Nike in its creative way has moved athletic shoes from utilitarian necessities into glamorous accessories and in the process is constantly reinventing all parts of the shoe including the heel (Heizer, J. and Render, B. 2010). At first, Nike didn't pay attention to the criticism because it was coming from a small group of activists, but later, the societal pressure became so high that Nike was forced to take some measures to calm down the public. This paper examines the various difficulties and complexities Nike face as they seek to balance both company performance and good corporate citizenship in today’s global world.
Assignment 4: Nike Case Study
Based in Beaverton, Oregon, Nike Inc is one of the US’s most well known corporations and almost a cultural icon. Founded by Phil Knight and the late University of Oregon Track coach Bill Bowerman, Nike has grown from a maker of shoes for track-and-field athletes into the world's leading purveyor of sportswear and sneakers – for everyone from major leaguers to wannabes. And businesswise, it has been an unqualified success story. Selling athletic shoes, sportswear, and some athletic accessories Nike’s revenues increased from $ 60,000 in 1972 to about $ 10.5 billion (check) in fiscal year ended May 2003. It employs (through subcontractors) over 550000 workers in 51 different countries, and controls over 40% of the US athletic sportswear market. In some small countries, NIKE is the largest exporter, producer, and employer (it accounted for over 7% of Vietnamese GDP in the 1990s.
By 1991, Nike’s subcontractors were well established in Indonesia, where the daily minimum wage was about $ 100 per day (comparable to $ 24.50) and a US daily wage of about $ 64 (8 hour day). One the one hand, NIKE would shave costs by outsourcing all manufacturing. It's a scary news for investors as its driven by consumer credit, not a good topic these past few years (Welch, J. n.d.). ...