Nike Ethics

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  • Nike Shoes From China, www.luckshoe.net Nike Shoes Wholesale, Nike Shoes Cheap http://www.luckshoe.net
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  • hi i found that slideshow really helpful, im writing an essay about the social implications of business ethics facing Nike in its different areas of activity.
    and i was wondering if you have any points or facts that i could use.
    email me asap aish.c@hotmail.co.uk..
    thanks.
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  • Hi ya ummm, im a grade 12 student and am doing a debate on why nike is ethical or not for my business class. My stance is that Nike is ethical, if you could please send me information on why nike is ethical, this debate is tomorrow so please send the information as soon as possible, thank you very much!
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  • wholesaler/retailer of the nike shoes



    http://www.nikestorevip.com
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  • Thats a good issue on business ethics to be discussed. You could have used some of the ethics' theories as well, to define and analyze the problem here. Well done.

    ~ Ronak R. / RokZRooM
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Nike Ethics

  1. 1. Dima Jennifer Nicolas Saadia Sergiu Group 3:
  2. 2. What they show you What they don’t
  3. 3. Who costs them money Who make them save money
  4. 4. Seller of athletic footwear and apparel Produces in 45 countries worldwide Headquarters in Oregon, USA Founded in 1964 Brand name created in 1971 Just do It campaign in 1988 INDUSTRIAL ANALYSIS RECOMMENDATIONS
  5. 5. Criticism started in early 90’s: -child labour -safety and health problems -physical harming of employees Review of Labour Practices in 1995 Nike’s response to growing criticism INDUSTRIAL ANALYSIS RECOMMENDATIONS
  6. 6. Matrix Structure Each department overlapped by geographic divisions and product categories Overlap in managerial responsibilities Fluid leadership structure No formal communication link between regional and product heads INDUSTRIAL ANALYSIS RECOMMENDATIONS Organizational Structure
  7. 7. <ul><ul><li>Labor-intensive: </li></ul></ul><ul><ul><li>-Manufacturing location </li></ul></ul><ul><ul><li>-Outsourcing production </li></ul></ul><ul><ul><li>-Reassess production methods </li></ul></ul><ul><li>Rising crude oil prices: 65% increase in one year </li></ul><ul><ul><li>-Transportation, raw materials and energy </li></ul></ul><ul><ul><li>-Consumer’s disposable income </li></ul></ul><ul><li>Change of consumer taste: </li></ul><ul><li>-Athletic shoes  Brown shoes </li></ul>INDUSTRIAL ANALYSIS RECOMMENDATIONS General Environment
  8. 8. <ul><li>Globalization </li></ul><ul><ul><li>Opportunity: </li></ul></ul><ul><ul><li>-Lower import tariffs/duties </li></ul></ul><ul><ul><ul><li>-Access to cheap labor and raw materials </li></ul></ul></ul><ul><ul><li>Threat: </li></ul></ul><ul><ul><ul><li>-Increased competition from Asia </li></ul></ul></ul>INDUSTRIAL ANALYSIS RECOMMENDATIONS General Environment
  9. 9. <ul><li>Consumer Demographics </li></ul><ul><ul><li>Sales : </li></ul></ul><ul><ul><ul><li>-Ages 30 – 34 </li></ul></ul></ul><ul><ul><ul><li>-Teenagers & Men (early 40s) </li></ul></ul></ul><ul><ul><ul><li>-Men (20s) </li></ul></ul></ul>INDUSTRIAL ANALYSIS RECOMMENDATIONS General Environment
  10. 10. INDUSTRIAL ANALYSIS RECOMMENDATIONS Financial Outlook
  11. 11. INDUSTRIAL ANALYSIS RECOMMENDATIONS Infringement statistics
  12. 12. Operations: -Footwear, apparel, equipment -Other businesses: Business-Level Strategy: -Integrated cost-leadership and differentiation strategy INDUSTRIAL ANALYSIS RECOMMENDATIONS Business Model
  13. 13. INDUSTRIAL ANALYSIS RECOMMENDATIONS Resources: -Tangible: Fit, Sphere, Air, Shox technologies -Intangible: brand name / reputation for innovation Core Competency: -Distribution and subcontractors’ networks -Mass marketing Competitive advantage: -Brand name and celebrity endorsements Value Chain
  14. 14. <ul><li>Bargaining Power of Suppliers: </li></ul><ul><li>-Subcontracts to more than 500 small scale factories </li></ul><ul><li>-Low bargaining power due to Nike’s big volume </li></ul><ul><li>Bargaining Power of Buyers: </li></ul><ul><li>-Competitive products all compete on differentiation </li></ul><ul><li>-Low switching costs </li></ul>Porter’s Five Forces Model INDUSTRIAL ANALYSIS RECOMMENDATIONS
  15. 15. <ul><li>Threat of Substitute Products: </li></ul><ul><li>-Non-existent </li></ul><ul><li>Threat of Potential New Entrants: </li></ul><ul><li>-Economies of Scale </li></ul><ul><li>-Strong and Well Established Brand Name </li></ul><ul><li>-High Capital requirements </li></ul><ul><li>-Low threat </li></ul>Porter’s Five Forces Model INDUSTRIAL ANALYSIS RECOMMENDATIONS
  16. 16. <ul><li>Intensity of Rivalry between Firms in the Industry: </li></ul><ul><li>-High competitive in an Oligopoly (other leading firms include Adidas, Puma, Fila, New Balance) </li></ul><ul><li>-Strong brand identity and product differentiation </li></ul><ul><li>-Intensity of Rivalry is moderate </li></ul>Porter’s Five Forces Model INDUSTRIAL ANALYSIS RECOMMENDATIONS
  17. 17. Porter’s Five Forces Model INDUSTRIAL ANALYSIS RECOMMENDATIONS High Moderate Low Bargaining Power of Suppliers Bargaining Power of Buyers Threat of Substitutes Threat of New Entry Intensity of Rivalry Between Firms
  18. 18. <ul><li>Partnership / independent organization </li></ul><ul><li>Benefits: </li></ul><ul><li>-Knowledge </li></ul><ul><li>-Credibility </li></ul><ul><li>Drawbacks: </li></ul><ul><li>-Control surrender: </li></ul><ul><li>-Information leakage </li></ul>Alternatives INDUSTRIAL ANALYSIS RECOMMENDATIONS
  19. 19. Vertical Integration benefits: -Full control -More profits -Drawbacks -Very costly -Less flexible Alternatives INDUSTRIAL ANALYSIS RECOMMENDATIONS
  20. 20. Balanced scorecard Benefits: -Control -Competitive advantage Drawbacks: -Commitment INDUSTRIAL ANALYSIS RECOMMENDATIONS Alternatives
  21. 21. INDUSTRIAL ANALYSIS RECOMMENDATIONS Alternatives
  22. 22. Balanced scorecard: -Competitive advantage -Less expensive -Preservation of control -Preservation of flexibility INDUSTRIAL ANALYSIS RECOMMENDATIONS Conclusion
  23. 23. We are one step ahead Thank you for your attention. Feel free to ask if you have any question.

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