Internal and External Factors

Internal/External Factors of Management

Eric Watson

MGT230

December 19, 2014

Nadine Sawares

Internal and External Factors of Management

Nike has become one of the most recognized brands in the world. The company is the world’s leading shoe and athletic apparel supplier as well as a marketing giant. Their slogans, like “Just Do It”, become a call to action for an entire generation of fitness fanatics. Upon examining Nike, it becomes clear that their success is not by accident as their organizational goals and core competencies are the foundation of their business model. This paper is focused on assessing how Nike has applied the four principles of management to their strategic objectives in order to achieve their goals. Additionally, we will analyze how internal and external factors such as globalization, technology, innovation, diversity, and ethics play into the managing principles of Nike?

Four Principles of Management

Bateman and Snell (2011) define the principles of management as, “these fundamentals include the four traditional functions of management: planning, organizing, leading, and controlling." Each of these four principles will help examine how Nike has applied them both internally and externally realize their corporate objectives.

Planning

“Planning is specifying the goals to be achieved and deciding in advance the appropriate actions needed to achieve those goals” (Bateman & Snell, 2011). Nike started out with ambitious strategic goals, but truly excelled in breaking those these goals down into tactical plans that were achievable. With only $1,000 of operating capital to begin, Nike grossed only $8,000 their first year (Almaney, 2000). At present, they are a multibillion dollar company with a global presence.

Internal

Early in the history of Nike, the founders Bill Bowerman and Phil Knight set out to break the grip that Germany had on US distribution of athletic shoes (Almaney, 2000). They set a mission...