Case Analysis: Hitting the Wall: Nike and International Labor Practice

Problem Identification Established in the early 70's Nike, Inc., based in Beaverton, Oregon, USA faced a severe stream of criticism and experienced growing problems concerning their plants and employee treatment, mainly in Indonesia and Vietnam in 1988. Rising demand for Nike products, which almost doubled within a short period of time, led the company and its 350+ subcontractors to raise the production level. Series of labor problems and abuse such as cheap labor wages, poor working conditions, …

…in Vietnam or Indonesia, but also the company itself. Once outside organizations tell Nike where they need to improve on and do it after being told, then the company will also get into the positive spotlight, which will resume in higher sales and more profit. Nike will then be again the strongest contender in supporting and sponsoring universities, pro athletes and teams and most important a company that everybody wants to work for, regardless where.