Identifying Benefits and Drawbacks of Global Business for Nike, Inc.

This research project investigates the influence of the global business environment on the business success of Nike, Inc. The project begins with an introduction to the global business environment, including its various dimensions such as cultural differences, political risks, and legal problems. The research aims to identify the benefits and drawbacks of operating in a global environment for Nike. The project poses research questions examining the core concepts of the global business environment, the advantages and disadvantages for Nike, the relationship between the environment and Nike's success, and strategies for overcoming drawbacks. The literature review explores the concept of the global business environment, advantages such as geographic expansion and disadvantages such as resource constraints. The methodology section details the research approach (qualitative), research instruments (questionnaires), and analytical techniques (regression analysis). A Gantt chart outlines the 16-week timeline for the research activities. The executive summary provides a concise overview, highlighting data collection methods and recommendations for overcoming negative impacts of the global business environment.

Research
Project

RESEARCH PROPOSAL
TITILE
“To identify the benefits and drawbacks of a global business environment upon business
success. A case on Nike, Inc.
CHAPTER 1: INTRODUCTION
Background of the research
Global business environment is multidimensional including the cultural differences,
political risks, exchange risks, taxation and legal problems.(Adekola and Sergi, 2016). All these
factors are highly affect on business success in different ways such as language, education,
values, religions, customs etc. For this project, chosen organisation is Nike which is an American
multinational corporation. It was founded by Bill Bowerman, Phil Knight on 25 January, 1964
and headquartered Washington, Country, Oregon, US. Company engaged in the design,
manufacturing, development, sales and marketing of footwear, apparel, accessories, equipments
and services across the world. Along with this, global business environment impact on business
success of company by improving its brand awareness, developing innovation in products and
increasing market share. Apart from this, global business environment also impact on business
success in negative manner such as government policies, quantitative restrictions, lower excise
duty, health and marking regulations etc. All these are negatively impact on business success and
growth at international level. Therefore, global business environment positively and negatively
influence on business success.
Research aim: Main aim of this research is, “To identify the benefits and drawbacks of a
global business environment upon business success. A case on Nike, Inc.
Research Questions:
 What are the basis concept of global business environment?
 What are the advantages and disadvantage of a global business environment on business
success of Nike?
 What are the relationship between global business environment and business success of
Nike? What are the ways through which Nike can easily overcome drawbacks of global
business environment?
1

Research Objectives:
 To study about the concept of global business environment.
 To identify advantages and disadvantage of a global business environment on business
success of Nike.
 To analysis relationship between global business environment and business success of
Nike. To recommend different ways through which Nike can easily overcome drawbacks of
global business environment.
Rationale for choosing the topic or research :
Main reason behind selecting this topic is to identify the positive and negative impact of
global business environment on business success of Nike. Global business environment is a
biggest topic that help a researcher in personal as well as professional way (Botha, Kourie and
Snyman, 2014). In personal way, through this topic, investigator can easily enhance their
literature review skills, data-collection and data interpretation skills also. This type of skills also
support a researcher in professional by help them in overcoming research issues and achieving
long term goals and objectives for Nike.
Importance of research:
Global business environment is essential concept for an organisation to successfully
develop their business operations and functions internationally. It will be also essential for
workers by providing job opportunities and reducing wastage of resources (Compact, 2014).
Thus, it will support a researcher or organisation to accomplish better outputs whiting given time
duration.
CHAPTER 2: LITERATURE REVIEW
A literature review is an essential part of research project which will support an
investigator to accumulate in-depth information related to the study. It includes the current
knowledge about substantive findings and help a researcher to identify theoretical and
methodological contributions to a specific research topic (Doh, McGuire and Ozaki, 2015). In
this section of research, all objectives and questions of a study are address in effective manner.
Concept of global business environment.
According to the Sandeep Singh, 2019, global business environment can be defined as an
environment in which various factors are includes like location, politics, technological
2

