OL 750 Milestone Two Guidelines and Rubric
Overview: For the second milestone, you will continue your analysis of the Nike case study. During this phase, you will evaluate global business and societal
trends that have occurred over the years for their impact on Nike leadership’s decisions and attitudes. In addition, you will address the competitive challenges
presented to the leadership team when they attempted to engage in CSR practices.
Prompt: Before any company can implement a major change, it should analyze the big picture. For example, leadership groups must understand the greater
context in which a company operates. As you have read the Nike case study, you will note that over time society’s attitudes toward social responsibility have
evolved. As a response, Nike made significant changes in the way it did business. Your job in this milestone is to identify those “big picture” global changes and
consider how they altered Nike’s views of CSR.
For the second portion of this milestone, you will address the competitive challenges that occurred as a result of the societal and global changes. As with any
trends, there are challenges and opportunities. Consider the ways in which changes in the global and societal landscape affected Nike.
Finally, dig a little deeper by considering the implications of these challenges, focusing specifically on the ways in which the leadership team responded to the
larger societal and global issues.
Specifically, the following critical elements must be addressed in your paper:
1. Global and Societal Trends
Identify global and societal trends that affected Nike’s CSR policy.
Describe the evolution of global and societal trends over time.
2. Changes in Attitudes and Policy
Provide examples of the ways in which the global and societal trends changed attitudes at Nike.
Explain how global and societal trends drove changes to policies at Nike.
3. Response by Nike Leadership to Global and Societal Trends
Describe the opportunities that arose from the changing global and societal trends.
Explain the challenges presented by the changing global and societal trends.
Rubric
Guidelines for Submission: Your Milestone Two paper must be 8 to 10 pages in length and must be written in APA format. Use double spacing, 12-point Times
New Roman font, and one-inch margins.
Critical Elements
Global and Societal
Trends
Evolution of Global and
Societal Trends
Changing Attitudes
Changing Policy
Opportunities
Challenges
Articulation of Response
Proficient (100%)
Identifies global and societal trends that affected Nike’s
CSR policy
Demonstrates how global and societal trends evolved
over time
Provides examples of the ways in which global and
societal trends affected attitudes at Nike
Explains how global and societal trends affected policy at
Nike
Describes the ways in which the global and societal
trends presented opportunities for Nike
Explains the ways in which the global and societal trends
presented challenges for Nike
Submission has no major errors related to citations,
grammar, spelling, syntax, or organization
Not Proficient (0%)
Does not identify global and societal trends that affected
Nike’s CSR policy
Does not demonstrate how global and societal trends
evolved over time
Does not provide examples of the ways in which global
and societal trends affected attitudes at Nike
Does not explain how global and societal trends affected
policy at Nike
Does not describe the ways in which the global and
societal trends presented opportunities for Nike
Does not explain the ways in which the global and
societal trends presented challenges for Nike
Submission has critical errors related to citations,
grammar, spelling, syntax, or organization that prevent
understanding of ideas
Total
Value
15
15
15
15
15
15
10
100%
Societal issues can take many forms, from changing perspectives on the environment to evolving
legal frameworks. Globally, these concerns may also play an important role; however, as your
analysis moves to a global perspective, the variables that influence an organization may become
more complex. For example, as businesses begin to operate overseas, international law becomes
a concern in addition to the laws businesses face purely on a domestic level.
In this final module on external drivers of change, you will continue your analysis of societal and
global trends that influenced Nike’s CSR policy you will narrow down the list of social and
global issues Nike faced to just the key issues that really impacted it the most. Focus on a few
key issues in detail rather than providing a laundry list of issues covered in a cursory fashion.
Reading and Resources
Required Resources
Video: Deep Change and the Fundamental State of Leadership (cc) (1:07)
Robert Quinn speaks to leaders about the dilemma of deep change or “slow death” and four
questions to help leaders avoid it. Consider the following questions:
1. What are the best ways for a leadership to implement deep change within an
organization?
