Nike: An Analysis Of Nike's Expansion Strategy

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Its expansion strategy include provide high quality products with the lowest costs and to do that Nike sourcing its products in factories/countries where low wages, poor working conditions, and human rights problems were rampant. The factories were located in many different area.

First, low wages in Indonesia six Indonesian factories, employing more than 25,000 workers produce six million pairs of shoes per year under exploitation, poor working conditions, and a range of human rights and labor abuses. About US$1). They petitioned the Indonesian government for exemptions to the legal minimum wage, claiming it would cause them “hardship” to pay.
Nike had been criticized for these issues and media and other organization help to publicize these violations. At first Nike ignored the criticism calming the Indonesian factories were owned and operated by independent …show more content…

Furthermore, Nike has 85 people specifically dedicated to labor and environmental compliance, Nike managers conduct on-site inspections on a weekly or monthly basis, and it develops a new incentive system to evaluate and reward its managers.

Another change include increased monitoring of Nike's suppliers; this is done through three steps first, Nike's suppliers must undergo a SHAPE inspection, second the audited process which is done by outside consultants like Price Waterhouse Coopers (PWC) or non-profits firms such as Verite, and third the evaluation process.

SHAPE inspection is pre-production inspection to monitor standards for a clean and healthy workplace, respectful labor-management relations, fair wages and working conditions, and minimum working

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