Environment, Mission, Objectives, and Strategies of NIKE

Strategic Management
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Introduction
This case will be focusing on Nike Inc. Nike is among the market leaders in the footwear and apparel industry across the globe. Therefore, the case will assess the external environment of the company, the strategies that have been employed and the main objectives of the company as well as the challenges that Nike faces.
About Nike
Nike is a multinational company that is involved in the design, manufacturing and selling of sport shoes and apparels. Nike was founded by Mr. Philip Knight and Mr. Bill Bowerman as Blue Ribbon Sports in the 1964. In 1978 it became Nike Inc. and since then it has produced superior brands such as Nike+, Nike Skateboarding and Nike Pro. Moreover, the company has been run as a wholesaler and retailer of shoes in 136 countries across Europe Asia America and Africa. Like any other company Nike has since been faced by competition from other producers of shoes across the world. However the competitors have adopted slightly different strategies from those of Nike.
Environmental analysis of Nike
To understand fully the strategy that has been utilized by Nike, it is better to analyze its external environment. This is when we will understand how best the company will counter the shortcomings as well as expand more in the market.
Political environment
The political environment in America has greatly influenced the development and expansion of Nike Company as the government supports the use of shoes for domestic use. The government of America since the year 1890 has been advocating for the use of environment friendly sources of energy that does not pollute the environment. Since its encouragement the number of people has greatly increased from 29% in 1890 to 82% in the recent years. The government also came with a policy of advocating for environmental conservation, which brought more people to the use of shoes.
Social environment
The social aspect is very essential for any growing business. Nike has benefited to a great extent from the social environment as the citizens are in support of using shoes for domestic and industrial use. Generation to generation is observant of this regardless of the age of an individual. The small businesses have come along to supply shoes to the homesteads through the social groups that have been formed.
Economic environment
The economic environment of Nike has made it to spread fast to the outside world. This simply because the government has reduced to a great extent the tax rates of the companies producing and distributes shoes. According to the government these companies should be subjected to a 5% tax on their returns, which is a reduction from 20% tax rate on any company in America. The Company as well enjoys a subsidy from the government of America as the cost of export of shoes is cut down by 50%.This has in fact helped Nike to survive well in the industry.
Mission of Nike
According to the company’s website, Nike’s mission is to “Bring inspiration and innovation to every athlete in the world”. The company considers every human being to be an athlete; therefore, it aims to supply the shoes at affordable prices so that everyone can afford them.
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