2. How did Nike implement deep change in its organization?
3. Did Nike follow the principles as outlined by Quinn?
Video: Kotter: Succeeding in a Changing World (cc) (4:53)
John Kotter speaks to leaders about fundamental components to deal with the complexities of
organizational change. Consider the following questions:
1. What are the main components of Kotter’s formula for change?
2. How would you suggest Nike apply this formula within its organization?
Running head: Nike Company
1
Nike Company
Cynthia Estrada
SNHU
January 15, 2019
Nike Company
2
Introduction
Nike Company is an American based company that serves the international market. Nike
is the largest companies in the world that produces wear intended for sports. The company's
performance has been very high over time due to the outstanding quality of products the company
produces. The company's performance can be attributed to the leadership and goals of the
company. In the years 1980 to 1990 the company as faced by a number of crises that ruined its
reputation, however, the response of the response of the leaders towards solving these crises saved
its image thus its performance has increased. Studies show that the leadership of the company
turned the complaints of the consumers and the criticism of the media into actions that were aimed
towards changing the policies of the company thus ensuring that its CSR goals and views are
aligned to the improvement of the people and the environment it is located. Due to the issues
relating to the views and goals of Nike relating to CSR, this paper will focus on the various view,
the changes in the views the critical events and the response of the leadership towards the aid
events, and the results emanating from the response (Watford, 2014) (Lebron, 2010).
Views and goals of Nike as related to CSR
The goals and views regarding the corporate social responsibility of the company were
aimed at ensuring that the consumers of the products provided were satisfied and content. The
company's aim was to be a leading institution in the world that produces sportswear that could be
fit for use by all individuals in the world. It is important to note that the corporate social
responsibility of a company should be focused on the impact it has on the internal environment of
the company and also the external environment (Carbasho, 2010).According to studies, it is clear
that the activities of the company were only focused on the consumer. In that case, the company
ensured that the workers of the company were highly skilled thus ensuring that the customers
Nike Company
3
received products that were of very high quality and that easily appealed to the customers.
However, the leadership of the company at the time did not focus on ensuring that the workers and
the environment around which the company is based were focused on thus there was some kind of
neglect on these aspects of the CSR of a company. It is therefore evident that the goals of the
company relating to CSR were aimed to satisfy one aspect only which is the consumer.
Evolution of Nike's views and goals
Over time and as a result of the issues that have threatened the smooth existence of the
company, the views and the goals of the company have changed. The leadership of the company
has realized that all the aspects of the CSR have to be considered and met fully for a company to
gain favor among the consumers and the public at large. Today, the company is aiming at being
the world's company that satisfies all the aspects of the corporate social responsibility. The
company is viewing all the aspects surrounding it with equal importance and intensity. It is
therefore notable that the leadership of the company is focusing on the workers more with an aim
of improving the performance of the company and seeking to satisfy one of the aspects of the CSR.
In addition, the company has been focusing on improving its focus on the environment around it.
The activities of the company have greatly changed to ensure that the company impacts the society
and its surrounding positively. It is therefore notable that the views and the goals of the company
have evolved over time thus its performance has greatly increased and improved (Beresin, 2010).
Critical events that have occurred over Nike's history
Over time, the country has been faced by a number of controversies that threatened its
existence and tarnished its image. One of the major events that occurred was that the company had
contracted nearly 700 outlets around the world that were used for the supply of its goods and
products. The contracted shops were mainly known as sweatshops. The media and the public
Nike Company
4
disclosed that the overseas sweatshops were being used by the company with an aim of exploiting
the workers by paying them poorly and making them work overtime without pay. Consequently,
the company was found that it was not providing its workers with favorable working conditions.
According to the studies and research it is evident that the company provided its workers with an
environment that was not fit for work. For instance, they were pressured to meet the standards of
the company whereas their wellbeing was not being met (Ciocchetti, 2013). In this case, the
workers felt that the conditions of working they were subjected to were not conducive. In addition,
some workers reported that the top leadership of the company especially the supervisors harassed
and constantly abused them thus making the working environment unbearable. These claims and
practices by the company highly affected the image of the company to an extent that the sales
drastically reduced. Another major incident that is associated with Nike Company, is the
employment of children a practice largely known as child labor. During the earlier years, the
company did not focus much on the age of employment of its workers. As a result, the leadership
of the company was accused of having underage individuals among the taskforce of the company.
