Exploring How Nike Influences the Environments in Which It Operates

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Exploring How Nike Influences the Environments in Which It Operates


The main objective of this essay is to answer the question "to what extent does Nike influence the shape of the environments in which it operates?" To reach this objective, I will first talk a little bit about the components of this question, which are "Nike" and "Environments".

There is a tiny difference between a global and multinational company, but in general they are companies which operate in a number of countries and have production or service outside the country of origin.

About Nike:

The global corporation we know today as Nike originated from a small company founded in 1962 by two sports
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In this discussion I will emphasize on the macro-environments which are known as PEST factors and their two way influence with Nike (Diagram).

Venn Diagram

There are many methods to model the macro-environment factors, main four methods are:

1- STEP checklist: Structures set of separate but interconnected influences such as Social, Technology, Economic, and Political.

2- Transformation model: The environment is viewed as a set of inputs (products and resources) and transformed in the business to outputs (goods and services).

3- Mintzberg's physiognomy: Where the environment are viewed as a set of interested people and groups (Cast List) that have interaction and coalition with the business and the business activities.

4- Economic sector analysis: Where the business activities are grouped according to its sectors and competition is viewed within each sector/ market.

I will use the STEP checklist, being the simple and less complex method to start my discussion with. Basically, we can identify four major environments that affect any kind of businesses, Social, Technological, Economical and Political environments.

I can say that those environments have a global effect. This is due to the fact that globalization did not leave anything to be national, including business environments. While some of the environments

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