Nike Case Study
Financial and Non-Financial Justifications
Nike is the largest seller of athletic footwear and apparel in the world that selling products primarily through a combination of retail accounts.Nike itself owned a retail, including independent distributors, stores and e-commerce ,franchisees and licensees worldwide. Build a profitable global portfolio of branded footwear, apparel, equipment and accessories businesses is a goal of the company while their strategy is to achieve long-term revenue growth by producing an innovative technology products.
Based on the history, revenues in the first and fourth fiscal quarters have slightly exceeded with the second and third quarters. The changes of season and geographic demand for certain types of footware, apparel and equipment could make the mix of product sales looks quite considerably. Because of the Nike is a company of consumer products, the relative popularity of various sports and fitness activities and changing design trends will affect the demand for the product. Failure to respond in a timely, efficiency and effectively could have a material adverse effect on sales and profitability.Nike has reported it’s brand operations based on the internal geographic organization. Each NIKE brand geography operates especially in one industry which are the design, production, marketing and selling the products.
Nike’s has long-term of financial goal to be achieve which are high single-digit revenue growth, mid-teens earnings per share growth, increased return on invested capital and accelerated cash flows, and consistent results through effective management of Nike diversified portfolio of businesses. This long-term strategy had been adopted since 2001 and as a result, Nike’s revenues and earnings per share have grown 9% and 14% respectively. At the same time, the company return on invested capital also increased from 14% to 18%. On 2009, revenues of the company grew 3% to $19.2 billion while net income had decreased 21% to $1.5
Nike is the largest seller of athletic footwear and apparel in the world that selling products primarily through a combination of retail accounts.Nike itself owned a retail, including independent distributors, stores and e-commerce ,franchisees and licensees worldwide. Build a profitable global portfolio of branded footwear, apparel, equipment and accessories businesses is a goal of the company while their strategy is to achieve long-term revenue growth by producing an innovative technology products.
Based on the history, revenues in the first and fourth fiscal quarters have slightly exceeded with the second and third quarters. The changes of season and geographic demand for certain types of footware, apparel and equipment could make the mix of product sales looks quite considerably. Because of the Nike is a company of consumer products, the relative popularity of various sports and fitness activities and changing design trends will affect the demand for the product. Failure to respond in a timely, efficiency and effectively could have a material adverse effect on sales and profitability.Nike has reported it’s brand operations based on the internal geographic organization. Each NIKE brand geography operates especially in one industry which are the design, production, marketing and selling the products.
Nike’s has long-term of financial goal to be achieve which are high single-digit revenue growth, mid-teens earnings per share growth, increased return on invested capital and accelerated cash flows, and consistent results through effective management of Nike diversified portfolio of businesses. This long-term strategy had been adopted since 2001 and as a result, Nike’s revenues and earnings per share have grown 9% and 14% respectively. At the same time, the company return on invested capital also increased from 14% to 18%. On 2009, revenues of the company grew 3% to $19.2 billion while net income had decreased 21% to $1.5
References: http://news.investors.com/technology/121112-636622-nike-apple-relationship-growing.htm http://www.fastcodesign.com/1665872/with-fuelband-nike-aims-to-crush-jawbone-up-and-overhaul-nike http://www.fastcompany.com/most-innovative-companies/2013/nike http://nikeinc.com/pages/consumer-affairs http://www.123helpme.com/nike-and-international-strategy-view.asp?id=166603 http://www.allfreeessays.com/essays/Nike-Crm-Implementation/19171.html http://media.corporate-ir.net/media_files/irol/10/100529/AnnualReport/nike-sh09-rev2/docs/Nike_2009_10-K.pdf