Nike’s vision statement of: “To experience the emotion of
competition, winning, and crushing competitors” to learn that Nike’s grand plan extends far
beyond running shoes and athletic wear.

1) Can such expansion of a firm’s business definition go too far? Even in Levitt’s day, it was
questionable whether, for instance, a railroad company really had the expertise to run an airline.
Looking at Nike today, what businesses do you think are viable expansion opportunities? Justify
your choices; in doing so, explain how, in terms of strategic fit, these expansions would benefit
Nike.
2) Identify, and describe at least three (3) examples of strategic fit that Nike currently exhibits
among its multiple divisions. Defend your reasoning.
3) Which, if any, of Nike’s business units could be considered cash hogs? Explain. Which, if
any, of Nike’s business units could be considered cash cows? Explain.
4) Firms can often benefit from diversification into multiple product and service categories,
because this strategy can help to create economies of scope. However, over-diversification can
potentially damage a company’s image and bottom line. Be a devil’s advocate (one who argues
an opposing viewpoint to test the decision) by cautioning Nike about the dangers of overdiversification.
Provide all of the rationale necessary, including an example of another company
that overreached and suffered because of over-diversification, so that you can be very persuasive
in your recommendations to the Nike strategic leaders.