NIKE Plc: Business Environment Analysis - PESTLE, SWOT & Expansion

This presentation provides a comprehensive analysis of the business environment of NIKE Plc, utilizing the PESTLE and SWOT frameworks to evaluate both external and internal factors impacting the company's operations. It begins with a company overview, followed by a detailed PESTLE analysis covering political, economic, social, technological, environmental, and legal factors, highlighting both positive and negative impacts. The presentation then delves into an analysis of various factors related to NIKE Plc, including competition, funding, legal complexities, and investment opportunities. A SWOT analysis identifies the company's strengths, weaknesses, opportunities, and threats. Furthermore, the presentation critically evaluates these factors using Porter's Five Forces, ultimately assessing the feasibility of NIKE Plc's expansion plans. The conclusion summarizes the key findings regarding the influence of internal and external factors on the firm's working environment.

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TABLE OF CONTENT
 INTRODUCTION
 MAIN BODY
 Company overview “NIKE Plc.”:
 Analysation of the pestle frame work by considering the positive and negative
impact of external factors in the context of “NIKE PLC.”:
 Analysing different factors related to the company “NIKE Plc.”
 Swot analysation of the firm “NIKE Plc.”:
 Critical analysation of both external and internal factors by using in the porter
five force analysis and also determining further proceedings with the expansion
plans of the firm in the context of the firm “NIKE Plc.”:
 CONCLUSION
 REFERENCES

INTRODUCTION
 Business environment is considered to the total of all the
external things impacting business operations of organization
and their industries.
 The presentation based on the business environment of the
NIKE will be including the pestle analysis of the firm and swot-
analysis of the firm.
 Later in the presentation it would be showing about the critical
analysis of the both the internal and external factors by
determining whether the organization would be proceeding with
expansion.

Company overview “NIKE Plc.”:
 NIKE plc. Is an American multinational brand dealing in the markets of the designing,
development, marketing, manufacturing and sales.
 The firm's former name was blue ribbon sports inc.
 These all activities of the firm includes various products like foot wear, apparels,
equipment, accessories, and various kinds of other services.
 The company operates with it head quarter in Beaverton, Oregon in the metropolitan
area of Portland.
 Firm was founded in 1964 on January 25 by the Bill Bower man and Phil Knight.
 The firm operates as the largest supplier of athletic shoes and apparels.

Analysation of the pestle frame work by considering the positive and
negative impact of external factors in the context of “NIKE PLC.”:
 Political factors: The proper stability of the American economy can give firm with proper
growth options by also providing the firm with favourably opted international tax agreements.
 Economic factors: In the Financial means the organization can target the markets that are
operating at emerging point with in the world. Facilitating the business operations by using in
the compendious marketing strategy, the company can maximize their overall growth in the
markets and can also have in the access to the new market and customers.
 Social factors: Consumers from across the world is adopting the health conscious ways in
their life styles. Lifestyle changes are also the factors providing the impact on health of the
public.
 Technological factors: The firm can use in the data available to it from the various
technological sources that would be providing the firm with information that will be helping
in the firm to build in the products accordingly that would be helping in the firm to increase
the profits.
 Environmental factors: Production of the nature friendly products with in the portfolio of the
firm. The firm has made the promises related to the environmental safety and proper waste
management in the organization and outside the organization.
 Legal factors: the firm promising about the fake discounts is one of the issue that can
demolish the value of firm with in their customers.

Analysing different factors related to the company
“NIKE Plc.”:
 Level of competition: company face in the main competition from the side of the
ADIDAS, FILA, PUMA, Under Armour, Skechers, New Balance, etc. The
organization experiences the competition level from all the competitors in the market
setted their businesses in the powerful ways and operates at their full efficiency.
 Funding activity: The time firm started its business operations with in the 1962 and it
began to have its all the first funding from FIRST NATIONAL BANK OF OREGON
firm's official revenue reached the line of 150000 and the firm started to climb its
ladder of success.
 Legal complexities: the company faced in the legal complexities with the issues
ranging in the issues related to the designs they have in for the shoes and the apparels
as there are the threats of the substitutes in the market due to so many small firm
bringing in the same designs and having in the legal complexities causing in the issues
for the firm by giving in the cases in the courts.
 Investment opportunities: the firm have its opportunities for the several things to
invest in which includes so many of the things like advertisement Is the area where
the firm can invest in to have the proper and stronger market presence on the
additionally owned company outlets of the firm.

Swot analysation of the firm “NIKE Plc.”:
 Strengths:
 Strong core brand: the brand have in its strong image with in the markets and is capable of all
the strong market competition
 Diversifies brand portfolio: the brand operates with the proper diversified portfolio of its
product and it has many products like many of the sub parts of the NIKE itself and the converse.
 Weaknesses:
 Dependency on the markets of US: with in the year 2018, almost 40 percent part of the
revenue for the firm was generated from the markets of united states. This makes the firm more
dependable on the markets of US
 Focus on the foot wears: the company might be having in the diversified portfolio with in the
foot wear markets. But the firm must put its focus on diversifying its business in other industries
too.
 Opportunities:
 Responsible manufactures: as off seen in many of the countries the trend is growing for
knowing that where the products have come from and with in what type of environment the
workers work in.
 Threats:
 Competitors: the firm operates with in the complex competitive environment and have in more
powerful brands to compete with like ADIDAS, FILA, REEBOK, PUMA, etc.

Critical analysation of both external and internal factors by using in the
porter five force analysis and also determining further proceedings with the
expansion plans of the firm in the context of the firm “NIKE Plc.”:
 Threat of New Entry: This factor makes the deal with the possibility for
the new organizations to enter the markets. The industry of sportswear
evolution business is an emerging industry and hence contributes towards
the major opportunity for many of the brands to have in major profits.
 Threat of Substitution: This factor shows on the opportunities for
customers to buy products from any other substitute brand with in the
market.
 Bargaining power of Buyers: This factor presents the power of buyers to
bargain for the products and buy them at low price with in the market.
 Bargaining Power of Suppliers: Due to the high brand image of NIKE, the
organization has several suppliers of their overall raw materials required.
 Industrial Rivalry: Nike faces competition from numerous rival brands
such as ADIDAS, Reebok, Puma, Under Armour and more. Reebok and
Puma are concerned in the activity of providing with the standard quality
products at low prices and ADIDAS and Under Armour provide high-
quality products at prices those are similar to the prices of NIKE

CONCLUSION
 The above presentation has concluded about
the overall external and internal factors
affecting the working environment of the firm.
 The presentation has concluded about the
influence of the positive and negative impacts
of factors on the firm and swot analysis has
also been shown by including the internal
strengths and weaknesses of the company.
 Later with in the presentation it is shown
about the critical analysis of both the internal
and external factors of the firm.

REFERENCES
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REDESIGN.(pp. 48-51).
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