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Lagos State University *

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102

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Management

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Nov 24, 2024

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docx

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6

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Introduction: The Aspire Foundation, a non-profit organisation devoted to youth empowerment, and Nike, a global leader in sportswear and athletic gear, are the subjects of this analysis, which delves into the environmental factors, competitive landscape, organisational strengths and weaknesses, and potential strategic directions for two different organisations. PESTEL analysis, Porter's Five Forces Model, and SWOT analysis are all used in the analysis to provide important insights into the possibilities and difficulties that these firms face as well as how they may continue to flourish in their respective fields. This analysis intends to offer light on the approaches that both Nike and the Aspire Foundation should think about as they traverse their different contexts and carry out their special objectives in a constantly changing world. PESTLE Analysis Factors Nike Aspire Foundation Political - Trade policies and tariffs can impact the cost of manufacturing and importing for Nike (Nike, 2023). - Government funding and grants may fluctuate due to political decisions (Aspire Foundation, n.d.). - Regulations on labor practices can affect Nike's supply chain operations (Nike, 2023). - Government policies may change affecting the availability of resources for youth programs (Aspire Foundation, n.d.). Economic - Economic downturns can affect consumer spending on sportswear products (Nike, 2023). - Economic fluctuations can impact donations and fundraising efforts (Aspire Foundation, n.d.). - Currency exchange rates can impact Nike's international sales and profits (Nike, 2023). - Economic inequality may increase the need for youth development programs (Aspire Foundation, n.d.). Sociocultural - Evolving consumer preferences and trends can create opportunities for new products (Nike, 2023). - Increasing awareness of social issues related to youth empowerment can boost support (Aspire Foundation, n.d.). - Growing interest in health and wellness presents an opportunity for Nike's products (Nike, 2023). - Changing demographics can affect the target audience and program design (Aspire Foundation, n.d.). Technological - Advancements in manufacturing - Digital tools can improve program
technology can enhance efficiency and product innovation (Nike, 2023). management and outreach (Aspire Foundation, n.d.). - E-commerce and digital services offer opportunities for growth and market reach (Nike, 2023). - Technology can be harnessed to engage with young people more effectively (Aspire Foundation, n.d.). Environmenta l - Sustainability trends and regulations can affect Nike's manufacturing and supply chain (Nike, 2023). - An increased focus on environmental issues aligns with the foundation's mission and values (Aspire Foundation, n.d.). - Climate change can disrupt supply chains and manufacturing processes (Nike, 2023). - Environmental awareness can boost support for initiatives promoting sustainable practices (Aspire Foundation, n.d.). Legal - Intellectual property rights are crucial for brand protection (Nike, 2023). - Compliance with non-profit regulations and legal requirements is necessary (Aspire Foundation, n.d.). - Product safety and quality regulations can impact Nike's operations (Nike, 2023). - Legal compliance is vital for fundraising and grant applications (Aspire Foundation, n.d.). Environmental Uncertainty for Nike: The environment in which Nike operates is highly unpredictable, particularly in terms of politics, the economy, and environmental concerns. The sportswear industry faces political risks due to trade and labour legislation. For instance, trade disputes and tariffs have caused problems for Nike (Nike, 2023). Uncertainty may result from political developments that affect international trade and production costs. Economical fluctuations in consumer spending and foreign exchange rates might affect Nike. Consumer spending on sporting goods may decrease during economic downturns like the one during the global financial crisis, which could have an effect on a company's earnings (Nike,
2023). Currency exchange rate fluctuations also contribute to economic uncertainty by having an impact on global sales and profits. Environmental concerns and laws, such as those relating to sustainability and climate change, also add to the uncertainty surrounding Nike's supply chain and manufacturing processes. Climate change and environmental activities may have an impact on supply chains and production procedures (Nike, 2023). The company's capacity to satisfy these shifting environmental requirements is uncertain. Environmental Uncertainty for the Aspire Foundation: Changing demographics, a shaky economy, and a thriving non-profit sector define the climate in which The Aspire Foundation operates. The foundation's primary funding streams, which are donations, grants, and fundraising, may be impacted by the state of the economy (Aspire Foundation, n.d.). As was evident during recessions, economic uncertainty can have an impact on the availability of financial resources. Uncertainty is injected into the design of programmes and outreach attempts by the target population's shifting demographics, particularly those about its age and history. The foundation must modify its programmes as demographics change in order to better meet the needs of the young people it seeks to empower (Aspire Foundation, n.d.). Due to changing legislation and intense financial competition, the nonprofit sector itself is unclear. In order to carry out its objective and maintain compliance, the foundation must stay abreast of evolving non-profit legislation and regulatory requirements (Aspire Foundation, n.d.). Competition amongst organisations for the limited available funding sources is still an issue. Competitive Analysis Factors Nike Aspire Foundation Threat of New Entrants - High barriers to entry due to strong brand recognition, economies of scale, and extensive distribution network (Nike, 2023). - Low barriers to entry for new non-profit organizations in the youth development sector (Aspire Foundation, n.d.). - Significant investment required for research, development, and - The foundation's strong mission and expertise may deter potential competitors
