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Leadership style of nike
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1. Introduction
Nowadays, there are so many famous sportswear companies that exist in the market globally, which make people have more product varieties that they can choose. In addition, most of those companies have become very important for its host countries, in terms of supporting their economic development. Yet, the existence of those companies can also possibly bring some problems to the host countries, as well as negatively affect the countries’ people (Pettinger, 2008). In order to explain it better, the existence of Adidas in Indonesia is used in this report to give more information about what makes Adidas becomes a successful company in the world, as well as providing problems that Adidas has in Indonesia.
2. Adidas Profile
Founded
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There are some strategies that Adidas implement for its human resource management, such as giving bonuses and employee-oriented leadership (UKEssays, 2015). By having a good communication between the manager and the employees, the employees can feel satisfied to work in …show more content…
To manage the multiple currencies, Adidas also sets its products’ price by having a future commodity contract that used USD for its sales.
2.4 Market Research and Product Promotion
The usage of athletes in TV commercials is the strategy that Adidas used to promote its products, in order to create the brand awareness from the people worldwide (Manus, n.d.). The reason why Adidas likely uses athletes in almost all of its advertisement is because Adidas wants to make people think that when they use Adidas products, they can be as professional as the athletes.
2.5 Corporate Governance
In order to manage Adidas and its value for the shareholders, Adidas uses a dual board system for its corporate governance, which consists of the management board and supervisory board (Adidas, 2016). By cooperating together, both management board and supervisory board of Adidas can set Adidas business strategy together by providing information from both of them about Adidas’ strengths, weaknesses, opportunities, and threats.
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2.6 Corporate Social
Athletes are a big part of the business community. The media exposure athletes receives cause them to be perceived more as celebrities. It causes them to have a greater impact in the marketing and selling of products. For instance, the tremendous amount of media coverage that Michael Jordan received gave him a prominent role in the business world. Athletic companies and various kinds of businesses wanted him to endorse their products. Now, because of his Nike endorsement, the athletic apparel and shoe industries are a big part of the American economy. Through endorsements companies now look upon athletes to strengthen their products. In most cases, this method is usually successful. This gives an overall boost to the economy, hence fortifying athletes’ significance.
Nike’s goal is to remain unique and different from others in terms of the items offered on the market. Arguably, Nike belongs to a monopolistically competitive market as there only a few organizations with the ability to regulate the amount charged for their product which means they cannot make their prices high as this is likely to make customers move on to other available choices (Nike, Inc., 2012). However, Nike can find a balance between the prices to charge for their products and remaining competitive with other companies in the industry. Nike has formed a distinction between the appearance and performance of their footwear and that of their competitors. Although products are differentiated from other companies, they still influence each other because they are items of the same
This paper will give a brief introduction about the history of Nike Sweatshops which will shed the light on their public image and their manufacturing process. It will further move to the suggested alternatives, what facts impact them, their stakeholder and their impact on the economic as well as social basis. In the end, it will discuss if the given choices are legal and ethical or not.
Athletes are offered endorsements to act as a representative for a company to help promote sales. They often are seen in commercials promoting athletic apparel, shoes, sports drinks, food, and other products. Marketing companies know that by associating a product with an athlete it can drastically increase sales.
Many global companies like Nike, Inc. are seen as role models both in the market place as well as in society in large. That is why they are expected to act responsibly in their dealings with humanity and the natural world. Nike benefits from the global sourcing opportunities, therefore areas such as production and logistics have been outsourced to partner companies in low-wage countries like China, Vietnam, Indonesia and Thailand. As a result the company is limited nowadays to its core competencies of Design and Marketing.
Phil Knight started his shoe company by selling shoes from the back of his car. As he became more successful in 1972 he branded the name Nike. In the 1980’s Nike Corporation quickly grew and established itself as a world leader in manufacturing and distributing athletic footwear and sports' attire. The Nike manufacturing model has followed is to outsource its manufacturing to developing nations in the Asia Pacific, Africa, South and Latin Americas; where labor is inexpensive. It quickly became known for its iconic “swoosh” and “Just do it” advertisements and products. Its highly successful advertising campaigns and brand developed its strong market share and consumer base. But, the road has not always been easy for Nike; in the late 1990’s they went through some challenging times when their brand become synonymous with slave wages and child labor abuses. During this period, Nike learned that it paramount that the company understands its stakeholders’ opinions and ensures their values are congruent with their stakeholders. Nike learned that their stakeholders were concerned with more than buying low cost products; their customers were also concerned with ethical and fair treatment of their workers. Because Nike was unwilling to face the ethical treatment of its employees, the company lost its loyal customers and damaged its reputation. Nike has bounced back since the late 1990’s and revived its reputation by focusing on its internal shortfalls and attacking its issues head on. Nike nearly collapsed from its missteps in the late 1990’s. They have learned from their mistakes and taken steps to quickly identify ethical issues before they become a crisis through ethics audits. This paper is based on the case study of Nike: From Sweatsh...
