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Shoe Dog Summary and Analysis

Shoe Dog Summary and Analysis
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Plant Biodiversity and Biotechnology (Biology 2D03)

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Overview

Shoe Dog is a first-person memoir written by Nike co-founder Phil Knight. It was published in 2016. Shoe Dog primarily recounts the events from 1962, the year Knight traveled around the world as a young man, to 1980, the year Nike went public and Knight became a multimillionaire. The years in between are comprised of the struggles and challenges Knight faced as he worked to build the company that would ultimately be known worldwide as Nike.

Shoe Dog is divided into 20 chapters, each one roughly corresponding to one year in Knight’s life. In addition to the challenges related to building a company, Knight also reflects on the challenges and triumphs he faced as a son, as a young man searching for his identity, as a husband, and as a father.

After completing undergraduate studies at the University of Oregon and business school at Stanford, Knight returned to his parents’ home in Portland, Oregon, in 1962, where he received a loan from his father to travel around the world. While in Japan, Knight met with executives at Onitsuka Tiger, a Japanese shoe company, which agreed to send Knight shoe samples to sell back in the United States. In 1964 Knight began selling Onitsuka shoes in earnest throughout the West Coast. That year he also partnered with Bob Bowerman, his college track-and-field coach; Knight oversaw the managerial and financial end of things, while Bowerman experimented with shoe design. Over the years Blue Ribbon grew into a thriving company. When Onitsuka and Blue Ribbon became bitter rivals and parted ways, Knight was forced to begin producing his own shoes, which he ultimately called Nikes. Bowerman’s designs influenced many of Nike’s iconic styles, including its waffle trainers.

In the years that followed, Nike faced $1 million payments to creditors, dirty tricks played by competitors, the death of Prefontaine (a beloved Oregonian distance runner and Nike celebrity-employee), and many other challenges. Through it all, Knight told himself to “never stop.” The result of his perseverance is Nike, a multibillion-dollar brand worn by many of the world’s best athletes and recognized across the globe.

Chapter Summaries & Analyses

Prologue - Chapter 3

Prologue Summary: “Dawn”

The narrator eats a light breakfast and goes for a run. He reflects on being from Oregon. He’s proud to be from Oregon but also feels most people think little of importance ever happens there. The narrator is living at home with his parents again after seven years away. He’s attended the University of Oregon and received a master’s degree in business from Stanford. Despite these accomplishments he still feels “like a kid” (2). He’s 24 years old. He reflects on what he wants from life and decides that he wants his life to feel like play. This leads him to thinking about his “Crazy Idea” (4). He begins to run faster, growing excited while imagining his Crazy Idea working. He gives himself the advice to never stop, to “just keep going” (5), no matter what. Reflecting on his own advice 50 years later, he believes it is the most important advice there is.

Chapter 1 Summary: “1962”

Knight approaches his father while he watches television. Knight wants to ask for help with his Crazy Idea. While in business school at Stanford, Knight had written a paper involving the potential impact of Japanese running shoes in the running shoe market. Knight saw enormous potential there and continued thinking about this idea well after presenting his paper. He imagined flying to Japan and finding a company with which he could partner to sell their shoes in the American market. He also imagined pairing this trip to Japan with a trip around the world, where he could see many of the planet’s most beautiful and sacred sites. But to make such a trip, he must borrow money from his father.

Knight pitches the idea of a trip around the world to his father, who approves. Knight spends weeks preparing for his trip. He asks his friend and former Stanford classmate Carter if he’d like to join him, and Carter agrees. On September 7, 1962, Knight and Carter drive from Oregon to San Francisco. From there they fly to Honolulu. After checking into a motel on Waikiki Beach, they go swimming together and quickly decide they’d like to stay in Hawaii for an extended period. They get jobs selling encyclopedias door to door, but Knight has trouble making sales and changes jobs, becoming a securities salesman. Knight has more success in this job, quickly earning enough in commissions to pay for six months’ rent. After a relatively

After returning home from his trip around the world, Knight looks for work. Knight visits Don Frisbee, a local CEO whom his father is friends with. Frisbee advises Knight to get his CPA, and so Knight enrolls in accounting classes. He then gets a job at an accounting firm, where he works 12-hour days. He is paid well but misses the adventure of the previous year, when he traveled the world. In summary, Knight writes, “This is how I spent 1963. Quizzing pigeons. Polishing my Valiant. Writing letters” (42).

