Case study analysis Nike sweatshops and business ehtics

Analysis Nike sweatshops and business ehtics - Case Study Example The sells a number of their products per year but the company lacks a production unit and thus contracts other companies to manufacture for them all around the world. It is estimated that over 900,000 million people are employed in these different companies around the world to produce Nike based products alone. A large number of these companies are based in Asian countries like Philippines, Taiwan, Vietnam, Thailand, Pakistan and Indonesia where critics have accused Nike to offer poor working condition for the workers as opposed to the United States’ labor laws. The company has been accused on several occasions for exploiting the sweatshop labors upon which its operations are based to increase their profitability while exploiting the locals and rewarding them poorly. Nike had total revenue of $16 billion in 2007, a slight improvement from what the company posted in the previous years. Introduction This paper provides a detailed case study of Nike sweat shops as they are curren tly operated and managed across the globe. As part of the analysis, the business model adopted by Nike shall be analyzed in this paper, providing a comparison with other business models that do exist. The core mission, values and visions of the company will also be discussed to ascertain their relevance in the progress of the company. This paper will adopt the five porter analysis technique to describe the strategic plans and approaches adopted by Nike sweatshops. Porter five force analyses is a framework developed to enable consultants conduct critical industry analysis and business strategy development. SWOT analysis of the company will also be conducted to help form a clear basis upon which their success and/or failure will be weighed. Ethical issues in Nike sweatshops have been a major topic both in the United States and in other countries where the company’s goods are manufactured. This case study will also seek to provide a detailed analysis of the ethical conduct and m isconduct of Nike sweatshop to ascertain the relevance of the claims. Finally, recommendations based on the results obtained from the analysis will be provided emphasizing on the legal requirements that guide such recommendations. Existing business model Business model provides an in-depth analysis of the practices of the business that seeks to create, deliver and capture value for the products being handled. In this section, the core operational aspects of the business, strategies employed organizational culture and structure and trading policies will be evaluated. The business model adopted by any organization contributed to a larger percentage its ability to succeed and deliver value to its consumers. Nike has a value proposition that translates into nothing is impossible if you put the right effort and practice into whatever you want to achieve. This has been a marketing strategy adopted by the company for long to enable it retain its sport consumers who require motivation in th eir daily endeavors. The creation of innovation and inspiration to all athletes in the world the company’s core target and this has enabled Nike to maintain its traditional customers in the sporting fraternity (Drago 117). Nike has for long adopted the franchising business model to enable it produce large volumes of products that can meet the demands of its large consumers spread across the world. Franchising is defined as a practice of using other