Outsourcing with Nike - 2220 Words

Outsourcing Table of Contents: No. Desc. Page No. 1. Outsourcing 3 1. Method 3 2. Summary 3 4. Overview/history of company 3 5. Reasons for outsource 3 6. Offshore or domestic 4 7. Pros and Cons of outsourcing to third world countries 5 8. Alternative recommendations 7 9. Conclusions:Is outsourcing a good thing 8 10. References 9 Method: Investigation on outsourcing within business. The outsourcing of trainer companies within developing countries with particular emphasis on Nike outsourcing history. Summary: Overview/history of company; Nike is one the leading shoe and athletic clothing company in the United States and probably one of the largest in the world. In 1993, Nikes yearly revenue became as large as the NBA, NFL,†¦show more content†¦Labor costs Labor costs in the United States are much higher than in many parts of the world. Consequently, the costs of production for labor-intensive manufacturing can be significantly reduced by moving factories overseas mainly to third world countries this is a common practice of Nike who outsource there manufacturing to other companies in countries such as Thailand and Indonesia.[ ] 2. Cost of Shipping The cost of shipping goods has dropped in recent years. Part of this reduction is the result of improved efficiencies in shipping technologies. Also, tariffs on imports have dropped with the North American Free Trade Agreement and other international efforts to promote free trade this will make it easier for companies and corporations such as Nike to outsource the manufacture of their goods. [4] 3. Free Trade as a Political Tool Outsourcing manufacturing jobs overseas has the additional benefit of promoting capitalism and free enterprise in many countries that have been run by communism and totalitarianism governments. Many political scientists and economists believe that by increasing economic interdependence with the United States, these foreign nations are more likely to develop into robust democracies and more likely to establish a middle class of their own this fact can be used by corporations such as Nike to justify outsourcing to these countries. [4] 4. Reduced Costs for Consumers For manyShow MoreRelatedNike Outsourcing2367 Words   |  10 PagesMatthew Christensen History C Thorton 15 February 2013 Cuts Costs * Decreasing overhead through outsourcing is a valuable resource for Nike. Cutting costs by employing workers at a reduced rate or paying less for plant operation allows Nike to invest the additional profits into other areas of the business such as advertising, thereby increasing the potential for company growth. In addition, decreased operational costs are more likely to attract and retain company investors because more moneyRead MoreOutsourcing Practices of Adidas, Converse, Nike, and Reebok1079 Words   |  4 PagesOutsourcing Practices of Adidas, Converse, Nike and Reebok Introduction Apparel and shoe manufacturers continued to offload the more costly yet easily replicated part so their business models to concentrate on brand building, marketing, sales and attaining greater distribution channels globally. These are the pressures all apparel and shoe manufacturers face, and it is particularly challenging in the athletic show industry (Kynge, 2009). Adidas, Converse, Nike and Reebok have been outsourcingRead MoreThe Contemporary Challenges Of Outsourcing1244 Words   |  5 PagesMatthew Butler December 2nd 2014 Contemporary management Professor Beehner M.P.A Contemporary Challenge Essay Outsourcing â€Å"Outsourcing is the transfer of control of a process or product to an outside supplier†(Hasan). For this assignment, please identify a contemporary management challenge (e.g. diversity, globalism, ethics social responsibility, etc.). Then, identify a company or organization that you believe has been impacted by this contemporary challenge. Write a minimum four-page paperRead MoreGlobal Stratification721 Words   |  3 Pagesï » ¿Global stratification generally has a negative reputation. Critics see outsourcing as impacting both domestic and foreign countries in a negative way. Domestic economics falters since business is transferred to outside sources, therefore local employment suffers, prices may rise, and people may lose their jobs. Developing countries experience global stratification where, even though the imported business upgrades social conditions, social demarcation and hierarchy occurs where the labor class isRead MoreAnalysis of Three Videos on Outsourcing967 Words   |  4 PagesCritical Thinking Assignment: Overseas Outsourcing Introduction One of the most polarizing business practices of the last two decades continues to be the decision on the part of businesses to outsource production of their products to third world nations, The are a myriad of benefits and risks to outsourcing, often as diverse as the companies that choose this strategy as a means to compete globally (Beasley, Bradford, Pagach, 2004). The three videos analyzed in the paper have successfully definedRead MoreEthical Companies with Unethical Practices Essay1514 Words   |  7 Pagesof this assignment I will use the Nike Company to highlight its unethical practices. Despite the popularity of Nike in the American market, it has been accused of exploiting employees abroad. The corporate social responsibility stipulates that a company should maximize its profit and minimizes its cost in operations and manufacturing, also at the same time benefit the community it operates in. This paper will further elaborate on the global strategy employed by Nike Company as it outsources its goodsRead MoreNike and What It Does to Third World Countrys1726 Words   |  7 PagesThe Manufacturing Practices of the Footwear Industry: Nike vs. the Competition The current manufacturing practices of the sneaker industry, in particular companies such as Nike, Reebok, Adidas, Converse, and New Balance, takes place throughout the globe. With the industry experiencing severe competition, and the product requiring intensive labour, firms are facing extreme pressure to increase their profit margins through their sourcing practices. The following paperRead MoreThe Main Influences On Operation Management1112 Words   |  5 Pagesservice design and development ï  ¶ Supply chain management ï  ¶ Outsourcing ï  ¶ Technology ï  ¶ Inventory management ï  ¶ Quality management ï  ¶ Overcoming resistance to change ï  ¶ Global factors Three sources that may be successful for global businesses are; Outsourcing Outsourcing is when a business may contract out some of its operations to other businesses that specialize in these tasks. Why businesses chose to outsource may be due to the fact that outsourcing allows organisation to focus on core activities, reduceRead MoreProject Proposal : Nike Inc.1354 Words   |  6 PagesInception Nike, Inc. is a corporation that specializes in the design, development, manufacturing, marketing, and sales of footwear. Nike, Inc. was founded by Bill Bowerman and Phil Knight. The current Chief Executive Officer (CEO) is Mark Parker. The company headquarters is in Beaverton, Oregon. The company headquarters will be expanding soon and will contain two additional floors. Currently, there are twenty employees and four out of the twenty employees handle the IT part of the corporation. Nike operatesRead MoreCase Study Nike765 Words   |  4 Pagespurchase Nike products. This shows you that Nike’s image is one of the most viable and important aspects for their company’s success. Which would leave to the following aspects of customer satisfaction, because without that I could potentially ruin Nike’s positive image that they strive so much for. Another factor that plays into this positive image would be advertising. Advertising is an important factor because helps the company showcase their â€Å"consumer-aimed† designs to the public. â€Å"Nike recently