Nike internal environmental analysis. Management Coursework

Nike Inc. Internal Environmental Analysis
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Nike Inc. Internal Environmental Analysis
Nike Inc. is one of the largest corporations in the world that deals with the designing, manufacturing, development, sales, and marketing of sports apparel, accessories, and footwear. The company was established by a field coach from Oregon University, Bill Bowerman, and Phil Knight who was once his student in 1964. In particular, its headquarters are in Beaverton, Oregon. These individuals opened their first Nike retail shop in 1966, and they launched their brand footwear in 1972. From the time of its establishment, Nike Inc. has continued to grow. Currently, the company has over 22,000 outlets within the United States of America (USA), and it sells its products to over 160 countries in the world. Nike Inc. has about 37% of the global market share in the athletic footwear and apparel sector. The paper analyzes the internal environment of Nike Inc. by focusing on the company’s strengths and weaknesses.
Internal environment involves the trends and events within an organization that influence employees, management, and organizational culture either positively or negatively. Specifically, internal forces refer to things that a firm can control, which are highly affected by the owner of an enterprise or the management team. When it comes to Nike Inc., the company caters to the needs of its workers so that they can concentrate on the production without disruptions. The founders of Nike Inc. are people who love sports, which make them competitive in coming up with products that suit the needs of athletes. The management team is passionate about the business processes of the company that makes the organizational culture of Nike Inc., one of the best. For example, workers opinions are highly valued, and the firm provides a conducive environment for them (Ramaswamy, 2008). Nike Inc. offers membership in fitness, time off, retirement savings, and health insurance. These things make employees happy, satisfied, and motivated, which boost the level of creativity and innovation since Nike’s internal environment is the best.
Nike Inc. has relevant resources, and its brand continues to increase in value as time elapses. In 2019, the company’s brand value was $15.9 billion. Nike Inc. generated a revenue of $39,117 million and a profit of $4,029 million. The company has over 75,000 employees (“Nike,” 2020). Nike Inc. has multiple strengths that include a strong brand reputation, in-house professionals, superior marketing abilities, sustainable production, low manufacturing cost, and a vast customer base. The company usually uses celebrities in the sports industry to advertise its products. For instance, Nike Inc. partnered with Michael Jordan, which enabled it to come up with “Air Jordan Shoes.” Despite the success of Nike Inc. overtime, the company has various weaknesses, namely debts, poor labor conditions overseas, overreliance on the USA market, complaints of sexual harassment, and lawsuits. If the company does not address the above issues, it might lower its brand value and damage its reputation in the future.
Some of the critical internal environmental factors that have enabled Nike Inc. to be in the position it is today include the creation and maintenance of a conducive workplace environment, good leadership and organizational culture, outstanding marketing capabilities, innovativeness, and a superb reputation (Kissinger, 2017). Nike Inc. has realized that when employees’ needs are met, the level of creativity and innovativeness rises. Additionally, the company focuses on creating good relationships with renowned athletes, which it partners with to advertise its products. Most importantly, many people working at Nike Inc. are comfortable and satisfied in their job positio...