Case Study

JUST DO IT

Q1. Is the company ethically right to outsource its operations to countries

like Indonesia?

Answer:

Yes, the company is ethically right to outsource its operations to countries like
Indonesia as it is the company’s strategy to outsource all manufacturing to
contractors in low wage countries compared to other countries like Japan
because of following reasons:
1. This will help in expanding Nike production in different segments of the
countries through high profile marketing.
2. The company is ethically right as it will able to produce best quality product
by lowering its cost of production.
3. The company has also given employment opportunity to thousands of people
in countries like Indonesia.

Q2. Do you appreciate Nike’s marketing efforts?

Answer:

1. Diversification and promotion of product

I appreciate Nike’s marketing efforts to diversify its product to different
countries. Its objective to being the world leader in sports equipment’s and
apparels and to promote products as fashion wear, not just sportswear. The
central effort to Nike’s marketing is placing the Nike “Swoosh” logo on the
uniforms of collegiate and professional athletes. It’s the greatest achievement
of Nike to market its product to well-known superstars like Michael Jordan
(Basketball champ) and Tiger Woods (Golf champ).

2. Marketing Mix
 Product: Nike provides variety of shoes and products which are top selling
categories.
 Pricing: pricing is designed to compete with other fashion shoe retailers
with a standard premium.
 Place: The place of Nike is carried by multi-brand stores and sell their
products to famous athletics and brand ambassador.
  Promotion: Promotion through various advertisement and promoting
good public image.

3. Competitive Strategy
Nike involves outsourcing all the manufacturing to contract in low wage
countries and pouring the company’s resources in to high profile marketing

4. Converting threats into opportunities

The company has faced many threats like:
1. High competitive industry.
2. Negative Public perspective created by environmental, child labor,
contracted manufacturing issues and sponsored athletics.
3. International Currency changes.
4. Federal trade regulation in dealing with foreign manufactories

I appreciate that the company continues to be leading sportswear and able to

face these threats by converting these threats into opportunities with its loyalty
and brand value.

Q3. As a CEO, what would you do to come out of this situation?

Answer:

1. As the CEO, I will analyze the problem of labors working for the company and
provide the wages according to the industry standards.
2. In order to maintain a brand, a committee must be formed to manage
overseas operations and manufacturing so that rules and regulation are
followed properly.
3. I will also provide incentives for the overtime work done by them.
4. Maintain proper hygiene and also facilitate medical facility for all employees
and workers.
5. Provide advanced technology and machinery equipment to complete work
on time.
6. Doing charity for the up-liftment of the society as public welfare in education,
healthcare and various other sectors.