...Identify a global organization with a multinational presence. *Nike Identify and research a cultural issue that affects this organization's interactions outside the United States. Define the issue and provide an overview of how became an issue in the organization. Prepare an analysis of the ethical and social responsibility issues your organization must deal with as a result of being global. Write a 1,050- to 1,400-word paper summarizing the results of the analysis. Include the following: • Identify ethical perspectives in the global organization. • Compare these perspectives across cultures involved in the organization. • Describe a viable solution for this issue that could be acceptable by all stakeholders. Introduction: The Nike Corporation In today’s economy, there are several corporation that use multinational tactics in order to make their business strive and successful. A great benefit of multinational corporations is that it helps create wealth and jobs around the world. These corporations also offer much needed foreign currency for developing economies. However, there are many disadvantages such as multinational companies have monopoly power which enables them to make excess profit and pushing local shops off the map. A global multinational company that is very recognized and popular around the world is The Nike Corporation. The Nike Corporation was originally known as Blue Ribbon Sports (BRS). It was founded in January 1964 by Philip Knight...
Words: 1131 - Pages: 5
...Cross Cultural Perspectives Fred (Bo) Hampton ETH 316 January 30, 2012 Chuck Thompson Cross Cultural Perspectives The Nike Corporation is a well known global organization. From the very beginning the company has turned to other countries as a means of cheap labor. Nike was started in 1964 as Blue Ribbon Sports. Over the years Nike have had a few challenges with cultural issues. Nike has been criticized for using some factories that are located in China, Vietnam, Indonesia and Mexico. The factories that they were using in Vietnam was documented for violating minimum wage and overtime laws, they have made the changes to correct these mistakes. During the 1990s, Nike faced criticism for the use of child labor in Cambodia and Pakistan in factories it contracted to manufacture soccer balls. Although Nike took action to curb or at least reduce the practice, they continue to contract their production to companies that operate in areas where inadequate regulation and monitoring make it hard to ensure that child labor is not being used. A July 2008 investigation by Australian Channel 7 News found a large number of cases involving forced labor in one of the largest Nike apparel factories. The factory located in Malaysia was filmed by an undercover crew who found instances of squalid living conditions and forced labor. Nike has since stated that they will take corrective action to ensure the abuse does not continue with in any of the factories that they are contracted...
Words: 1165 - Pages: 5
...Global Organization and Cultural Perspective (Nike) Once an organization, like Nike, becomes a global organization, and the business goes to other countries to gain more profits, it will encounter challenges and ethical issues. Some of the challenges for a global organization are child labor laws, wages, and outsourcing. An example is a Nike sweatshop labor case that stirred up a big controversy over ethical business practices. Because of this issue the organization has to deal with the negative perception, and the organization needed to solve this ethical issue to remain profitable and ethical in the eyes of the consumers and stakeholders. The Nike Corporation is one of those global organizations which brought their business to other countries to provide economic opportunity to the host country, and in turn obtain more profits due to cheap labor cost. The organization outsourced its manufacturing plants to several countries in order to lessen costs and become more efficient in productivity. The outrage and protests that followed were far from what Nike expected; the company was labeled as forcing “children to slave away in hazardous conditions for below-subsistence wages” (Hill, 2009). Because of this issue, a wide protest of globalization and human rights activists accused the Nike organization for taking advantage of the workers overseas and exposing their workers in unsafe working environment. Although Nike was making billions of dollars in profit, however, it has...
Words: 1009 - Pages: 5
...Cross-Cultural Perspectives When an organization is started, it is generally unknown. As the organization grows, it influences and is influenced by the population and economy around it. If the people in charge of that organization or corporation are using a strong ethical basis for their decision making, they will probably make sound decisions and will not have many problems with their character being questioned. However, all too often, companies make decisions based on financial gain instead of humanities. As a company moves into other areas of the globe and creates a multinational presence, the number of people affected by its policies and regulations grows along with it. If the company is being operated with questionable ethical principles, it can create cultural issues within the organization. This is what happened within the Nike Corporation as a result of their labor policies as they searched for cheap labor to increase the financial gain (Stabile, 2000). Nike, Inc. was started in 1964 by Philip Knight as Blue Ribbon Sports. Mr. Knight made a deal with the Japanese firm Onitsuka Company, Ltd., and they were among the first to take advantage of Asian-produced, inexpensive imitation footwear. In 1960, shoes that had been imported from other countries only accounted for four percent of the shoes sold in the United States. By 1969, that number had risen to 32 percent and by the year 1984 72% of the shoes sold in the United States were being imported from other countries...
