International Business and Trade

(Monday and Wednesday 9:00 A.M. to 10:30 A.M.)

Submitted By:

Aquino, Sweet Ruzzel A.

Duenas, Princess Anne G.

Esagunde, Diane Clare B.

Fernandez, Anika Dana D.

Tagasa, Adrian P.

Submitted To:

Mrs. Fidjilyn Dela Cruz

II. Short Historical Background

Prior to adopting its current name in 1964, Nike was originally referred to as Blue Ribbon

sports by inventor and former track & field athlete Bill Bowerman Coach, the original headquarters

were in Beaverton, Oregon. Together with Phil Knight, his assistant and pupil who used to be a

certified public accountant and an accounting professor. They opened their first business in 1966

and began releasing a shoe line called Nike, which became their new footwear line in 1978. Now,

Nike has retail locations throughout 170 million countries worldwide.

Working at a Nike store can present a number of challenges, including long working hours

(8:00 A.M. to 9:00 P.M. in the Philippines), an in-demand retail service with a fast-paced

environment, and, finally, a drop in sales due to the pandemic. As a result, this problem must be

addressed because combining long hours with a fast-paced working environment can be mentally

and physically taxing for employees. In fact, it can reduce productivity and work service quality.
 Consequently, a drop in sales can have an impact on the overall health of the company, resulting

in multiple branches closing down and the loss of investments and shares, which can lead to

unemployment and lower wages. Solving this problem will improve the environment for both

customers and employees while also increasing the brand's economic growth.

III. Viewpoint

John Donahoe — CEO of Nike, Inc.

IV. Time Context

From the year 2020-2021

V. Statement of the Problem

1. How does the low productivity of the employees caused by excessive working hours have a

direct impact on the company’s financial performance?

2. How can an in-demand retail service with a fast-paced environment enhance its sales due

to the effect brought by the pandemic?

VI. Areas of Consideration

The following SWOT analysis will provide insights into Nike’s internal strengths and

weaknesses as well as the opportunities and threats posed by the company’s external

environment. The following is a summary table of the SWOT analysis.

 Quality of the Products  Poor Labor Conditions

 Loyal Customer base  Insufficient diversification

 Offers their products worldwide  Outsourced Manufacturing

 Effective Advertising  Expensive products

Opportunities Threats

 Innovative Products  More intense competition

 Consumer Direct Strategy  Economic Uncertainty

 Growing Market  Marketing Budget Pressure

 Fashion potential  Impact of the COVID-19

Pandemic

VII. Alternative Course of Action

ACA 1: It would be ideal if, throughout sales of restricted quantities, online pre-ordering allows

clients to avoid this by providing time periods for goods pickup. The risk of transmitting the COVID-

19 virus in order to safeguard the staff and clients, all while enhancing the management of

inventories for a franchise.

 Crowd Control  Potential customer loss due to

 Customers and employees are less inability to recall the pre-order

likely to become infected with COVID- period by window shoppers.

19.  Customers who forgot about the

 Nike employees will be less tired now pick-up date and did not receive the

that orders can be placed online. item.

 Organized and capable of practicing  Lesser market because not all are

social distance within the Nike Branch interested in gadgets.

ACA 2: In order to increase sales after they decreased due to the epidemic, Nike can put a greater

emphasis on communicating with their clients to increase the effectiveness of their attempts at

innovation.

Advantages: Disadvantages:

 Nike will gain access to new specialized  In comparison to internal stakeholder

markets. judgments, customer feedback may

 Expands on the concept of social well- be biased and less future-focused.

being.  May have an impact on Nike's ability

 Customer feedback allows for more to stick to their business model.

efficient inventory management.  Possible inefficiencies

ACA 3: In order to lessen employee burnout while maintaining high production, employees at
 Nike may receive incentives based on performance. This might incorporate a either bonus or time

off from their work.

Advantages: Disadvantages:
VIII.  Employee morale is boosted  Some people may eventually become

 Builds on the principle of the FBL even more burned out.

approach by encouraging employees  Overworking

to improve their own performance.  Because of the competitive nature of

 Production will eventually Increase this, it may cause conflict among

employees.

Recommendation

The researchers recommend the first alternative course of action.

IX. Conclusion

As can be seen, all possibilities are realistic, and each includes a thorough plan for

providing the urgently required solutions for the firm. But the current pandemic calls for this specific

plan, which is why we agree with the first proposed alternative course of action. 

This strategy not only reduces the risk of infection for the consumer and employee, but it

may also be used to estimate the amount of product that should be provided on the first day of

sales. On the company's website, buyers who wished to purchase the newest footwear or a limited

item were encouraged to pre-order. This action was taken so that the company could continue to
 operate properly despite the pandemic. A unique number and a QR code, both of which may be

scanned in a matter of seconds to validate the identity of the ordering customer.

To top it all off, the financial and physical benefits of this alternative method do not outweigh

those of the selected alternatives, which is a decisive factor in narrowing the field to only two viable

options. Therefore, it is crucial to pay attention to employee concerns, particularly if they have the

potential to reduce productivity in the workplace.

X. References

Research, C. F. (n.d.). How Much Does Market Research

Cost? [Link]

How QR Codes Work and Their History. (2020, May 8). QR Code Generator. [Link]

[Link]/blog/how-qr-codes-work-and-their-history/

Nike. (n.d.). [Link]. [Link]

NIKE, Inc. - Investor Relations - Investors - Corporate Governance - NIKE, Inc. Executive Officers.

(n.d.). [Link]

973d389ab618

The Editors of Encyclopedia Britannica. (2010, March 1). Nike, Inc. | History & Facts. Encyclopedia

Britannica. [Link]

[Link]

Coronavirus (COVID-19) Statement. (n.d.). [Link]. [Link]

closures

Balu, N. (2020, June 26). Nike posts surprise loss as COVID-19 hits wholesale business.

U.S. [Link]