...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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...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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...Nike Inc. Strategic Analysis ----Eric Overview Nike, Inc. is an American multinational corporation that is engaged in the design, development, manufacturing and worldwide marketing and selling of footwear, apparel, equipment, accessories and services. The company is headquartered near Beaverton, Oregon, in the Portland metropolitan area, and is one of only two Fortune 500 companies headquartered in Oregon. It is one of the world's largest suppliers of athletic shoes and apparel and a major manufacturer of sports equipment, with revenue in excess of US$24.1 billion in its fiscal year 2012 (ending May 31, 2012). As of 2012, it employed more than 44,000 people worldwide. The brand alone is valued at $10.7 billion, making it the most valuable brand among sports businesses. The company was founded on January 25, 1964 as Blue Ribbon Sports by Bill Bowerman and Phil Knight, and officially became Nike, Inc. on May 30, 1971. The company takes its name from Nike (Greek Νίκη), the Greek goddess of victory. Nike markets its products under its own brand, as well as Nike Golf, Nike Pro, Nike+, Air Jordan, Nike Skateboarding, and subsidiaries including Hurley International and Converse. Nike also owned Bauer Hockey (later renamed Nike Bauer) between 1995 and 2008, and previously owned Cole Haan and Umbro. In addition to manufacturing sportswear and equipment, the company operates retail stores under the Niketown name. Nike sponsors many high-profile...
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...The case study in Managing Human Resources textbook states, Robert Kilbey has been in business since been doing business since the 1960’s, and becoming Walton County’s largest and most stable employers. Now forty-two years later his son is expanding the business and taking it international. Robert’s is very clear that he does not just hire anyone and that instead of laying off any employees or doing a mass and quick hiring they will work short weeks and cross-train all employees. This for him has worked for the forty years and with the company going international and out-sourcing, they will not have any jobs disappear. Review/ Analysis of the Case Professional Products’ sells product that they are very particular about and make sure that they give their customers nothing less than the best. With this, they also hold this same high standard when hiring their employees. They want long-term reliable employees and will not hire anything less. After being in business for forty-two years, they are going to go global and use possible out-sourcing for some jobs. This can cause current employees to fear for their jobs, however, Robert Kilbey will not let any of his current employees go and will cross-train them on other jobs so that they will still have employment. References Bohlander, G., Snell, S. (2007). Managing Human Resources, Fourteenth Edition. Mason, OH: Thomson South-Western Running head: Nike: Hiring Gets Off on the Right Foot Nike: Hiring...
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...Assignment 5: Nike” From Sweatshops to Leadership in Employment Practices” Nia Lawson Diggs Dr. Jack Huddleston Human Resource Management 522 Ethics and Advocacy for HR Pro March 13, 2012 Discern how a more effective ethics programs and a more viable code of conduct could have mitigated the ethical issues faced by Nike Nike leads the world in the manufacturing and distributing of its athletic footwear and accessories. Nike is the brain child of Phil Knight and his former track coach, Bill Bowerman. The duo formed a company that would eventually become the leader in the athletic industry with the sales and manufacturing of athletic wear. The Nike brand is widely recognized by its catch phrase and its logo. Their marketing campaigns specially “just do it” helped it revive its brand image. The swoosh sign is recognizable across most of the world. This alone attributes for Nike's worldwide success. Overall, Nike keeps improving its product which helps to keep the population engaged with its brand. If Nike had a more effective ethics program and viable code of conduct, ethical issues could have been avoided by Nike. In the early 1990s, sports shoe giant Nike became the target of arguably the most intensive and widely publicized of these anticorporate campaigns up to that time (Conaway, 2011). According to Ferrell, ethics programs that provide guidelines outlining board responsibilities encourage compliance encourage compliance at the highest...
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...code of conduct could have mitigated the ethical issues faced by Nike. For several years Nike has been the world's leading manufacturer and distributor in athletic footwear and sports' accessories. It primarily operates in Asia Pacific, Middle East, Africa, America and Europe. By having a strong brand allows expansion in the market and extended loyal consumer satisfaction. The brand came across hard times in the forms of social allegations that included several cases of human rights abuse and labor violations (Ferrell, Ferrell, and Fraedrich, 2011). These days Nike continues to improve its products. The swoosh sign that Nike uses on its products is recognizable anywhere throughout the world. Nike has faced numerous ethical issues in the past and present day. Nike has been accused of labor and human rights violations. It is said Nike wants to cut cost and find cheap labor to manufacture its products. Nike’s manufacturing plant in Pakistan was documented in a Life Magazine as hiring children to sew soccer balls. Globally, due to legal, ethical and social challenges, Nike face a great number of challenges. Nike has been blamed for producing its good in the third world sweatshops. Due to the availability of the cheap labor in the third world countries, Nike chooses to locate the majority of their production in such countries. Some of the human rights ethical and legal issues faced by the Nike in such countries include the use of child labor in factories, physical...
