International Human Resource Management

GROUP PROJECTPRESENTATION

Nike in Korean

Lecture: TS Mai Anh

Module Code: INS 3023 04

Prepare by group 8

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 Table of contribution

Full name Student ID Contribution level

Nguyen Thi Huong 20070208 100%

Le Dieu Linh 20070221 100%

Le Quynh Mai 20070245 100%

Nguyen Thi Thu Huyen 20070201 100%

Pham Viet Phuong 21070041 100%

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 Table of Contents

I. Introduction.................................................................................................4
II. Overview about company.........................................................................4
1. History of Nike............................................................................................4
2. Mission & Vision........................................................................................5
III. PESTLE Model (are there any specific factors currently impacting
this MNE’s HRM?).........................................................................................6
IV. Human Resource System.......................................................................14
4.1. Staffing, Recruitment and Selection......................................................14
4.2. International Training, Development and Careers.................................20
4.3. Reward Administration,.........................................................................23
V. Conclusion................................................................................................24
VI. References...............................................................................................24

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I. Introduction
Group 8 has 5 members, and our focus today is investigating Nike's three primary human
resource difficulties in the Korean sector. Nike, Inc. is a multinational corporation based
in the United States that is involved in the design, development, manufacture, and global
marketing and sales of clothes, footwear, accessories, equipment, and services. The
company's global headquarters are in the Portland metropolitan region (USA), in
Beaverton, Oregon. It is a significant sports equipment producer and one of the world's
top providers of athletic shoes and gear. In Korea, Nike has just launched its latest retail
concept, Nike Style, with the first shop opening in the country, with more to come in the
worldwide market.

II. Overview about company

1. History of Nike

Nike is a global corporation headquartered in BEAVERTON, Oregon. Bill Bowerman

and Phil Knight founded BLUE RIBBON SPORTS (BRS) on January 25, 1964. BRS has
sold 1,300 pairs of Japanese running shoes in one year, earning 8,000 USD. By 1965, the
firm had hired its first full-time employee and its income had surpassed $20,000. BRS
built its first retail store at 3107 Pico Avenue in Santa Monica, California, in 1966.

The name was officially changed to NIKE (Greek for goddess of freedom) on January 18,
1971, with the swoosh logo (wings of the goddess) drawn by Carolyn Davidason and
costing only $35 USD. NIKE registered the copyright on January 22, 1974.

Furthermore, the shop Daniel Heaf, Vice President of Nike Direct, said why it is always a
"priority" to choose Seoul as the location for the first concept stores: purchasing power
for premium services. Korea's class and luxury items are essentially indistinguishable
from those of other big countries. Koreans have an incredible affinity for luxury items,

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which is why high-end companies have lately adjusted their business model, opting to
create branches in Korea rather than relying on imports or domestic distributors as in the
past.

2. Mission & Vision

Aspect Details & Analysis

Vision Details: “To bring inspiration and innovation to every athlete in the
world.”
Analysis:
- Emphasizes inspiration and innovation as core values.
- Inclusive vision defines “every athlete” globally, extending
beyond professionals.

Mission Details: “To do everything possible to expand human potential. We do

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 that by creating groundbreaking sports innovations, by making our
products more sustainable, by building a creative and diverse global
team, and by making a positive impact in communities where we live
and work.”
Analysis:
- Comprehensive mission encompassing various facets of Nike’s
approach.
- Focus areas include innovation, sustainability, diversity, and
community impact

III. PESTLE Model (are there any specific factors currently impacting
this MNE’s HRM?)

PESTLE Score Percentage Assessment

Political Factor 2/10 20% - Positive factors:

● Free trade agreements: South Korea
has signed free trade agreements
with a number of countries, including
the United States, China, and the
European Union. These agreements
reduce tariffs and other barriers to
trade, which can benefit Nike by
lowering the cost of importing goods
and services into Korea.
● Government support for foreign
investment: The South Korean

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 government has implemented a
number of policies to attract foreign
investment, such as providing tax
breaks and subsidies. These policies
can make it easier for Nike to invest
in its operations in Korea.
- Negative factors:
● Instability on the Korean Peninsula:
The Korean Peninsula is still
technically at war, and there is a risk
that tensions between North Korea
and South Korea could escalate. This
could disrupt Nike's supply chain and
operations in Korea.
● Trade disputes: South Korea has
been involved in a number of trade
disputes with its major trading
partners, such as China and the
United States. These disputes can
lead to tariffs and other trade
barriers, which can increase Nike's
costs of doing business in Korea.

