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Nike inc's Background, Factors influencing the organisation and its reputation, Organisation structure

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Points to be covered 1.Nike inc's background- 100 words 2. Factors influencing the organisation and its reputation- 200 words - (PEST influence, what do they do? 3. Organisation structure- 100 words -describe the ownership structure (who owns the company, is it national or international) -other organisations owned by Nike or associated with Nike. the reference should be journal article- peer reviewed or news articles in APA style. the total is 400 words....

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Question Preview:

Points to be covered 1.Nike inc's background- 100 words 2. Factors influencing the organisation and its reputation- 200 words - (PEST influence, what do they do? 3. Organisation structure- 100 words -describe the ownership structure (who owns the company, is it national or international) -other organisations owned by Nike or associated with Nike. the reference should be journal article- peer reviewed or news articles in APA style. the total is 400 words.

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Company’s Background

“If you have a body, you’re an athlete.” – Nike Inc.Nike Inc. was founded in 1946 as a distributor for a Japanese shoe-making company ONITSUKA TIGER which is now known as ASICS but has recently Re-launched its product. Nike Inc. was previously known as Blue Ribbon Sports (RBS). The founders of the company are Phil Knight, a middle distance runner and Bill Bowerman, a track and field trainer back in the days. Currently, NIKE Inc. in the designing, marketing, developing, selling and retailing of sportswear, footwear, sports equipments, accessories and apparel under major portfolios such as the brand name Nike, Converse Inc., Hurley LLC, etc. The current revenue Valuation of Nike Inc. is approx. US$ 79.75 billion (Aug’ 2017). The total percentage of shares owned by Nike Inc. is 82.77% with EPS in Aug’18 of 0.567 (Reuters T., 2018) 

PEST Analysis of Nike Inc.

The growth of Nike is mostly dependent upon the outside factors. Some of these external conditions are:•Political FactorsNike Inc. is headquartered at the U.S. where the government has initiated favourable growth and expansion policies for the companies to grow internationally. The tax schemes and arrangements made by the Federal Reserve of U.S.A have fostered the growth of Nike Inc. (WhiteHead, 2012). Whereas, some countries, mainly the Asian countries, impose taxes and tariffs to save their ingenious brands, which is a threat to Nike.•Economic FactorsNike Inc. revenue is significantly generated through selling Athletic Sportswear apparel and equipments. But In the U.S. the labour cost is high, which was the main reason for Nike to shift the Manufacturing units to Asian Countries. But Nike faced a big strike as the Chinese Government passed a low stating that no production will take place on low wages in 2014 (Bush T., 2016). Nike is under a constant threat of recession and has fluctuating profit margins.

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