The law and the society do not approve the employment of children by any company, therefore,
the name of Nike Company was greatly affected as a result of the employment of children. Among
the major controversial events facing the company, it was accused of evading its taxes. According
to reports, the company is among the many companies that invest and use companies that are
offshore with an aim of avoiding to pay their taxes (Ciocchetti, 2013).
The effects of critical events on Nike's policy
The policy of Nike Company provides that it competes fairly and with vigor in every place
it does business. Also, the workers of the company must work in line with the set rules and
regulations for antitrust and competition globally and finally all the activities of the company must
Nike Company
5
be in line with the highest standards of ethics. However, the critical events that have occurred in
the company have gone to the contrary to the policy of the company. For instance, the avoidance
to pay taxes to the relevant authority has shown that the company does not run or work in the
direction of ethics as provided by its policy therefore as a result, the policy is negatively impacted.
Consequently, the avoidance of paying the taxes of the company translated to unfair competition
thus this particular practice affects the policy that provides that the company should operate fairly
(Ziek, 2012).In addition, the company has been on the limelight of providing workers with poor
working conditions, very low wages, extended periods of working, harassment and harsh treatment
by supervisors and also child labor. These activities show that the company does not put the focus
on the wellbeing of its workers and also it is not sensitive to its workforce. This is an unethical
practice on the side of the company hence it is observed that the ethical aspect of the company's
policy is impacted negatively.
Leadership response to each critical event
The leadership of the company responded to each of the crisis in a way that ensured that
the image and face of the company were restored. The main and first step that was taken by the
leadership of the corporation to solve the issues is the acceptance of the misdeeds being associated
with the company. For instance, studies show that the company's leadership owned up to having
outlets in other countries. In response to the ownership of sweatshops, the leadership provided the
relevant and needed information regarding the running of the foreign outlets. According to studies
and research, it is clear that Nike Corporation is among the first companies that have listed all the
outlets that have been contracted by the establishment. Consequently, the company as accused of
employing underage children to be part of its task force. In response to this event, the leadership
did not deny the allegations rather accepted them. As a result, the top management of the company
Nike Company
6
came up with procedures and strategies that deterred the employment of underage persons. At the
time, the children who were employed were relieved of their duties. Studies have shown that the
number of underage individuals working in the corporation has greatly decreased. ("Nike-A Track
Record of Success," 2015). The company was accused of not paying their workers well, exploiting
them and also harassing them from time to time. To respond to this particular allegation, the
leadership of the company has raised the salaries and wages of the workers of the company. In
addition, the company has ensured that the workers are provided with favorable conditions for
work and the incidences of harassment have been reduced greatly.
Motivation to the response by the views and goals of the company
The motivation to the response by the leadership of the company is to increase the sales
and to remain relevant to the surrounding environment. The leadership of the company has realized
that for the company to run smoothly and effectively all the aspects of the CSR needs to be checked
and policies guiding them be changed accordingly. For instance, in the past, Nike was not focused
on ensuring that its production was safe to the surrounding environment. The process of production
utilized high levels of energy and also the waste realized was quite high (Moon, 2014).However,
this practice is eventually changing and the company is seen to be among the many companies that
have pledged to protect the environment by realizing zero waste through various practices such as
reuse and recycling. In addition, the company's focus on the well- being of the workers has greatly
improved. It is notable the workers of the company have been given good working conditions.
Consequently, in a bid to ensure that there are increased sales in the company which is one of the
motivating factors, the leadership of the company has been at the front line in ensuring that
working conditions and the treatment of workers is favorable and is good respectively. A change
Nike Company
7
in the attitude of the treatment of the workers seeks to improve the productivity and performance
of the workers thus increasing the sales of the company.
