In his study, Carroll (2000) discussed the importance of social responsibility measurement and whether it has to be measured or not. He concluded that CSR definitely should be measured because of its role in the community and impact on the company. The question was” could the CSR measurement be developed” (Carroll, 2000,). Actually, there were several efforts have been done in order to create an appropriate measurement to the corporate social activities “in both academic and business activities” (Turker 2009). Wolfe and Aupperle (1991) concluded that the corporate social responsibility does not have a specific way to measure. Waddock and Graves (1997) mentioned the obstacles of CSR measurement and they evaluated the different methods.
CSR
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In addition, Nike has participated in many activities in recent years in order to improve its reputation. It has taken CSR as a kind of research and development. Nike CSR strategy focused on establishing constant economic growth by concentrating on the innovations. It based on long-term process assigned to improve the whole business functions. Today Nike became a Dealer Company in publishing CSR report. Recently, Nike began to bear the fruit of its strategy by obtaining many awards such "Innovation and Sustainability Award", also it enhanced its reputation and obtained high ranking position by getting very important titles such as "best company citizen" and most "valuable global brands" and these results have proven the efficiency of its CSR strategy.
Literature review
-The article presented Nike CSR strategy and how did Nike integrated by various activity and CSR report to establish sustainable company.
-The article figured out the terrible effects of negative CSR on the company and how long the company takes to build its reputation.
-The article presented the essential correlation between CSR and reputation and how to build a good image for the company by CSR
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Giorgio Armani, Ferrero and BMW were the top companies in the survey in practicing social responsibility. The result of the survey showed that 71% of Italian consumers tend to purchase from the best 10 companies and 26% tend to purchase from the other companies. Giorgio Armani group classified in the place number 31 of global CSR reputation. The group began a strategy long time ago to reach a good reputation followed by ethical process to develop new projects consistent with international environment, social and economic standards. Ferrero considered in the first of citizenship, and transparency. It obtained number 30 of global CSR reputation. Ferrero 's CSR strategy is consisting of four substrates, the most important substrate is the company 's program, which promotes an energetic lifestyle between the young people. BMW is the best for performance. It considered in place number 4 in the global CSR reputation. BMW CSR means to be motivated to change and development. It straggled to set high standard of environmental management, increase the corporate benefits to the community, and to make a diversity in the workforce.Literature review We can realize clearly from the survey results the high correlation between CSR and corporate reputation when all the 10 companies in Italy have an active social responsibility. The result suggested the
People are going to desire that same shoe or product. Nike creates a idea in the audiences mind to go get the shoe that the celebrity is wearing. Nike draws consumer in with role models. Nike ethos is very effective towards the
Corporate Social Responsibility (CSR) relates to the actions of an organization and the effects on the environment and social wellbeing. It is about the way that the company assesses its actions and takes responsibility for this. (Investopedia, n.d.) CSR is a management concept whereby companies integrate social and environmental issues in their business operations and interactions with stakeholders . The company aims to achieve a balance of economic, environmental and social objectives, while also listening to the needs of stakeholders.
Nike has sustained positive revenue in a worldwide market focusing on a healthy and active lifestyle. For the past 3 years Nike has gained a gross profit ratio of 8.73% in fiscal of 2013, 10.28% in fiscal of 2012, and 8.28% in 2011 . Thus showing the financial power Nike has, well the firm holds a net income of 2.5 billion in the fiscal year of 2013. Nike’s largest product category is footwear, representing over 55% of the companies revenue. Nike uses their financial resources ability to obtain large advertising plots, whether it is a commercial on television, advertisements on the Internet, or product promotion in athletic facilities.
On the contrary, the practice of CSR is an important consideration for long-term investment as it can help generate more profit in the future. In this report, Nestlé would be one of the good examples to illustrate those concepts. Nestlé is one of the world’s largest food and beverage companies. The company believes that by creating value for the shareholder and the public, it will have long-term sustainability.
Goals Nike focuses on pursuing opportunities and improving their product to enhance the human potential. Thereby they create product, services and experiences for athletes helping them overcome limitations such as climate and road types. Core Competency and Sustainable Competitive Advantage Nike’s have maxims to help Nike employees to create better products and provide better services for the customers. Henceforth creating better customer value compared to companies.