Nike’s Asian operations had previously continued to soar generating US$300 million in 1994 in revenues to a whopping US$1.2 billion in 1997. However based on the Asian economic crisis, this had adversely affected revenues, while regional layoffs were inevitable. Nike also performed well in the European market generating about US$2 billion in sales and a good growth momentum was expected, however, some parts of Europe were only slowly recovering from an economic downturn. In the Americas (Canada and the U.S.A.), Nike experienced a growth rate for several quarters. The U.S. alone generated approximately US$5 billion in sales. The Latin American market at this point was exposed to economic volatility; however Nike still saw them as a market with “great potential for the future”.
With their 1998 acquisition of Salomon, the company became adidas-Salomon, and the number 2 sporting goods company in the world. Although there were good strategic fits between adidas' and Salomon's core competencies, its obvious that the divisions failed to uncover these synergies. The future performance of Salomon have lagged behind expectations and It failed to provide much anticipated growth. Even more so, it dragged down the growth rates for adidas-Salomon overall.
Advertising is one of the world’s oldest industries and most effective industries. Advertising shows consumers what they want by using clever deception and nifty tricks. These ploys leave everyday people running to the store to pick up the latest and trendiest products. Advertisements work in part because marketers spend millions (possibly beyond millions) of dollars researching the population to find a clientele. This research helps find a target audience, aka demographic. This allows marketers to create an advertisement that caters to its demographic and sells their product. A company who embodies effective advertisements is Nike. Many people have the Nike logo and slogan engrained in their head. Nike is a company that
When comparing prices, consumers can find the exact same style Nike boot in Adidas and pay a lower price. Essentially what the consumer is paying extra for is the Nike brand. Looking back at my journal you can see I wore the Adidas boots one time, then went out and bought Nike boots. “Brand loyalty is based on an emotional connection toward the brand and a conscious commitment to find this brand each time the consumer purchases from this category.” 112 Brand Promotion I could have worn the Adidas boots for free but I spent the time and money to go purchase the Nike brand. “brand loyalty and advertising work together to create another important economic effect related to pricing flexibility and profits. When consumers are brand loyal, they are generally less sensitive to price increases for the brand.” 45 Advertising and Integrated Brand Promotion Being able to raise prices but still keep the consumer market is very valuable. This is one of the main reasons brands strive to have brand loyal
Nike is made up as a matrix organizational structure, which consist of several specialists and some individuals report to at a minimum of two managers. In the company, the staff informs to a crew of managers who dispatches the development report to the manager of the department. Each product within the company includes of it is own section and has its own department who performs independently of the CEO. The managers and employees of Nike decide concerning design and manufacture while the department managers concentrate mainly on ethical issues. In addition, the managers are completely accountable for the employees. While operating a matrix structure, Nike makes choices and responds quicker than any other department. Unlike Nike, Microsoft uses a divisional structure because it offers various separations within the company that functions almost as their own separate entities. However, this does not mean that they do not collaborate on projects or cross reference with each other. The divisi...
Nike, Inc. aims to deliver value to their shareholders by establishing profitable products. They focus on Nike Brand and Brand Jordan that consist of seven major categories: running, basketball, football (soccer), men’s training, women’s training, NIKE Sportswear, and Action Sports. Despite the seven major categories, they also produce products for kids, athletic, and recreational uses. Among all of that, NIKE Sportswear, Running, Basketball, Football (Soccer), and kid’s shoes are the top-selling products. Nike wants to target active people of all ages by giving the best quality of products and services. Their strategy it to create personal deep connections between the consumers and their brand, and to deliver compelling consumer ...
Human Resource Management is an essential part for any organization. Moreover, development of this department is the first step, the ground on which the future of the company depends. It is essential for every single business unit and especially for such international company as Coca Cola. It is people, not technology who create the company. Human Resource Management at Coca Cola Company has many advantages as well as disadvantage. It is the global company and it is impossible to create certain policies or procedures applicable in all divisions of the company, cultural and political differences need to be taken into account. Therefore, the focus of this paper will be on four tasks and duties of Human Resource Management (performance management, compensation, career development, succession planning) based on the United States procedures.
Corporate governance is the set of guidelines that determines the control and organization of a particular company. The company’s board of directors is in charge of approving and reviewing changes to this set of formally established guidelines. Companies have to keep in mind the interests of multiple stakeholders, parties who have an interest in the company. Some of these stakeholders include customers, shareholders, management, and suppliers. Corporate governance’s focus is concentrated on the rights and obligations of three stakeholder groups in particular: the board of directors, management, and shareholders. Corporate governance determines how power is split between these three stakeholders. A company’s board of directors is the main stakeholder that influences the corporate governance of a company (Corporate Governance).
In reviewing the case of New Balance Athletic Shoe, Inc. it is clear that there are a few major problems that the company is facing. First of all, New Balance falls behind its other major competitors, Nike, Adidas and Reebok, in the area of marketing. Unlike its competitors, New Balance does not undertake celebrity endorsements. This puts them at a disadvantage when it comes to brand building. This also causes the company to lose out somewhat on gaining awareness on a global scale as it lacks endorsements in major sporting events. Most global brand names generate strong brand recognition through celebrity endorsements in sporting events that would give them the needed momentum to carry their brand name further into the global market.