Environmental Sustainability Human Health -Myassignmenthelp.Com

Question: Discuss About The Environmental Sustainability Human Health? Answer: Introduction Nike, Inc. is an American footwear manufacturing company that does business worldwide. 47% of the global sports shoes market is covered by the company and it is at the top of its business. The company generated 6% more revenue in 2016 than 2015 as total amount of 32.4 billion dollars were earned from worldwide revenue. In 1964 Phil Knight and Bill Bowerman founded the Blue Ribbon Sports that transformed into Nike in 1972 (Gibson, 2012). The company effectively promotes a strategic management and marketing campaign that primarily focuses on innovating and inspiring athletes shoes (About.nike.com, 2017). The organization operates in 700 stores in 45 countries outside USA. Their marketing strategies focus on maximizing the number of buyers so they offer various ranges of products for diverse number of people of different ages and background. Though the company promotes that everyone is an athlete and their products are suitable for everyone but the price ranges mostly highlights that th e company aims for the high income groups. Reebok and Adidas are two main competitors in the footwear market that demonstrates high competition for the company (Team, 2017). Strategic Foundations Nike, Inc. is leading the global corporate market in the footwear manufacturing area through their programs that are values their service providers, stakeholders, employees and customers. Nike claims to be the biggest seller of sports footwear in the world (Kell, 2016). The company acts as competitive enough in all the necessary areas footwear competition like reliability, price, product, quality, marketing, promotion, customer- employee support and performance. The mission statement of Nike says "To bring inspiration and innovation to every athlete in the world."The mission statement echoes what the founder Bill Bowerman said If you have a body, you are an athlete. The strategic goal of the company is well reflected by their mission statement as it aims to reach out to maximum number of global consumers with their sports apparel, shoes and equipments (Brohi et al., 2016). The analysis of the mission statement highlights that the main three components of the mission statement are inn ovation, inspiration and satisfying every athletes in the world. The management leadership sets a winner mindset for all the team members through their inspirational goal that reflects the slogan Just Do It (Anegon, 2014). Company strategic management involves continuous improvement of their service through applying innovative technologies and bringing new products at regular intervals. Vision Statement The company is also careful about its corporate social responsibilities as the CRS vision highlights that Nike is working in order to develop a sustainable economy that keeps the balance among the profit, people and planet (Newell, 2015). The company highlights that in the process of achieving desired sustainable profit the consumers takes a major role. The vision statement can be broken down in three parts where the initial part focuses on the consumer importance and satisfaction, then the stress is on the sustainable economy and third part is keeping the balance in the business (Teckchandani Schultz, 2014). The company ensures that it is not just the company that benefits from the business but everyone gets the benefits as well. Strategic Managers Nike, Incs Board of Directors includes multiple internal and independent directors like Philip Knight as chairman, Mark Parker as CEO and other independent directors like Timothy Cook and John Donahoe (Investors.nike.com, 2016). There are both independent directors and management directors present in the board of directors of Nike, Inc. the combination of both kinds of director helps the company to gain internal and external experiences (Burgelman, 2015). The outside helps the company to implement experiment and encourages the management to think outside the box. In the formulation and implementation of the designed and proposed strategies the board of directors plays the most significant role. Products Nike, Inc. produces various sports foot wears, sports related lifestyle apparel and other sports equipments. The initial product was just the running shoes but now the company makes shoes, shorts, and jerseys for various sports like Cricket, Football, Basket Ball, base ball and Hockey. Few most popular products by the company are Nike 6.0, Nike Air Max, Air Jordon and many others (Store.nike.com, 2017). The brand related itself with premium performance. Nike, Inc owns various other important companies like Converse, Hurley X, Jordon, Cole Haan and Bauer Hockey they together cover a significant part of the company annual revenue. Future plan By 2020 the company aims to generate 50 billion of revenue. In last 5 years Nike, Inc has increased its sales revenue by 18 billion as it reached to 30 billion in 2015, therefore almost 4 billion sales increase in each year (Forbes.com, 2017). The company had set their goal of 36 billion revenue for the year 2017 which is about to get fulfilled as predicted by the market analysts. The management has employed Adam Sussman as their first CDO or Chief Digital Officer who the company expects that will help to increase the revenue in e-commerce by 6 billion by 2020 (GalbRaith, 2014). The company has designed various apps like Nike+ and other fuel band apps that will help them to maximize the customer satisfaction through measuring it properly. The womens apparel is another area where the company aims to grow to 11 billion within coming 4 years. PESTLE analysis of Nike The macro environment which is external to any organizational structure is evaluated and scanned through the PESTLE framework (Gillam Siriwardena, 2013). Factors like political, social, economic, technological, environmental and legal form the PESTLE framework. Political Factors For any large organization the political factors play signification role in their survival and performance. The home country of the company that is USA government has always engaged in growth oriented policies that helped the company to get benefitted from the nations market. The American Government incorporates tax arrangements that are suitable for international