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Tbl to the sustainable practice of nike company
Macro environmental impacting the Nike brand
Point of view of stakeholders
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Explore Nike’s Corporate Strategy: What Contributions and Conflicts Among Different Stakeholders
Nike is ranked as the most innovative company in 2013 (Carr, 2013) and one of the most sustainable firms by Innvest (Epstein et al., 2010). There is no doubt that Nike has a strong reputation and innovation image in the sport business industry. However, before 1990, Nike was marked as a symbol of slave salary, work over time and environmental shortcuts (The Guardian, 2013c; Balch, 2012). Moreover, climate change had become a global issue. In the 1990s, non-governmental organizations (NGOs) increased the pressures on governments which formulated regulation on corporate activities to address environmental issues (Kolk and Pinkse, 2009). Then Nike also aware this issue because these environmental changes impact on the revenue of clothing industry (Balch, 2012).
To be a go-ahead firm and leader in the footwear and apparel industry, Nike started their sustainability journey to meet these challenges (The Guardian, 2013b). In this journey, Nike’s earning per share
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According to Johnson et al (2013) and John (1997), strategy can be defined as a general scope or long-term direction of a firm. Johnson et al (2013) state that strategy has three levels which refer to corporate, business and operational levels. In Lynch’s view (2006), there are two elements in corporate strategy that are corporate-level and business-level. This essay will focus on both corporate and business-level strategy. To conclude Lynch (2006) and Johnson et al (2013)’s points, corporate-level strategy can be identified as a purpose or overall scope of an organization. Business-level strategy is related provide the best value for products or services to compete in the specific markets. For example, innovation or response to competitors are usually the tactics of business-level strategy (Johnson et al.,
The factories around the world (China, Asia, and Vietnam) assist in manufacturing and distribution of the products. (Mahdi et al., 2015). The globalization and technology have impacted competition and larger expansion of the corporation around the world. The Nike brand is nearly in every culture of the world from the result of globalization and technology impact. The technology has grown on the quality of the research and innovation the company is performing that is resulting in great volumes of customer cares and choices. The globalization and technology have also helped stabilize the prices of the products and avail them all year round so that there are no experiences of low supply and thus raise in the products prices. (Mahdi et al., 2015). The market is always satisfied with the quality and volume of supply that meets all the fluctuation like the sudden increase in demand or its fall. The impacts of globalization have made the company produce high quality, durable and limited the production impact on the environmental pollution and degradation. It is playing a global roll in the management and conservation of the environment worldwide by taking part in community participation and charitable organizations that serve the society in community issues alongside environment (Mahdi et al.,
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.
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
First, we want Nike to play a role in effecting positive, systemic change in working conditions within our industries. If our efforts lead to a workplace oasis -- one solitary and shining example in a desert of poor conditions -- then we’ve not succeeded. Even if that single shining example were to exist (and we’re not claiming it does), we’ve learned that positive changes won’t last unless the landscape changes. Our challenge is to work with the industry and our contract manufacturers to collectively address these systemic non-compliance issues that our data so highlight. This is one of the key reasons we made the decision to disclose our supply base; we believe this could encourage other companies to do the same. Our belief is that in disclosing, the industry will find ways to better share knowledge and learnings. This, in turn, will facilitate the building of further partnership approaches that are built on best practice and gradually lead us to standard codes, standard approaches to monitoring, standard reporting and standard parameters for transparency. It’s our belief that for market forces to enable responsible competitiveness, consumers must be able to reward brands and suppliers using fact-based information. Compliance efforts need to be optimized, made affordable and demonstrate real return if better working conditions are to become widespread. Disclosure of our supply chain is done in an effort to jump-start disclosure and collaboration throughout the industry and support efforts towards that final goal of market forces, providing the tipping point for the mainstreaming of best practice.
