...Analysis (Hitting the Wall: Nike and International Labor Practices ) Business Ethics (MBA-513) Section: 02 Case Summary Nike is global footwear for athletes and non-athletes. It is still a highly successful athletic shoemaker today. Based in Beaverton, Oregon, Nike had been a corporate success story for more than three decades. It was a sneaker company, but one armed with an inimitable attitude, phenomenal growth, and the apparent ability to dictate fashion trends to some of the world’s most influential consumers. Selling a combination of basic footwear and street-smart athleticism, Nike pushed its revenues from a 1972 level of $62,000 to a startling $49 million in just ten years. Many researchers believe that Nike went in decline due to two reasons: Michael Jordan’s final retirement and the slowing economy. Another aspect of Nike that has brought a negative image upon them is the negative accusations of exploiting foreign child labor with lower wage. Poor labor conditions and low wages have been an issue for many years, and are still present in 2011.In the 1980s and 1990s, Nike had been plagued by a series of labor incidents and public relations nightmares: underage workers in Indonesian plants, allegations of coerced overtime in China, dangerous working conditions in Vietnam. For a while, the stories had been largely confined to labor circles and activist publications, until a young female worker had died in a Nike contracting factory in 1997...
Words: 3349 - Pages: 14
...will arise either way it is looked at so it makes it almost unfair” Nike, Inc. is highly recognized name and logo not only in the U.S, but also around the entire world. This is because Nike is an American multinational corporation that is highly engaged in the design, development, and manufacturing. They are also responsible for being the world's largest suppliers of athletic shoes and apparel and a major manufacturer of sports equipment because of the proper worldwide marketing and selling of footwear, apparel, equipment, accessories and services. The company was founded on January 25, 1964, as Blue Ribbon Sports, by Bill Bowerman and Phil Knight and officially became Nike, Inc. on May 30, 1971. The company takes its name from Nike the Greek goddess of victory. Now that we have a brief history lesson of Nike let’s get into some of the culture issues they have faced and face since they have globalized. When a contract factory wishes to do business with Nike or one its many subsidiaries, it is critical that the owners and/or managers in the supply chain understand the cultural differences across the globe. Failure to understand the cultural norms can result in communication failure, lack of respect, negotiation breakdowns, and a loss of current and future business opportunities. On the contrary, it is critical for Nike managers to understand the culture differences of their international supply chain as well. Failure to grasp the customs of the different supplier communities...
Words: 1233 - Pages: 5
...Nike Supply Chain Management Nike is one of the world’s largest athletic shoes and Apparel Company based on USA, including footwear, apparel, equipment, accessories, and services. The company was found at January 25, 1964 and they change its name to NIKE on May 30, 1971. Nike has brand basket and market them, such as NIKE+, Air Jordan, Hurley International, Converse and etc. Nike’s supply chain is plenary because they control the add-value part by itself and outsourced those labor-intensive part to China and Vietnam same as most multinational company do. But this is not a simple process. From supply chain management point, Nike has optimize this chain for better performance these year. Firstly, they already have 785 contracted factories with at least a million of workers to produce beyond 500,000 different products，which are sold in Nike.com. Second, they focus on design and marketing, which is an add-value work to communicate with customer and market. For example, Nike created “Just do it” slogan in order to compete with Reebok. After that, this short and sweet slogan became a spirit of everybody. So, this slogan has been treated as the most popular advertisement in business, in Nike.com, you can watch the vedio, advertisement about “just do it” spirit. In addition, they have their own advanced distribution center and logistics to woo every retailer. Then, they have a mature “After-Sale-Service” for online shopping, factory stores, outlets and etc. Lastly, their customize...
Words: 778 - Pages: 4
...Case Study: Nike ERP Implementation Nike shoe division grew and spread rapidly around the globe from its inception in 1972 through 1998. Yet in 1999, Nike realized that in order to keep up with the growing demands of their products, and specifically their Air Jordan line of basketball shoes, they would have to make changes in the way they forecasted and projected demands and distributed their products. Eventually it was decided that these changes would take place in the form of the implementation of a new supply chain and Enterprise Resource Planning (ERP) software system. This paper will examine the supply chain problems Nike was trying to fix with the new system, the problems that arose from the implementation of the new system, and how Nike resolved these problems. Nike was founded in 1957 on the vision of two men, Bill Bowerman and Phil Knight; a vision to redefine the industry of athletic footwear. Bill Bowerman was a track and field coach at the University of Oregon in search of a competitive edge for his athletes, a competitive edge which could be achieved by spearheading changes to the running shoes of the time. At the time, Adidas and Puma were the dominant brands of running shoes. Phil Knight, a Portland runner with a degree in finance from Stanford University, proposed to compete with the German (Adidas and Puma) brands of running shoes by manufacturing them in Japan, which at the time was experiencing a post WWII boon in its economy, and their stage of manufacturing...