advancement of firm that provides positive and negative influences on the decision making of
firm on the usage of resources. In addition to this it is a set of factors which consists of various
activities of consumers and competitors, government policies, technological developments that
impacts on the business operations and decision-making of a firm in positive or negative manner.
Advantages and disadvantage of a global business environment on business success of Nike.
According to the Todd Anderson, 2019, global business environment can be explained as
the environment in various sovereign nations, with different factors exogenous to the national
environment of the company, impacting decision making on utilisation of resources and
capabilities. It can be classified into the internal and external environment of an organisation.
Advantages of global business environment: It will help Nike in geographic expansion
that may be applied as a business strategy. It will also assist an organisation by help them in
managing product life cycle. Every product of Nike has to pass via various stages of product life
cycle when the business product reaches the last phase of life cycle in existing market, it may
acquire proper response at another markets.
Disadvantages of global business environment: Nike set up their production facilities in
those nations where Exhausting natural resources are available in enough quantities. Another
disadvantage of global business environment for Nike is shifting of investment. It is mainly
related to profitability and effectiveness of its operations.
Relationship between global business environment and business success of Nike.
According to the Ferraro and Briody, (2013) global business environment has positive
impact on business success of Nike. It will help an organisation in business expansion, managing
product life cycle, technology advantages new business opportunities, proper use of resources,
availability of quality products, earning foreign exchange, assist in mutual growth, investment in
infrastructure etc. The main positive relation of this environment is that, it provide ultimate
opportunities to the organisation in growing their market share beyond the borders of their
nation. It also enable them in facing challenges of wide market areas in the form of
transportation, cultural uncertainty, etc. so that better profitability can be received in future time.
The main advantage of being global for an organisation is to gain access of new sources of
revenue so that better market presence will be build in the mind set of customers.
Different ways through which Nike can easily overcome drawbacks of global business
environment.
3

According to the Barry Moltz, 2019, global business environment has different
drawbacks on business success and growth on Nike. Shipping customs and duties, Language
barriers, cultural differences, servicing customers, returning products, intellectual property theft,
shifting of investment, exhausting natural resources etc. are identify one of the main barriers
which impact on success of an organisation. In order to overcome all these drawbacks some
ways are suggest to Nike which are determine as under:
Recruit skilled and talented employees: Company should hire talented and skilled
employees who has knowledge about different language. It will help an enterprise in overcoming
language barriers. By overcoming this barriers, company can easily do their business operations
and activities at global level and in more successful and effective manner.
Innovation: Nike should develop innovation in its shoes products and services which will
also assist them in increasing customer base and market shares. It will also effective for growth
and success of an organisation at global level. Thus, innovation is the development of client
value via solutions that meet new requirement, unarticulated requirement, or existing market
needs in innovative and unique way. Therefore innovation is essential for Nike because with the
help of these, they can easily solve difficult problems, increase productivity, market their
business and beat competitors.
Implementation of product life cycle: Company should also use product life cycle which
will help them in reducing wastage of products and also help them in retaining strong preference
in international market. Product life cycle is essential way for success and growth of Nike. It
assist an organisation owners to manage sales, predict profitability, determine prices and
compete with other businesses successfully.
CHAPTER 3: METHODOLOGY
Research methodology introduces as an effective process of data collection used by
researcher to gather accurate information about the topic (Ferraro and Briody, 2013). In this
section, some methodology may includes which name is publication research, survey, interview
and other relevant techniques. There are some useful methods and approaches which are
determine as below:
Research approach: For collecting accurate information and data about the topic, there
are mainly two types of research approach which name is qualitative and quantitative. In case of
quantitative research, it is mainly related with the positivist paradigm. It generally involves
4

