Professional Documents
Culture Documents
stage, meaning outside their main country of induction and successfully sustain
improvements in profit and real output. This can be important for firms who would
want to produce in the most competitive countries in order to gain from efficiencies and
cheaper production .
Nike may reduce wages. Wages are the most expensive cost of production and are likely to
reduce the international competitiveness of an firm. Nike's production plants are mostly in
the Asian countries like Vietnam, China and Malaysia because of high
unemployment in these areas therefore meaning unskilled and skilled labour comes at a
very cheap price for longer hours because countries like Vietnam do not have a minimum
required labour hours . Most production plants in the USA the original
country of production of the Nike brand are really expensive because people there have a a
higher level of education therefore they are not willing to work for the minimum wage and
want benefits that are really expensive like medical sick days off,
a minimum 3 day leave in a month but however when Nike persued international
production labour came a at very cheap price with no minimum work hours and without
any additional costs of worker benefits. In the long run Nike may invest in
Vietnam came a at very cheap price with no minimum work hours and without any
additional costs of worker benefits. In the long run Nike may invest in Vietnam labour by
offering training to existing workers in order to increase efficiency
Rationalization output to get rid of high cost plants. Rationalization is the reorganization of
a company in order to increase its operating efficiency. This sort of reorganization may lead
to an increase in production . One popular method of rationalizing
output is using the kaizen method of production where all production is done on a straight
line so its easy to go from point A to point B in production therefore reducing costs of
moving from one place of production to another haphazardly .
the same period. The rapid evolution of transport innovation and technology such as
China’s high-speed bullet train has led to enhanced comfort and safety and lower costs of
transportation of Nike products to be transported all over the Asian country.
Information technology can boost growth in companies of all sizes. An investment in new
technology can result in reduced costs and improved profitability. Keep up to date with the
latest developments in information systems and communications
technology and choose the ones that are right for you. Effective business technology
management can make all the difference.Nike may introduce a computed system of making
their shoes this capital investment will lead to an lower costs as
mentioned due to cutting the amount of people employed and putting machines in their
place and since machines do not tire they can work all day without any problem of the
International Labour Organisation who are concerned with the
In conclusion international competitiveness these all ways that Nike can use to persue
international competitiveness there even though many may argue that there are not
benefiting the host country in terms of low wages or unfair long hours, but
some ILO laws have helped residents of the host country to have fair labour treatment