Evaluating Corporate-Societal Relationship of Nike Inc.

Nike: Evaluating a Corporate-Societal Relationship
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Nike: Evaluating a Corporate-Societal Relationship
Introduction Nike Inc. is a US-based company that produces, markets, and sells sports equipment, shoes, apparel, accessories, and services. It was established by Phil Knight and Bill Bowerman in 1964. Moreover, it runs a global marketing strategy of its products and services and has numerous contracts with sports teams for jersey production. It is headquartered in Beaverton, Oregon, and has subsidiary companies such as Converse and RTFKT Inc. The company boasts of worldwide success since its revenue in 2002 was $4.66 billion, while in 2021, the revenue had exponentially increased to $17.68 billion (Statista). As of 2020, the corporation had an estimated 75,499 employees across the globe. It is imperative to evaluate the firm’s performance through a lens of products and services, financial performance, and the external environment. Primary Products and Services Nike’s primary products entail athletic footwear and jerseys, consumer apparel, accessories, and equipment. The main products are essentially coined in the athletic segment. However, the apparel and footwear are casual. The company also manufactures high-quality sneakers through its subsidiary firms Converse, All-Star, Chuck Taylor, and Star Chevron and collaborates with other footwear firms such as Jordan (Nike). The firm produces jerseys and football boots for football, NFL, basketball teams in America, Europe, and Asia. Through NIKE trademarks, the business licenses agreements allow external companies to produce and sell clothes, digital gadgets, software, and other sports and athletics equipment. The company distributes sportswear, athletics-based, tennis, skating, gym, and golf customer segments (Nike). The accessories produced by the firm consist of socks, bags, sports balls, gloves, protective equipment, and eyewear. Stakeholders’ Impact on Company Fiscal Performance             Stakeholders in a multinational firm such as Nike play a significant role in organizational financial performance. Stakeholder engagement is the first approach to which the firm can improve its productivity. A company’s capacity to properly engage its primary stakeholders is reflected in its fiscal performance. Currently, the emphasis has evolved from relying just on tangible asset growth to more significant value generation through formulating symbiotic partnerships with internal and external stakeholders (Derun and Mysaka, 113). Strong financial performance may be sustained by cultivating formidable connections with stakeholders. Furthermore, keeping healthy relations with stakeholders ensures that the company will get sustained support even when facing financial difficulties (Derun and Mysaka, 116). With such a solid connection, Nike stakeholders provide post-startup finance to the company, while suppliers can provide trade credit facilities, which keeps the firm afloat. Such an aspect means that a firm’s intentions and efforts to cooperate with stakeholders like suppliers and consumers increase the establishment’s market value. S...