Nike's International Business: PESTLE Analysis and Cultural Factors

This report provides a comprehensive analysis of Nike's international business strategy, focusing on its potential expansion into Mauritania and Sierra Leone. It begins with an introduction to Nike and its business support systems, highlighting the importance of product quality and customer engagement. A detailed PESTLE analysis is conducted to evaluate the political, economic, social, technological, environmental, and legal factors impacting Nike's operations in both countries. The report recommends Mauritania as a more suitable market due to its political stability, government support, and technological advancements. Furthermore, the report examines the cultural factors influencing international business, such as language, ethics, social structure, religion, and values, emphasizing their impact on business practices and consumer behavior. The conclusion reinforces the significance of international business and the strategic choices for sustainable growth. The report includes relevant references for further research.

INTERNATIONAL
BUSINESS

Table of Contents
INTRODUCTION...........................................................................................................................1
Main Body ......................................................................................................................................1
Introduction about Nike..............................................................................................................1
Business support system.............................................................................................................1
PESTLE Analysis........................................................................................................................2
Recommendation.........................................................................................................................3
Cultural factors impacting business while operating at international market place....................3
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
International business consist of all commercial activities that take place to promote and
transfer of goods, services, resources, people, idea as well as technologies across national
boundaries. It refers to all those business activities which are involved cross border transaction or
resource between two or more nations. In this report organisation chose is Nike, an American
multinational corporation that is engaged in design, development, manufacturing and worldwide
and sales footwear, apparel, accessories and survey. This report is going to recommend one
country that could target international trade as well as analysing macro factors of both the
countries. Moreover, determining impact of cultural factor while operating at international
business.
Main Body
Introduction about Nike
Nike Inc. is an American multinational corporation which are engaged in design,
development, manufacturing at world wide. It is operating in footwear, apparel, equipment
accessories and services. It is one of the largest supplier in athletic shoes and apparel as well as
major manufacture of sports equipment. This is one of the most valuable brand among sports
business. It is one of the world's number one athletic shoemaker with 5,00,000 workers in 55
countries and sales topping 40 percent of athletic shoe market. Herein, Nike are operating world
wide now they are planning to operate at different countries that are Mauritania and Sierra Leone
in order to expand their business as well as attain sustainability in competitive marketplace.
Business support system
A business support system is a group of business element used in networking to help
service provider in order to gain customer insight, with real time business subscription and
introducing new revenue generating services. In context to Nike their biggest business support
system is their quality of product that are attracting large number of customers as well as
customer engagement towards their product. With high quality of goods and services as well
with high customer base an organisation will able to operate their business in competitive market
place.
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PESTLE Analysis
A PESTLE analysis's is a framework or tool that is used to analysis and monitor macro
environment factors that may have a profound impact on an organisation performance. It is also
used by companies to track the environment they are operating or planning to launch a new
project, product or services. Herein, Nike are planning to operate at international business for
such are selected two countries Mauritania and Sierra Leone. The macro factors affecting Nike
while operating at this countries are determined below:
Political factor: Political factors determines the extent in which government intervention
are higher in form of policy that impact within organisation or a specific industry. In context to
Mauritania, political factor are increasing at global rate in order to adhere at international
regulation as well as government are funding different organisation to perform their business
organisation. Where in case of Sierra Leone dose not have good political suitability as they they
are lacking behind in it.
Economic factor: Economic factors have significant impact on business operation and
function such a economic growth, interest rate, inflation rate etc. Mauritania have good
efficiency in financial markets in which a business operator have easy availability of liquidity in
equity marketplace in order to expand future globally. It have benefit of liquidity in market
which lead to increase inflation in an appropriate manner. Where as in context to Sierra Leone
has been experiencing sustainable growth rate in recent years although their have been effecting
civil war that are still continuing.
Social factor: This factors This factors refers to social environment that help an
organisation to understand customer need and requirement. Such as cultural trends, attitude and
change in lifestyle. Herein, Sierra Leone are dose not have strong social culture for van
organisation to operate in it. Where as Mauritians are more concerned about their attitude of
consuming goods as they are more attracted towards heath and safety. Herein, a respective
organisation need to build local team in order to understand societal norms and attitudes in better
manner to serve customers.
Technology Factor: This factor is consider about rate of technology innovation and
development that affect a market industry. In context to Mauritania technology and innovation
are growing at faster rate with the effective use of supply chain model in order to have greater
accessibility of information to channels partner that are leading to higher share profit. Apart from
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this, research and development investment both macro level in financial crises are increase.
