Nike Going International

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Matthew Selle
Professor Li
Global Business Project
Spring 2012
Nike
We decided to choose Nike as our company for this global business project. Nike is ranked 135 in the fortune 500-company list. Nike is the number one sports shoe company in the United States. In the US Nike dominates 35 percent of the sports shoe market, it also holds one of the most recognizable logos in the world, the Nike Swoosh. The majority of Nikes customers, over 50% purchase their merchandise for things other than sporting activities. The mission statement is, “To bring inspiration and innovation to every athlete in the world.” The three countries we looked into for expanding our company internationally were The United Kingdom, Brazil, and Germany. These three countries are all among the top ten in the FDI confidence index, which provides a unique look at the present and future prospects for international investment flows. In addition it assesses the impact of political, economic, and regulatory changes on the FDI intentions and preferences of the leaders of top companies around the world.

One of the main reasons we chose Brazil were for its Gross Domestic Product (GDP) of $2,282 trillion (CIA World Factbook 2011 estimate), which is the eighth-highest in the world. There are over 200 million consumers our small business can reach in this South American country, which is more than five times as many that live in the state of California alone. However their pure scale and size are not the only reasons to consider this country; exponential growth is another reason. Similar to China, Brazil has traditionally relied on its domestic economy, but that is recently changing and at a fast rate. Brazil is currently the eighth-largest economy in the world, and they are expected to grow to be the fifth largest in just a few decades. Even during the worst of the global meltdown in the past two years, Brazil’s domestic performance and output was still very solid. This goes to show that the country has plenty of room to expand its export market. Brazil see the changes that are happening in China and India, and it seems they fully intend to stay on pace with their international growth. Another reason is the emerging market opportunities. Last May Brazil and the U.S. announced an innovation-focused agenda that will deepen commercial relations on five core themes. These include- innovation and green technology; trade facilitation and business development; intellectual property cooperation; standards and metrology; services and small/med-size enterprises. A few additional benefits to invest in Brazil are stable economic/social growth and environmental sustainability, cultural and natural wealth, vast and diverse population, democratic and institutional stability, foreign trade opening up markets and multilateralism. This all goes to show how fast paced Brazil is moving and looks like a great place to invest.

Germanys Gross Domestic Product is $3,085 trillion (CIA World Factbook 2011 estimate) that is the sixth-highest in the world. According to their central banks this is to rise by 0.6% in 2012. Germany is in a great strategic position, at the heart of Europe and is also a key player in both the EU and NATO. After reading much about the German businesspeople it is common that they will usually prioritize tasks over relationships so it can be said the German workforce tends to be very committed, focused and professional. It is shown in the exceedingly high standard of technology German Flagship Company’s demonstrate. When doing business here you and your organization can rely on dealing with very highly skilled individuals that will give their best to ensure all objectives and deadlines are met on time. Another great thing about doing business in Germany is that no matter the position of your German counterpart within the company, he or she will most likely be highly proficient in English. Having a universal language helps to cut out the cross-cultural...
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