................................................................................................... 3
NIKE MANAGEMENT INFORMATION SYSTEM ................................................................... 4
Key Types Of Information System That Nike Follow : ................................................................. 7
1. Virtual Systems .................................................................................................................... 8
2. Expert Systems ..................................................................................................................... 8
3. Financial System................................................................................................................... 9
4. Transaction-Processing Systems ........................................................................................ 10
5. Process Control Systems .................................................................................................... 10
6. Office Automation Systems ............................................................................................... 10
7. Emerging Trends & Technologies Digital Ecosystem ......................................................... 10
8. Online Shopping System .................................................................................................... 11
Recommendation .......................................................................................................................... 11
Conclusion .................................................................................................................................... 12
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INTRODUCTION OF NIKE
Nike company has managed to build a household name, particularly in the field of sports
footwear, equipment, apparel, and sports and fitness accessories. This achievement has been
partly because of its close collaboration with high-ranked athletes such as Michael Jordan,
John Mcenroe, Bo Jackson, and Deon sanders among others who have aided the company over
the years to build a reputable name and international brand. The company is often synonymous
with its phrase “just do it” that inspired subsequent generations of sports athletes to excel both
at their sports and in life..
The company is based in Beaverton, Oregon. Nike is described as a global market leader in
athletic footwear (its flagship product). By 1998, the company had exceeded revenue of $9
billion (kumar 226). It continues to grow immensely, thanks to the excellent human resources
who have developed business systems that steer the company towards success. In fact, the
company’s phenomenal and intriguing success has been largely due to its visionary strategy
that has involved the outsourcing of manufacturers from low-wage countries to allow it to pour
its financial resources into an aggressive marketing scheme.
In fact, according to one of the company’s vice president, the business has no single clue
concerning manufacturing. Rather, it is an expert when it comes to marketing. Currently, the
company has operations in six continents. It has employed a total workforce of 1 million,
among them shippers, suppliers, service providers, and retailers.
Vision
Mission
To remain the most authentic
The company’s vision is to bring
connected and distinctive
innovation and inspiration to
brand
every single athlete in the world
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NIKE MANAGEMENT INFORMATION SYSTEM
Nike's Management Information System (MIS) primarily refers to a complex network of integrated
systems that collect, analyze, and distribute data across various departments within the company,
including sales, marketing, production, and supply chain, allowing Nike to make informed
decisions regarding product development, customer engagement, and overall business strategy,
with their key component being the "Nike Plus" platform which tracks customer behavior and
preferences through their website and mobile apps to personalize marketing and product
recommendations.
Nike use several types of information systems to help it shine and assist in the process of it being
one of top athletic industry.
• An information system (is) collects, processes, stores, analyzes, and disseminates
information for a specific purpose.
• An information system includes inputs (data, instructions) and outputs (reports,
calculations).
• It processes the inputs and produces outputs that are sent to users or to other systems via
electronic networks and a feedback ,mechanism that controls the operation .
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Nike has a complex strategy to integrate social media, a complete approach that includes
multiple parts. The goal is to maxim the brand's exposure, impact, and interaction across
different platforms A vital aspect of this approach is developing and managing engaging content.
Nike's social media narrative-driven content that transcends essential product advertising.
Nike creates a collection of material that strongly connects with various target groups by skillfully
crafting ,compelling stories, using endorsements from athletes, and implementing creative
marketing strategies .
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Nike's primary strategy is using influencer relationships to enhance its message and expand
its audience (Fontaine, 2020). Nike leverages collaboration with athletes, celebrities, and
social media influencers to access their large audience, ultimately amplifying brand visibility
and trustworthiness. The brand carefully selects and organizes these partnerships to match its
core values, guaranteeing genuine and meaningful connections with the intended
audience(Hashim, Mukhtar 2019). In addition, Nike's focused campaigns are a
distinguishing feature of its social media approach. These advertisements are tailored to
particular groups, targeting diverse interests and preferences on various social media sites The
.brand's adeptness in customize content for platforms such as Instagram, Twitter, Facebook, and
YouTube highlights its comprehension of each site's distinct dynamics and user behaviours
Notably, Nike does not only provide material, but actively involves its audience via interactive
efforts. Customer engagement initiatives, such as campaigns using user-generated
content, prizes, polls, and interactive storytelling, foster a sense of community and stimulate
active participation from followers (Dineva, 2023). This strategy of prioritising involvement
strengthens customer loyalty and positions Nike not just as a manufacturer of sportswear but
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also as a centre for fans throughout the globe, fostering a sense of community and lifestyle.
