Nike Slides 2

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DUkito

nike corporetion

Wirtschaft & Finanzen Business

Nike Corporation Jumping the Hurdles of Social Responsibility Disclosure

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Ch #6 Marc Kasky versus Nike Marc Kasky of San Francisco sees his world as a com- munity and has a long history of caring about the others in it. He got early lessons in business ethics from his father, who ran a car repair business. The customer would bring his car in and say there’s something horribly wrong in my car: I think I need a new transmission. . . . My father would call them back an hour later and say, “Come get your car, there was a loose screw here and there; I fixed it. What does it cost? Nothing.” I saw how that affected our family. It impressed me a great deal.1 After graduating from Yale University in 1969, he volunteered to work in poor Cleveland neighbor- hoods. Moving to San Francisco, he headed a non- profit center for foundations that funded schools. He involved himself in civic and environmental causes. He also became an avid jogger and ran marathons. Over the years Kasky wore many pairs of Nike shoes and considered them a “good product.”2 But he stopped buying them in the mid-1990s after reading stories about working conditions in overseas factories where they were made. By then Nike, Inc., had be- come the main focus of the anti-sweatshop cause, ac- cused of exploiting low-wage workers who made its shoes and clothing. The more Kasky read about Nike, the more convinced he was that it was not only vic- timizing workers, but lying about it too. Kasky sought the help of an old friend, Alan Caplan, an at- torney who had achieved fame in progressive circles by bringing the suit that forced R. J. Reynolds to stop using Joe Camel in its ads. With Caplan’s help, Kasky sued Nike in 1998 for false advertising, alleging it had made untrue statements about its labor practices. This was not Kasky’s first lawsuit. Previously, he had sued Perrier over its claim to be “spring water” and Pillsbury Co. for labeling Mexican vegetables with the words “San Francisco style.” Both suits were settled.3 Nike sought dismissal of Kasky’s suit, arguing that the statements he questioned were part of a public de- bate about sweatshops and protected by the First Amendment. NIKE Nike, Inc., is the world’s largest producer of athletic shoes and sports apparel. It grew out of a handshake in 1962 between Bill Bowerman, the track coach at the University of Oregon, and Phil Knight, a runner he had coached in the 1950s. Knight had just received an MBA from Stanford University, where in a term paper he had written about competing against estab- lished athletic shoe companies by importing shoes made in low-wage Asian factories. Now he was ready to try it. He and Bowerman each put up $550 and Knight flew to Japan, arranging to import 300 pairs of Onitsuka Tiger shoes. After seven years, Knight and Bowerman decided to stop selling the Japanese company’s brand and create their own. So they designed a shoe and sub- contracted its production to a factory in Japan. By now Bowerman and Knight had incorporated, and an employee suggested naming the company Nike, f ...

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Module 3

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Part III: Business and Society Chapter 6: Consumers Chapter 7: The Environment * This multimedia product and its contents are protected under copyright law. The following are prohibited by law: • any public performance or display, including transmission of any image over a network; • preparation of any derivative work, including the extraction, in whole or in part, of any images; • any rental, lease, or lending of the program. Chapter Six: Consumers * * OverviewChapter Six examines the following topics:Product safety, legal liability, and regulationResponsibilities of business to consumers concerning product quality, prices, labeling, and packagingDeceptive advertising and the FTC“Reasonable” vs. “ignorant” consumer standardsThe social desirability of advertising, free speech, and consumer needs Moral Issues in Business Chapter 6 * IntroductionWith the sale of goods to the public comes responsibility on the part of the manufacturer and advertiser. Government has some responsibility to protect the public from hazardous or mislabeled goods. What responsibilities do companies have toward their consumers? How can goods be promoted while respecting the choices of individuals? Moral Issues in Business Chapter 6 * “Wigand revealed in a 60 Minutes interview that his employer knew nicotine was addictive and intentionally manipulated the tobacco content of its cigarettes to increase the amount of nicotine they delivered.” * Product SafetyBusiness’s general responsibility for product safety: The complexity of an advanced economy and the necessary dependence of consumers on business to satisfy their many wants increase business’s responsibility for product safety. Moral Issues in Business Chapter 6 * Product SafetyThe legal liability of manufacturers: The 1916 MacPherson vs. Buick Motor Car case expanded the liability of manufacturers for injuries caused by defective products. Prior to that case, consumers could recover damages only from the retailer of the defective product. The MacPherson case replaced the older caveat emptor (“let the buyer beware”) doctrine of consumer-seller relationship with a due care one. Moral Issues in Business Chapter 6 * Product SafetyStrict product liability: The MacPherson case still left the injured consumer with the burden of proving that the manufacturer had been negligent.Negligence is difficult to prove.A product might be unsafe despite the manufacturer’s having tried to exercise caution. Moral Issues in Business Chapter 6 * Product SafetyStrict product liability: In the 1960s, legal thinking became dominated by the doctrine of strict product liability, based on:Henningsen vs. Bloomfield Motors (1960)Greenman vs. Yuba Power Products (1963) This holds the manufacturer responsible for injuries suffered as a result of defects in the product, regardless of whether the manufacturer was negligent. Moral Issues in Business Chapter 6 * .

