Nike Case Study Analysis: Case Analysis Of Nike Corporation

The highly recognized name brand—Nike— fails to notice the faults that are happening in factories that are violating a few disturbing rules. The company’s reputation has decreased due to demands and claims Nike; implying that they utilize sweatshops to produce more products at a lower pay. The company has been sued numerous times for abusing and exploiting their employees in factories for years. Another problem that Nike has faced throughout the years was making employees work in poor environments that affected the health of many— which contributed to being abused by the manager for not going to work. Nike distributes and sells merchandise of high quality for a high value. The company is giving the satisfaction of quality service to their

Today Nike Inc is the largest manufacturer of sports footwear, apparel and equipment with worldwide revenue in excess of $25 billion in 2012 under various labels including Nike, Nike Golf, Converse and Hurley. Seventy percent of the company’s value is derived from footwear and apparel sold under the main brand Nike with Nike footwear commanding a market share

has, it is very clear that the company is focusing on Nike's future business needs, developing the "bench strength" of the company’s ability through intentional pioneer advancement. In the long process of choosing the suitable candidates who are capable to work in the company, Nike is concerned in their team building because of their well-known brand image. In doing so, Nike can look for suitable candidates that are capable of discriminating task arranging, supervisor responsibility for training and tutoring, and organized learning by means of individual- and group based classroom and learning new things from the web. Looking ahead, key regions of center for NIKE, Inc. incorporate helping workers and supervisors see how to fabricate effective vocations through formal and casual preparing and improvement, enhancing administration advancement, and inviting thoughts. The compulsory test for job seekers who are looking up for higher positions in Nike, candidates have to take is to understand how the company works and how well will the candidates cop in working with the company for Nike’s main focus is to enhance the potential of their employee and develop a leadership capability, this is done in organization and ability audits straightforwardly connected to the business vital needs. In Nike, high position leaders and managers are considered responsible for enhancing the execution, potential,

Nike invested in their brand by getting sports heroes to advertise for their brand such as Michael Jordon, Tiger Woods and the Brazilian football team. This further fuel the products appeal towards the consumers.

Nike also sends delegates to schools to educate them about the company’s objectives and assure them of their responsibilities as corporate citizens; champion independent monitoring by the Fair Labor Association. They also carried out researches to improve production smooth running and working hours in their factories and finally, disclosed its contract factory location to enhance

In order for Nike Go to be successful in the sports and energy drinks market,

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).

Clearly, Nike has the responsibility to hold suppliers to those conditions that prevail only in the supplying

Nike’s organizational Form reflects a conglomeration of resources, processes and people around the activities most critical to their target customers in terms of its Value Proposition. It decided therefore to concentrate in depth on the critical activities and competencies rather than increasing the breadth of its

Nike‘s vertical structure includes CEO Mark Parker and a board of directors chaired by co-founder Phil Knight. Although Nike has functional divisions and divisions based on specific products it is not a matrix organization. In a matrix organization, employees report to a functional and divisional manage. At Nike, employees report to the divisional manager and the president of each division reports directly to the CEO. Nike’s continued product innovation and successful marketing are due to the combination of functional and divisional organization using an operations department to insure communication between divisions. There is division of labor but it is not clearly identified. With a more pronounced division of labor and levels of direct supervision Nike can improve its

production was on the peak with over 40,000 shoes unit a month according to Locke (2002) the company was ready for globalization trades and worldwide expansion. Nike Inc. had hundreds of factories and thousands of employees, producing different designs and style of shoes. The Company was able to create new line department such as apparel athlete clothes and other equipment, they were selling high quality products which increased their sales and allowed the company to make considerable profits. The outsourcing jobs that Nike Inc. brought overseas were creating jobs for the population in those countries which also help boost the economy of those outsourced countries. As negatives impacts we can cite the poor working conditions for the labors in those outsourced countries, the health issues the product used to manufacture the shoes have engendered to the labors that are touching them every day and the low salary paid to the workers that don’t comply with the minimum wage. Murphy and Matthew (2001) argued that a high percentage of the workers were under aged which mean that Nike Inc. was involve in child labor, there were strong allegations of abuse and violence to women working in some of the factories of Nike Inc. all those were situations that have suffice to affect Nike Inc. image and ruin its public relationship with the media

It is important for any organization to consider the environmental influences that have been particularly important in the past, and the extent to which there are changes occurring. Having this knowledge will any Nike to stay on top of their game. The macro-environment consists of all the outside institutions and uncontrollable forces that have an actual or potential interest or impact on the organization’s ability to achieve its objectives.

Another perspective is to analyse based on the amount of good done as compared to the amount of bad. By subcontracting its operations in underdeveloped countries, Nike helps to create job and improve the lives of the employed. Then, we have to consider the poor working conditions, poor wages, and the constant violation of child labour laws. Now, the bad inevitably outweighs the good despite the lack of unit of measurement in the

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

Report on the Case Study Nike This report has been produced to provide an insight into the consumer decision-making process, buyer behaviour factors that consumers of Nike are influenced by. The report also details recommendations based on the findings. 2.0 Summary = =