Chapter 3 Summary: “1964”

In the first week of 1964, Knight goes down to a warehouse on the waterfrontand receives a large box with Japanese writing. When he returns home, he opens it to find 12 pairs of white shoes with blue stripes. He finds them beautiful. He sends two pairs to his old track coach at the University of Oregon, Bob Bowerman. Knight remembers Bowerman as an intimidating but powerful presence and as a legendary coach. Bowerman responds to Knight by suggesting they have lunch the following week.

On January 25, 1964, the two men meet at the Cosmopolitan Hotel in Portland. Bowerman likes the Japanese shoes and asks if he can be let in on the deal with Onitsuka. They decide to become partners with a 50-50 share in the company. A few days later, Knight and Bowerman meet with Bowerman’s lawyer, Jaqua, to make the agreement official. Jaqua explains that Bowerman does not want to be in charge and suggests that they split ownership 51-49, giving Knight control. Knight agrees, and they sign the paperwork.

The same day Knight writes to Onitsuka asking to be “the exclusive distributor of Tiger shoes in the western United States” (52) and places an order for 300 pairs of Tiger shoes. He borrows $1,000 from his father to make the purchase. In April 1964 Knight receives the order of shoes from Onitsuka. He is told in a letter by Mr. Miyazaki that he can be the “distributor for Onitsuka in the West” (55). He quits his job at the accounting firm and commits himself to selling Onitsukas out of the trunk of his car.

Knight has success driving to track meets around the Pacific Northwest and talking up the shoes to coaches, athletes, and fans. Soon he finds himself receiving requests for shoes by mail. He reflects, “Without my even trying, my mail order business was born” (56). Sometimes runners would arrive at Knight’s parents’ home to ask if Buck was around. Knight would then welcome the runner and measure his foot.

Knight sells out his first shipment on July 4, 1964. He writes to Onitsuka requesting 900 more

pairs, costing him around $3,000. To cover the cost, Knight gets a loan at the First National Bank of Oregon.

Since business is going well, Knight decides to hire a salesman in California. He attends a track meet at Occidental College near Los Angeles, where he’s greeted by a former track competitor named Jeff Johnson. Johnson says that on weekends he sells shoes for Adidas. Knight tries to convince him to sell Tiger shoes, but Johnson declines.

A letter arrives from a man on the East Coast. The man, whom Knight calls a “Marlboro Man,” claims to have been named the exclusive distributor of Onitsuka in the United States. He demands that Knight cease selling Tigers. Knight contacts his cousin, a lawyer named Doug Houser, for advice. He later decides that he must fly to Japan to confront Onitsuka in person.

After arriving in Kobe, Knight calls Onitsuka from the hotel and leaves a message. A secretary calls back to tell him that Mr. Miyazaki, his previous contact, no longer works at Onitsuka. His replacement, a man named Mr. Morimoto, will come to meet Knight at the hotel restaurant the following morning.

When the men meet, Knight makes his case for continuing to be a distributor for Onitsuka. Mr. Morimoto says that he will be in touch. The following morning Knight receives a call telling him that Mr. Onitsuka himself would like to meet with him. Knight heads to the Onitsuka headquarters, where he meets with executives and Mr. Onitsuka in a conference room. Ultimately, Mr. Onitsuka decides that Knight can continue selling in the 13 western states, while the Marlboro Man would be forced to limit the sale of his track shoes to the eastern states. After a year, the decision would be revisited.

