Turkish Coffee in Usa Market

Aybey Boran

Turkish Coffee in USA Market

EXECUTIVE SUMMARY

Our project is basically about the American coffee market including natural sources, culture, economics and effects on our product which is Turkish coffee. We are trying to evaluate exporting strategies based upon these factors.

In order to sell our product, we have to make complicated research about American coffee market. Such as; possible buyers in USA, American coffee culture and our marketing mix strategies

Main idea about this paper is finding a product which has an international sale potential, and try to establish specific marketing mix strategies which is related to host country’s sources.

In 1999 there were 108,000,000 coffee consumers in the United States spending an approximated 9.2 billion dollars in the retail sector and 8.7 billion dollars in the foodservice sector every year (SCAA 1999 Market Report).In this big market, there are many types of sellers and buyers and important thing for us analyzing the complicated structure of this market and using these results in order to match our marketing strategies.

Turkish Coffee

From the days of the Ottoman Empire through the present, coffee has played an important role in Turkish lifestyle and culture. The term "coffee" is also derived from the Turkish word "kahve.". The serving and consumption of coffee has had a profound effect on betrothal and gender customs, political and social interaction, prayer, and hospitality customs throughout the centuries. Although many of the rituals are not prevalent in today's society, coffee has remained an integral part of Turkish culture. Today, Turkish coffee houses continue their role in society as a meeting place for both the cultured citizen and the inquisitive traveler. Istanbul offers many new and delightful cafe - restaurants where friends and family meet to discuss topics of the day over a cup of traditional Turkish coffee.

Derived from the Arabica bean, Turkish coffee is a very fine, powder-like grind. An aromatic spice called cardamom is sometimes added to the coffee while it is being ground. One can also boil whole seeds with the coffee and let them float to the top when served. Turkish coffee has six levels of sweetness ranging from very sweet to black. Since sugar is not added to the coffee after it is served, spoons are not needed. As the coffee begins to heat, it begins to foam.

Turkish coffee is served hot from a special coffee pot called "cezve". Tradition states that after the guest has consumed the coffee and the cup is turned upside down on the saucer and allowed to cool, the hostess then performs a fortune reading from the coffee grounds remaining in the cup. Rich in tradition and flavor, Turkish coffee remains a favorite today. As the Turks say "To drink one cup of coffee together guarantees forty years of friendship".

According to news, Starbucks Coffee is now to promote Turkish coffee all around the world. The company plans to offer its customers Turkish coffee at about 9,000 sales points, from North America to the Middle East. The Turkish Director of the company Kilic Aslanturk says that they aim to make coffees in line with Turkish tastes, which they have presented to customers in Turkey, as well as worldwide tastes that do not change. So it is a good time to enter USA coffee market with Turkish coffee.

American Coffee Culture

Americans seem intent on developing a new kind of coffee culture that is decidedly American. Their coffeehouses range from elegant to bohemian to suburban to slacker. American coffee culture exists as its own entity. It is not a reflection of Europe, but rather a frontier representing American individuality. Their drinking patterns run the gamut, and more of them than ever before are enjoying specialty coffee for its flavor. It's no wonder that specialty coffee consumption continues to thrive.

The basis of West Coast coffee culture, although fueled by Peet's, most likely started in the heady days of the Beats, somewhere in North Beach in San Francisco, perhaps at a legendary spot like Coffee Trieste. The pace and natural beauty of the West Coast compels people to slow down and linger. Perhaps this is why American coffee culture still largely looks to the West for inspiration.

Rest of the country; roaster, retailers and coffeehouses are intricately tied to developing the American coffee scene in distinct ways in their own towns, cities or regions. Quality and care are not limited to one coast. It is the so-called micro-roasters who really have an opportunity to push their coffee culture to the next level of enjoyment by providing super-fresh, stellar single-origin coffees and blazing espresso. These carefully roasted beans land in coffeehouses across the country, some in strip malls, some in inner cities, and some in bustling beach and mountain towns.

As far as regional roast and flavor preferences, they are as varied as the topography of USA. The West, and particularly the Pacific Northwest, is known for its dark roasts. Maybe it's because they figure this type of roast will stand up to all those milky concoctions their customers demand, or maybe it's because they simply like the hammer of intensity a dark roast can provide.

The East Coast harbors many talented roasters scattered in and around Boston and Philadelphia. There seems to be a tendency toward a lighter roast, but, of course, I cannot say this is always the case. I suspect that espresso and espresso-based drinks will never catch up to drip in this part of the world, as a big donut company beat the big coffee marketing company here by a number of decades. This may explain why a large portion of the population still seems to think that coffee is served exclusively with cream and sugar.

