Nike Case Study: Global Business Environment Challenges and Strategies

This report provides a comprehensive analysis of Nike's global business environment, examining key factors such as cost, market, environment, and competition that drive global commerce and trade. It delves into the strategic challenges faced by the enterprise, including creating better products at lower costs, the impact of social media, international trade laws, and international supply chain management. The report further explores the influence of globalization on organizational governance, leadership, structure, and culture, utilizing the McKinsey 7S model and Hofstede's model. Additionally, it evaluates the influence of ethical sustainability on organizational functions and discusses effective decision-making processes in a global context, along with various routes to internationalization and associated barriers. The report concludes by summarizing the key findings and implications for Nike's global operations.

GLOBAL BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Key factors of cost, market, environment and competition which drive global commerce
and trade .....................................................................................................................................1
P2 Complexity of strategic challenges faced by the enterprise...................................................2
TASK 2............................................................................................................................................3
P3 Influence of globalisation on organisational governance and leadership, structure, culture
in globalisation context...............................................................................................................3
P4 Evaluate influence ethical sustainability with globalisation on organisational functions. . . .5
P5 Different ways of decision-making which work effectively in the global consideration......7
P6 Various routes to internationalisation with includes key barriers..........................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Global business environment is the platform where different activities has been promoted
to accomplish desired results. In addition to this, enterprise also getting several benefits like
increasing revenue, profits, etc. (Acs, Szerb and Lloyd, 2017). All these perspective helps to
make proper cooperation in the different functions of the business to make systematic work
performance. In order to focus on the present report, it is based on the Nike which is global
headquarters located in different areas of the world. The company operating their functions and
operations in term of selling products in systematic manner. In respect to attract customers, the
chosen business also operating their functions in discount.
For gaining insight information of the present report it covers key factors of cost, market,
environment and competition. Furthermore, it includes influence of the globalisation on the
organisational governance and leadership activities of the business. In addition to this, it helps to
evaluate the ethical and sustainable functions exit in the enterprise.
TASK 1
P1 Key factors of cost, market, environment and competition which drive global commerce and
trade
In the Nike, there are different aspects exist due to which different factors included which
impact on the effectiveness of business. They are as follows:
 Cost: In the Nike, cost always favour to the globalisation. This is because, there are
several elements exist that could be impact on the effective functions and operations that
are included in the business. In this consideration, investment requires promote
effectiveness and develop more profitability at workplace. For marketing and
promotional activities, this is main factor included in the chosen business (Wood,
Logsdon and Davenport, 2015).
 Market: The company operating different kinds of the market in which they develop
their effectiveness and creativity in systematic manner. In addition to this, in the markets
different regions create greater pressure to globalisation the products and services. For
instance, fairly uniform around the global environment considered high demand of Nike
products and services (Hill, Hult and MacKenzie, 2017).
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 Environment: Environment is also major factor in the globalisation. In this aspect, it is
essential to focus on the sense which is very strong to develop products and services in
the business. In this way, Nike directly and indirectly get impact by the several
perspectives which need to be importantly taken in systematic manner. In addition to this,
it is also helps to engage with importing which must learn about the customer needs,
requirement, informed compliance, etc. (Wirtz, Tuzovic and Ehret, 2015). Along with
this, it also included several important perspective that are need to be focused with
special requirement, fraud, etc. In this way, in sourcing and outsourcing two major
perspective will be taken on the basis of which residence performed under several
phenomena. In this way, Nike design their shoes and other products that are manufacture
in other areas of the different nation. It can be seem to international sourcing for more
often resources.
 Competition: In respect to remain with competitive, very business need to focus on the
recent market requirement and its effectiveness. In this way, several sustainability
activities performed to make systematic work performance at workplace. In addition to
this, advantages are undertaken on the basis of which company able to develop their
profitability. Nike leading in the different areas of the world. Therefore, it is the structural
consideration which make advanced results in the business unit. For development of the
activities, the company operating their global brand so that they can compete with other
enterprises (Acs, Szerb and Lloyd, 2017).
