Providing two undesirable alternatives to make the other one attractive is not acceptable. One is duplicating that is direct imitation and the other one is substituting that is indirect imitation. It is an extremely important number for both corporations and usually financials advisors. And the buyer power is low if there are lesser options of alternatives and switching. Slideshow outlining pro's and con's of Nike's international activities. Part of the answer to its success lies in the efficiencies of its manufacturing model. Is these conditions are not met, company may lead to competitive disadvantage. The Benefits of E-contracting Nike Distribution Nike Company's Marketing Strategy Nike Case Study Views on Nike Brand Struggling Readers vs. Non-Struggling Readers Nike's Cheap Labor. Sources and constraints of organization from meeting its objectives. it deals with the ability of customers to take down the prices. Nike's success is based on an important strategic innovation, to subcontract the complete manufacturing from the start. The research and case studies below explore Nike’s approach to sustainable innovation and equitable manufacturing. Hitting the Wall: Nike and International Labor Practices. It is said that case should be read two times. Future case based research may replicate our study in other geographical contexts, industries and with different company sizes. STEP 2: Reading The Nike Outsourcing Harvard Case Study: To have a complete understanding of the case, one should focus on case reading. To analyze the business objective and its opportunities and threats, following steps should be followed: These headings and analyses would help the company to consider these factors and make a “big picture” of company’s characteristics. However, by mid 1990s the company suffered very bad publicity after thriving for about three decades. Global Marketing Management. In this model, five forces have been identified which play an important part in shaping the market and industry. ORGANIZED TO CAPTURE VALUE: resources, itself, cannot provide advantages to organization until it is organized and exploit to do so. Make sure that points identified should carry itself with strategy formulation process. Nike Inc.'s Outsourcing and International Labor. ... Nike+ with Apple, etc. That way, the firm was not required to own equipment, manufacturing plants, machinery or materials for use in production of their Nike shoes. Nike rapidly grew to become one of the most successful firms in sportswear across the world. If the goods and services are not up to the standard, consumers can use substitutes and alternatives that do not need any extra effort and do not make a major difference. Web. This time, highlighting the important point and mark the necessary information provided in the case. It will also weaken the company’s position. If there are few alternatives o supplier available, this will threat the company and it would have to purchase its raw material in supplier’s terms. Resources are also valuable if they provide customer satisfaction and increase customer value. The Swoosh logo is recognized easily around the world and differentiates Nike from the crowd of sports shoes and apparel brands. Student’s role is to analyze the case and diagnose the situation, identify the problem and then give appropriate recommendations and steps to be taken. Changes in these situation and its effects. IvyPanda. Most recognizable brand in the footwear Analyze the threats and issues that would be caused due to change. Also, manipulating different data and combining with other information available will give a new insight. Part of the answer to its success lies in the efficiencies of its manufacturing model. Thus; multinationals and integration of world economies requires that any successful firm on international scene such as Nike, must be honest in disclosing corporate responsibility, enforce code of conduct, comply by the manufacturing standards of a product, follow the laws of the country they operate in, and monitor company practices. The firm focused so much on cutting the costs (mainly the labor costs) at the expense of the workers. Initial reading is to get a rough idea of what information is provided for the analyses. Long and hard hours are notorious of the Nike sweatshops. This value may create by increasing differentiation in existing product or decrease its price. It is very important to select the alternatives and then evaluate the best one as the company have limited choices and constraints. Your privacy is extremely important to us. If the selected alternative is fulfilling the above criteria, the decision should be taken straightforwardly. In addition, the quantitative data in case, and its relations with other quantitative or qualitative variables should be given more importance. Its changes and effects on company. The buyer power is high if there are too many alternatives available. Nike’s corporate responsibility started to tarnish because they intended to cut cost by outsourcing (Bartlett, Ghoshal & Beamish 102). Decisions needed to be made and the responsible Person to make decision. Therefore, in-depth understanding f case guidelines is very important. Copyright © 2020 - IvyPanda is a trading name of Edustream Technologies LLC, a company registered in Wyoming, USA. Leaders in innovation. Case study: Nike production in China . 