gathering and converting data or information into numerical way so that statistical measurement
can be made and effective conclusion drawn (Gupta, 2013). On the other hand, under qualitative
research, it is generally related with the social constructivist paradigm which focuses the socially
constructed nature of actuality. Thus, both qualitative and quantitative research are essential but
for analysing impact of global business environment on business success, qualitative research
will be used because it provide accurate and quality data about the study.
Research instruments: It introduces as an effective tool of measurement used by
researcher to obtain data and information about the study. There are different types of research
instruments including interviews, questionnaire, case studies, modelling etc. All these are
essential tools but according to the research or topic, questionnaire will be more suitable because
it provide reliable and valid data related to the topic (Hamilton and Webster, 2018).
ANALYTICAL TECHNIQUE
It refers as an essential method or a procedure for the identify of some issue, fact or a
status. There are mainly three types of analytical techniques such as regression analysis,
grouping methods and multiple equation models. All these are essential but according to the
topic, regression analysis will be used because it is more suitable in collecting proper
information related to the study. Regression analysis assumes that the dependent variable is
instantly affected by one or more independent variables of topic. According to the research,
success of Nike is independent variable which is mainly depend on global business environment.
Thus, regression analysis will be more useful analytical tool for researcher to complete research
activities within given time duration (Kankaanranta and Salminen, 2013).
TIMELINE OF RESEARCH ACTIVITIES
In order to identify time period for research activities, Gantt chart is consider one of the
best graphical tool. It will help an investigator to analysis starting and ending time period for
completion of research tasks or activities. This chart of graphical tool also assist a researcher to
done entire work related to the project in given time period. Thus, Gantt Chart is useful graphical
presentation tool for researcher to complete field of study systematically and timely. The
research will be conducted over 16 weeks with the different activities for each week presented as
below:
5

From the above mentioned graph, it has been concluded different activities related to the
project. There are different number of activities needed by researcher to complete whole research
such as development of aims and objectives, creation of literature review, data collection, data
6

analysis, conclusion and recommendation. All these are main and useful activities for fulfilling
aim and purpose of research within given time duration. In addition, it is a horizontal bar chart
used in project management which will help a researcher to plan, coordinate and turn particular
activities in a project. It is most useful and essential chart which will assist an investigator to
complete all activities of research and gain better results for future study (Popescu, 2013).
7

RESEARCH PROJECT
EXECUTIVE SUMMARY
Global business environment comprises the economic, political, legal, tax, regulatory,
social and technological environment. All these are main factor which highly impact on business
growth and success of an organisation. For this project, Nike is chosen organisation that mainly
specialise in selling of shoes. For accumulating accurate information, literature review, research
methodology have been done (Shenkar, Luo and Chi, 2014). All these are essential for an
investigator to gather appropriate and in-depth information about the topic. There are some
advantages as well as drawbacks of global business environment which impact on business
growth. As in order to overcome negative impact of global-business-environment, some
recommendation are also included.
METHODOLOGY
Data collection: For gathering data about the study, there are two methods such as primary and
secondary.
Primary data collection: Primary research introduces as an effective process of
collecting data directly from first handed sources as opposed to accumulating information from
research study that others have completed. Information related to the topic can be obtained by
mail, observation, face-to-face interviews, questionnaire or telephone surveys. All these are
essential but according to the study, questionnaire must be used by investigator because it
provide valid and reliable information about the topic (Savrul, Incekara and Sener, 2014). For
selecting sample size, convenience sampling as a type of non-probability method is used by
researcher. With the use of this method, 60 respondents will be taken into consideration.
Secondary data collection: Secondary data introduces to data which is gathered by
someone who is individual other than the user. For accumulating secondary data, books,
magazines, journals, publication research, articles etc. will be applied because it provide in-depth
information which is related with the impact of global business environment on business success
of Nike.
Thus, both primary and secondary source of data collection must be used for completing
research activities in systematic manner (Harrison, 2013). in case of primary research,
8

questionnaire will be used by researcher. On the other side, under secondary research, review of
literature is main source which must be done in previous section.
RESULTS/FINDINGS
Q1) Are you have knowledge about the basis concept of global
business environment?
Frequency
a) Yes 50
b) No 10
a) Yes b) No
0
5
10
15
20
25
30
35
40
45
50
50
10
Frequency
Q2) What are the benefits of a global business environment on
business success of Nike?
Frequency
a) Availability of resources 20
b) Technological up-gradation 26
c) Economies of scale 14
9

a) Availability of resources
b) Technological up-gradation
c) Economies of scale
0
5
10
15
20
25
30
20
26
14
Frequency
Q3) What are the drawbacks of a global business environment on
business success of Nike?
Frequency
a) Vulnerable change in external factors 20
b) Culture impact 14
c) Government legislation 26
10