Nike's Business Environment: An In-depth Industry Analysis Report

This report provides an analysis of Nike's business environment, focusing on the sports industry and its sub-sectors, including public, private, and voluntary sectors. It examines Nike's functional organizational structure, highlighting the roles of different departments such as marketing, operations, IT, and finance. The report also includes a PESTEL analysis, discussing political, economic, social, and technological factors impacting Nike's operations. Furthermore, the document likely contains a SWOT analysis (though not explicitly stated) to assess Nike's internal environment. Desklib is a platform where students can find similar solved assignments and study resources.

Business and Business
Environment
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BUSINESS AND BUSINESS
ENVIRONMENT
INTRODUCTION
Business environment is referring to collection or sum of all the external and internal
factors that are related to customer needs, expectation, demand and supply,
government, market trend etc (Möller, Nenonen and Storbacka, 2020). The report is
based on Nike, that is multinational corporation which are designed, manufacturing,
development etc. The report discussed the sub-sectors, size and growth of different
types of industry with the help of organisation structure.
Introduction to the sub sector of organisation
 Sports industry is the industry in which the services and the products are delivered in context of sports. The sport industry is bifurcated
into three sub sectors which include public, private and voluntary sector.
 In the sectors there are many companies which are divided according to their size, scopes, mission and the business objectives of the
organisation. All the organisation contributes in the sport industry equally but in different style or manner. (Lee, 2017)
Public sector
 public sector refers to the department, agencies or units which are based on the government.
 In this sector the amount is collected in from the people inform of direct and indirect taxes.
 The facilities and possibility considered in private sector are of the people and for the people of the country in order to deliver satisfaction.
 The government provide sport equipment as the commodity and area for the sport activity is services to fulfil the demand and supply of
consumers.
 The public sector also introduces various programmes to motivate or encourage the youth and adult as well as old people for being active
citizen of nation.
 JD sport organisation is a retail company which considered as the public sector industry.
 The organization delivers wide range of clothing and sportswear accessories to the consumers.
 The organization includes every size of the products with the mission is to deliver huge options to the customers (Turner, D. and
Carnicelli, 2017).
 The objective is to increase the market share by 30% by introducing new outlets.
 JD sport organisation is a retail company which considered as the public sector industry.
 The organization delivers wide range of clothing and sportswear accessories to the consumers.
 The organization includes every size of the products with the mission is to deliver huge options to the customers (Turner, D. and
Carnicelli, 2017).
 The objective is to increase the market share by 30% by introducing new outlets.
Voluntary sector
 it is considered as the non-profit organisation which aim to deliver social support and addresses the social causes rather than generating
profit.
 In this sector the organization deliver various programmes to give assistance to the sport personality in order to give wings to the
individual.
 EFL trust is the organization which deliver product and service related to the sports.
 Puma is the partner of the organisation which provide retail sport product in wide range.
Private sector
The sector includes those organisations which are privately owned by the entrepreneurs (Jones, et.al 2020).
The aim of the organisation is to generate profit in exchange for services offers to the buyers.
The organisation delivers the product with the objective of achieving the goal of the organisation.
The organisation provides facilities of sports product like clothing, sports equipment’s and footwear too.
The vision of the organization is to lead the international market by growing surplus.
Organisational Structure
Organisational structure is related to the system that are accomplish and connecting with the activities that are occur within the
organisation. There are four types of organisational structure such as Divisional, functional, matrix and autarchy.
There are major three types of business functions such as finance, marketing and operations. These three functions are different according
to size and nature of organisation and the organisation structure followed by the Nike is functional organisational structure.
According to functional organisational structure there are sub division of department on the basis of marketing, production, human resources, information
technology and customer services. All these departments are work accordingly ( Gaspary, Moura and Wegner, 2020). Each the functions are inter-related
to each-other because it is help to achieve the business objective. Also, marketing team are promoting the services that can be offered by organisation and
it has inter-related with all the functions. Production department are produced the product on the basis of commands of marketing team because they have
all the information regarding the demand of customer. The software and technical things are followed by IT department. Functional structure is related to
all the skilled specialist of their field.
Organisational function
The chosen organisation is Nike that is use functional organisational structure and there are different departments included in this structure
such as marketing, operations, information technology, customer services, finance department etc. All the departments are inter-related to each other
marketing department is take the responsibility in order to developing and managing the business growth when it perform according to the work closely
on the basis of marketing the efficiency of the business are monitor by finance department there are also helps in order to generate revenue ( Brezigar and
Vidau, 2018). The finance department are responsible for transporting the revenue for the different activities which are ensure about maximisation of
growth of wealth. With the help of marketing there are also helps to promote the product and services of the company such via digital platforms.
