Introduction
The sustained global success of Nike Inc. can be attributed to the company’s ability to diversify its product offerings. The organization distributes a variety of brands around the globe. The company’s ability to maintain consumer loyalty has consistently generated substantial revenue.
According to Eyada (2020), Nike Inc. shareholders continue to profit from the stock market despite the company’s stock price falling to $111.00 in 2020. In comparison to the stock prices of other multinational corporations, Nike Inc. stands out as a formidable competitor. The majority of Nike’s revenue is generated from the sale of athletic apparel and footwear (Kim, 2020). In 2018, footwear accounted for nearly 42 percent of the company’s total revenue.
Due to its committed workforce, Nike has maintained its presence in over a hundred markets as the demand for its products increases globally (Tighe, 2022). Principal consumer bases are in Asia, the United States, Europe, and South America. Nike Inc. produces more than 27 percent of all footwear worldwide (Tighe, 2022). Nike’s growth and prosperity have been fueled by its innovative product development techniques, creative marketing campaigns, and strong consumer brand recognition.
Company Background
Nike, Inc. is a global footwear manufacturer and among the highly esteemed brands across the globe. Since its inauspicious beginnings in 1964, when the brand was first introduced, the company has come a long way; each year, its sales and profits have increased. As the company grew and captured a larger share of the market, Nike Inc. was able to diversify into other product categories (Tighe, 2022). According to sales figures, Nike Inc. has produced sports equipment, a product category in which the company has gained market share in recent years.
Kim (2020) demonstrates that the company strives to be a source of inspiration and innovation for athletes worldwide. As a result, Nike Inc. constantly pushes the limits of what is possible for people through innovations in product design and manufacturing. In addition, Nike aspires to cultivate a globally diverse and innovative workforce supported by eco-friendly products (Kim, 2020). Nike, Inc. is committed to the research and development, invention, and global promotion of athletic apparel, footwear, components, and services. In addition to its website, the company has over 20,000 locations where its products are sold.
Problems and Symptoms
Initial observations indicate that Nike Inc. has inadequate working conditions for its employees. This is a common issue for manufacturing facilities that outsource their work to other countries. These difficulties harm the organization’s reputation and erode customer loyalty. Moreover, the production of shoes and other footwear is labor-intensive (Kim, 2020). This necessitates that Nike Inc. divide the production process into separate departments.
Consequently, the company engages in the marketing, producing, and distributing its products (Cronin & George, 2020). Designers and researchers at the organization contribute to developing new products and services per clients’ evolving desires and needs. Another issue within the organization is the outsourcing of production to third parties. The company is responsible for all production processes and quality control. Due to their minimal production costs, developing nations are frequently employed for manufacturing. Low wages, long hours, and hazardous working conditions all contribute to the increase of unfair labor practices.
Evidence
Nike, the organization’s primary brand, has been embroiled in controversy in recent years due to revelations about substandard working conditions in the company’s factories. Consequently, ample evidence indicates the employees’ issues within Nike Inc. and the corporation’s various challenges. According to Rasmussen et al. (2021), Nike Inc.’s declining operations are associated with deplorable working conditions. Concerns regarding child labor have also been voiced in Asia and Latin America. Additionally, it is widely believed that Nike Inc. profited from exploitative labor.
Bangladesh is a significant textile supplier, and Nike Inc. obtains most of its apparel from there. However, the majority of outsourced employees endure low wages, long hours, and deplorable working conditions (Rasmussen et al., 2021). Nike Inc.’s labor practices in several subcontracted businesses violate International Labor Organization standards.
Employees may be required to work longer than anticipated hours per week. There is a lack of ventilation in the majority of workplaces. Additionally, employees frequently receive what are believed to be manufacturing byproducts. The organization struggles to achieve a balance between respecting the rights of contracted workers and generating a profit.
Team Behavior Themes
The Nike case illuminates a wide variety of organizational design and transformation-related topics. When the production process is separated into two significant phases, it is evident that the corporation loses control of its manufacturing operations, and collaboration suffers. Nike Inc. only employs scientists and artists who can devise novel solutions to market problems; the outsourced company’s employees manufacture the products. Thus, it is the responsibility of the manufacturer to provide a safe and pleasurable workplace. The division of labor results in a lack of cooperation and deteriorating working conditions because all factories are concerned with minimizing production costs; changes in Nike, Inc.’s collaboration practices occur frequently (Kim, 2020). The company’s initiatives have led to significant improvements in both collaboration and working conditions at production facilities.
Teamwork is essential, particularly when meeting the company’s increased standards for product superiority and customer satisfaction through innovation. The relationship is severed when an outsourced company violates the organization’s labor policies and procedures. The company’s objective is to improve its performance, and it intends to do so by producing high-quality goods and maintaining employee engagement (Kim, 2020). The company’s collaboration with its external partners increases its awareness of the various factors that influence its operations and the quality of life of its employees.
Data Gathering
To address the study problem effectively, the researcher will employ a qualitative research perspective and descriptive methodology. The primary objective of qualitative research is the collection of non-numerical data. Qualitative research methodologies are ideally adapted for situations with limited understanding of phenomena, and efforts are being made to generate new ideas or modify existing perspectives.
According to Eyada (2020), qualitative research allows researchers to comprehend and interpret reality, delineate and clarify the social context, and develop explanatory frameworks and hypotheses. Significant emphasis will be placed on obtaining empirical data from teams within organizations to determine their perspectives and experiences regarding inspiration and motivational strategies.
