Preview

Nike, Inc. Strategic Case Study

Powerful Essays
Open Document
Open Document
6088 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Nike, Inc. Strategic Case Study
Table of Contents

Executive Summary 4 1. Introduction 5 2. Strategic analysis 6 2.1 External analysis 6 2.1.1 PESTEL analysis 6 2.1.2 Porter’s Five 5 Forces and Government model analysis 8 2.1.3 Turbulence Model 9 2.2 Internal Analysis 9 3. Strategic directions and strategic objectives 10 3.1 Mission 10 3.2 Strategic objective 11 3.2.1 The financial objective of Nike 11 3.2.2 The non-financial objective of Nike 11 4. Key broad business-level and international strategies 12 4.1 Ansoff’s product and market business level strategies 12 4.2 Miles and Snow’s adaptive strategies 13 4.3 Porter’s competitive business level strategies 14 4.4 International strategies 15 5. Strategic implementation: General perspective 17 5.1 Environment Turbulence 17 5.2 BCG Matrix 17 6. Key strategic implementation issues 19 6.1 Outsourcing issue 19 6.2 Sweat factory 19 6.3 Labor shortage 19 7. Strategic evaluation 20 7.1Financial. 20 7.2 Employee 21 7.3 Customer 21 7.4 Environment 21 8. Conclusions and Recommendations 23 9. Reference List 24 10. Appendix 1 Stakeholder theory tables of Nike 28
11. Appendix 2 Business ethics four broad levels of ethical stance of Nike ………..29 12. Appendix 3 Triple bottom line of Nike………………………………………….29 13. Appendix 4 SWOT Analysis of Nike……………………………………………30

Executive summary
Nike, Inc. is a leading organization in the sportswear industry. It has successfully outsourcing its manufactures in the low cost countries all over the world. This report has analysed Nike’s strategies and identified the major issues which influenced its strategies’ implementation.
The report begins with Nike’s strategic analysis which included external factors and internal factors. Then, the report has discussed Nike’s mission and its strategic objectives, which included financial objective and non-financial objectives. Moreover, Ansoff’s Metrics, Miles & Snow’s adaptive strategies and Porter’s

You May Also Find These Documents Helpful

  • Good Essays

    Over the last 20 years, many corporations of the United States have moved their factories overseas as a way of reducing taxes, avoiding strict government regulations, and reducing overall costs. Nike Inc. is no different. They have hundreds of factories in various countries like South Korea, China, Vietnam, Taiwan, Pakistan and China. US based companies view this as an opportunity fulfil the consumers’ needs while maintaining much lower costs of production. The poor decisions of these corporations have been highlighted by the media with Nike getting a major portion of the scrutiny and highly criticized based on its organizational culture. Issues that have…

    • 1081 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    Nike was incorporated in 1968 and has become arguably synonymous with elite footwear/apparel amongst the world population (Nike 10K, 2009). Nike’s primary business “is the design and development and worldwide marketing of high quality footwear and apparel” (2009, pg.1). In addition, Nike also designs/markets sports equipment and accessory products. Nike puts a heavy emphasis on investing in the innovation and design of their products to give their customers a high-quality product. Nike is the largest seller of athletic footwear and apparel in the world (2009). Nike sets the bar for other companies in the sports apparel/footwear industry, like Under Armour.…

    • 5144 Words
    • 21 Pages
    Powerful Essays
  • Good Essays

    Nike Case Study

    • 899 Words
    • 4 Pages

    The company employs 650 000 contract workers worldwide at relatively low labour costs. Because of the early decision to manufacture shoes in Asia allowed his company to enjoy lower labor and production costs, Nike was able from the outset to produce highquality athletic shoes at competitive prices. Nike’s presence provides an influx of U.S. currency with which host countries can buy the imports, such as high-tech…

    • 899 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Nike sells to approximately 140 countries around the world and currently boasts an approximate revenue of $8,776,900,000 These revenues are based on product sales of shoes, clothing, and other sports products. Advertising expenditures currently total $223,300,000 and include the following allocations: $64,975,000 for network television, $31,447,000 for consumer magazines, $7,700,000 for spot television, $343,000 for newspapers, $134,000 for outdoor postings, and $36,000 for radio. (Reed Elsevier) Most footwear products are made outside of USA. However apparel products are produced in the USA and abroad. (www.statcan.ca) In this article we will try to explore the interaction between the company Nike and its external business environment, as well as the internal strengths and weaknesses of the company. We will attempt to discover some of the significant changes and events in the external environment that have occurred in the last 5 years and have directly impacted Nike. We will describe how the company adapted and responded to these changes and what the effects of these events were. Also we will identify and describe some of Nike's internal strengths and weaknesses.…

