JILIOW ASSIGNMENT

Assignment: Organization & Business Management Page 1
Student ID :CGSSO00019731
Student Name : Ali Ibrahim Jili'ow
Course Code : BMOM5203
Course Name : Organization & Business Management
Program : Master of Business Administration (MBA)
Semester : Two
Facilitator : Dr. Amina Sheik Omar
Date due : 30/12/2015
Submission date : 29/12/2015

TABLE OF CONTENTS
PART ONE: NIKE CORPORATION INC
Introduction----------------------------------------------------------------------------------------------------4
Background ----------------------------------------------------------------------------------------------------4
Founders for Nike---------------------------------------------------------------------------------------------4
Vision and mission overview--------------------------------------------------------------------------------4
What is Mission-----------------------------------------------------------------------------------------------5
Nike's Mission ------------------------------------------------------------------------------------------------5
Nike's Vision --------------------------------------------------------------------------------------------------5
Nike's goal ----------------------------------------------------------------------------------------------------5
Importance of mission statement ---------------------------------------------------------------------------5
Benefits of mission statement -------------------------------------------------------------------------------5
Objectives ------------------------------------------------------------------------------------------------------6
Environmental analysis for Nike ---------------------------------------------------------------------------6
What are the key laws and regulations under which the company it operates? ----------------------7
How the state of the economy does influence Nike's product? -----------------------------------------7
What new technology strongly effect for Nike? ----------------------------------------------------------8
What changes in a population may affect the company's customer base? ---------------------------8
How does the company's relationship with the supplier affect its profitability? --------------------8
What companies compete with the company you select? ----------------------------------------------8
Competitive analysis for Nike ------------------------------------------------------------------------------9
SWOT Analysis for Nike------------- -----------------------------------------------------------------------9
Nike's strategy -------------------------------------------------------------------------------------------------9
Conclusion -----------------------------------------------------------------------------------------------------9

PART TWO: CORPORATE SOCIAL RESPONSIBILITY
Introduction --------------------------------------------------------------------------------------------------11
Background --------------------------------------------------------------------------------------------------11
Theory of corporate social responsibility ----------------------------------------------------------------11
What is corporate social responsibility ---------------------------------------------------------------- 11
Defination of Corporate Social Responsibility ----------------------------------------------------------11
Discussions abour corporate social responsibility ----------------------------------------------------- 12
Advocates of Corporate Social Responsibility --------------------------------------------------------13
Opponents 0f CSR ------------------------------------------------------------------------------------------14
Advantages of CSR------------------------------------------------------------------------------------------15
Disadvantages of CSR --------------------------------------------------------------------------------------16
Conclusion ---------------------------------------------------------------------------------------------------16
References ----------------------------------------------------------------------------------------------------17
Appendix A : Some of the Nike's products------------------------------------------------------------19

PART ONE: NIKE CORPORATION INC
Introduction
Sporting industry has been active and contest for the twenty first century, sporting activities are
taking place across the world wide, without any obstacles and limitations. Sports became now
days a universal language. However in this assignment I shall try to highlight NiKE INC. it's a
popular company in Sports industry that produces, designs, makes for athletic clothes and shoes,
the assignments will highlight the background of the company, mission and vision statement of
the company, the company's goals, market share, target customers, major competitors, SWOT
analysis of the company, environmental and legal issues, challenges and its strategy.
Background
Most competitive sports and Fitness Corporation on the earth is Nike now. Its headquarters is in
Beaverton, Oregon. The Pacific Northwest is Nike's place of origin. It has expanded their
horizons to every corner of the globe. Nike's labour forces estimated approximately 24,300
people. Nike operates on six continents. It employs suppliers, shippers, retailers and service
providers amounting to a total workforce of close to 1 million people.
Founders for Nike
Earlier, Nike was established as an importer of Japanese shoes in 1962, the founders, Bill
Bowerman and Phil Knight worked as a partnership under the name, Blue Ribbon Sports.
However Nike holds a global market share of approximately 37 percent (answers.com).
In 1958, Phil Knight, a business major at the University of Oregon, and a miler on the track
Team, shared with his coach, Bill Bowerman, dissatisfaction with the clumsiness of American
running shoes. They formed a company in 1964 to market a lighter and more comfortable shoe
designed by Bowerman. In 1968, this company became NIKE, Inc. named for the Greek goddess
of Victory.
Vision and Mission Overview
Vision Statement
Vision Statement is about what an organization eventually wants to achieve; it captures the
company‟s objective. Vision is a representation of what the firm wants to be and, in broad terms,
what it wants to finally achieve. Therefore vision statement points the firm in the direction of
where it would eventually like to be in the years to come. h (Michael A. Hitt, 2009)

