Business Question

MEMO

FROM:                                                                           DATE: 17^th September 2021

TO: CEO Nike Company                                             REF: Loose Memo

RE: A PLAN TO DEVELOP SOCIAL, ECONOMIC, AND ENVIRONMENTAL VALUE.

            I am writing to outline my plan to outline how I will develop the economic, social, and environmental value for the Nike Company. Since the company has a reputation recognized internationally for producing the most comfortable, efficient, and satisfying customer products, I would like to incorporate an economic, social, and environmental value that will match the goals or objectives of the company (Beresin, 2017).

           Nike is widely known for its one-of-a-kind footwear, among other products that are so much cherished by the target market. It is detrimental to ensure that the company value grows exponentially concerning its objectives (Beresin, 2017). Thus, the social, environmental, and economic values can improve to ensure the company keeps its top-notch reputation in producing footwear, among other products. The company's social value involves making the community feel comfortable having the company products circulating and enjoy additional benefits such as employment creation. The economic value will ensure people are earning from the jobs provided, and therefore there will be increased circulation of money in the economy (Bini & Bellucci , 2019). The environmental value of the company can get enhanced through the services the company offers to the community, such as programs that help clean and keep the natural habitats clean. Additionally, the company uses renewable resources in the production of shoes, therefore, does not degrade the environment of non-renewable resources

             Nike Company has strengths in its operations which give it a competitive advantage over other similar companies. For example, Nike launched the do it campaign, which helped it advertise and market its products to its target markets, encouraging them not to give up on their activities. Whenever people jog or go to the gym, they feel exhausted, and that is where the advert comes in to encourage on to push on. It helped the company gain a competitive advantage over its main rival Reebok (Beresin, 2017). However, the company has its weakness within its internal strategic factors since it provides poor labor conditions in foreign countries. The company can improve its weakness by improving its social value element, ensuring fair labor laws apply to all its employees for better production.

            Porter's Five Forces technique analyses the level of competition of businesses using five criteria. As such, the model utilizes the industrial organization economics, which extracts different forces determining the level of competition, verifying the attractiveness of an industry profit-wise. The five main points used by Porter in the analysis of competition include suppliers, potential new market entrants, the company's competitive rivals, substitute products, and its customers that influence the company's profitability (Grundy, 2016). Focusing on these five forces will help Nike Company achieve its mission.  

            The Porter theory of national advantage refers to a model that gets developed to understand the competitive advantage that certain groups or nations have due to some resource endowments available to them (Harding & Long, 2018). Additionally, the diamond of national advantage helps explain how governments can facilitate global competition by placing a country in a favorable economic environment. The theory has four primary attributes acting as critical determinants of a country's competitive advantage (Harding & Long, 2018). They include demand functions, factor conditions, firm strategy or structure, and supporting and related industries.

             Nike company provides a lot of employment opportunities for individuals within the countries of operation. Thus, the company trains and nurtures people using the functional skills and experiences to teach people how to be responsible individuals taking up their duties as required without coercion (Harding & Long, 2018). Moreover, Nike also facilitates the development of leaders of tomorrow through the leadership programs provided for the management positions who get trained to manage and lead people.

             The company has been a global influencer with its products circulating in several countries; therefore, it is international. It is, therefore, necessary to help maintain its reputation through the application of various strategies (Beresin, 2017). I would recommend that the company's management employ social value creation within the company to ensure the society also gets to benefit from its existence. Additionally, by focusing on economic value creation, the company's managers can help create more employment opportunities for individuals, therefore, helping facilitate continuous circulation of money in the economy. On the other hand, environmental value can get improved through the practice of environmental protection measures as well habitat management to protect the indigenous species from extinction (Bini & Bellucci , 2019). Moreover, as a learning organization, Nike can still improve its educational provision to employees by creating, transferring, acquiring knowledge, and modifying its behavior to transform itself as whole. Nike should ensure that its value improves based on the social, economic, and environmental value creation strategies implemented to make its reputation remain at the top.