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Nike's operation management
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Nike Nike, like many successful companies we know, started with a simple purpose and goal. Bill Bowerman, a co-founder and coach, wanted to create more efficient running shoes and raise his student’s performance. The name of this student was Phil Knight, he was a runner, scholar of Stanford University, and co-founder of Nike. Phil Knight wrote a paper suggesting that manufacturing shoes in Japan would help many retailers compete with big-box brands. This suggestion was unheard of, and no one was buying into it, so he decided to pursue it himself. Knight imported shoes from Japan and started to sell them in his area. He attempted to sell his first stock of shoes to his past coach Bowerman, who was interested in joining him, so they decided …show more content…
In February 2005, Nike released results from Oregon, stating the amount of money and jobs created. Nike added a whopping $2 billion to the state economy, and added 16,500 indirect and direct jobs to top it all off. However in other countries such as Vietnam, there are many downfalls to creating many jobs. In third-world countries there are sweatshops and child labor, as Nike demands them to fill the orders requested. In Vietnam specifically, human trafficking and child labor is very common. As soon as the word had spread out about these sweatshops and the child labor in Vietnam and other third-world countries, Nike went to Vietnam and tried to improve working conditions in the factories and tried to deny any evidence of these negative working societies. Even in some first-world countries, Nike doesn't reward long hours, as they believe that it is their duty. Nike even affects the government economics, exporting out of the US or Canada helps the government generate revenue. Because Nike is such a large and well-known company it stimulates economic growth and provides competition for other companies, which is better for the …show more content…
Nike impacts communities, cities, states, countries, and the world. Cheyenne says, “We sit down with students and help them with their education. We provide children with after-school programs, so we can help them stay fit. We also do lots of charity work…we donate a lot to hospitals” (Nike, Cheyenne. Personal Interview. 11 Mar. 2016). With the after-school programs Nike provides, it encourages kids to get active, as this is a current problem with kids. Working for Nike also improves leadership in the business community. The environment is also very important to nike because recently Nike has been working on trying to decrease energy use and greenhouse gas emissions. Reducing manufacturing waste in supply chains is also another problem Nike is trying to tackle. Not only does Nike affect people locally, but they affect people on a global scale as well. As stated earlier, Nike dominates the sports market, which means companies around the world will try to compete. This increases the competition in this sector of the market. With Nike being such a large company, they demand a lot from their out-of-country factories. Because of this, developing countries are pressured to prioritize export and payment of foreign debt. This is the reason for many
Nike, as many other companies do, facilitates production in other countries to help grow sales in those particular regions. The main difference between Nike and some of the other companies is that other companies do not support the exploitation of labourers or human rights. Not to suggest that Nike promotes labour exploitation, but they are less strict about these rules than other companies in foreign markets. Impacts on health and safety are a major factor for employees in sweatshops. However, physical and sexual abuse is another serious concern of many of the sweatshop workers. Most of the sweatshops run by Nike contractors are factories located in relatively small spaces to save on real estate costs. They are often soiled with dirt and kept unheated to save on expenses. Broken glass and dangerous equipment is left on the floors causing potential dangers to any people scattered within the factory. Employees are subject to harassment and violent punishments if work is not being completed as thoroughly and efficiently as the contractors would like. Workers slave under unfavourable conditions for up to 14-hour days often with no breaks. These employees are paid less than $100 US and work on average over 250 hours per month. "Substandard wages keep factory workers in poverty and force them to work excessi...
Nike is a worldwide known business that many people around the globe are attracted to purchase. They make a variety of products ranging from shoes and clothes to sports gear, sports products, and many different accessories. Nike is designed for everyone ranging from infants to elderly. Because of their range of age for products, this makes them a huge competitor. Being able to appeal to all ages and styles of people.
In addition, Nike is a worldwide known company and it is among the top empires just as Adidas and Puma. It has more than 900 factories which are located in an estimated 50 countries, they also have more than 660 000 workers which most of them are women. However, although they have a lot of factories around the world, their main manufacture factories are located in China, Indonesia, and Vietnam which are basically countries with the most minimum salaries rate given to the workers. Nike chooses these locations for their production of their merchandise because of the cheap ...
