Public Domain Starbucks Coffee Company, founded inhas grown to an international brand. Despite its current industry leadership, Starbucks must continue monitoring its remote or macro-environment.
It shows how important economic forces are in the context of international business. Apart from it, economic fluctuations also cause losses. A fluctuating currency is also not a very healthy sign for international brands. Most of them are not realizing sufficient profits because of a stronger dollar since the recession.
The social forces are equally important for businesses trying to make it big in the international markets. From market to market, the cultural and social structure can be vastly different. For example the Western markets differ a lot from the Eastern markets mainly for their different cultures and societies.
Still, there are several trends that have a global influence. The growth in athleisure is a similar trend. People are looking for products that despite being athletic are stylish and fashionable. The athleisure market might be growing crowded but still Nike holds its own valuable position in this market.
Olympics season remains highly important and profitable for Nike and competing brands. The sports frenzy is at a height in this season and sports fans buy more of athletic products. Similarly, culture is an important factor and brands may be required to alter their product styles to gain popularity in the overseas markets.
Brands also do several other things to gain popularity. Now, if Nike uses a different ad in US and another one in China then it is because of the cultural differences.
Culture also affects marketing and marketing expenses. Social media is one great example how technology can affect businesses. However, it is not just marketing, production and distribution of products aew also affected by technology.
Apart from it, inventory management and sourcing are all affected by the type of technology a brand uses.
Nike has mostly outsourced its production to external suppliers. Still, in other areas like inventory and distribution, its performance is affected by the use of technology. In marketing too, technology is playing a bigger and important role. Social media has opened an all new channel to access and engage customers.
On Facebook, Nike has more than 27 million followers which is just a reflection of its global popularity.
As environmental consciousness around the world has grown, the impact of environmental factors on business performance and profitability has also risen.
Sustainability has become a major and one of the central trends in the business world. More and more brands are focusing on reducing their environmental impact and doing business sustainably.
In past, Nike faced several protests over its environmental impact which was mainly due to the bad environmental practices by its suppliers.
However, overtime Nike has managed a lot of this pressure and has framed policies making it mandatory for its suppliers to be environment friendly. Now, sustainability is linked to innovation and overall strategy at Nike.The UCS report, A Climate of Corporate Control, looks at statements and actions on climate science and policy by 28 U.S.
companies, shows how these contributions can be problematic, and suggests steps that Congress, the public, the media, and companies themselves can take to . Nike, fully known as “Nike, Inc.”, is a US-based transnational corporation which provides trendy, functional sportswear across the globe.
Having been founded in , Nike serves to “bring inspiration and innovation to every athlete in the world.” .
Mar 21, · School shootings remain extremely rare, representing a tiny fraction of the gun violence epidemic that, on average, leaves a child bleeding or dead every hour in the United States. Generally, companies guarantee privacy and confidentiality when their users sign up for their services then turn their backs and break these agreements, and make money in the process.
The political factors affecting business are often given a lot of importance.
Several aspects of government policy can affect business. Example: How political factors affect Nike. Tags: business analysis economic analysis political analysis politics regulations. Related Articles. PESTEL/PESTLE analysis of Nike.
January 2, By Abhijeet Pratap Filed Under: Marketing, pestel. Nike PESTEL/PESTLE analysis. PESTEL is an acronym for Political, Economic, Social, Technological, Environmental and Legal. Nike is a well-known brand of sports gear and apparel.