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).

The assignment is to answer the question provided above in essay form. This is to be in narrative form. Bullet points should not be used. The paper should be at least 2 - 3 pages in length, Times New Roman 12-pt font, double-spaced, 1-inch margins, and utilizing at least one outside scholarly or professional source related to organizational behavior. This does not mean blogs or websites. This source should be a published article in a scholarly journal. This source should provide substance and not just be mentioned briefly to fulfill these criteria. The textbook should also be utilized. Do not use quotes. Do not insert excess line spacing. APA formatting and citation should be used.

Question 1

Nike is not ethical in mentioning the credible threat to its current manufacturers when it does not have an intentions of entering the market. The intention being that it will make the manufacturers become aware of their efforts and activities. In addition, they may reduce their cost of supplying goods to Nike with the motive of restricting them from entering into the manufacturing market. This will end up lowering the revenue of the manufacturing companies and enable it for Nike.  This is viewed as a bullying tactic to make the prices of the suppliers low. Conferring to Schleper, Blome, and Wuttke (2017), source chain bullying is when a large company uses the disparity of power in their relations to squeeze their producers and contractors. Therefore, it is unethical since Nike is doing so with the intention of reducing their purchasing costs at the expense of its suppliers.

Nike Company may opt to emphasize on a number of aspects such as the price which is one of the most guaranteed aspect in which it would focus on. The company can end up requesting the suppliers to reduce the cost of supplying the goods and the delivery time Nike Company would need to request for reduction in the product delivery time from their usual suppliers. Lastly, Nike can negotiate the quality of material used by the manufacturers in production.

Question 2

Data protection is complicated. Protection is nevertheless essential because of the complexity of the environment based on technology and information. Business activities driven by technology are becoming increasingly popular leading to an increase in the volume of consumer data to be stored. Failure to protecting consumer data can lead to many risks.

As a result of multi-directional demand, data protection is urgently needed. Protecting data remains a critical role in information security for developing and implementing strategies to enhance and comply with data privacy policies and guidelines. Policies must be technically efficient, socially acceptable, and legally justifiable in light of the myriad issues that arise after implementation and signature.

The following are the compliance obligations that companies need to start preparing in order to protect consumer data.

Companies are responsible for fulfilling consumer control wishes. The GDPR seeks to enhance personal data control for persons by providing uniformity throughout the European Union and to simplify the regulatory environment for online companies. The rules also cover data transport, which enables an individual to ask for the transfer of personal data in a commonly used format from one processing system to another. Businesses that break the rules risk being heavily fined.

GDPR applies to companies that collect consumer data. Penalties for noncompliance can vary depending on the severity and type of violation. Data protection laws are progressing to the point where firms that have not been complying will have a difficult time catching up, giving firms that have complied a competitive advantage in implementing efficient data privacy systems and processes. It is critical for brands to maintain a reputation as a firm that respects and responds to client privacy concerns. When done correctly, using consumer data to improve shopping experiences can improve a brand's relationship with its customers.

Furthermore, a brand's relationship with its customers can become more personal and complicated. Brands and retailers who do business online must accept their roles as data guardians. Unlike in the past when what mattered the most was doing the right thing, today firms must focus on the price of doing business in some of the most desirable global markets. Organizations adhering to international data protection standards do not store customer data longer than is absolutely necessary and do not transfer personal data to nations that have insufficient data protection standards.

Alliances and shopping can lead to higher prices for consumers. The previous purchase of AOL by Verizon was discussed and Yahoo said that the digital marketing company would accelerate. The deal with Yahoo should have been backed by Verizon because of the scope and duration of the security issues that were discovered in the fall of 2016. (Carter, 2020). The Yahoo Intrusion distinguishes itself by its sheer size, which for Internet users turns to the company for web searches, e-Mail accounts, users' groups and news reports. The company has a formerly commissioned position for Internet users.