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Contemporary Issues in Business Management. Internationalisation Technological innovation Sustainabilit y.

DEFINITION CASE STUDY : NIKE BACKGROUND MARKET ENTRY PLACES PRODUCTS SWOT ANALYSIS PEST ANALYSIS REVENUE CONCLUSION.

INTERNATIONALISATION. 01.

02. Nike.

BACKGROUND. “ Just Do It”. Nike Inc., has 154 affiliates in 46 different countries. Nike Inc. In the analyzed period, the number of retail stores worldwide increased 1.7 times, while the number of retail stores outside the U.S. grew 2.3 times . ( (JAWOREK1 & KARASZEWSKI2, 2020) ) Drivers for Internalization: 1. Motive for America to internationalize was to increase revenue and establish a strong customer base in other countries. 2. Reducing their business operating costs such as Labor Costs. Manufacturing plant has consequently move over to some Asia Countries such as China and Indonesia ..

MARKET ENTRY. The main modes of entry are exporting, licensing, franchise, joint ventures and FDI (Foreign Direct Investment)..

PLACE. Nike's manufacturing were first located in Japan but were later relocated to lower labor locations in South Korea, China, and Taiwan. Nike switched their attention away from labor in South Korea and Taiwan and toward China, Indonesia, and Vietnam as their economies expanded. Most factories are found in Asia, including Indonesia, China, Taiwan, India, Thailand, Vietnam, Pakistan, Philippines and Malaysia ( Nikebiz , 2010)..

PRODUCTS. Footwear. Running Training Basketball Soccer Tennis Golf Baseball Football Cricket Volleyball Walking Wrestling Cheerleading Aquatic Activities Hiking Outdoor Activities Other Sports.

20XX. Strength Strong Brand Image Opportunities Innovative products Threat Impact of Pandemic Weakness Increased competitive pressure Emerging Markets Efficient Integration Poor Labor conditions in Foreign Countries Retailers have stronger Hold Pending Debts Dependency on US markets Lawsuits Counterfeit Products Foreign Exchange Risks Huge customer Base Aimed for sustainability Iconic relationship Superior marketing capabilities.

PEST ANALYSIS. X. 10. PEST Analysis Political Stable Political Environment in Markets Governments’ Policies Trade Policies Political Conflicts Positive labor Rights & Registration Economics Economic Stability of Developed Countries Rapid Growth of Developing Markets Economic Recession Market Collapse Raw Materials Prices/ Availability Currency and Exchange Money Risk Social Growing Concern for Health and Fitness Increased Standard of Living Emphasis on Product Safety Customer Loyalty Political Consumerism Social Pressure for Fair Labor Policies Technological Use of Social Media Platform Dynamic Technology Culture Mobile Technology Innovation with Technology Improving Manufacturing Process Increased Investment in R&D Globally.

( Statista.com,2022 ) ). NIKE. ADIDAS. €36.53 bil.

CONCLUSIONS. On this premise, we may conclude that the Nike start-up does not own any of the factories. Instead, the production operations are completely outsourced, which is more cost effective. The firm was created on the concept of seeking cheaper labor. At the heart of foreign marketing strategy is creative innovation, which has proven to be a significant competitive advantage for the brand. Nike has had constant profitability thanks to its great sports shoes, product variety, and solid relationships with its suppliers and distributors..

TECHNOLOGY INNOVATION. 03.

Definition. Technological innovation refers to a series of phases necessary to implement improvement or developing a new process, product or service in order to optimize output..

02. Sensorbot.

BACKGROUND. ‘AURORA’. Aurora was developed in response to a request from the National Library Board to enhance its shelf-reading procedure. Aurora is able to scan shelves with 99% accuracy using radio frequency identification tags and laser mapping technologies, reducing manhours on mundane task, allowing librarians to focus on client assistance..

Workflow of “Aurora”. . Every night, Aurora examines the shelves independently. The next morning, a report will be generated in which all of the issues that require attention will be highlighted for librarians to take notice of. With the report , librarians able to take precise action to right the books..

Introduction Video of ‘Aurora’. Link : https://www.youtube.com/watch?v=R5AMHSnccNs&t=115s.

Advantages DIsadvantages Allow staff to focus on other areas to provide better service. High electricity consumption because it must be operational on a daily basis. Less human-errors by improving the accuracy in locating books in the libraries. High maintenance cost caused by machine failure. No manual stock-taking needed to perform. Not all books can be detected. For instance, books face down on metal surfaces may not be detected. To maximize efficiency in industries that require support with logistics. Unable to return to its docking station at the end of a scheduled scan. Built-in safety sensors, latest anti-collision system.

FACTORS THAT AFFECT EMPLOYEES & USER EXPERIENCE. Employees Decrease in Job Employment. “The expensive man-hours required to maintain shelves have been reduced by more than 50%.” ( National Library Board (NLB) Singapore, 2022 ) User Experience Capable of conveniently accessing books at rightful places..

