Leadership Speech, problem set 4



Leadership Problem Set 4

Tiger Woods contract to continue?

Given current events, decide whether or not to continue your endorsement contract and persuade your employees that this decision is in the best interests of the organization stakeholders.

TEAM 1

Bastian Golladay-Speaker

Greyson Wright-Writer

Brian Henderson-Researcher

Luann Manss-Researcher

Problem set 4

Lately, there has been a lot of discussion of whether or not we are going to drop Tiger Woods as a Nike Icon. I understand the decision we make regarding keeping or dropping Tiger will affect each one of you directly. After much thought and consideration for not only each employee, but the investors, customers and the organization as a whole we have decided to continue our work with Tiger as we have in the past. We understand that his actions have created a negative moral image of Tiger himself but I’m confident Nike will continue to succeed in being the best in the industry.

As far as celebrity-related scandals go, this one is relatively tame. If Snoop Dog can continue to smoke pot and produce porno flicks and still have the Wal Street Journal take his opinion on entrepreneurship seriously, I think the people of the world can find some way to forgive Tiger and put these issues in the past.

In my opinion, no other athlete has dominated a major professional sport as much as Tiger. Athletes of this caliber, with vast commercial appeal, are precious resources and should not be disposed of quickly. This is the case with Tiger.

If we were to drop Tiger as many other sponsors have, we would potentially miss out on substantial future economic benefits.

The problems Tigers currently faces are rather short term. As CEO of Nike, I can assure you Tigers infidelity will not irreparably harm his career.

Nike’s image is not heavily reliant of Tiger’s current image unlike many of the sponsors that have dropped him. We can afford to keep our relationship with Tiger as a part of Nike and still give him “a time out” as we wait to see what happens and where his career and public opinion falls.

The public and ultimately the fans of Tiger, understand he made a mistake. As we give this time, I believe Tiger will emerge as a stronger key model for Nike’s business success.

Tiger is a highly valuable economic asset that has serious long-term potential. As being your leader in Nike, we need to continue to focus on our long-term goals rather than short-term decisions that could have a negative long term affect.

Citations

Tiger as a long-term benefit



Snoop-Dog on Wal-Street



 

Why some have dropped Tiger



 

TEAM 2

Breya Jasper – Leader

Alex Finwall - Researcher

Katelyn Downey – Writer

Matt Morrissey – Researcher

Hi my name is Breya and I am here to discuss with you why EA sports has decided to continue its partnership with Tiger Woods.

Tiger Woods has partnered with us since 1997. Since then we have produced 12 games using his name and likeness.

Most recently we have produced Tiger Woods PGA Tour 10, which came out in fall of 2009.

Because of our commitment to our game brand and the products we promote we have decided to stay with Tiger Woods.

Tiger’s approval rating has fallen with the recent scandal. According to recent reports only 42% of men and 35% of women approve of him.

One issue that could come up would be people boycotting our product because they don’t feel he is a good role model.

However, our company believes that Tiger’s issues should be dealt in the privacy of the home, and our main concern is the profitability of his brand.

Currently Tiger Woods PGA tour 10 has sold 1.95 million units, this is poised to at least match last years sale of 2.86 million units.

Until we see concrete evidence of us losing money in his games, we will continue to stand by him.

We have invested our time and money in our relationship with Tiger Woods.

According to the Wall Street Journal, “EA could always substitute another professional golfer for Mr. Woods in its golf games, but no one else has his name recognition in the sport. Tiger Woods videogames so far have a lifetime US retail sales of 616 million.”

It is beneficial to our investors to continue with a profitable game.

Tigers name recognition is an asset to our company and Changing the name of Tiger Woods games would be similar to changing the name of Madden’s games.

Our customers genuinely enjoy the Tiger Woods games and This would lose the brand recognition that we have fostered over the decade.

Tiger Woods is a good golf player and his games continue to generate revenue for our company and It is important as a company that we produce games that our customers want.

Our employees have been working on these games for years and Changing a working formula would be detrimental to all of us.

We see this scandal as a short term setback in a decade long franchise. Therefore, we feel that it is in the best interest of our customers, employees, investors, and company as a whole to continue in our profitable relationship with Tiger Woods.

Any questions?

Sources:









Team 3

Kyle Ricci- Speech Writer

Christine- Researcher

Mary-Researcher

Michael- Writer

Hi my name is Kyle. As a company committed to doing what is best for our employees, customers, and organization, we as Nike, feel it would be in the best interest in the company to keep sponsoring Tiger Woods.