Mission statement
Mission statement is a explanation of what an organization actually does, the products and
services it plans to provide, and the markets in which it will compete (Rotheaermel, 2015)
Vision statements reflect a firm‟s values and aspirations and are intended to capture the heart and
mind of each employee and, hopefully, many of its other stakeholders. A firm‟s vision tends to
be enduring while its mission can change in light of changing environmental conditions.
A vision statement tends to be relatively short and concise, making it easily remembered
(Michael A. Hitt, 2009)
1a. Nike's Mission Statement
Nine‟s mission statement is to bring inspiration and innovation to every athlete in the world
1b. Nike's Vision
Vision: To be world's leader in athletic wear
1c. Nike's Goal
Nike's goal is to bring inspiration and innovation to every athlete in the world.
Nike's long term goals
Nike's long term goals will be
1). Eliminating the concept of waste in our product design, use of materials, energy, and any
resource that cannot be readily recycled, renewed or reabsorbed back into nature.
2) Eliminating all substances that are known or suspected to be harmful to human health or the
health of biological or ecological systems.
1d.Importance of mission statement
 To ensure unanimity of purpose within the organization
 To provide basis or standards for allocating organizational resources
 T o establish general tone or organizational climate
 To serve as vocal point for individuals to identify with in the organizations purpose
 To facilitate the translation of objectives
 To specify organizational purpose
1e. Benefits vision Statement
 A vision might provide a direction for the company for the next five to 10 years,
 transparency of purpose & It provides direction
 It captures the company‟s aspiration.

 provide sense of collective prospect & Settles diverse view points
 encourage shared expectations of workers & managers
 Projects ordered & significance support
1F. Goals
Nike's goal is its final target is pursuits to achieve, how ever having a goal is very essential
because without a goal the company may not move any direction.
Nike’s objectives
Provide an environment in which develops people to maximize their contribution to Nike.
Identify focused consumer segment opportunities Provide quality and innovative services and
products internally and externally
b. Environmental analysis for Nike
Nike operates Worldwide, its world's first class in athletic wear. Nike like other companies on
this planet doesn't operate in a vacuum; instead it operates an environment where by there has
been challenges as well as opportunities.
B1.Industry: the industry that Nike competes was growing over that past generation and actually
it is still growing with its new challenges, if we look back the profile of shoe industry it seems
that it has faced a dramatic evolution over the last fifty years, however the industry faces many
challenges from those who produce identical products.
B2. Competitive analysis
Sporty industry has been contesting over the last few decades; this contest reached its
expansion after 1990s. The main goals for Nike's competitors are to put her out of the market and
to generate much profit. However the company facing tough competition from Adidas, Puma
and Reebok
B3. Political and regulatory analysis
Businesses do not operate in a vacuum, but they actually they operate in an environment where
governments are constantly producing new laws, rules and regulations
B4. Political: Political situation changes constantly, , the company also having a trouble with
employment regulations, labour unions, governments, changing administrations, environmental
activists dispute all these challenges, Nike is striving to cope with all these obstacles regardless
of their level and severity.