The primary goal of a descriptive research design is to provide a thorough description of phenomena and their associated characteristics. Consequently, this strategy lends itself better to data collection techniques such as observation and surveys (Thunberg & Arnell, 2022). The researcher would ask Nike, Inc. employee teams to collect research data via online email questionnaires.
The analysis will employ quantitative methods, namely utilizing percentages and frequencies, to discover the most effective motivating approaches based on the opinions and experiences of the personnel. The process of data collection will be qualitative, and the questionnaires will include both open-ended and closed-ended questions. Among the queries to be asked are the factors that promote improved team performance, the types of incentives desired by employees, and the effect of monetary rewards on their motivation. The researcher will also inquire about employees’ preferred work hours, job patterns, and leadership styles.
Assessment of Information
Findings reveal how management and organizational concerns impact team output. Data collected through interviews with correspondents led to initiatives that increased the market worth of the companies involved. In the analysis, the researcher learned that employee teams play essential roles in every business. The results back up the initial assessment that ineffective treatment of workers has a detrimental effect on production by influencing employee behavior. Consequences and morale in the workplace suffer as a result. For instance, workers who cannot strike a good work-life balance often get overworked and stressed (Kim, 2020).
Furthermore, poor compensation reduces worker satisfaction, which in turn decreases productivity. When employees feel threatened in the workplace, they are less likely to provide their best to help the company improve its performance. This influences how they engage with the organization and how they go about their work to better complement the company’s overall mission. Attributable to this, the company’s output suffers, which in turn could lead to staff turnover.
According to the findings, some aspects of a company have the potential to either increase or decrease employee motivation, with subsequent effects on productivity. Difficulties experienced by workers have an impact on market operations and reduce the trustworthiness of the form in the international market. For instance, when shops and outsourcing agencies obtain low revenues, morale in the workplace tends to suffer. Their self-assurance could plummet, and they would be less motivated to do a good job.
The symptoms are a reflection of the root cause of problems that have an adverse effect on the company. For instance, employees often perform poorly when the issue is traced back to inadequate management and a hostile work environment. Employee morale is down since this has a negative effect on the organization’s output.
Self-Assessment
The researcher finds that the problems correlate with the fundamental cause because of the detrimental impact they have on the morale of employees. If employees are mistreated, they will lose motivation and efficiency, which could impact the business. Employees are a delicate aspect of the management structure; mistreating them can have a significant impact on business operations, leading to poor productivity and, ultimately, low revenue. An expert conducted the research and is completely unbiased in the use of market data.
Moreover, no connections could impede the development of accurate information on the company’s performance (Thunberg & Arnell, 2022). This study is legitimate since it considers the data’s veracity and usefulness in an ethical manner. This eliminates potential roadblocks to gathering information, analyzing data, and making decisions that improve the new regulations’ ability to safeguard workers from unsafe conditions and unjust treatment in the workplace.
Synthesis
Nike’s problems have more significant effects on the company’s management, manufacturing, sales, and marketing. Lack of balance between work and life, inappropriate working environment, inadequate compensation, and improper treatment of employees are all contributing factors. The study results conclusively demonstrated that the problems have an impact on company teams.
The firm’s efficiency and ability to transform corporate cultures would suffer accordingly. As a result, workers become less productive and more resistant to leadership shifts (Kim, 2020). The management should implement several workplace reforms to increase employee morale and productivity. The company should respect employees by giving them sufficient time off to refresh and develop their expertise without sacrificing productivity.
When employees are overworked, they become irritable and depressed, which can have a negative impact on productivity. Company leadership also needs to think about employees’ pay (Thunberg & Arnell, 2022). Managers can serve as role models for the rest of the company, and employees can be encouraged to use their expertise if they are compensated at market rates.
The literature analysis highlights the lack of agreement on the most successful motivational tactics, as well as the skewed attention paid to national enterprises to the detriment of global ones. The present literature does not provide a clear picture of what drives workers in varied settings. In a well-managed workplace, issues affecting employee teams and the company are more likely to be addressed.
Conclusion
Nike Inc.’s global success is largely due to its ability to diversify its product offerings. The company’s growth has been driven by innovative product development, creative marketing strategies, and strong brand recognition. However, unfair labor practices, including low wages, long hours, and unsafe working conditions, have become more prevalent. Nike, the company’s flagship brand, has faced controversy in recent years due to reports of poor working conditions in its facilities.
To address the research issue, the study will adopt a qualitative and descriptive research approach. Employee performance often suffers when leadership is ineffective and the work environment is hostile. The company should show respect for its workforce by offering adequate time off and opportunities for skill development without sacrificing productivity. In a well-managed workplace, challenges affecting both employees and the company are more likely to be resolved.
References
Cronin, M. A., & George, E. (2020). The why and how of the integrative review. Organizational Research Methods, 26(1), 168-192. Web.
Eyada, B. (2020). Brand activism, the relation, and impact on consumer perception: A case study on Nike advertising. International Journal of Marketing Studies, 12(4), 30-42. Web.
Kim, M. (2020). How Phil Knight made Nike a leader in the sport industry: Examining the success factors. Sport in Society, 23(9), 1512-1523. Web.
Rasmussen, K., Dufur, M. J., Cope, M. R., & Pierce, H. (2021). Gender marginalization in sports participation through advertising: The case of Nike. International Journal of Environmental Research and Public Health, 18(15), 7759. Web.
Thunberg, S., & Arnell, L. (2022). Pioneering the use of technologies in qualitative research–A research review of the use of digital interviews. International Journal of Social Research Methodology, 25(6), 757-768. Web.
Tighe, D. (2022). Forecast of Nike’s global market share in athletic footwear 2011-2025. Statista. Web.