Ramifications of the response
The responses to the crisis have had a number of positive impacts or ramifications to the
company. Among the many impacts is that the company has increased its performance and
productivity. The performance and productivity of the company have been as a result of the
increased focus on the wellbeing of the workers. It important to note that the workers of a company
play important tasks in ensuring that the activities of the company run smoothly and that the
products produced are of high quality. High-quality goods appeal to the customers thus prompting
return customers for repeat purchases and in addition, they attract new and potential customers.
These eventualities result in increased production thus increased sales for the products of the
company. In addition, the response of the leaders of the company has resulted in an improvement
of the face and the image of the company, therefore, it can easily stand out in competition with
other rival companies ("Better logistics are associated with higher productivity," 2016).
Proactive action towards the new CSR policy (internally and externally)
The company has changed the way it handles its workers so as to ensure that new policies
relating to corporate social responsibility. The company realizes that workers are part of the major
aspects that propel a company forward towards its success and growth. In that case, the company
changed the treatment of its workers hence the workers feel more comfortable and satisfied thus
increasing their competency. In addition, the company has been increasing its focus on innovation
(Watford, 2014). Innovation has become the major route that is being followed by companies and
institutions that need to grow and become successful in the future. Innovation seeks to satisfy the
needs and demands of the consumers thus satisfying the corporate social responsibility policies of
Nike Company
8
the company. Externally the company has been on the front line to ensure that it reduces the
amount of waste that is to be produced during production. In addition, the company has ensured
that it has a strategy that is used to put aside some finances for supporting individuals around the
society in which it is located ("Better logistics are associated with higher productivity," 2016).
Conclusion
In conclusion, the Nike Company has been on the leading since its establishment. Its
outstanding performance has been as a result of the quality of the products produced by the
company. However, between the years 1980 and 1990, the company has been faced by a number
of controversies that threatened its reputation. The company was accused of having outlets in
foreign countries whereby the workers were paid poorly and overworked. The company was also
accused of employing underage children, and also an evasion of taxes. The leadership of the
company responded appropriately to the accusations and the sales of the company have risen since
then.
Nike Company
9
References
Better logistics are associated with higher productivity. (2016). doi:10.1787/9789264246768graph91-en
Nike-A
Track
Record
of
Success.
(2015).
Digital
Disciplines,
151-164.
doi:10.1002/9781119039730.ch10
Beresin, A. R. (2010). “Nike, Nike, Who Can Do the Nike?”. Recess Battles, 63-76.
doi:10.14325/mississippi/9781604737394.003.0005
Carbasho, T. (2010). Nike. Santa Barbara, CA: ABC-CLIO.
Ciocchetti, C. (2013). Article III: Cases & Controversies - Teaching the Already v. Nike Case.
SSRN Electronic Journal. doi:10.2139/ssrn.2270905
Lebron, W. J. (2010). The Best Fashionable Nike Shoes – Nike Air Rift. SSRN Electronic Journal.
doi:10.2139/ssrn.1649842
Moon,
J.
(2014).
2.
The
company
level.
Very
Short
Introductions.
doi:10.1093/actrade/9780199671816.003.0003
Watford, M. (2014). Corporate Social Responsibility: Case Study of Nike, Inc.
Ziek, P. (2012). CSR Infrastructure for Communication and the Nike Controversy. Journal of
Management and Sustainability, 3(1). doi:10.5539/jms.v3n1p63
Different Discussion Notes:
Discussion 1:
Really appreciate reading about the 'Fly Knit' as a innovation trend that affected Nikes CSR
policy. I have been reading so much about Nike it is all running together in my head. But I
thought I read that the 'Fly Knit' material had an environmental impact of minimal waste. And
the waste was actually put back into the production of additional shoes meaning the process was
close to 'zero waste' . The International Organization for Standardization (ISO) created
guidelines number 14001 specifically to protect the environment by policy and create
consistency for organizations to use as a management system. Neither the ISO nor the or
guidelines are regulated once implemented. Consequently, a ‘Plan-Check-Do-Review-Improve’
(PDCA) is used for self-regulation, (ASQ,2019). The ISO 14001 plus the remaining guideline
articles make up the Environmental Management Systems (EMS). As a collective the ISO goal
is to provide any sized organization the means to create a policy that holds themselves
accountable with provisions regarding the following topics:
•
•
•
•
•
•
•
Context of the organization
Leadership
Planning
Support
Operation
Performance evaluation
Improvement (ASQ 2019)
Reduction of waste is one of the ISO suggested areas for reducing the environment's impact. So
the new Nike innovation really did help its sustainability efforts.
