Nike's Plan for China Essay

NIKE Inc. has been the worldwide leader of athletic shoe sales for many years now. The company’s successful brand image combined competition and enablement for the competitive, athletic user. Nike has to modify their brand to a focus of excitement and freedom and not just competitiveness. By collecting and studying an assortment of material we could be able to understand where NIKE is currently placed in the athletic shoe industry compared to their competition, and how they will be able to adjust their brand focus so it can be more effective in the future. These adjustments can help NIKE reach the more casual group of urban runners and ultimately increase the sales forecasts, while still controlling a percentage of the market for athletic shoes.

Nike is an American multinational corporation that is engaged in the design, development, manufacturing and worldwide marketing and sales of sporting apparel and accessories (Sage, 2008). Nike is the world leader in the segment of athletic shoes and apparel (Iqbal, n.d.). The purpose of this paper is to examine the challenges and issues faced by Nike’s management, and what factors have led to such issues. Furthermore, what theories and strategies can be used to explain the issues or deal with such problems for the future. Given the word limit of this paper, it is not possible to focus on all facets of Nike’s managerial complications, or the strategies that may be implemented to solve such issues. As such, this paper will focus on Nike’s organisational structure, motivation of their workforce and managing cross-cultural conflict effectively. Using these concepts, this paper will highlight Nike’s managerial blunders, and provide alternative strategies through the explanation of theories to assist in bettering its business practices. Finally this paper will conclude, that presently Nike’s brand is gradually recovering from its unethical pasts and on the road to regaining its consumer loyalty. Nevertheless, there are clearly management inefficiencies that need to be overcome, otherwise history may repeat itself.

This fact is showing that some Nike departments, especially in Oregon, are giving promotions to schools, teachers, and students. Nike fundraises money to schools for a better

Since being founded in 1962, Nike has grown from a small fledgling shoe retailer into a world-wide corporate giant. During its first year, sales for Nike were $8000, but as of November 30th, annual sales for Nike were over 12 billion dollars. (hoover) Although Nike already dominates the sporting world, there are many opportunities for growth. According to our research, key strategic challenges facing Nike are increased competition from Adidas with their technological shoe, the Adidas One, and a potentially fatal inability to enter a new growth market such as the extreme sports market. Our recommendations to help Nike confront these challenges consist of developing a product to remain competitive with Adidas, and also an aggressive move

Nike’s main strategy revolves around product branding. Their brand compromises of a swoosh logo which is accompanied by a message of “just do it”. The logo was imprinted on all of their products with the message developed to express the individuality of their target group. The branding was further promoted by Nike’s relentless approach on the quality of their product as demonstrated when considering overseas business opportunities, quality must not be compromised in order to do so. This ensures consumer satisfaction and loyalty towards Nike.

Nike is a worldwide powerhouse in the athletic shoe and apparel industry. Nike's short, but yet effective mission

They have created more sustainable products such as t-shirts made of recycled polyester and recycled plastic bottles. Recycling old shoes into new ones. Nike started numerous charities and has donated millions of dollars to organizations to help repair Nike's image. Nike must continuously work towards the enforcement of their corporate social responsibilities that they have presented to their suppliers at the same time they must remain competitive in the market place.

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.

To maintain positive balance sheet managers ought to constantly be in search of new strategies to do so. This may include upgrading of production equipment’s every five years, staff training, and business expansion just to mention a few. An expansionary policy is necessary to promote brand recognition, increased revenue, prolong the life cycle of products, increase customer base and loyalty. When a business is growing the opportunities presented by Economies of Scale become an added advantage to the firm. According to Locke and Siteman (2002), the story of Nike started in 1964 with the creation of Blue Ribbon Sport by Phil Knight and Bill Bowerman (p.3). They understood the benefits of comparative advantage in the production process and immediately began outsourcing the production of goods. The comparative advantage Nike had over its revivals was so overwhelming that Nike decided to become more involved in the production. What next for Nike? In the following paragraphs, we shall be answering questions related to the complexities of expansion amid a globalized world, drawing inspiration from “The Promise and Perils of Globalization: The Case of Nike”, a working paper presented by Richard M. Locke and Alvin J. Siteman.

Others than that, CSR (corporate social responsibility), Nike often be punished about their sweatshop factory in developing country. Then, “Copy Market” is very popular in China. There are counterfeit Nike products selling in market and create disarrangement to the consumers. Last but not the least, Nike’s customize service are not useable in some place such as Singapore and Malaysia, it means, they would not meet these country’s target market.

Nike uses the “power of our brand, the energy and passion of our people, and the scale of our business to create meaningful change” (Zanger, 2008). For example, Sam McCracken is the manager of Nike’s Native American business program. McCracken and Nike are “aware of the growing health issues facing Native Americans” (http://www.usatoday.com/news/nation/2007-09-26-nike-shoe_N.htm), and designed a shoe specific for this community. In addition to the development of this shoe, Nike is reinvesting the proceeds into healthcare programs geared towards Native Americans. “The company focuses its efforts on core impact areas tied to its long-term growth and innovative strategies” (Zanger, 2008.). Nike creates exciting and innovative campaigns, both for social responsibility and for market share. Nike’s “Just Do It.” Campaign continues their inspiration to sport and creating meaningful change. “"Just Do It" expresses a deep yearning that many of us have ' to succeed, to make our mark on the world. To overcome the fear and procrastination that holds us back. If we "Just Do It," we become heroes” (http://www.wireware.net/default.asp?PID=103). Another example of Nike’s innovative strategies is their team up with Apple, Inc. In September 2007, Nike engaged “runners directly, allowing consumers to meet running partners and track their own results online” (http://www.grokdotcom.com/2007/10/29/action-missing-from-online-ads/). Nike+

Perhaps the most important aspect of fundraising that the Nike financial officials must keep in mind is that they will need to sell their brand in order to raise money. All fundraising efforts are based on pure trust of those who want the buyers and donors to not only come and grace the occasion but also donate money. Hence, Nike, being an already established and loved brand must cash in the brand name and equity at any and all of these fundraisers.

Legal: In the united kingdom , there are lots of rule and regulation about in business policy and strong taxation policy. Taxation policy also affected the Nike business in the United Kingdom. Besides, they have to maintain proper employment law, age law, environmental law etc.

Nike’s management understands how important a relevant strategy is in the global environment, as Don Blair, Nike’s CFO, stated “...we are refocusing our efforts, increasing our investments in innovation, using our voice for stronger advocacy and looking at how we incubate new, scalable business models that enable us to thrive in a sustainable economy.”

Firstly Nike sold its franchise licenses in different countries expanding the market share in sports wear industry, and then the company moved towards purchasing shares in equity to reduce the risk uncertainty. Finally the company managed to bring the dealers’s corporation under one direction enabling them a better control and monitoring capabilities. Nike is making new policies, analyzing the performance of marketing and advertising with the standards they have set to make sure that the company is in line with its required its standards in addition; company is moving towards improving its advertisement in order to make it more effective in different regions. Nike has also faced different issues while internationalizing the business, such as capabilities, access, finance and business environment; unavailability of trained workers, limited information about the market, inability of contacting foreign customers and new business environments describes these issues on a vast ground.