The South represents a hodgepodge of tastes. Here, you can still find plenty of flavored concoctions with names like "pecan log roll" being passed off as specialty coffee. But a number of roasters in the Carolinas, Georgia and Florida are doing great work. Here again, the full city roast seems to have gained prevalence. Then there's New Orleans, where locals adore their dark roast mixed with chicory, hot milk and a beignet.

In the East, there seems to be more of a European influence, perhaps from an earlier era, and there are spots that are very design-forward. Spaces are smaller and dearer. Time definitely passes more quickly here than in other parts of the country.

Organic, sustainable and fair-trade coffees are quickly finding a place in American coffee culture, particularly on the coasts. Environmental awareness is less entrenched in the Midwest, where we think the cold winters tend to make people cynical. With the increasing presence of natural food stores and specialty grocers, and the rising number of excellent organic and sustainable coffees, we suspect this category will continue to see tremendous growth.

In general, the level of coffee knowledge seems to be rising throughout the country, with customers inquiring about particular origins and preparations and asking for ristrettos and French-pressed coffees.

International Coffee Market

The Scandinavians are the biggest coffee drinkers, while Italy is in ninth place in Europe, with a total consumption of more than 14 billion cups per year. The international coffee market is worth 90 trillion dollars, and Brazil alone produces almost a third of the world's coffee. Its average harvest in the past three seasons amounted to nearly 32 million sacks (one sack is equal to 60 kg), and it exported about 27 million sacks.

The second largest coffee producer is Vietnam, which in just a few years has surpassed Colombia, now in third place, due to its geographical vicinity with the Chinese market, which has greatly increased consumption. Other major coffee producers are Indonesia, Mexico, India and Ethiopia. The entire world production, according to the data of the World Coffee Organization, amounted to nearly 110 million sacks in 2004. The most frequently used varieties are Robusta, with 29,895,130 sacks, Natural Brazilian (27,796,308), Mild Colombian (11,923,938) and other mild varieties (20,241,233). The European Union countries that imported the most coffee in 2004 were Germany (17,665,901 sacks), France, Italy, Scandinavian countries, Spain and the Netherlands.

The sector is growing in Italy, with a turnover exceeding 2 billion euros per year and one million employees working in approximately 141,000 coffee bars and cafés, besides nearly 86,000 restaurants. Italy imports green coffee mainly from Brazil (36.09%), Vietnam (13.98%), India (13.09%), Indonesia (5.76%), Cameroon (5.25%) and Colombia (3.93%).

About USA

Location: North America, bordering both the North Atlantic Ocean and the North Pacific

Ocean, between Canada and Mexico.

Natural Resources: Coal, copper, lead, molybdenum, phosphates, uranium, bauxite, gold,

iron, mercury, nickel, potash, silver, tungsten, zinc, petroleum, natural gas, timber.

Population: 298,444,215 (July 2006 est.)

Age Structure: -14 years: 20.4% (male 31,095,847/female 29,715,872)
15-64 years: 67.2% (male 100,022,845/female 100,413,484)
65 years and over: 12.5% (male 15,542,288/female 21,653,879) (2006)

Ethnic Groups: White 81.7%, black 12.9%, Asian 4.2%, Amerindian and Alaska native

1%, native Hawaiian and other Pacific islander 0.2% (2003 est.).

Religion: Protestant 52%, Roman Catholic 24%, Mormon 2%, Jewish 1%, Muslim 1%,

other 10%, none 10% (2002 est.).

Language: English 82.1%, Spanish 10.7%, other Indo-European 3.8%, Asian and Pacific

island 2.7%.

Economy Overview: The US has the largest and most technologically powerful economy

in the world, with a per capita GDP of $42,000. In this market-oriented economy, private

individuals and business firms make most of the decisions, and the federal and state

governments buy needed goods and services predominantly in the private marketplace.

US business firms enjoy greater flexibility than their counterparts in Western Europe and

Japan in decisions to expand capital plant, to lay off surplus workers, and to develop new

products. At the same time, they face higher barriers to enter their rivals' home markets

than foreign firms face entering US markets. US firms are at or near the forefront in

technological advances, especially in computers and in medical, aerospace, and military

equipment; their advantage has narrowed since the end of World War. The war in March-

April 2003 between a US-led coalition and Iraq, and the subsequent occupation of Iraq,

required major shifts in national resources to the military. The rise in GDP in 2004 and

2005 was undergirded by substantial gains in labor productivity. Hurricane Katrina

caused extensive damage in the Gulf Coast region in August 2005, but had a small impact

on overall GDP growth for the year. Soaring oil prices in 2005 and 2006 threatened

inflation and unemployment, yet the economy continued to grow through mid-2006.