When a person hears or sees the word America, what do they think? America is a country that almost everyone in the world knows about because there are certain words and phrases that can be used to describe it. Some common terms are sports, equality, the melting pot, powerful, freedom, hard working, and some more. All of these words make up what is known as the American Identity. This American Identity has been built up over time by people’s actions and thoughts.
Nike has managed to shift their Manufacturing unit into Asian country’s were the labor is cheap to be exact wages of USD1 an hour were so little as one-tenth of those given in the US. No wonder that a pair of shoes which were sold for $150 in 1991 is made by indoasian women who were 58 cents a day but the situation has started to change and due to that reason the company has managed to minimize cost of production and not only double triple the the revenue as comparing to the year 1996. Finally we come up with promotion and advertising campaigns which became a grand success not only because they introduced sportspersons , they also introduced innovative ideas and wise strategies and the image of the Product, due to this process we can say that Nike targeted a huge no of audience and created a Prestigious brand which will be easily available for average people . they also came up with great tag lines such as ‘there is no finish life’ , and in the 1980 they changed it into “ JUST DO IT “ these quotes of tag lines are considerd very simple but very attracting and extremely encouraging for the customers .
Furthermore, it is noted that customers, particularly from developed nations like UK, France and Italy are more and more concerned about their health and the report on individual health expenditure over the last decade by OECD (2011) has confirmed that. The report shows that customers are becoming more inquisitive in the type, nature, origin and the processing method of materials in which, apparel and clothing firms uses in producing their product. Thus, demanding for transparency and accountability. Consequently, many customers have gone green and they are persistently advocating for sustainable and ethical activities of firms (Johansson, 2010; Pookulangara
In the assignment, it will discuss the sports brand Nike which specifically focuses in Chinese market. There are three main content areas in this assignment. The first part is a macro environmental analysis; the next part is the target customer profile; the last part is the analysis of marketing strategies. Macro Environmental Analysis: Nike is a very well-known market leader. It is an international brand, their products are selling in the worldwide including China.
Mark Moulton Professor Ottemann December 10, 2014 2014 Term Paper Nike & Under Armour Company Assessment Nike and Under Armour are two of the largest sportswear and athletic shoe companies in the world. Their histories and growth are similar but they use different corporate and business strategies. Their strategies reflect their corporate structure and the personalities of their leadership.
Micro and Macro Environmental factors that influence Marketing decisions (LO 2.1) Micro Environment: This indicates those elements over which the marketing firm has control or which it can use in order to gain information that will better help it in its marketing operations. Furthermore, these are the factors close to a business that have a direct impact on its business operations and success. It is important to carry out a full analysis of micro environmental factors prior to decide corporate strategy.
Simply put, Nike’s target market is mainly customers who have more concern for the quality and utility of the product than they have for the price at which the product is being sold. This helps to ensure that pricing never has to be adjusted downwards in attempts to woo in a larger number of customers. For any company to achieve success from the marketing strategies that it has put in place, it has to ensure that its strategy is flexible enough to keep up with the changing times and to also accommodate a large variety of customers. So as to do this, it is imperative that the products being produced by the company be innovative enough to exceed what is being provided by competitors in every possible way. Nike chose to take this into deep consideration and this resulted in it making a few changes on its marketing strategy.
Analysis of Ratios Liquidity Ratios Current Ratio= CA/CL Current ratio is a financial ratio that evaluates if a business has an adequate amount of resources to cover its debt over the next business cycle (typically 12 months). It does so by relating company's current assets to its current liabilities. Standard current ratio values differ from industry to industry. The higher this ratio, the more proficient the company is to pay its debt.
Probable factors that could affect Nike’s business judgements are a range of demographic, social, economic and political. A few have already started to transpire, though others are purely likelihoods. External factors affecting this mix is one of the most common, technology. Before Nike releases its brand new product line to the market, it’s always prepared to authorize that whether or not there has been any sort of major advances from the other competitors that would tracker its launch. Thus they must time this carefully, as other competition may demand to shadow its release with their marketing
Nike internal assessment(ust key external factors) Opportunities Weight Rate Score 1. Should strive to penetrate the new regions that have higher rate of growth such as “Brazil, eastern Europe , India, China 0.1 4 0.4 2. New production line for protective and safety footwear. 0.1