General Environment Analysis
The general environment is composed of dimensions in the broader society that influence an industry and the firms within it. For Nike is extremely valuable to analyze general environment factors that affect that affect us because through that we be able to find solutions to those problems. General environment is described as all the conditions outside the organization and the industry that form a background context for the managerial decision making. This out lay of conditions is widely dispersed around the globe and affects organizations indirectly. For our study we will analyze some of the typical external environment issues such as demographics, economic conditions, and socio- cultural conditions, as well as political, legal and global conditions. Demographics
The population of the world has been increasing on a rate of 1.10% for the lasts years. Up to date the human population of the planet is estimated to now have passed 6 billion people. The greatest growth of rate was 2.19% during 1963 after that the rate starts going down and it is expected to be less than 1% by 2020 and .5% by 2050 (Shah, 2011). According to the statistics the world populations will increase another 50% by 2042 leading to a 9 billion people in world. After 2100 the United Nations projections say that the population will stabilize near to 10 billion people (Shah, 2011). It is vital to ensure women's rights can be upheld, and realizing that women play a crucial role in the development of society, there are many underlying issues which lead to conflict and problems can be tackled more effectively. Better care, education and rights for women mean that children should also benefit. Thus in every region of the world UNFPA is working to promote women’s rights and end discrimination against them (Shah, 2011). As the trafficking of women is increasing is extremely important for world leaders to effectively address these issues against women. The population of the world is growing, however, the there are great disparities of wealth around the globe. Data informs us that 1.2 billion people live with less that $1 a day and 800 million going to bed hungry every day (Shah, 2011). Around the globe there are 3 billion people that do not have the opportunity to fulfill their very basic needs. According to statistics 20% of the world's people in the highest-income countries account for 86% of total private consumption expenditures while the poorest 20% a minuscule 1.3%; all these statistics are according to the United Nations Development (Shah, 2011). Economic conditions:
Countries around the world invest millions and even billions of dollars in helping people with low resources to have the same outcomes that other people have. The problem is that creating same outcomes for everyone will hurt more the society than what it help everyone. For example the European Union and its members spend about 40 billion Euros annually on assistance to developing countries (Shah, 2011). But they spend about 60 billion Euros each year on agricultural subsidies (Shah, 2011). Which hurt the developing countries more than what it really help them, because people will do better it they have the opportunity to sell their good freely in the world market. During 2004 the world output growth was the highest in three decades, at over 5 percent. Then the year 2005 projected China to surpass European Union and the United States in a few years as well India is expected to better Japan during the next year or two, and it will exceed the Euro area in 20 years (Shah, 2011). All these changes help to construct a statistic that projects that the average of GDP per capita will grow 3% per year on the non OECD area while in the OECD area will be only 1.7% per year (Shah, 2011). With the global inflation growing up slightly, however it has remained moderate, despite the hike in oil prices. Some industrialize countries have been able to deal with it and...
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