Nike: An In-Depth Analysis of Business Environment and Market Dynamics

This report provides a comprehensive analysis of Nike's business environment, examining various internal and external factors that influence its operations. It begins by outlining different types of organizations, including public, private, and voluntary sectors, and then focuses on Nike's organizational structure, size, and scope. The report explores the relationship between different organizational functions and their linkage with the organizational structure, highlighting the advantages and disadvantages of these interrelationships. Furthermore, it identifies the positive and negative impacts of the macro environment on Nike's business, applying the PESTLE model for detailed analysis. Internal and external analyses are conducted using SWOT to identify strengths and weaknesses, and the interrelationship between these factors and the external macro environment is explained. The report concludes by critically evaluating the impacts of both macro and micro factors on Nike's business objectives and decision-making processes.

Business environment

Table of Contents
INTRODUCTION ..........................................................................................................................4
PART 1............................................................................................................................................4
TASK 1............................................................................................................................................4
Types of organisation..................................................................................................................4
Overview of different types of organisations and growth of international business
environment................................................................................................................................5
Introduction to sub-sectors and the different types of organisation in the industry, the market
size and the growth of the international business environment..................................................5
Different types of organization with legal structures..................................................................5
Different types of organisation with their size and scope:..........................................................6
Overview of different types of organisations and growth of international business
environment................................................................................................................................6
Different types of organisation with their size and scope...........................................................6
Analysing structure, size and scope of different organisations...................................................7
TASK 2............................................................................................................................................7
Overview of different types of organisations and growth of international business
environment................................................................................................................................8
Relationship among different organisational functions and linkage with organisational
structure:......................................................................................................................................8
Analyse the advantages and disadvantages of interrelationships between organisational
functions and impact on organisational structure........................................................................9
Provide a critical analysis of the complexities of different types business structures and the
interrelationships of the different organisational functions........................................................9
PART 2..........................................................................................................................................10
TASK 3..........................................................................................................................................10
Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples..............................................................................10
Apply appropriately the PESTLE model to support a detailed analysis of the macro
environment within a organisation............................................................................................12

TASK 4..........................................................................................................................................13
Conduct internal and external analysis of specific organisations in order to identify strengths
and weaknesses.........................................................................................................................13
Apply appropriately SWOT analysis and justify how they influence decision-making...........15
Explanation of interrelationship between strengths as well as weaknesses and external macro-
factors........................................................................................................................................16
Critically evaluate the impacts that both macro and micro factors have upon the business
objectives and decision- making...............................................................................................19
CONCLUSION .............................................................................................................................19
REFERENCES..............................................................................................................................20

INTRODUCTION
Business environment and market environment refers to the term under which the factors
of the environment impacts the activities of the organisation in different aspects such as positive
and negative. It is required for the organisation to analyse the various internal and external
factors which influence the business of the organisation for the success of company in the
market. There are many factors present within or outside the organisation which becomes threat
for the business in many scenario and impacts the business in negative aspect so it is the duty of
the managers of the organisation to analyse these factors and makes provision for the threats to
protect from negative impact. Nike is the organisation which is chosen here to demonstrate this
report. This report states different types and purposes of organisation such as public private and
voluntary sectors. The size and scope of the Nike are explained here and also relationship
between different types of organisation. It includes various macro environment factors and their
impacts on the organisation both negative and negative. This report contains different internal
and external factors which supports the growth of a business and also interrelation of strength
and weakness of company to the external factors.
About the company
Nike inc is an American multinational company which operates their business in different
countries of the world. The main business of the company is to design develop marketing and
selling of footwear globally. It is one of the most reputed sports footwear brand of the world.
The headquarter of the company is situated in the Beaverton, Oregon in the metropolitan area of
Portland. Nike is the largest supplier of athletic shoes and different sporting equipment of the
world. The company was formed in 1964 by the Bill bower man and Phil knight.
PART 1
TASK 1
Types of organisation

