The Internal Environment & Corporate Strategy
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1. Some critics citing previous allegations of sweatshops have argued that Nike has not been ethical in its approach to production in developing countries. Is this criticism warranted? Why or why not?
2. How has Nike accomplished considerable growth over the past two decades? Can this continue? Why or why not?
3. Suppose you are the CEO of Nike and the world is coping with an economic recession. Please give an example of why you would change the corporate strategy and what changes you would make for what reason.
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Solution Summary
The internal environment and corporate strategies are examined. How Nike accomplished considerable growth over the past two decades are determined.
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1. The allegation against Nike regarding the utilization of sweatshops is not a new issue. Nike has been accused of supporting unethical employment practices in many of its factories in third world countries such as Indonesia and Vietnam, since the early 1970s. Nike finally admitted to the accusations in the early 2000s. The criticisms against Nike are warranted given the recent trend in ethical behavior demanded by consumers in general worldwide. The collapse of large companies such as Enron has made more people aware of the negativities of unfair treatments and practices. Ethical behavior involves building trust in relationships between the organization and its customers, and customers had communicated, through criticism, their demand for greater accountability by Nike (Rendtorff, 2009). The world community in general expects businesses to operate in an ethical manner that enhances a positive work environment. As Nike had initially denied the allegations, this validated the criticism as Nike portrayed an image of telling customers anything they want to hear, regardless of the truth. Nike had focused their efforts on locating the cheapest possible labor they could locate, and starting a factory in those areas. Employees were paid ...
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