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 is a multinational corporation with a brand that is recognizable worldwide. For the following paper I will conduct be conducting a social media audit, and evaluating the social media strategies currently being used by Nike. Nike is American multinational corporation that is engaged in the design, development and worldwide marketing and selling of footwear, apparel, equipment, accessories and services. It is one of the world's largest suppliers of athletic shoes and apparel and a major manufacturer of sports equipment. 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, 1978. (Wikipedia, 2013)
Consumers are increasingly aware of CSR behaviors and expect corporations to act in a socially responsible manner (Smith & Brower, 2012). This increased importance of CSR behaviors is particularly important for millennial consumers, and millennials actively look for information on products regarding CSR and environmental related issues. As millennial consumer group continues to grow in purchasing power in the coming decades, CSR programs and ethical conduct will become increasingly important to organizations. However, as jobs continue to be lost to automation, society may begin to view the environmental impact and risks involved in unethical labor practices to be less important than the inability for members of a society to find suitable employment. Nike does indeed have a program designed to increase automation in its production processes (Wei, 2016). This increasing automation will not only be an issue that Nike will have to deal with, it will also be an issue that society and other industries will face as well. As previous jobs working in factories become decreased substantially, society will need to find alternative ways for individuals to gain employment. In order to face these issues, Nike will need to continue to form partnerships with others in various industries to
As we can see in the essay, “The Noble Feat of Nike” by Johan Norberg, the globalization of companies like Nike isn’t all bad. There is some positive light to it, for example, the fact that workers are finally making enough money to live a decent life and send their children to school. In addition to this, workers are guaranteed jobs and don’t have to endure the tough labor of working on farms in the harsh weather conditions. So from these effects we can conclude that the globalization of Nike in third world countries like Nike isn’t a disadvantage to these workers, in fact it serves as an advantage.
With the increasing awareness and publicity of poor working conditions in subcontracted factories in East Asia, Nike has stimulated an uprising of activist and watchdog groups working toward seeing these conditions changed. With Nike in the negative spotlight, various organizations have revolved around generating a negative outlook on Nike’s practices of social irresponsibility. Certain campaigns such as the “National Days of Consciousness” and “International Day of Protest” were organized to educate people on the deplorable working conditions in Nike’s Asian manufacturing plants, and were designed to get more people involved in global employment issues.
INTRODUCTION NorthPoint Large-Cap Fund, from the NorthPoint Group, invests mostly in Fortune 500 companies with an emphasis on value investing. Generally it invests in old-economy stocks and it has been doing really well in the past year of 2000 (return of 20.7% even as the S&P 500 fell 10.1%). Kimi Ford, a portfolio manager at NorthPoint Group, is considering buying some shares for the fund, a week before she began her research Nike Inc. decided to host an analysts’ meeting to show their 2001 fiscal results. However, this meeting had another purpose other than just providing information about their fiscal results, the meeting was also to communicate a new strategy to revitalize the company by developing more athletic-shoe products at a mid-price range.
Nike’s positioning in the market has more of a mass appeal compared to their main competitor Adidas who strive to make products for elite athletes. The positioning strategy for Nike is currently working at a satisfactory level as Nikes global annual sales between 2013-2014 was reported as 27.8 billion (Statista, 2014) compared to Adidas’ 19.95 billion (Statista, 2014). The global market for sports apparel is expected to grow at a compound annual growth rate of 4% between 2012-2019, Nikes compound annual growth rate during 2010-2012 was 12.3% which is an excellent result as the brand’s growth was larger than the market as well as outgrowing Nike’s closest competitors Adidas, Puma and Asics (Forbes,
Social Responsibility is not new to the human race, it has been there for decades. Businesses were more concerned mainly with their economics results “Today, however, businesses must also reflect on the legal, ethical, moral and social consequences of their decisions” (Anderson, 1989, 15). Organizations worldwide consider the society’s interests by taking responsibilities for their activities on customers, employees, shareholders and the communities. This article will be concentrating on the strengths, limitations and challenges of businesses applying ethics and social responsibilities within their supplier networks. It will cover Nikes productions practices and its corporate social responsibility.
Nike Inc. is a very successful publicly traded sportswear and equipment company based in the United States. Nike is a multi-national and Fortune 500 company. It has reached achievements in their innovation in products that Nike has become one of the most recognized companies today and companies dream to have what Nike has created. The main headquarters for the company is in the Portland area near Beaverton, Oregon. Nike leads the world in supplying athletic apparel and shoes. Nike shows how devoted they are in the satisfaction of their customer’s needs that it shines upon their mission statement and encompasses their vision. Nike ensures to go far and
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)