Part IV Reading Comprehension (Reading in Depth) (25 minutes)

Section A

Questions 47 to 51 are based on the following passage.

   One of the major producers of athletic footwear, with 2002 sales of over $10 billion, is a company called Nike, with corporate headquarters in Beaverton, Oregon. Forbes magazine identified Nike’s president, Philip Knight, as the 53rd-richest man in the world in 2004. But Nike has not always been a large multimillion-dollar organization. In fact, Knight started the company by selling shoes from the back of his car at track meets.

In the late 1950s Philip Knight was a middle-distance runner on the University of Oregon track team, coached by Bill Bowerman. One of the top track coaches in the U.S., Bowerman was also known for experimenting with the design of running shoes in an attempt to make them lighter and more shock-absorbent. After attending Oregon, Knight moved on to do graduate work at Stanford University; his MBA thesis was on marketing athletic shoes. Once he received his degree, Knight traveled to Japan to contact the Onitsuka Tiger Company, a manufacturer of athletic shoes. Knight convinced the company’s officials of the potential for its product in the U.S. In 1963 he received his first shipment of Tiger shoes, 200 pairs in total.

In 1964, Knight and Bowerman contributed $500 each to from Blue Ribbon Sports, the predecessor of Nike. In the first few years, Knight distributed shoes out of his car at local track meets. The first employees hired by Knight were former college athletes. The company did not have the money to hire “experts”, and there was no established athletic footwear industry in North America from which to recruit those knowledgeable in the field. In its early years the organization operated in an unconventional manner that characterized its innovative and entrepreneurial approach to the industry. Communication was informal; people discussed ideas and issues in the hallways, on a run, or over a beer. There was little task differentiation. There were no job descriptions, rigid reporting systems, or detailed rules and regulations. The team spirit and shared values of the athletes on Bowerman’s teams carried over and provided the basis for the collegial style of management that characterized the early years of Nikes. 

47. While serving as a track coach, Bowerman tried to design running shoes that were lighter and more shock-absorbent.

48. During his visit to Japan, Knight convinced the officials of the Onitsuka Tiger Company that its product would have potentials in the U.S.

49. Blue Ribbon Sports as unable to hire experts due to the absence of established athletic footwear in North America.

50. In the early years of Nike, communication within the company was usually carried out informally.

51. What qualities of Bowerman’s teams formed the basis of Nike’s early management style?