P2 Complexity of strategic challenges faced by the enterprise
In respect to deal with the complexity, there are several challenges occurs in front of
Nike. These factors create major impact on the performance and accomplishment of the aims and
objectives. It leads to develop effectiveness in the enterprise in systematic manner and
considered solution to enhance creativity. They are as follows:
 Creating better products and services at low cost: In the different areas of the world,
the chosen company face issue of the providing products and services at low cost. This is
because, in respect to attract customers the business need to opt penetration pricing so
that they can attract several customers easily. In addition to this, it is important to focus
on the each customer need so that they will able to increases effectiveness in systematic
manner. Further, it also impact positively if Nike provide low cost products and services
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in systematic manner. In order to create better products and services, it is important to
look towards the opportunities that are exist in the market.
 Impact of social media and other applications: In addition to this, another issue occur
in the new areas that is impact of the social media development. This is because, in new
areas business unable to capture large amount of customers in their business. In this way,
Nike needs to concentrate on the other traditional marketing in particular environment
which helps to increase effectiveness in the environment (Hill, Hult and MacKenzie,
2017). With the help of the different perspective of the advertisement, that increases
effectiveness in the business environment.
 International trade law: However, in various nations there are different rules and
regulations exist that impact on the functions and operations of Nike. In addition to this,
international trade law consist important part which need to be followed by every
business to do their work in particular environment. In this consideration, the chosen
organisation able to deliver creativity in the workplace environment to develop
effectiveness (Wirtz, Tuzovic and Ehret, 2015). Along with this, different elements of the
particular country, it is essential to Nike need to pay proper taxes and other consideration
which helps to accomplish their goals and objectives in proper way.
 International supply chain management: Further, international supply chain
management also impact on the functions and operations that are generally followed by
the business. In this consideration, Nike needs to implement their rules and regulations
which impact positive on the company profits and revenue. With the help of proper
functioning, effectiveness will be maintained at workplace that considered systematic
work performances in the business environment (Ferraro and Briody, 2017).
TASK 2
P3 Influence of globalisation on organisational governance and leadership, structure, culture in
globalisation context
Globalisation create major impact on different factors of the business which need to be
considered as the important perspective. It helps to considered several advantages and
disadvantages which included in the governance, leadership, structure and culture. Therefore, in
the business, these elements make proper consideration to ascertain results. In this way,
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McKinsey 7s model and Hofstede model describes in the organisational structure which
explained under here:
McKinsey model: In this model, there are mainly 7 elements included that considered
effectively performance to look towards the results. It includes following perspective: Strategy: In the Nike, this element considered strategy which taken to establish different
perspective at workplace. In this way, manager of the chosen business set steps in which
competitive advantages in the competition considered (Wild, Wild and Han, 2014).
Therefore, it will assist to frame systematic work performance through business will able
to attain creativity. Structure: Further, in the structure element, way developed in which the organisation
considered structured elements which assists to report to someone. In this way, steps are
developed to create overall growth in the business environment in systematic manner. In
this consideration, effective results will be attain performance in systematic manner. System: In respect to develop effective results, in Nike daily activities and procedures
followed to attain creative results at workplace. In the system, all people will engage to
accomplish each activity so that effectiveness will be developing in proper way to
ascertain more systematic work results. Shared value: Shared values are also known as the subordinates goals in which model
firstly developed. In this way, core values are designed and performed by the company as
evidence. It is also considered in the corporate culture which assists to generate work
ethics. As results effective performance will be developed in the positive view for
undertake new performances at workplace (Wild, Wild and Han, 2014). Style: Style considered effective aspect in the business. In this way, leadership mainly
adopted by the Nike to show creative perspective. Hence, it assists to make focus on the
advance values that are attained by the business. Staff: Staff included employees who perform several operations and general capabilities
in systematic manner. In this regard, there are different aspects measures which need to
considered effectiveness at workplace (Ferraro and Briody, 2017).
 Skills: Skills and capabilities performed in creative aspect that requires in each person to
perform tasks. Competencies are also designed for employee working in the business.
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Hofstede model: In the Hofstede model, there are different fundamental aspects considered
which helps to focus on the compressive development in the workplace environment. In this
consideration, collective programming also influenced to Nike for their development.
 Power distance index: This dimension considered expression of the degree in which less
powerful members of the society accept their power that is distributed among several
people unequally. Fundamental issue occur that is how society handles inequalities
among different people (Wood, Logsdon and Davenport, 2015). People of the society
considered exhibiting large degree of the power distance in hierarchy order.