301 certified writers online. the lesser money and resources are required to enter into any industry, the higher there will be new competitors and be an effective competitor. Change in population growth rate and age factors, and its impacts on organization. IvyPanda. – Reviews the latest management developments across the globe and pinpoints practical implications from cutting‐edge research and case studies., – Scans the top 400 management publications in the world to identify the most topical issues and latest concepts. Prepared for Mark Parker President and Chief Executive Officer. To have a complete understanding of the case, one should focus on case reading. IT Support as a Service; Software Quality as a Service; Talent Pipeline as a Service; Additional Services. What is visual communication and why it matters; Nov. 20, 2020. Sick days and visits to the clinic are denied or deducted from the worker’s wages. The list includes 124 plants in China, … COSTLY TO IMITATE: the resources are costly to imitate, if other organizations cannot imitate it. Nike workers are forced to work overtime without pay. 1346 Words 5 Pages. Upper Saddle River, NJ: Prentice Hall, 2002. By 1982, Nike was forced to shift to other markets including China and Indonesia. One of the major solutions to help solve Nikes problems would be to ensure that its outsourced partners would have a reasonable minimum wage that can allow workers to make a decent living out of the earnings (Spar and Burns 12). MGT/230 v6 Nike Case Study Analysis Nike: Spreading Out to Win the Race Nike is indisputably a giant in the athletics industry. professional specifically for you? April 02, 2015 Memo of Transmittal To: Mark Parker CEO and Nike Board of Directors From: 13 Consulting Group 13 Consulting Group Date: April … For example, using Aquafina in substitution of tap water, Pepsi in alternative of Coca Cola. There is a minimum labor pay, maximum number of working hours per week at 60 hours etc (US department of labor 41). November 27, 2020. https://ivypanda.com/essays/nike-incs-outsourcing-and-international-labor/. HBS Case no. However, if there are many suppliers alternative, suppliers have low bargaining power and company do not have to face high switching cost. Nike outsourcing their products most of the factories are located in Asia such as China, Indonesia and India. Student should provide more than one decent solution. This process of outsourcing led to the appearance of the first true network firm without factories. The Nike brand is one of the most recognizable in the billion-dollar footwear industry, and the company is commonly known for its outsourcing practices. In most courses studied at Harvard Business schools, students are provided with a case study. It mainly consists the importance of a customer and the level of cost if a customer will switch from one product to another. Objective: To research the issues surrounding the NIDL focussing on Nike and its global operations. The investigation explores the efficiency of the marketing strategies, company operations, policies and processes; vis-à-vis its mission and resources (Warren 34). Best alternative should be selected must be the best when evaluating it on the decision criteria. As such, Nike signed a contract with a Japanese firm, but it later shifted to South Korea and Taiwan as Japan became costly (Bartlett, Ghoshal, and Beamish 101). Nike was exposed as a business that made its profits by exploiting the low-cost laborers in overseas plants, where most of its manufacturing had been outsourced. However, Nike failed to understand that it shared responsibility for the actions of its partners since ethical issues were not merely the actions of individual workers but the effects of the factors the organization presents. Therefore there must be some resources and capabilities in an organization that can facilitate the competitive advantage to company. And its effects on company, Effect of globalization on economic environment. Unique selling proposition of the company. The compatibility of objectives. The challenging diagnosis for Nike Outsourcing and the management of information is needed to be provided. Activities that can be avoided for Nike Outsourcing. Nonetheless, South Korea and Taiwan grew their economies fast and their once cheaper labor and lower production costs increased. Take a Risk Stay True Success Mylee Brown Chris Heywood Alex Miller Tarl Langham Jordon Westbroek Never Stop Running Success Remained true to their mission. Nike is a great example of how imperialism is still evident in our modern society. However, the problem should be concisely define in no more than a paragraph. However, poor guide reading will lead to misunderstanding of case and failure of analyses. A Marketing Case Study on Nike. – Reviews the latest management developments across the globe and pinpoints practical implications from cutting‐edge research and case studies., – Scans the top 400 management publications in the world to identify the most topical issues and latest concepts. It is recommended to read guidelines before and after reading the case to