MBA5110 Assignment 1 Explore Managing in a Global Context


Assignment 1: Explore Managing in a Global Context

Managing in a Global Context


When exploring a business that has expanded globally topics such as the contemporary global economy, the international trade, business management, their competitive strategy, and the barriers they are faced with when doing international trading. Nike is a company that was founded in 1964 which was a distributor for a Japanese shoe maker. Nike got their official name in 1971. A student from Portland state university designed the Nike logo and the logo originated from a serial killer. Nike now has locations throughout the globe such as central and south America, Europe, China, japan and Asia pacific, middle east and Africa, and North America.

Nike’s global competitive strategy

Nike uses a growth strategy that is called market development. They tend to enter new markets such as Africa and the middle east to help increase the shoe sale revenues. With the cost leadership and differentiation generic strategies this will help the performance in the global industry. Nike improves their growth strategies by using product development, market penetration, market development, and diversification. Nike is the leading company in global shares at 31 percent in athletic footwear. The company takes note on the differences, similarities, and opportunities so they can meet global objectives. The reason they are successful in the global market is because they know how to reach their audience by a personalized approach that can speak for diverse cultures, needs, customs, and their differences. Nike likes to incorporate the norms of that region. This help them create a strategy that have related products for different markets. The organization tends to target male and females from the ages of 18 to 35. Looking at the company’s financial analysis will help determine any improvement from the current year to the previous year. In 2015 Nike’s revenue was at $30,601 million in 2016 it increased to $32,356 million and the 2017 fiscal year has yet to come out but it is predicted to be higher than previous years. When doing trading internationally you must have trade agreements and alliances such as NAFTA, The European union, ASEAN, and WTO.

Trending topics

There is currently no trending topic through twitter, Facebook, or Instagram, but there is a scandal with the Nike Oregon project runners. The runners are financed through Nike to bring more relevance to distance runners in America. Dr. Jeffery brown an endocrinologist who has treated many Olympians has been accused violating antidoping rules and working with Salazar to cover it up. Negative news such as this can give Nike a bad name and can result in a loss of sales because of scandals.

Cross cultural issues

When having a business that has expanded internationally manager must understand the cultural differences throughout the globe. When a manger does not do its research, it can result in lack of communication between the company and the prospected new country. It can also cause of lack of respect, negotiation breakdowns, and can cause a loss of current or future business opportunities. A failure to understand the customs of the different suppliers can cause a steep business loss, which can hurt the supply chain. When doing business in western Europe it is like North America traditions they are time sensitive and they value punctuality. Western Europeans are direct and formal with discreet and subtle communication. When doing business with eastern Europeans thy value their personal space, their perception of power is typically lower that the western Europeans and north America. They communicate direct and straight forward. In Asia because there is an abundance of people, personal space is