Imported oil accounts for about two-thirds of US consumption. Long-term problems

include inadequate investment in economic infrastructure, rapidly rising medical and

pension costs of an aging population, sizable trade and budget deficits, and stagnation of

family income in the lower economic groups.

Per capital income: $41,600 (2005 est.)

Unemployment Rate: 5.1% (2005 est.)

Inflation Rate: 3.2% (2005 est.)

Industries: Leading industrial power in the world, highly diversified and technologically

advanced; petroleum, steel, motor vehicles, aerospace, telecommunications, chemicals,

electronics, food processing, consumer goods, lumber, mining.

Export Commodities: agricultural products (soybeans, fruit, corn) 9.2%, industrial

supplies (organic chemicals) 26.8%, capital goods (transistors, aircraft, motor vehicle

parts, computers, telecommunications equipment) 49.0%, consumer goods (automobiles,

medicines) 15.0% (2003).

Export partners: Canada 23.4%, Mexico 13.3%, Japan 6.1%, China 4.6%, UK 4.3%

(2005).

Import commodities: Agricultural products 4.9%, industrial supplies 32.9% (crude oil

8.2%), capital goods 30.4% (computers, telecommunications equipment, motor vehicle

parts, office machines, electric power machinery), consumer goods 31.8% (automobiles,

clothing, medicines, furniture, toys) (2003).

Import partners: Canada 16.9%, China 15%, Mexico 10%, Japan 8.2%, Germany 5%

(2005).

Political risk analysis:

When we look at the stability of the USA political structure, we don’t expect more

unexpected and drastic changes. We believe that 2007 president election results cannot

affect the business world as much as policy in Iraq. if we look at the politically risky

countries chart, USA in non- risky part.

Coffee Culture and Consumer Behavior in USA:

In 1999 there were 108,000,000 coffee consumers in the United States spending an

approximated 9.2 billion dollars in the retail sector and 8.7 billion dollars in the

foodservice sector every year (SCAA 1999 Market Report). It can be inferred, therefore,

that coffee drinkers spend on average $164.71 per year on coffee. The National Coffee

Association found in 2000 that 54% of the adult population of the United States drinks

coffee daily (NCA Coffee Drinking Trends Survey, 2000). They also reported that

18.12% of the coffee drinkers in the United States drink gourmet coffee beverages daily

(NCA). In addition to the 54% who drink coffee everyday, 25% of Americans drink

coffee occasionally (NCA). The average consumption per capita in the United States is

around 4.4 Kg. Among coffee drinkers (i.e. not per capita) the average consumption in

the United States is 3.1 cups of coffee per day (NCA). Per capita men drink

approximately 1.9 cups per day, whereas women drink an average of 1.4 cups of coffee a

day (NCA).

US Imports: Total US imports for the second 2006 quarter totaled 5.925 million bags, up

by 1.4% from the first quarter's 5.844. Compared with the year-ago quarter, US imports

were off by 2.6% from 6.280 million bags.

U.S. Retail Prices: Average retail prices in the second 2006 quarter increased by 0.9%

over the first quarter, moving to $3.27 per pound from $3.24. Compared with the second

quarter of 2005, coffee prices are down by 1.8% from $3.33. However, average monthly

retail prices remain 30.0% below a seven-year high of $4.67.

Overview Espresso

With the rise of coffee chains such as Starbucks, Seattle's Best Coffee, and others,

espresso-based drinks rose in popularity in the 1990s in the United States. The influence

of Starbucks has caused a wide divergence from the Italian style of coffee, by adding

syrups, whipped cream, flavour extracts, soy milk and different spices to their drinks.

Long and complicated drink orders became the punchline of many jokes aimed at making

fun of how finicky and obsessive coffee drinkers can be.

Home espresso machines have also increased in popularity with the general rise of

interest in espresso, and with the Internet and its use as a tool to spread information about

this beverage around the world. Today, a wide range of high-quality home espresso

equipment can be found in specialty kitchen and appliance stores, online vendors, and

department stores. The Internet has facilitated the spread of information about a wide

range of espresso-based drinks and can dispel (or promote) many myths on how to

properly brew espresso.