The efficacy of Nike's social media strategy is substantiated using a blend of primary and
secondary research methodologies. Preliminary research entails doing case studies,
scrutinising social media analytics and consumer behaviour patterns, and facilitating a
detailed comprehension of audience preferences and interactions (Sadiq, Safie, Abd Rahman
& Goudarzi, 2021). Secondary research entails thoroughly examining academic papers,
industry reports, and interviews with marketing specialists, which helps provide a broader
perspective and confirm the findings gained from primary sources. The use of several data
sources in this triangulation process guarantees the strength and accuracy of the results,
which in turn directs Nike's continuous strategy improvement and sets a standard for other
businesses seeking to enhance their social media influence.
Key Types Of Information System That Nike Follow :
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1. Virtual Systems
To continue realizing success in a very competitive and dynamic consumer market, the company
has had to operate its global virtual systems that it manages from its headquarters back in America.
In its implementation, the company contracted nations and geographical areas that had a low cost
of labor, thus restricting its production department to the task of supervision and management of
quality. Through proper management of its virtual systems, the company has managed to
coordinate each of its processes that are spread across the globe with the view of bringing these
components together at the right point in time (Liu and Du 51).
Moreover, its virtual systems allow the company to manage the constant supply of all its finished
products into the global market without much delay. It supplies over 300 new designs on an annual
basis. To reduce the probable risk of outsourcing third parties, these third parties are directly linked
to the company’s information systems, a plan that has resulted in an overall creation of a value
delivery system (Humphries and Gibbs 21).
2. Expert Systems
The company has developed its expert systems that it uses to acquire preliminary information
and/or make comparisons among its candidates. The system is structured as a computer interview
that requires candidates to answer a series of several multiple-choice questions that are well
tailored to the systems job. The answers to the questions are then compared with profiles that are
developed in correlation with the candidates in question.
In addition, the company can use the computer interview or expert to screen for unqualified
applicants that do not conform to the merits of the interview. The expert system is highly
developed. It can even detect and measure contradictory responses of the applicants while
incorporating the use of different software into its program (Bohlander and Snell 282).
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3. Financial System
The company’s financial system entails giving its retailers time to pay for most of their purchases
while ensuring that it has enough cash to pay its suppliers. In this regard, the company’s financial
system is designed to control its cash needs, evaluating its credit policies, and evaluating and
estimating the level and value of its receivables.
Controlling its cash needs means investing during seasons when it has excess cash and/or
borrowing funds in situations of cash shortage. In this respect, the company ensures that its system
does not conflict with that of its lenders to maintain good relations. Concerning the evaluation of
its credit policies and the level and value of its receivables, the company compares the receivables
of the current year with the receivables of the previous year (Needles and Powers 400).
Problems, Options, and Possible Solutions
In spite of its well-developed and efficient virtual supply system, this form of system is combated
with various drawbacks that the company should address to ensure maximum efficiency in their
implementation. The challenges include the high cost purchase and maintenance of the technical
equipment needed to manage these virtual systems, lack of a face-to-face interaction with the
suppliers, thus posing difficulty in building a concrete relationship with the suppliers, and the
possible huge losses if control of such systems is not properly done (Tucker 10).
To solve these issues, the company needs to incorporate diversity in its virtual system such as
senior management meeting up with the stakeholders involved in the system on a face-to-face
platform. The goal is to supplement the telecommunications and videoconferencing that is the
common mode of communication among the members who use the virtual system.
Another major problem facing Nike’s management process is the risk involved in the outsourcing
of external suppliers and manufacturers in its global virtual chain. The company employs over
800,000 workers who are located in over 52 countries most of which have very weak local
regulations.
This situation leaves the company with the task of policing its suppliers in its many geographical
locations, thus posing a huge challenge to its management. To overcome this challenge, the
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company should formulate and implement operations information systems that can allow it to
monitor the activities of its contracted suppliers and manufactures who are located anywhere in
the world . There are various types of operations information systems that are applicable to Nike
Inc.’s organizational structure. They include:
4. Transaction-Processing Systems
Transaction-processing systems are involved in recording and processing data that may result
from operations relating to the business such as changes in inventory, supplier purchases,
customer sales, and employee wages and salaries. A transaction processing system collects data
from such transactions and stores it in a specified database. It is from the information stored in
the database that the organization can produce reports such as supplier transaction reports .
