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Socially responsible and ethical issues of Nike
Importance of ethics at Nike
Socially responsible and ethical issues of Nike
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Decision Style (Bloisi, Cook, & Hunsaker, 2007) Nike Incorporate has a participative style of management (UK Essays). The top management leadership style can be characterized by the team management approach. The group is team oriented, but is capable and does work independently recognizing the common stake that each places in Nike. The company culture lends a hand to the fact that top management's teamwork style has spread throughout the organization (Enderle, Hirsch, Micka, Saving, Shah, & Szerwinski, 2000). Nike's board of directors consists of both management directors and dependent directors. The combination of these two types of directors benefits Nike in that there is a presence of those directly involved with Nike as well as others indirectly involved who bring outside experience, provide another frame of reference and can assist in overall board in thinking 'outside the box' (Enderle, Hirsch, Micka, Saving, Shah, & Szerwinski, 2000). Nike Incorporate uses the decision style 'systemic', because of the diversity in the board of directors and the focus on teamwork between managers. This leads to people who are open for different ideas to solve a certain problem. So a problem will be viewed from many points of view and it will be explored with multiple solutions. After examining many options, however, the board/management becomes more hierarchic, subjecting various alternatives to a rigorous analysis that ends with a clearly prioritized set of solutions (Bloisi, Cook, & Hunsaker, 2007). So at the end the board/management of Nike has a couple of solutions to solve a certain problem. They will use the different solutions to explore what the best solution will be for a certain problem. The organizational decision making process ... ... middle of paper ... ...(2008, February 12). Strategic Processes @ Nike—Making and Doing Knowledge Management. Knowledge and Process Management , 15, pp. 24-31. Nike Inc. (2007). Corporate Responsibility Report FY07-09. Retrieved 2014 йил 18-May from Nike Inc.: http://www.nikebiz.com/crreport/content/pdf/documents/en-US/full-report.pdf Nike Inc. (2014). Reviews. Retrieved 2014 йил 18-May from Nike responsibility: http://www.nikeresponsibility.com/report/content/chapter/reviews Nike Shoes and Child Labor in Pakistan (June 1999). Singer, J. (2007). Nike Inc. Securities and Exchange Commission. UK Essays. (n.d.). From UK Essays: http://www.ukessays.com/essays/management/nike-inc.php www.fibre2fashion.com. (2006). Ethical issues in fashion - the what, when, why, how and who. Retrieved from www.fibre2fashion.com: http://www.fibre2fashion.com/industry-article/3/280/ethical-issues-in-fashion3.asp
"Nike." Columbia Electronic Encyclopedia, 6th Edition 1. Academic Search Premier, EBSCOhost (accessed November 6, 2009).
Bateman, T.S. & Snell, S.A. (2009). Management: Leading and Collaborating in The Competitive World, New York, New York: McGraw Hill Companies. (p. 101)
Since its creation, Nike has proven itself as a popular brand and it has created niches by selling products such as footwear, apparels and various types of sports equipment. This paper will attempt to trace the product development of Nike shoes from its origins in conception and design to the manufacturing and production process located in contract factories in developing countries to advertising and marketing of Nike as a cultural commodity and finally, the retailing of the footwear around the world.
Executive Summary Introduction Kimi Ford, a portfolio manager at NorthPoint Group, a mutual-fund management firm, was considering buying shares in the fund she manages, the NorthPoint Large-Cap Fund, with an emphasis on value investing. Ford held an analysts’ meeting to disclose its fiscal-year 2001 results and, most importantly, to communicate a strategy for revitalizing the company. Nike has maintained revenue of about $9 billion since 1997. However, its net income had fallen from almost $800 million to $580 million. Moreover, Nike’s market share in U.S. athletic shoes has fallen from 48% in 1997 to 42% in 2000.
