Write A 45-Page Evaluation Of The Company's Nike Performance

Write A 45 Page Evaluation Of The Companys Nike Performance With

Write a 4–5 page evaluation of the company’s "NIKE" 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?

Paper For Above instruction

Introduction

Nike Inc. is one of the world's leading sportswear and equipment companies, renowned for its innovation, marketing, and global presence. Founded in 1964 as Blue Ribbon Sports and officially becoming Nike, Inc. in 1971, the company has established a strong brand identity based on performance, technology, and style. Nike’s primary products include athletic footwear, apparel, equipment, and accessories targeted at various sports and fitness activities. Its extensive product line caters to athletes, casual consumers, and sports teams worldwide, establishing Nike as an iconic brand in sports culture and fashion.

Nike’s Primary Products and Services

Nike’s product portfolio is broad and diverse, emphasizing innovation and consumer appeal. The flagship product category is athletic footwear, which accounts for a significant portion of its revenue. Nike designs and manufactures shoes for running, basketball, soccer, training, and lifestyle markets, integrating advanced technologies like Air Max cushioning, Flyknit uppers, and React foam to enhance performance and comfort. Beyond footwear, Nike produces a comprehensive range of athletic apparel, including sportswear, uniforms, and casual wear, emphasizing performance fabrics and trendy designs.

In addition, Nike offers sports equipment such as balls, bags, and socks, as well as digital services like Nike Training Club and Nike Running Club apps, which provide training programs and community engagement. Nike’s direct-to-consumer sales channels, including brick-and-mortar stores and e-commerce platforms, constitute a growing segment, allowing the company to connect more directly with consumers and increase profitability.

Stakeholder Influence on Financial Performance

Primary stakeholders in Nike include shareholders, employees, suppliers, consumers, and community partners, all of whom influence the organization’s financial health in distinct ways:

• Shareholders: As owners, shareholders influence managerial decisions through voting and investment expectations. Their focus on profitability and growth drives Nike's strategic initiatives, innovation investments, and marketing budgets. Shareholder activism and dividend expectations can shape the company’s financial strategies.
• Suppliers: Nike’s supply chain partners, particularly in Asia, impact production costs and quality. Efficient, ethical, and sustainable supplier relationships can reduce costs and mitigate reputational risks, directly influencing profitability and consumer trust.
• Consumers: Consumer preferences and loyalty determine sales volumes and brand strength. Engagement through digital platforms and social responsibility initiatives can boost consumer loyalty, positively affecting revenue and market share.

Supporting these influences, Nike’s focus on corporate social responsibility and innovation aligns stakeholder interests with financial performance, emphasizing sustainability and brand loyalty. For instance, supplier audits and marketing campaigns that promote sustainability have been shown to enhance consumer trust and sales, ultimately impacting profitability.

External Environment Factors

Two critical external factors that affect Nike’s success include technological innovation and global economic conditions:

• Technological Innovation: Continuous advancement in materials, manufacturing techniques, and digital integration is vital for maintaining competitive advantage. Innovations like sustainable materials (e.g., Flyleather) and personalized digital shopping experiences influence product appeal and efficiency.
• Global Economic Conditions: Economic stability, exchange rates, and trade policies impact production costs and consumer spending. During economic downturns, discretionary spending on premium athletic wear declines, affecting sales and profits.

These factors require Nike to adapt quickly—investing in R&D to stay ahead in innovation, and managing currency risks and supply chain costs amidst fluctuating global economies.

Social Issue Response and Impact

Nike’s major success in addressing social issues pertains to its stance on racial equality and diversity. The company launched campaigns and internal diversity initiatives, such as the 2020 “You Can’t Stop Us” campaign, which highlighted racial injustice and promoted inclusion. This proactive approach bolstered brand image, especially among younger consumers who prioritize social responsibility, leading to increased customer engagement and sales.

Conversely, Nike faced a significant missed opportunity when it was criticized for not adequately addressing labor rights violations in some supply factories. Such issues, when surfaced publicly, can damage brand reputation and consumer trust, impacting sales and profitability. Overall, Nike’s response to social issues has generally been positive, contributing to a stronger brand loyalty that supports long-term financial sustainability.

Conclusion

Nike’s performance is deeply intertwined with its innovation, stakeholder engagement, and responsiveness to external social and economic factors. Its diverse product portfolio, strategic stakeholder influence, and ability to adapt to global challenges have contributed to its position as a leading global brand. By continually innovating and aligning its corporate social responsibility with business objectives, Nike can sustain its competitive advantage and drive future growth.

References

1. Barney, J. B. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, 17(1), 99–120.
2. Brakus, J. J., Schmitt, B. H., & Zarantonello, L. (2009). Brand Experience: What Is It? How Is It Measured? How Does It Affect Loyalty? Journal of Marketing, 73(3), 52–68.
3. Crane, A., Matten, D., & Spence, L. J. (2014). Corporate Social Responsibility: Strategies and Ethics. Oxford University Press.
4. Hahn, R., & Figge, F. (2011). Cultural values and sustainability reporting: An empirical analysis. Journal of Business Ethics, 104(2), 203-222.
5. Keller, K. L. (2003). Strategic Brand Management: Building, Measuring, and Managing Brand Equity. Pearson Education.
6. Porter, M. E. (1985). Competitive Advantage. Free Press.
7. Smith, N. C., & Albrecht, K. (2015). The Sustainability Edge: Resiliency and Transformation in Your Sustainability Strategy. New Society Publishers.
8. Waddock, S., & Graves, S. B. (1997). The Corporate Social Performance–Financial Performance Link. Strategic Management Journal, 18(4), 303-319.
9. Yin, R. K. (2018). Case Study Research and Applications. Sage Publications.
10. Zollo, M., Slim, A., & Corsi, M. (2017). Innovation in the Social Sector: A Review and Synthesis. Journal of Business Research, 70, 23–33.