The globalization of free trade was the one who started making competition increasingly fierce. Especially for companies that are well known in the international world. The competition is only about the profit and how to gain more. Therefore, it is no longer thinking about the fate and state of labor workers. This, poor working conditions have been present for centuries. Often little or nothing was done except a tragedy happens to persuade the public to raise workers ' rights. This is certainly the case in the United States during the Industrial Revolution, and even at the end of the 20th century. This condition has disappeared for most purposes in the United States, with the exception of some in the agricultural sector. However, internationally, especially in third world countries are poor, which is far from the truth. Large companies from the United States have moved most of their factories overseas to avoid strict working regulations in the United States. Third world countries such as China, Taiwan, Vietnam and Indonesia provide access to cheap labor is abundan t. These companies can now reap the benefits of the US consumer market, while keeping their costs are very low in offshore production. It is that seen as a big opportunity for Nike.inc .But before we look at the problems at overseas sites, we must first understand why Nike moved the majority of its production is so far from its headquarters in Beaverton, Oregon .Untapped markets around the world presented some
For example, the formation of the Department of Labor on March 4, 1913, by President Taft with its sole .purpose being to promote and monitor the wellbeing of workers, to improve working conditions, and to enhance profitable employment. There are currently a list of regulations that must be followed in factories or owners will suffer consequences and therefore lose their economic profits. A grievance system was established and workers unions are stronger than ever with the power to strike and stop factories from producing materials while trying to prevent such tragedies from ever occurring again. “Even today, sweatshops have not disappeared in the United States. They keep attracting workers in desperate need of employment and undocumented immigrants, who may be anxious to avoid involvement with governmental agencies.
Up until the early 20th century, American labor laws did not protect employees and work environments were not monitored for unsafe conditions. Factories were allowed to run without proper fire exits, ventilation, pay, breaks and even children were forced into labor. These unsafe conditions came crashing down just before the end of the workday on March 25th, 1911 in the Triangle Shirtwaist Factory in New York City. In just under 30 minutes, 146 lives perished (Benin). Today, we call these factories “sweatshops” and they are primarily found in countries that lack laws enforcing proper working conditions.
America soon responded by putting on labor strikes, and requesting hire pay. The creation of Labor unions was a result of all the strikes, these unions would ensure fair hours, pay, and
Unlike today, the government took little interest in creating safety standards or in regulating how businesses treated workers. The typical industrial employee worked long hours under dangerous conditions for little pay. Many workers were poor immigrants who had little choice but to keep working despite the conditions. If
Health hazards were a big issue in the factories. Many workers were injured or dead due to factory incidents. The factory owners weren’t responsible for their lives, so it wasn’t well addressed to the public as an issue. However, labor workers created labor unions to address their issues to the factory owners and to the government, they protested to seek their needs first and for better wages. Many factories ignored and tried not to pay that much attention.
The work was also dangerous with not much supervising by the government. Workers, on the other hand, had little or even no bargaining power to leave the unsafe conditions. Nowadays, When Americans only pay attention when extreme work strike, levels of abuse are the norm hidden in the factories around the globe. Although the condition seems much improved, consumers don’t know the true fact- “Today, American citizens simply cannot know the working conditions of the factories that make the products they buy.
During the Progressive Era, most employers were not concerned with workers rights and focused more on profit than human rights or safety. The poor working class, as well as immigrants who had worked in the United States for a while, became infuriated over the unfair treatment and working conditions of which they suffered. Hugh Rockoff explains, “…industrialization had alienated the workingman…” (Rockoff 747).
Many companies and factories don't meet their requirements when it comes to workers rights. During “the booming years” Workers didn't get all the benefits and needs they needed. Around 1911, On an average day one hundred people died on the job. The rights for the workers in the Shirtwaist factory were very poor. They got little to no rights and little to no pay.
David Montero explains that in Sialkot, Pakistan there is a business, Saga Sports, that creates the Nike soccer balls by hand, the problem Nike has with the company is that they employ children to work in unjust conditions. “In November, Nike severed its contract with Saga Sports, its chief supplier, saying Saga's poor management exposes Nike to the threat of child labor and other labor violations,” (Montero). The chief executive of Nike is trying to reduce the amount of children that produce their goods in unfair conditions. The executive wants consumers to know that they are buying products that were manufactured the proper way of not having children make these items in appalling conditions that could threaten their health. The evidence suggest that working conditions is another reason that the United States consumers should not buy products that are made by
In using these countries, Nike continues to realize huge profit margins due to the availability of cheap labor in these countries. This practice has led to a number of ethical issues over the years for the company, bringing the social responsibility standing regularly under
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 .
Nike’s first globalization strategy was outsourcing. Nike Inc. realized that manufacturing its products (footwear) in the U.S was expensive and to further export these products to distributors outside the U.S would be a massive challenge. This is because price affordability was a major concern for customers outside the U.S who would not comprehend why sportswear should be that expensive to buy. However, Nike Inc. took advantage of globalization by using the Japanese high-quality, low-priced production strategy by outsourcing all its shoe production to Japanese producers (Locke,
This is due to Nike gets its merchandise generally from foreign manufacturers. To operate profitably, Nike need to get good value on products and supplies and, in turn, offer good value to its customers with accessible solutions. Publics: Many colleges and universities, especially anti-globalization groups as well as several anti-sweatshop groups
Price Strengths 1. Low Cost Manufacturing Nike has a company who use the low cost manufacturing for production footwear. All of the Nike’s footwear virtually is manufactured outside of the United States by independent contract manufacturers such as Vietnam, China and Indonesia. Nike was operate multiple factories around the worlds. In 2014, Vietnam, China, and Indonesia manufactured roughly about 43%, 28%, and 25% of total Nike branded footwear and it has also operations in other country such as Argentina, Brazil, India, and Mexico.
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