Words: 1174 - Pages: 5
...business in another country and will not gain the competitive advantage they strived for when deciding to conduct business globally. Also, if a company does not enter the global market prepared they could run into problems that they did not foresee, which could result in damage to the company name and image, not only affecting international business but domestic business as well. This in turn could create the company to sustain profit losses and gain a tarnished reputation that they would have to fix to regain their competitive advantage and above average returns. In order to be a successful in operating in another country multinational enterprises must have a manager or a set of mangers to deal with three very complex external demands, cross-market integration, national responsiveness, and worldwide learning. (Bartlett et al, 2008). No matter what aspect attracts a company to another country whether it is, economies of scale, economies of scope, factor costs, or liberalization of world trade, the company must come into that global market aware of all the differences pertaining to the eight-facet model for analyzing country environments. The company needs to be aware of the differences...
Words: 3658 - Pages: 15
...Cross-Cultural Perspectives Justin P Levick ETH/316 January 4, 2013 The Nike Corporation was started in the 1960’s under the name of Blue Ribbon Sports by Phil Knight and Bill Bowerman. Knight, a University of Oregon coach, was determined to make running shoes lighter and better. In 1979, the Nike brand was formed and opened its first retail store in Santa Monica, California. They continued over the next few decades to grow to one of the largest athletic footwear and attire stores in the world. However, as we all know, with the growth sometimes comes aches. Nike was expanding so quickly internationally that they began finding themselves in different countries facing numerous allegations ranging from poor work conditions to child-labor law violations. In fact, in 1998, Nike was starting to become “synonymous with slave wages, forced overtime, and arbitrary abuse” (The Nike Controversy, 2010). In 2009, there were allegations that Nike was violating child labor laws after opening a plant in Pakistan. There were accusations that Nike had young children in their plant making soccer balls. Although Pakistan does not have laws prohibiting children from working and, in fact, most Pakistani parents believe their children should work to help the household, it is a well-known fact that the United States has child labor laws and many people were upset at Nike’s acceptance and use of the children in their Pakistan facilities. Also,...
Words: 1188 - Pages: 5
...In the past few weeks, I worked with my group on our company’s expansion strategy into Hong Kong. From this group work experience, I was able to relate our teamwork to exiting theories on multi disciplinary decision making approach and group theory as well as other contents that I learned throughout this course such as importance of cultural distance and understanding personality in building an effective team. In this reflective essay, I will briefly explain above mentioned theories and link it to my experience in this group work and talk about how I can utilize my learnings in the future. Multi disciplinary decision making approach is one of the decision making models in which it attempts to take all role-players and stakeholders’ perspectives into account in reaching objectives. It is based on Singer and Churchman’s (1971) concept of unbounded systems thinking which assumes that any problem can cause effect to surrounding...
Words: 870 - Pages: 4
...MAJOR ISSUES AND TRENDS IN OPERATIONS MANAGEMENT I. COMPUTER AIDED MANUFACTURING/COMPUTER AIDED DESIGN * It is the use of computer software to control machine tools and related machinery in the manufacturing of workpieces. * It also refers to the use of a computer to assist in all operations of a manufacturing plant, including planning, management, transportation and storage. * Its primary purpose is to create a faster production process and components and tooling with more precise dimensions and material consistency, which in some cases, uses only the required amount of raw material (thus minimizing waste), while simultaneously reducing energy consumption. * It is a subsequent computer-aided process after computer-aided design (CAD) and sometimes computer-aided engineering (CAE), as the model generated in CAD and verified in CAE can be input into CAM software, which then controls the machine tool CAD / Computer-Aided Design Computer-aided design (CAD) is the use of computer programs to create two- or three-dimensional (2D or 3D) graphical representations of physical objects. CAD software may be specialized for specific applications. CAD is widely used for computer animation and special effects in movies, advertising, and other applications where the graphic design itself is the finished product. CAD is also used to design physical products in a wide range of industries, where the software performs calculations for determining an optimum shape...
