1. WHAT DO WE MEAN BY MADE IN THE USA? Made in the USA entails that we change all processes of the company to be inside the United States This means that not a single process should be performed outside of the U.S.

2. THE STAR SPANGLED BANNER: TRY SINGING ALONG

3. Now how did that feel?

4. WHY CHANGE WHEN WHAT WE DO WORKS? Here at Nike, we have huge success using outsourcing to get our products produced However, times are changing as well as consumer opinions Despite our efforts to improve working conditions and rid ourselves of the sweatshop image over the past 20 years, the image still lingers around outsourcing This is why I call for the PROACTIVE move to the Made in the USA model to put us ahead of everyone In addition, it can create savings in areas that we may lose short term profits from

5. PROBLEMS WITH OUTSOURCING Although outsourcing may money for production, it creates costs for transports, customs duties and time Also with economic downturns, the idea of creating jobs outside of the U.S. is not favored with many Americans We need to have a good image with all of our customers!

6. BENEFITS TO LOCAL SOURCING Many benefits come with local sourcing The factors surrounding sourcing such as transport cost and time, cultural differences, discrepancies between what we think is happening and what is actually happening at a factory, and intellectual property protection are avoided Some customs duties are as high as 28% Costs of outsourcing are only increasing as well according to research by Margaret Bishop Business model is more transparent According to the Boston Consulting Group, both American and Chinese consumers will pay more for U.S. made products

7. EXAMPLE OF AMERICAN APPAREL Looks like theyre doing something right at American Apparel! They have created their own image by making everything on American soil Although we have our own image already, a little bit of change never hurt anyone

8. EXAMPLE OF AMERICAN APPAREL Under-One-Roof Strategy This strategy allows for all processes to be completed under one roof, in the same building This process cuts out the time it takes to go back and forth between manufacturers to find a problem in production or quality Allows for the best products to be churned out as quickly as possible

9. EXAMPLE OF AMERICAN APPAREL American products made by American people Transparency American Apparels business model also gives them a sense of transparency Their employees are paid fairly and provided good working conditions and fair pay This builds even more brand trust that can help more people relate to the brand on a personal basis Any country can relate to the sense of pride they have in their country

10. PROOF OF CHANGING CONSUMER OPINIONS Marsha A. Dickson - 2001 Conducted a study to relate consumer buying decisions to a label that showed that the product was not produced by sweatshops Found no significant relation 2013 Walmart factory fire in Bangladesh Factory was deemed unsafe months prior to fire, yet work continued Ended in a catastrophe, which could have been prevented Working conditions and laws are not the same abroad as they are in the U.S. Many people protesting working conditions abroad, including unions More and more people fighting idea of sweatshop produced clothes

11. WORKER SAFETY We dont want this to happen at our factories

12. WE NEED TO MAKE THE CHANGE TODAY I understand we have a good process with outsourcing currently, but the downsides of changing to a Made in the USA business model are outweighed by the upsides Changing consumer opinions and increasing costs of outsourcing, although they have yet to affect us, are future threats for us at Nike Making the proactive change frees us of these and helps us build an even stronger image to remain the front-runner of sports apparel

13. AS WE SAY HERE AT NIKE