Effectiveness In The Business World

EBWO3001 | Effectiveness in Business World

Autumn 2018 Portfolio

Effectiveness in the Business World

(EBWO3001)

Student Name:

Student Number:

Lecturer Name:

Assessed Learning Outcomes:

1. Demonstrate an understanding of the concept of the organisation and the

environment in which it operates, including determining the competitive

advantage for an organisation.

2. Identify and analyse organisational operations, responsibilities

3. Discuss the needs of the consumer and people who work in a business.

4. Recognise a range of issues related to business and how they interlink.

EBWO3001 | Effectiveness in Business World

How you are required to approach your Assignment

As a requirement for the completion of this portfolio, you should first decide on a type of

business you would like to research from the list provided, your answers to the tasks below

should relate to this business chosen.

List of Business’s to choose from:

Nike, Samsung, Facebook.

Tasks

Contents (350-400 words per task)

Total word limit: 1500 words (+/- 10%)

Page

Learning

outcomes

Task 1

a. Briefly describe the nature, background and

history of a business you have chosen from

the list

b. In what ways could PESTEL be useful in helping

the business to meet its objectives?

LO1/4

Task 2

a. In what ways is ‘globalisation’ having an

impact on your chosen business? Discuss two

examples.

b. How has technology helped the chosen

business to succeed in its daily operations?

LO1/2

Task 3

a. Briefly identify the targeted customers the

business tailor to. Why is it important for a

chosen business to understand its customers?

b. Describe TWO ways in which your chosen

business can attract and keep more

customers.

LO1/3

Task 4

a. What is the role of ethics in your chosen

business?

b. With examples from similar or competitive

businesses, describe how your chosen

business is combating Carbon Emissions and

reducing Co2.

LO3/4

EBWO3001 | Effectiveness in Business World

References (in full Harvard style – see your EAP 1

note)

This portfolio is a working document that MUST be completed over the 10-week course.

By the end of the 10-week course, you should have completed 4 tasks. You will also be

required to work on your portfolio during your weekly tutorial sessions.

ASSESSMENT – PORTFOLIO

Task 1

Learning

Outcomes

a. Briefly describe the nature, background and history of a

business you have chosen from the list

b. In what ways could PESTEL be useful in helping the

business to meet its objectives?

LO1/4

Your answer should go in the box below.

Bill Bowerman and Phil Knight in 1964, founded Blue Ribbon Sports, which they later

rebranded to Nike, Inc. Bowerman was a track-and-field coach with the University of

Oregon while Knight was his former student. The first retail outlet opened in 1966, and in

1972, they launched the Nike brand shoe (“Nike, Inc. | History & Facts," n.d.). Blue

Ribbon Sports changed to Nike, Inc. in 1978, and two years later it went public. Nike’s

logo, also called “swoosh” was recognized worldwide by the early 21

century. This was

EBWO3001 | Effectiveness in Business World

attributed to Nike having distributors and retail outlets in more than 170 countries. Nike

expanded its business in the late 1980s and acquired other companies that resulted in the

diversification of its products. Nike acquired Umbro in 2008 and sold it in 2012. Besides,

the company also acquired Cole Haan in 1988 and sold it in 2012. Canstar Sports, which

later changed to Bauer, was acquired by Nike in 1994 but later sold in 2008. Additionally,

the company acquired Converse, Inc. in 2003. Nike created Nike ACG ("all-conditions

gear") in 1996 and by the early 21

century, Nike was retailing sports-technology

merchandise.

b).

PESTEL analysis is a tool used by marketers in analyzing factors that affect organization

externally. The aspects of PESTEL include political, economic, social, technological,

environmental and legal. PESTEL is useful in an organization because it helps identify

weakness and threats and the results used in the SWOT analysis. PESTEL is a valuable

business tool since business operates in an ever-changing environment (Rowland 2017).

PESTEL is vital for assessing business growth, decline, potential and direction. Social

factors are cultural aspects such as demographics, migration and the changing lifestyle

that affect the business either positively or negatively. Nike’s social environment is

smooth, and this can is attributed to Nike targeting athletes and retailing quality

affordable shoes. Nike launched the transparence 101 program to help deal with

transparency issues for more than 500,000 of its workers globally. Additionally, Nike’s

technological innovation has resulted in the creation of new products and services.

Besides, the diffusion of technology in Nike has made the shoes lead in quality

improvement. For example, Nike produces shoes for athletes that are ultra-supper light.

EBWO3001 | Effectiveness in Business World

Task 2

Learning

Outcomes

a. In what ways is ‘globalisation’ having an impact on your

chosen business? Discuss two examples.

b. How has technology helped the chosen business to

succeed in its daily operations?

