Mark Parker speaking during a news conference in New York, 2016
SUMMARY:
Yesterday, August 22nd, 2019, Nike's CEO, Mark Parker, announced that he will be stepping down next January. His replacement will be former CEO of ServiceNow, John Donahoe. Many have begun to speculate why Parker has decided to leave the CEO position. Some have attributed the decision to the many scandals that Nike has been plagued. One of these scandals involves a track coach, Alberto Salazar, who was banned for four years by the "USADA", US Anti-Doping Agency, due to running experiments with testosterone supplements that were "bankrolled and supported by Nike". Allegations of misconduct and gender discrimination have also been proposed reasons as to why Mark Parker decided to step down from the CEO position.
IMPORTANCE:
This event is important to be acknowledged because it will affect many in the future. A new CEO means new policies for the company, which means changes, which will most likely mean that many jobs will be affected, job loss and loss of extra benefits would be some examples of this. Additionally, a new CEO will most likely impact the stock price of Nike whether it's for the good or bad.
QUESTIONS:
- Do you believe that Parker decided to step down as CEO due to one of the many scandals started against him?
- What are some possible changes that Nike might go through once Donahoe takes over as CEO?
- If you were in Parker's shoes, would you have stepped down as the CEO? Why?
I believe that the scandals are a factor for Parker’s resignation. Given the allegations from the past year I think it is wise that Parker stepped down and were I in the same position I would do the same. Because I am unfamiliar with Donahue and Nike’s business model, I cannot say with confidence what they plan to do once he takes leadership but I suspect that they will continue to shift more focus on its apps.
ReplyDeleteI don't really follow sports drama so much, and unfortunately gender discrimination is still quite prevalent in the modern workforce, so I really can't say for sure whether the scandals really made that much of an impact in his decision to step down. He said personally that the scandals were not related to his stepping down and that succession plans were in the making for a while as well, so if I were him I would assume I would have said and done the same and stepped down. Even if he did step down due to scandals and is just masking it by claiming "plans," it's still a decent excuse that maintains PR integrity, rather than staying as CEO despite the scandals. Like Audrey, I am completely unfamiliar with Donahoe and how he prefers to run companies, so I cannot say how Donahoe could change the company.
ReplyDeleteI think Parker’s move to step down as CEO of Nike speaks to the possibility of future scandals the company may be discovered to be apart of. As one of the largest corporations in the world, Nike has a large supply of money that enables them to participate in illegal action that is undetectable by the public. The recent scandal with the track coach may just be the start to unveiling problems within Nike as a company. With Nike’s power, they have the ability to influence current governmental policies. For this reason, they must be kept in check to prevent further issues they may be working in. As for Parker’s decision, I think he made the right decision, depending on what illegal action Nike is taking. If they are participating is major controversy, then Parker made the right decision to leave before chaos ensues.
ReplyDeleteLike Neel said above, when people step down in midst of a scandal, it is most likely either they are already hit by a massive series of true scandals, or in this case, more scandals will inevitably surface. Parker knows more than we do about what will surface, or what is to come, so I wouldn't know exactly if I would step down in his position. Many times people in power stay, and sometimes are left scathed but not fallen, but also can fall. As influential and large a company Nike is, I think they will get hit a bit, but not fall drastically in my opinion. I think if the scandals were as bad as the doping one, I probably would stay as it has recoverable effects on the image. Unless it's really bad, which is objective. THe image of Nike will change slightly, but each faculty of Nike has their own visions, so I don't think a new CEO will really affect the vision/ image very much.
ReplyDeleteI think that Parker’s decision could come from the scandals, but has worked with nike for 40 years and been CEO of 14 years it makes sense that he is ready to move on. He is 64 years old and is at the age of retirement. Donahoe would definitely be implementing changes and I think the changes are essential for all companies for them to bring in new ideas and eliminate those that don't work. What Donahoe may decide to do is hard to tell but the changes he makes would be because he wants to improve the company. As for Parker, I would have done the same thing he did, when you are 64 years old and have worked as CEO for 14 years, you want a break. Why risk getting caught up in case?
ReplyDeleteI think that Parker decided to step down as CEO due to the fact that Nike is under investigation on some scandals. Parker probably thought that since so many people are looking into Nike for scandals, the opportunity for Parker to step down was at the perfect moment. I think he thought that if he would step down, the fault would not be on him if the scandals were to come true. I think as a new CEO, you make it your first responsibility to find ways to better the company. Donahoe will probably look for ways to increase sales of Nike products and better their own advertising. Addressing the last question, I think if I were in his shoes, I would probably step down too. Since so many scandals are arising within the company, and the fault is put at me, I would probably step down to avoid problematic results. However, these scandals will then have to be placed on the new CEO to handle, and if the scandals do appear to be true, then Nike's sales will fall.
ReplyDeleteI think that Parker decided to step down as CEO because of scandals from the past year as well as allegations that could arise in the near future. I am unclear of Donahoe and Nike’s way of running their companies, so I am uncertain on how Nike would change. However, like you said, policies will likely change which would definitely affect the stock prices and working conditions for employees. It is also natural and smart for Donahoe to look for ways to increase sales, which would positively influence their stock prices. I also think that because Nike is an extremely large company with lots of money, they would be able to “survive” this change of leadership without a major stock price drop. If I were in Parker’s shoes I probably would have stepped down as CEO as well since it is in the best interest for the company to avoid more scandals and chaos.
ReplyDeleteNike is a terrible company. I decided to stop buying items from Nike a long time ago. When they released their Betty Ross 1800s throwback American shoes for the 4th of July and was taken down because Spokesperson Colin Kapernick said the shoes were racist and they did. The CEO should resign because he is corrupt. He would rather serve the interest of a terrible pathetic athlete than the American people. It is time to go.
ReplyDeleteParker definitely stepped down due to a combination of Nike's past issues and more people looking into the issues. He probably thought that it would be the best moment to get rid of himself before all the issues would come back out. His replacement would need to pick up after the scandals, but the company itself would not be in too much of a danger. Nike is a well known company that has been around for a very long time. Parker probably just wants to retire quietly and without too many issues.
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ReplyDeleteIn my opinion, I believe that Nike being such an influential company as they are need be positive role model for the products they represent. Recently Nike has been way to caught up in inserting their input on political issues/controversies and pleasing social agendas of a few individuals rather than, improving their product lines. Nike had long been highly regarded as marketable brand, with many celebrities and sports endorsing their products. However, in regards to that they have somewhat "fallen by the wayside". I believe Nike needs to rethink their public image, and start focusing on what they are best at, producing athletic gear and apparel, staying clear social contention...
ReplyDeleteI believe that Parker stepped down from his CEO position to prevent more harm in the future of his reputation from any other possible scandals. Nike is such a large corporation, and it has been this way for awhile, so the possibility of more scandals surfacing are very likely and would not be surprising. If I were in Parker’s shoes, I would also step down from CEO because all the fault would lie on my shoulders from the scandals popping up. Once Donahoe takes over as CEO, he should first find ways to better the company and go through some steps and background checks to avoid any scandals. By doing so, this may help the company in the long run as more people will continue to buy and support their products.
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