Manufacturing Network and Global Economy: Nike Inc. is the parent company of numerous subsidiaries and is imbedded in an intricate global manufacturing network. Additionally, Nike relies heavily on the global economy to succeed.
Management: Since its conception in 1964, Phil Knight has held close control of the company and “ruled with a mix of closely allied senior managers,” according to a business report entitled “Channel Conflict.” Nike management has also gone to tremendous lengths to identify with competition and victory. Management wants to be in complete control; however, this is not always a positive in the eyes of stakeholders and could threaten its reputation.
Internet Boom: An Internet search with the phrase “anti-Nike” showed thousands of links to anti-Nike Web sites appear. With the click of a mouse, anyone without any accreditation or legitimacy can post anti-Nike sentiment or have access to anti-Nike material. This has made it easier for activists to express their negative opinions of Nike and is making it harder for Nike to overcome some of its less flattering reputations.
Lawsuits: Nike has been involved in many lawsuits that also threaten its reputation. Most recently, the United States Court of Appeals for the Second Circuit affirmed the dismissal of a case against Nike and St. Johns University by a Mr. Keady. According to a report by Vada Manager, Director, Global Issues Management, “Mr. Keady had made numerous attempts to discredit Nike’s considerable efforts at improving conditions in the factories and communities around the world where our products are made.” Although Nike won the lawsuit, Keady’s efforts, and others like them, to discredit Nike pose a threat to the strides it has made in the way it does business.