• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

IPE Case Study on Nike.

Extracts from this document...

Introduction

Ernie Gilbert Ken Gilmore IPE Case Study #3 Nike. The word in Japanese means victory. However in the past two decades it has become synonymous with sweatshops and anti-globalization. Nike's image has grown into one of a sweatshop employer, forcing young women especially to toil long hours in difficult conditions for substandard wages. Le, a 19-year old woman living on the outskirts of Ho Chi Minh City in Vietnam, worked in a factory making Nike shoes. She worked six day weeks for $1.84 per day or $48 per month in 1998, slightly better than Vietnam's minimum wage for the region. With the rise of Multination Corporations or MNC's in the past 50 years several key questions are being debated. ...read more.

Middle

This is because of the competitive nature of the industry. In table 1 of the case study, we see the break down of pricing for a 70 dollar pair of shoes. From that pair of shoes about $2.75 goes into workers' hands. A common theme runs throughout the very competitive industry of athletic products, branding. Both the largest barrier to entry and the most valued angle of production is this concept of branding. With fads rampant in the developed world your brand name means that much more. This is why $9.25 goes to the research and development, the promotion and advertising, and sales, distribution, and administration of the same 70 dollar pair of shoes (table 1). ...read more.

Conclusion

So what causes the disparity? The nations of Taiwan and South Korea have So who does Nike have responsibility to? In reality anyone who cares about anything that the Nike MNC effects. It was easy to see how NGOs could stir up such distaste with Nike. Therefore Nike had to put in place standards on the factories and their workers or face huge declines in sales as their "image" went sour in the spotlight of global markets. This was the worst thing that could have happened to a company that depends so much on its image to sell its product. Nike is no longer sold in many Colleges because of the action of a few NGOs who wanted to see a change for the better. In the following chart obtained from The Wall Street Journal, February 22, 2001 shows the break down in nine Nike supplier factories. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Case Studies and Analysis section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Case Studies and Analysis essays

  1. Marked by a teacher

    Wace Burgess Case Study

    4 star(s)

    Speed will enhance all operations, offering M&S products fast, if Wace Burgess were sufficiently fast at making the orders and sending it them this will result in M&S making more orders with Wace Burgess as well as other retailers. Speed will result in M&S having immediate availability of goods because

  2. Tesco and marks & Spencer case study

    Different types of Tesco store Tesco extra This type of store is the largest store it is larger than any store that Tesco has it offers everything that Tesco has to offer for its customers, its purpose is to shop for anything that customer's desire; this type of store is

  1. Microsoft Case Study. Objectives, structure and marketing.

    Normally products in a product life cycle which have reached the decline stage could be put under this heading. Products under this heading will normally absorb cash which is generated from other products. These products could be said as the break-even units as they make barely enough cash to keep small amount of market share.

  2. Working in Administration

    The administrator will also have to order foreign currency and ensure travel permits (visas) are obtained where necessary. A junior administrator may have to make this kind of arrangement for senior employees of the Tax Department or Corporate Finance Department.

  1. Business plan for international restaurant on campus

    Method one: 5 out of 21 questionnaires were conducted with the interviewer filling in the questions after respondents gave verbal answers. The interviewer asked questions exactly as written, with all the options and instructions read out. Questionnaires were placed in front of the respondents to allow them to review the options before giving an answer.

  2. Analyse the case study with reference to Michael Porter's Theory of Competitive Advantage and ...

    They also include factors like quality of research on universities, deregulation of labor markets, or liquidity of national stock markets. These national factors often provide initial advantages, which are subsequently built upon. Each country has its own particular set of factor conditions; hence, in each country will develop those industries for which the particular set of factor conditions is optimal.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work