Words: 2687 - Pages: 11
...theory and the framework of consumer behavior analysis for The Nike Fuel Band. The product will replace workout logs, physical trainers and other sports accessories. The campaign of Nike fuel band targets the athletic shoe and apparel industry. Nike is known for their innovative designs and their active friendly technology within the health conscious Australian community. Nike has produced a comprehensive focused-differentiation strategy with the Nike fuel band, which is mainly comprised of gamification. Our campaign focuses on the positive reinforcement of using the Nike Fuel band and all the benefits the band can offer someone. The main goal will be to focus on Nike as a company and how create loyalty to the current customers, as well as gaining new ones. Through challenges, achieving different levels, and attaining an overall Nike + ranking, consumers are motivated to participate in physical activity, join a team, and start a challenge. In doing this, consumers see their progress and are able to track their daily activities and their calories burned during activity. It is an effective and dynamic way that Nike utilizes its target market and increases brand awareness. After watching our campaign we hope that it motivates consumers to want to purchase the Nike fuel band, as a fun way to keep active by competing, collaborating, and comparing activities with others in the Nike + network. Through this campaign, Nike will demonstrate not only why they are leaders through their products...
Words: 3519 - Pages: 15
...Global Entrepreneur Definition of global entrepreneur: Global entrepreneurs are professionals who use their global understanding and connections to identify transnational and cross-cultural opportunities and turn them into new value-creating initiative. .In other words we can say that A global entrepreneur seeks out and conducts new and innovative business activities across national borders. These activities may consist of exporting, licensing, opening a new sales office, or acquiring another venture. _________________________________ ------------------------------------------------- Are you a Global Entrepreneur? Are You Ready To “Go Global?” Strategic motives must drive the decisions to conduct business globally. - But what is your action plan? - Where do you begin? - How do you begin? - Which markets should be entered first? - What would be the optimal mode of entry? - How rapidly should you expand globally? Predictions:- We are living in a world where all the major business functions in the value chain are highly globalized and deeply integrated. According to McKinsey and Company, 80 percent of the world’s GDP will be sold across international borders by 2027, compared to about 20 percent in 2001. Multinational business activity will grow from approximately $5 trillion to $70 trillion by 2027. To understand how this is happening consider your desktop computer. It might have been assembled in Mexico with Chinese components; it uses chips designed in the United...
Words: 1889 - Pages: 8
...International Management Culture, Strategy, and Behavior Ninth Edition Fred Luthans University of Nebraska-Lincoln •Jonathan P. Doh Villanova University Mc Graw Hill Education Table of Contents Part One Environmental Foundation 1 2 The World of International Management: An Interconnected World Introduction Globalization and Internationalization Globalization, Antiglobalization, and Global Pressures Global and Regional Integration The Shifting Balance of Economic Power in the Global Economy 2 4 6 6 9 12 Global Economic Systems Market Economy Command Economy Mixed Economy 19 19 19 20 Economic Performance and Issues of Major Regions Established Economies Emerging Economies Developing Economies on the Verge 20 20 22 26 The World of International Management—Revisited 30 Summary of Key Points 32 Key Terms 32 Review and Discussion Questions 32 Answers to the In-Chapter Quiz 33 Internet Exercise: Global Competition in Fast Food 33 In the International Spotlight: India 2 Globalization and International Linkages 34 The Political, Legal, and Technological Environment 36 The World of International Management: Social Media and the Pace of Change 36 Political Environment Ideologies Political Systems 38 39 41 Legal and Regulatory Environment Basic Principles of International Law Examples of Legal and Regulatory Issues Privatization Regulation...
Words: 2319 - Pages: 10
...Chapter 17 Outline Procter & Gamble in Japan: from Marketing Failure to Success Introduction The Globalization of Markets? Market Segmentation Product Attributes Cultural Differences Economic Differences Product and Technical Standards Distribution Strategy A Typical Distribution System Differences between Countries Choosing a Distribution Strategy Communication Strategy Barriers to International Communication Push versus Pull Strategies Global Advertising Pricing Strategy Price Discrimination Strategic Pricing Regulatory Influences on Prices Configuring the Marketing Mix New Product Development The Location of R&D Integrating R&D, Marketing, and Production Cross-Functional Teams Implications for the International Business Chapter Summary Critical Discussion Questions Nike--The Ugly American? Procter & Gamble in Japan: from Marketing Failure to Success Procter & Gamble (P&G), the large US consumer products company, has a well-earned reputation as one of the world's best marketers. With its 80-plus major brands, P&G generates more than $37 billion in annual revenues worldwide. Along with Unilever, P&G is a dominant global force in laundry detergents, cleaning products, and personal care products. P&G expanded abroad after World War II by exporting its brands and marketing policies to Western Europe, initially with considerable success. Over the next 30 years, this policy of developing new products and marketing strategies in the United States and...