References:
ASQ . (2019). WHAT IS ISO 14001:2015? ENVIRONMENTAL MANAGEMENT SYSTEMS
STANDARD.ASQ The Global Voice of Quality Online. Retrieved from: https://asq.org/qualityresources/iso-14001
Mintz, S. (2012, March 16). Triple Bottom Line Reporting: Nike Pays Attention to its Corporate Social
Responsibilities (CSR). In www.workplaceethicsadvice.com. Retrieved from
https://www.workplaceethicsadvice.com/2012/03/triple-bottom-line-reporting-nike-pays-attention-toits-corporate-social-responsibilities-csr.html
Discussion 2:
I enjoyed reading your post and I like how you incorporated the TBL as a
reference to the switch by Nike in their quest for global expansion in the
marketplace. What Nike did through resistance at first then realizing they
needed to change not just what they were producing but how they operated
as an entity was well highlighted by Kotter as you mentioned.
This brings to mind another company that was influenced by societal trends
that adopted TBL for better business as part of people profit and planets, the
Dow Chemical company. For years this company pursued and produced of all
kinds of materials that not only themselves were considered toxic, such as
agent orange, but they used scare resources, and polluted the environment
and working facilities and communities they were located in. Dow learned to
adopt CSR through sustainability to reduce their global footprint and respect
the demands of consumers, NGO and government agencies as valid
stakeholders, much like Nike did. This came about by pressure by NGO’s,
government agencies and community members to change their whole
approach to producing materials that were in demand, but did not alter the
supply chain and recipients in such negative ways. Dow has very transparent
sustainability reports as well has become very involved in community
enhancement with great programs for employees as well as the company to
give back to the communities they are working in on a global scale.
Discussion 3:
The most infamous global factor that influenced the development of Nike's CSR Policy is in the
1990's when Nike's own customers that largely consisted of college students turned on the
company after reports that they employed suppliers in Asia that were treated inhumanely,
subjected to hazardous working conditions and paid very poorly. This became a controversy into
the late 1990's when Nike decided to shift their approach on the situation from managing their
reputation by being defensive to admitting there was a problem and vowing to fix it.
Another societal issue that Nike faced which contributed to the CSR Policies today is a loss of
trust amongst it's consumers. As the CEO Phil Knight announced to the National Press Club in
1998 "The Nike product has become synonymous with slave wages, forced overtime, and
arbitrary abuse." The company had to rebuild the trust that it lost from consumers. It wasn't
enough just to agree to include CSR policies as it relates to supplier factories, the company had a
find a way to rebuild it's reputation as an honest and innovative company. They were able to do
this with transparency. They released CSR reports annually to stakeholders so they were
accountable and it was clear what was working and what was not. They involved board members
in a Board Level CR Committee and even released a list of their suppliers so that Non Profit
Organizations could come in and help improve communication and working conditions. The
company's commitment to transparency resulted in a huge shift in the way consumers viewed the
company.
Nike also took a proactive approach to Environmental sustainability. The company had
discovered that water conservation was an issue that they could help improve upon. They began
to track their water usage, identify opportunities for water conservation and even taken steps
towards implementing a new carbon based dyeing process that does not use water or chemicals.
Sources Cited:
Abnett, K. (2016, November 01). Just Fix It: How Nike Learned to Embrace Sustainability.
