Question

Select any five from the following contemporary strategic management issues and discuss its relevance and importance to the corporate strategic management process of the Nike company:
- Effective use of energy with moves towards electrification.
- Sustainable use of natural resources.
- Protection of the biosphere and the development of carbon neutral organizations.
- Country self-sufficiency.
- Greater energy and resource efficiency.
- Reduction and disposal of waste.
- Change of attitudes and lifestyle.
- Sustainable use of natural resources.

Answer 1

Top Management Commitment to Sustainable Business Development

So, what began fifteen years ago as Nike’s horror show of globalization has evolved today into the inspirational story of its transformation to a sustainable global enterprise. Nike is passionately committed to “build a sustainable business and create value for Nike and [its] stakeholders,” and not just its shareholders. Sustainability is no longer about risk management for Nike; it is about growth. Leaders and employees of the company recognize the interconnection between sustainability, brand enhancement, capital efficiency and profitability — Nike’s growth strategies are built on these four pillars. CEO and president Mark Parker is also greatly committed to “decoupling” Nike’s “profitable growth from constrained resources.”

Product Stewardship based on Environmental Innovations

Environmental sustainability principles frame Nike’s business model and its determination to limit the use of natural resources. In fact for Nike, sustainability is an “opportunity for innovation.” Eco-friendly materials, products and process innovation strategies are being deployed. For example, its Flyknit technology, which uses a single thread to knit a shoe upper, helps in preparing more custom fit and lighter shoes and generates less waste during the upper production process. The “waterless dyeing” technology for textiles uses CO2 instead of water. And Nike is collaborating with NASA, U.S. Department of State and USAID to encourage innovations that generate more environmentally and socially sustainable materials and fabrics.

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