understand what is asked and how the questions are to be answered. Besides, the manufacturing companies could, with help of Nike, offer educational programs to employees, provide them with microfinance loans as well as set up dispute resolution strategies to address labor violation issues (Spar and Burns 12). In addition, it also helps to avoid activities and actions that will be harmful for the company in future, including projects and strategies. Other socio culture factors and its impacts. Changes in social patterns and lifestyles. However; going against this in a capitalist economy is a great challenge. It has thrived by knowing how to stay small, focusing on core competencies, and outsourcing manufacturing. The five forces are discussed below: Vrio analysis for Nike Outsourcing case study identified the four main attributes which helps the organization to gain a competitive advantages. You can use them for inspiration, an insight into a particular topic, a handy source of reference, or even just as a template of a certain type of paper. After introduction, problem statement is defined. Print. This strategy helps the company to make any strategy that would differentiate the company from competitors, so that the organization can compete successfully in the industry. The database is updated daily, so anyone can easily find a relevant essay example. These activities would greatly help Nike to evaluate its partners and help them improve the company’s international corporate image. Nike is known for their shoes, but they have also branched out into the sports and clothing industries. Nike’s audience is versatile. "Nike Inc.'s Outsourcing and International Labor." 9-700-047 Boston, MA: Harvard Business School Publishing, 2002. The potential factors that effects bargaining power of suppliers are the following: Realistic solution should be identified that can be operated in the company, with all its constraints and opportunities. Prepared by 13 Consulting Company Giovanni Sisneros, Dane Salinas, Austin Hart, Eric Reinke, Matt Glassmeyer. IvyPanda. Written by Miles Media on April 10, 2016. What’s your deadline? Learn More. 2020. These forces refers to micro environment and the company ability to serve its customers and make a profit. After defining the problems and constraints, analysis of the case study is begin. After having a clear idea of what is defined in the case, we deliver it to the reader. By 2005, the company’s steady progress began to gain grudging respect from some of the campaign groups Spar, Debora., and Burns, Jennifer. following factors is describing the level of threat to new entrants: Barriers to entry that includes copy rights and patents. However, the new entrants will eventually cause decrease in overall industry profits. Answer the necessary questions that are related to specific needs of organization. Effect on organization due to Change in attitudes and generational shifts. Elizabeth Sexton 11/17/18 IB 303, 001 Nike Outsourcing Nike is … View Essay - Nike Outsourcing case study from IB 303 at Pennsylvania State University, World Campus. IvyPanda. growing, stagnant or declining. Initially, fast reading without taking notes and underlines should be done. ... Nike+ with Apple, etc. We can think of WACC as an average representing the expected return on all of the companies’ securities. Take a Risk Stay True Success Mylee Brown Chris Heywood Alex Miller Tarl Langham Jordon Westbroek Never Stop Running Success Remained true to their mission. Nike + outsourcing = competitive advantage. This very successful company was initially establish in September 1969, and is an american based sports clothing and shoes seller (Reuters, 2014). Therefore, it is necessary to continually review the Nike Outsourcing company’s activities and resources values. These reforms could have worked well if the company had not been waiting for about 18 years to admit its mistakes. “The Fair Labor Standards Act of 1938”. Transnational Management: Text, Cases, and Readings in Cross-Border Management. Elizabeth Sexton 11/17/18 IB 303, 001 Nike Outsourcing Nike is one company that has made headlines In the strengths, management should identify the following points exists in the organization: Following points can be identified as a threat to company: Following points should be considered when applying SWOT to the analysis: Pest analyses is a widely used tool to analyze the Political, Economic, Socio-cultural, Technological, Environmental and legal situations which can provide great and new opportunities to the company as well as these factors can also threat the company, to be dangerous in future. The decision that is being taken should be justified and viable for solving the problems. Nike must observe all the legislation that deal with production and manufacturing in order to provide fair conditions. “Nike- Case Analysis. Blog. Efficiency - enhancing practices that Nike is pursuing are as following: ... Outsourcing strategy). As such, a firm can be able to exploit opportunities, ethically, with the available resources and still earn the profits it yearns for without infringing on the human rights. Nike rapidly grew to become one of the most successful firms in sportswear across the world. Nike workers are forced to work overtime without wage. Strength of property rights and law rules. N.p., n.d. Identification of communication strategies. It optimizes the manufacturing and production processes. Nike is an Ideology based on pursuit of In addition, alternatives should be related to the problem statements and issues described in the case study. Pest analysis is very important and informative.  