competitive market, stability in currency exchange and the effective low interest rates (Whitehead, 2012). The government support is ever improving and supporting the organizational infrastructure. The free trade policies are expanding as well that helps the company to utilize the opportunity well (Houlihan, 2013). Most major markets where the company operates are politically stable that helps the company to business smoothly. However as Nike manufactures and sells physical materials, the changes in manufacturing or related tax laws are capable of affecting the business. The rising political conflicts in certain countries a ffect the process of importing and exporting difficult. Economic Factors The business performance of Nike, Inc. largely depends on the economic stability of the business location. There are three aspects of the economic domain that influence the companys performance. The developed market like the economy of USA provides the company with economic stability that develops a sustainable economic opportunity for the company (Summers, 2014). The developing countries like India is growing rapidly that creates opportunity for the company financial benefits as well (Maddison, 2013). However the Chinese economys fluctuation proves the company to become a threat for the company (Lu, Liu Rahman, 2017). The company utilizes the ever growing consumer demand through establishing brand equity. The local labors are given financial opportunities in underdeveloped nations by providing job opportunities and maintaining corporate social responsibilities (Whitehead, 2012). Social factors The world wide social awareness regarding health consciousness ensures the demand for the sports foot wears are ever increasing (Tilman Clark, 2014). The public wealth is expanding in the developing countries which are creating great opportunities for the company. In the Asia Pacific regions the company has exported most of its manufacturing. The use of labors with minimum wages including children affected the company reputation and CSR (Plambeck Taylor, 2015). To resolve and minimize such issues the company has engaged itself in greater transparency in keeping the manufacturing and human resource records and provides certain facilities to the manufacturers of certain locations. Also the company had published Memorandum of Understanding that clarifies its objectives and conducts to its subcontractors and suppliers (Child, Rodrigues Tse, 2012). In the modern globalized era of internet any wrong doing or ethical misconduct is likely to reach global public rapidly. Technological factors Nike, Inc. is incorporating innovative technologies in their marketing activities in order to ensure the sustainability of the good performance. The website like Nike iD assist the consumers with the opportunity to compare the foot wears at various prices and help them to choose the most suitable one (Yu Park, 2014). The website has proved to be the top personalization website in the sports wear industry (Nike.com, 2017). As the world has transformed itself into a more digital based system so the online payment system via mobile phones, help the company to achieve more customers (Purkayastha Rao, 2015). The digitalization enhances the work speed but also capable of reducing the employment and deteriorating the organizational work force. Legal aspects In countries like USA or UK the legislative framework is common for the whole nation so the organization has to face less intervention from the government in their organizational activities. However in countries like France or Germany the states operate in code based legal systems so the organization there has to consider interests of wider stakeholders (Legendre Coderre, 2012). The health-safety regulations and the consumer laws are expanding in the developing countries that are creating better opportunity for the company to perform better in the developing countries. The legal challenges from the past help the company to analyze certain situation and take precaution from any legal damages (Jennings, 2015). Environmental factors Most European countries and USA and in countries like Japan the environmental consciousness is really high. Nike, Inc. appointed multiple sustainability champions who are responsible to monitor the elimination of wastes and carbon emission in their projects in the home country and in the overseas (Kaplan Montiel, 2016). Most countries where the company is operating are improving and expanding their environmental laws that create huge opportunities for Nike. The climate changes also affect the lifestyle of the people that is potential to increase the demand of the companys products. SWOT Analysis of Nike, Inc. Nike has always proved to be a highly competitive organization with their innovative management and marketing strategies. The just do it slogan is reflects their strong attitude towards the business for maximizing the profit (About.nike.com, 2017). The company does not own any manufacturing unit as it outsource all its manufacturing activities overseas that helps them to gain maximum human and material resources at the cheapest price. By saving the high labor cost the management focuses more on the research and development for innovating and improving new services. The brand of Nike is globally recognized which proves to be a great strength for the company. The consumers trust easily on the brand so do the stakeholders. The resilience and quality of the Nike products is well known to the athletes and to the common man. When its competitors suffer from the market fragmentation the Unique Selling Proposition of the company helps it to race ahead of its competitors. Weakness The company majorly depends on the footwear this might prove to be problematic for the companies as dependence on limited service makes the options for revenue generation are limited. The outsourcing of manufacturing is strength for the company, but Nike, Inc has often being criticized because of its labor management in foreign countries (Baldassarre Campo, 2014). The sweatshops or the sweat labors have criticized by the global media that affected the companies brand image. The company has not included retailers that are exclusive as their business strategy but the retailers play major role in the business so the exclusivity might get sacrificed. The products are