Following this successful negotiation, Knight decides to climb Mount Fuji. He arrives at the foot of the mountain at dusk. At a rest station during the climb, he meets a pair of Americans, a man and a woman. As they climb together, Knight talks with the woman, whose name is Sarah. After returning to the bottom of the mountain, Sarah asks where Knight is headed and decides to go with him.

Knight spends two days together with Sarah before they part ways. Knight leaves Sarah a note at the American Express office suggesting that she visit him in Portland, then he flies home. A few weeks later Sarah surprises him by visiting him at his parents’ home unannounced. She stays for two weeks, charming “the uncharmable Knights” (69). Christmas

calls his highlight. He is inspired by the beauty of the Acropolis and also has the strange sensation that he has been there before. Years later, this inspiration will help him choose the name Nike (which means “victory” in Greek) for his company.

Knight’s father grew up in poverty and worked hard to accomplish stability and respectability. As such, he is not initially enthusiastic about Knight’s ambitions to begin a shoe company. Although Knight’s father never tells Knight that he can’t or shouldn’t follow his dreams, his subtle disapproval of the endeavor nevertheless represents an early psychological barrier for Knight. Additionally, Knight’s father refuses to loan Knight money after a certain period. This forces Knight to seek financial support from a local bank, effectively beginning his journey to legitimacy.

While Knight’s father is at first disapproving, Knight’s mother is supportive of Blue Ribbon from the very start, buying a pair of Tigers from the very first shipment. But the most important support Knight receives comes from Bill Bowerman, his former track coach at the University of Oregon. Bowerman is considered a legend, and his co-ownership of Blue Ribbon proves invaluable time and time again as the company fights to establish itself as a legitimate and reputable brand.

Chapters 4-

Chapter 4 Summary: “1965”

At the beginning of the year Knight offers Jeff Johnson a job as a commissioned salesman, and Johnson accepts. Johnson begins to send Knight an endless stream of letters in which he reports his sales, his plans, his suggestions, and his thoughts. He sends so many letters that Knight worries he is “unhinged” (74).

In April 1965 Johnson reports that he’s quit his job as a social worker in Los Angeles. Although Knight tries to convince Johnson that work at Blue Ribbon could be unstable, he ultimately accepts Johnson’s offer to become the company’s first full-time employee.

Knight runs into problems with his banker, who believes Blue Ribbon is growing too quickly for its equity. The banker observes, “Growth off your balance sheet is dangerous” (77). Knight, however, feels that growth is vital to his company’s survival. He continues to place orders with Onitsuka that are twice the size of the previous order and convinces the bank to approve the necessary loan.

Given so much uncertainty about the company’s future, Knight decides to find “a real job” (80). He’s hired as an accountant at Price Waterhouse, where he meets a man named Delbert Hayes. Hayes is a large man with a large appetite. He drinks often and smokes at least two packs of cigarettes a day. Hayes is flamboyant but also extremely talented as an accountant. Knight joins Hayes at local Portland dive bars after work and on road trips visiting clients.

While in Japan during the 1964 Olympics, Bowerman visits the Onitsuka headquarters and bonds with Mr. Onitsuka. When Bowerman returns to Oregon, he corresponds with Mr. Onitsuka, sending shoe ideas to the factory. Eventually, Onitsuka makes samples according to Bowerman’s notes and sends them to Oregon. Bowerman issues the prototypes to his runners, who use the shoes to win races.

Chapter 5 Summary: “1966”

Johnson’s endless stream of letters continues from California, and Knight continues to not respond. Given free rein to do as he likes, Johnson works obsessively for Blue Ribbon. He creates a database of customers with whom he regularly keeps in touch.