We are a nation of giving second chances.

In the past we have seen numerous athletes commit similar if not worse actions than Tiger Woods. Whether it’s infidelity or cheating within the sport itself, our nation has shown it will forgive these athletes for their indiscretions, it just takes time.

For example another well known Nike sponsor, Kobe Bryant settled a civil lawsuit on allegations of rape and infinitely and seven years later he currently has one of the top selling jerseys in the NBA and is recognized as one of its most popular players.

Although currently, in favorability polls Tiger Woods has taken a 52% drop since 2000, we believe that his excellence on the course will overshadow his past mistakes

,According to Will Ashworth, a writer from Investopedia, Tiger Woods comprises just under 4 percent of Nike’s totally revenue. Tiger is worth an estimated $2.50-4.00 for every dollar spent on endorsements. All of his investors combined expect 420 million dollars in annual revenues from their association with Tiger Woods.

If one of the best athletes in the world uses the product so will other weekend warriors in any sport, not just golf.

According to Forbes in the future, Nike is forecasting a return to sales growth this quarter as it expands market share and rides strong consumer spending even with Tiger’s recent events. With Tiger Woods out of the tour, TV ratings and advertising has slumped almost 50 percent.

With all of the facts previously mentioned, this is why we feel it will be in the best interest of our company, Nike, as a whole to keep Tiger Woods. Tiger Woods is still arguably the best golf who has ever lived. We feel that within the year Tiger will be able to regain his reputation as the best on the course, but also as a force in the market place.

Works Cited

Ashworth, Will. "Tiger Woods: Goodwill Crashing ." : Investing Basics Articles and Insight. (accessed January 11, 2010).

Tiger Woods is worth between $2.50 and $4 for every dollar spent on endorsements

Badenhausen, Kurt. "Move Over Tiger - ." - Business News, Financial News, Stock Market Analysis, Technology & Global Headline News. (accessed January 11, 2010).

Nike's golf revenue was irrelevant before Woods, but today is estimated to be $500 million per year.

"Kobe Bryant's Endorsement Deals ." Advertising - Advertising Careers and Jobs - Advertising Strategies - Advertising Help for Small Businesses . (accessed January 11, 2010).

Kobe Bryant's past indiscretions.

KLAYMAN, BEN. "PGA tour ratings, attendance and advertising suffers without Tiger Woods - ." New York News | Gossip | Sports | Entertainment | Photos - New York Post. (accessed January 11, 2010).

Tiger's presence at a golf tournament and being on the leader board generates significantly increased ratings," said Neal Pilson of the consulting firm Pilson Communications.

McCarthy, Michael, and USA TODAY. "Poll: Tiger's favorability showing record decline - ." News, Travel, Weather, Entertainment, Sports, Technology, U.S. & World - . (accessed January 11, 2010).

Tiger Woods popularity dropped.

Sage, Alexandria . "Nike earnings beat St, company standing by Tiger Woods - ." - Business News, Financial News, Stock Market Analysis, Technology & Global Headline News. (accessed January 11, 2010).

Nike Inc. forecast a return to sales growth this quarter as it expands market share and rides stronger consumer spending

Chicago formatting by .

Team 4

David Lee – Speaker/Leader

Roy Dunlap – Writer

Ben Cox – Writer

Rueben Sanchez – Researcher

Jacob Hayes - Researcher

Hi, my name is David Lee and I am here to give you Nike’s public stance regarding Tiger Woods.

We at Nike are standing behind Tiger Woods.

We want to address the concerns of YOU, our employees in taking this stance. We understand the frustration that may arise in this situation.

We don’t support the recent negative decisions that Tiger has made in his personal life, and we are not ignoring the ramifications of his actions. We understand that at this time his image is at a new low, and we will take the criticism for standing beside him.

However, no human is perfect. Everyone makes mistakes and we support Tiger Woods as an athlete at the top of his game, and look forward to his return to his sport. Other stars and celebrities have gone through troubled times and have emerged successfully.

There are three primary reasons we have chosen to stand behind Tiger.

Reason 1: Superstar endorsements are a huge part of Nike’s sales and successful history. Some examples of this are: Michael Jordan and Tiger Woods himself. Tiger Woods made $725 million dollars for Nike in the 2008 fiscal year. His positive influence on golf is unquestionable. When Tiger was not on tour with the PGA, Neilsen television ratings dropped by almost 50% in 2008.

