INTERNATIONAL BUSINESS

International Business



International Business

Introduction

The global financial crisis now underway is expected to have major impacts on North American and European consumers due to massive job losses and reductions in spending power. It will have even more serious consequences for people all over world.

The financial crisis will undoubtedly reduce US and EU demand for at least some categories of apparel imports from East as economic uncertainty (about job security, income, and savings) leads consumers to cut back on purchasing and brands and retailers to cut back on production in anticipation of shrinking consumer markets. It is common sense that as recession deepens and unemployment rises consumers would generally have less disposable income than before causing them to curb their spending (ivythesis.typepad.com). This will lead to the striking change in consumer purchase decisions and spending patterns and consumer behavior. With squeezing pouches buyers are expected to forego many goods and services, they are more expected to look for sharply-discounted goods, which will favor some brands and retailers and not other ones.

Discussion

Nike being largest seller of athletic footwear and athletic apparel in world with subsidiaries in over 200 countries across world has attempted to keep itself on cutting edge of technology. Yes, Nike is providing goods for numerous sports like for example, basketball and tennis and even football. Nike has been launching new technically advanced shoe models from time to time, backed by innovative advertisements, celebrity endorsements, successful associations and event sponsorships. Yes, company may narrow its product line of athletic shoes maybe, Nile will decide to strengthen its management, overhaul its information systems and streamline supply chain management to achieve growth through market tactics that may cater to standard footwear, apparel, equipment, and accessory products as such footwear products were mostly produced outside US, while apparel and equipment were made both in US and abroad (Roger 1996 p69).

The type of acquisitions for Nike, one it can be acquiring better monitoring for its suppliers as Nike has pushed its suppliers to obey standards through increased monitoring and inspection efforts. For example, all potential Nike suppliers must undergo SHAPE inspection to be conducted by Nike production staff in order to see if they meet Nike's standards for the clean and healthy workplace, respectful labor-management relations, fair wages and working conditions and minimum working age. Nike company should push through development of grading system for its suppliers, which it will use to determine future orders and thus create the strong incentive among its suppliers to improve working conditions. Nike will have to explore innovative incentive schemes that will reward good corporate citizenship among both its suppliers and its own managers (Oxley 2008 p34).

In most of its business operations, Nike has done proper approach in marketing globally in its footwear products as Nike brought inspiration and innovation to athletes in world and it considers everybody to be an athlete! As the high profile, industry-leading sports company, Nike continually strives to keep itself at forefront of product innovation and design as Nike integrates ...