Knight moves out of his parents’ home and rents an apartment in downtown Portland. Around this time Johnson writes Knight to say that he’s been in a car accident. Though critically injured, he manages to meet his obligations with Blue Ribbon. Knight proposes that if Johnson can sell 3,250 pairs of shoes by June 1966, Knight will let Johnson open a retail store. Johnson hits the goal and opens Blue Ribbon’s first retail space on Pico Boulevard in Santa Monica that fall.

Knight receives word that the Marlboro Man is beginning to sell Onitsukas on the East Coast again. Once more, Knight flies to Japan hoping to secure rights to sell Onitsukas in the United States exclusively. When he arrives at Onitsuka’s headquarters, he meets in the conference room with Kitami, who has replaced the previous export manager, Morimoto. Knight attempts to persuade Kitami and the other executives that Blue Ribbon should be Onitsuka’s exclusive US distributor. Kitami says that this won’t be possible, as Blue Ribbon is not established enough, nor does it have offices on the East Coast. Knight bluffs that Blue Ribbon does have offices on the East Coast. This seems to change Kitami’s mind. The next morning he awards Blue Ribbon a three-year contract as Onitsuka’s exclusive US distributor.

Chapter 6 Summary: “1967”

small detail of ignoring Johnson’s letters turns out to have fateful consequences. In the absence of clear guidance, Johnson is given free rein to let his enthusiasm fly, and as a result, Johnson expands Blue Ribbon’s client base and business prospects considerably. Over time Knight treats other employees with the same hands-off style that he treats Johnson, and these later employees likewise respond positively. Thus, Knight’s management style is informed by his earliest experiences with his first full-time employee.

In building his company Knight faces many early stumbles. One significant challenge involves his relationship with his bank, which believes that Blue Ribbon is growing too quickly. To Knight, this is both frustrating and paradoxical, as a company must grow quickly to build up equity. He skirts his bankers’ requirements and expectations by pretending to agree to their rules and then following his own gut. He reflects, “Everything my banker said, I ultimately accepted. Then I’d do exactly as I pleased” (78). Usually, this involves placing new orders with Onitsuka that are double the size of the previous order and then pleading with his banker, Harry White, to cover the order.

Such bold maneuvers recall a line that Knight often repeats to himself, one originally credited to General Macarthur: “You are remembered for the rules you break” (32). By aggressively pressing forward and believing in Blue Ribbon’s growth, Knight is breaking the bank’s rules in the hope of being remembered for his successes, much like his hero, General Macarthur.

Chapters 7-

Chapter 7 Summary: “1968”

Wanting to dedicate more time to Blue Ribbon, Knight switches jobs and becomes an accounting professor at Portland State University. On the first day of class a young woman sitting in the front row catches his attention. She has blue eyes and is dressed stylishly. Her name is Penelope Parks. Though she’s quiet, she proves to be the most capable student in the class. One day Knight asks if Miss Parks would like a job working for his shoe company. She agrees.

Miss Parks proves to be a skillful and efficient worker, and an integral part of the small office. Her presence boosts Woodell’s mood. One day after work, Knight asks Miss Parks out to dinner. She accepts. Knight takes her to the Oregon Zoo. She says she’s seeing someone, but he’s “just a boy” (124), while Knight seems more mature and worldly. They continue dating and soon spend almost all their time together, both at Blue Ribbon and at Knight’s apartment. They meet one another’s parents. Ultimately, Knight asks Penny to marry him. She says yes.

Knight flies to Japan and meets with Kitami. Kitami approves of Knight’s sales and invites him to a company picnic on a small island. During the picnic, Knight meets a man named Fujimoto, who tells Knight that his home was wiped out in a typhoon. One item he had not been able to replace was his bicycle. When Knight returns to the United States, he sends Fujimoto $50 for a new bicycle—and “thus another life-altering partnership was born” (134).

On September 13, 1968, Knight and Penny get married in Portland.