It is used for the purpose of identifying business opportunities and advance threat warning. The Portland, Oregon, company is known worldwide for its products, none of which it actually makes. Background Nike’s global headquarters is located in Beaverton, Oregon, USA Nike employs more than 700,000 contract workers in over 700 factories worldwide. Opportunities for Nike Outsourcing can be obtained from things such as: Change in technology and market strategies, Government policy changes that is related to the company’s field. Web. View Essay - Nike Outsourcing case study from IB 303 at Pennsylvania State University, World Campus. The strongly global outsourcing manufactures and logistic that provides Nike an efficiency global operating. External environment that is effecting organization. Sick yearss and visits to the clinic are denied or deducted from the worker’s rewards. In the effort to cut costs and maximize profits, most companies tend to ignore important aspects of social responsibility and law. Retrieved from https://ivypanda.com/essays/nike-incs-outsourcing-and-international-labor/. Warren (34) describes global marketing audit as a wide-ranging, methodical and intervallic investigation of the firm’s departments, objectives, strategies, mission, policies and activities to determine any problems or risks and opportunities. Fair labor standard act 1938 prohibits use of children for labor, advocates for safe working conditions, sets limitations on the number of work hours. The US sportswear company Nike have had a sizeable number of factories based in China for many years. "Nike Inc.'s Outsourcing and International Labor." U.S. Department Of Labor. Such actions cannot go unnoticed. The company is outsourcing all of its work without hurting the quality of itsproducts; Nike still is a market leader. Outsourcing: Nike is the world’s leader in athletic footwear and apparel. it is not possible for a company to not to take any action, therefore, the alternative of doing nothing is not viable. November 27, 2020. https://ivypanda.com/essays/nike-incs-outsourcing-and-international-labor/. There should be only one recommendation to enhance the company’s operations and its growth or solving its problems. It sells its products in over 170 countries around the world. These forces are used to measure competition intensity and profitability of an industry and market. Written by Miles Media on April 10, 2016. Nike should non merely travel its sweatshops out of kicking states. 2.0 PROS OF NIKE’S CORE MARKETING STRATEGY. To analyze the structure of a company and its corporate strategy, Porter’s five forces model is used. Nature if industry in which organization operates. This will mean production higher costs. These five forces includes three forces from horizontal competition and two forces from vertical competition. Occasionally, the firm threatened to shift its business elsewhere when confronted by the governments and labor activist claiming it was not responsible for the manufacturing firms’ work production strategies (Spar and Burns 11). In addition, the corporate America advocates for fair pay to compensate the amount of work done according to US department of labor (1-52). this describes the threat to company. Labor incidences and public relations problems that began in 1980s hit a new high in 1990s, as Nike was accused of promoting inhuman and rather unethical practices. Strong and powerful political person, his point of view on business policies and their effect on the organization. Need a custom Case Study sample written from scratch by He then made a seeping declaration to instigate series of reforms to mend the company’s image. Moreover, it is also called Internal-External Analysis. Initially, fast reading without taking notes and underlines should be done. Why Nike Should Be All In. (2020) 'Nike Inc.'s Outsourcing and International Labor'. Nike ANALYSIS The Weight Average Cost of Capital (WACC) is the firm’s cost of capital. Samples of winning scholarship essays north korea research paper outline essay questions for uc application? For Nike to ever rebuild its brand image and establish a corporate culture consistent with the best work practices including better pay, and to enable it achieve profitability, the firm will have to strictly conduct business in a manner that respects humanity and protects the environment. STEP 2: Reading The Nike Outsourcing Harvard Case Study: To have a complete understanding of the case, one should focus on case reading. It is better to start the introduction from any historical or social context. US Department of Labour 2008. Web. We will write a custom Case Study on Nike Inc.’s Outsourcing and International Labor specifically for you for only $16.05 $11/page. 15 Feb. 2013. “Strategic Management Issues.” : Nike and Outsourcing. 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