5. Process Control Systems
Process control systems monitor and control the ongoing processes performed by its contracted
manufacturers to keep track with the quality and quantity of their production activities. An
example of such an information system is a system that controls and/or co-ordinates the
production processes by the manufacturer who monitors each phase of production (Daft and
Marcic 227).
6. Office Automation Systems
Office automation systems combine modern hardware with software such as email,
teleconferencing, word processers, and desktop publishers that enable the business to handle
tasks of publishing, as well as distributing information within its management circles. These
systems can also make use of data from other modes of operations system to transform manual
procedures of accounting into electronic or automated systems that can make crediting decisions
7. Emerging Trends & Technologies Digital Ecosystem
A remarkable technological system that has developed is the expert system termed as the digital
ecosystem, which has allowed athletes to self-track their individual progress to improve their
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performance. Besides its immense assistance to athletes through its ability to set performance
goals and stay motivated, this expert system has been instrumental in guiding the innovation of
better products by athletic wear and equipment companies such as Nike Inc. In addition, the
technology has been well received by athletes who use the systems (Lin, Foster, and Scifleet 126).
8. Online Shopping System
Today’s society has a fast-paced way of life, which has given birth to the idea of innovation of an
online shopping platform where buyers can directly buy from their favorite retailers and/or
brands by the click of a button. The popularization of such a system has allowed manufacturers
and retailers such as Nike Inc. to expand their businesses on a global scale due to the reduction
in the costs of operation such as maintenance of retail outlets and/or improvement of their
working efficiency as opposed to the traditional shopping styles.
Online shopping systems have proven to be a powerful source of information due to the
interactions between the businesses with their customers. In addition, according to Stanford-
Smith and Kidd, some companies have gone ahead to develop applications through which users
can shop directly using their Smartphones as long as they are connected to the internet .
RECOMMENDATION
The social media approach used by Nike has proven to be very effective, providing essential
insights and practical advice for firms aiming to enhance their online visibility (Atherton,
2023). Authentic storytelling is highlighted as a fundamental suggestion, underscoring the
need to create storylines beyond product-focused advertisements. Brands should prioritise
crafting captivating narratives that deeply connect with their audience, reflecting the brand's
core values, purpose, and beliefs.
Through the genuine establishment of emotional connections with customers via compelling
storytelling, businesses can create enduring relationships and cultivate a feeling of community.
Moreover, using user-generated content (UGC) is a powerful method. Promoting customers
to create and distribute content associated with the brand enhances interaction, trust and
authenticity. Brands may use UGC to exhibit authentic experiences, testimonials, and varied
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viewpoints, fostering trust and strengthening connections with their target audience (Heath,
2020). A critical piece of advice from Nike's strategy is optimising platform-specific tactics.
Various social media platforms exhibit unique user demographics, content types, and patterns
of interaction. To maximise effect, brands should customise their content and interaction
tactics to align with the unique characteristics of each platform Azira Ibrahim, Ibrahim
Adapting content to match users' interests and behaviours on popular platforms such as Instagram,
Twitter, Facebook, and YouTube guarantees that it remains relevant and impactful, increasing the
brand's reach and influence. Ensuring ongoing audience involvement is recommended. Brands
must cultivate continuous engagement with their audience by instigating dialogues, addressing
feedback, and developing interactive encounters. Through maintaining a steadfast and engaged
presence, companies may boost connections, promote brand advocacy, and remain at the forefront
of customers' consciousness .
CONCLUSION
Nike's strategic incorporation of social media has undeniably strengthened its position as a
dominant force in the sportswear industry. The available empirical evidence strongly
indicates that implementing a well-integrated and flexible social media strategy can
significantly enhance a brand's overall value, intensify consumer interaction and involvement,
and ultimately result in higher sales and brand loyalty. This analysis highlights social media's
significant and central role in contemporary marketing strategies. It also emphasises the
criticality of adopting a sophisticated and adaptable approach to leverage these platforms for
brand establishment effectively and to foster meaningful connections with target audiences
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