The Current World Economy Is Increasingly Becoming Integrate ✓ Solved

The Current World Economy Is Increasingly Becoming Integrated And Inte

The current world economy is increasingly becoming integrated and interdependent; as a result, the relationship between business and society is becoming more complex. In this assignment, you will be researching the Fortune 500 company NIKE. Write a 4–5 page evaluation of your chosen company’s performance with respect to its stated values. Do the following: Summarize the company’s primary products and or services. Suggest three ways in which the primary stakeholders can influence the organization’s financial performance. Provide support for your response. Describe two critical factors in the organization’s external environment that can affect its success. Support your assertions. Assess the company’s biggest success or missed opportunity to respond to a recent or current social issue. How did it impact company performance?

The specific course learning outcome associated with this assignment is to evaluate the relationship between a business and society based on external environmental factors, stakeholders, and corporate social responsibility issues. Integrate at least two supporting resources.

Paper For Above Instructions

Introduction

As globalization continues to shape the landscape of commerce, the relationship between businesses and society has become increasingly intricate. Nike, a major player in the global sportswear market, exemplifies the complexities of this relationship. This paper evaluates Nike’s performance, ideals, and stakeholder influences, while also examining external factors and social issues impacting the company's operations.

Overview of Nike’s Products and Services

Nike, Inc., founded in 1964, is renowned for its athletic footwear, apparel, and equipment. Some of its flagship products include the iconic Air Jordan and Air Max sneaker lines, as well as a wide range of sporty apparel including shorts, tops, and specialized gear for various sports. Beyond products, Nike has developed digital platforms like the Nike Training Club app, enhancing consumer engagement through technology. With a clear mission of "bringing inspiration and innovation to every athlete in the world," Nike strives to cater to diverse consumer needs while promoting a lifestyle aligned with health and fitness.

Stakeholder Influence on Financial Performance

Nike’s financial performance can be significantly affected by its primary stakeholders, each wielding unique influence over the organization. Three primary stakeholders include consumers, employees, and investors.

1. Consumers: The buying behavior of consumers directly influences sales revenue. Nike must continually assess consumer preferences and market trends to remain competitive. Effective marketing strategies, including endorsements from popular athletes and collaboration with influencers, can boost brand loyalty and, therefore, financial performance (Kotler & Keller, 2016).

2. Employees: The workforce is crucial in driving innovation and efficiency. Empowering employees through training and fostering a positive workplace culture can lead to enhanced productivity. Furthermore, Nike’s commitment to diversity and inclusion can improve employee satisfaction, which in turn impacts the overall output and quality of products (Woods, 2020).

3. Investors: Investors monitor company performance closely. Their confidence can be swayed by Nike’s transparency and ethical practices. Regularly communicating about corporate social responsibility (CSR) initiatives and financial health can maintain investor relations and potentially attract new capital, impacting stock performance and overall financial standing (Harrison et al., 2019).

Critical External Factors Affecting Success

Two critical external factors impacting Nike's success include economic conditions and regulatory environments.

1. Economic Conditions: The global economic climate heavily influences consumer spending habits. For instance, during an economic downturn, consumers may opt for cheaper brands or postpone purchases, adversely affecting sales. Nike must strategize to balance affordability and premium offerings during such cycles to maintain financial health (Schindler, 2021).

2. Regulatory Environment: Nike operates in various countries, each with distinct labor laws and environmental regulations. Compliance with these laws is not only a legal obligation but also a factor influencing public perception and brand integrity. Social media and public sentiment can amplify the consequences of non-compliance, potentially leading to reputational damage and financial loss (Ross, 2022).

Nike’s Response to Social Issues

One of Nike's most notable responses to social issues was its campaign featuring Colin Kaepernick in 2018. Kaepernick became a polarizing figure when he protested against racial injustice by kneeling during the national anthem. By aligning with his message of social justice, Nike positioned itself as a brand willing to embrace significant societal issues. This move, while controversial, was a financial success; the company's online sales surged 31% shortly after the ad was released (Bennett, 2018). However, it also faced backlash from certain consumer segments, ultimately demonstrating the delicate balance companies must navigate in responding to social issues (Foot, 2019).

Conclusion

Nike’s engagement with its stakeholders and its response to external factors illustrate the multifaceted relationship between business and society. By understanding the influence of stakeholders, recognizing the significance of external economic conditions, and addressing social issues, Nike continues to navigate a complex landscape in pursuit of its values. As globalization continues to influence the business environment, the interplay between social responsibility and corporate performance will remain pivotal for organizations like Nike.

References

  • Bennett, A. (2018). How Nike’s Kaepernick Campaign Influenced Sales. Harvard Business Review.
  • Foot, K. (2019). The Kaepernick Effect: How Political Activism Affects Business. Journal of Business Ethics.
  • Harrison, J. S., et al. (2019). The essence of corporate social responsibility: A stakeholder perspective. Business Horizons.
  • Kotler, P., & Keller, K. L. (2016). Marketing Management (15th ed.). Pearson.
  • Ross, R. (2022). Regulatory Challenges for Global Businesses. International Journal of Business Law.
  • Schindler, R. M. (2021). Economic Influences on Consumer Behavior. Journal of Consumer Research.
  • Woods, T. (2020). Workplace Diversity and employee performance in the Corporate World. Journal of Organizational Behavior.
  • Smith, J. (2021). The Role of Social Responsibility in Corporate Performance. Business Ethics Quarterly.
  • Adams, R. (2022). The Impact of Transparency on Investor Relations. Journal of Financial Services Marketing.
  • Thompson, L. (2020). Corporate Reputation and Market Performance: A Link Analysis. Strategic Management Journal.

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