-: INSTITUTE NAME:N.R.

Institute of Business Management

-: SUBJECT:
Strategic Management

-: MBA:SEM 3

-: ACADEMIC YEAR:2011-2013

-: SUBMITTED BY: PIYUSH FEFAR (117350592175)

-: SUBMITED TO:PROF. ANITA

VISION
To become a leader in ceramic industry. To uphold quality at every stage and maintain consistency to win the Trust of our Valued Customers worldwide.

OUR VALUES

Quality in every thing we do. Exceed customers expectations. Trust, respect and integrity in all of our relationships. Continuous improvements, innovations and embrace change Team work and open communication. To foster an environment to enable the staff to exhibit excellence in work.

To create a safe, productive and rewarding work environment. To build a high performing, diverse work force. To promote the responsible consumption of our products. To Preserve and protect an environment and Support communities where we do business.

PEST ANALYSIS

POLITICAL It deals with governmental policies which has a great influence to the economics in a country. It is a macro aspect to analyze which key changes to the policies making. The policies have great influence to the business sectors and confidence of investors. Example: Reduction in import duty of floor tiles for ceramic industry can have its fair share of influence to the industry. It is viewed as positive to the local ceramic manufacturer as imported tiles are more costly. However, it is negative impact to an importers such as traders of such a product.

ECONOMIC The economic is an area in a macroeconomic environment. It can affect the business outlook and its competitiveness. Some key factors of macroeconomic are economic growth, exchange rate, interest rate, etc, All these factors have an effect to the profitability and cost of doing business in that business sector. Example: unstable bank interest rate affect the stability to the cost of a business and it can view as an Opportunities and / or Threats to do business.

SOCIAL Social factors reflect the cultural aspects of a population in the country. It affect the workforce management which influence the productivity and cost of a business. Example: Job preference from heavy to light industry changes the skill developed by any company TECHNOLOGICAL Technological factors are visible and can be validated easily as it is more tangible. It can be in a form of incentives by the government such as such as Research & Development incentives, automation reinvestment, and high capital setup.

VISION To carry on his legacy of innovative thinking, whether to develop products that help athletes of every level of ability reach their potential, or to create business opportunities that set Nike apart from the competition and provide value for our shareholders.

MISSION To bring inspiration and innovation to every athlete in the world.

PEST ANALYSIS

POLITICAL The government must create economic policies that will foster the growth of businesses. Nike, fortunately, has been helped by the US policies which enable it to advance its products. The support accorded to Nike by the US government, particularly in the general macroeconomic stability, low interest rates, stable currency conditions and the international competitiveness of the tax system, form the foundation critical to Nikes growth. ECONOMIC In economy, the biggest threat for Nike would be economic recession. During recession, Nikes growth will be adversely affected. The US economy is experiencing a downturn right now. Consumer purchases are slowing down. Currently, Nike's feeling the pinch of the economic recession. The Asian economic crisis also affects Nike since its goods are manufactured in Asia. The labor costs and material prices are going up. Nike's growth is not just affected by the local economy but also in the international economy. A weak Euro and an Asian recession could mean weak sales for Nike. The overall results in the sales generated by Nike in athletic footwear, however, remained stable. The global market makes up for the variances in sales particularly between peak and lean seasons.

SOCIAL People are more health conscious nowadays. Diet and health are getting more prominence. Consequently, more and more people are joining fitness clubs. There is an accompanying demand for fitness products particularly exercise apparel, shoes and equipment. Nike is at the forefront of this surge in demand as people are looking for sports shoes, apparel and equipment. Nike, however, failed to foresee problems brought about by a sweatshop expose pertaining to labor and factory conditions at production locations in Asia. This caused bad publicity and declining sales as society and consumers demand more socially responsible companies. TECHNOLOGY Nike uses IT in its marketing information systems very effectively. Nike applies marketing information systems to the economics of innovation, segmentation and differentiation for most of its businesses. Nikes leadership status owes in large part to the use of extremely valuable Information Technology, and applying it to every aspect of the product from development to distribution. Nike, being the world leader in the athletic footwear industry, is able to effectively harness its environment to boost its marketing efforts. This strategy has translated into robust sales of Nike's products.