Words: 16584 - Pages: 67
...identified shortlist of markets with potential 5 External Factor Analysis 6 Porter’s 5 Forces Analysis: 6 McKinsey’s 7 S Strategy: 6 Using a clear and identified screening criterion, select two recommended markets with clear justification as to why these markets have been selected 6 Recommended and justified market entry strategy to take Nike Inc. into each of these markets 8 Recommended adaptations to Nike’s marketing mix for the proposed markets, ensuring differences in culture and consumer behaviour are recognised in their marketing mix activity 9 Conclusion 11 References 12 Appendix 15 Introduction International market expansion requires thorough understanding of market and its dynamics for ensuring expected profit and performance. In context to that, the case of Nike Inc. would be analysed. The company wants to increase their brand value and sales through international expansion. Therefore, cities from two developing markets have been selected as prospective destinations. These are Panadura (Sri Lanka) and Agrinio (Greece). These cities would be analysed to check their suitability for being locations of Nike stores. An analysis of the macro and micro factors impacting on the sports retail market and the market recommendations The sports retail market could be analysed in proposed markets through vivid understanding of macro and micro factors affecting it. PEST Political: The current political state in Sri Lanka is stable. The sports policy of...
Words: 4700 - Pages: 19
...Organizational Dynamics, Vol. 28, No. 4, pp. 52-66, 2000 © 2000 Elsevier Science, Inc. ISSN 0090-2616/00/$--see frontmatter PII 50090-2616(00)00005-X When Ethics Collide: Managing Conflicts Across Cultures PAUL F. BUllER JOHN J. KOHLS KENNETH S. ANDERSON Nike-one of the fastest-growing companies in the world-has been stymied recently due in part to consumer reaction to conflicts involving management practices in its suppliers' factories in the Far East. Among the accusations-poor working conditions, low wages, enforced over time, and harsh, sometimes brutal, discipline and corporal punishment. Levi Strauss & Co. was recently confronted with the challenge of how to deal with contractors in Bangladesh that employed young children, a legal practice in Bangladesh, but one contrary to Levi's company policy. The fact that these chil dren were often a sole or significant source of their family income further complicated the mat ter. Tony Anderson, Chairman and CEO of H. B. Fuller Company, was faced with a decision re garding the company's responsibility for illegiti mate use of one of its products. Resistol, a tolu ene-based glue, has become an addictive drug of choice for many Central American street chil dren. These "Resistoleros" inhale the glue and often experience violent reactions and serious health problems, including kidney failure and brain damage. ness practices. Ethical conflicts may involve a variety of issues: • bribery and extortion, as in the highly publicized...
Words: 7825 - Pages: 32
...Reducing cultural shock with global brands and advertising Eliane Karsaklian - Advancia-Negocia Abstract This paper aims at demonstrating that expatriates represent a specific target for companies as they tend to consume global brands during their stay abroad in order to avoid cultural shock and thus should be addressed with specific communication. The literature review articulates global brands and advertising with cultural shock, explained on the basis of Trompenaars and Hampden-Turner’s dilemmas’ theory. The qualitative method used in this research were 53 in-depth interviews. Results demonstrated that expatriates relay on well-known brands to adapt to new environments when they are abroad and that specific advertising help them to reconcile dilemmas. Key words: Global brands, advertising, expatriates, cultural shock Introduction Economic and social factors are working to increase global competition and global operations, and subsequently an acceleration of traffic in expatriation and repatriation. Johansson and Ronkainen (2005) state that research shows that one of the most common features of a globally integrated marketing strategy is the adoption of one brand name around the world, whereas Callow and Schiffman (2002) talk about how advertising interpretations are dependent on cultural factors of the viewer. Therefore, the present paper is relevant because it demonstrates that particular attention should be drawn to expatriates during their sojourn abroad. While struggling...
Words: 3553 - Pages: 15