LO1/2

Your answer should go in the box below.

Globalization refers to the system of integration and interaction among companies,

countries, and people to develop the world’s economy. Globalization has both negative

and positive effects on the environment, culture, human beings and economic

development across the globe. Due to globalization, Nike has developed a market

worldwide by having more than 20,000 retailers in the word. The distribution channels for

Nike in almost 200 countries are both traditional and non-traditional (Crosby and Johnson

2002). Nike has a primary market in Europe, Asia Pacific, and the United States. In the

athletic footwear industry, Nike Company has a 33% share in the global market. Due to

globalization, Nike has more than 500,000 workers globally with a brand value of 10.7

billion dollars.

EBWO3001 | Effectiveness in Business World

Nike’s headquarters are in USA, Oregon, and Beaverton, where most of its research takes

place. The rubbers used for trainers come from Indonesia and Malaysia, and cotton comes

from India, Turkey, and the USA. Products are manufactured in China, Pakistan,

Indonesia, Vietnam, and the Philippines since labor costs are cheap. All this is benefits are

attributable to globalization.

With the help of technology, over 75% of Nike’s products contain recycled material.

Additionally, Nike reuses manufacturing waste with the help of technology. Technology

has made it easier for Nike’s brand such as Flyknit and Air to be made from

computational knitting that reduces waste associated with shoe design by over 60%. The

Air innovations by Nike has resulted in the use of 70% recycled material for the Air Max

270 and 75% for Air Vapormax, further reducing the impact of waste on the environment.

With the help of technology, Nike is working on using 100% renewable energy for its

worldwide operation by 2025. The use of technology has resulted in a reduction of waste

by 3.5 million pounds. The method of innovative technology has placed Nike among the

few companies that are investing in 3D printing. Technology has also helped Nike to

monitor and manage its retailer’s outlets and distribution channels globally (Graham,

2017). Nike is using the Flyknit technology to launch the Fe/Nom bra. The bra offers

breathability, conforms to the body and flexibility the same way the Flyknit shoe

conforms to the foot. Nike uses 2.7% of its revenues on IT with 40% of the IT budget

goes towards operation, and 60% used in innovative new technology.

Task 3

Learning

Outcomes

EBWO3001 | Effectiveness in Business World

a. Briefly identify the targeted customers the business

tailor to. Why is it important for a chosen business to

understand its customers?

b. Describe TWO ways in which your chosen business can

attract and keep more customers.

LO1/3

Your answer should go in the box below.

One of Nike’s target consumer is women aged between 20 and 30 years. These women

largely contribute to the “athleisure trend.” This trend is where customers purchase

leggings with the intentions of wearing them to run errands, gym, and brunch. According

to the CEO Mark Parker, sales for women apparel outgrew the men’s sale by double in

the last quarter (Islam, 2017). To cater to this consumer target, Nike has released couture-

style collections. Young athletes are also Nike’s target customers. Nike, through

sponsorship with clubs, local leagues and federation has drawn in young customers by

dressing the young athletes. For example, the NFL team wear Nike gear. Another target

customer of Nike is runners. Nike has a running app called Nike+ that help runners track

their pace, route, distance, calories and time. Nike running shoes like LunarTempo are

explicitly designed for distance runners. In efforts to recruit new customers, Nike

sponsors grassroots running events. Nike use of famous athletes such as Kaepernick has

contributed massively in increased sales.

There are several ways that Nike can attract and keep customers. One way is the use of

target strategies. Product sponsorship by celebrity sportsmen and athletes has proven to

be successful (Crosby and Johnson, 2002). When a superstar like Kevin Durant sponsors a

particular shoe brand, there is the capability to reach many other athletes. This strategy

has helped reach many athletes and has increased sales. For example, when a team

manager decides on one particular track shoes manufactured by Nike, the team members

have no options but purchase the shoes.

Styling the product purpose or objective is another marketing strategy that Nike is using.

Associating apparel with triumph and victory has a psychological effect on the viewers

since the apparel is related with a victory. For example, when Kaepernick became the face

of Nike, online sales increased by 31% during the Labour Day weekend. This move made

the company’s shares to hit a record of 83.83 billion dollars. Nike’s marketing strategy is

based on a favorable product image. The utilization of Nike’s logo in product promotion

and commercials has spearheaded its marketing strategy throughout the years.

EBWO3001 | Effectiveness in Business World

Task 4

Learning

Outcomes

a. What is the role of ethics in your chosen business?

b. With examples from similar or competitive businesses,

describe how your chosen business is combating Carbon

Emissions and reducing Co2.

