logo

Business Value Assessment Case Study - Nike and Adidas

   

Added on  2020-05-28

25 Pages6550 Words101 Views
Running head: BUSINESS SOCIETY AND THE PLANETBusiness Society and the PlanetStudent’s name:Name of the university:Author’s note:

1BUSINESS SOCIETY AND THE PLANETTable of ContentsPart A: Business Value Assessment Report....................................................................................21. Introduction..................................................................................................................................22. Identifying and describing the two companies; their core business activities and the countriesand industries in which they operate...............................................................................................23. Evaluating the differences evident between the two companies in terms of the range of issuesdealt with in their social reports and the depth of coverage on specific issues...............................44. Explaining social activities differences by the country and other explanations..........................55. Assess the apparent quality of the social accounting approach utilized by each companyaccording to Zadek et al.’s (1997) criteria.......................................................................................66. Discussing the extent to which the social reports provided by these companies reflect theirstated values.....................................................................................................................................87. Reflecting on groups’ discussions and conclusions...................................................................10Part B: Application to GVV Framework.......................................................................................11Scenario:........................................................................................................................................11Reference List................................................................................................................................20Bibliography..................................................................................................................................22

2BUSINESS SOCIETY AND THE PLANETPart A: Business Value Assessment Report 1. Introduction Business value assessment initiative is taken for a business to analyse its business,techniques and ethics. The organisations make a team in order to assist the organisation toidentify, capture business and measure the business value to recommend for overcoming thecurrent situation to achieve the benefit-based business goals (Caridi et al., 2014). In this part ofthe study, Nike and Adidas have been chosen for assessing the value of the organisations insocial ethics. In addition, issues dealt with social reports of these two organisations have beenevaluated. Furthermore, country-based social differences have also been discussed in this study.Social accounting approach has also been taken to delineate the quality of social approach ofthese two companies.2. Identifying and describing the two companies; their core business activities and thecountries and industries in which they operate In this part of the study, Nike and Adidas have been chosen in order to proceed as theyare in the same industry; however, they belong from two different countries. Nike Inc is an American multinational company and it is engaged in developing,designing and manufacturing footwear, sports equipment accessories and apparel products.Headquarter of Nike is located in Washington County, USA and it is served in a worldwidebasis. Nike was established in the year 1964 (Nike.com, 2018). Revenue of Nike in the year 2017was US$34.35 billion and it was established in the year 1964.

3BUSINESS SOCIETY AND THE PLANETNike segments the market into footwear, apparels, equipment and global branding. Nikehas been maintaining the leadership position in competitive sportswear and apparel market.Core activities of Nike are associated with development, design and marketing (Lu, Liu &Rahman, 2017). Nike has been outsourcing of non-core activities like contract manufacturing ofthe products. Nike does not have any manufacturing site and it produces through independentcontractors. In order to be a leader in the market, Nike focuses on development and design andthey use DyeCoo technology, advance waterless textile dyeing. Nike uses Plant PETTechnology Collaborative (PTC) to accelerate Poly Ethylene Terephthalate materials and fibre. Adidas is a multinational corporation and it has it headquarter in Herzogenaurach,Germany. It designs and manufactures accessories, clothing and shoes. Adidas is the largestmanufacturer of sportswear in Europe. This organisation was established in the year 1924 and itis the sponsor of world's major sports' clubs. It serves worldwide and it collected revenue of€19.28 billion (Adidas.group.com, 2018). Adidas believes in creating a new product line for exciting future. Adidas is uniqueportfolio brand and it has a strong identity in sports. Adidas mainly appeals to the athletes. Thebusiness activities mainly depend on speed as they try to be fast in satisfying customers' needsand in internal decision making (Lu, Liu & Rahman, 2017). Adidas identifies six different citiesto grow their business and it is going to be the first sports brand to be part of consumers, athletesand partners.

4BUSINESS SOCIETY AND THE PLANET3. Evaluating the differences evident between the two companies in terms of the range ofissues dealt with in their social reports and the depth of coverage on specific issues Nike believes that it is not enough to adapt to what future may bring and the organisation iscreating the future what they want to see through sustainable innovation (Buckler, 2017). Nike isaccelerating toward a low-carbon growth in the economy. They do not have manufacturing units;however, Nike gives emphasis to those manufacturers who have less impact on society. As statedby Suliman et al., (2016), Nike has been using Flyknit technology that has reduced nearly 4million pounds of waste in the year 2016. Since the year 2010, Nike has converted three billionplastic bottles to polyester in order to make products like Vapour football and they are usingcolour dry technology to save water. Nike has targeted 10% reduction of the averageenvironmental footprint to increase use of more sustainable materials (Nike.com, 2018). Nikehas been making a contract with manufacturers that uses mainly renewable energy to operate themanufacturing works. 85% of Nike's manufacturing contract companies reach a performancerating to demonstrate to value the workers and improve the environmental standard. Adidas bears responsibility towards the society and environment. Adidas mainly focuseson the supply chain in order to be a more socially responsible organisation to empower staffs andpromote safe, fair and healthy condition to suppliers' factories. Adidas is trying to improve theenvironmental footprint to create the best for the athlete. Most importantly, according to Agan etal., (2016), Adidas drives innovation in product creation and they have made a partnership withParley in order to raise awareness about Oceans. Adidas has taken initiative in order to makeshoes from filament and yarns and recycled from ocean's waste. Adidas has joined UN takeninitiative on Climate Neutral to help the society to have a better understanding of climate change.As opined by Uhrich, Koenigstorfer & Groeppel-Klein (2014), Adidas always takes, identifies

5BUSINESS SOCIETY AND THE PLANETand manages human rights in business operation and supply chain partnership. Average resourceconsumption of pair of sports shoes shown below:201520162017Energy use2.932.362.98Wastewater0.340.450.57Average VOC20.319.520.4Table 1: Average resource consumption (Source: Adidas.group.com, 2018)4. Explaining social activities differences by the country and other explanations In recent time, climate change is a global issue that needs a global solution. In footwearand sports industry, resource scarcity, prices of raw materials and issues in supply chain createconcern for Nike. Nike can understand the broader impact of climate issue to foster low-carbongrowth in the economy (Plambeck & Taylor, 2015). In addition, Nike takes innovativeimperative as a systematic change to forecast the rate of emission of carbon and othergreenhouse gas in supply process. In the USA, CSR activities are important as US citizensexpect the organisations to generate a profit and take the business in ethical and socially manner.In a global financial crisis, the organisations need to ignite the public concern to attract thecustomers (Parsa et al. 2015). USA industry is viable and customers' preferences change withtime. The USA is a developed country and the customers' disposable income is high. In addition,USA based business freely acknowledge their social responsibility and ethical obligation. Theseresponsibilities of the organisation go beyond political, legal and economic obligations. USSentencing Commissions' provides guidelines to continue the business including sociallyresponsible, labour unions, unincorporated organisations, partnership and community service.

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Business society and Planet Assignment
|13
|3080
|27

Resource Integration in Adidas and Nike
|12
|3655
|70

Business Analysis project
|16
|4413
|344

Business Level Strategy Research 2022
|20
|3096
|22

Value and Social Performance of Nike and Nestle
|8
|2193
|383

Strategic Management and Marketing: Nike Inc
|20
|4731
|239