INB303 REPORT - Introduction Philip Bill and Knight Bower...

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IntroductionPhilip Bill and Knight Bower man in 1972 incorporated Nike. In the year 1975 it became international when it opened its office in Taiwan and now it operates in six continents. It is headquartered near Beaverton in Portland area (Kathleen 1999). It’s a major supplier of clothing, footwear, sportswear and equipment’s .It sells products to retail stores through their own direct mechanism and also employ independent distributors. Nike’s operations are spread over 170 countries across the globe. All products are manufactured by independent contractors and products like footwear and apparel are produced outside United States, while Equipment is manufactured both in US and abroad. It operates through its three wholly owned companies: Cola Hana which designs and distributes foot wears (athletic and casual); Hurley international LLC deals in lifestyle apparels and accessories and Umbra Lets which designs and distributes footwear, apparel and equipment majorly for soccer. The third quarter 2012 financial records show Nike’s sustainable growth in the market. Its revenue has increased 16 percent in everyMarket except Japan. Expenses relating to selling and administrative grew at a lesser rate than revenue that is 10 percent.Market Environmental AnalysisThe macro factors operating in the company’s environment can be evaluated using the management tool known as PESTEL Analysis. This analysis is used to examine that how external factors affect the company’s operations as well as its revenue. These factors also effect the decision taken by the management of the organization. Tax changes, new laws, trade barriers,demographic change and government policy changes are all examples of macro change. To help analyses these factors managers can categories them using the PESTEL model. It includes political, economic, social, technological, environmental and legal factors (Bohm, 2008).Political Factors:Nike and its facilities are mainly based in the US, UK and countries of the European Union. These countries have stable, democratically elected government and the business environment is subject to coherent policies from the government circles. The enforcement of a single currency within all the countries of the European Union has eased conducting inter-state transactions and reduced costs for firms such as Nike (Nike Annual Report, 2009).Elections and major changes in the democratic set-up are usually anticipated, and Nike can makeuse of the time-interval to prepare itself for any changes that a new regime may require. The markets are subject to free inter- and intra-regional trade, and this has been the key reason for Nike to expand from a small setup in Oregon to a world leader in sportswear manufacture today.1
Economic FactorsNike has benefitted from the economic optimism that has been part of the US and WU markets since the company’s inception up to the recession of 2008. During this period, the company grewto become a world leader in the manufacture of sports goods and sportswear. The recession of

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