Introduction to sub-sectors and the different types of organisation in the
industry, the market size and the growth of the international business
environment
Different types of organization with legal structures
An organisation is a place where group of people are organized for
attaining particular objective by carrying on their duties and responsibilities.
Purpose of an organisation is to motivate its workforce and provides guidance to
them for achieving organisational goal. There are various kinds of organisations
that are described as under:
Public Sector Organisation:
Public sector organisation is partly or completely owned by government
with objective of raising social welfare and sustain public interest. Purpose of this
type of organisation is to obtain return on investment by generating resources for
development. British Broadcasting Corporation, Bank of England, National Audit
Office, Nike are certain examples of public sector organisations. Among these
organisations, the selected one is Nike.
Purpose: Purpose of this company is to move the world forward through the
power of sports by breaking the barriers and developing community to change the
game for all.
Legal structure: Public sector institutions has following legal structure:
Central government: Political authority which has monitoring power on
entire nation is termed as Central government.
State government: Government which shares its political power with
government of nation is defined as state government.
Statutory corporation: Corporations which are embodied by means of a
special Act of Parliament or any state legislative assembly referred to Statutory
corporations.
Organisers of Nike follows Board of Directors legal structure to
superintend their work.
Private Sector Organisation:
Private sector organisation is owned and powered by an individual or
group of individuals with objective of earning profits. Purpose of organisation is to
earn and maximize profit margin as well as generate job opportunities more than
public sector companies. There are different kind of examples of private company
like JSW Sports, Puma, Umbro. The selected company for this report is JSW
Sports.
JSW Sports company is the Indian multinational company that
provide steel, cement, sportswear and many more.
Legal structure: Private sector organisations has following legal structure:
Limited partnership: It comprises of one or more partners who are
personally responsible for partnership debts and manages business activities.
Limited liability partnership: In this type, liabilities of partners
are limited to the proportion of their investments.
Private limited: A company which has its own legitimate
personality and is separated from its owners is defined as Private limited.
Managers of JSW Sports follows legal structure of Private limited.
to maintain their business activities.
Voluntary
Organisation:
It covers those organisations whose aim is to provide social welfare
to the normal people with full involvement and without any order. Purpose of
this type of organisation is to provide voluntary services and increases social
as well as economical status all over the world. Some examples of this type of
organisation are National Trust, Sported UK and many more. Sported UK is
selected organisation among these. It is a membership and charity
organisation for conservation of heritage.
Purpose: Purpose of organisation is to promoting fairness and creating more
opportunities for the young individuals by some physical activities and
grassoot sport.
Legal structure: Voluntary organisations has following legal structure:
Unincorporated association: It appears when two or more human
resources come together for specific purpose.
Trust: A lawful relationship in which valid title to possessions
invested to a person or lawful entity with trustee duty to handle and use for
other's benefit. The company wants to reduce the negative impact and effects
of Covid-19 pandemic.
Company limited by guarantee: A company without stakeholders
but owned by members who pay formal charges when company is wounded
up.
The sported UK is the company which is supported by National
Lottery funding.
Overview of different types of organisations and growth of international business environment

Different types of organisation with their size and scope:
Overview of different types of organisations and growth of international business environment
Different types of organisation with their size and scope
Public sector organisation:
Size and scope: In Nike, size of employees is 75,400. Scope of Nike
is to offer differentiated products by a single corporation for sale, rather than
products by different companies.
Products and services: Nike provides a wide variety of athletic
footwear, clothes and accessories, athletic and recreational products, sports
equipments.
Vision: Nike has a vision to remain the most connected, distinctive
and authentic brand.
Mission: Within the company, mission is to bring innovation as well
as inspiration to every athlete in the world.
Objective: Main objective of existing company is to do everything
that is possible for expansion of human potential.
Stakeholders: It includes internal stakeholders that are owners,
managers as well as employees and external stakeholders includes customers,
bank, government, chairman, CEO, suppliers.
Private sector organisation:
Size and scope: Number of employees engaged in JSW Sports is
over 55,000. Scope of JSW Sports is to build a culture of sports excellence in
India.
Products and services: JSW Sports company is providing sportswear,
cement and many more items.
Vision: Within company, vision is to build the culture of sports
excellence in India.
Mission: The mission of the company is to usher in the change in a
way it is perceived in the country through professional management of sports
team and atheletes.
Objective: The company has an objective of designing that type of
sportswear and equipments that are not going to be outdated in near future and
are used to run for long term process.
Stakeholders: It includes external stakeholders includes customers,
bank, government, suppliers as well as internal stakeholders that are owners,
managers and employees.
Voluntary Organisation:
Size and scope: Sported UK has employees size of more than 100.
Scope: The Sported UK is the largest community groups that
promote fairness and also develop more opportunities for the individuals by
considering physical activities/.
Products and services: they provide new services and more new projects in
order to build the skills and boost the confidence of local group leaders.
Vision: The vision of sported UK is that “ they want each and every young
individual to have the similar opportunities to full fill and complete their
potential.
Mission: They has mission to handle and tackle the deep-rooted equivalence
and also disengage the benefits of the sports and physical activities for each and
everyone.
Objectives: Sported UK has n objective to invest in the sports and also invest in
the physical activities in order to make it a normal part of life for each and every
person in the UK.
Stakeholders: Sported UK are independent of government and includes the
council, employees.