People who is looking for traditional coffee taste and espresso lovers are our segment.

We don’t have any competitor companies which sell Turkish Coffee in USA market.

Full definition of our segment is really clear, people who are looking traditional taste at

coffee. We don’t want to narrow our segment, because we have already consumer

portfolios in Turkey. In another words, our segmentation was done at local and we will

use same concept in global or foreign markets. Our segmentation and our targetting

strategies will keep going paralel. Our positioning stratey can be different in different

regions of the USA.

Adaptation of Turkish Coffee in USA market:

Turkish coffee is a very flavorful, and often strong, coffee. It is prepared in an ibrik, a

small pot that holds either one or two servings.

What do I need?

An ibrik and a heat source, coffee, water, and sugar.

What type of coffee grind?

Turkish coffee uses the finest grind you can have. The coffee becomes more like a

powder than anything else.

Turkish coffee and espresso have very similar tastes; maybe Turkish coffee is little bit

stronger than espresso. Another important similarity is both coffee types has different

type of pots and coffee cups. Our market segments is already in USA, we just have to

meet them with different coffee beans like Turkish coffee. Our potential market is going

to be who like espresso and people who are looking for traditional tastes.

Our strategy

Where can you buy Turkish coffee from?

1. Strategy

v Internet

v Supermarkets

Turkish company think that we can make some licence agreements with big coffee

companies in USA. Actually, our company’s aim to catch important market share in USA

so we can get some attention from Starbucks and DunkinDonats, we expect to sell our

coffee in these two companies stores.

First stage; product will show up on the internet, company will create a website which is

www.saray.com. This web will provide online selling and information about the Turkish

coffee. Company thinks distribution of the product can be issue so company will establish

one office and one warehouse in USA ( New England). Stocks and orders will be

provided by warehouse and office. The role of the office in USA will provide efficient

communication between company and USA customers.

Shipping and time: Shipping fee will be free for New England region and shipping time

will be 1-2 days. Other regions, shipping fee will be added to price and shipping will be

different based on which regions.

Our company had an agreeement with FEDEX which will provide our company’s

product shipping. When customer pruchase our product, our website will provide all

information about shipping.

2ⁿ stage; if online selling goes well, our company will negotiate in an agreement with

Stop&Shop market. Earlier negoatiations showed that if you sell your products in these

market stores, you should have some background about your products. Our aim is to get

in Stop&Shop stores.

3^rd stage is to get attention of Starbucks and DunkinDonats.

Our strategy is based on direct exporting. We already defined our market opportunity and

we solved our distribution issue in USA. Company with exporting agency will provide

exporting product from Turkey to Usa . The reason of why we use exporting agency is

that we don’t have any international experience as a company so we don’t want to meet

any problems during exporting process. Then, Company will send our products to our

warehouse which is in USA and warehouse will provide distribution of the products. If

we go to second stage of our strategy, we will still keep going to export our products.

Third stage; in this stage our strategy can be changed and we can review our current

strategy and we can think about another strategies.

Product Strategy:

Size and shape:

Coffee package: 1 Ib packages, desing of package will be demostrated traditional turkish

motives. Our product packaging will also be dsigned based on environmental concerns

and existing standards.

Color and text:

Our packaing desing will also be created based on government regulations, and our

promotional strategies.

Our company will give attention about language issues in labeling and cultural

meaning and implications.

First line of the product packaging will include one pot and 2 traditional cups.

Global promotion strategy:

We will choose domestic agency for advertisement of our product. This agecy should

have some experience in coffee industry and online selling. During promotion campaign,

our company will attend to local fairs about coffee industry, and company will provide

direct marketing for New England region, company will provide telemarketing strategy

for other regions of USA. In the second stage, our promotion strategy will be different,

our company’s budget will expend so company will make more effective promotion

strategies, such as sponsorship or Tv ads, radio ads, and newspaper ads.

Conlcusion:

Usa coffee market is very large and many new coffee producers try to enter in this

market. The advantages of coffee market in USA, all segments about coffee had already

existed, on the other hand there are big competitor in coffee market such as

DunkinDanots and Starbucks. Companies which want to enter in this market, they have

to come with gourmet coffee and traditional or different tastes of coffee. In addition, it is

still very difficult to compete these major coffee companies, and companies should not

expect to expand their market shares in short time. We think that companies have to make

good analysis of the market, customer expectations, reasonable market entry choice and

USA’s political and economic expectations.