B5. Social analysis
In this twenty first century a number of changes are occurring within the society, as demographic
, social and economic changes, these changes effect Nike's productivity when the company
producing its product or delivering,
B6. Human resources analysis
To sustain its productivity Nike will always require analyzing its current and future human
resources needs, to reach that end the company will require dealing with governments' labour
laws and most importantly labor unions.
B7. Macroeconomic factors
Macro economic factors the effect with Nike's operations include people's income, demand and
supply trends tests and fashion, also there is there is a growing completion that Nike
corporation faces and as the matter of fact these competition will resist Nike
B8. Technological changes
Many technological changes have been taking place all over the world for the past two decades.
Changing technology is becoming a major threat to many companies that is within the business
because systems that is used to work few month before may be outdated
1. What are the key laws and regulations under which the company it operates?
Nike as other corporations in field of business, it doesn't operate in a vacuum, but it operates an
environment and even diversity surroundings whereby more laws, rules and regulations
exist.Nike operates diverse environment where by different rules and regulations exist.
Conducting business in communist countries is not preferred where the company may
nationalize, also making a business in some environment might be entry in early stage, in some
cases quota and tariffs may also hinder Nike's operations outside its parent country like
Venezuela or North Korea.
2. How the state of the economy does influence Nike's product?
As the matter of fact, the state of the economy effects Nike's products and its operation as whole.
Unstable economy is a threat for Nike and other businesses on the ground, in poor economy the
market would not constitute better performance, nonetheless poor economy leads to poor
production and consequently sells will decline for Nike. Due to slumping of economy Nike

reported that over 1400 jobs were to be cut out of whooping, 35000 jobs that Nike consists of
nationwide, surprisingly these cuts would be first since 1998 and 1999, the cut would affect the
economy of individual jobs, executive stated that the cut not for economic but for reorganizing
the company.
3. What new technology strongly effect for Nike?
As the world's business becoming more globalized, due to globalization, a technological change
occurring everywhere, to keep abreast with this dynamic world, Nike is always trying to
maintain its improvement and innovation strategy..
4. What changes in a population may affect the company's customer base?
population changes is a threat to many business as Nike, and this changes comes from different
angles, as society's income, changes in buying pattern, age, gender and birth rate. Many of these
change not only effect for Nike, but the entire business. For instance, Nike's main target
customers are youth who in the field of many kinds of sport , if world's number of birth rate
declines, means Nike's productivity will decline ultimately, in countries where older people are
much more compared to the youth, the window of opportunity for Nike will be less.
5. How does the company's relationship with the supplier affect its profitability?
This question seem to be very obvious, in manufacturing process, one of the most important
thing that company requires in its production process is the raw materials, nothing can be done
without it. In order to make the operation more efficient and smooth having the required raw
material becomes very essential, however getting the raw material that with right quality, with
right quantity, with the right place, with the right time and with right cost will not be possible
without a good relationship with the supplier, thus good relationship with supplier is the key to
the success of the business.
5a. Nike's relations with suppliers
Nike has always been trying to maintain good relations with its suppliers, however Nike‟s
technique for managing supplier responsibility has to a great extent evolved since the 1990s,
when the media discovered declared child labor, low paid workers, and poor working conditions
in several Asian countries (Rammohan, 2013).

6. What companies compete with Nike? Do they compete price, quality or other factors?
Nike is currently facing touch completion from many companies like, Adidas, Reebok, Under
Armour, Li Ning, Toys R us, Taylormade, PVH, Crocs, Rebook, PhatFarm, Atac, Sketcher, these
companies compete with Nike in different ways as Brand, Price, Quality and other factors social
responsibility, Nike is facing better completions from Puma, Rebook and Adidas in price,
quality and brand.
7. Are new competitors to the company likely?
In recent years, there have been many contests in athletic industry, many companies are making
profit some time like Nike, this may inspire others to enter the market, and Nike Inc. is the
number one in sportswear. And it can capable to resist the competition from existing as well as
the new entered companies.
7a. Competitive analysis for Nike
The sporty shoe industry is gradually becoming a universal oligopoly. There are numerous
barriers to Entrance prevents new entrants from capturing considerable market share. Nike can
enjoy Economies of scale that create cost advantages over any new competitors; Today‟s athletic
shoes are extremely technical.
C. SWOT Analysis for Nike
C1.Strength
 Nike is strong at research and development.
 Nike is a very competitive organization.
 Nike has no factories. It does not tie up cash in buildings and manufacturing workers.
 Nike is a global brand
 Innovative designs & Nike Strongly controls over its own distribution channel
C2. Weaknesses
 Nike does have a diversified range of sports products.
 Market is becoming saturated and consumers may become sick of Nike brand and move to
other smaller, more individual brands.
 Negative image portrayed by poor working conditions in its overseas factories

