...Globalisation NIKE – just do it Introduction Nike, Inc. is an incorporated company that designs, develops and markets worldwide athletic footwear, apparel, equipment and accessories. Nike is the biggest seller of athletic footwear and athletic apparel in the world and creates designs for men, women and children. Nike employs both traditional and non-traditional distribution channels in almost 200 countries with primary market regions in the United States, Europe, Asia Pacific, and the Americas. Nike has some 20,000 retailers worldwide including Nike factory stores, Nike stores, Nike Towns, Cole Haan stores and Web sites which sell Nike's sports and leisure products. Nike markets its products under its own brand, as well as Nike Golf, Nike Pro, Nike+, Air Jordan, Nike Skateboarding, and subsidiaries including Cole Haan, Hurley International and Converse. Nike accounts for 33% of the global market share in the athletic footwear industry. Nike sponsors many high profile athletes and sports teams around the world with the highly recognized trademarks of Just do it (www.nike.co.uk). GLOBALISATION: Globalisation is defined as the micro- phenomenon where there are a free flow of capital efficiency, technology and other factors of production which promote world welfare in its strides. (Nande and Dias, 2007.,p.2) KEY DRIVERS OF GLOBLISATION: there are three main factors which motivate the globalisation of markets and production which are explained as under: Falling barriers to trade...
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...Political Factors -Beneficial US Government Policies The US government particularly favours entities that are engaged with countries around the world. Hence, the expansion and growth of the company is partly due to the growth-oriented policies initiated by the government. The foster of Nike’s growth was due to the international competitive tax arrangements, stable government and trade regulations by the Federal Reserve (Whitehead, 2012). Moreover, Nike is able to receive tax benefits as it is highly recognised for its business strategies that are environmental-friendly. Economic factors -Fluctuation of profit margins International markets are major contributions to Nike’s profit margin. Thus, the stability of international interest rates and...
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...environments on business activities within a selected organisation. Nike is a global brand specialising in the design and manufacture of athletic apparel, footwear, accessories and equipment; it is headquartered in the United States, Europe, and the Asia Pacific Region. Its products are available through over 20,000 retail outlets, including those in its own footfall outlets, e.g. Nike Factory stores. This study considers the contemporary business environment of Nike using a PESTLE approach, paying particular attention to any human resources management (HRM) issues that may arise under each heading. Overall, it is argued here that Nike has attempted to address various business and social challenges by harmonising its value proposition to ‘Consumers, shareholders, business partners, employees, and the community.’ There are many external environmental factors that can affect your business. It is common for managers to assess each of these factors closely. The aim is always to take better decisions for the firm’s progress. Some common factors are political, economic, social and technological (known as PEST analysis). The political factors affecting business are often given a lot of importance. Several aspects of government policy can affect business. The political environment can impact business organizations in many ways. It could add a risk factor and lead to a major loss. You should understand that the political factors have the power to change results. It can also affect...
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...Research Report Executive Summary This report examines the global company Nike and how it progressed from a small American based company to one of the largest sporting footwear and apparel brands in the world. The entry mode into global business chosen by Nike of contract manufacturing has allowed the company to benefit on two particular fronts. Nike outsourced the manufacturing element of the business initially to China and later expanded to over 750 factories mostly across South East Asia to capitalise on the abundance of low cost labour available to manufacture its products. Contracting out the manufacturing function also allowed the company to focus all of its energy and resources on developing innovative products and then marketing these products across the world. A core value of the Nike organisation is innovation which is embedded in its strategic direction. It developed a culture where no idea is a bad one and innovation is highly valued. This relates both to product development and marketing opportunities. Having this strong focus on innovation has allowed the company to continue to be a world leader in the creation and production of sporting good without the need or desire to diversify into different business streams. Nike has also displayed innovation throughout other business decisions to ensure it tackles environmental issues head on. This attitude took the potentially damaging situation of Nikes association with sweatshops and the perceived exploitation of factory...