 Individualism versus collectivism: In this consideration, individual can be determines
and defined preferences for the social framework. In this way, people are able to take
care of the other people. Beside this, in the collectivism, preferences are tightly
considered in the society which expects to look towards the relatives and members in a
group. Society position also create self image (Acs, Szerb and Lloyd, 2017).
 Masculinity versus femininity: Masculinity side of the dimension considered preference
in the society for achievement, assertiveness and material rewards for making successful
operations. Society at the large perspective considered effective performances in the
business. In this consideration business need to adopt femininity which make simple rules
and regulations.
 Uncertainty avoidance index: Uncertainty helps to avoid dimension express which
considered in the degree to which members of a society feel comfortable with the
uncertainty and ambiguity. Fundamental issue here is that how society could deal with
the facts in the future need to be know (Wirtz, Tuzovic and Ehret, 2015).
P4 Evaluate influence ethical sustainability with globalisation on organisational functions.
Ethical sustainability of the organisation considered major role in business success and
profitability (Savrul, Incekara and Sener, 2014). In this consideration, in the globalisation on the
organisation, there are several factors exit which impact on the Nike:
 Influence on decision-making and strategy: In the chosen business, this strategy
considered effective impact to the development program in systematic manner.
Therefore, it is important to look towards the effective decision-making strategy that
assists to make proper activities in the business environment. In addition to this, company
will also able to undertake more creative activities which make impact on the proper
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business consideration at workplace (Gereffi and Fernandez-Stark, 2016). In order to
look towards the goals and objectives, Nike adopt decision making strategy through they
can focus on their performance objectives.
 Principles of leadership change and process of internationalisation: In addition to
this, principles of the leadership changes and process develop more useful parameters at
workplace. In this consideration, effective results develops that make more progress in
the business environment in systematic manner. In order to look towards the more
perspective elements, it can be said that Nike need to make changes in process and
leadership activities which assists to develop their creative process at workplace. In
addition to this, it will also consider internationalisation process to look towards the
profitability that could be attained through make new activities. Moreover, manager of
the chosen business has responsibility to look towards the principles of particular country
where they are operates to gain competitive advantages. As results, it increasing
effectiveness of the country with business development (Tuleja, 2016).
 International expansion strategies: However, there are several kinds of international
expansion strategies exist that assists to make focus on the development of the business.
In addition to this, Nike can easily work on the several objectives that they are
accomplished through process and policies implementation. In respect to look towards
the different strategies, the business able to move for considered major environmental
elements that helps to focus on the creativity of the businesses. In order to make business
development, manager of the chosen enterprise also considered different activities such
as joint venture, exporting, importing, etc. (Chiu, 2018). All these activities assists to
looking towards the goals and objectives in the enterprise.
 Impact of barriers of international trade: In respect to look towards the international
trade, there are several barriers exist in front of the Nike manager. This is because, in the
international market, area, religion, languages, etc. elements create major impact so that it
reduces effectiveness of the business. However, it impacts negatively on the enterprise
operations so that they need to look towards the creative activities which promote most
significant target development program at workplace (Amankwah-Amoah, 2016). In
order to deal in the new areas, the chosen business able to deliver effectiveness in the
several department so that it increases business performances to make systematic results.
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P5 Different ways of decision-making which work effectively in the global consideration
In respect to deal with the several goals and objectives, different activities has been
promoted that assist to make decisions in systematic way (Savrul, Incekara and Sener, 2014). In
this regard, in Nike, following are certain ways exist that could be considered to work in
systematic manner:
 Command: In respect to considered decision-making process, in the Nike command is
the main way that helps to consist decisions without consulting with the team members. It
is the effective style in which manager of the chosen organisation considered their own
participation only. As per their guidance and work, all people need to move for work
performances. It is effective style in which things are move quickly and team is looking
for the immediate guidance. In the business setting, leaders uses this style for taking large
financial decisions. As results, command decisions considered effective results to make
the best course of the action (Cumming and Zahra, 2016).
 Collaborative: Collaborative decision-making is the effective consideration which like
by leaders to gather useful information. In this way, on the basis of team members
request feedback taking insight. Leaders of the selected business also making
collaborative perspective which increases final call to ascertain proper data and make
different decisions. It is also referred as the evidence based decisions so that strongly
work performance increasing that assists to work in significance manner. Further, there is
high risk exist in term of the taking advise from several people at workplace of Nike.
