Nike environmental analysis Management Coursework Paper

Nike Environmental Analysis
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Nike Environmental Analysis
Nowadays, organizations have resulted in the use of different approaches in their bid to have a competitive advantage in the increasingly competitive global market. One of the approaches in which organizations that have integrated as one of the essential concepts is the use of environmental analysis. In recent years, environmental scanning/analysis has grown into one of the significant components of the organization's strategic management processes. It is an approach that organizations use to get data and information on both internal and external factors. In this process, organizations’ management is involved in analyzing how various environments tend to impact on the operations and performance of the organization (Hitt, Ireland & Hoskisson, 2015). In essence, environmental scanning is essential in value creation and sustaining competitive advantage for companies as it helps them not only to analyze their internal structures and activities but also competitors, employees, products, suppliers, customers, among others.
Corporations such as Nike tend to create value and sustain advantage by engaging in environmental scanning as it is a strategic management component that helps management understand current trends in the general market environment and make predictions based on the probable impacts of these trends. The process also allows Nike to collect demographic information regarding the preference of the existing and potential customers. The company can use several platforms such as the internet to study the number of clients visiting their website, product ordering trends, and reviews by past customers. Notably, Nike can improve its performance by taking advantage of such information and using it to promote their products and services. Nike can also analyze the trends of its leading competitors, such as Adidas, to ensure it comes up with superior approaches that will give them an edge in the market. In this regard, environmental scanning is an approach that can be effective in value creation and sustaining competitive advantage (Hitt, Ireland & Hoskisson, 2015). There are several approaches in which Nike and other firms can use to ensure an effective environmental scanning process with SWOT analysis to evaluate their strengths, weaknesses, opportunities, and threats in the market being one of the best(Hitt, Ireland & Hoskisson, 2015). As a result, firms like Nike have to conduct environmental scanning in a highly unpredictable environment to ensure they have a competitive advantage and enhance value creation.
Nike’s External Environment Analysis
The external environment refers to technological, legal, social, economic, and political factors that affect operations and performance.
* Legal and Political Factors. In recent years, Nike’s activities have been influenced by different political and legal factors. The political turmoil Indonesia, Vietnam, and Hong Kong has affected its sales and revenues due to the disruption of its supply chain process. More so, the firm has come under immense political pressure due to outsourcing jobs in China while its mother-country, the U.S., is fac...