External /Internal Factor of Business

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Globalization

When Nike first started selling in the foreign market in 1972, the company had to assess the economic trends of domestic and international markets during the planning stage. This would include the impact of the global market, technological advancements, and e-business which is rapidly growing. The planning and organizing process also has to be specific to the region where a new factory was to be built. For example, resources may be more available in the Nike Americas Region than in the Europe, Middle East, and Africa (EMEA) Region; government regulations may be stricter in the Asia Pacific Region.

To be successful in the leading or motivating process, Nike would have to assess a country’s culture and economic status. For example, in Indonesia, the take-home pay averages $65 a month which does not seem like much to the U. S. worker, but this pay scale is almost double Indonesia’s minimum wage of $34 a month. These wages also come with other benefits that include overtime and holiday bonuses, social security, free health care, free schooling, free clothing, at least one free meal a day, and sometimes free housing (Jenson, 2000, 1). In these countries where most of the population lives below the poverty line, Nike jobs are quite desirable. As with any global company, Nike’s success depends on the controlling or monitoring of the progress of its manufacturing and sales of athletic footwear and athletic gear.

Technology
When one thinks of technology, computers or electronic games may come to mind. For Nike, technology refers to product technology; new innovations in footwear, apparel, and equipment. As fitness evolves, Nike’s products are planned to give consumers a competitive edge and help athletes perform better. Each part of the manufacturing process is designed to accomplishing the goal of providing the world’s best athletic gear. When Nike Air was introduced, it made a revolutionary impact on the sports world for its versatility. Beyond...
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