LO3/4

Your answer should go in the box below.

EBWO3001 | Effectiveness in Business World

Ethics are essential in business because a business with strong business ethics attracts

investors and customers, hence, increasing sales and profits. Practicing good business

ethics also make employees want to work for the company, therefore, increasing

productivity. A business that sets out good ethical guidelines is at less risk of being

sued for non-compliance. Nike has made efforts to be an ethical business (Nisen, 2013).

The code of conducts at Nike ensures that the company meets health and safety, wages,

and hiring standards. Nike employees also have a code of ethics they are expected to

follow (“Nike, Inc. | History & Facts” n.d.). Nike has been called out for being

unethical before. Activist Jeff Ballinger published a report in 1991 that exposed the

poor conditions and poor wages at Nike’s Indonesian factories. After much pressure

from the public, Nike made some changes by increasing factory audits and raising the

minimum wage of the employees. Nike’s reputation has successfully improved

especially in social and environmental performance. In contrast, Nike received “C”

rating in the 2017 Ethical Fashion Report. The rating was as a result of Nike’s minimal

empowerment initiatives that were evident across its supply chain.

Nike is compacting carbon emissions and reducing CO2 in different ways. By 2013,

Nike had a 13% reduction in the carbon emitted. Greenhouse gas emissions also

decreased by 2.8% from 2011 to 2013 (“Nike, Inc. | History & Facts” n.d.). All 204

Nike retail stores in North America purchased renewable energy certificates in 2013.

The key global distributors of Nike produce their renewable energy. The European

Logistics Centre in Belgium has a solar installation and six wind turbines which has a

capacity of 1.5 megawatts. The Logistics Centre in China produces renewable energy

through a solar heating system. Carbon emission reduced by 17% between 2011 and

2013 in the manufacturing of Nike Brand’s footwear. Carbon emission during

transportation also reduced by 29% from 2011 to 2013. Nike ensures that their retail

locations and corporate buildings abide by the Leadership in Energy and

Environmental Design (LEED) (Silby and Tenant, 2006). According to a recent MIT

study, manufacturing of footwear contributes to 57% of the overall carbon footprint at

Nike. Nike’s effort to reduce carbon emission lead to a shift in their transportation

methods. This shift was from using air transportation to using water-based

transportation (“Nike, Inc. | History & Facts” n.d.).

EBWO3001 | Effectiveness in Business World

References

Crosby, L.A. and Johnson, S.L., 2002. The globalization of relationship

marketing. Marketing Management, 11(2), p.10.

DeTienne, K.B. and Lewis, L.W., 2005. The pragmatic and ethical barriers to corporate

social responsibility disclosure: The Nike case. Journal of Business

Ethics, 60(4), pp.359-376.

Graham, K., 2017. How Nike is taking the next step in digital transformation. Digital

Journal. Accessed at http://www.digitaljournal.com/tech-and-

science/technology/how-nike-is-taking-the-next-step-in-digital-

transformation/article/506051.

Islam, Z., 2017. Nike’s Brilliant Marketing Strategy – Why You Should Be (Just)

Doing it Too. ReferralCandy. Accessed

at https://www.referralcandy.com/blog/nike-marketing-strategy/.

Locke, R.M., Qin, F. and Brause, A., 2007. Does monitoring improve labor standards?

Lessons from Nike. ILR Review, 61(1), pp.3-31.

Nike, Inc. | History & Facts, n.d. Accessed at

from https://www.britannica.com/topic/Nike-Inc

Nisen, M., 2013. How Nike solved its sweatshop problem. Business Insider, 9.

Rowland, C., 2017. Nike Inc. PESTEL/PESTLE Analysis & Recommendations.

Panmore Institute. Accessed at http://panmore.com/nike-inc-pestel-pestle-

analysis-recommendations.

Silby DW and Tennant Teresa M, 2006. Informing consumers about carbon usage

based on purchases. U.S. Patent Application 11/255,997.

EBWO3001 | Effectiveness in Business World

End of Portfolio

Place new order. It's free, fast and safe

Paper type

Deadline

Page count

550 words

Total price: $ 15.00

Our customers say

Jeff Curtis

USA, Student

"I'm fully satisfied with the essay I've just received. When I read it, I felt like it was exactly what I wanted to say, but couldn’t find the necessary words. Thank you!"

Ian McGregor

UK, Student

"I don’t know what I would do without your assistance! With your help, I met my deadline just in time and the work was very professional. I will be back in several days with another assignment!"

Shannon Williams

Canada, Student

"It was the perfect experience! I enjoyed working with my writer, he delivered my work on time and followed all the guidelines about the referencing and contents."