Our project is based on direct exporting strategy, our company do export Turkish coffee

from Turkey to our USA office. Usa office will watch our USA sales and will control of

our warehouse.

Our project design, product design and market entry strategy will keep to continue

together. We believe that our company will be successful in USA coffee market, we have

good experience about coffee in our local market, international market will be first

experience for our company. We didn’t put huge expectations for market share in short

time, we created three steps and our investments will depend on developments of these

steps.

Work Cited

www.coffeereview.com/ www.coffeefarm.com

http://www.ico.org/ http://www.coffeeresearch.org/

www.coffeegeek.com http://www.dailyfutures.com/softs/

www.coffeeuniverse.com/ http://www.beveragedaily.com/

www.nationalgeographic.com/coffee/ www.dunkindonuts.com

www.coffeelibrary.com www.ineedcoffee.com

www.allaboutturkey.com/ www.turkeytravelplanner.com

http://en.wikipedia.org/wiki/Coffee www.turkishculture.org

http://www.the-infoshop.com/study/pf36064-coffee-us.html

Dell

Aybey Boran

DELL

Dell is among the world's leading computer manufacturers that has transformed and diversified into variety of business segments over the years. Products range from Dell PowerEdge servers, Power Vault, Dell EMC storage systems as well as PowerConnect switches for corporate clients. For individuals and professional customers products range from Dell Precision workstations, OptiPlex desktops, Dimension desktops, Inspiron and Latitude notebooks. Apart from these core products, the company also offer products and services range including printers, projectors, Axim handhelds, and other accessories. More recently, the company has announced intentions to explore LCD television/computer monitors as well as digital music players.

Spanning over 20 years, the company has always been associated with designing, manufacturing and customizing products and services to satisfy a diversified range of customers including individual customers to corporate and retailing businesses. The company's philosophy to deal with customers one-on-one has become a management model for other companies. Having gained the market leadership position in computer products and services, Dell's team has always been careful in sustaining its marketing strategy of providing standard-based computing solutions.

Dell's unique approach to manufacturing separates the different processes so that Dell is not reliant on singular production or supplier's chain for equipment production. Though there is no segregation of the different products and services but nevertheless in separating the components enabled it to target the customers based on the regions in which the products are manufactured. By assigning each regionalized production center particular component for production not only has diversified the risk of concentration of labor and production costs but also depending on particular infrastructure.

As you see from the chart, segment 1 prefers highly flexible PC’s. Flexibility refers in this situation to a PC’s ability to run several different kind of software, to be easily connected to printers and other peripherals, suitability for business as well as educational or game use. The brand nearest to segment1’s ideal point is HP but none of the brands really that close. Segment 2 which has the 50 percent of market size, seems to be satisfied with either IBM or Dell. Segment 2 likes High performance machines. Performance, by contrast, referred to speed of internet connection and internal calculations, support of the highest-end software programs, and reliability and accuracy of calculations. If we are talking about performance, Dell’s most serious competitor is IBM. Actually all brands have the same rate about the performance except IBM. Compaq and Hp seem more flexible than Dell. But still Dell is one of the closest brand to the segment 2(50% of market size).

According to our research, there is also the issue of global positioning. Dell's consumer base is not a typical American or Canadian but a wide range of customers from Asia, Latin America, and Europe as well each with distinct needs and requirements. The difference in corporate culture as well as professional attitudes towards IT products and services create a difficult need/requirement profile that would be challenging for Dell. As more and more consumers in developing regions like China, Brazil, France, and India grow to appreciate computerized environment, they also have complex needs. This way Dell would have a difficult time to incorporate a pervasive marketing strategy. Instead, it should maintain differential but integrative marketing strategy so that the company has a niche in each of the markets in which it manufactures products.