Words: 2341 - Pages: 10
...NIKE SUPPLY CHAIN MANAGEMENT INSERT NAME HERE INSERT UNIVERSITY/COLLEGE NAME HERE INSERT SUBMISSION DATE HERE2 TABLE OF CONTENTS 1 INTRODUCTION...................................................................................................................................................3 2 OVERVIEW OF NIKE...........................................................................................................................................4 3 NIKE SUPPLY CHAIN PROCESSES...............................................................................................................5 3.1 Nike Product Development....................................................................................................................5 3.2 Nike’s Manufacturing flow management........................................................................................6 3.3 Lean manufacturing ..................................................................................................................................6 4 NIKE SUPPLY CHAIN ASPECTS.....................................................................................................................7 4.1 Nike Vertical Relations.............................................................................................................................7 4.2 Horizontal Relations .................................................................................................................................8 5 NIKE...
Words: 4341 - Pages: 18
...Buy Nike and feel good A company's social responsibility is the biggest keyword for companies these years. The demand has never been greater than it is today, compared to, if you look at the way it once was. Consumers today do not only think of where their shirts are made, but also on the environment. Companies have never thought as much as they do now on their supply chain, and most important, protecting the environment. Nike´s CSR slogan is “innovate for a better world”. In the 1990´s Nike had several accusations of child labour, and it was something everybody talked about. At this point Nike´s brand was totally ruined, and they had got a bad reputation. It took Nike many years to actually realize how important it was to take responsibility for what was happening in the big supply chain, which is at its lowest at this point. They went from just focusing on improve their labour, but also be very focused on their design. Nike´s design had to been changed; and they got to cut down the waste of chemicals when they are producing products. In the video, Mark Parker, says “Innovate for a better world”, and that is not just something you say to get more customers, it is because they want to reach their positional, to improve their products, so the athletes can perform much better, and most important, saving the world. Every new design Nike is producing today is thought through so the environmental impact is minimal. You can say that Nike is no longer a shoe producer; today they...
Words: 720 - Pages: 3
...……………………………………………………………...5 Financial Overview…….…………………………………………..……………...6 Chapter 2…………………………………………………………………...….7 Internal & External Environment Analysis…………..……………………………….8 SWOT Analysis………………………………………………………….…….….9 Challenges faced by Nike………………………………………………………….11 Strategic Implemented for Rectification………………………………………….….13 Chapter 3…………………………………………………………………..….16 Leadership Hierarchy……………………………………………………..…...….17 Chapter 4…………………………………………………………….…….….21 Nike Core Competencies…………………………………………………..………22 Value Chain Analysis……………………………………………….…………….24 Chapter 5………………………………………………………………….…..26 Cooperate Governance……………………………………………………………27 BIBLIOGRAPHY……………………………..………………………….….30 C C hapter hapter 1 1 Introduction “Everything you need is already inside. Just do it” * Bill Bowerman (Fabrega, n.d.) “NIKE”, one of the most synonymous names with the sporting world, was initially established as Blue Ribbon Shoes in 1964. The brand was started by Bill Bowerman and Phil Knight at the University of Oregon; where the former was the latter’s track and field coach. (10 things you did not know about Nike, 2011) During Phil Knight’s time at Stanford University, he wrote a paper on ending German dominance...
Words: 5966 - Pages: 24
...Strategic Planning Strategic planning is something the Nike has been something that Nike has put much more emphasis on during the last decade. They realize that by planning well, they can produce higher quality products while improving their bottom line. Nike’s Strategic Planning team establishes a strategic business planning process, authors our one and three year strategic and business plans, and leads transformational initiatives in collaboration with cross-functional teams. Strategic Planning teams are embedded at the global corporate level and throughout their business units. This team frames complex and ambiguous issues, conducts consumer, competitive, and market analyses, fields research, creates financial models, and develops action plans (Nikebiz.com, 2010). One example of this is Nike's move to combine its reputation in high-performance athletic footwear with the iPod's meteoric success. In 2006, the company, which accounts for the largest share of running shoes sold in the United States, teamed up with Apple to launch Nike+: a digital sports kit comprising a sensor that attaches to your running shoe and a wireless receiver that connects to your iPod. As you jog and listen to your favorite music, the sensor tracks your speed and distance and the calories you've burned, and transmits that information to your iPod in real time. Back at your computer, you can upload your data to nikeplus.com, which stores your information and provides a user-friendly interface that...
