Exploring How Nike Influences the Environments in Which It Operates

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Exploring How Nike Influences the Environments in Which It Operates

Introduction:

The main objective of this essay is to answer the question "to what

extent does Nike influence the shape of the environments in which it

operates?" To reach this objective, I will first talk a little bit

about the components of this question, which are "Nike" and

"Environments".

There is a tiny difference between a global and multinational company,

but in general they are companies which operate in a number of

countries and have production or service outside the country of

origin.

About Nike:

The global corporation we know today as Nike originated from a small

company founded in 1962 by two sports runners. The main activity of

this small company was importing cheap athletic shoes from Japan and

sells them to the U.S. market. From this small start sprang one of the

largest sports wear companies in the world, with products known and

distributed in the different five continents.

What is meant by "environments"?

Environments in the business world are the set of internal and

external influences the organization is subject to. An interaction is

necessary between the organization/ business and its environments to

assure the existence of the business.

The internal environments represent the organization staff, office

technology, the wages and finance, etc.

The external environments are categorized to;

- Micro-environments: represented in the organization's customers,

agents, suppliers or competitors.

- Macro-environments which are the political, economic,

social/cultural and technological forces.

It is vital for orga...

... middle of paper ...

... why MNCs move their production outside the borders. This law created a

free-trade zone between the United States, Canada, and Mexico. Nike

took advantage of this law and already has production on the borders

between USA and Mexico.

Conclusion:

Organizations are not self-contained or self-sufficient. They interact

with and are influenced by their environments. Organizations including

global and multinationals depend on their environment as a source of

inputs and as a recipient of their outputs. It is a two way

connection.

References:

- Jane Sturges, "Keep on Running", B200 Understanding Business

Behavior, OU.

- Video, B200 Understanding Business Behavior.

- Understanding Business: Environments, Edited by: Michael Lucass,The

Open University,

- Nike official Web site (www.nikebiz.com)

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