Herein it will very for a respective company to operate in such effective environment.
Furthermore, Sierra Leone are lacking behind in technological factor as they do not have such
stability in order to operate a business in an effective manner.
Environment factor: This factor is basically influenced by surroundings environment
that impact organisation such as change in climate, carbon foot print and sustainability. In
context to Mauritania government are providing subsidies in order to invest in renewable
sources. For such purpose an organisation need to make plans to adhere in formulating regulation
to meet up the customer's expectations. Where as Sierra Leone are not having such good
environment suitability in performing business activities as they do not have good command
over intellectual property rights, discrimination law etc. Thus, operating business in this country
would not be such successful for a respective country.
Legal factor: Herein, this factor indicates that an organisation need to follow certain
rules and regulation that are abided by government such as consumer law, health and safety
measure, trade rules and regulation. Herein in context Sierra Leone, there are no such legal
factors that are being abided by government rules and regulation. Where as Mauritania are
achieving strong flexibility in their rulers and regulation that are being formulated as well as
provide benefit to a organisation to grow and develop.
Recommendation
From the above discussion it has been recommended that Nike Inc. should operate their
business at Mauritania. This country have strong political stability as well as government are are
supportive along with this country vis high rich in technological factor. Thus, in this country an
organisation will able to achieve their gaols and objectives as well as able to attain sustainability
for longer duration of time.
Cultural factors impacting business while operating at international market place
Cultural factors refers to influence of religion, family, education and social system such
as how an individual live their lives. Even cultural differences between different countries or
between different regions. It is fully complex and fully appreciating its influences task
significant its time efforts and expertise. Herein, some of the cultural factors influencing while
operating business at international level are determined below:
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Language: Language is of the biggest factor of cultural differences that impact business
while operating at international level. In such case marketers must take care in selecting product
names and translating slogan and promotional message so that it convey any wrong message. As
each country have its own custom and tradition that usually determine business practice and
influence negotiation with foreign customers. This factor differs between region of a country and
some countries that have more than language.
Ethics: Business ethics play's an important role of corporate social responsibility where
business are legally and socially obligated to conduct business in an ethical manner. Different
countries have different ethical aspect in conducting business operation. Such as in context to
Nike, it will face problem in operating business at new country as they need to follow ethical
norms and regulation where they want to perform their business. Thus, different ethics of
different country impact a particular business while operating business at international level.
Social structure: Social structure play's an essential role that usually have impact on a
particular company on how its target audience attitude and moods will sift over certain period of
time. It consist of factors such as social attitudes, beliefs, education, legal structure and political
ideology. Their are some of the factors that effect business while operating at international
business are change in preferences of taste as their need and demand changes as per need and
required. This factor can also impact in changes of demographic factor that impact on their target
audience as changes in proportion of demand are different and racial religious and ethnic group
within a society that may have a significant impact on way of business operation.
Religion: Religion is one of the major factor that is an influencer that can effect many
aspects of life including role of women in society, rules about food and beverage consumption,
clothing habits and holiday activities. Herein, religion are different from country to country . It
become difficult for business to operate in such environment that directly and indirectly impact
business function and operation. Thus, it is not easy for particular organisation to operate their
business activities at international level.
Values: values play's an important role within society which are acceptable as well as
unacceptable as this are part of societal fabric of culture which can be expressed individually,
arising from influences of family, education, moral and religious beliefs. Herein, different
organisation have different values while performing their business activities. It can also
influences consumer perception and purchasing power of an individual. Before operating
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business at internation level it is important for a particular organisation in order to examine the
values before operating. Based on such different value an organisation need to aware about their
promotion of their product so that it dose not harm to any values, custom and tradition of people.
Thus, the above mention are some of the cultural factors that are influencing an business
operating while operating at business level. For such instance it is necessary for a organisation to
determine each and every activities very keenly before developing their business at international
level, from such instance an organisation will able top achieve their gaols and objectives and
attain sustainability for longer duration of time.
CONCLUSION
From the above discussion it has been concluded that international business play's an
effective role as it refers to all those business activities which are involved cross border
transaction or resource between two or more nations. Additionally, business system provider
help service provider in order to gain customer insight, with real time business subscription and
introducing new revenue generating services. Herein, an organisation are using Pestle analysis's
as it help to analysis and monitor macro environment factors that may have a profound impact
on an organisation performance. Apart from this an organisation are choosing Mauritania as this
country have strong political stability as well as government are are supportive along with this
country vis high rich in technological factor. Thus, in this country an organisation will able to
achieve their gaols and objectives as well as able to attain sustainability for longer duration of
time.
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