Nike and the External Environment
Nike And Its Environment
Training shoes are global product. And there are three companies dominate sales of training shoes worldwide: US, Nike and Reebok.
In this report we will talk just about Nike company,
Nike is the biggest shoe company in the world and that has created a great influence, which could effect and be affected by its surrounding environment. This large force of control over the market is one of the environmental effects.
Managing the book emphasized that; “All organizations are affected differently by their external environment.” It has gathered the environmental affects under five factors: - Communication technology - Regulation and deregulation - Globalization - Competition - Working practices The outcome of these elements can directly or indirectly be measured in the economy, the society, the state and the system which are so called “Environment” Nike is a global company operating world wide as being mentioned by PHILIP H. KNIGHT the Chairman and CEO of Nike when he once said, “Global citizenship is important to our company and to our consumer. The performance of Nike and every other global company in the 21st century will be measured as much by our impact on quality of life as it is by revenue growth and profit margins.” To gratify out ambition in answering the above-mentioned question to its highest extend we need to start talking about each environmental factors and their effects.
1: STEP Analysis:
Relevant factors from Nikes perspective might include:
The values and expectations of (a particular) society.
Its social divisions, particularly in terms of the distribution of wealth.
Its degree of freedom, especially as regards freedom of information.
The level of education would be important both for the recruitment of suitable local staff (if the company has an office there) and also because literacy is a basic requirement for computer-usage.
The changing nature of technology in the world at any given time.
Preparedness of local rivals.
Crucially, the national/international infrastructure of cables, telephone lines, etc.
Economic growth (nationally and internationally).