Managing Enterprise in the 21st Century

This report discusses the management of enterprises in the 21st century, focusing on the case study of Nike and its new range of workout tools and equipments. It covers topics such as market audit, target market, marketing plan, and financial plan.

Managing Enterprise in the 21st Century

Table of Contents
Executive Summary.........................................................................................................................1
INTRODUCTION...........................................................................................................................1
Overview of company.................................................................................................................2
Overview of company.................................................................................................................3
Products and Services ................................................................................................................5
Market Audit...............................................................................................................................5
Target Market:.............................................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

Executive Summary
Enterprise management is refer as the way or approach for managing different activities and task
of the business. It is essential that all task and activities of enterprise is successfully managed in
order to meet with the set goals of business. There are various function of business such as
human recourse, marketing, finance, production, IT, research and many more which is
significant for effective and efficient performance of business in market area. Staff member and
employees of organisation play crucial role in organisation that will help in enhancing business
performance as well as capability of business. It is very important that employees have right
skills and placed at right position in order to effectively conduct business task. Organisation
needs to develop strong and effective business strategies which is significant for improving
performance of company in market area. This will assist organisation to gain competitive
advantages over other rival companies. This report is based on Nike business idea which is
providing new and different products and services to customers in order to meet with the needs
of business. It is crucial for this company to identify and determine different aspects of business
environment in order to effectively introduce its new products. This company have idea to
launch new products or services that is workout equipments and tools. This will be helpful for
individual to carry out their workout practices at home. This idea is develop with the motive of
providing more safe and secure workout practices for individual. Further in this report market
audit has been conducted by considering potential customers as well as market area in which
company is providing its products and services. Target market for identifying the customer base
who need the products and services that is offered by respective company. Apart from this a
proper marketing plan has been developed with will includes all information related to this
business idea as well as strategies that will help in meeting with the goals. Management team
will help respective company to effectively conducting different business practices in most
effective and efficient manner. Financial plan of this business idea will includes information
regarding the financial recourse which will be needs for implementing business idea and
attaining desired objectives.
INTRODUCTION
There are different aspects which are related to management of enterprises in more effective
and efficient manner. It is very crucial for manager to consider different elements and functions
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of organisation in order to successfully manage business practices and attain goals of
organisation. Managing enterprise in 21 st century will includes new and innovative technology
and other tools that is significant for managing different task as well as accomplishment of
business goals. Organisation is developed by different employees and various function which is
essential for conducting business task as well as providing its products and services to customers.
Employees are essential part of organisation which will help in enhancing performance and
capability of business to develop effective and efficient products. Enterprise management will
includes day to day activities which needs to be successfully managed and control in order to
smooth performance of organisation. It is crucial for manager or top authority of management to
have effective networks that will support in enhancing business practices and effective
development of products and services. Chosen company for this report is Nike. This is one of the
well known America multination organisation which is developing high quality products and
services in order to meet with the needs and wants of customers. Nike company is dealing in
apparel, sports equipment and accessories industry and providing different types of products and
services to customers. This organisation was developed in year 1964 and founder of Nike
company was Bill Bowerman and Phil Knight. Headquarter of this company is located in
Beaverton, Oregon, U.S. This organisation is offering its products and services to different part
of world and successfully attracting large number of customers towards business. In this report
different elements which are related to management of enterprise has been determine. Nike
business is introducing new range of workout tools and equipments. This report will be
performed by 5 member and all task of this project is equally divided between team members.
This will include complete information about the company as well as its products and services.
In this report market audit has been conducted in order to analyse the market area and its impact
on business operation. Target market for the new product offering of respective company has
been determined. It includes analysis or evaluation of marketing plan that is developed for
introducing new workout equipment range and tool to customers. In this management team has
been determined for successfully managing different activities of business project. Apart from
this a proper financial plan has been developed that will include information regarding funds and
other financial resources.
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Overview of company
Nike is consider as one of the leading company is sportswear sector as it is providing high
quality products which is according to the value of customers. Nike is an American company
which was developed in year 1964. This company is offering its products and services form
many year which is significant in developing strong relationship with customers. This company
consist of designing, developing as well as manufacturing of products in order to meet with the
expectation or requirement of customers. It is marketing its developed products in all over the
world in order to meet with the requirement of customers and enhancing their experience with
Nike company. The major products of respective company includes cloths, footwear, accessories
as well as other equipments and services. Founder of Nike company is Bill Bowerman and Phil
Knight. This company was developed with the motive of bringing innovation and inspiration in
every athlete all over the world. This company is considering sustainability in its products and
services with the motive of building a global and creative team.