Economic 3 30% - Positive factors:

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 ● According to preliminary data from
the BoK, South Korea's Gross
Domestic Product (GDP) in the third
quarter grew by 0.6 percent from the
previous quarter.The BoK forecasts
that for the whole year, South
Korea's economic growth will be at
1.4 percent.This economic growth
will create new opportunities for
Nike, as it will increase consumer
spending and demand for Nike
products. This growth can translate
into opportunities for Nike to expand
its operations, hire more employees,
and invest in employee development
programs.
● Increasing disposable incomes:
South Koreans are increasingly
affluent, with disposable incomes
rising steadily in recent years. This
will allow consumers to spend more
money on discretionary items, such
as Nike products. This can lead to
increased sales, revenue growth, and
profitability for Nike, enabling the

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 company to allocate more resources
towards HR initiatives.

- Negative factors:
● High level of household debt: South
Korean households have a high level
of debt, which could make them
more vulnerable to economic shocks.
If the economy were to slow down,
households might have to cut back
on their spending, which could hurt
Nike's sales.
● South Korea's economy is facing
growing uncertainties related to
continued monetary tightening by
major countries including the United
States. Along with that are escalating
geopolitical tensions, the slowdown
of the economy of China, its top
trading partner.

Technology 2 20% - E-commerce: E-commerce is growing

rapidly in South Korea, and this has
presented Nike with new opportunities to
sell its products. Nike has invested

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 heavily in its e-commerce platform, and
this has helped it to reach a wider
audience of consumers. The company
has its own online store in Korea, and it
also sells its products through major e-
commerce platforms such as Coupang
and G market.
- Social media: Social media is another
important channel for Nike to connect
with consumers in South Korea. Nike
uses social media to promote its
products, communicate with customers,
and build brand awareness.
- Supply chain technology: Nike is
constantly investing in new technologies
to improve its supply chain. This has
helped the company to reduce costs,
improve efficiency, and get products to
market faster.

Social 1 - Health and wellness: South Koreans are

increasingly concerned about their health
and wellness, which has led to an
increased interest in sports and fitness.
This has been beneficial for Nike, as it
has created a strong demand for its

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 products.
- Growing emphasis on diversity and
inclusion: South Korea is becoming
more diverse, and Nike is committed to
creating a workplace that is inclusive of
all employees. This is reflected in the
company's diversity and inclusion
initiatives.

Legal 1 10% - Labor laws: South Korea has strict labor

laws, which can be challenging for Nike
to comply with. The company has been
accused of violating labor laws in the
past, and this has damaged its reputation
- South Korea has a strong legal system
that protects intellectual property rights.
This is a positive factor for Nike, as it
helps to protect the company's valuable
trademarks and designs.
- The South Korean government also has a
number of regulations in place that
protect consumers. This can be a
challenge for Nike to comply with, but it
also helps to ensure that the company is
providing safe and high-quality products
to its customers.

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Environment 1 10% - Sustainability: Nike is committed to
sustainability, and it has made significant
progress in reducing its environmental
impact. Example: Nike has set a goal to
reduce its greenhouse gas emissions by
70% by 2050. To achieve this goal, Nike
has implemented a number of initiatives,
such as using renewable energy sources
and reducing its packaging waste. These
initiatives have impacted Nike's HRM
practices by creating new job
opportunities in areas such as
sustainability and environmental
engineering.
- Waste reduction: Nike is also committed
to reducing its waste, and it has
implemented a number of initiatives to
achieve this goal. The company is also
working to recycle and reuse materials.
- Environmental regulations: South Korea
has strict environmental regulations, and
Nike must comply with these
regulations. The company has been
working to improve its environmental
performance, and it is committed to

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 being a responsible corporate citizen.

In conclusion, Nike in Korea is facing many unique factors affecting its Human
Resources Management (HRM). One of the most positive factors is economic
growth, with South Korea's GDP increasing by 0.6% in the third quarter. This
creates opportunities for Nike to expand operations, strengthen staff and invest in
growth. staff development.

However, high debt levels among Korean households could create concerns about
reduced spending, which could negatively affect Nike's sales and staffing
strategies. In addition, political factors also play an important role. South Korea is
still in a state of technical war and challenges from the conflict between North and
South Korea. This instability could lead to disruptions in Nike's supply chain and
operations in Korea. At the same time, trade disputes with important partners such
as China and the US could create tariffs and trade barriers, increasing Nike's
business costs in Korea.

