Preview

Corporation and Multinational Companies

Satisfactory Essays
Open Document
Open Document
846 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Corporation and Multinational Companies
There are many advantages of Nike being a multinational company such as multinational products and services provide the best possible standards. Because in a foreign country, Since customers are willing to spend their money on the best products, the multinational companies need to keep the strong competitors at bay so they must to produce really high standard goods. Secondly, multinational corporations play a big role in creating employment in the foreign countries. Because of their many shops , they employ local people in those countries to work for the factories Even when using methods such as sweat shops and childlabour its still especially important in developing countries where unemployment is high. Thirdly, the growth of multinational companies in those countries will increase level of industrial and economic development in the long run helping both Nike and the countrie they are situated in.
There are many advantages of Nike being a multinational company such as multinational products and services provide the best possible standards. Because in a foreign country, Since customers are willing to spend their money on the best products, the multinational companies need to keep the strong competitors at bay so they must to produce really high standard goods. Secondly, multinational corporations play a big role in creating employment in the foreign countries. Because of their many shops , they employ local people in those countries to work for the factories Even when using methods such as sweat shops and childlabour its still especially important in developing countries where unemployment is high. Thirdly, the growth of multinational companies in those countries will increase level of industrial and economic development in the long run helping both Nike and the countrie they are situated in.
There are many advantages of Nike being a multinational company such as multinational products and services provide the best possible standards. Because in a foreign

You May Also Find These Documents Helpful

  • Good Essays

    Nike Swot Analysis Essay

    • 482 Words
    • 2 Pages

    Emerging Markets: While Nike already has a presence in many emerging markets, we believe that there is still significant growth potential there. China, Brazil, and India are a few of the fast growing markets that can lead to a potential increase in earnings. While China made up 9% of 2014 revenues, the company believes this figure will rise as it continues to enhance its brand image there. Recently, Nike has been able to better appeal to its Chinese customers by marketing what they would prefer. We believe that Nike would be able to increase its share of the global market by continuing to grow its base in these regions. These regions have been reporting higher…

    • 482 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Nike makes a great product with very low costs, they have the best athletes in the world wearing their gear, and they have Phil Knight, who was just inducted into the advertising hall of fame, as an advertising guru. These three factors make Nike almost impossible to compete with. The cost advantage of moving the factories overseas is exponential and provided a pathway for the corporation to enter new emerging markets. The moving of these plants may seem unethical to some people but the decision was made for the best interest of the business. No one can be a winner when the company has lost its competitiveness in the industry (Etienne, and Lewis,…

    • 1081 Words
    • 5 Pages
    Good Essays
  • Good Essays

    Nike Argumentative Essay

    • 690 Words
    • 3 Pages

    Nike is a global leader in the world of athletic sports apparel. They have become this by not limiting what defines an athlete. According to their mission statement Nike believes that "as long as you have a body you are an athlete." I feel they have always been on the forefront of athletic apparel because of this theory. They were the first to market their products to all people and not just athletes or non-athletes. As you can see in their line of footwear you are able to purchase Nike track shoes, basketball shoes, cleats, dress shoes, and work boots. They are able to do this by not only marketing these products through Nike but also by acquiring other companies such as Cole Haan, Converse, Hurley and Bauer. With all these entities Nike still has to come up with ways to stay on top of the competition in America, but…

    • 690 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Nike sells to approximately 140 countries around the world and currently boasts an approximate revenue of $8,776,900,000 These revenues are based on product sales of shoes, clothing, and other sports products. Advertising expenditures currently total $223,300,000 and include the following allocations: $64,975,000 for network television, $31,447,000 for consumer magazines, $7,700,000 for spot television, $343,000 for newspapers, $134,000 for outdoor postings, and $36,000 for radio. (Reed Elsevier) Most footwear products are made outside of USA. However apparel products are produced in the USA and abroad. (www.statcan.ca) In this article we will try to explore the interaction between the company Nike and its external business environment, as well as the internal strengths and weaknesses of the company. We will attempt to discover some of the significant changes and events in the external environment that have occurred in the last 5 years and have directly impacted Nike. We will describe how the company adapted and responded to these changes and what the effects of these events were. Also we will identify and describe some of Nike's internal strengths and weaknesses.…

    • 4587 Words
    • 12 Pages
    Powerful Essays
  • Good Essays

    Plan Paper

    • 463 Words
    • 2 Pages

    Strengths: global brand recognition, competitive prices, community involvement, celebrity endorsed, and a large product line. Nike is known for its state of the art equipment as well as its ever expanding product line. This is a huge part of their increasing expansion and revenue. When their product is seen everywhere, people want their own.…

    • 463 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Now it has become a leader in the global economy. Nike has helped the economy by employing more than 500,000 people, worldwide. The company has contributed in finding a positive policy for minimum wage. Minimum wage laws usually don't help who they're originally set out to. Now with Nikes' minimum age requirements it helps those it was naturally set up for. The minimum age requirement also prevents teenagers from dropping out and taking on full time jobs at Nike.…

