Case Analysis: Hitting the Wall: Nike and International Labor Practice

Problem Identification Established in the early 70s Nike, Inc., ground in Beaverton, Oregon, USA approach a severe germinate of criticism and experienced emergence problems concerning their plants and employee treatment, mainly in Indonesia and Vietnam in 1988. Rising demand for Nike harvest-homes, which close to doub lead within a short period of time, led the community and its 350+ subcontractors to raise the exertion level. Series of labor problems and handle such as threepenny labor wages, poor works conditions, health and safety issues and small workers exploitation, were the main issues Nike had to buy with. Furthermore, Nike, Inc. had to deal with managing the diversity of cultures and language barriers had to be overcome, while still be able to produce the high-quality product Nike is famous for. Throughout the 1990s Phil Knight, chief operating officer of Nike, Inc. and the company itself lost their superb corporate image in the inwardness of the world and it be came an international incident. Causes of Problem After establishing a put forward in the world, Phil Knight, decided to manufacture Nikes apparel in conspiracy Korea and Taiwan, and by 1982 already 86% of Nikes sneakers came from these two countries.

Realizing that Asian countries wish well Indonesia, Vietnam and chinaware provide cheaper labor cost, better government take for and high profit, Nike moved their production lines there, with Indonesia becoming an important location. In 1991, the passing(a) minimum wage was barely $1 in Indonesia, compared to a typical daily wage of $24.40 in South Korea and a US hourly wage of about $8 in athletic shoe ma! nufacturing. Even that the Indonesian government brocaded the minimum wage from 2,100 Rupiah ($1.00/day) to 2,500 Rupiah ($1.25/day), the new wage was still underneath the workers living expenses. In 1992, these issues went outside of Indonesia and even hit punk D.C., when President Clinton introduced... If you want to get a full essay, methodicalness it on our website: BestEssayCheap.com

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