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...COVENTRY UNIVERSITY AUSTON INSTITUTE Of Management Master of Business Administration IN ENGINEERING MANAGEMENT Quality And Environmental Management Systems (AUM 06 EMD) (Case Study) STUDENT NAME : Rituraj Saikia STUDENT ID : G1102894U LECTURER : Low Chin Yong WORDS : 3489 Table of Contents 1 Scope Of Environmental Management Strategy 3 1.1 The needs and expectations for development of an environment management strategy 3 1.2 The constraints under which the environmental strategy can be developed are identified 4 1.3 A clear and concise statement of environmental objectives 5 2 Determine Environmental Strategy Development Process 6 2.1 Principal stakeholders are identified 6 2.2 Stakeholders are consulted to obtain acceptance of the strategy development process 7 3 Identify Resources To Undertake Environmental Strategy Development 8 3.1 Resource requirements of the model/process adopted are identified in an accurate and comprehensive manner 8 3.2 Accurate detailed financial budgets are prepared within the scope of the strategy development 9 3.3 Human resource requirements for strategy developments: 9 3.4 Facilities and equipment needs for strategy developments are identified to ensure all requirements can be met on time 10 4 Identify Environmental Assets, Problems And Opportunities 10 4.1 Data are identified and collated in a comprehensive manner relevant to the scope and models accepted 10 4.2...
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...singer). In 1992 economical problems lead Tapi to sell Adidas to Lyonnais bank. Lyonnais sold Adidas to Robert Louis-Dreyfus who was also the president of the Olympique de Marseille football team. In 1997, Adidas AG acquired the Salomon Group, and its corporate name was changed to Adidas-Salomon AG. Seven years later, top English fashion designer Stella McCartney launched a joint-venture line with Adidas. This line was a sports performance collection for women called "Adidas by Stella McCartney". After 2 years, Adidas introduced the Adidas 1, the first ever production shoe to utilize a microprocessor. In August 2005, Adidas bought rival Reebok. At the same time sales had been closer to those of Nike in North America. The acquisition of Reebok would also allow Adidas to compete with Nike worldwide as the number two athletic shoemaker in the world. Three months later Adidas released a new version of the Adidas 1, make it better, stronger and faster. On April 11 2006, Adidas announced an 11-year deal to become the official NBA apparel provider. 2. Products Adidas manufactures anything related to sport, like shoes, clothes, watches, balls, Sunglasses, Protective Equipment,...
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...sports outfit of Nike. Some may said Nike quality is better than Reebok and others may disagree. So till today quality does not have any single universal definition (Reid & Sanders, 2005). Some may view quality as performance to standards while others view it as meeting the customer’s needs or satisfying the customer (Reid & Sanders, 2005). In common, there are a series of characteristic to define quality which are (1) conformance to specifications, (2) fitness for use, (3) value for price paid, (4) support services and (5) psychological criteria. (1) Conformance to specifications measures how well the product or service meets the targets and tolerances determined by its designers (Reid & Sanders, 2005). For example if a Nike said that their sport shoes are made in light blue color but turnout navy blue then it would not consider in good quality. (2) Fitness for use focuses on how well the product performs its intended function or use (Reid & Sanders, 2005). For example if Nike watches claim to be waterproofs for 5m but turnout the real watches malfunction in 1m then it would not consider in good quality. (3) Value for price paid is a definition of quality that consumers often use for product or service usefulness which combines economics factors with consumer criteria (Reid & Sanders, 2005). For example Nike and Reebok sold the same sport shoes in term of same functions and features but different in price. Nike is slightly cheaper than Reebok so in this case Nike would have higher...
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...TOPIC: CASE QUESTIONS, Nike`s CSR Challenge Question 1, 4 and 5 Nike's CSR Challenge CASE STUDY- 1. What are the challenges regarding corporate social responsibility that companies in the apparel industry face in its supply chains around the world?. A. SOLUTION TO CASE 1: This discusses the challenges facing Nike in overcoming the stigma of poor human rights practices in their past, and how that has affected their overall business in the current decade. Social responsibility has always been an important factor to a company’s long term performance and sustainability. If you compare the stock performance of the top 50 most socially responsible companies, as published by Boston College’s Institute for Corporate Responsibility, to the S&P 500, the companies perceived as having the most ethical corporate governance consistently outperforms the competition in the long-run. This has become particularly important within the apparel industry, which has developed a stigma due its use of sweatshops over the last several decades. As many industries have become more and more automated, the apparel industry still requires an incredible amount of human capital to produce its products. Because of this, the industry has traditionally outsourced its production facilities to nations with low minimum wages and even lower working standards. There is little that can be done to avoid the nature of profit maximization and outsourcing, but companies like Nike have since realized...