Chapter 8 Summary: “1969”

Knight hires more sales representatives. He’d done $150,000 in sales in 1968 and expects to double that in 1969. Knight quits working at Portland State and begins paying himself a salary. During his last week of teaching, he meets a young woman painting in the hallways. Her name is Carolyn Davidson. Knight takes her contact information in case he decides hire an artist for advertisements.

Knight calls Bowerman to hear his report of the 1968 Mexico City Olympic Games. Blue Ribbon had a booth in the Olympic Village, but it had generated little notice. Bowerman had run into Kitami, whom he disliked.

Knight sends a memo out to his company telling them that he has a spy working inside Onitsuka. This spy is Fujimoto, though he doesn’t identify Fujimoto by name in the memo.

In the spring Penny learns she is pregnant. Knight and Penny move to a new home in Beaverton. Knight uses his savings for a down payment on the home and pledges the house. His banker, Harry White, approves. Knight also decides to find a larger office space for Blue Ribbon. He and Woodell drive around Portland in search of the right space. During these drives and visits, Knight and Woodell bond. They find an office in Tigard, to the south of Portland. Knight promotes Woodell to operations manager.

University. He hopes this change will give him more free time to focus on Blue Ribbon. Authority figures like Knight’s Price Waterhouse boss and his father frown on his decision to leave his steady job to support his company. His boss asks him, “Why the hell would you do something like that?” (118). Knight’s father worries that teaching at Portland State University isn’t respectable enough. Such reactions serve to illustrate the strength, conviction, and independence Knight demonstrates in pursuing his Crazy Idea. As he suggests in the Prologue, Knight chooses to never stop pursuing his Crazy Idea, even in the face of the doubt shown by his former boss and his father.

In Chapter 7 Knight forms the most important partnership of his life and career when he meets and marries Penny, the former student in his accounting class. Knight says of the importance of this partnership: “In the past I’d told myself Bowerman was my partner, and to some extent Johnson. But this thing with Penny was unique, unprecedented. This alliance was life-altering” (130). In Chapter 8 their relationship deepens as they learn to live with one another. Knight explains that it is during this period that Penny must learn to make do with limited means, while Knight tries to get his start-up company off the ground. Knight’s relationship with his father also changes, as his father no longer sees Blue Ribbon as a waste of time and instead finds the problems Knight faces interesting. Knight calls his father almost every night to talk over the latest challenge Blue Ribbon faces.

Perhaps Blue Ribbon’s greatest challenge during these years is what Knight calls the “cash flow problem” (159). His bankers, White and Wallace, are unwilling to loan Knight more than $ million until Knight puts cash in his account and leaves it untouched for a period. Knight’s first solution for this dilemma is to hold a small public offering, but the offering fails. In the end, Knight is forced to seek and accept loans from family and friends, something he promised he would never do. It is in challenging moments—like accepting $5,000 from Woodell’s parents—that Knight reminds himself to “keep going..’tstop” (163).

Chapters 10-

Chapter 10 Summary: “1971”

Kitami visits Portland as part of a tour of the United States in search of new distributors. In an attempt to win him over, Knight decides that Kitami will “have the time of his life” (167) while visiting Oregon.

Knight and Penny pick up Kitami and his assistant Iwano at the airport. Over the weekend

Knight takes Kitami to the Oregon coast, Knight’s bank in Portland, and Blue Ribbon’s offices in Tigard. During a meeting, Kitami berates Knight for slow sales. While Kitami uses the restroom, Knight steals some documents from Kitami’s briefcase. Later, Woodell and Knight study the folder’s contents. They find a list of 18 potential new distributors across the United States.

On the final day of Kitami’s visit, a dinner is held at Bowerman’s home in Eugene. While Kitami travels the United States, Knight meets with Hayes, his eccentric former colleague at Price Waterhouse, whom Knight has recently hired to do work for Blue Ribbon. Together they decide it would be best to maintain their relationship with Onitsuka for as long as possible. When Kitami returns to Oregon before flying back to Japan, he tries to convince Knight to sell Blue Ribbon to Onitsuka. Knight stalls, saying he will talk the option over with Bowerman.