    • 611 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Nike is the world’s single largest producer of sporting wear, clothing, shoes and accessories. An Oregon based company founded in 1972 by Phillip H. Knight and William J. Bowerman. Nike’s broad range of products is the key to it’s success, it’s range includes Nike Skateboarding, Nike Golf, Nike Pro, Nike +, Nike Air Jordan and owns other big names such as surf brand Hurley; shoe manufacturer Cole Haan; and two large sports companies – Converse and Umbro. Having such huge sponsorship contracts with many of the world’s biggest athletes and sports teams, these huge profiles are simply another outlet for Nike to promote their products. Nike currently employs over 31,000 people across more than 30 countries, Nike’s revenue for 2008 was a staggering $184 billion which is more than many small country’s GDP. However since this huge multi-national corporation has moved nearly all of it’s production to cheaper Asian countries there has been much concern brought forth about the legality and ethics of the company’s operations in these countries, many claiming exploitation of labour and human rights abuses are taking place.…

    • 1034 Words
    • 5 Pages
    Good Essays
  • Good Essays

    Nike being one of the worlds largest shoe manufacturing companies has turned to cheap labour in order to reduce costs and maximise profits to remain a significant competitor in the shoe industry. Nike has outsourced their manufacturing in developing countries such as China and Vietnam where the working standards are wages are extremely poor. These manufacturing plants are better known as sweat shops and Nike has been criticized for these actions however the company still remains successful despite these immoral…

    • 1145 Words
    • 5 Pages
    Good Essays
  • Good Essays

    Nike Debate

    • 1230 Words
    • 5 Pages

    Yes, Nike is not only responsible but also accountable for the working conditions of foreign countries that it does not own. Nike should realize that it is a Global Organization and working globally does not only mean that taking advantage of low cost destination but also taking responsibility of the contractors/employees working in other countries. For example: Pepsi was recently in the news for allegations of having pesticides in the cold drink in India. Pepsi ensured that it has same standard of water purification across the world and not just meeting standards in the Indian Market. Similarly, Pepsi should realize that while they are getting cheap labor in low-cost destinations but at the same time they need to be socially responsible to ensure that the workers get minimum wages and work in conditions that are acceptable in respective countries.…

    • 1230 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    Nike’s company strategy is a clever one. One that founder Phil Knight thought of while still in school at Stanford. Instead of paying Americans to put together Nike’s shoes, Knight thought that it would be a better idea to take manufacturing plants overseas to places where labor is much cheaper than in the U.S., places like Taiwan and South Korea. With 86% of its products being produced in one of those two countries and Nike employing a large number of people who lived there, the countries became richer and richer until Knight decided prices were too high to manufacture there anymore (Hitting the Wall, 3). He decided to move the factories to places in China like Indonesia where countries were practically begging for foreign investment. Production was going well until the early 1990s when labor strikes rose to 112 in 1991 and news began to leak out about the terrible conditions Nike’s labor force was working in. The company was using underage workers and underpaying them to the point that a family couldn’t even survive off of the wages made at a Nike factory. From this point, Nike’s sales began to slip and returned into the media’s spotlight numerous times in the 90s for their bad labor practices.…

    • 1820 Words
    • 8 Pages
    Powerful Essays
  • Powerful Essays

    Nike: the Sweatshop Debate

    • 1480 Words
    • 6 Pages

    The purpose and intent of this paper is to describe the legal, cultural, and ethical challenges that face the Nike Corporation in their global business ventures. This paper will also touch on the roles of the host government and countries where Nike manufactures their products and the author will summarize the strategic and operational challenges that Nike managers face in globalization of the Nike product.…

    • 1480 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    Brazil is rapidly privatizing many industries and its attitude toward a free market economy has changed significantly in the past 10 years. However, it seems the country still has a perception that often times associates capitalism with “greedy” developed countries. If the opinion of Brazil’s president is a reflection of how some of its people feel this is certainly the case. In 2008, Brazil’s president lambasted US corporations and the US government for “infecting his nation with problems that were not of its making (The New York Times, 2008).”…

    • 848 Words
    • 4 Pages
    Good Essays
  • Best Essays

    A multinational corporation is a huge company that has divisions in multiple countries around the world. Some recognizable companies are Nike, Coca-Cola, and Marbolo. The divisions of these companies are only subject to the laws of where those divisions are held, so if a company expands into a country, it only has to follow the rules of that certain country. Most companies plant their factories in countries in South East Asia, the Middle East, and Africa. Many of these countries are undeveloped, so there is less environmental restriction. These famous brands…

    • 2192 Words
    • 6 Pages
    Best Essays
  • Good Essays

    Nike Essay

    • 1227 Words
    • 5 Pages

    This business report will examine NIKE incorporated. A brief history will be provided followed by a detailed analysis of the components of globalisation, including topics such as:…

    • 1227 Words
    • 5 Pages
    Good Essays
  • Satisfactory Essays

    Nike Inc Pest Analysis

    • 1103 Words
    • 5 Pages

    In these main countries that Nike sell products in there is stable political environments where there is a democracy meaning that the governments in this countries have been elected by the general public in that particular country. The majority of these countries home and export markets have been boosted with the inclusion of the euro meaning that it is easier to trade between countries. This is an advantage to Nike, as they do not need to be influenced by exchange rates when exporting goods from one country to the other.…

    • 1103 Words
    • 5 Pages
    Satisfactory Essays