TIMELINE. 2016 Sensorbot is inaugurated. 2017 The first commercialized Aurora has deployed at the Pasir Ris Public Library! 2018 Aurora is implemented at Temasek Polytechnic 2019 2022 2020 Aurora deployed into Korea and participated in an exhibit in Japan with Dai Nippon Printing Aurora has been installed in five libraries in Singapore. Aurora now operates in 16 libraries worldwide. The National Environment Agency of Singapore had successfully implemented a Vision Analytics robot. Expand into the US and European markets. 2021.

Statistical Data. ‘A Proven Success: Singapore's National Library Board improves patrons' ability to always find books in the right place.’ (National Library Board (NLB) Singapore, 2022).

STAFF REVIEWS. “Thanks to Aurora, librarians have received fewer queries about where books are located, simply because the books are in their rightful places and patrons can find them easily. So, on the operations side, happy customers, happy staff!”.

CONCLUSIONS. Technological innovation is extremely vital in our daily lives. According to the findings of this study, Patrons may now utilize the library catalogue with confidence, and staff is able to manage their time more effectively to better serve their clients. The purpose is to develop and implement innovative electronic initiatives that give viable solutions for lowering man-power costs while providing customers with a competitively better service that satisfies their expectations..

SUSTAINABIILTY. 04.

Definition. The ability to maintain or support a process continuously over time. In business and policy context, sustainability seeks to prevent depletion of natural/physical resources to satisfies the demands of the present without jeopardizing future generations' capacity to meet their own needs.

STARBUCKS - “To inspire and nurture the human spirit–one person, one cup and one neighborhood at a time.”.

PLACES. Starbucks at 50: A Sprawling Coffee Empire Countries with the most/at least one Starbucks store (as of December 27, 2020) united Kingdom 1,039 Canada 1,550 United States 15,340 Source: Starbucks South Korea 1,509 China 4,863 Japan 1,629 Of the 32,938 Starbucks locations worldwide, 51% are company-operated and 49% are licensed stores. statista.

“Go Green” Campaign. In 2020, Starbucks' President and CEO, Kelvin Johnson, announced a multi-decade commitment to go green by investing in eco-friendly operations, regenerative agriculture techniques, and an environmentally friendly menu..

CONTRIBUTION TO SOCIETY. 05.

Corporate Social Responsibility (CSRs) Starbucks Done.

To overcome Burning Excessive Fossil Fuels: “Starbucks contributes by sourcing 100% renewable energy for more than 9,000 stores since 2015. On top of that Starbucks announced new investments such as the company’s first on-site solar store in California. - (Starbucks Stories & News, Starbucks solidifies pathway to a planet positive future, 2019).

Solar Energy being introduced : Starbucks has claimed a 50% reduction in energy use for roasting and beverage manufacturing in the United States by 2022. Starbucks is spending up to 97 million dollars in up to 23 new community solar projects in New York State, which will provide solar energy to up to 24,000 households, small companies, churches, and institutions. Finally, Starbucks has contributed to the building of a new wind turbine in Washington capable of supplying electricity to around 140 Starbucks locations as well as several communities. We may deduce from the activities that Starbucks is working to create a more sustainable future..

Introduction of ‘Plant-Based Diet” Meal: Definition : Plant-based diet was introduced such as Impossible Burger and Beyond Meat as a substitute to Poultry. By adopting a plant-based diet, we will be able to produce 50% less carbon dioxide, use less water and land compared to meat-eaters. With that being said, Starbucks contributes by introducing their own plant-based meals in 2020 to help reduce greenhouse emission and water usage which features an Impossible Pasta Salad Bowl and an Impossible Pie..

How does ‘Starbucks’ create a Sustainable Environment ?.

STARBUCKS ALLIANCES. On top of that, Starbucks has also made announcements to help propel the dairy industries to a sustainable future by supporting the Daily Net Zero Initiative which aims to achieve zero greenhouse emission and improvements in water quality on the farms. Starbucks is also joining the Farm Powered Strategic Alliance aiming to repurpose food waste in Starbucks’ supply chain into renewable energy via farm-based anaerobic digesters to support agricultural practices. Anaerobic Digesters produces energy uses food waste and manure (heated in a biotank producing biogas which consist of methane, which is then pumped into the Gas Filtration tank to generate electricity)..

CONTRIBUTION TO EMPLOYEES / COMMUNITIES. 05.

Local communities : Aims to assist non- profit organizations by providing education and training. Provide volunteering services 520,000 hours around the world. In FY21, 10.4 million and 1.2 million meals were donated in the United States and Canada, respectively..

FUTURE DEVELOPMENTS BY 2030. Expanding plant-based menu options.

CONCLUSIONS. From the report shown earlier, we can conclude that Starbucks is determined to achieve their goals to make the world a better place by contributing back to the community with tree planting, investing in renewable energy and providing alterative food source. On top of that, Starbucks has been actively providing education and training to encourage continuous learning & providing food donations to help the less-fortunate. With the above initiatives from Starbucks, they will be able to help reduce carbon footprint and create a more sustainable future..

THANK YOU.