Nike Case Study
1. List the various macro environmental factors that influence Nike’s strategy. Which seem most pertinent?
The social-cultural environment influences Nike Strategy, and it seems the most pertinent. Nike depends on the social environment to conduct its business. The company understands the importance of having a positive image to conduct its image, and it tries to avoid any negative publicity. Changes in people expectations and the attitude that people have towards the company have a lot of influence on the company. The social-cultural environment includes the views that society has towards the organization’s position. This is clear in the way the society intervened when it learnt of the poor, working conditions in various organizations and companies where Nike had outsourced its work. Although the factories were not located in the country, the people felt that they had to intervene, by compelling Nike to take more responsibility. The technological environment also influences Nike’s strategy. The company has changed several things concerning the manufacture of its shoes. The toxicity levels have compelled the company to look for other innovative methods of producing its shoes. It has changed from using toxic chemical adhesives to using the 3-D sewing machines to manufacture the shoes.
2. The case notes that performance is the most important decision criterion for professional basketball players. What criteria might be most important for regular customers who also buy these shoes?
Regular customers are also concerned with performance, though probably not to the same extent as the professional players. Most of the people who use the products are engaged in sports in different ways and different levels. For instance, some customers just buy the shoes to use while at the gym, or when they are jogging, or performing other forms of exercises. While these customers are not professionals, they want to purchase a product that will give them the results they intend. Therefore, they will look for a shoe that they feel comfortable in, and which they feel safe to use. They will look for a product that will enable them to exercise well, without any problems. Most customers are also concerned about the products durability, and they want a high quality product that will last long. The company understands that the youth compromise its largest market. This market is concerned about the look and feel of the product. They want to wear a product that makes them look and feel good. Some want to use the product that is used by their role model and fashion icon. Appearance is an important decision for the regular customers.
3. How does lean manufacturing coordinate or support green marketing?
Lean manufacturing uses production processes that uses fewer resources and minimize waste. Lean manufacturing encourages companies to identify ways of reducing the waste in all its process. This leads to a reduction in most of the resources used, including energy and green house gas emissions. Green marketing considers the effect that various products have on the environment. It encourages the manufacturing and packaging of products in an environmentally friendly way. Companies using lean manufacturing identify ways of reducing their consumption of various materials, leading to reduced emissions and effluents. Companies have to consider the effects of their actions to the environment. Companies using lean manufacturing try to be effective in their environmental management. They understand that polluting the environment will lead to them incurring additional costs, as they try to rectify their mistakes. Therefore, they will tend to avoid using products that will cause environmental pollution. In addition, they will ensure that the products they manufacture will not cause further environmental degradation. They will use energy sources that are less harmful to the environment.
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