Outsourcing was implemented into the business plan and from the beginning cheap labor and exploitation accompany the economic successful development from Nike (todayifoundout).
Outsourcing is "a practice used by different companies to reduce costs by transferring portions of work to outside suppliers rather than completing it internally" (Investopedia).By manufacturing their products overseas (third world countries in particular) Nike is able to increase their efficiency in form of reduced wages. Besides the advantage to decrease labour costs it is more difficult to control the product quality while using outsourcing and to guarantee a certain level of working conditions (Van Dusen).
After moving organized labour from Korea and Taiwan to cheaper places like China, Vietnam ,and Indonesia Nike got pointed out for using abusive labor in 1992 when Harper's Magazine published the article: "The New Free-Trade Heel: Nike's profits jump on the backs of Asian workers" (Nisen). In this article Jefrey Ballinger presented his research on a woman called Sadisah who was earning "14 cents per hour, $1.03 per day for a 7.5 hour workday" (Bullert 9). To produce one pair of Nike shoes worth 80$ Nike spends about 12 cents. Sadisah spend 63 hours working overtime where she received 2 extra cents per hour. "For an entire month of work – 6 days at 10.5 hours a day - her net earnings amounted only to about half the retail price of one pair of the athletic shoes she makes in the factory" (Bullert 9). As a reaction for the upcoming demonstration against Nike the company implemented the "Code of Conduct" in their statutes which is a explanation how all workers have to be treated and how the work has to look like. For example it says that Employees have to be age 16 or older, not forced labour is used, contractors do't discriminate the workers, harassment and abuse are not tolerated ,and that working hours are not excessive (not more than 60 hours a week) (Nike).
Nike is the leading shoe and athletic apparel company in the United States and one of the largest in the world. In 1993, Nike's fiscal revenues were as large as the NBA, NFL, and Major League Baseball's television deals, ticket sales, and paraphernalia sales combined. In addition to their p...
They are the official licensee of Nike ACG (All Conditions Gear)-branded stores and concept shops. ... In 1995, Nike acquired Canstar Sports Inc. in which all brands produced by this company were later consolidated under the Bauer brand name. ... Nike Inc. is very good at adapting to the changing market. ... You see this in the huge moves they have made to make legal and humane working conditions a focus of their company, that they remain flexible and realize that they need the support of people to be successful. ... If Nike chooses to use both ...
Nike Inc. The topic that I have chosen to do a research project on is Nike Inc. ... In 1968, this company became NIKE, Inc.--- named for the Greek goddess of Victory. ... In the 1990's he was the subject of frequent protests over allegedly poor working conditions at Nike manufacturing plants in Asia. ... His position in Nike is Chief Executive Officer, President and Chairman, Nike Inc. ...
Today, Nike leaves Reebok in its dust. ... Nike uses product-oriented campaigns. ... Nike associates itself with winners. ... Nike ads are legendary. ... In 1995 Nike spent $250 million, while Reebok spent $100 ("Nike Brand Marketing,"n.d.). ...
Table of Contents Identification of the Company 1 Name and Stock Exchange Symbol 1 Subsidiaries 1 Objectives and Goals of the Company 2 Business Involvement 2 Objectives 2 Goals/Mission Statement 3 Internal Structure and Operations of the Company 5 Board of Directors 5 Business Heads 5 Available Resources 6 Marketing and Advertising 6 External Environment of the Company 6 The Dow Jones Diversified Financial Index 6 Competitors 6 Rankings and Market Share 7 Competitive Factors within the Industry 7 Consumers of Services 7 Suppliers of Raw Materials and Services 7...
Working with H&M, Stefan Larson was Gap's biggest competition and economic downfall. ... However, three years ago Gap Inc. hired Mr. ... " Jill Stanton, the former head of apparel at Nike was also hired to help the company. ... But now observation over Gap's working conditions at foreign suppliers raises question on Old Navy's low price merchandise. ... I think this growth in Gap Inc. will eventually slow back down, and perhaps many years later it will rise again. ...
They are generally defined as "a workplace where workers are subject to extreme exploitation, including the absence of a living wage or benefits, poor working conditions, and arbitrary discipline, such as verbal and physical abuse (Sweatshop Watch)." ... A study done by Vietnam Labor Watch reported on the abuses, working conditions, and health practices in Nike plants. ... Nike factory workers, including overtime, are working between six hundred and one thousand hours each month. ... If conditions at Nike factories improve, other companies, such as Adidas and Reebok, will surely follow. .....
Company Description Nike, Inc. was incorporated in 1968. ... Economic Analysis Economic conditions have been struggling in The United States since the market collapse in 2000, but conditions are beginning to stabilize. ... In the most recent quarter, this trend continued with productivity increasing at an annual rate of 4.3% as measured by output per hour of all persons working. ... Although Nike's top three customers generated 28% of their revenue, these customers do not have the power to pressure Nike's margins. ... Nike is constantly working to improve the technical ...
The main priority of this essay is to represent the arguments for and against the relevance of trade unions in todays working society. ... Therefore, the main purpose of a trade union is to protect and improve people's pay and conditions of employment. ... Negotiation is where union representatives discuss with management, issues which affect people working in an organization. ... Pay, working hours, holidays and changes to working practices are the sort of issues that are negotiated. ... Nike, a leading sports apparel manufacturer should have demanded that the Kuk-Dong factory owne...
