Introduction
Nike Inc.’s continued success on a global scale can be attributed to its ability to diversify its product offerings. The company sells several different brands all around the world. The company’s success in maintaining customer loyalty has enabled it to generate much revenue consistently. According to Eyada (2020), Nike Inc. shareholders still reap profits from the stock market despite the company’s declining stock price of $111.00 in 2020.
Nike Inc. stands out as a formidable rival compared to other international corporations’ stock prices. The sale of sportswear and footwear accounts for the bulk of Nike’s revenue (Kim, 2020). In 2018, footwear accounted for almost 42% of the firm’s revenue.
More people across the world want to buy Nike products, and the corporation has been able to keep up its presence in over a hundred markets because of its dedicated workforce (Tighe, 2022). Main customer bases are in Asia, the US, Europe, and South America. On a global scale, Nike Inc. produces over 27% of all footwear (Tighe, 2022). Nike’s growth and prosperity have been fueled by the company’s innovative product development methods, creative marketing campaigns, and strong brand recognition among consumers.
Summary
Nike, Inc. is a global company that produces footwear and is one of the best-known brands in the world. The company has come a long way since its humble beginnings in 1964, when the brand was first introduced. Each year, sales and earnings in the organization have increased. Nike Inc. first focused solely on making sports shoes, but as the company expanded and gained a larger portion of the market, it could branch out into other product categories (Tighe, 2022). For instance, according to sales figures, Nike Inc. has produced sports equipment, an area where the company has recently gained market share. Kim (2020) shows that the corporation is constantly striving to be a source of motivation and innovation for athletes worldwide. Consequently, Nike Inc. is always pushing the boundaries of what is possible for people through cutting-edge developments in product design and production.
Additionally, Nike aspires to foster a globally representative and innovative workforce supported by environmentally friendly products (Kim, 2020). Nike, Inc. focuses on research and improvement, invention, and global promotion of sports apparel, footwear, components, and services. Apart from the organizational website, the company has more than 20,000 locations that offer its wares.
Problems and Symptoms
First impressions show that Nike Inc. has issues with subpar working conditions for its staff. Manufacturing facilities that outsource their work to other countries often have this problem. These difficulties damage the organizational reputation and the loyalty of its customers.
In addition, making sneakers and other footwear is a labor-intensive process (Kim, 2020). This requires Nike Inc. to split the production process into distinct departments. Therefore, the company is marketing, manufacturing, and distributing its products. Designers and researchers at the organization contribute to developing new products and services in line with clients’ evolving wants and demands (Cronin & George, 2020).
Another problem in the organization entails product manufacture, which is contracted out to other parties. The company is accountable for all manufacturing processes and quality assurance. Developing countries are frequently used for manufacturing due to their low production costs. Low wages, excessive hours, and unsafe environments all contribute to the rise of unfair labor practices.
Evidence
Nike, the flagship brand of the organization, has been mired in controversy over the past few years due to revelations concerning substandard working conditions in the company’s factories. Consequently, there is sufficient proof indicating the presence of the issue within Nike Inc., and multiple studies have examined the various challenges affecting the corporation. According to Rasmussen et al. (2021), the declined operations of Nike Inc. have been linked to deplorable working conditions. Child labor concerns have also been raised in Asia and Latin America. In addition, Nike Inc. is widely believed to have benefited from sweatshop labor.
Bangladesh is a major supplier of textiles, and Nike Inc. sources the vast majority of its apparel production from there. However, most workers in outsourced businesses endure low pay, long hours, and deplorable conditions. Nike Inc.’s labor practices in several contracted-out enterprises violate International Labor Organization standards (Rasmussen et al., 2021).
Employees may be required to work more hours per week than anticipated. There is a general absence of ventilation in most of the workplaces. In addition, employees frequently receive what are thought to be byproducts of the manufacturing process. To strike a balance between respecting the rights of contracted workers and turning a profit proves challenging for the organization.
Team Behavior Themes
The case of Nike illuminates a wide range of topics related to organizational design and transformation. It is obvious that the corporation loses control of its manufacturing operations, and collaboration suffers when the production process is separated into two significant stages. Nike Inc. only hires scientists and artists who can think of novel solutions to problems in the market. People employed by the outsourced company make the products. Thus, it is the manufacturer’s duty to provide a safe and pleasant workplace.
Since all factories are concerned with keeping production costs low, the division of labor results in a lack of cooperation and deteriorating working conditions. Regular alterations in teamwork practices are common at Nike, Inc. (Kim, 2020). The production facilities have significantly improved teamwork and working conditions because of the company’s initiatives.
Employees are under constant surveillance, and teamwork is essential, especially when meeting the company’s increased values for product superiority and client contentment through innovation. When an outsourced company fails to adhere to the organization’s labor policies and procedures, it ends its connection with them. The company aims to improve performance and plans to get there by producing high-quality goods and keeping its staff actively engaged (Kim, 2020). The firm’s collaboration with its external partners improves its awareness of the diverse factors affecting its operations and employees’ quality of life.
Conclusion
The continued global success of Nike Inc. can be attributed to the company’s ability to broaden its product offerings. Principal customer bases are in Asia, the United States, Europe, and South America. Nike’s success and expansion have been fueled by its innovative product development techniques, creative marketing initiatives, and strong consumer brand recognition.
The organization’s developers and researchers contribute to creating new products and services in response to clients’ evolving requirements and desires. The organization faces difficulty striking a balance between valuing the rights of contracted employees and turning a profit. Since all factories are interested in low production costs, the division of labor causes a lack of collaboration and deteriorating employee conditions.
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.
Tighe, D. (2022). Forecast of Nike’s global market share in athletic footwear 2011-2025. Statista. Web.