Advantages And Disadvantages Of Nike

Nike Inc. is an American multinational corporation and the global leader in the production and marketing of sports and athletic merchandise including shoes, clothing, equipment, accessories, and services. Nike is universally known as a supplier and sponsor of professional sports players and organizations as well as an advertiser to the public, with the highly recognized a trademark of "Just Do It" logo. In order to remain competitive and manufacturing costs low, Nike has expanded and moved to areas of the world where the labor cost is low and begun shifting offshore to Asian countries where the cost of manufacturing is lower. Because of its history and experience, Nike was a pioneer in overseas manufacturing to cut costs. However, Nike has

To solve the issue, there are three alternative solutions, so there are advantages and disadvantages of these three solutions. One of the alternatives is "do nothing." By doing nothing, one of the advantages is that they do not have to do anything. This applies an advantage because they do not need to think anything in the first place so that they will not take time to take care of the issue, and all they have to do is just to leave it. In addition, there is a possibility that if they try to deal with the issue, they may worsen the issue by making a mistake again or tackling in the wrong way, so it prevents them from making another problem. However, it also has disadvantages that if they do not anything, people around the world and other companies will think that Nike never feel apologetic for the problem, and it will cause customer churn. Also, it is not a matter that can be settled with just waiting, which means the issue will not go away without any effort. Therefore, "do nothing" is not going to be a solution of this problem. The second alternative is "construct a corporate code of ethics." The advantage of this is that they have to take care of ethics and give something back to the society as a part of the society in any case since corporations are under increasing pressure to contribute to the societies and communities today. CSR can be defined as the actions of a firm to benefit society beyond the requirements of the law and the direct interests of the firm, according to the textbook. It will be beneficial for both dealing with the issue and future in the long run by introducing CSR. Moreover, it will help them have a positive effect on their consumers and employees so that Nike will be able to make increased sales and customer loyalty, and retain more staff because being a good company makes it easier to recruit new employees, and employees will be motivated to stay longer which will leads to reducing the costs of recruitment and retraining.