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9. 1969
Themes
Key
LitCharts assigns a color and icon to each theme in Shoe Dog, which you can use to track the themes throughout the work.
Entrepreneurship, Experience, and Perseverance
Leadership
Global Economies
Balancing Family and Work
Summary
Analysis
Just before Christmas of 1969, Knight travels to Japan again. He feels bad leaving Penny alone with a newborn child, but he feels he does not have a choice. He has to sign a new deal with Onitsuka because the new one is about to expire. When Knight arrives, he participates in a meeting featuring Mr. Onitsuka himself. Mr. Onitsuka offers Knight another three-year contract. Knight appreciates the offer but wants more because he knows it will help him with his bank. He asks Mr. Onitsuka for a five-year deal instead.
Despite his love for his family, Knight continues to put Blue Ribbon before them. He recognizes that his contract negotiations with Onitsuka are an existential problem for Blue Ribbon, and if they do not succeed, Blue Ribbon will fail. Knight wants a longer contract because it will give his bank more confidence in him and allow him to take out larger loans.
Themes
However, Onitsuka rejects the counteroffer. He thinks his company’s success is largely due to Kitami, and he informs Knight that, from now on, Kitami will be the company’s full-time operations manager. In other words, Blue Ribbon’s future is now in Kitami’s hands. Knight is uncomfortable with this development, but he can do nothing about it.
Because the memoir is from Knight’s perspective, it is difficult to tell how much Kitami contributes to Onitsuka’s success. Knight only sees the small part he plays in Onitsuka and, because Kitami could spell a problem for Blue Ribbon, Knight is not fond of him.
Themes
Knight’s frustrations with Onitsuka are not limited to their management. Often, their shipments arrive late and contain the wrong shoes. Their delivery problems are causing all sorts of issues for Blue Ribbon. In particular, Johnson is frustrated because the Cortez model Bowerman created has become incredibly popular in America, yet he never has any in stock. He feels as though he is letting his customers down by advertising a shoe that is never in stock.
Onitsuka’s incorrect shipments suggest they do not care as much for the products they are exporting, as they do for the ones they sell domestically. This is frustrating for the Blue Ribbon folks because they already feel like Onitsuka is not giving them the respect they deserve for the hard work they have put in.
Themes
To make matters worse, it becomes harder and harder for Knight to secure a loan with his bank. He already has a cash flow problem, and the regular problems with Onitsuka’s shipments are magnifying the problem. When Knight goes in to ask for a loan of $1.2 million, his bank finally turns him down. They do not feel comfortable paying that much money to a company without cash in the bank.
$1.2 million in 1970 is the equivalent to nearly $8 million today. In other words, Knight is asking for an extraordinary amount of money with little guarantee he can pay it back. Although Knight resents his bank for not lending him the money, the bank’s position is quite reasonable and in line with the lending standards of the time.
Themes
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Because Knight does not have any cash, he has to ask Onitsuka to delay their next shipment. He tries to assure Kitami that everything is fine, but he worries that Kitami will see right through his reassurances. Knight knows he could fix his cash flow issue if he makes Blue Ribbon a publicly traded company. However, he does not want to be accountable to the public; he enjoys doing what he wants to do on his own terms.
Essentially, Knight never stops and gives Blue Ribbon a chance to build up cash before taking out another loan. If he wants to continue growing his business at a similar rate, making it a publicly traded company is the only viable option because people could buy shares of Blue Ribbon, giving Knight access to the cash he needs.
Themes
Instead, Knight starts petitioning some venture capital firms, which are just starting to spring up in Silicon Valley. However, no one seems to want a part in Blue Ribbon. Because he cannot get any financial backing, Knight waits until Blue Ribbon brings in enough money to pay for the next shipment. Every instance he gets, Knight continues to petition on Blue Ribbon’s behalf, but no one bites.
Venture capital firms are private institutions where wealthy investors risk their money by financing up-and-coming businesses and products. They are not subject to the same regulations as banks and can theoretically lend as much money as they want, though there is always a risk they could lose it.
Themes
One day, Woodell tells Knight that he and his family want to loan Knight $5,000. Knight knows Woodell and his family are not rich, and they are likely lending him almost everything they have. When Knight goes to pick up the check, Woodell’s parents ask him if he needs more than $5,000, and Knight says he does. Woodell’s parents proceed to give him their last $3,000. When Knight asks Woodell’s parents why they are being so generous, Woodell’s mother responds, “If you can’t trust the company your son is working for, then who can you trust?”
This exchange between Knight and Woodell's family is both a low and high point for him. On the one hand, Knight feels bad for taking money from a family he knows is not wealthy; however, on the other hand, Knight is proud he has built something that the Woodells trust, and he appreciates their support. However, with their finances in mind, Knight has even more pressure to succeed than before.
Themes
Knight finds that with all the stress of Blue Ribbon, he has begun to get out of shape. In the summer of 1970, he starts running again and quickly feels better. Around the same time, Knight discovers an article about Japanese trading companies. After reading the article, he discovers a sign next to his bank for the Bank of Tokyo. He feels like a fool for having not spotted it previously.
Although Knight tries to balance every aspect of his life, one of them always falls behind—his personal health, in this case. Meanwhile, Knight’s ignorance of the potential support available to him speaks to how relatively new he still is to the business world.
Themes
Knight goes to the Bank of Tokyo and speaks to a financier about his company. The bank quickly offers Knight a deal that would solve his equity problem for the time being. However, before he can take the deal, he must make sure it is okay with Onitsuka. Knight writes to Kitami, hoping to hear back quickly, but several days go by, and he does not get a response.
Every time it looks like Knight is starting to make some headway, another problem pops up. In particular, Knight is worried about his relationship with Onitsuka because they can crush Blue Ribbon if they wish.
Themes
Things go from bad to worse when Knight gets a call from a shoe distributor who says that Onitsuka approached them about being their sole U.S. distributor a few days later. The call makes Knight furious; he cannot believe that Onitsuka would backstab him so quickly and brutally. However, before he does anything rash, he realizes he needs to speak with Kitami and try to change his mind. He decides the best way to do this is to invite Kitami to the U.S. for another visit.
Here, all of Knight’s worst fears are realized as he discovers that Onitsuka is looking to move past Blue Ribbon. Because of his current business model, Knight cannot survive without Onitsuka; Onitsuka creates all of his shoes, and they own Bowerman’s designs. However, Knight cannot fully express his anger to Kitami because he wants to retain his relationship with Onitsuka for the time being.
Themes