Information technology are also help Nike in order to radiated about how companies are practising on marketing. They are widespread
availability of communication and information are belonging to marketing department. There are other functions that are changing the relationship
between customers and suppliers. There are competitive advantages so that it has maintain the rivals, IT are help to create the new product by
considering the existing market that can help for enhancing the customer services. The advertisement of products and services are depending on the IT in
order to promote the products and services that are help for providing new experience so that it can help for targeting the new audience. The B2b and
B2C business are depend on the marketing’s strategies of business. There are so many software that are used by organisation in order to benefit the
marketers such as MIS (marketing information system) which are enable for manager in order to share information and work together virtually.
The operation and production department are work together for making goods at the time of operation process which is also defined as act of working
(Hui, Latif, Hinsliff-Smith and Chen, 2020). When both the department are come together there are action taken such as turning the raw material, capital
into services and products, human resources which can be sold by the company. The production management are related to administration which are
belongs to activities that are help in creation of goods. Operation management are also known as the part of concerning management with delivery and
production of services and goods. The motive of each of the department is to meet the objective of the organisation so that it can help for maintaining the
growth.
Advantages: The executive and team leader has proper experience and knowledge for the particular field. For instance, when the person is responsible
for the IT department he has the perfect knowledge about it because there is need of responsible person. Also, all the team member has the clear idea
about the hierarchy of firm so that they can understand about to whom they are going to reports. The functional organisational structure is help to earn
profit for the business and also grouping the employees who are based on their expertise and skills.

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Disadvantages:
This structure is related to one dimensional that is why employees are getting boredom in order to wait for new challenges. There is possibility of not
using correct appraisal so that it can create conflicts that may arise in order to appraisal and promotion system ( Wei, Liu and Hsieh, 2021). Also, in the
functional organisational structure there are seen that employees are getting knowledge about their department only they have no choice for learning new
skills.

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Notes: Along with SWOT analysis as internal environment in context of leading company NIKE. Furthermore, the report will shade a
light on the interrelationship among the analysis to promote the organisation.
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Notes: It will denote the upcoming or forthcoming challenges for the organization. With the help of the PESTEL analysis the
administration introduces the services and commodity attribute of the organization.
Political factor
 The factor consists of the rules and regulation impose by the government for the business enterprises and the industry.
 This factor gives assistance to the organization in order to grow in the global as well as international market.
 In this factor authorities apply the employee’s laws in which the individual is protected under the authority.
 The enterprises expand the business in foreign market by determining the political background of the company.
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 The government control the taxes and the price of the commodity so the entrepreneur formulates the policies for the company
to earn more surplus in the market.
 In a political factor due to lack of political stability the enterprises face troubles in operating the business on international level.
 The entrepreneurs of the organization hesitate to introduce the business in international market due to some political conditions
like public violence and looting.
 The organisation Nike is affected by manufacturing and tax regulation in the different country with different norms.
 As every country has assorted political situation the organization find difficulty in operation and custom procedure of business.
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Notes:
 The economical level of the consumer gives an idea to organisation to grow in the market.
 The willingness of consumer to pay against the services and commoditizes offer by the enterprises are considered in the
elements.
 The interest rate charged by the lander or borrower is highly electable as it increases the expenses of the organization.
 Another element is the inflation in the marketplace Purchasing powers of the consumer is reduced by the changes in inflation.
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 The affordability of different class people is also involving under the heading of economic factor.
 The cash-flow off the monetary system is another thing which motivate the individual person to consume product of
organization.
 As Nike is established in the stable country which deliver the opportunity to reduce the risk of the company.
 The organisation has increased the operation for higher growth.
 The availability of cheaper product in the marketplace creates problems for the brands Nike because the organization produce
expensive product in the marketplace.
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Notes:
 The enterprises launch different campaigns and programmes in order to encourage the buyers.
 The entrepreneur of a company manages or maintain the social standard in order to build an identity in front of competitors.
 As per the culture of the region enterprise forms norms, customers and practices.
 The ethical values and norms also considered in the social factor.
 Through the marketing campaign the organisation delivers social message of delving safe product to the company.
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 To build the grate reputation the organisation delivers modified product which attract the consumers.
Notes:
 Organization spread awareness among the people with the advancement of technology. The organizational person
communicates with the customers due to the technological factor.
 The employees' convenience the targeted audiences with the features of technology.
 With the assistance of technology, the organisation is able to keep up to date to the consumer.
 The organization modifies various techniques as per the preferences of the consumer.
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 Company utilized various online platforms such as Facebook, Instagram, chrome and Pinterest etc.
 the organization consume more technology in order to coordinate and communicate from one employee to another or
consumers.
 The organization innovates the technology for fulfilling the demand and supply of the consumer.
 The organisation Nike invest more capital in the research and development programme.
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Notes:
Environmental factor
 In the environmental factor the buyers are influenced or encourage by the surrounding or atmospheric environment. The
expansion of environmental law creates various opportunity to modify the sustainable programme organized by the company.
