Strategic Marketing Management

Running head: STRATEGIC MARKETING MANAGEMENT
STRATEGIC MARKETING MANAGEMENT
Student’s Name
University Name
Author note

1
STRATEGIC MARKETING MANAGEMENT
Q1. PESTEL analysis for NIKE industry in United Kingdom
Pestle analysis is a tool that helps the business organization to access the external
business environment. This tool will be used to access the political, social, economic,
technological, environmental and legal factors that affect smooth running of the business
organization in the selected nation United Kingdom (Shatskaya, Samarina, & Nekhorosheva,
2016). Nike Corporations provides trendy footwear, functional sportswear throughout the
country. It is one of the largest sport apparel companies in the entire nation. However, the UK
apparel market is highly competitive.
Political factors: Frequent changes in political environment might affect manufacturing and
production of the company and its profitability. The United Kingdom government has favorable
politics and regulations for the growth and smooth operations of the business organization
especially for Nike Corporations. There are low interest rates with proper international tax
agreements. However, Nike corporations are subjected to significant changes in tax and
manufacturing laws (Shatskaya, Samarina, & Nekhorosheva, 2016). There are various political
conflicts that take place in the country from time to time.
Economic factors: Nike corporations provide medium ranged products so as to make it
affordable to various consumer segments. Therefore, the business organization is less vulnerable
to economic factors. United Kingdom is a nation with top leading companies such as Reebok and
other shoe manufacturing companies which increases the level of competition in the market (Sun
et al., 2014). The economic conditions of United Kingdom are favorable for Nike. However,
labor and other operating costs are higher. These might be challenging for Nike.
Social factors: The UK population is growing older with more than 18% of the people are more
than 65 years and over. This impacts the labor market and health care system. This is an

2
STRATEGIC MARKETING MANAGEMENT
opportunity for Nike to crater to the needs of the older generation. The population of UK is
multicultural; therefore the company has to cater to the needs of different races and religion (Sun
et al., 2014).
Technological factors: UK is one of the most technologically advanced countries. Therefore it is
highly favorable for business organizations (Dockalikova & Klozikova, 2014). The advanced
technology provides abundant opportunities to the business organization.
Environmental factors: Economic activities have significant impact on the environment. The
government takes various measures and initiatives which can hinder the functioning of the
business organization. UK faces challenging weather conditions which also might impact proper
functioning of the business organization (Dockalikova & Klozikova, 2014).
Legal factors: The UK government s improving the employment law which can be a threat to the
business organization as it might increase the labor costs and affect profitability of the company.
Q2 Stakeholder analysis and impact of globalization on each stakeholder
Nike has wide variety of stakeholders who has significant influences on the sales and
manufacturing of the company’s shoes and other products. The mission ad vision and the
corporate social responsibility programs of Nike targets major stakeholder groups (Lawrence &
Weber, 2014)..
The major stakeholder groups of Nike includes
1. Customers
2. Communities or societies
3. Employees
4. Government officials

3
STRATEGIC MARKETING MANAGEMENT
5. Other interest groups
Customers: As per analysis, it has been identified that Nike provides top most priority to its
customers. They are the top stakeholders of the business organization. They have significant
impact on the revenue and profitability of the business. The company addresses their needs
through R&D investments and provides them with high quality products implementing advanced
technology (Lawrence & Weber, 2014).. Through these efforts they satisfy the interests of the
customers. Hence customers and consumers have high power. Globalization influences the
interest and purchasing behavior of the consumers.
Communities: Societies and other community groups have significant influence on the
company’s standing. They are the second most priority of Nike Corporations. The corporate
social responsibility of the business organization is geared towards the society and other
community groups. The interest of these stakeholder groups provides help and support for the
development and betterment of the communities (Crane, 2020).. The expectations of the
communities have widened due to increased globalization.
Employees: The employees are also major stakeholders of the business organization. They
influence the effectiveness of the organization (Crane, 2020).. They protect the interest of the
stakeholders through fair compensation, sense of purpose and other training and development
opportunities. The company provides top most priority to this stakeholder group. The company
focuses on internal leadership development, team building and talent/ knowledge management to
address their interest (Randall, Leavy & Gouillart, 2014).. Employees demand for higher wages
as they have increased opportunities in the global market.
Government: The government and its laws and policies have significant impact on the
profitability of the business organization. Hence they have significant power and authority over