Overview of company
Nike is consider as one of the leading company is sportswear sector as it is providing high
quality products which is according to the value of customers. Nike is an American company
which was developed in year 1964. This company is offering its products and services form
many year which is significant in developing strong relationship with customers. This company
consist of designing, developing as well as manufacturing of products in order to meet with the
expectation or requirement of customers (TOMASSONI, 2019). It is marketing its developed
products in all over the world in order to meet with the requirement of customers and enhancing
their experience with Nike company. The major products of respective company includes cloths,
footwear, accessories as well as other equipments and services. Founder of Nike company is Bill
Bowerman and Phil Knight. This company was developed with the motive of bringing
innovation and inspiration in every athlete all over the world. This company is considering
sustainability in its products and services with the motive of building a global and creative team.
Mission Statement:” Make every effort to expand potential of humans ”
Vision Statement:” To bring innovation and inspiration to every athlete in the world.”
Nike stands to be one of the world's largest supplier of apparels and shoes. They also
manufacture a number of sports equipments. They have been growing gradually since day and at
present there are more than 75000 employees in company. The brand value company have been
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increasing rapidly. Nike was also ranked at 89th position in 2018 in the list of fortune 500. the
name Nike comes from the name of a Greek goddess of victory. All the products of Nike are
marketed under its own brand and some other like Nike Pro, Air Jordan, Nike Blazers, Nike
Dunk and so on. There are a number of high -profile players as well as team that are attached to
Nike. It is recognized by its Swoosh logo and its tag line “Just Do It”.
Growth of Nike have been glorious from the very beginning itself. Company had already
won 50% shares in athletic shoes market of U.S. After which Nike also went public. After this
co-owner of company came up with the very famous slogan of company that is “Just do It”. Also
after this company effectively started expanding their product line. Over the time Nike have also
acquired a number of companies. The first amongst them was Cole Haan in 1988. after this they
acquired Bauer Hockey in 1994. There are a number of companies which was acquired by Nike
such as Hurley International, Converse, Starter.
Nike have been strong financially as well. Company effectively became a member of
Dow Jones Industrial Average in year 2013. Aloca was replaced by Nike on the list. Instantly
after this quarterly profits of company increased 13%. Along with it there was increase seen in
shares of Nike as well. Seeing such profits Nike decided to initiate share buy back along with
stock split. They have been continuously announcing splitting of share as well as buy back of
shares. However at present due to the Covid -19 outbreak company have seen a downfall of 5%.
This is the first outbreak of company in last 6 years (Lämmle, 2020). At the same interval online
sales of company have immensely increased by 36% in just the first quarter. Along with this
growth in sales of personal training applications in China have also been up to 80%.
Over the time company have also gained a lot of negative media attention. The wages
Nike paid to its labourers in Vietnam, Indonesia, China have always been in question. They have
been working with poor health conditions and were also paid less. They were also allegedly
blamed for using child labour in their factories situates in Pakistan and Cambodia. There was
also a documentary shot which explained the poor conditions of child labours. After this there
was also a strike in the factory of Nike situated in China who were underpaying labour from over
past 20 years. In 2017, a news came forward which exposed Nike of the scams it is doing in
order to save their taxes. The news shows how Nike have been using fake offshore companies in
order to avoid taxes. There were some other small scandals which have been faced by Nike.
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The marketing strategies, product range, goodwill, brand value of company have always
brought it up in market in terms of revenues as well as profits. They are also working for society
in a number of ways. They have developed a program in which the employees of company from
around the world go out and give back to their community. Also the employees from Nike stores
are actively teaching children about healthy and active life.