C3. Opportunities
 Nike's Product development offers many opportunities.
 The brand is severely defended by its owners whom truly believe that Nike is not a fashion
brand There is also the chance for Nike to develop new products such as sport wear.
 The company might also be developed globally, building upon its strong worldwide brand
identification.
 Increased female participation in athletics
 New technology and innovation to stay on top of market needs
C4. Threats
 Continuing challenges in import/export duties
 Strong competition from some of its major challengers in all branches of the business
 Negative image due to "sweatshops"
 Increase in the Price of Raw materials
 Negative image created by the sponsored athletes
 Nike will always face threats from pressure groups and human rights campaigners over fair
trade and wages in the third world can potentially damage brand and customer loyalty.
C5. Nikes strategy
Nike‟s overall corporate strategy focuses on Delivering value to shareholders, consumers,
suppliers, employees and the community, Nike can achieve this by continuing to focus on its
mission: To bring inspiration and innovation to every athlete in the world. And according to Nike
co-founder Bill Bowerman, if you have a body, you are an athlete.
Nike will pursue this strategy to be the leader in athletic industry
Conclusions
Although Nike's industry is becoming more and more competitive, the company is doing well,
Nike's has a global brand; the company operates so many countries, so the company facing many
obstacles in the real ground but dealing with appropriately, the good news is that the company
initiated a code of conduct that regulates its operational worldwide. The company also managed
to tackle the Negative image portrayed by poor working conditions in its overseas factories.
Nonetheless the company's future market is dynamic and very hopeful to be the leader in athletic
wear worldwide.

PART TWO
CORPORATE SOCIAL RESPONSIBILITY
Introduction
The relationship between companies and the public has witnessed a remarkable change in the
past few years. Identifying the role and responsibilities of business in society has been the pursuit
and concern of many scholars for decades. In recent years the relationship between corporations
and society had witnessed a enormous revolution from the traditional classical view of business
as profit maximizing economic agents to a more ethical viewpoint that analyzes the better impact
of business on civilization (Safwat, 2015)
However this part I will try to discuss the theory of corporate social responsibility, its historical
background, meaning and definitions, advantages and disadvantages of corporate social
responsibility and lastly I shall try to present the different views about corporate social
responsibility, pro and opponents of this concept.
Background
The origins of Corporate Social Responsibility dates back to the 1960s, when issues such as the
social rights movement and ecological activism became part of the open debate. During this
time, some companies initiated to question their responsibilities in areas such as staffing
employees from minority groups and caring to the surroundings. (Sources: www.cga-pdnet.org).
According to one of the oldest known written documents, that account of Genesis by the biblical
writer Moses, human being was instructed by his Creator to “fill the earth and govern it”
(Genesis 1, 28), and is later challenged (The Berlin International Economics Congress, 2012)
Theory of Corporate Social Responsibility
Company's Social Responsibility is one of the theories that is regularly used by different people
under a variety of names, as philanthropy and patronage, nevertheless, this concept is presented
also as “corporate responsibility,” corporate governance” and “responsible business, the concepts
has advocates as well as opponents (Melikyan, 2010).
What is Corporate Social Responsibility?
Business social responsibility has been much admired amongst companies and top corporations.
particularly in the 21st century when environmental concerns, human rights, labor rights, fair
trade and many other concerns are becoming gradually more important to clients, stakeholders
and companies alike (Kan, Corporate Social Responsibility: A Profitable Alternative, 2012).

