Q2. A) Springs, In., has set up a licensing agreement with a manufacturer in the Czech...

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Q2. A) Springs, In., has set up a licensing agreement with a manufacturer in the Czech Republic. When Springs receives orders for its products from customers in Eastern Europe, it relies on this manufacturer to produce and deliver the products ordered. This expedites the delivery process and may even allow Springs to have the products manufactured at a lower cost than if it produced them itself. If springs Inc. starts producing itself what are the advantages and disadvantages? B) The evolution of Nike began in 1962 when Phil Knight, a business student at Stanford's business school, wrote a paper on how a U.S. firm could use Japanese technology to break the German dominance of the athletic shoe industry in the United States. After graduation, Knight visited the Unitsuka Tiger shoe company in Japan. He made a licensing agreement with that company to produce a shoe that he sold in the United States under the name Blue Ribbon Sports (BRS). In 1972, Knight exported his shoes to Canada. In 1974, he expanded his operations into Australia. In 1977, the firm licensed factories in Taiwan and Korea to produce athletic shoes and then sold the shoes in Asian countries. In 1978, BRS became Nike, Inc., and began to export shoes to Europe and South America. As a result of its exporting and its direct foreign investment, Nike's international sales reached $1 billion by 1992 and were more than $7 billion by 2007. What inspiration do you get from this research project. (10 marks) Q2. A) Springs, In., has set up a licensing agreement with a manufacturer in the Czech Republic. When Springs receives orders for its products from customers in Eastern Europe, it relies on this manufacturer to produce and deliver the products ordered. This expedites the delivery process and may even allow Springs to have the products manufactured at a lower cost than if it produced them itself. If springs Inc. starts producing itself what are the advantages and disadvantages? B) The evolution of Nike began in 1962 when Phil Knight, a business student at Stanford's business school, wrote a paper on how a U.S. firm could use Japanese technology to break the German dominance of the athletic shoe industry in the United States. After graduation, Knight visited the Unitsuka Tiger shoe company in Japan. He made a licensing agreement with that company to produce a shoe that he sold in the United States under the name Blue Ribbon Sports (BRS). In 1972, Knight exported his shoes to Canada. In 1974, he expanded his operations into Australia. In 1977, the firm licensed factories in Taiwan and Korea to produce athletic shoes and then sold the shoes in Asian countries. In 1978, BRS became Nike, Inc., and began to export shoes to Europe and South America. As a result of its exporting and its direct foreign investment, Nike's international sales reached $1 billion by 1992 and were more than $7 billion by 2007. What inspiration do you get from this research project. (10 marks)

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A Advantages and disadvantages of inhouse production by Springs Inc Benefits 1 It can take the oppor... View the full answer