Nike: PEST Analysis Of Nike

1774 Words8 Pages
PEST Analysis

PEST analysis refers to all the macro-environmental factors that are necessary for strategic management. It is an acronym which when expanded includes six factors when the company is contemplating to launch or upgrade a service or a product.
The factors are: o Political o Economic o Social o Technological
The importance of all these factors is different for different companies or industries but comprehensively they play a crucial role in deciding the future action of every organization.

PEST Analysis for Nike, Inc.

Political Factors o Favorable US Government Policies
The government policies always have a profound impact on the businesses especially which are engaged globally. The US government has always initiated growth-oriented policies which have helped the company to grow and expand internationally.

o Political Unrest in Some Asian countries
Most of the factories of Nike, Inc. are located in the emerging Asian countries like Thailand, Vietnam and Indonesia. The political unrest in Thailand in the last few years was a major concern for the management of Nike, Inc. where more than 35 factories are located. The situation was equally gloomy in Vietnam, Indonesia and parts of China in stages as any form of protest, political instability or social unrest can disturb the supply chain of Nike, Inc.
Country Number of Factories (2014)
China 195
Indonesia 40
Vietnam 65
Thailand 35
Open Document