Critical Analysis on NIKE

2220 WordsNov 23, 20139 Pages
Critical Analysis of Nike History Nike began as Phil Knight’s semester-long project to develop a small business, which included a marketing plan. This project was part of Phil Knight’s MBA course at Stanford University in the early 1960s. Phil Knight had been a runner at the University of Oregon in the late 1950s. His idea for his project was to develop high quality running shoes. He thought that high quality/low cost products could be produced in Japan and then shipped to the United States to be sold at a profit. His professor thought that Knight’s idea was interesting, but not much more than a project. In 1963 Phil Knight went to Japan and had a meeting with a running shoe manufacturing company called Tiger. He…show more content…
The problems seemed to be occurring in the Pou Chen Group Factory in Sukabumi, which is located about 100 kilometers from Jakarta. This factory started making Converse shoes in 2007, which was four years after Nike bought Converse. It has been reported that, “workers making Nike’s Converse brand sneakers in Indonesia said supervisors regularly physically assaulted and verbally abused them. Nike admits that abuses occurred but insists there was little it could do to stop it.” http://www.wsws.org/en/articles/2011/09/nike-s08.html The Pou Chen factory is located in a place where the minimum wage is far below the national average. It has 10,000 workers who make Converse sneakers. Most of the workers are women, and they earn only 50 cents an hour. The amount that they earn is not even enough to cover their food and very poor housing. In this factory, the women are both physically and verbally abused. Nike’s own investigations have proved these complaints to be true. The company made a statement saying that immediate actions would be taken to deal with the situation. It is interesting to note that, “an internal Nike report, released to the Associated Press after it inquired about the abuse, showed that nearly two-thirds of 168 factories making Converse products worldwide failed to meet Nike’s own standards for contract manufacturers. Twelve are in the most serious category, ranging from illegally long work hours to

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