Nike weaknesses

In this assignment, you are to use the same corporation you selected and focused on for Assignments 1, 2, and 3.

Consider the corporation you have selected to use in your first three assignments. Identify one of the firm’s major competitors that you would consider working for.

Research the corporation on its own Website, the public filings on the Securities and Exchange Commission EDGAR database (http://www.sec.gov/edgar.shtml), in the University's online databases, and any other sources you can find. The annual report will often provide insights that can help address some of these questions.

You will do a 15 minutes presentation to the Board of Directors of the corporation. Develop an eight to twelve slide PowerPoint presentation with speaker notes or record a video based upon Assignments 1 through 4. You may choose to compare your chosen corporation to a major competitor with whom you would like to work. You will make recommendations to the Board of Directors based upon your analysis and decision on why the corporation remains or is not a good fit for you.

Determine the impact of the company’s mission, vision, and primary stakeholders on its overall success as a competitive employer in the industry.

Create a SWOT analysis for the company to determine its major strengths, weaknesses, opportunities, and threats.

Based on the SWOT analysis, outline a strategy for the company to capitalize on its strengths and opportunities, and minimize its weaknesses and threats.

Discuss the various levels and types of strategies the firm may use to maximize its competitiveness and profitability.

Outline a communications plan the company could use to make the strategies you recommend above known to all stakeholders.

Develop an executive level Power Point presentation with 8 -12 slides with speaker notes and appropriate graphics or professional video.

Assess efforts by this corporation to be a responsible (ethical) corporate citizen and determine the impact these efforts (or lack thereof) have on the company’s bottom line. Provide specific examples to support your response.

Use at least three (3) quality references. Note: Wikipedia and other Websites do not quality as academic resources.

References must be submitted on a Works Cited page using SWS format. This course requires use of Strayer Writing Standards (SWS). The format is different than other Strayer University courses. Please take a moment to review the SWS documentation for details.

The specific course learning outcomes associated with this assignment are:

· Determine ways in which the vision, mission, and stakeholders of a firm impact that firm’s overall success.

· Identify how the six segments of the general environment affect an industry and its firms.

· Identify the five forces of competition.

· Analyze the external environment for opportunities and threats that impact the firm.

· Analyze the internal environment of a company for strengths and weaknesses that impact the firm’s competitiveness.

· Identify various levels and types of strategy in a firm.

· Assess the ethical implications related to strategic decisions.

· Predict ways in which corporate governance will affect strategic decisions.

· Assess the relationship between strategy and organizational structure.

· Use technology and information resources to research issues in business administration.

· Write clearly and concisely about business administration using proper writing mechanics.

Grading for this assignment will be based on answer quality, logic / organization of the paper, and language and writing skills, using the following rubric.

Assignment 2 BUS

499 for Chet Walker.doc

Running Head: NIKE INC. CORPORATION SWOT ANALYSIS 1

NIKE INC. CORPORATION SWOT ANALYSIS 7

Assignment 2: External and Internal Environments

Chet Walker

Strayer University

Professor Hassan Yemer

BUS 499 – Business Administration Capstone

Winter 2019

Nike Inc. Corporation SWOT Analysis

Incorporated in 1967 under the laws of the State of Oregon, Nike Inc. is dedicated to designing, development, and marketing as well as selling athletic footwear, equipment, accessories, apparel, and services. Currently, Nike is the world largest seller of athletic footwear and apparel selling products through Nike-owned retail stores, digital platform, retail account, and independent distributors as well as sales representative licensed by different countries. All Nike’s products are produced by independent contractors outside the United States with the equipment products produced in the United States and other countries. Nike brands include six different categories: NIKE Basketball, the Jordan Brand, Training, Sportswear, and Football. Other brands wholly-owned include the Converse which designs, distributes and licenses casual apparel, accessories, and sneakers. Converse subsidiary brands are selling under these trademarks; the Converse, All-Star, Star Chevron, One Star, Jack Purcell, and Chuck Taylor (Baek et al., 2017). The paper presents Nike’s greatest strengths and weakness and evaluates general environment as well as forces of competition.

