The company displays a strong workforce of over 30,000+ employees. The employees are trained to be top quality employees and Nike uses HR as a training resource to help develop employees into future leaders. They do this to ensure Nike has leaders that can help the company continue to grow and move forward in departments such as their research and development or inventory management. In addition, the company is
Thus while the corporate head office maintained the responsibility of developing design and consistent marketing, the business units and contractors located far and wide were easily kept abreast of development and strategy. Another positive impact was the fact that, while Nike had only 22,658 direct worker, well over 500,000 workers in 51 countries and 71 factories were all helping to promote the Nike brand. The result was that Nike was able to move up from just the production of shoes to the production of wears and sporting equipment. And sales were expanded beyond, United States, Europe, Latin America and Asia. What an
The company became one of the very first international brands to introduce a Supplier Code of Conduct, which was launched in 1992 and opened for external audit in 1994. The code was desperately needed because, as Nike CEO Phil Knight noted in a 1998 speech to the National Press Club, “the Nike product [had] become synonymous with slave wages, forced overtime and arbitrary abuse”. At the time of his speech, Nike’s stock had more than doubled in value. The company has since gone from a virtual dead heat with rival Adidas (market caps of $3.97B and $3.59B, respectively) in 2001 to a position of dominance sixteen years later, with a market cap that has ballooned to over $86B vs. Adidas’s $17B. (Mulroy, 2016).
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.
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.
Nike sponsors many high-profile athletes and sports teams around the globe, with the highly recognized trademarks of "Just Do It" and the Swoosh logo. P.E.S.T.E.L Political During the year 2011, Nike undertook an extensive inspection of their policies and practices regarding political donations and trade association memberships, as well as their policy views. After the inspection, the NIKE Board of Directors took a company policy on these matters. In the US, they also make state- and local-level political contributions primarily to ballot-measure campaigns and prospects in Oregon, where its world headquarters is placed. Economic The economy has not slowed down the pace of business at Nike which is one of the most outstanding and wealthy sports manufacturers in the globe.
The company is one of the largest sports apparel manufacturing companies in the world. However, it faces stiff competition from Adidas, Reebok and Li Ning. Nike has over 700 shops located in 45 countries and sells its products globally (Harrison & Scorse, 2010). However, most of Nike’s factories are located in China, India, Taiwan, Malaysia, and Thailand and has various contract facilities across the world (Powell & Zwolinski, 2012). The company’s operating regions include North America, Central and Eastern Europe, China, Japan and Western Europe (Harrison & Scorse, 2010).
However, when the cost of production began to similarly increase in Korea and Thailand, Nike Inc. encourage its suppliers to transfer their operation to countries of lower costs of production in other to maintain its expansion strategy. Interestingly, this strategy was efficient and effective that today, Nike’s products are produced in more than 700 locations with about half a million of employees in more than 51 countries of the world. While it is essential to realize that the outsourcing strategy was very effective, it is also important to know that Nike Inc. did not rely on footwear production and importation alone, rather the company diversifies to producing and selling apparel. This diversification, no doubt, in combination to outsourcing its
Social media has gained popularity as an advertising tool over the past five years, and most companies, nowadays, use them to promote their brand and products. Nike is an American multinational corporation that engaged in the design, development, manufacturing and worldwide marketing and selling of footwear, apparel, equipment, accessories and services. With its headquarters located in Beaverton, Oregon, the company has at least 56,500 employees worldwide. It made a conscious decision to avoid traditional advertising and focused more on digital advertising which is why the company is very active on social media. Sports in general, are a fundamental social activity; therefore brands like Nike are a natural fit when it comes to social
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: • Political • Economic • Social • Technological The significance of all these factors can be different for different companies or industries but overall they play a crucial role in deciding the future action of every organization. 1.1 Political