Retrieved from https://www.businessoffashion.com/articles/people/just-fix-it-hannah-jones-nike
Paine, L.S., Hsieh, N., & Adamsons, L. (2016). Governance and sustainability at Nike (A). HBS
9-313-146. Boston, MA. Harvard Business School Publishing.
Newell, A., & Jun. (2015, June 18). How Nike Embraced CSR and Went From Villain to Hero.
Retrieved from https://www.triplepundit.com/special/roi-of-sustainability/how-nike-embracedcsr-and-went-from-villain-to-hero/
Discussion 4:
When identifying the global and societal factors that influenced the development of
Nike’s CSR policy, they can be evaluated in regards to the Triple Bottom Line. This
processes encourages that “investors should target companies with a proven track
record in environmental and social responsibility” (ArthaMoney, 2017, p. 1).
Following these guidelines allow for a company to ensure that they are delivering
balance in three key areas- social, economic, and environmental. By having a CSR
policy and company standards that address all three of these areas, the company is
showing their commitment to environmental and social responsibility. Furthermore,
by successfully executing the plan, they are showing not only their commitment, but
also their dedication.
Social: In the 1990s, Nike faced major criticism for their work conditions in many of
their factories. This paved the way for the start of the movement for Nike to create a
CSR policy. The first step in the process was for Nike to implement their factory Code
of Conduct which was introduced in 1991 (Nisen, 2013). The company knew that
they needed to take steps to show they were a socially responsible company
because the harsh opinions from consumers and critics was having an impact on the
bottom line of the business. Throughout the 1990s, negative feedback continued on
the company, including strikes during the Olympics as well as by many college
students (Nisen, 2013). Nike’s image had drastically suffered and a brand rebuild was
crucial. This has a tremendous impact on the way that Nike developed their CSR
policy because they knew they needed to be intentional with their plan, transparent
with their communication to all stakeholders, and show deliberate execution.
Economic:"Nike was targeted by campaigners because it was the world's best-selling
brand and because initially it denied responsibility for any malpractice that may be
taking place in its sub-contractor factories” (Birch, 2012, p. 1). At the start of the
criticism in the 1990s, Nike was the largest company in the industry, therefore having
the largest impact. Due to this, the company’s social responsibility was that much
greater. In 2005, Nike took the initiative with another step of transparency,
releasing “a detailed 108-page report revealing conditions and pay in its factories
and acknowledging widespread issues” (Nisen, 2013, p. 1). This came after promising
the Fair Labor Association in 1999, which ensured many things for employees in
regards to fair working conditions, the economic factors including fair pay for these
employees (Nisen, 2013).
Environmental: In effort to show transparency to stakeholders, Nike made a bold
move to show just how committed they were to global sustainability. This started
with the speech made by then CEO Phil Knight who acknowledged what they brand
had become, a name “synonymous with slave wages, forced overtime, and arbitrary
abuse”, and that the company was going to take every effort to change that (Nisen,
2013, p. 1). The company then implemented the OSHA regulations for the United
States in all factories, regardless of the country they were in. This ensured that all
employees working for or with Nike were being provided fair working conditions
(Nisen, 2013). In 2005, the company took another major step by providing complete
transparency with all of the factories under contract with Nike that was accessible to
the public, being the first company to make this move (Nisen, 2013). This step
showed exactly how committed to corporate social responsibility Nike was and that
they were going to continue to deliver for the employees and the customers.
Reference:
ArthaMoney. (2017, October 17). People, Planet & Profit — Triple Bottom line — The Ethical
Measure of Businesses. Retrieved from https://arthamoney.com/people-planet-profittriple-bottom-line-the-ethical-measure-of-businesses-53750035035f.
Birch, S. (2012, July 06). How Activism Forced Nike to Change its Ethical Game.
Retrieved from https://www.theguardian.com/environment/green-livingblog/2012/jul/06/activism-nike.
Nisen, M. (2013, May 09). How Nike Solved Its Sweatshop Problem. Business Insider.