Technological and social factors also contribute to how Nike manages HRM in
Korea. The strong growth of e-commerce brings new opportunities for Nike to
reach many audiences. Strong use of social media has also helped Nike establish
and maintain brand awareness among Korean consumers. Advances in supply
chain technology help Nike reduce costs, increase efficiency and get products to
market quickly.
=> The economic factor is the most important factor affecting Nike's HRM in
Korea. This is because the economy has a direct impact on Nike's sales,
profitability, and ability to invest in its HR practices.

A strong economy leads to higher disposable incomes, which means that South
Korean consumers have more money to spend on discretionary items such as Nike
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products. This can lead to increased sales and revenue for Nike, which can then be
used to invest in employee development programs, training, and benefits.

IV. Human Resource System

4.1 Staffing, Recruitment and Selection

a. Staff
Commitment is a priority. At Nike, we always believe that although there is no
finish line, there is always a clear line. Nike's Code of Conduct (Code) and Code of
Leadership Standards (CLS) set minimum standards that ensure that all Nike
employees are treated fairly and effectively.
● At Nike, we always ensure safety so that employees feel safe when working
at Nike, specifically
○ Safe working environment
○ Hostels, canteens and childcare facilities must be healthy and safe.
The building is fit for purpose
○ Have fire & emergency response action plans
○ Hazards to health and occupational hygiene are controlled
● Fair
○ Zero tolerance for harassment and abuse at Nike
○ Working hours must be reasonable. Bonuses and benefits are paid on
time to employees at Nike
○ Provide regular jobs
○ At Nike, every person should have equal employment opportunities.
An individual’s race, gender, age, religion, national origin, social or
economic status has no impact on the individual’s opportunities
● Respected at Nike

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 ○ Work on a voluntary basis
○ Minimum working age is 16
○ Nike cannot discriminate
○ Nike always respects freedom of association and collective bargaining
To sum up, Nike is known for its commitment to diversity and inclusion, respect
and equality for all employees working in Korea. In Korea, this requires efforts to
ensure a diverse workforce that respects local cultural nuances. Strategies may
include targeted recruitment initiatives, partnerships with local organizations and
creating an inclusive workplace culture.

b. Recruitment and Selection

❖ Recruitment:

Form Describe Detail Advantage Quantity

Internal This Education Because we are 100

recruitment organization is qualification; working
committed to skills; internally, we can
providing its experience easily evaluate
workers with Job profile many aspects.
possibilities for Last date of These are loyalty,
professional receiving ability, attitude as
development, application well as working
therefore when a Contact person spirit.
need arises, in HR - Significant cost
internal hiring is savings compared
the method of to other forms of

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 choice. Initially human resources
filling the post is recruitment.
an option for any Because the
vacancy that company does not
occurs below spend any budget
level. HR posts a to attract
commercial on candidates.
the internet. - Much shorter
preparation and
interview time.
- Candidates also
do not have to go
through a period
of getting
acquainted and
integrating with
the
environment/cultu
re.
- Minimize job
turnover, also
known as brain
drain in the
business.

External Nike recruits - Post job Candidates are 500

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recruitment themselves description people who have
through different information their own
channels to through equipment and
recruit channels: knowledge and
candidates, filter candidates goals for the job
candidates and walking in/ they will
select sending their undertake.
candidates. CVs directly, Change the
job portals, quality of the
consultants, enterprise's
campus existing labor
recruitment When starting an
- Receive organization,
applications. these people often
- Interview. have completely
- Evaluation new perspectives
and selection. on the
- Make organization and
recruitment work. Can
decisions. evaluate and carry
out work in its
own direction.

Through This recruitment Workshop, This approach 300

the training method relies on seminar. helps Nike access
center businesses' links and select a

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 with colleges workforce with a
and universities. lot of youth and
This method dynamism and
helps businesses creativity in their
promote their work.
brands to
students.
Recruiting
personnel for
positions:
recruiting
interns,
apprentices or
working as
source
personnel. There
is an abundant
human resource
for the future.

