Political factors has to do with politics of the day prevailing in country. It is generally assumed that if political temperatures are down; businesses tend to flourish and the vice versa is also correct. In this particular case, it can be said that it is neutral and thus not expected to cause much rubble in the new companies operations. However, future political challenges cannot be ruled out. Nike being number one sportswear in the USA, its profits, turnovers, marketing sponsor ships and advertising surmount all other sports wear companies. This company is not only positioned as a market leader but also leaders in the industry labor practices initiatives. Although Nike had suffered bad publicity over the last decade, for various reasons, it is best placed in the political climate as an ethical company. This gives it a good public reputation, which keeps on strengthening the brand name. neutrality of USA political temperatures as well as Nikes commitment to industry leading transparency in matters related to social responsibility made the company to be named as the top US company and one of the top ten companies in the world in the current sustainability global reports program. Nike Company's external environment had a lot of political pressure. The company suffered entry mode regulations, intellectual property rights were infringed on when tiger took it to court. The company did not face any issues with taxation laws in California. When the company went public, many people bought share in it helping it to grow and compete favorably with Adidas and tiger brands. The major issue which affected the reputation of Nike Company is employee wages and benefits. Employee was paid low wages and benefits. Furthermore, the salary issues led to change of management regulatory the factor which affected the organization competitiveness in the market (Kotler, 1998).
The increased demand for the products in the sporting clothing...
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