The corporation should invest more money in research and innovation since this is what has helped them to make a product that rivals their competitors. At the same time, it is imperative for them to improve their machinery for cheap labor costs which will help the company increase its production allowing it to meet the demand in the market. By improving production leading to lower costs of making shoes, apparel, and equipment, Nike will achieve higher demand assuming a quality product is maintained in that process. They will stand a better chance of competing in the industry (Hill, 2009). The organization is already in a better position for meeting the demand, customer taste, and needs. The company should improve quality by focusing on developing lightweight products that are more durable compared to those offered by the competitors. Also, Nike can keep up their success by continuing to reinvent and improve their items and continue to meet the current demand by using new technology. It can also use the Internet to communicate with consumers (Hill, 2009). By developing new technology, Nike will allow the customers to suggest and design their shoes online. To achieve this goal, it is fundamental to enhance areas such as their website to make it more user-friendly. Finally, the company should pay attention to small startup organizations that enter the
Only a week earlier, on June 28, 2001, Nike had held an analysts' meeting to disclose its fiscal-year 2001 results.1 The meeting, however, had another purpose: Nike management wanted to communicate a strategy for revitalizing the company. Since 1997, its revenues had plateaued at around $9 billion, while net income had fallen from almost $800 million to $580 million (see Exhibit 1). Nike's market share in U.S. athletic shoes had fallen from 48%, in 1997, to 42% in 2000.2 In addition, recent supply-chain issues and the adverse effect of a strong dollar had negatively affected revenue.
“At NIKE, we are on the offense, always. We play hard, we play to win, but we play by the rules of the game. This Code of Ethics is vitally important. It contains the rules of the game for NIKE, the rules we live by and what we stand for. Please read it. And if you've read it before, read it again. Then take some t...
Nike is one of the biggest footwear and apparel manufacturing companies in the word. The company came into existence in 1964 by Bill Boweman and Phil Knight and named it as the Blue Ribbon Sports. The company changed the name to Nike, which is Greek word meaning victory, in 1972 after producing a good brand of shoes that became popular among the athletes (NIKE, Inc., 2001). Since then, the company has been successful, dominating the world market of athletic shoes. The company’s products are sold in more than 170 countries across the world. The company also sponsors various sports events at national and international levels. The company slogan “just do it” is catchy and attract many people tom buying its products. This makes the company to grow continuously due to wide and stable customer base.
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.
The following content provided will include information regarding Nikes Inc. cash management strategies, which will include more in depth information from the previous group paper. In addition, working capital recommendations will be provided to senior management base on next year’s in the pro-forma financial statements.
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 Inc. was founded in 1962 by Bill Bowerman and Phil Knight as a partnership under the name, Blue Ribbon Sports. Our modest goal then was to distribute low-cost, high-quality Japanese athletic shoes to American consumers in an attempt to break Germany's domination of the domestic industry. In 2000 Nike Inc. not only manufactured and distributed athletic shoes at every marketable price point to a global market, but over 40% of our sales came from athletic apparel, sports equipment, and subsidiary ventures. Nike maintains traditional and non-traditional distribution channels in more than 100 countries targeting its primary market regions: United States, Europe, Asia Pacific, and the Americas (not including the United States).
Nevertheless, Nike is an extremely diverse company with outstanding organizational structure, impressive marketing strategy, and innovative products. The organizational structure of the Nike Corporation helped them become a leading innovator for the world with creative apparels and shoes. Their intelligent marketing strategies assist them in advertising their products to motive their customers and sell them. Their innovative product motivates customers with great performance footwear and quality designs to take on any obstacles. The Nike Corporation discovers various ways to improve their organizational structure to inspire the world.
international markets. The company wants to generate more than half of its revenue from overseas. In my opinion, Nike’s strategies and tactics are to seek on the opportunity to do the marketing on its radical, rebellious and anti-establishment images to the international markets and to benefit from its use of overseas factories to outsource manufacturing processes. For example,
This project concentrates on the Nike Sports shoe; Nike is one of most significant shoe manufacturing company worldwide. Sportswear manufactured by Nike is known for quality and is most liked brand of athletes. (Daniel, 2011)