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Published on Dec 05, 2015

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PRESENTATION OUTLINE

NIKE SHOES

Photo by swishphotos

WHERE IS IT MADE?

  • 70% in China and Indonesia
  • Others: Vietnam, Taiwan, and India

WHERE DID IS ORIGINATE?

  • Back of the founder, Phil Knoght's, car
  • Portland, USA
Photo by Werner Kunz

INPUTS

Photo by Zach Dischner

LEATHER

  • From Texas cows
  • Shipped to South Korea and Pusan for processing
Photo by publicenergy

COTTON

  • Leaders of cotton production:
  • China
  • India
Photo by subarcticmike

RUBBER

  • From South American rubber trees
  • From petroleum in Saudi Arabia
  • And benzene from Taiwan produced in Jakarta
  • Bulk gaining
Photo by Betsie Nel

OTHER SYNTHETICS

  • Petrolium based
  • Ethanol from Saudi Arabia
  • Prossesed in South Korea
  • Bulk gaining

BRIC INVOLVMENT

  • Growing economies
  • Evolved governments
  • Large workfore
  • Creates great prospects for new factories

SITE FACTORS

  • Many resources/money
  • Strong economies
  • Stable government
  • Brick reducing

WORKERS

  • Unskilled females-doesnt require skill
  • Females work for less
  • Large workforce (labor intensive)
  • Little rights=less say in salary
  • Low wages-saves money

SALARY

  • Indonesia: 23 cents per hour
  • Vietnam: $42 per month
  • Shanghai: 39 cents per hour
  • Mainly below $1 per hour

CAPITAL

  • More capital=
  • Better machines
  • Buys resources
  • Pays workers
Photo by 401(K) 2013

SITUATION FACTORS

  • Close to:
  • Resources
  • Large workforce
  • Low minimum wage
Photo by mararie

TRANSPORTATION EFFECTS

  • Allows for movement of inputs
  • Transportation=factories closer to market
  • Resources cost less to move
Photo by WarzauWynn

TRANSPORTATION TYPES

  • Warehouses to buyers=trucks
  • Ships from Asia to market
  • High end items use planes

BREAK BULK POINTS

  • Memphis, USA
  • Bankok, Thailand
  • Shanghai, China

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JUST IN TIME DELIVERIES

  • For certain resources