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Evaluating a Corporate-Societal Relationship

Summary of Nike’s products and services

Founded in 1964, Nike is an American global enterprise. It is currently one of the most well-known brands in the sporting goods market. Because of the products it sells and the services it offers, it has become well-known for its innovative designs for athletic and everyday wear. In addition to athletic apparel and footwear, Nike also makes products for men’s and women’s running, basketball, tennis, action sports, and the sport of football. Besides these, Nike also creates and distributes sporting goods geared toward children and other active consumers (Guerguis, 3). Also produced and sold are additional products to manufacturers, such as plastic items through NIKE IHM Inc.’s subsidiary. It operates in six regions: emerging markets, North America; Western Europe; China; Eastern European and Central European regions. To stay on top of the competition, Nike is currently working on a new line of products with the help of companies like Reebok as a model (3).

Three ways in which the primary stakeholders can influence the Nike Company financial performance

People in a company’s activities are referred to as “stakeholders,” They include everyone or any group having a stake or an interest in the company’s operations (Baric, 2). By exercising their stakeholder authority, stakeholders can impact Nike Company’s financial results. Voting is the first method through which shareholders may influence the company’s financial results. During Nike’s annual shareholders’ meeting, for example, the shareholders have the opportunity to vote on the appointment of new board members (Kissinger, 4). There will be several choices made by the newly constituted board that may impact Nike Company’s financial performance. When Nike’s board of directors decides to establish new stores throughout the globe, that’s a perfect example. If the newly discovered branches prove to be profitable, the company will generate more revenue from a wider range of items, resulting in a larger profit margin.

Second, the Nike Company’s financial success may be influenced by the financial power of stakeholders like consumers and raw material suppliers. Customers may boycott Nike’s items for ethical concerns and hence refuse to buy the company’s products. To the detriment of Nike’s financial performance, the company’s revenue comes from selling numerous items, which means that this decision might have a negative impact on the company. Suppliers have the power to affect Nike’s financial performance by refusing to fulfill orders or withholding supply (4).

Third, stakeholders like the community may impact Nike’s financial success by campaigning for legislation that governs the company’s day-to-day activity. Neighboring towns could seek for legislation to regulate Nike’s operations to reduce pollution if, for example, Nike is doing business in a way that harms the environment (4). Nike’s financial performance might be adversely affected if strict regulations are implemented and enforced.

Critical factors in Nike’s external environment that can affect its success

There are both opportunities and threats for the Nike Company to expand to new countries fast. This might have an impact on the company’s future prosperity. The sportswear sector is becoming more competitive as more and more manufacturers enter the market (Ahmed, 1). For Nike to be successful, the corporation has to concentrate on ensuring consumer happiness among the many age groups it serves. Women, for example, are becoming more interested in sportswear, not only for athletic purposes but also for its aesthetic value. Nike has to react quickly and strive to diversify its goods to fulfill the demands of other consumers because of the growing demand for varied athletic gear among different genders and ages.

Technology is the second crucial external component that may affect Nike’s performance. Organizations worldwide are quickly adapting to the Internet of Things, which is transforming the way they do business. Sporting goods, such as shoes, have also seen a boost in innovation because of the advancements in technology (1). Sporting apparel is now available in various colors and designs to suit the likes of a wide range of clients. As a result, Nike must deploy cutting-edge technology in all aspects of its manufacturing process. For example, Nike’s production of custom-made shoes helps keep the company abreast of emerging technologies. A personalization platform for Nike’s consumers may be built on the company’s website. Nike’s productivity may be improved by using advanced technologies, such as computerizing different production processes.

Nike’s biggest success

In 2015, Nike achieved its greatest breakthrough when it put environmental sustainability at the heart of its creative process. The company made major improvements to its environmental procedures to lower its environmental impact and battle climate change. Nike recycled almost 54 million pounds of manufacturing waste into high-quality materials. The manufacturing scrap was lying about as garbage, thus moving it to a more appropriate location resulted in considerable reductions in pollution (Thomas, 5). In addition, Nike has switched its supply chain from traditional processes to environmentally friendly, sustainable operations. Due to the positive public perception of Nike’s environmental stewardship after this step, sales of their products increased in the years that followed.


Ahmed, R.R., Brohi, B., Bhutto, A.H., Prithiani, J., Khubchandani, R., Kumar, S. and Abbas, Z., 2016. „Strategic Marketing Plan of Nike “. ResearchGate, Indus Institute of Higher Education.

Barić, A., 2017. Corporate social responsibility and stakeholders: Review of the last decade (2006-2015). Business Systems Research: International journal of the Society for Advancing Innovation and Research in Economy8(1), pp.133-146.

Guerguis, A. (2018). Nike’s Marketing Mix and PESTL Analysis in Vietnam.’s_Marketing_Mix_and_PESTL_Analysis_in_Vietnam

Kissinger, D. 2017. Nike Inc. Stakeholders: A CSR Analysis.

Thomas, T. 2019. How Nike became No. 1. And how it plans to stay there.


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