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...COMPANY SYNOPSIS NIKE, Inc. NIKE is a multinational recognized company that is coined as one of the largest sellers of athletics footwear and apparel with revenues grossing $30,601 million. (Marketline, 2016) Its management team consists of an executive board of directors, corporate governance team and a board of directors. Its Board of Directors Philip H. Knight, is one of its co-founders. Knight and his partner Bill Bowerman founded at that time Blue Ribbon Sports in 1964 and changed its name officially to NIKE, Inc. in 1971. NIKE is known for its strong brands like NIKE, Jordan, Converse, and Hurley and has partnered with many high profile athletes such as Michael Jordan, Kobe Bryant, and LeBron James to test and market its strong portfolio of brands. NIKE also incorporates a team of coaches, athletes, trainers, equipment managers, orthopedists, podiatrists, and a slewful of other experts to ensure they’re focused primarily on R&D activities that propel their brand to the forefront. (MarketLine, 2016) This focus and their alignment with external forces is vital due the intense competition and a growing number of counterfeit products. Another approach of NIKE that has deemed lucrative in their market is their Multi-Channel Approach. NIKE sells its products through various channels such as retailing online and in-store. At the end of 2015 NIKE’s portfolio consisted of 592 retail stores, which includes 512 factory stores and 73 online stores internationally. In addition...
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...Industry defined: Outsourced manufacturers of athletic footwear for leading global market players. Brief background on athletic footwear industry: The industry is dominated by a few large firms accounting for around 80% of the market share in which Nike is the clear market leader. Majority of other smaller players account for less than 5 % market share individually. The firms fight for market share through non-price competition, on strategies such as strengthening brand image, developing product innovation and identity, and expansion of Customer loyalty. The success of each firm is greatly dependent on its marketing campaign with the requirement of substantial investment in marketing strategy. Real household disposable income is an important demand factor for footwear. The leading firms manufacture most of the products from overseas contracted suppliers owing to cheaper costs. Nike, itself, manufactures all of its footwear from outside United States. This is a mature industry. Risk Analysis: Following characteristics are present in the industry of contract athletic footwear manufacturers for leading global firms, in which PTSI operates in: 1. Rivalry among existing firms: High This is a mature industry with high entry level barriers. It is driven mostly by non-price competition, product differentiation capability, quality control and cost efficiency. There is relentless pressure to reduce fixed costs. This increases rivalry when firms pass on manufacturing savings...
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...NIKE CASE STUDY This post is a based on a case study of Nike. The article will be discussing legal and ethical analysis and how the impact the operational/ ethical issues of the organization, the paper shall also be discussing the contribution factors and how the company’s corporate culture may have helped to minimize the unethical behavior or actually contributed to/caused the unethical behavior. The paper is also going to provide ethical decision factors, which are going to address or going to be considered in resolving the legal/ethical issues identified within this case. And finally the paper is going to provide an action plan for each of the legal/ethical issues along with recommendations that company can take to help prevent these issues in the future. Nike is one of the famous franchises in the world that sells sportswear for all ages. But is mostly famous for their athlete shoes and apparel and Nike is also one of the major manufacturers of sport equipment as well. The slogan for Nike is “Just Do It”. Nike was founded in January 1962 in Oregon, United States by Philip Knight and Bill Bowerman. Nike has somewhere around 700 or more retail outlets spread all over the world, and has approximately 45 offices only outside the United States. And it employs 30,000 people all over the world. Nike had a revenue excess of $16 billion in 2007. Nike’s factories are mostly located in Asian countries like Pakistan, India, Malaysia, China, Indonesia, Philippines, Taiwan, Vietnam...