Nike Inc.’s SWOT Analysis

Nike is among the three top competitors in the world for sportswear and apparel. The other two competitive companies include Adidas and Under Armour Company. One of the greatest strengths that helps Nike to compete in the global market is its global brand. With the famous “Swoosh” label, Nike is recognized in the whole world. Swoosh help customer to identify the unique products produced in Nike Inc. Furthermore, Nike has an intense research and development team which contributes to its innovative and evolving product range. As a result of research and development, Nike manufactures high-quality products which can be sold at a low cost. However, Nike Inc. should conduct market research in developing economies such as in Africa and developed products to fit the demand of the African market. Likewise, the company should use the Swoosh label for other apparels apart from footwear to advertise their products.

Nike is highly depended on the footwear market which might be vulnerable if for any reason this market erodes. Therefore, due to Nike’s strong brand, the company commands a premium of its price in that it sells products to the retailer at a high cost to meet its higher profit margins. As a result, there is a possibility of customers choosing products from other competitor offering products at low cost especially in the emerging market (GÜREL & TAT, 2017). Furthermore, the ongoing perception of the poor working relationship with employees complaining about low wages and poor working conditions is a great weakness that Nike faces. Nonetheless, to fix these weaknesses, Nike should apply different tactics. First, the company should invest in other apparel not only footwear. More so, the company should adjust its prices to be affordable for the customer to compete in the market quickly. Lastly, Nike should continue with its strategies to solve the issue of poor labor practices and working conditions.

As reported on Nike’s 2018 end-year financial statement, Nike Inc.’s intangible asset was at $438M. This includes the non-monetary assets that cannot be touched, seen or physically measured. The company’s core competency is epitomized by sponsored celebrities that are creating heroes, selecting athletes who succeed beyond all limits. However, with the risks associated with heroes that sometimes they fall, the competency can lead to public perception disaster. The core competence has helped Nike Inc. to command a better market share in both running and basketball shoes (Baek et al., 2017). From the core competency, Nike can derive market capabilities such as differentiation of products and service. Another capability for Nike Inc. is the cost leadership where the company can produce products at a low cost and sell at comparable cost in the market.

A Segment of General Environment

How a brand succeeds is influenced by several factors such as sociocultural, technology, economic, political and environmental (SHTAL et al., 2018). The main segment of the general environment or Nike Inc. is sociocultural and technology. From a sociocultural perspective, Nike contributes to one of the trending issues globally on fitness. With an increase in the number of people starting to workout, the demand for Nike shoes are increasing hence more products are purchased. More so, Nike has an initiative structured to empower women in the society which has seen a positive effect on Nike. As well, Nike empowers people with disabilities in America creating s strong, caring brand image for Nike Inc. On technology, Nike is reaping the best from the market. The company has included computer-aided designing and computer-aided manufacturing system (SHTAL et al., 2018). On the company’s website, customers can design their unique shoe and purchase in a very short while. With the technology, a customer can choose the colors to be included in their product hence favorable for customers.

Based on Michael Porter’s model of Five-Factor Analysis, the most important external forces for the Nike industry environment include competition, customers and substitutes. The athletic footwear, apparel and equipment industry is highly competitive. The companies include Adidas, Nike and Under Armour Company among other companies such as Puma, Anta, ASICS, and V.F. Corporation. The competition forces that Nike's faces include low market growth rate and high aggressiveness of firms. The low market growth rate has been contributed by the high market penetration and saturation in a market that grows very slow. Also, firms in the industry are highly aggressive in competing for a more significant market share. In addressing these forces, Nike Inc. has applied several strategies. According to Brohi et al (2016), Nike applies consumer affinity and connection for brands and products. This is achieved through marketing and promotion, social interaction, identification with prominent and influential athletes to endorse their brands and active engagement through sponsoring events.