Words: 1770 - Pages: 8
...“Nike: Just Do It” By Adam Fernald ETH/316 John Bevell In the past Nike has been accused of using child labor in the production of its soccer balls and sweatshop conditions in suppliers’ overseas factories. Nike has about 28,000 employees globally and over 800,000 workers who are employed by its suppliers in 52 countries and create sports and fitness footwear, apparel, equipment, and accessories for worldwide distribution (Trevino, L.K. & Nelson, K.A., 2011). Nike has worked to improve labor conditions in their footwear, apparel and equipment supply chains for more than 15 years. Key issues in which they have engaged include the health and safety of the workers who make their products, excessive overtime, the ability of workers to freely associate, and child labor and forced labor (Nike Inc., Labor, 2013). Since these accusations were brought to the publics attentions Nike has been focused on improving the monitoring of the organizations supply chain, sent auditors to evaluate conditions and enforce the company code. About a decade after Nike was first targeted they released factory names and locations of their suppliers. A MIT professor was brought in to assess Nikes audit data and the results were disappointing. Most suppliers’ factories had not improved, and some even got worse (Trevino, L.K. & Nelson, K.A., 2011). Nike's entrance into the Pakistani markets was the part of its long term strategic planning. Although Pakistan has laws against child labor...
Words: 1087 - Pages: 5
...Nike doing business in Indonesia Firm Profile Indonesia is a difficult entrant country environment for corporations to do business in which have constraints like: child labor, low wages, mandatory overtime, and education. Low wages are beneficial for Nike; on the same token the constraints like child labor, unfair work conditions, and mandatory overtime can harm the world renowned brands repetition. The media has painted negative picture of Nike, because productivity of shoes and other athletic apparel comes with the cost of unethical work conditions and labor practices. Arguments have been made that the effort of Nike outsourcing it’s manufacturing to factories in Indonesia, is the wrong choice. Furthermore, Nike has a social responsibility to maintain a satisfactory standard in the facilities where its products are manufactured. Condoning mandatory overtime is unethical. Importance should be placed on upholding the dignity of its workers. We will determine if doing business in Indonesia is a decision that Nike should maintain, due to the negative back lash that they receive in the United States from the Media. Along with indicating what is the best strategy should be applied for doing business in Indonesia. Operation The name Nike is the Greek goddess of victory (Ballinger, 1997) .Nike Corporation was originated by Phillip Knight an athlete from Beaverton Oregon. Knight in his beginning started importing shoes from Japan in efforts to compete with athletic companies...
Words: 3279 - Pages: 14
...A Case Analysis of Nike: The Sweatshop Debate Mindi Merritt Class Fall 2014 Instructor’s Name Introduction Nike is a hugely successful global industry that designs and markets shoes and apparel (Coakley & Kates, 2013). Most of Nike’s products are subcontracted and manufactured overseas in countries such as China, India, Vietnam, Indonesia and Korea. For decades, Nike has been embroiled in controversy where critics claim its products are manufactured in foreign factories with substandard working conditions and disregard to labor laws (Powell & Zwolinski, 2012). As a result, Nike has initiated numerous policy changes in an effort to silence these criticisms. While Nike has definitely made great strides in turning around its image, it continues to struggle with allegations from critics. Nike’s Responsibility for Working Conditions Should Nike be held responsible for working conditions in foreign factories that it does not own, but where subcontractors make products for Nike? Nike should be held responsible for the working conditions in foreign factories where subcontractors make products the company sells. Although Nike does not actually own the foreign factories, the workers are employees of Nike and Nike is the beneficiary of the products they are making. Thus, Nike is responsible (at least in part) of the working conditions endured by those that work there. Labor Standards of Foreign Factories What labor standards regarding safety, working conditions...
