Operations of NIKE in South East Asia

PRESENTED BY: S. S. NAGARGOJE. 17 M. S. GOREGAONKAR. 18

AN OVERVIEW OF A CASE

PROBLEM STATEMENT

The denial of Nike to any responsibility for the unethical practices of its contractors.

Is Nike going in the proper way to outsource manufacturing operations to countries where wages

are low?

Nike is not going in a proper way

Nike outsource all its manufacturing to contractors in low wage countries

These contractors in less developed countries exploit their workers

Why Nike received worldwide protests over ‘sweat shop conditions’ in factories across South

Asia ?

Deplorable labor practices

(Miserable working conditions, poor wages, forced overtime & arbitrary abuse)

Do you appreciate Nikes marketing efforts?

We cant appreciate marketing efforts of Nike

Manufacturing workers are being exploited at maximum & the company’s resources are poured into high profile marketing

The amount spent on brand ambassador would be more than the collective wages of thousands of workers

What is your opinion if one single person like Michael Jordan gets a money of US $2 million whereas the wages of

thousands of people in Indonesia put together will get less than that amount?

Nike is exploiting its workers miserably, while on the other hand spending million dollars on a single person for promotional purpose

Its against the ethical & responsible business practices

Do you appreciate the arguments of GM, Nike incharge of Indonesia?

• No. Arguments of GM cant be appreciated.

• Instead of accepting the facts & finding solution for it, GM has been showing arrogant attitude supporting the irresponsible & immoral business practices of Nike

Strengths

Signs star athletesOwns no factory swoosh logo Well known established brand Market leader

• Nike don’t know the 1st thing about manufacturing .

• Women’s apparel • Quality of employees • corporate reputation

Weaknesses

Opportunity

Global –Go after affluentSport fashion goods Expand licensingInternal expansion Acquisitions

Smart competitors ,rebook Currency fluctuations Laws Technology

Threats