Management Question

Learning Goal: I’m working on a management writing question and need support to help me learn.

Question I – Nike is a large and successful firm in the design of athletic shoes. It could easily decide to forward-integrate and manufacture the shoes it designs. Thus, the firm has a credible threat over its current outsourced manufacturers. If Nike has no intention of actually entering the manufacturing arena, is it ethical for the Nike supply chain management to bring up this credible threat during annual pricing negotiations? What are some reasons Nike may want to consider such a vertical integration more seriously?

Question II – In the fall of 2016 Yahoo disclosed several major security breaches involving more than 1.5 billion user accounts. The results of these disclosures delayed the purchase by Verizon and reduced the Yahoo purchase price by at least $300 million. In June 2017 Yahoo shareholders agreed to the final sale to Verizon, nearly a year after the purchase was announced. What responsibility do firms have for the protection of customer data provided in the operation of their firm? Should Verizon have backed out of the deal with Yahoo given the scale and duration of the security issues brought to light in the fall of 2016? (see related article and video, “Why Verizon Decided to Stick With Yahoo Deal after Big Data Breaches,” WSJ).

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