Products and Services
Market Audit
Marketing audit is defined as systematic, comprehensive, analysis, evaluation as well as
interpretation of business environment that is both external and internal environment. In addition
to this, it also consist of analysis of marketing objectives, goals, principles, strategies that help in
gaining insight about issues as well as opportunities which has a direct impact on marketing
performance in a positive and effective manner (Iliev, 2019). For conducting marketing audit, it
is important for the managers that the audit should be systematic, comprehensive and
independent as well. One of the main reason to conduct market audit is to align marketing
activities with the goals and objectives. In addition to this, it also help an entity to gain
knowledge about the weak areas due to which company is able to develop effective strategies
that leads to increases in market performance and productivity of an organisation. Marketing
Audit allows an organisation to know about the level of competition prevailing at marketplace so
that strategies is developed in order to decline competition level and earn higher profits from the
market. By gain an understanding about strength as well as weaknesses of competitors, an entity
can make use of approaches that improve the level of customer base and performance in an
appropriate manner. Marketing audit consist of internal audit as well as external audit. The
managers of Nike is conducting market audit in order to know abut factors that impact on their
performance and productivity level. In addition to this, it also help company to bring out its new
idea of introducing workout tools and techniques at market in n appropriate manner. Both the
internal and external audit of respective company is given below:
External marketing audit: It is defined as an systematic approach to develop information
require for a company in order to identify and analyse issues which help in developing successful
marketing strategy. In addition to this, external analysis is take place by companies to customer
requirement that is important to retain and gain success at marketplace (Cenciarelli, De Santis
and Greco, 2018). In relation to Nike, its higher authorities make use of PESTLE analysis
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framework to conduct external analysis. The PESTLE analysis is described below in context to
the respective organisation:
Pestle analysis: It is defined as a framework that is used by an entity to identify macro
environmental factors which has direct impact on the performance of an organisation. In addition
to this, it assist an organisation to create an effective strategies that reduce the level of risk
associated with the external factors. This framework is mainly used by companies when they are
introducing new product or service and expanding operations in foreign markets. This
framework involves six elements or factors which is given below in relation to Nike:
Political factors: This factor consist of political stability, tax policy, government policy,
foreign trade and many more. It is determine that all such factors directly impact on company's
performance, it is important for managers to analyse all such factors in an effective manner (Lu,
Simnett and Zhou, 2019). In relation to Nike, it is an American based company that produce high
quality clothes and footwear. It is analysed the the government of U.S. Supports its companies to
expand their business globally as it leads to growth and development of economy. It is determine
that because of US sanction on Iran, the respective company that is manufacturer of footwear and
apparel is unable to develop the clothes and equipments for Iranian football team. This has
developed a negative brand image of Nike in mind set of Iranian. In addition to this policies of
U.S. Such as favourable international tax agreements, low interest rates help Nike to advance its
policies and attain growth in an effective manner.
Economic factors: This factor has a significant influence on how a company does
business & how profitable it is. It involve elements such as inflation rate, exchange rates, income
of consumers, interest rates, economic growth and many more. With reference to Nike, one of
the biggest threat or issue face by Nike is economic recession. The economic recession of Asian
and US can impact Nike as the organisation is manufacturing goods in U.S. and Asia as well. It
is analysed that Nike has a competitive market and to generate high revenue requires low labour
cost so it is important for the company to maintain low labour cost that help in enhancing the
level of revenue in an appropriate manner (Gul and Ng, 2018). Increase in the level of
competition & currency movement can impact on its performance in a negative manner.
Social factors: This area involve factors such as career attitude, population growth
beliefs, culture and tradition of the population. It is important for an organisation to focus on all
these factors and the offer product in market as it increases the level of acceptance and enhance
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the performance of an organisation. In relation to Nike, it is determine that people nowadays are
more concerned of their health and did make compromise towards their health issues. For this,
people join fitness club that increase the sales of Nike products such as appeals, shoes and so on.
This impact positively on the profitability and productivity of company in an effective manner.
Technological factors: It is determine that the behaviour and attitude of people towards
purchasing a product is getting changed because of technological advancements. People prefer to
buy those goods and service which is new and innovative in market. In context to Nike, it make
use of social media applications such as Facebook, Instagram and YouTube in order to promote
its offerings globally (Meilak, 2019). This hep company to increase its customer base level and
earn higher profits in an effective manner. In addition to this, it also assist company to strengthen
its market performance and market share in an appropriate manner.
Legal factors: It is important for organisations to follow all the rules and regulations
formulated by government as it help in systematic implementation of activities of the company.
The legal factor consist of consumer rights & laws, health and safety, product safety and so on.
With reference to Nike, its higher authorities is always focuses on complying with international
laws as it help in execution of activities without any conflicts and delays. In addition to this, the
company ensure product quality and also emphasis ion protecting the interest of staff members.
This help in developing positive mind set of employees which has a positive impact on the
performance and profitability of company.
Environmental factors: The preferences of people is now shifted as they are more
concerned towards protecting environment. This factor is significant because of increasing
scarcity of raw materials, carbon foot targets developed by government and many more. In
context to Nike, its higher authorities ensured that its mass production factories did not creating
pollution and also promised environmental friendly policies by all of its suppliers (Goffnett,
2020). It help company to developed positive brand image at marketplace which in turn leads to
increase in performance and profitability of respective organisation.
