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Topic: Nike: Delivering Innovation and Inspiration
Pertinent macro environmental factors that influence Nike’s strategy
Nike primarily outsources its products production from the developing nations because they have the advantage of low labor cost. The developing nations have high unemployment levels and hence the foreign investment of the international nations works to solve the problem in these nations. However, the developing nations have their own micro environmental factors that influence the company strategy (Grewal & Levy, 21). For example, the raw materials used expose the employees and the environment to toxic substances; in addition, the working conditions in the work stations were questionable which in the end hurt Nike’s image although it was the fault of the contractors.
The use of resources in the chain also negatively influenced the organization’s performance in the supply chain; the most relevant strategy in dealing with the problem is the investment in environmentally and socially friendly initiatives that help reduce waste in the supply chain. Additionally, the organization embarks on encouraging and requiring their contractors to ensure good working conditions and other labor standard conditions to eliminate the bad image imposed by the poor conditions on the organization.
Case criteria most important for regular consumers
According to the case study, a player like Mike Jordan judges the shoes quality by performance. Generally, the players want a shoe that can withstand the excessive force and pressure exerted on the shoes as they play. A shoe that gives into the pressure is not reliable and can fail the player during the play section and hence loose on the game strategy (Grewal and Levy, 2011). However, the regular product users who are not players may judge the shoe performance from its durability. The consumers want a shoe they can wear for a long time without frequenting the stores for new shoes. In addition, the consumers desire the shoes that meet their fashion desires. For example, they may desire shoes that come in different shades and allow them to match the wide range of color outfits in their wardrobe. They also desire shoes that can be worn to different occasions other than in the play grounds and hence the manufactures need to consider the product demands of the varied clients.
Lean manufacturing coordinate and green marketing
Lean manufacturing principally allows small teams of workers in the manufacturing process; they small teams build the entire items other than portion manufacturing where a piece is made and moved to the next step in the line. The technique is significant in that it helps the organization save on production cost and in this case 15cents per shoe strategy (Grewal & Levy, 21). The strategy helps the workers feel motivated and empowered and brings a sense of equality in the organization. This in return influences the green marketing which seeks to reduce the environmental pollution on the organizations raw materials and the product production process.
In addition, the lean manufacturing process enables the organization improve on the environmental working conditions per worker as all the workers have a single working position for which hygiene can be ensured as the product moves from their in a completed form. The process of moving products from one worker to the other in the production process in a way contributes in the poor conditions in the work station for more employees would require than in the lean manufacturing process.
References
Grewal D., & Levy M. (2011). Marketing (3rd ed.). McGraw-Hill
