12 12/24 Do not write outside the Item D box During the 1990s, many Western businesses operating in other countries faced pressure from the public to investigate aspects of their business practices that were considered to be unethical. These included: using child labour . dangerous working conditions low wages . long working hours. Nike has been a leader in dealing with these concerns through factory audits that make sure the factories are behaving ethically. Nike directly forbids the use of underage employees or poor working conditions in factories that make Nike products. Nike also has a commitment to sustainability. Nike has promised to use scarce resources more carefully. These actions have improved Nike's reputation. Nike also has a variety of worldwide community activities, such as 'Made to Play.' This is a scheme that encourages young children to live active lives. 1 0. 7 Recommend whether Nike should be more concerned about: . being seen as an ethical business Or . paying high dividends to its shareholders. Use Items A, B, C and D to support your answer. [12 marks] 2 IB/M/Jun19/9225/2 1311 Do not write outside the 1 0. 6 Analyse the benefits to Nike of having a well-known logo to identify its brand. box [6 marks] Extra space10 Do not write outside the Item C box 10/24 Table 1 Revenue by year (US$ billions) 2014 2015 2016 2017 27.8 30.7 32.5 34.3 In 2017, Nike's revenue was more than any other sportswear company in the world. Nike has many competitors in the sportswear market. Nike's shareholders have been pleased with the company's performance, which has resulted in the possibility of increased dividends. Nike has consistently raised the payments to shareholders. Nike pays out between 20 and 30% of its profits as dividends. Table 2 Revenue in 2017 (US$ billions) Nike Adidas Under Armour Puma 34.3 24.6 5.0 4.8 1 0. 5 Using the information in Table 1, calculate the percentage increase in Nike's revenue between 2016 and 2017. Give your answer to one decimal place. Show your working. [2 marks] IBW/M/Jun19/9225/2 11 Do not write outside the 1 0. 6 Analyse the benefits to Nike of having a well-known logo to identify its brand. box [6 marks]9 Do not write outside the Item B box Nike has over 500 factories which are spread across more than 40 countries around the world. Nike also employs over one million people, which enables demand for its products to be met. Most of Nike's factories are located in three countries: China, Vietnam and Indonesia. These countries have a large supply of labour. In addition to this, the cost of land is relatively inexpensive. 1 0. 4 Analyse why Nike factories are mostly located outside the USA. [6 marks] Extra space Turn over8 Do not write outside the 1 0. 3 Explain two ways in which Nike could promote its brand. box [6 marks] Extra space Extra space7/24 7 Do not write outside the 1 0. 1 Identify and explain two ways in which competition affects Nike. box [4 marks] Extra space 2 Extra space 1 0. 2 Identify and explain two benefits to Nike of being a large business. [4 marks] Turn over 0 18/M/Jun19/9225/2' Macrame mum Section B N.- Answer all questions in the spaces provided. iii. Hike sports shoe with the corn peny "Swoosh" logo. Nlire is a multinational sportswear and fashion oornpany with its headquarters in the USA. Mike has over 1ooo shops worldwide: more than son of them are outside the USA. All Hilts products are designed and manufactured by Hilts. The world-famous "Swoosh\" logo can be seen on all its stores and on most of its products. Nlire often has celebrity sports stars in its advertising. using photographs and yideos of them wearing its products. Mike has been experiencing strong competition from litdldasr Puma and Under Armour. who regularly introduce new products. This competition reduces Nllte's market share. Nike realises that it will need to respond to this growing threat from its competitors. or. lBJH'JuiI-I'Qm