Nike's Business Environment: SWOT, PESTLE Analysis, and Macro Factors

This report provides a comprehensive analysis of Nike's business environment, utilizing both SWOT and PESTLE frameworks. The PESTLE analysis examines the political, economic, social, technological, legal, and environmental factors impacting Nike's operations, while the SWOT analysis identifies the company's strengths, weaknesses, opportunities, and threats. The report explores the interrelation between Nike's internal strengths and weaknesses with external macro factors, offering insights into how these elements influence the company's strategic decisions. Furthermore, the report provides recommendations for Nike to enhance its market position, improve brand image, and achieve sustainable growth by addressing identified weaknesses and capitalizing on opportunities. The conclusion summarizes the key findings and emphasizes the importance of understanding the business environment for effective organizational functioning.

BUSINESS AND BUSINESS
ENVIRONMENT

TABLE OF CONTENTS
 Introduction
 PESTLE analysis
 SWOT analysis
 Strengths and weaknesses interrelation with external macro factors
 Recommendations
 Conclusion
 References

INTRODUCTION
 Business environment is associated with having the reliable insights regarding the
prevailing circumstances so that accomplishing the organizational objectives in effective
manner can become possible.
 It can be exerted by using the tools like SWOT and PESTLE in turn accomplishing the
aim of having significant formulation of policies & strategies can become possible.
 The current study will provide the emphasis regarding SWOT, PESTLE of Nike and their
interrelations in turn gaining the reliable insights can be gained.

PESTLE ANALYSIS
Political factors Economic factors Social factors
Technological factors Legal factors Environmental factors

SWOT ANALYSIS
Strengths
there are varied form of the strengths which is basically possessed by the
firm and contribute in attaining competitive benefits so that effective growth
& development can be derived.
• Low cost manufacturing
• Strong research & development
• Strong global
Weaknesses
There are few lacking areas which is needed to be eliminated in respect to
meet the proper level of growth & development by eliminating the irrelevant
aspects.
• It outsourced the manufacturing aspects
• The prices of the goods offered by firm is quite high
• Presence of poor management regarding its labor condition
Opportunities
• For having successful functioning, the particular firm has the set of
opportunities can be received.
• The one of the major growth market opportunities by expanding its
operational practices in effective market & online platform
• It can get the opportunity of indulge into the partnership and merger &
acquisition
Threats
• Higher level of competition
• There are few policies of taxes and other regulations which becomes
difficult to be followed

STRENGTHS AND WEAKNESSES INTERRELATION
WITH EXTERNAL MACRO FACTORS
 Low cost manufacturing with economic factors
 Strong research & development with social factors
 Poor management regarding its labor condition with the legal factors
 High prices of the goods and outsourced the manufacturing aspects can not permit to get
the reliable level of coordination with political factors

RECOMMENDATIONS
 It is suggested to the firm to pay attention on having proper market analysis so that
reliable insights regarding the effective functioning about the trends can be recognized to
develop strengthening areas.
 It is recommended to the specified firm to emphasize on building good brand image by
offering discounts and offers so that deriving higher growth & development in market can
be done to achieve good organizational results.

CONCLUSION
 From the above report it can be concluded that business environment with help of analyzing
the internal and external aspects.
 For evaluating the external environment, PESTLE technique has been executed.
 In addition to this, SWOT has been applied for analyzing its internal & external aspects.
 The interrelation of strengths and weaknesses wit macro factors has been identified in order to
get precise understanding.

REFERENCES
Books and Journals
 Masalimova, A.R., Mikhaylovsky, M.N., Grinenko, A.V., Smirnova, M.E.,
Andryushchenko, L.B., Kochkina, M.A. and Kochetkov, I.G., 2019. The interrelation
between cognitive styles and copying strategies among student youth. Eurasia Journal of
Mathematics, Science and Technology Education. 15(4). p.em1695.
Online
 A PESTLE Analysis of Nike. 2022. [Online]. Available through:
<https://pestleanalysis.com/pestle-analysis-of-nike/>
 Nike SWOT Analysis. 2022. [Online]. Available through:
<https://www.managementstudyguide.com/swot-analysis-of-nike.htm>