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
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
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.
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
- Jane Sturges, "Keep on Running", B200 Understanding Business
- Video, B200 Understanding Business Behavior.
- Understanding Business: Environments, Edited by: Michael Lucass,The
- Nike official Web site (www.nikebiz.com)
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