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...Sustainability Assessment of Nike Shoes Andrew Derrig Jake Stocker Luke Warren Pearson King Ethan Tinson Ellen Winston For Sustainability Science ENVS 195, Fall 2010, Dr. Saleem H. Ali Introduction and Justification In Greek, Nike means “victory” and since the beginning of the company in 1972, victory has been a term that has represented many things about the Nike brand. The Nike corporation produces athletic shoes, apparel, equipment and accessories that can be found in distributors in over 170 countries worldwide, it sponsors many professional and college level sports teams and has grown to be one of the largest athletic apparel corporations in the world. In the early „70s they started out manufacturing running shoes featuring innovative new technology that increased traction and made the shoe lighter as a whole. (Nike, 2010) Since then the Nike brand has taken off and become more than simply successful, it is infamous though for a few different reasons. The Nike name, generally linked to success and wealth, first got into trouble in the early „90‟s when footage of sweatshop and child labor in their factories was broadcast on international television, smearing their name across the globe. (Beder, 2002) In 1998 cofounder and CEO Phil Knight even recognized that the Nike name and product “has become synonymous with slave wages, forced overtime, and arbitrary abuse.”(Levenson, 2008) Since those dark days however, Nike has made a concerted effort to both improve their reputation...
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...Introduction This paper is a based on a case study of Nike. The paper will be discussing legal and ethical analysis and how the impact the operational/ ethical issues of the organization, the paper shall also be discussing the contribution factors and how the company’s corporate culture may have helped to minimize the unethical behavior or actually contributed to/caused the unethical behavior. The paper is also going to provide ethical decision factors, which are going to address or going to be considered in resolving the legal/ethical issues identified within this case. And finally the paper is going to provide an action plan for each of the legal/ethical issues along with recommendations that company can take to help prevent these issues in the future. Nike is one of the famous franchises in the world that sells sportswear for all ages. But is mostly famous for their athlete shoes and apparel and Nike is also one of the major manufacturers of sport equipment as well. The slogan for Nike is “Just Do It”. Nike was founded in January 1962 in Oregon, United States by Philip Knight and Bill Bowerman. Nike has somewhere around 700 or more retail outlets spread all over the world, and has approximately 45 offices only outside the United States. And it employs 30,000 people all over the world. Nike had a revenue excess of $16 billion in 2007. Nike’s factories are mostly located in Asian countries like Pakistan, India, Malaysia, China, Indonesia, Philippines, Taiwan, Vietnam...
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...and social factors impact business activities of selected organisations and their stakeholders Nike Political factors: Politics can Nike.in both negatively and positively through changes made to tax, labor and national security laws. For example, politicians can raise taxes directly on businesses or on individuals, which ends up costing the company in the long run as people spend less money on goods and services. Alternatively, Nike profit when citizens receive tax incentives. Nike would respond accordingly to the games of politics. From increasing interest rates to adjusting their demographic models. Legal Factors: Businesses can be affected by many aspects of government policy. In particular, all businesses must comply with the law. They must also consider the impact of any forthcoming legislation on their operations. This may require taking action before the legislation comes into effect. One issue that affects manufacturers and retailers of electronic goods is the disposal of these products at the end of their life. Recycling is high on the public agenda. There are government initiatives to promote more recycling. These initiatives are sometimes backed by legislation. For example, the Waste Electrical and Electronic Equipment (WEEE) regulations are designed to reduce the amount of electronic waste going to landfill sites. Businesses must obey these environmental laws. However, a company that goes further by taking other measures to minimize its environmental impact will...
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...Problem #3 Nike is not eco-friendly Symptoms: Nike has a huge demand in the leather industry. The leather industry, is closely linked with the meat industry, that is, the leather is a byproduct of the meat processing operation, the demand for shoes, belts and clothes which are made by leather directly contributes to preserve farms and slaughterhouses, since it is the most valuable byproduct of the meat industry. 70% of China’s rivers, lakes and reservoirs in China are now classified as polluted. ( Zi-jian W) Many companies, such as Nike, are link with China's textile factories that use dangerous substances discharged to water. Many chemicals released from the textile mills put threat to human health and the environment. Now china is suffering because most of their water is polluted, and is very difficult to reverse the damage. Nike spends a lot of money and CO2 in the process to manufacture their products. The waste of CO2 is one of the mayor cause of the global warming, we can see everyday in the news that glaciers have shrunk, ice on rivers and lakes is breaking up, also plant and animals have been change. According to the NASA there are some effects that are cause by the global warming such as hotter days and nights, Heat waves more frequent over most land areas, Increase in intense tropical cyclone activity in North Atlantic, Global area affected by drought has increased. (http://climate.nasa.gov/) Causes: -The huge demand of leather, beef and other cattle...