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1 Running head: NIKE COMPANY PAGE 12 NIKE COMPANY NIKE COMPANY Student name Institution Contents 3NIKE Company 31. Executive summary 42. Problem statement 43. Company profile 43.1Introduction 53.2 Mission statement 53.3 Values Statement 63.4 Vision Statement 63.5 Strategic Alternative Slogan 63.6 Industry Size 63.7 Industry Profitability 73.8 Industry Cyclicality 74. Industry Entry and Exit Barriers 74.1 Entry Barriers 84.2 Exit Barriers 84.3. Current strategy 115. Code of ethics 116. Facts and figures in governance, accountability and reporting 116.1 Reporting Practices 126.2 The Value of Reporting 126.3 Stakeholder Engagement and Report Reviews 146.4 Feedback on reporting 147. Company analysis 147.1The Strengths/ Weaknesses for Nike Corporate 147.2 Board of Directors - Strength 157.3 Board of Directors - Weakness 157.4 Environmental Analysis 15Internal – Strength and weakness 167.5 Challenges and struggles of Nike Company 198. Competition 198.1 Competition vs. Nike 198.2 Footwear Industry –Revenues, Players, Market Share 208.3 Manufacturing options 218.4 Strategic Outsourcing 218.5 The Evolution of Manufacturing in Third World Countries 228.5 Nike 238.6 Reebok 248.7 Adidas 248.8 Talk 258.9 New Balance 259. Summary and conclusion 27References NIKE Company 1. Executive summary When an organization such as Nike, opts to be a global entity, often, it experience a huge profits in its final accounting. Sadly, other businesses such as Nike must be at a position of overcoming some difficult obstacles set before it establishes a successful business in the foreign countries (Frisch, 2009). Most of the issues associated with these vast industries include the child labor laws, low wages, and the outsourcing’s effects on the aggregate sales. Due to this reason, the most widely known organizations have already presented several cases in defense to their positions on conducting business in the foreign countries. One such good instance is Nike’s sweatshop labor case that stirs up some controversy over the ethical business practices. Even after Nike Company has made several attempts at recovering from the bad press that it had received from the sweatshops, the organization still struggles to defeat the negative feelings that have already been created in the people’s mind, especially across the United States. Additionally, this company faced various challenges from the word go. With the increase in technology, the organization is facing a very high competition caused by its reluctance to use of modern advertisement platforms as well as sticking to traditional marketing approaches (Frisch, 2009). The issue has resulted in reduced total sales as well as reportedly small profits. Thus, this paper seeks to present help Nick Co. Improves the already tarnished image in legal and ethical issues, as well as competitively survives in the market. 2. Problem statement When Nike’s company op.

