Nike provided a clear lesson on how supply chain ethics are made visible and can impact a brand. Nike initially had hyper-growth in the 1970’s and early 1980’s. At this time, Nike outsourced the assembly of it’s products to third parties in Asia in order to both drive efficiency and lower labour costs. When asked about their questionable business practices with some of these third-parties, Nike publicly stated that they couldn’t be expected to be responsible for the practices of its suppliers. This statement led to national media and activist groups sharpening their focus on the business practices of Nike suppliers and by extension Nike.
The competitor expand their categories to countries with deep their relationships with customers. 0.1 1 0.2 5. Consumer shifting to fashionable footwear 0.1 1 0.1 6. A new competitor whose sell the footwear of leisure and fashion . 0.05 2 0.1 Total Score 1 2.25 Justification of Nike key external factors.
With globally operating manufactures, Nike Company gain more challenges and it more complicated. Nike Company has failed to maintain their oversight on factories that is subcontracted to produce it’s good. Nike became the first in its specific sportswear industry to publish a comprehensive list of its contracting factories in addition to thorough reports on its factory environments, factory pay and persisting factory issues in order to maintain its still-nascent pledge to corporate social responsibility. However, despite these minor change to its business policy, Nike is still claim that the mistreatment in its factories still happen. Specifically, workers claimed that supervisors would throw shoes at them and equate them to dogs.
1. Abercrombie & Fitch If Abercrombie & Fitch fails as a brand, a lot of freaks and geeks might just be happy. As it is, the struggling retailer this year stripped CEO Michael S. Jeffries from his chairman duties — a sign that the company acknowledges Jeffries’ part in the retailer’s tanking sales. Jeffries has made ugly comments about the brand being only for cool kids, good-looking kids, and not for fat kids. These and similar sentiments sparked protests and boycotts.
Hillary Clinton’s quote is “Stronger Together”. But honestly, if what she wants become the laws of the United States, we will be weaker and this country will be destroyed. She wants to raise the national minimum wage. If we do that, say Dairy Queen does that, their prices will raise just so they could pay there employees. Imagine if that happened to every business, so if someone even tried to buy nice shoes, like Nike, the price could be unbelievably high, so they could pay the employees.
Nike was getting a very bad name because of its use of sweatshops. Since the mid-to-late 1990s, Nike has taken actions that were aimed at making their growth more sustainable and brand-enhancing. It helped to create the Fair Labor Association. It started to do audits of all of its factories world-wide. It became more transparent, publishing
The model is usually used, worldwide, to analyze the industry structure of a company as well as its corporate strategy. The forces are frequently used to measure competition intensity, attractiveness and profitability of an industry or market. One of the main intensity between the competitors is the rise of the number of competitors. Competition regulates how Nike maintains its share of the sports footwear in the market. Linking back to the porter five forces, it displays how competition impacts the environment of the industry and the performance of individual firms.
Through techniques such as scientific management, lead firms have been able to fragment the production of one commodity into multiple steps to ensure accuracy and efficiency. This has been ideal for fast fashion, whereas materials for clothing can be manufactured in various areas of the globe, then the assembly of these materials into clothing can be performed in another region. The decisions that predicate where these materials are being produced and manufactured is typically based on the cost of production and labour regimes for certain countries. However, with massive exploitation occurring to workers of the global south, many believed this issue may pertain to race, class, and gender issues. In Bangladesh, there are 4 million garment workers; 85% of them are women.
Evaluate Nike’s response to societal and consumer concerns about its contract manufacturing. It is a shock for the media as they did uncovered that Nike’s the industry leader, has a twisted problem within its own company, and the topic itself had spread rapidly to the worldwide in no time because Nike’s company did not take an immediate measurement to face the problem. Since the mid-1990s, critics about Nike labour rights had arisen rapidly in a massive amount, not only from the public, there are critics of from the mainstream media, and from human and labour rights violations bodies as well, such as child labor. In order to counter and response the criticism, Nike has to take a quick and suitable decision, in goal to rectify the problem, but as well as to redeem its reputation. Therefore Nike’s new priorities is making sure that their factories were not taking advantages of its workers anymore, and to ensure for a competitive wage and a safe work environment is provided for each worker.
In the book she supports this view by showing the effectiveness and prosperity of companies when they thrive to earn more money, create new technologies, for example the company Twentieth Century Motor Company which create engines made the brand new engine but because of the death of CEO and implementing the policy of payment and benefits program company went to bankruptcy. The reason why the book called Atlas shrugged is because author makes parallel between Greek mythology, where Atlas is goddess who holds the earth on his shoulders, the idea is that the Atlas is group of people who supports production, creation and creativity and by doing that they contribute into economy. When government interferes and destroys the free market system maintained by Atlas and tries to rule the economy Atlas shrug and everything collapse. Society loses what guaranteed its existence, majority of people lose their jobs and the economic crisis