March 8, 2011
ENVIRONMENTAL FACTORS 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.
Nike’s influence on global economic interdependence is very great. Nike has several countries that they not only market to but outsource work to such as a company called Silver Star in the country Pakistan who has been producing their soccer balls since mid 2007 (Nike Biz, 2010). Because Nike does a great amount of global production business they have a very influential effect on trade practices and agreements as it pertains to their business deals. For example Nike has created the Workers in Factories “Freedom Association” (Nike Biz, 2010). This association is committed to bringing all trade practices and agreements up to human standards for all its workers in the factories who are committed to producing Nike’s products across the globe.
Demographics and physical infrastructure is very important to Nike. Being that Nike has become such a global phenomenon their demographics are very wide spread, however this organization approaches that big obstacle by simply stating that “If you have a body you are an athlete” (Nike Biz, 2010). This simple statement made by Nike has spread across all demographics which lead to the “football” players in Brazil to the runners in Kenya, all the way down to the somewhat...