Retrieved from https://www.businessinsider.com/how-nike-solved-itssweatshop-problem-2013-5.
Discussion 5:
i everyone,
I hope everyone in the northern New England areas are staying warm! It’s getting a little old
waking up to -15 degree weather!
The three global or societal factors I would like to discuss that may influence the development
of Nike’s CSR policy are the three ‘P’s of course: people, planet, and profit. During OL 690
(Responsible Corporate Leadership) we were exposed to the ethical burdens faced by
organizations on a daily basis. My report looked into Waste Management, Inc. and their
practices in helping the people, planet, and profit. In his talk about a business model involving
quality, time, and money, Bob Davids expressed his concerns about one term take precedence
over the other two (TEDx Talks, 2012). I think the same thing can be said about the three ‘P’s of
Corporate Social Responsibility (CSR). If too much effort is put into the planet, the people and
the profit suffer; if too much effort is put into the people, the planet and profit suffer; if too
much effort is put into the profit, the people and planet suffer. Every business is faced with the
three ‘P’s and have to organize their efforts to create an equilibrium.
Nike is on its way to organizing its business model to focus on the people and the planet,
however I’m not quite sure that it has figured out how to make a profit from the ideas that are
coming across the board. In terms of people, Nike has a large, diverse population that they are
trying to sell a product to. Children, teens, adults, and older generations are looking at their
streamlined clothing, equipment, and shoe brands to help them achieve different goals. These
goals, however, can never be 100% clear with the business so they have to make sure they are
always proactive in determining the next ‘big thing’. For planet, Nike faced a lot of backlash for
years for their poor working conditions and wages, but they also needed to freshen up the view
on environmental factors. By implementing the DyeCoo Technology, the company was able to
breakdown the amount of water used each day during production (Paine, Hsieh, & Adamsons,
2016). Lastly, profit is a solid need for every company hoping to stay afloat even for a year. The
company has to continuously come up with ideas that will help them become a leading
production unit in their industry, but they also have to make sure they gain a profit from what
they sell. If you mark a product too steep, there will be no consumers to buy. Mark it too low
and you risk losing consumers who question the viability or durability of the product.
The perfect product, for example, would be:
•
•
•
•
•
•
One that didn’t break the bank for the consumer
One that didn’t negatively impact the environment from the first production days to the shelf
date
One that met every single need of the consumer
One that lasted long enough to be worth the money
One worth the money that helped increase profit
One that was not designed or created in harmful, harsh, or underpaid work environments
Do you think there will ever be an equilibrium hit with all three of the ‘P’s? How do you hit that
equilibrium with a world that changes each and every day? If equilibrium was met in each
business, do you think that there would be less competition because everyone was equal, or do
you think that there would be some sort of downfall?
Have a good rest of your week, everyone!
Chyanna
References
Paine, L.S., Hsieh, N. –H., & Adamsons, L. (2016). Governance and sustainability at Nike (A)
[PDF]. Harvard Business School, 1-32. Retrieved from
https://hbsp.harvard.edu/coursepacks/552647
TEDx Talks. (2012, April 10). The rarest commodity is leadership without ego: Bob Davids at
TEDxESCP [Video file]. Retrieved from https://www.youtube.com/watch?vUQrPVmcgJJk
Discussion 6
Nike's history really does represent how much power the consumer has. When looking at Nike's
CSR policies from the standpoint of the Triple Bottom Line, the 1990's version of the company
was focused on profits without any regard to people or the Planet. This all changed when the
Nike approach shifted in 1998. The company brought innovative ideas that shifted CSR policies
as a whole for many companies. Their decision to be completely transparent with the public and
release their list of suppliers went a long way towards rebuilding the trust of their consumers.
Similarly their decision to make a greater effort toward environmental sustainability put them
ahead of the curve as a CSR company. Despite the fact that the consumer has a lot of power,
Nike has the ability to change and grow in a way that has benefited them and made the company
largely successful.
Sources Cited:
Abnett, K. (2016, November 01). Just Fix It: How Nike Learned to Embrace Sustainability.
