Generally, firms have a tendency to increase their profit by cutting down on manufacturing cost, as it is important for the growth and development of a company. At times, firms prioritize on building profit over fundamental aspects such as human resource management, outsourcing management, and environmental conditions. Violation of fundamental rights quite often results to public outcry, which when not answered could result in a public relations disaster. This report illustrates the human resource issues that Nike faced during the 1990s and the firm's reaction to the situation. Also, the report evaluates the situation before making some crucial suggestions that could have helped Nike in resolving the situation sooner. .
We live in a cultural economy of signs and Nikeís swoosh is currently the most recognizable brand icon in that economy. The Nike swoosh is a commercial symbol that has come to stand for athletic excellence, hip authenticity, and playful self- awareness. While the logo carries the weight of currency, Nikeís ëJust do ití slogan has become part of the language of everyday life. Nike, based in Beaverton, Oregon, had a corporate success story for over three decades since 1970. The Nike swoosh had been one of the most recognized corporate trademarks in the world. Nike captured the attention of trend-setting teenagers by dictating fashion trends to some of the world's most influential customers. The company's success was mostly attributed towards the strategy than the shoes that Nike made. Mainly two prongs differentiated the company's strategy: its measure to cut costs through outsourcing to low cost parts of the world; money saved through outsourcing was invested in marketing through celebrity endorsements. However, the success of Nike did not last long as the manufacturing of the sneakers happened between uneasy relationships with low paid, non-American workers.