Business Management Essay example

2749 Words Nov 4th, 2014 11 Pages
Nike is one of the famous franchises in the world that sells sportswear for all ages. But is mostly famous for their athlete shoes and apparel and Nike is also one of the major manufacturers of sport equipment as well. The slogan for Nike is “Just Do It”. Nike was founded in January 1962 in Oregon, United States by Philip Knight and Bill Bowerman. Nike has somewhere around 700 or more retail outlets spread all over the world, and has approximately 45 offices only outside the United States. And it employs 30,000 people all over the world. Nike had a revenue excess of $16 billion in 2007. Nike’s factories are mostly located in Asian countries like Pakistan, India, Malaysia, China, Indonesia, Philippines, Taiwan, Vietnam and Thailand. In 1980 …show more content…
From these the active stakeholders would be the employees, investors and the shareholders, whereas the passive stakeholders would be the customers and the customers want to get high dividends for their investment. (Stockdale & Crosby, 2004)

The secondary stakeholders of the company would be the community (which includes special interest groups). Most companies like Nike exit under only a charter and licenses and operate within the limits of safety laws, environmental protection and other laws and regulations. The socially responsible organizations like Nike consider the effect of their actions upon all stakeholders. What all of these want from the company is that company is ethically and socially responsible and when this secondary stakeholder group becomes dissatisfied, the reputation of the company gets tarnished (for example, the debate of sweatshops tarnished the reputation of Nike).

What the stakeholders want from the company is that they want their needs to be maximizing their value in the company. For example, if both the customers and the employees along with the stockholder interests are addressed then both of the groups will benefit from the sales of the company.

Legal Analysis
Legal responsibility defines what the society thinks is important with the respect appropriate behavior. The companies are expected to fulfill their economic goals within the legal framework. Legal…

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