Macro Analysis
Pest Analysis is the framework used to analysis the organisation’s external macro environment that present opportunities or threats to a business (OxLearn, 2013). These are all generally considered to be outside the control of the business although many, business will go to great lengths to try and control them. The PEST analysis particularly identifies key dangers that are taking place which influence the organisation in the future. PEST standing for Political, Economic, Social and Technological.
Politic Analysis
Nike has benefited from the growth-orientated policies of the US government which will foster its business growth. In this context, Nike has been aided greatly by the US policies, hence providing them with the opportunity to modernize their products (Cooter, et. al., 1988). The support accorded to Nike by the US government, Nike enjoys low interest rates and stable currency conditions and competitive tax arrangements which able to advance the growth of the Nike. Stable political conditions in most major markets present opportunities for Nike to grow its business in these areas. Also, expanding free trade policies facilitate better market penetration overseas. Moreover, improving…show more content…
Consequently, more and more people would like to do exercise such as playing badminton more frequently. The demanding for badminton product such as sport shoes is required. With an increase in demand for shoes, Nike is at the forefront of this surge of demand as people are looking for sport shoes. Therefore, Nike has to produce and supply more sport shoes in order to fulfil the market demand. However, the sweatshop problem which faced by Nike is become more critical and the negative brand image would be occur if Nike is failed to manage it well. This would cause bad publicity and declicing sales because the the society demands more socially responsible
PEST is creation for Political, Economic, Social and Technological. This investigation is utilized how these four external factors influence to business circumstance. Essentially, a PEST investigation helps you decide how execution and exercises are
Have you ever thought about how one small decision, can have such big consequences? Not just for an individual, but for a whole society. In the play The Crucible, by Arthur Miller, conflicts arise when Abigail, a young teen in Salem, Massachusetts, is found worshipping the devil along with two other main characters, Betty and Tituba, and many other girls. After being discovered, Betty faints and does not wake up. Accusations of witchcraft quickly spread throughout Salem and Reverend Parris questions Abigail about the discovery. From here, Abigail begins her lies and manipulations for her own benefit. Abigail is guilty with corrupting her society with wrongdoing because she is manipulative, selfish, and vindictive.
To what extent was unrestricted submarine warfare by Germany the principle reason for United States involvement in the First World War? Germany was the main culprit of using submarines in order to threaten ships of other countries and their main target Great Britain. In 1915 when Germany released a policy called “Unrestricted submarine warfare”, this would give Germany the right to attack ships that would cross the war zone. This would later on lead to attacks that would kill many from neutral countries and this would later on lead to the Declaration of War on Germany by the United States. Learning more about this topic would give the opportunity to understand why the United States joined the First World War and how this affected the United States later on.
“Please keep hands and feet away from the doors as we are approaching Magic Kingdom during its 45th anniversary.Shouting, Por favor manténganse alejado de las puertas.”, announced the conductor.
Since its creation, Nike has proven itself as a popular brand and it has created niches by selling products such as footwear, apparels and various types of sports equipment. This paper will attempt to trace the product development of Nike shoes from its origins in conception and design to the manufacturing and production process located in contract factories in developing countries to advertising and marketing of Nike as a cultural commodity and finally, the retailing of the footwear around the world.
PEST is an acronym used for companies with in the political, economic, social and technological views. PEST allows companies to view and observe certain areas that might have been overlooked. The company I will be discussing the PEST analysis is Target. Target is a large scale company and is constantly changing in the industry. The political views of Target is that they must have an unbreakable bond with China due to majority of its products coming from that country. They must be aware and stray away from any conflicts because it can create a negative affect in the operation of Target. Also the company is altered by taxation, tariffs, cost, and trade restrictions especially when they're trying to broden outside the United States. The economic
Nike is the leading and yet renowned supplier of athletic apparel and shoes. The company controls close to 33% of the global athletic shoe market (Dogiamis & Vijayashanker,2009).Nike was founded by Bill Power and Phil Knight in 1962 as a Blue Ribbon Support and then was later on renamed to Nike in the year 1968 (Patrow,2003).The company supplies very high quality product in close to 100 countries with major markets being located in the U.S,U,K, Asia Pacific as well as in the Americas. The company has managed to attain its lead and legendary position via the application of innovative and yet attractive product design which is backed by quality production as well as well crafted marketing strategies.
PEST analysis is an imperative strategy tool used for a company, mainly to oversee and assists in project management. PEST analysis stands for the political, economic, social and technological factors of an organization. This tool is used as an aspect of an organization's competitive strategy to analyze and assess the critical external factors that may positively or negatively impact the organization (Kadlubek, 2016). When a PEST analysis is performed, the external factors are analyzed and monitor the external marketing environment. A company may consist of several external factors that can bolster or impede the development of an organization; therefore, it is beneficial and more productive to subdivide the external analysis into more feasible segments (Frederick, Agnes and John, 2011).
Competition is very fierce due to the number of companies competing for sales. Lots of money goes to marketing and promotions using various channels to reach the young demographic group of consumers who spend the most money on Nike’s products. Growth is slowing down in the athletic footwear industry. But new markets are emerging with high growth rates. These markets include extreme sports market and the corporate merchandise market.
Nike’s main strategy revolves around product branding. Their brand compromises of a swoosh logo which is accompanied by a message of “just do it”. The logo was imprinted on all of their products with the message developed to express the individuality of their target group. The branding was further promoted by Nike’s relentless approach on the quality of their product as demonstrated when considering overseas business opportunities, quality must not be compromised in order to do so. This ensures consumer satisfaction and loyalty towards Nike.
The purpose and intent of this paper is to describe the legal, cultural, and ethical challenges that face the Nike Corporation in their global business ventures. This paper will also touch on the roles of the host government and countries where Nike manufactures their products and the author will summarize the strategic and operational challenges that Nike managers face in globalization of the Nike product.
As the brand name of Nike continue to soar, other companies in the industry; learning from the success Nike has experienced, start focusing more on brand development to keep up with the increasing levels of competition. These companies resort to brand maintenance, which has become the main target in this industry due to product differentiation made by Nike. Nike, being market-advantaged, produces an extensive range of products, through which it gains a balanced level of profits. This has influenced rival companies to initiate a new range of products in their businesses too. Previously these companies had high risks of failing in business, if their single products did not appeal to the market. Due to the impact of Nike’s business strategy, the other companies are also enlarging their product range,
As the political situation is stable, so its better for business to invest money in securely. In that case, there is no political bad affect in Nike business in the united kingdom.
Nike Enterprise possesses heaps of segments all over the world such as North America, Central & Eastern Europe, Greater China, Japan, and Emerging Markets. In addition, there are also manifold merchandises manufactured and distributed beyond the United States. Hence, large amount of purchase and sale transactions in different currencies are executed by Nike enterprise. If foreign currency exchange rates and interest rates waver, Nike enterprise may suffer a decline in revenues, growth in cost, and lower margins and earnings.
Firstly Nike sold its franchise licenses in different countries expanding the market share in sports wear industry, and then the company moved towards purchasing shares in equity to reduce the risk uncertainty. Finally the company managed to bring the dealers’s corporation under one direction enabling them a better control and monitoring capabilities. Nike is making new policies, analyzing the performance of marketing and advertising with the standards they have set to make sure that the company is in line with its required its standards in addition; company is moving towards improving its advertisement in order to make it more effective in different regions. Nike has also faced different issues while internationalizing the business, such as capabilities, access, finance and business environment; unavailability of trained workers, limited information about the market, inability of contacting foreign customers and new business environments describes these issues on a vast ground.