Threats And Threats Of Nike

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This essay/assignment chronicles the promises and the threats/dangers of globalization using Nike, the sportswear manufacturer as a case study. It is essentially an extract from a presentation to Sloan School of Management by Richard M. Locke and Alvin J. Siteman. First and foremost, it’s important to we recall that globalization has continued to take the center stage in business discourse since the past two decades or so. This probably was as a result the growth and expansion in Information Communication Technology and development in global infrastructure. From business dictionary.com, globalization is essentially about the global movement towards economic, trade, financial and communication integration. But Investopedia, an online business/investment…show more content…
Locke and Alvin J. Siteman Nike started by developing a strong working relationship with companies in Asia where there was lower labour cost like I said earlier. And in some cases, business units and choice of contractors were sited with proximity to the target market in mind. The sustenance of lower production cost and cheaper distribution strategy could be said to be among the positives of this strategy of Nike. Some other positive included the ability to maintain common standard, as an approved design could easily be communicated through the existing communication/technological channel to all the business outlets and contractors of Nike. 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…show more content…
I am however, of the humble opinion, though with the benefits of hindsight, that Nike should have adopted a different approach. For instance seeking and obtaining knowledge of the culture of its proposed host community would have greatly helped. For instance, an old saying of my people, literally translated says that “the birds in each community speak the language of that community”. This suggests that people have their interpretation of their own situations. This knowledge would have revealed to Nike, some of the unethical practices on ground in their host communities, and knowledge of which would have given Nike a basis to insist on better practices where there is none. The result of the above would have led to avoiding the obvious pitfalls on the part to globalization and

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