often been criticized as too premium or expensive. Opportunities In the emerging markets of India and China Nike is seeing greatest opportunity to expand its business. The consumers in such developing countries are in billions of number who are adapting western lifestyle increasingly (Sun, DAlessandro Johnson, 2014). This provides the company great platform to expand their business. The company is also expanding their business in various other products going beyond just the foot wear and producing other diverse products. The company engages in continuous modification of the existing designs that also creates great opportunity for business expansion. The affordable price products are being offered by the company though in limited numbers which bringing newer consumers to the company. Threats The trade laws and practices in the international market greatly influence Nikes international business. The international trade laws and regulations are subject to change so the changes can prove to be threats for the company. The unethical business practices affected the companys reputation and brand and as the company performs on a global scale the similar issues can arise. The competitors like Reebok or Adidas are also capturing the global market rapidly that is becoming bigger threat for the company. Suppliers bargaining power The suppliers bargaining power in the case Of Nike is low. It operates in more than forty five countries in more than 700 stores but the individual suppliers are not strong enough compared to the company. That reduces the challenges from the supplier for the company. Nikes RSL or the restricted substance list and the codes and conducts have to b obliged by the suppliers. Buyers bargaining power Buyers bargaining power is moderate for the company. The consumers switching cost is low as there are other influential companies like Adidas and Reebok or Puma but there are other local brands as well. However the quality of the companys product is well known to global consumers. Threat of substitute Threat of substitute is high for Nike. There are large numbers of competitive brands in the market. There are competitors like Fila, Puma, and Converse, Under Armour, New Balance, ASICS, Li Ning and K-Swiss. Except the main competitors Nike is experiencing challenges from substitute sports footwear that are cheaper and gaining popularity. Threat of new entrants Threat of new entrants for the company is low to moderate. The company is quite influential in the global market however there are still requirements that are yet to be fulfilled. Te competitors might take advantage of it. However the supply chain management requires huge investment that is in favor of the company. For a new entry it is quite difficult to create such level of brand easily. Competition Rivalry Competition rivalry is strong for Nike in both home and international market. The other two top sports footwear companies that are present in the market are Adidas and Reebok (Team 2017). Adidas earned revenue of more than 19 billion where Reebok earned 3 billion (Adidas-group.com 2017). Though the strong rivals are in fewer numbers but they are expanding their business fast as well. Struggling Apparel Business The apparel industry in this case the apparel related to sports or footwear is struggling in global market. The consumers in most countries do not want to spend much money on purchasing apparels. The apparel stores of Nike are suffering the challenges as well. A recent report by Morgan Stanely demonstrated that the growth in the apparel stores will decrease by -5% (Botter, 2017). Losing demand for certain products The company has created its brand over the years mostly based on certain high quality products like Nike Air Jordon shoes. However the demand for the most popular products are getting decreased day by day as the style is considered to be out of style and the newer substitutes are failing to match their standard. Like the apparels for basket ball is alarmingly losing its popularity. Woman products market The woman products are facing more challenges as many companies only produce these products focusing more on the better quality and cheaper price. The companies like Lululemon or Under Armour are dominating the global market in most of the global market in this domain other niche brands like Bandier or Sweatbetty promotes more fun than the competition that Nike products promote (Schlossberg Lutz, 2017). Conclusion The money that the company spends in the signature footwear must be balanced with the money that is spend in the non footwear products as the company is clearly struggling in keeping the same standard in those products. Another good strategy could be manufacturing casual footwear along with the sports foot wear. Building professional relationship Nike should build a personal and professional relationship with the world known influential athletes that will bring more customer loyalty and new consumers as most consumers idolize their favorite athletes. Internet and social media The internet and social media platform could be used more effectively by the company to establish consumer relationship and retain customer sustainability. The company can implement certain innovative technologies where dedicated consumers can design their own foot wears online and the company should evaluate them and consider the most feasible one. Remuneration and rewards The employee satisfaction could be achieved through remuneration and rewards for the deserving employees. The company must monitor and evaluate their organizatio0nal management practice to eliminate any ethical misconduct within the organizational structure. The company is leading the global market in the footwear business if the company resolves the issues by implementing discussed strategies it will effectively maintain its competitive edge in the global market with the assurance of improved business performance. Reference Adidas-group.com. (2017).Adidas with record sales and earnings in 2016. [online] Available at: https://www.adidas-group.com/en/media/news-archive/press-releases/2017/adidas-record-sales-and-earnings-2016/ [Accessed 03 Oct. 2017]. Anegon, I. (2014). Preface: In 2013 gene therapy is a Nike; for 2014, just do it!.Current gene therapy,14(1), 1-1. Baldassarre, F., Campo, R. (2014). 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