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...P6 How does political, legal and social factors impact business activities of selected organisations and their stakeholders Political factors: Politics can Nike.in both negatively and positively through changes made to tax, labor and national security laws. For example, politicians can raise taxes directly on businesses or on individuals, which ends up costing the company in the long run as people spend less money on goods and services. Alternatively, Nike profit when citizens receive tax incentives. Legal Factors: Businesses can be affected by many aspects of government policy. In particular, all businesses must comply with the law. They must also consider the impact of any forthcoming legislation on their operations. This may require taking action before the legislation comes into effect. One issue that affects manufacturers and retailers of electronic goods is the disposal of these products at the end of their life. Recycling is high on the public agenda. There are government initiatives to promote more recycling. These initiatives are sometimes backed by legislation. For example, the Waste Electrical and Electronic Equipment (WEEE) regulations are designed to reduce the amount of electronic waste going to landfill sites. Businesses must obey these environmental laws. However, a company that goes further by taking other measures to minimize its environmental impact will be seen more favorably by consumers. Another is how they’re manufactured; trade unions and government...
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...1. Nike: From Sweatshops to Leadership in Employment Practices 2. Starbuck’ mission: Social responsibility and brand strength 3. New Belgium Breweries: Ethical and Environmental Responsibilities You will be required to answer to the end of case questions. I expect personal opinion, don’t try to copy from a template somewhere Test 2: StarBuck Case 2 Starbucks’ Mission: Social Responsibility and Brand Strength Case Notes for Instructors: Students will likely have strong opinions regarding Starbucks. Many may be committed patrons who view Starbucks as a socially responsible company committed to green practices and free-trade coffee. Others might dislike Starbucks because it is a large chain that pushes out smaller local competitors. Another possible reason students may be opposed to Starbucks are its prices, which are higher than many of its competitors. Starbucks seems to be able to justify its higher prices because the company sells more than just coffee—it sells an experience. Starbucks patrons can order specialty drinks and hang out in what founder Howard Schultz envisioned to be the “third place” to be after home and work. Love it or hate it, Starbucks has been very successful at branding. Starbucks has had a profound influence on the U.S. coffee market. Before Starbucks came onto the scene, people perceived coffee as an uninteresting product largely consumed by older people in the United States. It did not have the “cool” factor or the cache that it does...
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...This article is an overview of the reactions of most Nigerians to environmental hazards at construction sites, the effects of hazards and the safety controls put in place by the Nigerian government and other environmental agencies with the ultimate of reducing the risks associated with those hazards as low as reasonably practicable. Direct on-site observations were used to study the adherence of the construction sites workers to safety tips at Jehovah Witness chapel construction sites, Chelsea avenue, Abakpa Nike, Enugu, Immaculate Conception Parish Construction Site, Abakpa, 18 Felix Okoro Close (a 3-storeyed building construction site) Iji Nike, Enugu, and Ugbene II Road construction by J. Quarrison Nigeria Ltd. The results presented shows...
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...the domestic marketer as it operates entirely in different business environments. A firm operating in a domestic market undoubtedly feels comfortable in adjusting the business decisions in line with the environmental changes at domestic level. However, the process in an international marketing effort often involves substantial doses of cultural, political and economic shock. To adjust and adapt a marketing program to international market, marketers should be able to interpret the effect and the influence of the uncontrollable environmental factors on their marketing plan for each and every foreign market in which they intend to do businesses. The uncontrollable factors/ elements constitute the culture and the task of cultural adjustment is the most challenging and vital one confronting international marketers. International marketers are responsible for adjusting their marketing efforts to cultures to which they are not attuned. In dealing with unknown markets, marketers must be aware of the framework they use in evaluating the potential of a market. In any system of different people, their political and economic structures, religions and other elements of culture, marketers must guard against measuring and assessing the assumptions of their own culture. The successful factor in tapping into global market is that the adaptation to the environment differences from one market to another. Adaptation is the conscious effort on the part of the international marketer to anticipate...
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