Internal marketing Audit: Internal marketing Audit refers to audit over the things which the
company have greater control over. The major part included in internal audit consists of SWOT
analysis. Marketing mix which includes products, price, promotion and place (Chang and et. al.,
2019). It is necessary to keep regular reviews of performance in order to make sure that the goals
are effectively reached or not. Below mentioned is internal audit conducted on Nike:
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Swot Analysis:Swot Analysis refers to an internal analysis of factors which brings
strengths, weaknesses, opportunities and threats of an organisation. Below mentioned is SWOT
performed on Nike:
Strengths:
 The recall value of Nike is very high. It is a brand which can be easily memorized by
anyone. The symbol used by the brand is also enough for recognizing it. The brand
awareness of company is increasing along with market share of company in athletic
footwear market which is 31%.
 The customer base of company is huge. There are huge number of customers who are
loyal for the brand. There are a number of events and games managed by the company
and these loyal customers are regularly participating in them. The team of in house professionals that are working on creating designs for Nike
products are excellent. They are designing shoes as well as a range of athletic accessories
that are sold by Nike. One of the major reason behind success of Nike's business is their
team of designers and continuous development.
Weaknesses:
 The labour condition that Nike is managing at their factories is below average. There
have also been some documentaries which reveal the condition of labours and company
have gained a lot of negative media attention due to it.
 The pricing structure which is used by retailer is proving to be a negative factor for Nike.
The producers provide retailer's with around 60-70% of stock and the retailers often
forward it based upon their core customers (Drogalas and et. al., 2019). The dependency of Nike over U.S. Market is very high. Major part of sales made by Nike
is in U.S. The marketing strategy or targeting strategy of Nike is not efficient enough as it
still has to depend highly upon U.S. after having such huge brand awareness and
customer base.
Opportunities:
1. Nike is a brand which is known worldwide. Even after all this there are a number of
flourishing markets which are bringing lot of opportunities for Nike. Developing
countries like China, India, Brazil are great opportunity that Nike can use.
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2. Nike have always been forward in bringing in new innovations in the market. Still with
the technological development coming around in this era there are a number of
innovations that can
3. The supply of product in Nike as well as the production of company are independently
handed by different manufacturers. In order to make an efficient supply chain Nike can
but out some of these under their organisation.
Threats:
 Increase in competition is seen in the market of athlete accessories and apparels.
However, Nike is dominating the market of athletic industry still company posses fear
from a number of new entrants in the market.
 Nike is operating internationally. Due to this the changes in the rates of currency is
affecting the profits of company as well. The earnings of Nike are reported in US dollars
so it is highly volatile against the financial currencies of other countries.
 It is necessary for Nike to bear the pressure of promoting products as its competitors are
spending more on advertising.
5 M's of marketing:
Target Market:
CONCLUSION
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REFERENCES
Books and Journals
TOMASSONI, M., 2019. Development of a business plan for the expansion of CESI's operations
on the IFI hydropower market.
Bacon, K. and Tate, S., 2019. Preparing a Food Processing Business Plan.
Lämmle, A., 2020. Business Plan Handbook: Practical guide to create a business plan. BoD–
Books on Demand.
Chang, Y.T. And et. al., 2019. The impact of internal audit attributes on the effectiveness of
internal control over operations and compliance. Journal of Contemporary Accounting
& Economics. 15(1). pp.1-19.
Drogalas, G. and et. al., 2019. Informal interactions between audit committees and internal audit
function. Evidence from Greek listed firms. Corporate Board: Role, Duties and
Composition. 15(1). pp.25-32.
Iliev, P., 2019. CONTROL AND AUDIT IN MARKETING. Challenges of the Knowledge
Society, pp.1053-1056.
Cenciarelli, V.G., De Santis, F. and Greco, G., 2018. External audit and fair value
measurements. Angeli.
Lu, M., Simnett, R. and Zhou, S., 2019. Using the Same Provider for Financial Statement Audit
and Assurance of Extended External Reports: Choices and Consequences. Available at
SSRN 3361616.
Gul, F.A. and Ng, A.C., 2018. Auditee religiosity, external monitoring, and the pricing of audit
services. Journal of business ethics, 152(2), pp.409-436.
Meilak, C., 2019. The effect of social media on the recruitment process in Maltese audit
firms (Master's thesis, University of Malta).
Goffnett, S.P., 2020. Leadership, goal acceptance, and QMS conformance readiness: exploring
the mediating effects of audit team cohesion. Total Quality Management & Business
Excellence, 31(1-2), pp.43-67.
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