Nike is an international corporation focused on designing, creating, and promoting high quality athletic wear. When it was first created it was called Blue Ribbon Sports, and then changed its name to Nike in to reflect the values of the Greek god Nike, who is the god of victory. Due to the sheer size of the company, Nike works under a hierarchal system, with the CEO at the top, and then filtering down to all other employees from there. Corporate Nike is based out of Beaverton, OR, but the company has offices across the United States, as well as in 45 different countries.
Lets look at each of these macro-environmental factors in turn. This can include — government policy, political stability or instability in overseas markets, foreign trade policy, tax policy, labour law, environmental law, trade restrictions and so on.
It is clear from the list above that political factors often have an impact on organisations and how they do business.
Organisations need to be able to respond to the current and anticipated future legislation, and adjust their marketing policy accordingly.
Economic Factors Economic factors have a significant impact on how an organisation does business and also how profitable they are. Factors include — economic growth, interest rates, exchange rates, inflation, disposable income of consumers and businesses and so on.
These factors can be further broken down into macro-economical and micro-economical factors. Governments use interest rate control, taxation policy and government expenditure as their main mechanisms they use for this.
Micro-economic factors are all about the way people spend their incomes. This has a large impact on B2C organisations in particular. Social Factors Also known as socio-cultural factors, are the areas that involve the shared belief and attitudes of the population.
These factors include — population growth, age distribution, health consciousness, career attitudes and so on. These factors are of particular interest as they have a direct effect on how marketers understand customers and what drives them.
Technological Factors We all know how fast the technological landscape changes and how this impacts the way we market our products. Technological factors affect marketing and the management thereof in three distinct ways: New ways of producing goods and services New ways of distributing goods and services New ways of communicating with target markets Environmental Factors These factors have only really come to the forefront in the last fifteen years or so.
They have become important due to the increasing scarcity of raw materials, polution targets, doing business as an ethical and sustainable company, carbon footprint targets set by governments this is a good example were one factor could be classes as political and environmental at the same time.
These are just some of the issues marketers are facing within this factor. More and more consumers are demanding that the products they buy are sourced ethically, and if possible from a sustainable source. Legal Factors Legal factors include - health and safety, equal opportunities, advertising standards, consumer rights and laws, product labelling and product safety.
It is clear that companies need to know what is and what is not legal in order to trade successfully. If an organisation trades globally this becomes a very tricky area to get right as each country has its own set of rules and regulations. We hope that you have found the above information useful.A PEST analysis fits into an overall environmental scan as shown in the following diagram: Environmental Scan / \ External Analysis Internal Analysis / \ Macroenvironment.
Microenvironment | P.E.S.T. Political Factors. Political factors include government regulations and legal issues and define both formal and informal rules under which the. It shouldn’t surprise you to hear that, like most massive corporations, Nike also dodges substantial amounts of tax . In recent years, there hasn’t been too much of a crackdown on this, but it’s still valuable to consider.
Also, Nike occasionally meets legal repercussions for its shady marketing practices, which include false discounts . Nike's strong reputation in the footwear and apparel industry? Negative image created by the sponsored athletes (i.e.
Kobe Bryant and his sexual assault case)? Increase in the Price of Raw materials?5/5(1). Marketing Theories – PESTEL Analysis. Visit our Marketing Theories Page to see more of our marketing buzzword busting blogs..
Welcome to our Marketing Theories series.
In this post we will be looking at the PESTEL Analysis in a bit more detail.. A PESTEL analysis is a framework or tool used by marketers to analyse and monitor the macro-environmental (external marketing environment) factors. PEST Analysis is a simple and widely used tool that helps you analyze the Political, Economic, Socio-Cultural, and Technological changes in your business environment.
This helps you understand the "big picture" forces of change that you're exposed to, and, from this, take advantage of . The table below shows how NIKE INC (NKE) fares using the theories of Peter Lynch, Benjamin Graham and other stock-picking legends, based on Validea's interpretation.
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