International Business: Nike Corporation
International business
Nike Corporation
The purpose of this work is to research Nike Corporation in relation to international business through the conduction of a SWOT analysis of the company, as well as analyzing the industry. Further this paper will examine the top competitors of Nike Corporation as well as the international factors and elements which affect the corporation either positively or negatively.
Nike Corporation states on the Nike.com website that the Nike Foundation is "a reflection of the Nike Culture." The stated mission of the Nike Corporation is reflected in their statement of commitment to "assisting youth to achieve both their personal goals as well as to contribute to the overall betterment of society." The Nike Corporation's stated goals are to:
Assist young people in understanding their power of ignition of positive change and then to provide the youth with tools needed in this action.
Engaging youth in the debate and decisions that impact upon their lives.
Youth empowerment.
Identification of models to convene youth in exploratory settings enabling articulation of concerns, design of solutions and creation of actions.
In the area of sports to create and sustain opportunities for youth to enjoy the positive benefits of individual as well as group sports. Sargent et al. (2005)
Nike owned subsidiaries are Converse, Inc. A designer, marketer and distributor of footwear, apparel, equipment as well as accessories for an array of fitness and sports activities. Bauer NIKE Hockey Inc. is a leader in the design and distribution of hockey equipment; Cole Haan is a leading designer as well as marketer of designer luxury shoes, purses, accessories as well as coats; Hurley International LLC is a designer, marketer and distributors of athletic footwear as well as designing and marketing apparel for the value chain retail.
I. In the Beginning - Nike Corporation:
Nike began in 1960 when Bill Bowerman was in the process of handcrafting track shoes for his team at the University of Oregon and in 1962 a business plan was developed by Phil Knight at Stanford University business school. By 1967 Bowerman had created the first track shoe composed of lightweight and durable nylon which he called Marathon and the same year a student, Carolyn Davidson designed the Nike "swoosh" and charged a fee in the amount of $35.00. In the year of 1974 track star Steven Prefontaine was the first to wear Nike sneakers. By 1976 Nike participated in its Olympic debut and when 1979 rolled in Nike was the number one selling shoe of its type as a new record was set by Joan Benoit, age 21 at the Boston Marathon. By 1998 Nike Corporation made its product available to the open market. Nikes website states that: "Speed comes in many forms: Quickness, agility, precision, instinct. Few sports can't benefit from speed of thought. Few sports reward pure speed at the expense of tactical insight." Further stated is that "Speed. It's a measure of physical and mental capacity, a measure of controlled force, a measure of instinctive genius. A measure of the time it takes to do something well. It's a measure of success. Be first to the finish line, whether the race takes seconds or years, and you've won."
" Simple as that." (Nike Corporation Website)
By 1989 Nike Corporation began export of its product. Stated is that:
"Along the way we grew in form; single product - single market, multiple product - multiple markets, multiple brands - multiple markets."
II. Growth and Expansion
Nike is developing as a golf equipment company. During Tiger's toughest year golf sales broke records. The shoe called "Air Zoom Total 90" became the biggest seller of soccer boots in the largest five European countries in the 4th quarter of 2004. Nike's subsidiary brands of Cole Haan Bauer Nike Hockey, Converse and Hurley are stated to be "now up and over a billion dollars in revenue."
III. Financials:
Nikes Revenue Performance for BY 2000-2004
2004
$12, 253
2003
$19,697
2002
$9,893
2001
$9,489
2000
$8,995
Nike Revenue Distribution for FY 2000 versus 2004:
2000
2004
International 42%
International 50%
US 52%
US 39%
Other 6%
Other 11%
Nike EPS Performance FY 2000-2004
2004
$3.51
2003
$2.77
2002
$2.56
2001 $2.16
2000 $2.07
ROI: Return on Invested...
These can create significant management problems due to the impact of different cultures, taxation and pricing, the complexity of choosing the optimal structure for international business, high political risks and many other issues. The specifics of financial planning is determined by the following problems, including volatility in exchange rates, particularly the national taxation, revaluation of currencies, possible difficulties with the export of funds from abroad, problems with in-house transfer pricing,
International Business Environment Outline and critically discuss the criteria by which they judge whether or not a country is stable. International businesses faces a number of risks when they decide to operate overseas. Their ability to make sound investment decisions and to address those risks is directly related to the stability of the country in question. Firms therefore need to develop mechanisms for measuring stability before making the decision to enter a
International Business of Starbucks Starbucks Corporation established in 1971 has its headquarters based in Seattle, Washington. The company is the leading and largest coffeehouse company, with a wide coverage of the market across the globe (Simon, 2009). It is a global coffee company and chain of coffeehouse stores, operating in over 50 countries all over the world. At its founding, it was a mainstream coffee bean roaster and retailer. The company
The localization strategy into Vietnam is also characterized by the fact that it ensures higher levels of business diversification for the company, which in fact serves the number one rule of investments -- portfolio diversification. This in essence means that, through the penetration of the Vietnamese market, the company would increase its sources of revenues and it would decrease its dependency on the more traditional manufacturing plants. Finally, the localization strategy
International Business The Effect of National Culture on the Choice of Entry Mode Foreign direct investment has increased dramatically over the last couple of decades and this trend has been studied. However, it is argued that the entry model form many of these investments has not been studied with the same rigor. It is commonly thought the composition of national cultures on Hofstede's scale and the distance between the two cultures influences
International Business South Korea International Business South Korea: Introduction and Business Potential South Korea is the 12th largest economy in the world. It has made tremendous growth in all manufacturing, industrial, and services sectors to become economically and technologically strong. Due to rapid economic growth and positive governmental behavior, South Korea has become an attractive target country for foreign corporations for their international business expansion strategies (Central Intelligence Agency, 2013). However, these foreign
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now