The Nike family is a fairly vast enterprise. Their suppliers, shippers, retailers and service providers employ close to 1 million people. The diversity inherent in such size is helping Nike evolve its role as a global company. Nike employs people worldwide, from Nike World Headquarters in Oregon and Nike European Headquarters in The Netherlands, to nearly every region around the globe, including Asia Pacific, the Americas, and Europe, Middle East and Africa.
Nike's business model in 1964 is essentially the same as their model today: They grow by investing their money in design, development, marketing and sales, and then contract with other companies to manufacture their products.
Nike currently produces their products in more than 800 contract factories throughout the world, including the United States. This has provided jobs for more than 600,000 contract workers who make Nike goods in more than 50 countries around the world. (www.nikebiz.com) .
"Nike currently enjoys a 47% market share of the domestic footwear industry, with sales of $3.77 billion." (Van Dusen) They utilize an outsourcing strategy utilizing sub-contractors. "The majority of their output today is produced in factories in China, Indonesia, and Vietnam, but they also have factories in Italy, the Philippines, Taiwan, and South Korea. These factories are 100% owned by subcontractors, with the majority of their output consisting solely of Nike products." However, Nike does employ teams of four expatriates that make weekly visits to factories in China, Indonesia, and Vietnam that focus on quality of product and quality of working conditions. They also developed a code of conduct and have implemented it across the globe. It sets the standard for subcontractors to follow if they want to do business with Nike. However, due to a manufacturing network of this magnitude, they have faced numerous violations involving factory conditions and human rights issues, which have been widely publicized.
Outsourcing is an essential part of this idea. ... Everyone should be influenced by outsourcing. ... Outsourcing does both to the United States. ... Outsourcing is about efficiency. ... Experiencing hidden costs is a huge outsourcing risk. ...
Next, several financial issues can make outsourcing appealing. ... THE BENEFITS FROM OUTSOURCING Outsourcing has identified numerous potential benefits. ... THE PROCESS OF OUTSOURCING There are many ways to manage IT outsourcing since every company has different culture, strategy, structure, people, and process. ... However, I"m here going to use Xerox's outsourcing process. ... THE PROBEMS IN OUTSOURCING Many outsourcing contracts are structured for very long periods in a world of fast-moving technical and business change. ...
One should emphasis that outsourcing is an issue that is not specific to distribution. ... There are different reasons for organisations outsourcing their distribution function. ... Globalisation is another aspect which has impact upon increasing outsourcing. ... Another risk outsourcing is the impact of outsourcing on those currently responsible for management of the function is fundamental. ... Outsourcing now commonly includes asset transfers. ...
Nowadays, many organisation are outsourcing their non- core activities to an external agents. ... One should emphasis that outsourcing is an issue that is not specific to distribution. ... Globalisation is another aspect which has impact upon increasing outsourcing. ... Another risk outsourcing is the impact of outsourcing on those currently responsible for management of the function is fundamental. ... Outsourcing now commonly includes asset transfers. ...
Mike Johnson (1997) maintains outsourcing isn't a new idea. ... Outsourcing has fostered the concept ofcore? ... Outsourcing is becoming increasingly important in a constantly changing economy. The Australian Outsourcing Summit 2000 focused on this importance, and on the emergence of outsourcing as a powerful tool for transforming organisations and driving innovation (Corbett 2000). ... their organisations, have championed the concept of outsourcing (Klepper 1998). ...
The massive move to outsourcing presents a series of new challenges for organisations, both public and private. ... Several arguments can be made about the reduction of costs for the corporation under outsourcing. ... Another facet of outsourcing is a perceived mitigation of responsibility for IS in the enterprise. ... In the classic outsourcing environment, the executive level of a corporation and an outsourcing company agree to split the corporation's personnel into two groups. ... Executives should be aware that and outsourcing provider will attempt to develop contracts most f...
The company that we have been asked to evaluate is IBM who is currently in the process of outsourcing their human resource functions to Fidelity. ... It is important that we as managers become familiar with outsourcing and its potential benefits if we what to become effective and efficient managers. ... Looking at it from simple terms like that the answer is it can't but outsourcing is a little more in-depth than it may appear on the surface. ... We have now briefly looked at the three areas where IBM can benefit from outsourcing let's wrap this paper up. ... In this pap...
Discussions are also made on the risks involved in outsourcing. ... The two main types of outsourcing are Information technology (IT) Outsourcing and Business Process Outsourcing (BPO). ... Why outsourcing Outsourcing is an increasing attractive business option because overall, companies tend to outsource to alleviate administrative burdens and focus on strategic areas. ... That's good news about outsourcing. ... Another major risk in outsourcing is Loss of proprietary information. ...
Is global outsourcing an opportunity or threat? ... The airline companies losing money had nothing to do with outsourcing. ... It is funny how people are just now making an issue out of outsourcing, when outsourcing has been going on for the last 40 years. ... Outsourcing effectively promotes trading between global markets. ... Outsourcing enhances the quality of lives for poor countries. ...
So does this mean that outsourcing white-collared jobs will in the long term have the same effect as did outsourcing blue-collar jobs? ... (Outsourcing Jobs: Is it bad? ... I believe outsourcing to be good. ... Sources -Outsourcing Jobs: Is it bad? ... -Outsourcing: The Word on the Hill Business Week. ...