Knight is told by White that First National Bank will no longer do business with Blue Ribbon and that their relationship will be terminated. Knight establishes a new line of credit with Bank of California. During a second meeting with Nissho, Knight learns that Nissho would be “willing to take a second position to the bank on their loans” (178).

Knight next visits a factory in central Mexico. The factory seems clean and well run, and Knight places an order for “three thousand pairs of leather soccer shoes” (180). Back in Oregon, he contacts Carolyn Davis, the young artist he met in the halls of Portland State University, and asks her to create a logo. Ultimately, she comes up with a design that looks like a “whoosh of air” (181). Knight sends the design down to the factory in Mexico. Knight then tries to come up with a name for the shoes. After several days, he remains stuck. Woodell relates a name Johnson had in a dream: Nike. When the moment comes to make a decision, Knight chooses the name Nike.

In June 1971 Blue Ribbon begins offering “two hundred thousand shares of debentures, at one dollar per” (185).

The shoes made at the factory in Mexico fall apart too easily. Nissho hires a man named Sole as a consultant to assist with such problems. Sole and Knight both dislike Kitami, and Sole promises to help Knight defeat Kitami. When Knight asks if Sole knows of any factories where he can make more Nikes, Sole claims to know of many.

The factories Sole has in mind are all in Japan. Knight flies out to Japan to tour the factories

same year, the University of Oregon football team wears Nikes during a defeat of rivals Oregon State.

Chapter 12 Summary: “1973”

After a disappointing fourth-place finish at the Olympics, Prefontaine begins training and racing again. He sets an American record in the 5,000-meter distance while wearing Nikes. Blue Ribbon hires Prefontaine as a celebrity endorser. An employee named Hollister is given the job of driving with Prefontaine around the country to meet and influence runners, coaches, and fans.

Knight decides that Johnson and Woodell should swap locations and jobs. Johnson comes back to the West Coast to work on designing shoes in Oregon, and Woodell goes out to the East Coast to oversee administrative tasks.

Onitsuka files a suit against Blue Ribbon in Japan, so Knight moves to file against Onitsuka in the United States for “breach of contract and trademark infringement” (227).

Cousin Houser tells Knight that he’s hiring a new lawyer named Rob Strasser. Knight likes Strasser from their very first meeting. He’s extremely tall and has a full beard. He and Knight have a number of personal connections, including the fact that they are both from Oregon.

In fall 1973 Knight convinces many retailers to adopt what he calls a Futures program, in which retailers give Knight “large and nonrefundable orders, six months in advance” (235) in return for heavy discounts. Such an arrangement would provide Knight with more security, which in turn would allow him to take out more credit with Nissho and Bank of California. The futures program proves successful.

In September 1973 Penny gives birth to a second son, whom they name Travis.

Chapters 10-12 Analysis

Knight’s greatest challenge in Chapter 10 is the threat that Onitsuka will find a new US distributor. Although Onitsuka and Blue Ribbon have a formal, binding contract, Knight learns through various channels that Kitami might break that contract if he finds a suitable replacement for Blue Ribbon. Although Knight would greatly like to break free of his dependence on Onitsuka once and for all, it makes more financial sense to maintain the

relationship for as long as possible. And so, when Kitami visits the United States, Knight focuses his efforts on ensuring that Kitami has a fantastic time.

Under normal circumstances there is already tension between Knight and Kitami. Throughout Shoe Dog, Knight makes clear that he dislikes Kitami. But during Kitami’s trip to the United States, there are even more layers of tension and subtext than usual. For one, Knight knows that Kitami is primarily in the United States in search of a new distributor and will cut Blue Ribbon out of Onitsuka’s deals if the opportunity arises. But since Knight hopes to maintain his relationship with Onitsuka for as long as possible, he must pretend not to know of Kitami’s plans. A second layer of complexity is added by the fact that Knight does plan to free himself of his dependence on Onitsuka. And so, just as Kitami hides the fact that he is searching for a new advantage by seeking a new distributor, Knight hides that he is seeking an advantage by preparing for the moment when Onitsuka cuts Blue Ribbon off.