    • 4587 Words
    • 12 Pages
    Powerful Essays
  • Good Essays

    Nike Case Study

    • 890 Words
    • 4 Pages

    "Nike is criticized for using sweatshops in countries like Indonesia and Mexico. The company has been subject to much critical coverage of the often poor working conditions and the exploitativeness of the cheap overseas labor." – answers.com…

    • 890 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Nike Case Study

    • 379 Words
    • 2 Pages

    Nike transform into a market-oriented company after 1998. Prior to 1998 Nike gained market share based off of Nike name branding. Nike was not a company that looked towards the future, they failed recognized the wants and needs of their customer base and was totally insentive to the ethical issues of exploiting oversea workers.…

    • 379 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    Environmental Factors

    • 1031 Words
    • 5 Pages

    Nike is an organization that conducts both domestic and global marketing. The environmental factors will be identified that will affect the global and domestic marketing decisions. The following will be addressed as they relate to the organization’s marketing decisions: Analyze the influence of global economic interdependence and the effect of trade practices and agreements. Examine the importance of demographics and physical infrastructure. Analyze the influence of cultural differences. Examine the importance of social responsibility and ethics versus legal obligations. Explain the effect of technology.…

    • 1031 Words
    • 5 Pages
    Better Essays
  • Good Essays

    Nike Essay

    • 1227 Words
    • 5 Pages

    This business report will examine NIKE incorporated. A brief history will be provided followed by a detailed analysis of the components of globalisation, including topics such as:…

    • 1227 Words
    • 5 Pages
    Good Essays
  • Satisfactory Essays

    Kimi Ford manages a large mutual fund for NorthPoint Group. Her company is trying to decide whether or not to invest in Nike’s stock, which has been declining in price in the past year. Kimi has asked her assistant, Joanna Cohen, to estimate Nike’s weight average cost of capital (WACC) to help make this decision (Case 13, pg. 58). We looked at Joanna’s estimates and discovered a few problems that she made when estimating her cost of capital.…

    • 393 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Nike's Minimum Wage

    • 389 Words
    • 2 Pages

    Many companies such as Nike choose to outsource to save money. However, many of those companies also fail to pay their workers and provide them with decent work conditions which is exactly what Nike did. Due to Nike’s success, the company caught a lot of backlash but they were able to successfully address and handle people’s concerns.…

    • 389 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Nike Case Study

    • 972 Words
    • 4 Pages

    Nike uses a cross-functional team structure with their advertising. The advertising is outsourced to Wieden & Kennedy of Portland, Oregon with the ad employees housed at the Nike…

    • 972 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Nike Marketing Plan

    • 7636 Words
    • 31 Pages

    Nike is a worldwide powerhouse in the athletic shoe and apparel industry. Nike's short, but yet effective mission statement is characteristic of such success. Nike paints a picture of their company for the world to see their, "inspiration and innovation", as well as their "commitment to serve everyone in the world". Through a continuous effort by Nike to remain at the apex of technology and innovation, they are the market leader by a significant margin. As a result of Nike's pursuit of selling a broad spectrum of products, they possess a formidable competitive advantage.…

    • 7636 Words
    • 31 Pages
    Good Essays
  • Satisfactory Essays

    Nike Case Study

    • 1779 Words
    • 8 Pages

    1. What external and internal pressures did Mark Parker face when he assumed the leadership of Nike, and how did he respond to this challenges?…

    • 1779 Words
    • 8 Pages
    Satisfactory Essays
  • Best Essays

    The purpose of this assignment is to learn about strategy and strategic management by comparing the strategies of two companies from the same industry. The strategies of Nike and Adidas have been compared from the textile industry. Nike and Adidas both specialize in footwear, apparel and accessories and their competition is intense as Nike is the market leader and Adidas is the market challenger. The topics in this assignment cover critical incidents of both Nike and Adidas that occurred in the past and the comparison between both their strategies as well their future plans. This assignment shows us the influence the strategy has on the success or failure of companies and how companies craft sustainable strategies that help them to retain their position in the market.…

    • 4802 Words
    • 13 Pages
    Best Essays
  • Good Essays

    Nike Case Study

    • 947 Words
    • 4 Pages

    While there are some companies such as Blackberry, that have struggled to keep up with the growing technology changes and advances, there are also companies like Nike, which has continually innovated and increased marketing to survive over time. Nike is an excellent corporation to study which has had continuous success over a lengthy period of time. Nike has outlasted rivals and maintained its position as the top athletic wear producer in the world.…

    • 947 Words
    • 4 Pages
    Good Essays