Reason 2: People make mistakes. Battered reputations have the ability to make a full recovery. What defines a person is how they deal with adversity.

In the past decade, several examples of public figures repairing their image can be easily found in Kobe Bryant, Michael Jordan, and Bill Clinton. Despite Tiger’s mistakes in his personal life, he still does much for charity including the Tiger Woods Foundation, Tiger Woods Learning Center, and The Chevron Road Challenge which is an annual charity golf tournament.

Reason 3: This decision fits with the precedent we have set with other superstars. We have been through this scenario with Kobe Bryant. Kobe Bryant committed adultery, we stood by him, and in 2009 Kobe Bryant had the top selling jersey in the United States, Europe and China. In addition, in 2010 Nike is launching a new shoe with Kobe’s branding, the “Nike Zoom Kobe V”.

For employees and shareholders alike, this decision is a long term commitment which will help Nike continue to be a profitable company with a strong stock offering. For the consumer, this shows that we are a company that believes in our athletes and are committed to providing a quality product. And finally for the Nike Organization, while this will be a short term problem, in the long run this will put forward a consistent image of loyalty.

For all of the reasons I have just stated, we are standing firmly behind Tiger Woods during these current struggles.

SOURCES

how much tiger brings in





Bryant jersey top seller in world.

NBA



tiger woods foundations/social responsibility stance.



kobe byrant resumes endorsement carrer.



TEAM 5

Rex Barney – Candidate

Amanda Castleman – Researcher

George Fleischmann – Researcher

Giuliana Traverso - Writer

Nike realizes who we sponsor reflects what we stand for as an organization.

We also acknowledge the huge impact sports figures have on kids.

Sports are where most kids learn how to work well with others and follow rules.

It is also where kids first learn what there strengths and weaknesses are and gain recognition for their efforts.

From coaches to sports stars kids look up to sports figures as role models.

Keeping our sponsorship with Tiger Woods is contradictory to teaching kids these values.

(Pause)

However Tiger Woods athletic achievements are what leads us to believe continuing sponsorship would best serves our stakeholders.

The lesson to be learned from Tiger Woods as a role model is his dedication to perfecting his game, not how to be a good husband.

Although Tiger Woods is currently going through a lot of media attention about his personal life, we feel he can overcome this obstacle and regain his title as the most dominant golfer in the pro tour.

Nike stood by Michael Vick through the dog fighting case and he was able to work through it and return to his life as a professional athlete.

Because he no longer was a professional athlete, we didn’t uphold sponsorship through his 23 month sentence, but we did maintain ties with him.

While Tiger Woods’ actions are immoral and are not consistent with Nike’s vision, they are no where near the magnitude of the crimes Michael Vick was convicted of.

When people look back throughout Tiger Woods’ career, they will remember his ability to dominate on the golf course, not his personal issues in 2009 off the golf course.

Nike sponsored Woods’ for $40 million in 1996 because they saw his potential to become one of the elite golfers in the pro tour.

Nike has a history of sponsoring the best athletes in the sport, we do this because we design and market our product for the elite athlete.

The Air Jordan brand was one of Nike’s most successful product lines.

We attribute this to Michael Jordan’s dominance on the basketball court, not his personal life.

Tiger took leave from golf to deal with his personal issues and we look forward to him coming back next year.

We think if Tiger became an average golfer upon his return that would make us consider revaluating sponsorship efforts much more seriously.

Celebrity gossip comes and goes, but when an athlete has talent that overshadows all their peers, it is something that has a much more profound impact.

Work Cited

GOLDMAN, RUSSELL. "Tiger Woods Mistresses: At Least 9 Women Linked to Alleged Affairs - ABC News." - Breaking news, politics, online news, world news, feature stories, celebrity interviews and more - ABC News. N.p., n.d. Web. 11 Jan. 2010. .

"News – Nike Chairman Calls Tiger Woods' Extramarital Affairs "a Minor Blip" –  Celebrity News – ." US Weekly’s Hot Celebrity News, Photos & Videos from . N.p., n.d. Web. 11 Jan. 2010. .

Quinn, James. "Tiger Woods: which sponsors will keep him – and which will ditch him? – Telegraph Blogs." Telegraph Blogs. N.p., n.d. Web. 11 Jan. 2010. .

Shevack, Brett.  “The Brand Should Be the Star, Not the Athlete.” Brandweek 39 (1198): p26. 

Werder, Ed. “Apologetic Vick Gets 23-month Sentence on Dogfighting Charges.”  . 11 December, 2007.   

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