Nike’s Business Performance and Core Management Functions

MANAGEMENT THEORIES TO NAVIGATE GLOBALIZATION CHALLENGES – CASE OF NIKE
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Introduction
Globalization is inevitable for businesses to avoid in the modern epoch. Globalization includes customer expansion, numerous revenue channels, and a diverse workforce to survive the paradigm shifts emerging in the business environment. Progressive organizations use globalization as a strategic tool to formulate a sustainable culture and align operational roadmaps for continuous growth. However, globalization attracts various challenges for businesses to sustain operations in the long run. Organizations operating in different jurisdictions encounter different laws, workforce practices, and stakeholder expectations, influencing strategic direction (Witt 2019). Globalization is a significant topic to study while comprehending the business strategies and environmental responses of diverse organizations like Nike. Nike is the largest athletic shoe and apparel manufacturing company in the United States of America (US). The company manufactures footwear, apparel, equipment, and other delivery-related services. Nike generated a net revenue of $50.6 billion in FY2022. Figure 1 illustrates Nike’s revenue trend in the US market. Founded in 1964, Nike has more than 79,000 employees worldwide (Forbes 2023). Nike’s brand value is $30+ billion. The company owns 40% market share of the US athletic apparel and footwear industry (Tighe 2023). This research will evaluate Nike’s business performance in a global business environment. The paper will also discuss Nike’s core management functions and relationship with legislation.
Discussion
Globalization is a broad concept for businesses to operate in a cross-border environment. Cote (2021) explains globalization as a process to expand the flow of goods, information, and people beyond national boundaries. Companies interact with different environments, cultures, and work practices to formulate a collective culture while integrating globalization into the business model. Globalization empowers businesses to enter new markets, capitalize on emerging opportunities, and diversify risks by acquiring competitive advantages. Table 1 in the Appendices illustrates the economic globalization index in FY2022. Nan et al. (2022) explained globalization as an accountability process for businesses toward people, society, and the planet. The authors state that globalization increases business complexities to mitigate malpractices and violations while operating internationally. Businesses embracing globalization would exhibit citizenship toward diverse stakeholders (Nan et al. 2022). Businesses must comply with ecological, civic, and corporate guidelines when promoting globalization through collective efforts. Nan et al. (2022) further explained that globalization harms companies. Companies expanding in underdeveloped jurisdictions could reduce compliance guidelines and exploit parameters. For instance, companies could increase carbon footprints or practice pay discrimination after internationalizing busine...