Evaluation of internal environment and capabilities of Nike - SWOT and VRIO analysis

BUSINESS
STRATEGY

Table of Contents
INTRODUCTION....................................................................................................................3
TASK 1......................................................................................................................................3
P1 Analysis of impact of macro environment on business....................................................3
TASK 2......................................................................................................................................6
P2 Evaluation of internal environment and capabilities of business......................................6
TASK 3......................................................................................................................................9
P3 Implementation of Porter Five Forces to evaluate competitive forces.............................9
TASK 4....................................................................................................................................11
P4 Theories, models, interpretation and devise strategic planning for business..................11
CONCLUSION.......................................................................................................................13
REFERENCES.......................................................................................................................14

INTRODUCTION
Business strategy is the strategy which is developed by organization through which
they can gain competitive advantage sustain their competitive position within the industry.
Business strategy where is the layout of all the decisions and actions which will be taken by
the company in order to meet their planned objectives (What is business strategy, 2021).
Strategic management involves formulation and execution of strategy which is planned by
organization for achieving their targets. A business strategy is a long-term plan and comprises
of clear set of course of actions which will be followed by business for achieving desired
objectives. Nike is an American multinational company which provides diverse range of
products, such as- footwears, apparels, accessories, equipment’s and other products. The
company was started by Phil Knight and Bill Bowerman in the year 1964 (About Us). This
project is based on business strategy which is followed by Nike through which they can
determine internal and external factors. The first part of report will analyze the factors and
their competitive advantage for the organization. Theis part will also highlight strategies and
objectives that can support business in meeting desired objectives. The other part of report
will evaluate strategies that can direct business towards growth and success. Lastly this part
will define measures through which the strategies which are selected by business can be
monitored through which business success can be met.
TASK 1
P1 Analysis of impact of macro environment on business
PESTEL analysis of Nike
PESTEL analysis is the technique which helps in determining the micro
environmental factors that can create an impact on business operations. This framework helps
in tracking and evaluating the external environmental factors that can create an impact on
continuity of operations of the business. The factors which are determined with the help of
PESTEL analysis are political economic social technological environmental and legal factors.
In context of Nike a descriptive PESTEL analysis in order to evaluate the external
business environment is addressed underneath:

Political factors- the political factors which can create an impact on business
operations of Nike are taxation policies on imported goods labor laws change in government
incline and corruption activities for policies which are related to trading of goods and services
are responsible to create an impact on Nike.
Economic factors- economic recession is an economic factor which can lead to
decline in customer purchasing patterns as such factors leads to in customer interest towards
second cheaper options which are available in the market second which creates a threat and
negative impact on business environment of Nike (Nike PESTEL analysis, 2019). Emerging
markets can create positive impact in ring opportunity for Nike for their business expansion
and incline in business expansion through which they can cover large market share. Due to
rapid growth in new market can also increase the labor prices and this can second challenge
second the operations of Nike.
Social factors- there are several social issues second which are faced by Nike due to
their shady production practices. Social media have also shared negative comments and
harshly criticized the production practices of Nike acted as source of negative factor that can
negatively influence the business operations of the brand. The company can video focus on
their marketing efforts which will help them in offering safe products where the company can
advertise its products and gain competitive advantage.
Technological factors- research and development can help an organization to meet
customer demand for which Nike where they bring innovation to their products that can be
helpful in meeting level of customer satisfaction level. Through regular investments, Nike
can ensure effective research and development, Nike can enhance the quality of products and
services. Nike can make use of modern and advanced technology through which the brand
can manufacture better quality off goods with the help of enhancement in biomechanics,
industrial design, engineering and other activities.
Environmental factors- Nike follows environment friendly practices in their
manufacturing process where they reuse the material effectively with the help of effective
research and development through which innovative measures can be used (Nike Inc. Pestel
analysis, 2017). The use of leather and other material can also discontinue the operations of
Nike as due to imposed government regulations.
Legal factors- Due to improved labor regulations in developing countries, this can
possess danger and led to incline in labor cost where Nike production units are operating and