These tensions emerge in Chapter 10, when Knight steals files from Kitami’s suitcase, and again at the end of Kitami’s trip, when he asks Knight to sell Blue Ribbon to Onitsuka. These details reemerge in later chapters when Onitsuka and Blue Ribbon meet in court to settle their disagreements. But perhaps the most important result of Knight’s conflict with Onitsuka is his choice to begin producing his own shoes. Although in one sense, being cutoff from Onitsuka’s supply poses a fundamental risk to his company, in another sense it represents an opportunity that Knight has long waited for.

It is in Chapter 10 (the year 1971) that Knight produces the first Nike shoes, settles on the famous Nike swoosh, and comes up with the Nike name. In the same year he establishes an important new partnership with the Japanese trading company Nissho, which allows him access to greater levels of credit. It is largely a prosperous time for Knight. As he says, “Sales of Nike were steady, my son was healthy, I was able to pay my mortgage on time. All things considered, I was in a damned fine mood” (213).

Chapters 13-

Chapter 13 Summary: “1974”

On April 14, 1974, Knight sits in a courthouse in downtown Portland alongside Cousin Houser and Strasser. At the opposing table are the lawyers representing Onitsuka. Onitsuka’s head lawyer is Hilliard, a short man who makes everything he says sound “sinister” (238). Blue Ribbon’s head lawyer is Cousin Houser.

Knight speaks with Holland over the phone that same night. Holland informs Knight that the FBI has been called because the bank believes Blue Ribbon is a fraud.

After meeting with Woodell and others, Knight realizes that all depends on Nissho’s assessment and approval. Meanwhile, Blue Ribbons’ checks to creditors begin bouncing. Two creditors in particular claim they are coming to Portland to collect their payments.

On a Monday morning at 9:00 a., Ito and Sumeragi arrive to go over Blue Ribbon’s books. Although they see that Knight has used Nissho funding to pay for a factory, they ultimately forgive him. This leaves the FBI as the only remaining problem. Hayes, Knight, and Ito meet with Holland at the Bank of California. Ito tells Holland that Nissho would like to pay off Blue Ribbon’s debt in full. Knight understands before leaving the office that “there would be no more FBI investigation” (273).

Chapter 15 Summary: “1975”

Hayes and Knight scramble to find a new bank to cover them. First State Bank of Oregon agrees to give them $1 million in credit.

Prefontaine hosts a meet in Eugene, where he races and beats Olympic gold medalist Frank Shorter in the 5,000-meter race. Afterward, there is a party at Hollister’s house. Prefontaine drives Shorter home from the party and shortly after loses control of his vehicle. Knight receives a call from Ed Campbell at Bank of California early in the morning. Campbell tells him that Prefontaine has died. He was 24 years old, the same age Knight was when he first left for Hawaii.

Chapters 13-15 Analysis

Nike faces two of its greatest challenges in these chapters. The first of these is its trial against Onitsuka in Chapter 13. Although Knight, Bowerman, Johnson, and Woodell all make mistakes during the trial, they wind up winning the case. Through the process, Knight also acquires an important new team member for Nike: Strasser. Just like Hayes and Woodell before him, Strasser proves to be an invaluable asset for Knight and goes on to become part of the company’s core. More than just a talented lawyer, Strasser is an Oregonian and a true believer in Nike’s cause. For these reasons, Knight tells Strasser, “You’re one of us” (250).