Company's social responsibility is not something that is obliging by law for businesses to pursue
and implement. Companies who want to carry out business more responsibly and contribute for
the better of society often prefer to implement Corporate Social Responsibility strategies (Kan,
2012).The relationship between business and the general public has experienced a remarkable change in
the past few years. Globalization, ethical consumerism, ecological concerns, firm government regulations,
and increasing strength of the civil society, are all factors that required businesses to re-evaluate their task
in the public (Safwat, 2015).
Definition of Corporate Social Responsibility
There is no official definition of Corporate Social Responsibility. Number of authors defines
differently. A comprehensive definition of Corporate Social Responsibility was given by Carroll, who
stated that “The social responsibility of business covers the economic, legal, ethical, and optional
expectations that the public has of organizations at a given period of time” (Carroll, 2006, p. 16).
A Carroll, provided complete definition of Corporate Social Responsibility he stated that “The
social responsibility of business encompasses the economic, legal, ethical, and discretionary
expectations that society has of organizations at a given point in time” (Carroll, 2006, p. 16).
Discussions regarding advocates and opponents of Corporate Social Responsibility
According to Aya Mohamed (2015) , recognizing the role and responsibilities of companies
within the public has been the pursuit and concern of many scholars for our present generation.
More debates have been evaluated on the topic of who should start Corporate Social
Responsibility activities.
According to the literature of Corporate Social Responsibility there are three possibilities.
 Corporate Social Responsibility is a obligation imposed by government regulation, with the
result of similar CSR programs because of the obligation to comply with regulation.
 CRS is not led by government, but by union of companies, activist and Accountable
managers that begin Corporate Social Responsibility framework and distribute the benefits of
Corporate Social Responsibility, upholding its use in their businesses.
 Corporate Social Responsibility is based on the at company level in early stage in the search
for strategic advantage and the alteration of different social and environmental threats in
opportunities as a competitive advantage (Catalin, 2014)
Therefore, company's approach towards Corporate Social Responsibility varies between two
extremes either of dismissing the view completely or supporting best practices out of genuine

belief that Corporate Social Responsibility is a vital part of their business actions (Safwat,
2015).Within the globe of business, the main "responsibility” for companies has traditionally
been to get profit and enhance shareholder wealth, However, in the last decade, a
associations defining broader corporate responsibilities–for the environment, for local
communities, for working conditions, and for ethical practices–has gathered momentum and
taken hold.
Advocates of corporate social responsibility
 Corporate Social Responsibility advocates point out that no organization exists in isolation.
They believe that businesses, without exception, have an obligation to contribute as well as
draw from the community, on which they rely so heavily.
 Proponents of Corporate Social Responsibility argue that socially responsible practices can
have a positive impact on the organization by improving employee recruitment and retention,
managing environmental risks by reducing harmful accidents, and differentiating brand to
achieve greater consumer loyalty.
 Charles Handy makes a convincing and logical argument for the purpose of a business laying
beyond the goals of maximizing profit and satisfying shareholders above all other
stakeholders in an organization.
 Philipp Kauffmann, a partner at the Center for Innovative Leadership, based in Amsterdam,
argues corporations that do not act in a socially responsible manner are discovering they are
not capable to attract or to retain “high potential” persons
 According to Argandona ( 2008) companies should be socially responsible? Because society
represent most stake holder groups expectations, demands or requests.
 Corporations should act accordingly within the society they operate, because the society
reflects the interest of of all stake holders, their demand, expectations and demands
(Argondona, 2011)
 According to Stigson (2002) “it is clear that society expects much more from companies than
simply a well-made product or a reliable service at the right price” (p. 24)
 Freeman (1984). Freeman argued that managers should tailor their policies to satisfy the
needs of all the stakeholders, not just those of the shareholders.
 In 1932 American commentator Merrick Dodd argued „corporations, like persons, should
make every effort to be good corporate citizens by contributing to the public to a greater

extent than is generally Required‟ and therefore the corporation as an economic institution
has a social service as well as a Profit making function. (Kercher, 2006).
 According to Svensson and Wood (2008:308), businesses are not just accountable for their
own economic requirements but are also expected to consider society‟s economic well-being.
Opponents of Corporate Social Responsibility
 M. Friedman (1970) argued that Corporate Social Responsibility provide only the personal
gain of company managers in increasing their reputation in the public, consequently leading
to higher personal wages, while shareholders would experience loss because companies were
not profiting from Corporate Social Responsibility activities as these activities would incur
Only expenses.
 One of a very active opponents of Corporate Social Responsibility, Gerard Fontana, advisor
to the European trade Union Confederation, claims that corporations use Corporate Social
Responsibility concept as a means to reduce public authorities and to weaken their role in the
the public; to reduce the role of trade unions; as well as to replace public laws and
regulations by corporate Codes of Ethics or Codes of Conduct which do not have any legal
value.
 According to Milton Friedman (1970), the social responsibility of business begins and ends
with increasing profits, where the self-interested actions of millions of participants in free
markets should lead to positive outcomes for the society.
 Milton Friedman and other conservative critics have argued against corporate social
responsibility, stating that a corporation's purpose is to maximize returns to its shareholders
and that it does not have responsibilities to society as a whole.
 Milloy‟s argument is similar to the reasoning of Adam Smith and Milton Friedman they also
claim the CEOs are being hired to maximize share holders wealth as they put their money
into the business.
 Steve Milloy, a mutual fund manager and Critic of Corporate Social Responsibility,
proclaimed the following: “Shareholders do not hire CEOs to be the U.N., to act like a
government or to be a charity. They were hired to make money for Shareholders, (as quoted
in Weiss, Kirdahy, & Kneale, 2008, para. 5).
 According to Schaefer (2008) business should legally maximize long-term shareholder
wealth, because they invest the money not knowing whether they will generate money or not.

