A five forces analysis, based on michael porters model, points out that competition, customers and substitutes are the most important external forces in nike s industry environment. They may have a strong brand and healthy finances, but they need to pay careful attention to the morality of their practices and watch out for other growing, cheaper outlets. Pestle analysis of nike macro environmental factors business essay, 20 bibliography. Pestel stands for political, economical, social, technological, environmental and legal and forms of analysis of the macroenvironment of the organization thomas, 2007. Any opinions, findings, conclusions or recommendations expressed in this material are those of the author and do not necessarily reflect the views of businessteacher. This pestel analysis of australia aims to address some of the political, economic, social, technological, environmental, and legal factors that affect australia today. It was found by bill bowerman and phil knight in the year 1964. Pestle analysisin apple case study, pestle analysis is done critically. The amalgamation of style with technology led the foundation of success for nike, inc. Pestle analysis for employee performance management pest analysis pestle explained with example in this video, we explain pest analysis including.
Pestle analysis of nike macro environmental factors for this assignment. This analysis will so how sonys business is influenced by these forces and how it stands to gain or lose due to such pressures in the global market. Pestel analysis provides great detail about operating challenges jd sports fashion plc will face in prevalent macro environment other than competitive forces. These are the sources and citations used to research pestle analysis of nike.
Nike settled this case in california supreme court after facing defeat and suffered greatly at the hands of bad publicity. A pestpestelpestle analysis of nike by cheshnotes notesmatic. Its main focus is to produce quality and innovative products. Pestle analysis of nike macro environmental factors free. As a consumer of product will be one determining factor in whether a product will be sold or not sold, it is imperative to think about the different aspects that may impact a consumers choice product design being one of the aspects in question. Before starting nike pestle analysis, let us explore it. Nike swot analysis a detailed swot analysis of nike. We invest deep in order to bring you insightful research which can add tangible value to your business or academic goals. To maintain its position in the athletic shoes market, nike inc. Politically, nike has some interesting issues to contend with. Pestle is the analysis of the external factors that play a crucial role in conducting an extensive research before starting up of a new project. However, nike also shows promise of a change in their current practices, with a strong resolve to become more eco. In this swot analysis tutorial, we will discuss nike swot analysis strengths, weaknesses, opportunities and threats.
The full form of pestle is political, economic, social, technological, legal and. In order to reach this conclusion pestel analysis is done to identity the key drivers of change that can be used to predict the scenarios for the future. Prioritization of the issues in a pestel and swot is typically quick and may need to be refined when dealing with a really complex challenge. Nike swot 2020 swot analysis of nike business strategy hub. The risk posed by the identified factors is assessed by the managers and application of the knowledge is ensured to make the. For example an industry may be highly profitable with a strong growth trajectory but it wont be any good for jd sports fashion plc if it is situated in unstable political environment. Pestel analysis is a strategic tool to analyze the macro environment of the organization. Pestle analysis for employee performance management. This pestel analysis was produced by one of our expert business writers, as a learning aid to help you with your studies. Because of nike s marketing research, the company has decided to revamp its apparel division to be more fashion savvy. This bibliography was generated on cite this for me on wednesday. Despite being one of the largest sport apparel and.
Pestel analysis pest analysis explained with examples b2u. Ebook or pdf edited book email encyclopedia article govt. All of these forces may not be related to business directly but can have a deep influence on it. Pestle analysis is the term used in the context of marketing.
Its headquarter is situated in washington country, oregon, united states of america. This is a pestel analysis of how the brand is affected by these forces which can be political, economic, social, technological or even legal and environmental. Big brands that sell internationally can be subject to some unique forces which impact their sales and profits. Pestle approach, paying particular attention to any human resources management hrm issues that may arise under each heading. As a result of product and pricing research, nike has decided to continue to focus on the high end market while increasing its. Apple pestel analysis involves the analysis of potential impact of these factors on the bottom line and longterm growth prospects. It has been pointed out that among these pestel factors, presently the environmental factors and social factors of business ethics are posing a serious threat to the sustainability of fast fashion model of the fashion industry. The swot analysis of nike discusses the strengths, weaknesses, opportunities and threats of the leading footwear brand nike. The pestle factors, combined with external microenvironmental factors and internal drivers, can be classified as opportunities and threats in a swot analysis. Australia is one of the best countries to live in the world. Having been founded in 1964, nike serves to bring inspiration and innovation to every athlete in the world.
Its headquarter is situated in oregon, united states. Pestle analysis, pestel analysis examples and templates. Pestelpestle analysis political, economic, sociocultural, technological, ecological, legal external factors is in this shoe. A critical analysis of internal and external environment of apple inc usman ali khan faculty of management sciences, qurtuba university, peshawar, pakistan. Pestel analysis of the macroenvironment there are many factors in the macroenvironment that will effect the decisions of the managers of any organisation. The focus should be on the macro environmental factors of nike, as it is an international organization, so consists of political, economics, society, and technology. Pestle analysis of nike pestle analysis refers to all the macroenvironmental factors that are necessary for strategic management. However, one may find difficulty defining what product design is. Swot and pestle analysis of nike nike swot analysis. A pestel analysis examines a target markets political, economic, social, technological, environmental, and legal dimensions in terms of both its current state and possible trends. It is an acronym which when expanded includes six factors when the company is contemplating to launch or upgrade a service or a product. Nike s management analyzes its internal environment and makes decisions based on that analysis. Pdf methods of analysis of the external environment of business.
Pestle analysis of nike macro environmental factors business essay. A critical analysis of apple was done on its corporate governance, corporate social. Tax changes, new laws, trade barriers, demographic change and government policy changes are all examples of macro change. Nike s strategy is to pit six factories against each other and. It is also a powerful country and plays a considerable role in global economy and politics. Pdf introduction nike is an american sportswear company founded in 1972 by bill. Political analysis it is the responsibility of government to create such economic policies, which will have a great effect on the growth of business. Pestel analysis of nikes external environment pestel analysis is a business strategic planning tool that is employed to perform a thorough business macroenvironment analysis so that an organization can determine the best decisions to survive in the market at any instance. Remote work advice from the largest allremote company.
An understanding of the dimensions of pestel helps you better grasp the dimensions on which a target market or industry may be more global or local. Pestle analysis of nike recession economics scribd. Analysis identifying your strengths, weaknesses, opportunities, and threats a swot analysis is a term used to describe a tool that is effective in identifying your strengths and weaknesses, and for examining the opportunities and threats you face. It is that framework or tool with the help of which a company analyze the external forces which can have an impact on the company which in turn will help a company to be prepared for any shock as well as an opportunity which these 6 factors provide. The pestle tool is a powerful technique for analyzing your environment but it should represent just one component of a comprehensive strategic analysis process. This pestle analysis of nike shows they may have a strong brand and healthy finances, but they need to watch out for other growing, cheaper outlets. Pestle analysis the simplest explanation ever pestle analysis the simplest explanation ever pestle analysis is a renowned. Pestel is a strategic analytical tool and the acronym stands for political, economic, social, technological, environmental and legal factors. Pestle and swot are highly effective analysis tools to help you during the process of developing a strategic plan for your business. A pestel analysis or pestle analysis formerly known as pest analysis is a framework or tool used to analyse and monitor the macroenvironmental factors that may have a profound impact on an organisations performance. Supply chains and the efficiency of these chains has been critical to nike. Pdf nikes marketing mix and pestl analysis in vietnam. Pest analysis is a powerful and widely used tool for understanding strategic risk.
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