Total 900

❖ Selection
Nike selected from 900 applicants to produce the final 350 candidates who will
work at Nike. The candidates qualifying the %/ CGPA criteria are considered for
the selection rounds as follow:
● Test: 15%

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 ● Background check: 15%
● Group discussion and competition: 20%
● Interview: 50%
○ Situation-based interviews: 20%
○ Interview with rational questions: 15%
○ Pressure interview: 15%

c. Drawbacks & Recommendation

Drawbacks of recruitment and selection:
● Lack of emphasis on cultural fit in the selection process may result in
difficulties integrating new hires into the Korean work culture.
● The capacity of the selected person has not been accurately determined.
● Have to spend a large amount of money on the recruitment process.
● New employees are often not guaranteed long-term commitment.
Recommendation
● Incorporate cultural fit assessments into the selection process.
● Establish strategic partnerships with local educational institutions to nurture
a talent pipeline.
● Localized Recruitment Strategies: Develop and implement recruitment
strategies that are tailored to the Korean market, considering cultural
nuances and preferences.
● Continuous Training: Provide ongoing training for recruiters and hiring
managers on local labor laws, cultural sensitivities, and best practices in
staffing. When conducting business in the host nation, top level management
should be aware of the cross-cultural challenges with their values, beliefs,
and presumptions.

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 ● Feedback Mechanism: Establish a feedback mechanism with hired
employees to assess the effectiveness of the recruitment and selection
process and make continuous improvements.

4.2. International Training, Development and Careers

a, Employee training and development

The Nike company in Korea has numerous types of training for their employees, but
these are some main training sessions that are the most crucial.
- Onboarding and Orientation
Onboarding and orientation sessions frequently mark the start of employee
training. This involves acquainting new hires with Nike's policies, procedures,
culture, and values. It might go over things like expectations, organizational structure,
and company history.
- Product and Industry Knowledge
Given Nike's emphasis on athletic clothing, equipment, and footwear, product
knowledge sessions may be included in employee training. Employees gain a better
understanding of Nike's product line, features, benefits, and target market through
this training. To guarantee that staff members are knowledgeable about the sports and
fitness sector, training may also include competitor analysis, market insights, and
industry trends.
- Sales and Customer Service Training
Nike may offer training on successful sales strategies, customer engagement, and
fostering long-lasting customer relationships to staff members working in sales and
customer service positions. Employees that receive this training are better able to serve
customers and effectively market the company's products.
- Compliance and Ethics Training
Nike might offer instruction on adhering to rules set forth by the law, industry
conventions, and moral principles. This covers things like responsible sourcing,

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workplace safety, anti-discrimination laws, and confidentiality. Employees who
receive training in these areas are more likely to understand their roles and uphold the
moral standards of the organization.
- Leadership Development
To prepare upcoming leaders within the company, Nike may provide leadership
development programs. The development of leadership abilities, strategic thinking,
decision-making, and team management are the main goals of these programs.
Employees who receive leadership training may advance within the organization
and assume more responsibility.
- Continuous Learning
Apart from official training courses, Nike might promote a culture of lifelong
learning and career advancement. This can involve giving people access to
conferences, workshops, seminars, and online learning materials, as well as
mentoring programs. The intention is to support employees' career growth and cultivate
a learning mindset.

b. Careers
Generally speaking, the employee training division is vital to any company, Nike
included. Recruitment, talent development, training, pay and benefits, employee
relations, and organizational culture are just a few of the facets of the employee lifecycle
that they oversee.
- Recruitment and Talent Acquisition
The Human Resources division seeks to draw in and employ the best candidates in
the business. They concentrate on locating people who possess the abilities, know-
how, and cultural fit needed for Nike's activities in Korea. Building a talented and
diverse workforce that can support the company's success is the goal.
- Employee Engagement and Satisfaction
Nike is probably going to give priority to goals pertaining to job satisfaction and
employee engagement. This entails establishing a productive workplace, developing a
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solid corporate culture, and advocating for work-life balance. Ensuring that staff
members feel appreciated, inspired, and a part of the company is the aim.
- Diversity and Inclusion
Goals pertaining to establishing an inclusive workplace are probably also
important, considering Nike's dedication to diversity and inclusion. This could entail
encouraging diversity in recruiting procedures, offering equal chances for
professional advancement, and cultivating a polite, inclusive workplace where all
staff members are made to feel appreciated and welcomed.

