Management Solutions for Nike Inc. - Case Study Analysis, University

This case study examines the management challenges faced by Nike Inc. in its Chinese factories, particularly concerning low wages, poor working conditions, and labor disputes. The assignment explores the root causes of these issues, including extended working hours, underpayment, lack of social insurance, and child labor concerns. It investigates the impact of these problems on employee turnover and the company's competitive market position. The analysis includes strategies such as glocalization and international strategies to improve product development, increase sales, and enhance worker welfare. Recommendations focus on providing better remuneration, incorporating new technologies, and addressing employee well-being to foster a sustainable and ethical business environment. The study emphasizes the importance of balancing production demands with employee needs to maintain a competitive edge in the global market.

Running head: SOLUTIONS TO VARIOUS ISSUES IN MANAGEMENT
Solutions to various issues in Management
Name of the Student:
Name of the University:
Author’s Note:

1SOLUTIONS TO VARIOUS ISSUES IN MANAGEMENT
1. Brief Introduction on the issue
Workers at Chinese factories of Nike Inc. together conduct strike as they were receiving
very low rate of wages compared to the work load they have to undergo through in factories.
Issues aroused due to low salaries, underpayments associated with social security measures
as well as contributions towards house funds. They also complained the fact that apart from
salaries, they were not given social insurance. Another problem was that working hours in
the factories got extended beyond 60 hours every week and child labour also came under the
fact of surveillance, children below 18 years of age were made to work in those factories.
There was absence of skilled labour in the country and workers had to undergo through low
rates. Such issues were giving rise to high rate of employee turnover, in turn have a
deteriorating impact on the competitive market. Therefore steps have been taken by the
Company to improve the situation so that it can be able to meet necessary demands. The
Company started consulting with Adidas, another sportswear company so that discussion
can take place between with local solutions for an appropriate solution to the problem. The
company suppliers after discussing with local bodies of government as well as federation of
trade union decided concerns that were expressed by factory workers must not have adverse
effect on the operations and they immediately decided that some of the future orders need to
be allocated to other factories of Vietnam or countries like Vietnam as well as suppliers
from different states. They also started monitoring various contradictories that exist between
factory managers as well as workers.
2. Question based on the problem arose in Nike Inc.
What are the strategies that can be applied for development of products in order to increase
sales and therefore increasing the profits earned by the Company that would help to pay
higher wages to the labourers working in Chinese factories?

2SOLUTIONS TO VARIOUS ISSUES IN MANAGEMENT
3. Solutions to the questions as well as recommendations
The firm can also adopt glocalization strategies for development of products. This particular
approach states the fact that to manufacture products in the home country that is China and
then undertake packaging as well as selling of those products to other countries involving
certain adaptations to be sold in local markets (Ansoff et al. 2018). This will help to reduce
additional expenditure on research or development and allowing products to be sold at
expanded market (Sweeney and McFarlin, 2014). This would also help to reduce risks
associated with proprietary concerns or primary development costs and would help to
increase interests of customers towards athletic sportswear. Therefore profits would be
earned at a steady pace and this would help to provide additional remunerations to workers
such as social insurance apart from wages. This would prevent the parents who work in
these factories make their small children involve in working in factories and they can well
look after their family members and make their children get admitted to good schools for
education. The Company can also adopt International Strategies that would help them to
sustain its business in the competitive market and for this it needs to incorporate certain
innovations as well as technologies like introduction of new machineries in the factories that
would make the tasks easy and reduce additional hours that labourers have to put off in their
factories. This would also increase quality of products and therefore would help in
increasing sales.
Recommendations
Various international strategies can be undertaken to solve the factors that usually help in
satisfying workers towards variety of job opportunities and this would help to recognize
certain aspects by taking care of interests associated with work as well as development.
Certain remunerations need to be provided for better performance and rewards and bonuses

3SOLUTIONS TO VARIOUS ISSUES IN MANAGEMENT
may be given so that they can support their families. It is recommended that the Company
needs to look after their production and also take into account the well-being of employees so
that they can enjoy their work life.
Reference List
Sweeney, P. D., & McFarlin, D. B. (2014). International management : Strategic
opportunities and cultural challenges. Retrieved from
http://ebookcentral.proquest.com
Ansoff, H.I., Kipley, D., Lewis, A.O., Helm-Stevens, R. and Ansoff, R., 2018. Implanting
strategic management. Springer.
Ryan, T. J., 2008. Nike Reports Problems At China Factories. [Online]
Available at: https://sgbonline.com/nike-reports-problems-at-china-factories/
[Accessed 07 Sept 2019]
Jamieson, A., 2014. Worsening China Factory Strike Threatens Adidas, Nike Sneakers.
[Online] Available at: https://www.nbcnews.com/news/world/worsening-china-
factory-strike-threatens-adidas-nike-sneakers-n87951 [Accessed 07 Sept 2019]
Chappelow, J., 2019. Porter Diamond. [Online] Available at:
https://www.investopedia.com/terms/p/porter-diamond.asp [Accessed 07 Sept 2019]