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Assignment 3 Economics 202-01 Macroeconomic Theory I Question 1 Suppose we allow for installation costs, the utility function and production function are given by U(ct) = ln ct (1) yt = F(kt) = Ak α t (2) In addition, the resource constraint and capital accumulation are given by yt = ct + ( 1 + φ 2 it kt ) it and (3) 4kt+1 = it − δkt, (4) where φ ≥ 0. (a) Write the First Order Conditions for consumption, capital, investment, and Lagrange multipliers for the optimal solution. (b) Derive the equation for Tobin’s q. (c) Using (a) and (b), derive the Euler equation in terms of Tobin’s q, capital, and consumption. (c) Determine the steady state levels for Tobin’s q, capital, investment, and consumption. (d) Determine the effects of a permanent productivity increase (i.e. 4A > 0). Question 2 Suppose we allow for technological progress, the utility and production functions are given by U(Ct) = ln Ct and (5) Yt = (1 + µ) tKαt N 1−α t , (6) where µ > 0. In addition, capital accumulation is given by 4Kt+1 = It − δKt. (7) 1 (a) Write the First Order Conditions for consumption, capital, labor, and Lagrange mul- tiplier for the optimal solution . (b) Derive the Euler equation. (c) Discuss the issues with steady-state optimal growth paths for consumption, capital and output. (d) Derive the per capita production function, yt = F(kt). [Note: yt = Yt Nt and kt = Kt Nt denote per capita output and capital in period t, respectively] 2 Part III: Business and Society Chapter 6: Consumers Chapter 7: The Environment * This multimedia product and its contents are protected under copyright law. The following are prohibited by law: • any public performance or display, including transmission of any image over a network; • preparation of any derivative work, including the extraction, in whole or in part, of any images; • any rental, lease, or lending of the program. Chapter Six: Consumers * * OverviewChapter Six examines the following topics:Product safety, legal liability, and regulationResponsibilities of business to consumers concerning product quality, prices, labeling, and packagingDeceptive advertising and the FTC“Reasonable” vs. “ignorant” consumer standardsThe social desirability of advertising, free speech, and consumer needs Moral Issues in Business Chapter 6 * IntroductionWith the sale of goods to the public comes responsibility on the part of the manufacturer and advertiser. Government has some responsibility to protect the public from hazardous or mislabeled goods. What responsibilities do companies have toward their consumers? How can goods be promoted while respecting the choices of individuals? Moral Issues in Business Chapter 6 * “Wigand revealed in a 60 Minutes interview that his employer knew nicotine was addictive and intentionally manipulated the tobacco content of its cigarettes to increase the amount of nicotine they delivered.” * Product SafetyBusines ...

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Running Head: NIKE 1 NIKE 6 Week 6 Assignment 2 Ebony Reid Strayer University BUS 499 Business Administration Capstone Dr. Grizzel Dr. Gardner August 18, 2019 Found in the year 1954, Nike is an American multination company that specializes in the manufacture of athletic equipment, accessories, athletic wear, apparel, and providing footwear. The key goal of the company is to supply wearable and exceptional products that come in handy in enhancing better performance in sports (1). This paper will discuss the industry in which Nike operates in based the strategies it can use to build on its strengths and opportunities and those it can use to deal with the threats and weaknesses. Five forces of competition The two segments of the general environment that would rank highest in their influence on Nike are threats of new entrants and the level of competitive rivalry. Threat of new entrants In case new firms come in the market, they are likely to disrupt the industry environment of Nike, especially due to the company high pricing strategy. With the current technological advancement, it is likely that new companies will be looking to venture in the apparel, sports shoes, and equipment market as a way of making profits (1). Most of these companies may decide to sell their products at a lower price, thus leaving customers with a favorable choice compare to how Nike sells its products. With the U.S. facing hard times in how it deals with other countries politically, other companies may jump in and take advantage. For instance, following the U.S. sanctions on Iran, Nike lost the chance of producing equipment for the Iranian football team, which was a huge deal (2). Level of competitive rivalry The company faces tough competition from different brands, especially from Adidas and Reebok. Both of these companies deal with similar goods like Nike, although they have different customers from different parts of the globe (1). In the sports industry, the level of competition is strong. Furthermore, the industry has grown with the current players engaging in tough competition and seek to snatch away the market share from each other. Evaluation In the recent past, Nike has successfully been able to deal with the two threats successfully, although much need to be done to deal with them completely. To address these forces, the company has engaged in extensive research and development, whereby it creates more unique products that aid in maintaining its brand image. The company keeps improving its product every year to ensure that it does not lag behind its competitors. Furthermore, Nike has continually engaged in social media marketing, which has worked on its favor, given that their products are well known to their customers (1). For instance, the company recently engaged in the 'Just Do It' campaign where different customers posted their photos with the caption and helping the company to increase its popularity among the consumers. Future improvements T ...

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