Hitting the Wall: Nike and International Labor Practices It is ironic to see how an organization like Nike would response to its negative labor practices in quite an immature way‚ especially when it carries a big brand image in the industry and has a lot on stake to lose; with respect to its loyal clientele and future growth opportunities. In my opinion‚ Nike’s approach was almost prohibitive‚ specifically for the initial few years. I agree‚ later on in May‚ 1998 Knight announced a series of sweeping
Premium Minimum wage Human rights Rights
Case Study "Hitting the Wall: Nike and International Labor Practices" Nike ’s strategy of shaving costs caused ethical dilemmas that ultimately damaged its reputation. Nike outsources all of its manufacturing. This approach has provided Nike with huge profits‚ "from a 1972 level of $60‚000 to a startling $49 million in just ten years" (Bartlett‚ Ghosal‚ & Birinshaw‚ 2004). "Production is now globalised‚ with different countries concentrating on different parts of the process depending on what they
Premium Human rights International Labour Organization Minimum wage
Hitting the Wall: Nike and International Labor Practice BY SEASON ISSUE DEFINITION How do Nike do the international labor practice effectly? SITUATION ANALYSIS In the mid-1990s Nike‚ one of the world’s most successful footwear company‚ is hit by a spate of alarmingly bad publicity. After years of high-profile media attention as the company that can "just do it". Nike is suddenly being portrayed as a firm that relies on low-cost‚ exploited labor in
Premium Marketing World Trade Organization Wage
HITTING THE WALL: NIKE AND INTERNATIONAL LABOR PRACTICES Synopsis of The Situation 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 consumer. Selling a combination of basic footwear and street-smart athleticism‚ Nike pushed its revenues from a 1972 level of
Premium Minimum wage Wage Employment
1) Which criticisms leveled against Nike do you consider to be "fair"? Explain. Nike ’s corporate practices are good indicators that the company is only interested in exploiting low wages in third world countries. This is indicated by investing in these countries through worker training or human resource investment but has continually shifted its operation to the country with a lower wage. Nike is in control of its subcontractors They dictate the price of a shoe and the cost of operation to
Premium Wage Minimum wage Employment
This article "Hitting the Wall" describes the ways in which international labor policies hurt Nike‚ a company that was once prospering and a model of efficiency. The article begins by describing Phil Knight’s‚ the CEO of Nike‚ strategy to outsource all manufacturing. He then wanted to use this money saved through outsourcing and use it towards marketing and endorsements with athletes. Nike began by using manufacturers in Japan‚ switching to South Korea and Taiwan when costs rose to high. Now a large
Premium Manufacturing Mass production American system of manufacturing
Hitting the Wall: Nike & international labor practices How well and how responsibly do you think she has handled these issues to date? What advice would you give her about how she should now proceed? What principles should guide the company’s policies and practices? What opportunities‚ constraints‚ and risks does the firm face? What are the scope and limits of its social responsibilities? There are two aspects to look at how Nike has acted: 1) The intension with which it has acted:
Premium Social responsibility Corporate social responsibility
Problem Identification Established in the early 70’s Nike‚ Inc.‚ based in Beaverton‚ Oregon‚ USA faced a severe stream of criticism and experienced growing problems concerning their plants and employee treatment‚ mainly in Indonesia and Vietnam in 1988. Rising demand for Nike products‚ which almost doubled within a short period of time‚ led the company and its 350+ subcontractors to raise the production level. Series of labor problems and abuse such as cheap labor wages‚ poor working conditions
Premium Employment Wage Minimum wage
Nike and International Labor Practices Nike has long been known as the only brand of shoes to wear. Since its inception in the early 1970s‚ teenagers have seen the brand’s “swoosh” as a mark of cool. With their celebrity endorsements with people like Tiger Woods‚ kids have wanted the shoes so that they could be like their sports star. Nike was headed to the top rung of the athletic shoe industry until it hit trouble in the 1990s with news leaking out about labor violations in its factories overseas
Premium Athletic shoe Shoe Nike, Inc.
Nike and child labour Nike is a household name when it comes to sports apparel and equipment. It has worked hard to burnish its image‚ especially by garnering endorsements from big names in the sports world‚such as Michael Jordan. But in 1996 its silver image began to tarnish. It knew it was in trouble when an article on child labour in Pakistan appeared in Life magazine with a picture of a 12-year-old boy sewing a Nike soccer ball in a factory‚ and activists started showing up in front
Premium Athletic shoe Morality Physical trauma