A second wave of challenges comes when Knight’s partners at Bank of California tell him, “we no longer want your business at this bank” (262). This creates several consequences that require Knight to empty funds from his retail store accounts. Employees’ and creditors’ checks bounce. The problem is only resolved when Knight’s creditors at Nissho decide to step in and help. In an unexpected act of grace and forgiveness, Nissho overlooks the fact that Knight had used Nissho’s funds to buy a factory without notice.

In addition to these business challenges, there are also emotional challenges. Prefontaine, one of the early icons and legends of the Nike brand, dies in a car crash after a track meet in Eugene in 1975. This is tragic for many reasons, including the fact that Prefontaine had been returning to form following a disappointing performance in the 1972 Olympics. The loss is especially difficult for Bowerman, who said at Prefontaine’s funeral, “Pre was determined to become the best runner in the world, but he wanted to be so much more” (280). Ultimately, Knight suggests that Prefontaine’s spirit is embedded in the spirit of Nike.

Chapters 16-

Chapter 16 Summary: “1976”

Dispirited after the death of Prefontaine, Bowerman offers to sell Knight two-thirds of his stake in Blue Ribbon. Knight reluctantly agrees but convinces Bowerman to stay on as a vice president and member of the board.

Knight sees enormous success throughout 1976 with Bowerman’s waffle-trainer shoes. He redefines his sales goals to accommodate such success. The waffle-trainers give Nike “something we’d always lacked—an identity. More than a brand, Nike was now becoming a household word” (284).

To meet growing demand, Knight looks to Taiwan to open new factories. He flies there with Jim Gorman, a trusted employee. They find one factory in the small town of Douliou that shows promise. They meet with a man named Jerry Hsieh in Taipei, who offers to connect them with factories in Taiwan.

At the 1976 Olympic Trials in Eugene, the top three finishers in the 10,000-meter racewear Nikes. Shorter wins the marathon, and a runner named Craig Virgin wins the 5,000, both in Nikes. At the 1976 Olympics in Montreal, however, Knight is surprised and disappointed to discover Shorter toeing the line in Tigers.

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Shoe Dog Summary and Analysis

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Overview
Shoe Dog is a first-person memoir written by Nike co-founder Phil Knight. It was published in
2016. Shoe Dog primarily recounts the events from 1962, the year Knight traveled around the
world as a young man, to 1980, the year Nike went public and Knight became a
multimillionaire. The years in between are comprised of the struggles and challenges Knight
faced as he worked to build the company that would ultimately be known worldwide as Nike.
Shoe Dog is divided into 20 chapters, each one roughly corresponding to one year in Knight’s
life. In addition to the challenges related to building a company, Knight also reflects on the
challenges and triumphs he faced as a son, as a young man searching for his identity, as a
husband, and as a father.
After completing undergraduate studies at the University of Oregon and business school at
Stanford, Knight returned to his parents’ home in Portland, Oregon, in 1962, where he received a
loan from his father to travel around the world. While in Japan, Knight met with executives at
Onitsuka Tiger, a Japanese shoe company, which agreed to send Knight shoe samples to sell
back in the United States. In 1964 Knight began selling Onitsuka shoes in earnest throughout
the West Coast. That year he also partnered with Bob Bowerman, his college track-and-field
coach; Knight oversaw the managerial and financial end of things, while Bowerman
experimented with shoe design. Over the years Blue Ribbon grew into a thriving company. When
Onitsuka and Blue Ribbon became bitter rivals and parted ways, Knight was forced to begin
producing his own shoes, which he ultimately called Nikes. Bowermans designs influenced
many of Nikes iconic styles, including its waffle trainers.
In the years that followed, Nike faced $1 million payments to creditors, dirty tricks played by
competitors, the death of Prefontaine (a beloved Oregonian distance runner and Nike
celebrity-employee), and many other challenges. Through it all, Knight told himself to “never
stop.” The result of his perseverance is Nike, a multibillion-dollar brand worn by many of the
world’s best athletes and recognized across the globe.
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