• 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. Unit 12 - International Dimensions of Business Task 1

    All of these factors will contribute as to whether or not the objectives set can be seen as SMART; specific - this means the objective must be precise and clear and specific to what the business is aiming to achieve; measurable - this means company owners should easily be able

  2. Unit 9: Marketing Strategy

    18s listed here as students and the 40% of over 65s listed here as retired. The 47% retirement level suggests that some people under 65 have taken early retirement. Jobs in the "other" category included Local Government Officers, Business People and Cleaners.

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

    In different nations, factors like management structures, working morale, or interactions between companies are shaped differently. This will provide advantages and disadvantages for particular industries. Typical corporate objectives in relation to patterns of commitment among workforce are of special importance. They are heavily influenced by structures of ownership and control.

  2. Case study of The Jollibee Foods Corporation

    King, in mainland China, and a popular teahouse chain from Taiwan called Chun Shui Tang (Spring Water Hall). Chun Shui Tang teahouse opened a branch on Shanghai's Huaihai Road on June 30, 2006. On July 25, 2007, Jollibee launched its pilot restaurant "Tio Pepe's Karinderia" in Edsa Central in Mandaluyong, to professionalize the Philippine carinderia business.

  1. Business plan for international restaurant on campus

    This gave us the confirmation that students really feel the need for such a business opening on campus. ABSTRACT This business plan is aimed at examining the potential in the market for an international restaurant to be opened on Loughborough University campus.

  2. Business Studies Company Recruiting

    Sonja Porter Sonja Porter is a Senior Surveyor in Cluttons. She reports the partner, in this case Robert Sears, and she is reported to by the Graduate Surveyors. Her main responsibilities are: * She is the surveyor responsible for the on-going management of rural property portfolios owned for institutional and private clients throughout the South East of England.

  1. 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

  2. Case study of the Unilever Company

    Actually this multinational is managed by Paul Polman, who represents the board of Unilever executives from the beginning of February 2011. He is the chief executive officer of the multinational, the rest of the members are: Jan Zijderveld, Jean Marc-Huet, Douglas Baillie, Geneviève Berger, Dave Lewis, Harish Manwani, Michael Polk, Pier Luigi Sigismondi and Keith Weed.

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