Therefore, it greatly impacts on the collaborative elements that make major decisions in
the enterprise (Hair Jr, Celsi and Page, 2015).
 Consensus: Consensus based decision-making activities helps to focus on the different
advantages which looking to make proper concentration in decision-making. Leaders of
the Nike get their team members views and considered procedures as per their
circumstances. It will help to make proper concentration to accomplish desired results at
workplace (Wood, Logsdon and Davenport, 2015). In addition to this, in the business
environment it is important to look towards the SEAL team. In the enterprise, there are
several aspects considered to make effective results at workplace. Therefore, type of the
decisions helps to look towards the culture when team allowed voting and considered
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voice as well. It helps to generate significance of the effective performance in systematic
manner (Sassen, 2016).
 Convenience: Further, when at workplace trusted people are exist, it is essential to look
towards the best decisions that helps to increase creativity at workplace. In addition to
this, it also helps to make better decisions towards the relevantly delegation in the
business. It also makes several benefits which includes measurement for empowering the
team. Managers could also pursue their effectiveness to handle and maintain
effectiveness at workplace. In this consideration, leaders of the chosen business build
management team and lead with the responsibilities. It helps to increase the decision-
making activities in great perspective to develop fresh approach to solve the issue and
problems (Kerr and Perdikis, 2014).
In respect to considered the above description, it can be stated that in Nike different types
of ways could be adopted that helps to make decisions in systematic perspective. It is also
developed understanding and reviewing of activities in proper way that helps to increase its
efficiency.
P6 Various routes to internationalisation with includes key barriers
There are different ways exist through which one business could easily expand their
operations and functions in systematic manner. In this consideration, different activities and
performance objectives will be design to look creative perspective (Hill, Hult and MacKenzie,
2017). Further, Nike can enter in different countries with adopting these tools and techniques.
Therefore, their effectiveness increasing which assists to considered independent participating
channels at workplace. They are as follows:
 Exporting: In Nike, there are direct and indirect approaches exist through they can enter
in the new areas of the world. In this aspect, direct exporting considered as the
straightforward so that chosen business makes their commitment to overseas the market
on behalf of the manager. It also provide considered greater control towards the brand
and operations which helps to look towards the indirect exporting. In addition to this, the
chosen organisation can also employ their home country agency to get effective products
into the overseas the market. Main barrier in these methods can be occur cost, language
understanding, etc. (Wood, Logsdon and Davenport, 2015).
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 Licensing: Licensing includes own organisational charges that considered fee and royalty
to use the technology. In this consideration, brand and expertise are major concern which
helps to focus on the effective perspective in the business. Furthermore, Nike need to
follow all regulations and rules that are given by government for particular country. In
this consideration, proper effectiveness will be develop so that aims and objectives will
be ascertained in systematic manner (Savrul, Incekara and Sener, 2014). Main barriers
exist in this way is documentation which needed in different countries.
 Franchising: Franchising includes providing branding, concepts, expertise advises, etc.
that are needed to perform different aims and objectives at workplace. In this
consideration, management of the chosen organisation also tends to the controlled by the
franchiser. Franchising also occurs barriers when the business is not getting proper
information about the country (Wild, Wild and Han, 2014).
 Strategic alliance: Strategic alliance is the important term that describes in the whole
series which considered different relationship between market and companies.
Relationship sometimes also describes between the competitors as well. Therefore, it can
be stated that strategic alliances also describes in term of the non-equity that are based on
the agreements which remains independent and separate (Hamilton and Webster, 2015).
 Joint venture: Joint venture also tends to set up new companies with parties that are
owing with two parties to make their new operations and functions. In this consideration,
proportion of the new business owing with many reasons to set up the joint venture. It
helps to enter in new international areas with access of technology, gain foreign market,
etc. However, in this way main barrier occurs because of the lack of proper knowledge
towards the business and country as well (Ferraro and Briody, 2017). Due to the lack of
proper technology consideration, the Nike get affected in new areas.
CONCLUSION
From the above report, it can be concluded that in the global business environment there
are different activities design and promoted to make systematic results and increases profits as
well. In this consideration, activities are design to make sure that enterprise able to perform
several functions and operations in new areas. Furthermore, report summarised about the policies
and procedures that need to be carry in dew areas for the business development. It includes
several activities which helps to make sure that in new areas' development easily undertaken on
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