C. Drawback & Recommendation

● Drawbacks
- Cultural Differences
Dealing with cultural differences can be difficult when operating in a foreign market
such as Korea. These variations may have an effect on consumer preferences,
decision-making procedures, and communication. An inability to comprehend or
adjust to the local way of life can impede efficient operations and customer involvement.
- Local competition
The Korean market might face formidable regional rivals possessing extensive
industry expertise and well-established brand allegiance. It can be difficult to
compete with these regional players, particularly if Nike's reputation and brand
recognition aren't as strong in the Korean market.
- Regulatory Compliance
When conducting business in a foreign market, it can be challenging to comply with
local laws, regulations, and compliance requirements. Keeping up with labor laws,
trade restrictions, and intellectual property rights can be difficult and need
specialized knowledge and resources.
● Recommendations
- Cultural Competence

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Gain a thorough awareness of Korean customs, values, and consumer preferences. Invest
in local talent or train staff members in cultural sensitivity to guarantee efficient decision-
making, communication, and customer involvement.
- Compliance Management
Organize a committed group or consult legal advice to guarantee adherence to regional
statutes, ordinances, and labor policies. Keep abreast of regulatory changes and continue
to conduct business in an ethical and transparent manner.
- Language Support
Invest in employee language training programs to help them become more fluent in
Korean. Improved customer relations, internal communication, and marketing initiatives
can all benefit from this.

4.3. Reward Administration,

a. Reward Administration
At Nike Korea, employees receive remuneration commensurate with their ability and
working capacity through consideration and evaluation of work results and effective
contributions to the department as well as to the Nike corporation.

The company builds a flexible salary system to create conditions for all Nike members to
always have the opportunity to assert their abilities without limiting working time or
limits on position or rank. The viewpoint of salary and benefits for members is the
effectiveness of work and loyalty to the company. The annual evaluation of work results
to consider salary increases for members from the professional staff level and supervisor
level upwards is based on the achievements of each person. Nike uses a salary policy to
pay employees a basic salary (including taxes and insurance). Nike always brings
prosperity and stability to all employees, through constantly searching, reviewing and
developing welfare policies to help employees feel secure when working at Nike. In
addition to salary policy, Nike also focuses on building allowance and welfare policies to
support its employees.
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 b. Drawback & Recommendation
● Drawback
Currently, Nike only considers salary increases once a year and is based on employee
performance, which does not motivate employees. Therefore, it is proposed to add
criteria for considering periodic salary increases, including criteria for seniority and
working results to ensure that all employees receive annual increases, adding the form of
unexpected salary increases based on contributions, work achievements to stimulate
employees to strive to work, creating a difference with other employees.
● Recommendation
In addition to the current benefits specifically for employees, Nike Korea needs to have
benefits for employees' relatives. This is one of the points that many businesses do not
pay attention to but has extremely important value in attracting talented people. For
talented people, in addition to material value, spiritual value is extremely important.
Therefore, to attract and retain them, businesses need to show their importance
care not only about themselves but also about their families. That helps employees feel
satisfied and feel secure in contributing to the company

V. Conclusion

Human resources are always considered a factor in the success of businesses. A business
has modern technology, quality, good services, and solid infrastructure, but if it lacks a
workforce, it will be difficult for that business to survive long term and build a
competitive position. Nike is a multinational corporation, operating in many fields with
many employees around the world, including Korea, but they still have good governance,
bringing efficiency in business. They have appropriate policies to retain good employees
- an invaluable asset that every organization wants to have. And it's important to have
successful strategies to motivate and give employees opportunities to express their full
potential.

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VI. References

- www.linkedin.com. (n.d.). My First Three Months At Nike. [online] Available at:

https://www.linkedin.com/pulse/my-first-three-months-nike-aline-kasliner/ [Accessed 26
Nov. 2023].

- Nike Company (2023). ABOUT US. [online] NIKE COMPANY. Available at:
https://nikecompanyblog.wordpress.com/about-us/.

-‌ O'Reilly, Lara (November 4, 2014). "11 Things Hardly Anyone Knows About Nike".
Business Insider. Retrieved January 26, 2020.

- Fundinguniverse.com. (2012). History of NIKE, Inc. – FundingUniverse. [online]

Available at: http://www.fundinguniverse.com/company-histories/nike-inc-history/.

- Nike (2023). Our Mission. [online] Nike.com. Available at:

https://about.nike.com/en.

- Studentshare. (2016). Nike (Training and Development) Research Paper Example |

Topics and Well Written Essays - 1000 words. [online] Available at:
https://studentshare.org/human-resources/1497127-nike-training-and-development
- Anon, (2022). Leadership and Management Program in Nike | Free Essay Examples.
[online] Available at: https://samples.freshessays.com/leadership-and-management-
program-in-nike.html.

- Quora. (n.d.). What are the disadvantages of Nike’s marketing strategy? [online]
Available at: https://www.quora.com/What-are-the-disadvantages-of-Nikes-marketing-
strategy.

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