 Whole concept of Corporate Social Responsibility is irrelevant to business (Freeman &
Liedtka, 1991), through those who see the significance, but think it is a bad idea for business
(Friedman, 1962), to the enormous group of authors who think that Corporate Social
Responsibility has strategic importance to business (Asongu1, 2007).
 One of a very active challengers of Corporate Social Responsibility is, Gerard Fonteneau, the
consultant to the European trade Union Confederation, he says that this strategy corporate
social responsibility is increasing at a moment the multinational economic and financial
groups, definitely the international market economy itself, are going through a serious
internal crisis; witness many socially and ethically „‟irresponsible‟‟ practices: deceitful
bankruptcies, uncertain purchases, cheatings in the accounts, very high manager salaries,
disrespect for basic values. (Melikyan, Corporate Social Responsibility:A Fashion Trend or a
Serious Approach?, 2010).
My view point: It seems certain that there are many arguments for and against corporate
social responsibility regarding corporation's rule within the society, although the main
purpose of making business is to make a profit, this doesn't necessarily mean companies
should ignore the society it works within it, I am inclined the advocates of social
responsibility and I do believe that corporations has responsibility with in the public it
operates with in it, ignoring society's responsibility will be disastrous because corporations
don't operate in a isolation, they require the society in one way or another, and it's the society
that provides corporations all they required as money to sustain their operations, human
resources to make operations smooth and most importantly all the cash it covers it's expense
daily, in my point of view without Corporate Social Responsibility, corporation cannot gain
their desired results and altimetry will be out of the market
Advantages of Corporate Social Responsibility
1) Corporations are performing more responsibly towards their workers, environment and the
public at large.
2) Corporate Social Responsibility helps to bring the businesses and the public closer through
diverse community directed projects.
3) Corporate Social Responsibility makes the corporations to Think globally and act locally.
4) Business‟ activities are obtainable in their Codes of Conduct and Codes of ethics presented in
the websites which leads to transparency of their functions

5) Corporate Social Responsibility activities help companies to advance their brand images, to
obtain more clients which in its turn in most cases leads to rising of the companies‟ revenues.
Disadvantages of Corporate Social Responsibility
a) Some corporations are presenting excellent examples of their Corporate Social Responsibility
activities and demonstrate a responsible attitude towards the people.
b) In pursuing their wellbeing, some companies often act very recklessly causing huge damages
to the atmosphere and community.
Some large corporations are carry out Corporate Social Responsibility activities on a community
in slight level butthey are damaging the planet on a greatly. (sources: Hasmik Melikyan 2010)
During the 1990s, criticism of corporate practices escalated. A series of corporate scandals
emerged in the US. Numerous environmental Disasters caused by global corporations occurred
(Broomhill, 2007)
Awareness of the use of sweatshops and child labour in developing countries attracted the
attention of community activists in developed societies, the 1990s therefore witnessed an
explosion in civil group activism which led to both protests against and engagement with,
corporations (Bendell 2004)
Conservative opponents of Corporate Social Responsibility politics say: merely profit
maximization allows companies to work well and complete their duty towards society (Rusconi,
2010)
Conclusions
Initially the main reason of most companies doing a business has been making money, and
maximizing share holder's wealth, whatever the circumstances are. This concept has now
considerably been changed throughout the world; the idea of social responsibility has come into
light. The concepts of Corporate Social Responsibility has been on the spot light for many
scholars and researches, however corporations should act appropriately when conducting their
business activities with the society. The corporation's main aim should not only be profit
generation but they should bear in mind their responsibility towards the environment and the
society at large.

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