Retrieved from https://www.businessoffashion.com/articles/people/just-fix-it-hannah-jones-nike
Teacher: Questions:
As we continue to explore Nike and their approach to developing and fostering their approach, I pose
this to you and your classmates. What is a consumer's threshold when it comes having their trust
broken? Does it depend on the 'infraction'? Is there a time limit? Think about that in regards to some
of the other epic failures in the the areas of CSR.
As Nike looks to the past for important lessons and moving forward to the future, what should take
priority when it comes to their CR initiatives? Should it be what corporate feels is important or should
their efforts be tied to the local needs of their employees and partners? Explain your reasoning and the
impact it will have on all stakeholders moving forward.
Discussion 7
There are several views and definitions of external forces on business, all geared toward
analyzing opportunities and threats. Whether we call it SWOT analysis, or External Forces
Evaluation (EFE), we look at various factors that are considered beyond the control of a
company. Porter's "5 Forces" model, for example, states that most organizations are shaped
mostly by external events (Kenton, 2017). Porter identifies these forces as:
1. Competition;
2. Potential of new entrants into the industry;
3. Power of suppliers;
4. Power of customers;
5. Threat of substitute products.
EFE may actually list many more than those, or break them down into further subcategories. It
also assigns a numerical (percentage) weight of importance for each factor, which helps in
deciding which strategy is most desirable (Jurevicius, 2014).
Three of the most weighty factors on Nike are globalism, environmentalism, and power of the
consumer. Change in the global market first dictated that shoemakers would abandon the U.S.
and Japan and starting manufacturing in Southeast Asia, for example. Changes in developing
economies and markets increase the potential for new entrants in market and price
competitiveness (Kissinger, 2017).
The environmental movement and social ethics awareness have also made a huge impact on
Nike. In fact, they forced Nike to adapt to corporate social responsibility. Its attempts to recycle
shoe materials, eliminate certain onsite hazardous chemicals, and reform its labor practices were
all dictated by external CSR needs.
Finally, the power of the buyer is illustrated as well in the history of Nike. When people
perceived Nike as a villain of exploitation, sales started to fall. More recently, more conservative
or patriotic people loudly boycotted Nike because of its association with Colin Kaepernick. His
political views were too controversial with them. However, investing by millennials actually
went up and increased Nike presence. A SWOT analysis by the Panmore Institute recommends
that Nike must do better in strategy to face up to its main threats: competition, labor practice
concerns, patent protection, and imitation of products (Kissinger, 2017)
References:
Jurevicius, O. (2014). IFE and EFE Matrices. Strategic Management Insight. (October 20,
2014). https://www.strategicmanagementinsight.com/tools/ife-efe-matrix.html
Kenton, W. (2017). Porter's 5 Forces. Investopedia. (November 20,
2017). https://www.investopedia.com/terms/p/porter.asp
Kissinger, D. (2017). Nike Inc. SWOT Analysis & Recommendations. Panmore Institute.
(February 7, 2017). http://panmore.com/nike-inc-swot-analysis-recommendations
Discussion Reponse:
Nike's history really does represent how much power the consumer has. When looking at Nike's
CSR policies from the standpoint of the Triple Bottom Line, the 1990's version of the company
was focused on profits without any regard to people or the Planet. This all changed when the
Nike approach shifted in 1998. The company brought innovative ideas that shifted CSR policies
as a whole for many companies. Their decision to be completely transparent with the public and
release their list of suppliers went a long way towards rebuilding the trust of their consumers.
Similarly their decision to make a greater effort toward environmental sustainability put them
ahead of the curve as a CSR company. Despite the fact that the consumer has a lot of power,
Nike has the ability to change and grow in a way that has benefited them and made the company
largely successful.
Sources Cited:
Abnett, K. (2016, November 01). Just Fix It: How Nike Learned to Embrace Sustainability.
Retrieved from https://www.businessoffashion.com/articles/people/just-fix-it-hannah-jones-nike
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