Analysing structure, size and scope of different organisations
From above discussion, it is analysed that there are three types organisation, that are,
private sector organisations, public sector organisations and voluntary organisations. In public
sector, the chosen company was Nike offering products like clothes, footwear, etc. with
employees size of 75,400 and is following hierarchical organisational structure. The scope of
company is to offer differentiated products and it is following government legal structure. Within
private sector, the selected company is Adidas and they are selling sports wear, shoes and many
more equipments . In the Adidas company the Number of employees are engaged in Adidas is
over 62,285. Scope of Adidas is to become stable for the ambitious up gradation. Sported UK is
voluntary organisation and the main motive of the company is to invest in the physical as well
sports activities so that they can make it a normal part of portion of life for each and everyone
TASK 2

Relationship among different organisational functions and linkage
with organisational structure:
It is a process in which business activities are dissected,
arranged and synchronized to attain organisations targets. Organisational
structure is created in an organisation to coordinate and analyse the
performance of human resources. Within Nike, hierarchical
organisational structure is followed by managers of the company. In this
organisational structure, there is a chain of command from top level
management as well as executives to employees of the company. By
following this type of organizational structure, the senior managers of
the respective company give commands to their subordinates through a
chain for achieving the objectives of the business. Organisational
functions are those functions which are performed in an organisation and
are classified into different departments.
Production and human resource function:
Within Nike, production function decides the quantity of
products to be manufactured and at what price it is to be produced.
With the help of this function, mangers of company also gets an idea of
using combination of inputs at particular price of human resource and
capital. Human resource function performs the role in monitoring the
performance of workforce of Nike by providing training and
development as well as regulating the benefits. Within the company,
production function helps human resource function in providing
information if there is any vacant position for employees in production
department. At the same time human resource function provides labour
forces to production function so that company it helps in reducing the
cost of business and can work in an effective manner to achieve its
predetermined objectives.
Advertising and finance function:
In Nike, advertising function performs the role in publicizing
the products like footwear, apparels, etc. of company through
advertisements, generating advertisement strategies, using digital
interaction. Accompanying to it, finance function within the respective
company plays an important role in keeping all the financial records of
company accurate and updated so that business decisions can be easily
made by managers of company. Within the existing company
advertising function helps finance function in providing information
regarding advertisement costs generated at the time of advertising the
products like clothes and accessories, footwear, etc. And at the same
time finance function helps advertising function by providing and
allocating funds to company in advertising their products in the market
so that company can capture its market share by describing the benefits
and features of the products to them.
Overview of different types of organisations and growth of international business environment

Analyse the advantages and disadvantages of interrelationships between organisational functions
and impact on organisational structure
From above explanation, it has been analysed that each function within an organisation is
related to the another function. There are several organisational functions such as production,
finance, human resource, research and development, sales and advertising. All these functions
within then organisation work together to meet the targets of the business. The interconnection of
each department relay on the basis of dependency and organisational structure. The relationship
of these departments are different in each structure of the organisation. This is the advantage of
interrelation that it helps in improving the skills of human resources through getting information
from each function of the organisation. It gives correct direction to the business for achieving its
objectives. Hence, objectives of the organisation should be specific, measurable, achievable,
reliable and time bound. To make these targets effective and efficient objectives are important.
Provide a critical analysis of the complexities of different types business structures and the
interrelationships of the different organisational functions
Business structures are the methods by which various kinds of organisations are created.
There are several types of functions within an organisation along with various business structures
but nature of different business structures and interconnection are distinct from one another and
makes operational implications as well as business more significant. In private sector, there are
various legal structure such as sole proprietorship, company, limited liability, etc. Within sole
proprietorship, there is a complexity in the business as there is a single individual who bears the
risk and losses of its business. In public sector, there are political complexities and issues of
authority and power. Within voluntary organisations, sometimes the complexities occurred
regarding the finance, human resources, governance and undue influence.

