How Did Nike Enforce The Movement Of The Manufacturing Factory In The United States

Producing product overseas puts Nike at risk of overseas sourcing, manufacturing, and financing. Nike buys and sells to different countries using different currencies. The currency rate fluctuates very often and Nike, at times could take a loss. This is a risk most companies cannot take. Nike has the ability to produce materials, import product and sell product in international market during a time of disease outbreaks, terrorist attacks, and military conflict. With these risks there are few companies who can afford to take these risks (aflorzak.com). This also proves no new threat for Nike.

Nike started to open up manufacturing factories in countries like Indonesia, Pakistan and Vietnam. Due to the wants of Nike to increase their revenue they tried to outsource the labor of their products since labor work in the US is very high and expensive. This was a bad idea due to that Indonesia pays their workers extremely low wages. Pakistan doesn’t have an age limit for them to be able to legally to work so many children in Pakistan were making

This paper describes the legal, cultural, and ethical challenges that confronted the global business presented in the Nike sweatshop debate case study. It illustrates Nike’s part in the sweatshop scandal and it also takes a look at the ethical issues that surround this touchy subject. This paper

The key economic factor that we have over here that Nike company dose not involve in production in any kind of form , instead; it will design the logo or the format and it’s contracts with several hundred factories around the world to manufacture ( Just Do It ).

The organization is also known to not use the American workforce but to outsource production to other countries. According to an article dated 2007, Nike had suppliers in 51 countries across the world (LOCKE, FEI & BRAUSE, 2007). Nike is subject to ethical concerns because they are a well-known organization that produces

As a leading company in footwear industry, Nike believes they have the responsibility to conduct their business in an ethical way and also expects the same of its business partners. Moreover, Nike focuses on working with long-term, strategic suppliers that demonstrate a commitment a safe working conditions to their employees (Nike, Inc., 2014).

Nike is a worldwide global corporation that has its shoes manufactured on a contract basis in places like Asia, China, and Vietnam. Although it does not actually own any of the manufacturing locations, it has long been accused of having its products manufactured in facilities that exploit workers. Although Nike admits some wrongdoing in the manufacturing facilities of its contractors, it claims to have started a commitment to improve working conditions in those facilities.

Investigation on outsourcing within business. The outsourcing of trainer companies within developing countries with particular emphasis on Nike outsourcing history.

If I were dealing with the same issues that Nike experienced, I would have probably done the same thing that they did. The need to get the suppliers and factories to adhere to save and fair treatment of the employees along with a decent wage would be my first priority. To openly talk to the press, customers or whoever would listen and inform then that yes, the ball was dropped and we have problems, but we are working on correcting the problems and then outline the steps that were being taken to resolve the issues. I grew up in Oregon and have heard numerous times how the company started. I know people who work in the corporate office and Nike treats their employees in the United States very good.

The purpose and intent of this paper is to describe the legal, cultural, and ethical challenges that face the Nike Corporation in their global business ventures. This paper will also touch on the roles of the host government and countries where Nike manufactures their products and the author will summarize the strategic and operational challenges that Nike managers face in globalization of the Nike product.

Nike would have known the right factories to outsource to instead of using factories that fail to meet their standards.

Nike grew at a compounded 20 percent growth rate and earned a 31 percent ROE for its shareholders through most of the past decade.

American business should not be permitted to claim it is an ethical firm if it ignores unethical practices by its international suppliers. For the purpose of this assignment I will use the Nike Company to highlight its unethical practices. Despite the popularity of Nike in the American market, it has been accused of exploiting employees abroad. The corporate social responsibility stipulates that a company should maximize its profit and minimizes its cost in operations and manufacturing, also at the same time benefit the community it operates in. This paper will further elaborate on the global strategy employed by Nike Company as it outsources its goods and the unethical issues its

Nike could have observed the ethical and social guidelines of how an organisation should be managed. They should not have hired minors under 16 to work. And instead of purchasing two shoe-manufacturing facilities in the United States, Nike could have just purchased one plant and see how their operations went before thinking about purchasing another plant. When the firm finally saw success in 1980, eight years after the company was founded, and became the largest athletic shoe company in the world, they could have finally purchased the shoe-manufacturing plants in the United States and it would probably have been a success, without having the need to subcontract factories and

Nike has benefited from the growth-orientated policies of the US government which will foster its business growth. In this context, Nike has been aided greatly by the US policies, hence providing them with the opportunity to modernize their products (Cooter, et. al., 1988). The support accorded to Nike by the US government, Nike enjoys low interest rates and stable currency conditions and competitive tax arrangements which able to advance the growth of the Nike. Stable political conditions in most major markets present opportunities for Nike to grow its business in these areas. Also, expanding free trade policies facilitate better market penetration overseas. Moreover, improving