Question

Macro-Environmental Impact: • Discuss how any four of the six macro-environmental forces will impact (positively or negatively) the success of Nike shoes product after it has been (hopefully) established in the market.

• Be as specific as possible in your description of the likely impact in each instance.

Answer 1

1) POLITICAL FORCES

The government must create economic policies that will foster the growth of businesses. Nike, fortunately has been helped by the US policies which enable it to advance its products .The support accorded to Nike by the US government ,particularly in the general macroeconomic stability, low interest rates, stable currency conditions and the international competitiveness of the tax system from the foundation critical to Nike's growth.

2) LEGAL FORCES

without proper management leading and planning in the Nike Corporation, the company would have suffered from the child labor issue. Nike has made a true bounce-back from the negative media attention and continues to be successful due to their strong business ethic philosophy .

3) ENVIRONMENTAL FORCES

Environmental consciousness has a strong presence in Western Europe and Japan, as well as in the United States. Currently ,Nike has been pursuing product sustainability for more than a decade.From increasing the use of water -based solvents in footwear manufacturing and working to keep greenhouse gas emissions in check, to supporting organic cotton and turning old shoes into new sports surfaces .Nike's commitment to sustainability is part of our considered ethos. It can be said then that Nike doesn't suffer environmental issues.

4)SOCIAL CULTURAL FORCES

People are more health conscious now a days .Diet and health are getting more prominence. Consequently, more and more people are joining fitness clubs. There is an accompanying demand for fitness products particularly exercise apparel, shoes and equipment.Nike is at the forefront of this surge in demand as people are looking for sports shoes, apparel and equipment .Nike, however ,failed to forsee problems brought about by a sweatshop expose pertaining to labor and factory conditions at production location in Asia. This caused bad publicity and declining sales as society and consumer demand more socially responsible companies .

These factors directly or indirectly have an impact over the ecosystem of the business .