Case Study

Nike Considered: Getting Traction on Sustainability

Submitted by Group 5

Cruz, Christian
Dimaapi, Allyzza
Esplago, Patricia
Malunes, Jona
Metran, KarrylAndreiana
Serrano, Arc Angel
Valera, Mae
 Nike Considered: Getting Traction on Sustainability

I Viewpoint

VP for Corporate Responsibility, Hannah Jones developed a strategic approach that emphasized
value creation, collaboration with business units and proactive strategic planning. She recognized
that Nike needed to be strategic in its response to its environmental impacts. It is her role to carry
out strategic review with corporate leaders to better understand their overall perception of
Corporate Responsibility.

II Time Context

When video exposing child labor and sweatshops at Nike's factories was exposed on
international television in the early 1990s, it damaged the company's reputation all over the
world. However, Nike has made a concentrated effort to enhance their standing as a globally
recognized corporation as well as their production and commercial procedures since those
gloomy times. A new emphasis on sustainability was one of the ways in which these advances
were made visible.

III Problem Statement

Corporate Responsibility - To create more sustainable products, it needs to collaborate

extensively with external partners.

Environmental Issues - Most Nike products are either made out of cotton or polyester, both of
which can be very polluting.

IV Statement of the Objective

The goal of this case study is to propose that Nike should focus on eliminating toxic ingredients
by choosing materials that are environmentally friendly and recycling the old materials into
something new that will become available for future manufacturing to make their different
products. By doing so, Nike works to produce zero carbon and zero waste for their variety of
products in the future. They also concentrate on improving its production processes and sourcing
methods while designing its products to preserve sustainable development for future generations
and they want a world where everyone can thrive on a healthy planet.
V Areas of Consideration (SWOT Analysis)

Strengths Weaknesses Opportunities Threats

Strong Research and Reputation risk(third- Expansion into new Intense competition
Development party manufacturers) market

Innovative High pricing Focusing more on The proliferation of

Marketing Strategy sustainability counterfeit products

High Product Limited product range Growth in women’s Changing consumer

Quality sports and sportswear preferences

Analysis(SWOT)

Weaknesses Strengths

1. Reputation risk(third-party manufacturers) Strong Security

2. High pricing Innovative Production

3. Limited product range Broad Range of Product

1. Strong Security
 Share, engage, and communicate with manufacturers on a regular basis to
detect, monitor, and reduce hazards more quickly.
 Enhance baseline security criteria with third parties.
 Creating defined organizational roles and duties, as well as risk ownership
and employee requirements.

2. Innovative Production
 Efficient use of raw materials
 Environmental Awareness

3. Broad Range of Product

 Open a new product line
 Enhance product features

Threats Opportunities
 1.Intense Competition Strong Adaptability

2.The proliferation of counterfeit products Improving Global Campaigns

1. Strong Adaptability
 Trend Awareness
 Fashion Forecasting
 New product development strategy

1. Improving Global Campaigns

 Enhance Government Support
 Innovative Brand Awareness Campaigns

VI Assumptions

Competition pushes one competitor to thrive its best when it comes to change. It is best
assumed that when it comes to environmental impacts, Adidas is presently ahead of Nike in the
competition to be the more environmentally friendly sportswear firm, despite Nike having a
higher yearly revenue and more well-known corporate reputation.

However, there is still work to be done for both Adidas and Nike to be sustainable. It is
obvious that much more work and transparency are needed. Nike has occasionally erred on the
side of greenwashing.

Inefficient value chain partners and limited tools in which Nike is depending on a specific
value chain partner, which shows that they rely on their product based on the capacity of their
chosen partners in business. As the information provided, that Nike was lack of tools in order to
produce their products the reason they are having value chain partners, but this should make the
best decision to whom they were working are efficient and effectively match on creating the
product. As stated in the example from Nike, that the Spring 2009 Zoom Start running shoe was
produced from a water-based cement bonding that is not expertise in those fields. This will affect
the customer satisfaction wherein the organization will be affected too.

VII Alternative Courses of Actions (ACAs)

Alternative Courses of Actions

Adopting new technologies Zero-waste practices Improving the present

and materials for the
product’s Promotional and
sustainability of the
Advertising campaign
products.

Nike should invest on R&D to
enhance its manufacturing
procedures and lessen its
environmental impact. By
doing this, Nike would be able
to offer its clients top-notch
goods while lowering its
reliance on oil and fossil
resources. Nike ought to look
into brand-new renewable
energy options like wind and
solar energy. It ought to work
on creating more
environmentally friendly
packaging and materials.
Nike wants a world where
everyone can thrive on a
healthy planet. To achieve it,
they are taking a stand for a
climate action through
MOVE TO ZERO, their
journey towards a zero
carbon, zero waste future.
They are committed to taking
a leadership role and working
collaboratively with others
across industry
There may seem to be a
limitless number of
possibilities available when
it comes to marketing a new
good or service for your
company. Determining
where to begin and which
promotion strategies will
produce the best results can
be challenging. However, as
trusted brand, it will be easy
for the company to promote
their products when it comes
to new design.