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...CASE STUDY-1: CAN KNIGHTS APPAREL SATISFY ALL OF ITS STAKEHOLDERS AND SURVIVE? 1. Who are the primary stakeholders of Knights Apparel? Stakeholders mentioned in the case study include the following: • Joe Bozich, CEO of the privately held firm. • Spartanburg, SC: the city where the firm is based. • The 30 factories worldwide with which the firm has contracts. • Scott Nova, Executive Director of a consortium of 186 universities. • The United Students Against Sweatshops. • Alta Garcia, Dominican Republic: home of the firm’s model factory. • The 120 workers in the model factory. • The 1200 displaced workers in the Korean owned factory that produced products for the firm’s competitors. • The firm’s customers. • Retailers and universities that make a special effort to promote the firms products. 2. For each stakeholder group, what are their major concerns? The case study clearly identified the concern of some stakeholders for the treatment of apparel workers. Although the concerns of other stakeholders were not clearly identified, it is likely that they may have economic concerns of their own and not just that of the workers. • Stakeholders concerned about treatment of apparel workers include the following. - Joe Bosich, CEO: sought a higher purpose for the privately held firm. - Scott Nova and the universities that he represented. - The United Students Against Sweatshops. - Those customers who will to pay more so that the factory will succeed...
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...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...
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...HRM522 Ethical & Advocacy for HR Professionals Dr. Jeanette Horner-Smith December 14th, 2014 “Nike: From Sweatshops to Leadership in Employment Practices” The Nike Corporation is a huge brand that targets athletes, colleges, and product manufacturing. The company was founded by Phil Knight and his track coach, Bill Bowerman, in 1964. “The company was renamed Nike in 1978, and has grown to be the largest worldwide seller of athletic goods, with approximately 19,000 retail accounts in the United States and about 160 countries around the world” (Ferrell, Fraedrich, Ferrell, 2011). Nike built its “good quality” reputation from popular athletic sponsors. Although the brand was growing into a successful sports oriented company, high demand for the product led to thought on how to manufacture more apparel. The founders of the company devised a plan on how to increase manufacturing while not completely blowing their accounts on laboring. The company agreed to take their manufacturing overseas to third-world countries where the cost of laboring is cheaper. “In the late 1980s after going public, the late 1990s began a period composed of combating allegations about labor and human rights violations” (Ferrell, Fraedrich, Ferrell, 2011). Nike was accused of over working their foreign employees, and providing them poor, unsanitary work environments. It can be said that subcontracting was mainly the reason why the scandals occurred. Subcontracting is the process of reducing cost to allow...
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...Nike I2 ERP Implementation Failure Case Study February 9, 2014 Shafer Minnick Morgan Correll Jeff Harvey Nike stands as the World’s leading producer of Athletic Footwear, Apparel and Equipment. As of 2013 they held complete ownership or joint venture in the following companies: Nike Brand Cole Haan Converse Hurley International Umbro Athletic Wear Nike Golf Jordan Brand This is a rather long and somewhat surprising list to many, based on some of these brands are portrayed as competitors in the daily consumer market. Nike products are sold in over 170 countries worldwide through their network of 700 retails stores. They have 38,00 Nike employees worldwide, based in those retail store, or one of 65 administrative offices or 10 plus Sales Offices or showrooms worldwide. Nike products are manufactured through a contract manufacturing partnership consisting of 900 contract plants worldwide using over 1 million contract employees. These same plants are managed by their local ownership, but Nike spends significant time and money coaching these plants in the Nike sustainable manufacturing plan. The Nike Strategy The Nike Business strategy focuses on Innovation. First the “Innovation to Serve the Athlete”-meaning they desire to design and produce the best products for athlete safety and performance. They want to be the leaders in new and improved products to advance athletic performance. Secondly, “Innovation to Grow the Company”- Nike wants...
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...Why Do Companies Need a Human Resources Department? Introduction: In order to understand the vitality of the Human Resource department in an organization one must first understand what the Human Resource department is about. Human resource management (HRM), or human resource development, entails planning, implementing, and managing recruitment, as well as selection, training, career, and organizational development initiatives within an organization. The goal of HRM is to maximize the productivity of an organization by optimizing the effectiveness of its employees while simultaneously improving the work life of employees and treating employees as valuable resources. Consequently, HRM encompasses efforts to promote personal development, employee satisfaction, and compliance with employment-related laws (Walker, 1998). The main objective of Human Resources is to maximize the return on investment from the organization’s human capital. According to Schwind Das & Wagner, “Human resource management aims to improve the productive contribution of individuals while simultaneously attempting to attain other societal and individual employee objectives” (2007). HRM is also the new frontier in developing competitive advantages. “…[F]irms can develop sustained competitive advantage only by creating value in a way that is rare and difficult for competitors to imitate. Although traditional sources of competitive advantage such as natural resources, technology, economies of scale, and...
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