 The organisation delivers winter attires at the time of cold weather and in hot weather the organisation delivers summer cloths
similarly provide rainy cloths or accessories as per the climate.
 It fulfils the seasonal demand of buyer and generate profit fort further growth.
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Notes:
Legal factor
 The legal factors are consisted of health and safety, equal rights and opportunity to consumer as well as employees.
 Many times, the organisation face the lawsuit for the poor working conditions.
 The improvement of working condition ibn developing country led to rise in the price of the commodity.
 Through the legal system the or4ganisatyilon deliver high standard to the working people of the organisation.
 The organization has opportunity to raise the brand value in the marketplace with the assistance of proper customer
sat5isfaction.
 For the satisfaction the organisation resolves the issue in effective as well as efficient manner.
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Notes:
 In the analysis every word stands for something like s stand for strengths, w for weaknesses, o for opportunities and t for
threats of the organization.
 It is the greatest source for the collection of the information in order to survive and lead the market.
 The SWOT analysis is a perfect rule to examine the position of the organisation in the marketplace.
 Moreover, it gives assistance in competing the competitor of the organisation.
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Notes:
Strength
 The organisation is delivered the product as per the preferences and perceptions of consumers and athletics.
 The organization innovates the services on regular bases and satisfy each and every customer.
 The organisation has total control over the function of the enterprise in order to deliver the best productivity in the
marketplace.
Weaknesses
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 The organisation serves poor quality or bad labour condition in the many countries.
 The company faces many controversies in the marketplace which decrease the value in front of consumers.
 The Nike has poor quality management system because of which the brand is unable to deliver the similar q1uaity to different
countries.
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Notes:
Opportunities
 In order to attract more customer, the organization can improve the marketing programme along with product mix of the
organisation.
 The company has opportunity to increase the brand value and create awareness among the people with the assistance of
promotions of the product.
 The brand has opportunity to deliver the best standard to the employees as well as consumer for further growth.
Threats
 Another threat of the company is accusation is filing the case against the brands by the consumers under consumer protection
act.
 The organisation does not spread awareness in a regular basis among the people which create trouble for the organisation.
 The availability of huge competitors in the marketplace is one of the strongest threats for the organisation.
 The organization avoid to paying large amount of taxes impose by the authority of the nation.
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Notes:
 In order to save themselves from the controversy the organization should work on the complains and feedbacks of the
consumers.
 The organisation utilized the great reputation strength to attract the customer as the reputation influence the socio culture
factor.
 in short the people willing to buy those brands which has great image in the market.
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 With the assistance of eminence amount of innovation with the technology the company should manage the quality of the
brand so the company is able to deliver same product in different country.
 The organisation should work on the opportunity which is employees working condition by providing training and handsome
salary so the organisation will be free from all the legal accusation.
 The organisation supposed to provide more sustainable programmes so the company can deliver the message of good health
and safety to the consumer.
 The brand supposed to work more on the product delivered to the customer rather than research and development programmes.
 The Nike should pay the large taxes impose by the authority which allow the organization to lead the market with all the legal
terms as well as contribute in the economy fully.
 The organisation needs to follow all the rules and regulation which is imposed by the government which assist in maintaining
good relationship [ with the government.
 In order to solve the issues which are considered in the environmental factor the organization should take green initiative and
decrease the pollution of the hosting countries.
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Notes:
 The company should work on the internal as well as external environment of the organisation.
 In the business environment it is very important to identify taste and preferences in order to satisfy them.
 If the consumer is not happy with the services, the company will not able to survive in the marketplace.
 Furthermore, the highlighted points of recommendation for the company will help out to face the upcoming challenges of the
organisation.
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Notes:
 Shoal, 2018. Methods of analysis of the external environment of business activities.
 Bolland, E.J., 2017. Internal and External Analysis. In Comprehensive Strategic Management. Emerald Publishing Limited.
 Nguyen,2018. Identity Representation in Customization. A Case of Nike Shoes. Int. J Sup. Chain. Mgt Vol, 7(5), p.582.
 Borts, A.I., 2018. Nike, inc.-athletic footwear and apparrel (Doctoral dissertation).
 PANDEY, B.C., 2017. Nike Inc-Complete Analysis: SWOT, PESTLE and Marketing strategy. BookRix.
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 Teoli, D., Sanvictores, T. and An, J., 2019. SWOT analysis.
 Kumarasiri, B. and Dissanayake, P., 2020. Barriers to implementing waste-to-energy projects in Sri Lanka: a PESTEL
analysis. Built Environment Project and Asset Management.
 DOMINGUEZ, L., 2020. Nike vs. Adidas. International Relations Journal 2020, (39), p.37.
 ASENJO, D.J., INTERNATIONAL MARKETING MANAGEMENT.
 Childs, M. and Jin, B., 2018. Nike: An Innovation Journey. In Product Innovation in the Global Fashion Industry (pp. 79-111).
Palgrave Pivot, New York.
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