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marketing (Nike, 2023). (Aspire Foundation, n.d.). Bargaining Power of Suppliers - Nike relies on various suppliers for materials and manufacturing, reducing supplier power (Nike, 2023). - The foundation's suppliers include partners in the education and community sectors (Aspire Foundation, n.d.). - Large production orders and long- term supplier relationships enable cost control (Nike, 2023). - Supplier power may be limited due to the non-profit nature of the foundation (Aspire Foundation, n.d.). Bargaining Power of Buyers - High buyer power due to a wide range of sportswear options and price sensitivity (Nike, 2023). - The foundation's target audience (youth) may have limited bargaining power, but funders and partners can influence decision-making (Aspire Foundation, n.d.). - The availability of substitute products increases buyer power (Nike, 2023). - Collaboration with schools, organizations, and businesses may impact program design (Aspire Foundation, n.d.). Threat of Substitutes - High threat of substitutes as consumers have various choices for sportswear and athletic gear (Nike, 2023). - Moderate threat of substitutes as there are alternatives to youth development programs, but the foundation's expertise differentiates it (Aspire Foundation, n.d.). - Availability of non-branded or lower-priced alternatives increases the threat of substitutes (Nike, 2023). - The mission and commitment to youth empowerment may reduce the appeal of substitutes (Aspire Foundation, n.d.). Competitive Rivalry - Intense competition within the sportswear industry with established players like Adidas and Under Armour (Nike, 2023). - Competitive rivalry exists among non- profit organizations working in the youth development space (Aspire Foundation, n.d.). - Ongoing product innovation and marketing campaigns drive competitive rivalry (Nike, 2023). - The foundation competes for funding and partnerships with other non-profits (Aspire Foundation, n.d.). SWOT Analysis Factors Nike Aspire Foundation
Strengths - Strong global brand recognition and loyalty (Nike, 2023). - Dedicated mission and strong commitment to youth empowerment (Aspire Foundation, n.d.). - Continuous product innovation and technological advancements (Nike, 2023). - Experience and expertise in youth development programs (Aspire Foundation, n.d.). - Extensive distribution network and retail presence worldwide (Nike, 2023). - Established partnerships with schools, community organizations, and businesses (Aspire Foundation, n.d.). Weaknesses - Dependence on external suppliers and manufacturing facilities (Nike, 2023). - Reliance on donations, grants, and fundraising efforts for funding (Aspire Foundation, n.d.). - Vulnerability to shifts in consumer preferences and economic downturns (Nike, 2023). - Limited financial resources for expanding programs (Aspire Foundation, n.d.). - Environmental concerns and sustainability challenges in the supply chain (Nike, 2023). - Competing with other non-profits for funding and resources (Aspire Foundation, n.d.). Opportunitie s - Growth in the health and wellness industry (Nike, 2023). - Increasing awareness of social issues related to youth empowerment (Aspire Foundation, n.d.). - Digital expansion and e-commerce (Nike, 2023). - Collaboration with schools, organizations, and businesses (Aspire Foundation, n.d.). - Addressing sustainability concerns and aligning with environmental trends (Nike, 2023). - Utilizing technology to engage with young people more effectively (Aspire Foundation, n.d.). Threats - Intense competition in the sportswear industry (Nike, 2023). - Potential fluctuations in government funding and grants (Aspire Foundation, n.d.). - Economic downturns affecting consumer spending (Nike, 2023). - Economic fluctuations impacting donations and fundraising efforts (Aspire Foundation, n.d.). - Climate change disrupting supply chains and manufacturing processes (Nike, 2023). - Competition with other non-profit organizations for limited funding sources (Aspire Foundation, n.d.). Recommendations for Nike: Sustainability Focus : Nike should uphold and strengthen its dedication to sustainability. Nike can address environmental issues and take advantage of the expanding consumer demand for sustainable products by minimising its environmental impact and incorporating eco-friendly practises into its supply chain (Nike, 2023).
Digital Transformation : Nike should make embracing digital platforms and e-commerce a key component of its strategy. This will increase the company's ability to compete in the digital age by allowing it to reach a larger audience and offer individualised experiences (Nike, 2023). Innovative Product Lines : To promote product innovation, Nike should keep spending money on R&D. Creating innovative new sporting products can help a company stay current and hold onto its position as the market leader (Nike, 2023). Recommendations for the Aspire Foundation: Diversify Funding Sources : The Aspire Foundation should investigate various income streams, such as corporate sponsorships, collaborations, and social impact investments, in order to lessen its dependency on contributions and grants. This might offer a more reliable financial foundation (Aspire Foundation, n.d.). Impact Measurement: The foundation needs to improve how it measures and reports on impact. Giving donors and partners concrete proof of the benefits of its programmes can increase support (Aspire Foundation, n.d.). Leverage Technology : The foundation's reach and influence can be increased by utilising technology to interact with young people more effectively and to expedite programme administration (Aspire Foundation, n.d.). Conclusion These suggestions should be taken into account by Nike and the Aspire Foundation so that their plans are in line with the dynamic surroundings in which they operate. To accomplish its objectives and keep a competitive edge, Nike should prioritise sustainability, digital transformation, and innovation, while the Aspire Foundation should diversify its funding sources, enhance impact measurement, and use technology (Nike, 2023) (Aspire Foundation, n.d.).
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