VIII Analysis of ACA

Alternative Course of Advantages Disadvantages

Action
Adopting new technologies • Nike can give their
and materials for the customers high-end quality to
sustainability of the products. all their products while
reducing its reliance on oil
and fossil fuels.
• It helps to develop
more sustainable materials
and packaging for all
products that will be
produced in the future.
• It is eco-friendly since
it will help to lessen the
carbon emissions.
Zero-waste practices • Instead of all the
waste being directed to
landfill, it could be
advantageous as Nike will use
this in order to formulate or
create a new product line or
inventory to eliminate it. This
• It requires a lot of
resources that can be
expensive or a large cost
involved.
• It will increase the
dependency on technology
which can cause the
employees to lose their jobs.
• Nike cannot control
the quality if it has faults or
flaws that can cause it to stop
production or the operation of
the business.
• Changes in the
process of production will
happen.
• Less durability, as the
materials are limited only on
the specific needs of the
product.
 will mean that all the waste • Employees are
should be useful. It could also required to make an effort in
help to recycle the waste in order to create the product in
order to utilize it. an effective and efficient
• In the Nike production approach that would avoid the
process, there might be a mistake or error in the
chance that the product process.
prototype will have a major
adjustment which could cause
another waste. In zero waste
practices, they will need to
have an efficient and effective
strategy to have major
adjustment or error in
process, which gives them
advantage as every process of
the finished product will be
available for sale.
• Reducing the
materials needed. An
advantage of this, it is wiser
to lessen that waste that will
consume. It is eliminating all
the excess materials that do
not contribute much to the
finished product.
Improving the present • Consumers will easily • Making contracts with
product’s Promotional and recognize and remember the international artists and
Advertising campaign product. It will also help them athletes is expensive.
differentiate Nike’s product • Higher cost that leads
from others. to increase in price of the
• It attracts customers to product.
buy Nike’s products. • It might not be able to
• The company will change the consumer's
increase its revenue. perception.

IX Conclusion (Decision matrix, ACA Selection)

Brief Description of Criteria:

1. Effectiveness - the proposed alternative courses of action’s result is successful and

sustains the product’s quality.
2. Availability of Capital Needed - the company has enough funds and budget to
implement the suggested alternative courses of action.
 3. Profitability - the alternative courses of action can meet the expected revenue.

Criteria ACA1 ACA2 ACA3

1.Effectiveness 9 8 9

2.Availability of Capital Needed 9 8 7

3.Profitability 10 8 8

TOTAL 28 24 24

After evaluating the Alternative Courses of Action, it is possible to determine that the
company's best course of action is to employ ACA1. It was granted the highest marks in terms of
the assessment scale in the criterion of 'Effectiveness' since it is the one who has a direct answer
to a problem of sustainability. It differs from other alternative activities in that the technologies
take a larger percentage of the effort in making the product and the new materials to be used are
the ones who will solve the problem with toxic materials. The next criterion is 'availability of
capital need,' which is the most readily available owing to the fact that most companies are
prepared in terms of technological progress, thus it is obvious that the company has its budget
component in terms of technologies, which are intended to be an asset of the company.
Furthermore, unlike ACA2 and ACA3, which involve a lengthy crediting procedure, it is likely
to be difficult to adequately finance it. Concerning the last criterion, Profitability, it is obvious
that the more technical development the firm has, the more output it can work, and the more
output it can work, the more profit it will bring along with the new substance of manufacturing
the product, causing the company to become more well-known.
 X Plan of Actions

Start Date: 14/10/2023

week 1 week 2 week 3 week 4

oct oct oct nov

Assigned to: Status:
sat sun mon tue wed thu fri sat sun mon tue wed thu fri sat sun mon tue wed thu fri sat sun mon tue wed thu fri

14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 1 2 3 4 5 6 7 8 9 10

planning for new technologies

and materials to be used for planning completed
sustainability of the product

creating new products using

the new technologies and creating new products from the new materials creating new products from the new materials completed
materials

developing more sustainable

developing more sustainable matrials developing more sustainable matrials developing more sustainable matrials in progress
materials and packaging

launching of new developed

products using the new Launching of new products in progress
technologies and materials

This figure explains the plan of action for adopting new technologies and materials for the
sustainability of the products; it shows that on the first week of the month of October that we will
going to plan for the new technologies and materials, on the first and second week we will going
to create the planned materials for the sustainability of the products, on the second week up until
the fourth week we will going to develop more sustainable materials and packaging and lastly for
the third and fourth week will be the launching of the new product using the new technologies
and materials.