PART 2
TASK 3
Identify the positive and negative impacts the macro environment has upon business operations,
supported by specific examples.
PESTLE ANALYSIS
It is very important for the company to analyse and identify the external factors and
macro-factors that create impact on the company and on the productivity of the company. So in
order to analyse and identify the impacts of macro environment on the operations of Nike there is
an consideration of the Pestle analysis. Pestle analysis consider six factors political factors,
economical factors, social factors, technological factors, legal factors, environmental factors. In
context of Nike the pestle analysis is mentioned below:
Political factors: Political factors are very essential and important for the company and in
United states the political rules and regulations are amazing so it create positive impact on the
company, apart from that, The UK and UK government develops and formulate different
initiatives that provide and caters wide range of goods for the company.
Economic Factors: This is the factor that are dealing with sales and profit margin of the
company. There are few factors that create impact on the company like Nike is the company that
can target the market which are emerging across the globe and the production level of the goods
is tardily rising or increasing because of the development and enactment of the economically
backward agencies.
Social Factors: Social factors and social conditions are known or are called to create impact and
affect the sales of any company. In context of Nike company it has been analysed that work
stress is an much common issue that are identified by the impel people in order to find and
analyse leisurely activities. The company are required to refine their activities and their few
production practices and it is also important for the company to make them safer so that the
consumer become aware about the safety of the good and services.
Technological factors: Nike company is working and adapting different advance techniques
and technologies so it create more new opportunities for the company in order to achieve their
task. Apart from this, they are using that data and information which are available from the

technological sources in order to build more vantage points that will going to support the
company to achieve their goals and increase their profit.
Environmental Factors: These factors are important and there are different factors that affect
the business like production of nature and the properties that are owned by the company is
known to causes of water as well as air pollution.
Legal Factors: Tax evasion and many more other factors which are associated to legal issues are
affecting the company.
There are many factors which are present in the macro environment impacts the
operations of Nike in both negative and positive aspect and the brief discussion related to the
same are given below.
 Covid outbreak :- One of the most important macro environment factors which
impacts the business operations of Nike and other companies of the world is covid
pandemic. It impact the global economy very badly and the global economy
suffers from the negative growth. The covid outbreak hit the conditions of United
States very badly and most of their business suffers from great losses. The
negative impact of covid on the business of Nike is it stops all the sports
tournaments and events which enabled the company to suffer from suffer losses in
their profits. It faces 51 percent loss in their quarterly revenue.
 Slow down of the Chinese economy :- Most of the revenue of Nike came from
the Chinese market and company operates their business in these market from

very long time and capture considerable market share in industry. There is a
severe slowdown kin the economy of China due tom some natural disasters such
as tsunami and many more. The most important factor which impacts the
economy of country is the pandemic of covid. The outbreak of the covid hit the
economy of China very badly and all the activities of the economy shuts and the
demand of sports shoes and equipments goes down which impacts negatively on
the revenue of Nike.
 United states market :- The market condition of united states are stable after the
covid Outbreak. This can be possible by the efforts of the government of country
in vaccination and many more. The business conditions becomes favourable as
the economy start grow positively. This scenario provide positive impact on the
management of Nike because it open many opportunities for the company in
market.
Apply appropriately the PESTLE model to support a detailed analysis of the macro environment
within a organisation
In context to Nike, PESTLE analysis is conducted to examine the aspects of external
environment which are influencing the operations of the respective company. The six factors
within the pestle analysis are political, economic, social, technological, legal and environmental.
Favourable regulations and rules associated with trade and taxation policy of international
markets as well as political stability within the US positively impacts the functioning of Nike.
Economic factors include inflation, unemployment rate and many more factors. The respective
company is gaining advantage of lower interest rate that helps the company in encouraging the
investments (Gao and Li, 2020). Besides the factors like inflation, high GDP and stability of
economy as well as savings makes sure regular demands for company's goods. Within the
country, favourable ethnic as well as religious scenario positively impacts the operations of Nike
because of high income and living standard which is followed by intense employment rate. The
company is using highly updated machines that helps it in effective innovating and developing
its products along with reducing the cost of business. Climate and temperature of the country are
favourable and positively impacts the functioning of respective business. Legislations regarding