Nike in South Asia

Aybey Boran

Nike In Southeast Asia

Nike, which had been a victim of media offensive for quiet some time faced some serious criticism from media and human rights watchdog groups. Nike which had been subcontracting most of its manufacturing through its suppliers had to deal with issues ranging from workers’ physical and sexual abuse, underpayment of workers, unsafe and unhealthy work environment etc. But major issues among all of the ones mentioned above were substantially low wages paid to workers and physical punishments given to workers as a result of poor or slow performance. All these issues questioned the moral and ethical responsibilities that Nike must bear as one of the biggest and most profitable sports business in the U.S. and abroad. Essentially, Nike had no responsibility of any kind of workers who worked for its subcontractors. But since all these operations were maintained and operated solely for Nike, it bore responsibility for providing or pressurizing its suppliers to provide their employees and workers compliance with local government’s safety, health and wages regulations. The severity of criticism ranges from workers being made to work at minimum wages, in one instance, as low as $2 a day to physical abuse of workers up to a point where they passed out. In Vietnam Nike’s supplier made workers work for them without any pay increase for years and years until it was brought to government’s notice. All sort of physical and emotional abuse were reported including the extreme humiliation of workers. An example of that was beating of a 15 Vietnamese women by their forewoman on their faces by a shoe sole. Some critics even compared these practices to early 1900 sweatshop-era in United States. Also a leak memo from Nike’s internal audit revealed workers having respiratory problems due to poor ventilation system and level of harmful chemicals exceeding the standard set by government in Vietnam.

After all said and done, Nike tried hard both at international and local levels to regain its lost reputation. Although it is an overstatement to say that Nike lost its reputation, but this issue was big enough for Nike to implement some vital changes in its business practices and ethical standards in its manufacturing factories abroad. Even at its corporate level, Knight admitted that Nike was not prepared very well to deal with media offensive.

Nike’s image was tarnished in some circles or its brand loyalists, who had an impeccable image of it in their minds. It is quiet possible that Nike’s sales might have been affected due to its exposed business practices but overall Nike being such a big name and the largest producer of footwear in the world maintained a considerably good level of sales. It can also be considered another chance given to Nike by its consumer to improve the well-being of its overseas workers.

At national level, Nike established measures to improve its image in the eyes of its consumers, activist groups and government. Being harshly and bluntly criticized, it offered congress members to visit its factories. It also hired an accounting firm named Ernst and Young to do the audits of factories regarding safety and wage issues. Nike discontinued business with four of its factories that were allegedly paying less to their workers. It had its contractors signed a memorandum that abides them to comply with all the local and federal government rules and regulations. Not only that, but it also reconsidered increasing its public relations office staff. After so much scrutiny, Nike gave some serious thought to make some essential changes in its public policy and overseas manufacturing operations. Hiring Andrew Young, may have been a wise decision on Nike’s part but it didn’t appeal people generally. Although Nike sent him to his factories in Indonesia and Vietnam, it didn’t have much of an effect on its image. Andrew, hired due to his unique background, reported not much different from what Nike expected him to be. His reports which described Nike’s subcontractors’ business to be fair and ethical and according to health and safety standards, were published in almost all major newspaper to show the conformity with international safety laws. But this was just one effort to promote its image. Basically, it can be considered a countermeasure to nullify the effect of media offensive. At the moment and for the records it was a good effort but not that effective.

Phil Knight, a man who might have been under extreme pressure at the time, must have made this statement “ Nike can lead countries out of poverty” to blow off some steam. So far, we haven’t seen any good solid example where Nike or a company of equal size brought any country out of poverty. This is an overstatement. Nike probably won’t have changed its practices if it wasn’t brought into light. Still, its contribution made to those countries and surveys conducted by private groups differ a great deal. So it might not be what it seems like. If Nike really wants the welfare of its workers and laborers, it must start with wages that if not equal to U.S standards should be well above those countries’ local level. There is no denial in the fact that profitability is Nike’s ultimate motive. So it’s upto Nike to decide if it can afford to lose some of its profits.

As far as wages are concerned, Nike should let the international organizations,just any ones which are unbiased and fair, decide the fair minimum wage instead of relying on its own internal audits. Obviously, the wages need to be increased periodically to keep workers satisfied and happy with their work. Also, it shouldn’t just be about wages. It should also take measures to provide workers with improved job benefits such as affordable health insurance etc.. It is claiming to have increased wages but it should keep raising it every year to a considerable minimum level for its workers to survive the inflation and rising costs of living in those countries.

Nike learnt its lesson from its known or unknown mistakes. Nike has already made a great effort to reduce any future discrepancy. Still its unavoidable for it to avoid media and watchdog groups which make up for the large part of any scandal or scrutiny. Since we haven’t heard much since its last scandal, which means the issues were addressed, if not completely, at least to some extent which is a healthy sign both for its growth and prosperity. The best way will be to keep its workforce happy and especially strict laws and penalties should be imposed, should any subcontractor or factory owner mistreats or abuses his or her workers. It sets a good example for any other upcoming or large multinational corporations that workers’ safety, prosperity and well being are the top most priorities in its own prosperity and well-being.