Nike Case Analysis Study Example | Topics and Well Written Essays - 1250 words

Nike psychoanalysis - Case Study ExampleFor fiscal year May 31, 2009, the fraternity has reported revenues of more than $19 billion. These figures include sales for affiliate businesses such as Converse, Umbro, Cole Haan and Hurley International. While the political party has recorded a 6% drop in its return on investment (ROI), Nikes performance between 2005 and 2009 is so much better compared to the top 500 S&P companies. Nikes success may be traced back to capacity to tap into the international market, which accounts for more than half of the companys sales. Aside from this, Nike has elect various Asian countries for their contract manufacturing base, allowing them to take advantage of low operational costs and even rase wages. Known best for its Just Do It Campaign which started in 1988, Nike has struggled with issues involving violations of human and diligence rights, and deficiencies in wellness and safety conditions (Ferrell et al., 2011, p. 387). Like most companies that had to face human rights allegations, Nikes response was slow and ineffective. According to an acquittal International (AI) report, the companys response may be summarized in four stages denial, blame others, defile control, reassert control over damaged corporate image, and give appearance of compliance (Avery, 1999). At the beginning, Nike reiterated the efforts the company is making to improve working conditions and raising wages in countries where their factory is determined. In a statement, Philip gymnastic horse said, every Nike subcontractor is subject to systematic, unannounced evaluation carried out by Ernst & teenaged and that our own reviews find shown that the inscribe of conduct is complied with in all material means (as cited in Avery, 1999). Unfortunately, the review evaluation carried out by Ernst & Young did not reveal how may factories were actually audited and what besidesls were used to carry out its evaluation. Moreover, hiring its own evaluators to asse ss the companys operational practices was counterproductive, according to the companys detractors. For one, how can a company release a negative report against the same people who are providing them with business? Moreover, as a growing company, Nike was too busy fulfilling client orders, its hiring and standard operating procedures were not yet a subject of scrutiny until the Asian employees started their strike, that is. With thousands of people in their employ and hundreds of factory locations around the world, Nike failed to institute an internal auditing system (and an internal auditor) which could have helped them ensure the highly viable working conditions they wanted to provide. Another issue that led to Nikes trouble to address corporate responsibility earlier is the presence of a contract manufacture base barefaced the companys ability to monitor the activities in all its subcontracting plants. In addition, because many of the contracting plants were located in Asian co untries, Nike should have installed an in-house representative who is tasked of ensuring that the new manufacturing plant has adopted the Code of Conduct. Transitions should have been made, and repair audit should have been scheduled to monitor the plants performance and adherence to the Code. Aside from its labor issues in the Asian territories, Nike has also earned the disagreement of several thousand people who were formerly employees