NIKE Case Study
University of Phoenix
Professor Michael Ladah
The Nike Corporation is the world’s leading supplier of athletic shoes and apparel. The company takes its name from the Greek goddess of victory, and has fulfilled its reputation of being victorious in the sporting good industry for over a decade. Nike has amassed skyrocketing production numbers through independently contracting companies outside of the United States to manufacture product “Nike sold about 280 million sneakers, cross-trainers and running shoes last year. Doubling manufacturing workers' wages in China would cost Nike, which last year had revenues of almost $14 billion a year” (Dreier, 2007) Millions of people worldwide have marveled at the success of the company. Millions of Americans have partaken purchasing product made by Nike. Nike offers a quality brand that is endorsed by celebrities and idol athletes, but millions of people are unaware of how Nikes involvement with outsourcing to third world countries in have created great controversy with labor unions, and more importantly employees in these countries.” Today’s global economy is characterized by rapid and at times wrenching changes, driven by competition, new technologies, and a continuing search for cheaper resources and markets” (Thinking Critically, 2008). Nike must bear in mind that along with the importance of production and distribution of goods and services they are still dealing with human beings and institutions.
Nike has manufacturing factories in Indonesia, China, and Vietnam. Nike does not have full ownership of these factories they are subcontracted out to independent businesses that then employ local citizens. Nike still carries omnipotent power in regulating how the companies are run in these countries. Globalization is a form of expansion for companies which can provide positive incentives for the local community like providing jobs and establishing...
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