Case Study on Nike's relocation of production and manufacturing facilities in India.

Essay by arikunCollege, Undergraduate June 2007

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Globalization, the expansion of intercontinental trade, technological advances and the increase in the number of companies dealing on the international stage have brought about a dramatic change in the frequency, context and means by which people from different cultural backgrounds interact. Thus, cross cultural solutions to international business demands are increasingly being viewed as a valid and necessary method in enhancing communication and interaction in and between companies, between companies and customers and between colleagues.

Moreover, different cultures and cultural backgrounds between a highly diverse staff base brings with it obstacles, challenges and difficulties. Cross cultural differences manifest in general areas such as in behavior, etiquette, norms, values, expressions, group mechanics, and non-verbal communication. These cross cultural differences then follow on through to high level areas such as management styles, corporate culture, marketing, HR and PR

The advent of the global economy is changing the fundamental nature of our governments, businesses, organizations, and populations.

In short, we are no longer constrained by state boundaries but have all become part of an interdependent international network. Relocation of businesses processes to other countries, especially to countries overseas, is a spreading trend among businesses nowadays. This process of expansion includes any business process such as production, manufacturing, or services. It is then linked to the availability of large amounts of reliable and affordable communication infrastructure following the telecom and Internet expansion of the late 1990s. Coupled with the digitization of many services, it was possible to shift the actual production location of services to low cost countries in a transparent manner to end-users.

These business strategies are becoming very common in the market place. They are generally also associated with job loss as companies take advantage of more experienced but low cost resources in countries like India, Philippines, Eastern Europe, etc. Large...