Written Assignment

Globalization simply put is growth on a global or worldwide scale. It characterizes our modern society and it affects all; individuals, large corporations, small and medium sized enterprises and even countries. Every entity that wants to stay on the leading edge must take advantage of globalization.

As far as corporations are concerned, they too must take advantage of globalization in order to stay on the leading edge and this is what Nike Inc did when it decided to outsource the production of its products to suppliers in Korea, China and other countries. Nike Inc normally started as a small distributor of foot wears from Japan, as time went on they decided to enter the foot wear industry by designing and producing their own branded foot wears and other sports apparels and equipments so as to take advantage of the local and international market but other companies had already established themselves in this industry, so Nike Inc had to enter the market with an innovation. They decided to develop a market entry strategy based on the price of the products.

To be able to enter the industry/market using this strategy (Pricing), they had to look for cost effective way of producing their offer (foot wear). Thanks to globalization, Nike Inc outsourced the production of its foot wears to Korean suppliers because the industrial policy of that at the time was favourable for the production of foot wears at a low cost. As time when on, the industrial policy of Korea could no longer permit them to produce foot wears at a low cost and in order not to lose business brought to them by Nike Inc, the Korean suppliers decided to set up factories in Indonesia, Pakistan, Vietnam and other places where condi...

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...d their responsibility in the prevailing situation, but were not serious about taking and implementing proper corrective measures to curb the situation. Rather they took decisions that were even criticized the more which actually helped in tarnishing their image.

If they had accepted their responsibility from the onset and took stringent measures to correct the situation and monitor their implementation and respect as they did later on after allowing the situation to prevail for a long period of time, at least Nike Inc would have had the benefit of doubt about what was happening in those factories and by taking stringent measures to correct the situation, monitoring its implementation and respect would have shown their good faith.

Works Cited

The Promise and Perils of Globalization: The Case of Nike by Richard M. Locke, Alvin J. Siteman, MIT.