Words: 953 - Pages: 4
...What do creativity and innovation signify and entail? What are the key types of innovation? Historically, creativity and innovation have been thought to been tied to new products that stimulate economic growth. Over time, these views were thought to have been narrowand new ideas of innovation came about. Karl Marx associated innovation to economic growth cycles. After World War II, much thought was given to innovation being a result of higher spending on research and design. Economists soon realized there was no direct correlation between innovation and R&D. Newer contemporary thought notes that innovation is a result of acquiring knowledge and being able to harness it into the development of new processes and products. Innovation is a complex process itself, having many facets making up what it is,and what it provides. Entrepreneurship comprises taking a risk on something, and quite often innovation requires faith. Design is the development and creation of something. It is becoming synonymous with innovationand an increasingly important part of the business world today;From Board Room layouts to the structure of a manufacturing line, all the way down to how a product may be used by a customer. Invention is another important part of innovation. It is the eureka moment or the concept of a new idea. Innovation takes invention and transforms it into something useful and commercialized. There are several types of innovation. Product innovation is the development of a new or...
Words: 1078 - Pages: 5
...Nike Inc. Strategic Analysis ----Eric Overview Nike, Inc. is an American multinational corporation that is engaged in the design, development, manufacturing and worldwide marketing and selling of footwear, apparel, equipment, accessories and services. The company is headquartered near Beaverton, Oregon, in the Portland metropolitan area, and is one of only two Fortune 500 companies headquartered in Oregon. It is one of the world's largest suppliers of athletic shoes and apparel and a major manufacturer of sports equipment, with revenue in excess of US$24.1 billion in its fiscal year 2012 (ending May 31, 2012). As of 2012, it employed more than 44,000 people worldwide. The brand alone is valued at $10.7 billion, making it the most valuable brand among sports businesses. The company was founded on January 25, 1964 as Blue Ribbon Sports by Bill Bowerman and Phil Knight, and officially became Nike, Inc. on May 30, 1971. The company takes its name from Nike (Greek Νίκη), the Greek goddess of victory. Nike markets its products under its own brand, as well as Nike Golf, Nike Pro, Nike+, Air Jordan, Nike Skateboarding, and subsidiaries including Hurley International and Converse. Nike also owned Bauer Hockey (later renamed Nike Bauer) between 1995 and 2008, and previously owned Cole Haan and Umbro. In addition to manufacturing sportswear and equipment, the company operates retail stores under the Niketown name. Nike sponsors many high-profile...
Words: 2930 - Pages: 12
...Business Model and Strategic Plan Part II: SWOTT Analysis The Nike Adjust will require a new division of Nike, Inc. to be formed which will provide customer focus specifically for those in need of the new product. The mission, vision and values of the Nike Adjust division will mirror and expand on Nike, Inc.’s current mission, vision and overall values while also adding to them. The specific mission statement of the Adjust division will be: Bring inspiration and hope to every individual in need of foot health help by providing the product necessary for them to become the athlete Nike, Inc. believes they all are. As with any new organization or division, a proper SWOTT analysis of Nike and the Nike Adjust has been completed. The analysis looks at several different areas including economic and legal and regulatory forces and trends as well as the Nike supply chain. SWOTT Analysis of Nike, Inc. In business, there is a strategic aspect used known as the SWOTT analysis. This analysis allows the organization to analyze the strengths, weaknesses, opportunities, threats, and trends of the business. Generally, the strengths and weaknesses will come from internal factors, whereas opportunities, threats, and trends seem to come from more external factors. Strengths For example, with the new Nike Adjust, there are many strengths this new and innovative product could bring to Nike. Some of these strengths would be: * Nike would be the first company to offer a running shoe in conjunction...
Words: 1851 - Pages: 8
...Running Head: Nike, Inc. Nike, Inc. Case Study Adelaide A. Odoteye FIN 586 – Dr. Cullers Fall 2006 The brand name “Nike” is one of the most readily recognized around the globe. The name is synonymous with high-quality athletic shoes, apparel, and accessories in the minds of many people worldwide. Perhaps it is the ubiquitous Nike “swoosh” and compelling marketing that commands attention. Or maybe it is the association between the brand name and its famous endorsers, such as Tiger Woods and Michael Jordan. Alternatively, it may be Nike’s cutting-edge sporting vision and technology that entrances multitudes of consumers. Quite conceivably, it is a combination of these factors that has propelled Nike to the top of its industry. However, not all of Nike’s story is ideal. In recent years, the company has faced criticism in connection with its use of contract labor in developing nations. The purpose of this case is to provide an understanding of the company’s background, its general business strategy, and its use of contract labor. The Athletic Apparel and Footwear Industry The athletic apparel and footwear industry experienced steady growth for more than two decades, beginning in the early 1980’s. For example, in the U.S.A. alone, consumer spending on athletic footwear increased by 10 percent during the first six months of 2005 (Quinn, 2006). Consumers were not just professional athletes, but ordinary men, women, and...
Words: 6449 - Pages: 26
