Evaluating Corporate-Societal Relationship of Nike Inc.
EVALUATING A CORPORATE-SOCIETAL RELATIONSHIP Evaluating a Corporate-Societal Relationship Preparation According to the textbook, the current world economy is increasingly becoming integrated and interdependent; as a result, the relationship between business and society is becoming more complex. In this assignment, you will be researching a Fortune 500 company from an approved company list provided by your professor. Instructions Write a 4–5 page evaluation of your chosen company's performance with respect to its stated values. Do the following: Summarize the company's primary products and or services. • Suggest three ways in which the primary stakeholders can influence the organization's financial performance. Provide support for your response. Describe two critical factors in the organization's external environment that can affect its success. Support your assertions. Assess the company's biggest success or missed opportunity to respond to a recent or current social issue. How did it impact company performance? Integrate at least two supporting resources from the Strayer University Library or other reputable sources. This course requires the use of Strayer Writing Standards. For assistance and information, please refer to the Strayer Writing Standards link in the left-hand menu of your course. Check with your professor for any additional instructions. The specific course learning outcome associated with this assignment is: • Evaluate the relationship between a business and society based on external environmental factors, stakeholders, and corporate social responsibility issues.
Nike: Evaluating a Corporate-Societal Relationship
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Nike: Evaluating a Corporate-Societal Relationship
Introduction Nike Inc. is a US-based company that produces, markets, and sells sports equipment, shoes, apparel, accessories, and services. It was established by Phil Knight and Bill Bowerman in 1964. Moreover, it runs a global marketing strategy of its products and services and has numerous contracts with sports teams for jersey production. It is headquartered in Beaverton, Oregon, and has subsidiary companies such as Converse and RTFKT Inc. The company boasts of worldwide success since its revenue in 2002 was $4.66 billion, while in 2021, the revenue had exponentially increased to $17.68 billion (Statista). As of 2020, the corporation had an estimated 75,499 employees across the globe. It is imperative to evaluate the firm’s performance through a lens of products and services, financial performance, and the external environment. Primary Products and Services Nike’s primary products entail athletic footwear and jerseys, consumer apparel, accessories, and equipment. The main products are essentially coined in the athletic segment. However, the apparel and footwear are casual. The company also manufactures high-quality sneakers through its subsidiary firms Converse, All-Star, Chuck Taylor, and Star Chevron and collaborates with other footwear firms such as Jordan (Nike). The firm produces jerseys and football boots for football, NFL, basketball teams in America, Europe, and Asia. Through NIKE trademarks, the business licenses agreements allow external companies to produce and sell clothes, digital gadgets, software, and other sports and athletics equipment. The company distributes sportswear, athletics-based, tennis, skating, gym, and golf customer segments (Nike). The accessories produced by the firm consist of socks, bags, sports balls, gloves, protective equipment, and eyewear. Stakeholders’ Impact on Company Fiscal Performance Stakeholders in a multinational firm such as Nike play a significant role in organizational financial performance. Stakeholder engagement is the first approach to which the firm can improve its productivity. A company’s capacity to properly engage its primary stakeholders is reflected in its fiscal performance. Currently, the emphasis has evolved from relying just on tangible asset growth to more significant value generation through formulating symbiotic partnerships with internal and external stakeholders (Derun and Mysaka, 113). Strong financial performance may be sustained by cultivating formidable connections with stakeholders. Furthermore, keeping healthy relations with stakeholders ensures that the company will get sustained support even when facing financial difficulties (Derun and Mysaka, 116). With such a solid connection, Nike stakeholders provide post-startup finance to the company, while suppliers can provide trade credit facilities, which keeps the firm afloat. Such an aspect means that a firm’s intentions and efforts to cooperate with stakeholders like suppliers and consumers increase the establishment’s market value. Secondly, achieving sustainable development becomes a top priority with effective stakeholder involvement. Customers build significance in adopting products and services, while suppliers become imperative in distribution. Consumers will be part and parcel of reviewing Nike products regarding environmental impacts (Dzomonda, 449). Nike’s products and services have an ecological impact, indicating that corporate social responsibility is critical to prioritizing climate action. Since consumers desire environmentally friendly products, they purchase more innovative products, boosting financial statements to desired levels. The clientele is the critical group in the company’s environmental sustainability strategy’s success. The sports teams, individual consumers, and athletic groups become primary users of its innovative products. Dzomonda indicates that, as a result, specific stakeholders, such as suppliers, are developing novel environmental solutions that they are prepared to share with the rest of their supply chain, which may be beneficial to the company (451). Such an aspect indicates that long-term, innovative items generate high consumer sales, resulting in improved financial success. Employees of Nike are part of the primary stakeholders in the firm. Thus, they play a significant role in performance. Employee training and development are essential in achieving enhanced worker competency and improving the firm’s financial success. Employees gain skills, knowledge, and devotion due to their job experience. At Nike, they strengthen their creative talents and generate better goods and services, increasing revenue. Workers who embrace innovation and talent development become more relevant in providing value propo...