...rible situations for people who do not have the laws like U.S. workers have. Even though NIKE has implemented different methods to improve the companies’ image, there have still been many reports that show there has not been much change at all. At a net worth of 67 billion dollars and expected to grow, loyal customers is what allows this multi billion dollar company to grow in profit, the only way there will be an impact on those working in NIKE sweatshops is if today’s society takes action.
Nike Incorporated is the number one leading sportswear and equipment provider in the world. They manufacture anything from casual clothes to sports equipment, shoes to socks, and basketballs to golf balls. As a result of its massive success, Nike employs nearly 30,000 people worldwide while manufacturing in 700 shops around the globe and has 45 offices outside the United States. Its extensive reach into the global market has Nike producing more exclusive products than any other manufacturer in the world. Nike’s headquarters is located in the metropolitan area of Portland, Oregon.
In June of 1996, Life magazine published a article about Nike’s child labor that was occurring in Pakistan. The article showed a little boy who was surrounded by pieces of Nike sports gear. The articles were shoes and soccer balls. Nike then knew then that they had to make some major changes in the way they were producing their items.
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.
manufacturing products overseas, specifically in Bangladesh. The focal point of the article was how Nike was attempting to achieve the lowest possible manufacturing costs while still maintaining worker safety and producing high-quality products. Both consequences and benefits of manufacturing in foreign companies was discussed in the article. In addition to how manufacturing costs affect the financial outlook of the company, the article addressed how having factories in less-developed countries has an impact on public opinion of Nike.
The essay, “The Noble Feat of Nike” by Johan Norberg basically talks about the effects of Nike going into third world countries, particularly Vietnam. Norberg explains how Nike’s factory gains from being in its desired location, Vietnam. Vietnam being a communist country comes to Nike’s advantage, because if they were located elsewhere they would have to pay workers higher wages and use more of their machines. Workers in these countries are provided with an air conditioned building with regular wages, free meal plans, free medical service, and training/education to operate the machinery within the factory. The workers find all of this beneficial and in their own favor because of the fact their earning double to five times the amount in wages than if they were working outdoors on a farm. This great deal, blinds them to notice the meaning behind the company’s location in Vietnam. The Nike factory was rather clever in making their location in that specific area to gain benefits for Western owners. The catch Nike gains from is simple. The owners pay factory workers only a small monthly sum from what they make selling the shoes to customers. Globalists state that the company doesn’t pull this fast one on the Western population because of our advancements compared to the Eastern countries. Western people would protest and strike to demand better wages for their work, but the people in Eastern countries have no choice but to deal with the injustice in order to support their families and educate their children.
Nike is the number one innovator in the world in athletic footwear, apparel, equipment, and accessories. This worldwide company operates in an extremely different organizational structure than other companies, such as Reebok and Adidas. Nike operates tremendous marketing strategies and develops inventive designs to inspire athletes around the world. This company is one of the largest suppliers in the world in athletic footwear and apparel, main producer of sports equipment, and making Nike the most valuable brand among sports companies. The task for Nike is to join diversity and inclusion to encourage ideas and innovation. Around the world, this company is a popular brand.
America is a birthplace of NIKE Company. Nike’s workplace consists of a leader, visionaries and experienced employees who are very passionate to maintain the status ...
For those marketing efforts, Nike does successful to promote itself with its not-quite-nice images and also generate some criticism that I think they are irresponsible as we can see from their ad that they does not create any positive effects to the society. For its use of overseas factories, it is great opportunity to expand the production base to the lower cost of labor, but it is totally irresponsible and unethical when labor practice does not meet the standard.
Verbal and physical abuse is another problem and in China women were kicked,slapped and verbally abused(daily mail). So If we don’t bring the problem to Nike and the rest of the Nike consumers the problem of unfair wages and abuse will still be prevalent in Nike factories all over the world. Outsourcing happens because companies can get away with more things such as wages. This is happens everywhere in the United States simply due to the fact they can rip their workers off. In California alone 560,000 jobs were taken from the
The Nike Company is a manufacturing as well as retailer type company. There are 800 worldwide factories for Nike brand and products. It is true that most of the Nike brand apparel is manufactured out of the United States. It’s all happen due to independent contract manufactures those are situated in different 34 countries. Nike is the one of the largest seller of athlete footwear and athlete apparel in the modern world.
Nike recruits brand ambassadors from different parts of the world who top in athletes and who are having a good following in the public, which helps them to reach the audience that influences them to purchase the Nike sportswear. (MichaelSam85, 2011)