Nike Case Study
1.0 Summary of case study
NorthPoint Group is a mutual fund management firm which invested mostly in Fortune 500 companies. Its top holding included ExxonMobil, General Motors, McDonald’s, 3M and other large cap. NorthPoint Group performed extremely well although the stock market had declined over 18 months. In 2000, it earned a return of 20.7% while the S&P 500 fell 10.1%. At June 2001, NorthPoint Group’s return stood at 6.4% while the S&P 500 stood at -7.3%. Nike, Inc. is an American multinational corporation which is founded on January 25, 1964 as Blue Ribbon Sports by Bill Bowerman and Phil Knight and officially became Nike, Inc. on May 30, 1978. The company is engaged in the design, development and worldwide marketing and selling of footwear, apparel, equipment, accessories and services. The headquarter of the company is near Beaverton, Oregon, in the Portland metropolitan area, and is one of only two Fortune 500 companies headquartered in Oregon. It is the world 's leading supplier of shoes and apparel and a major manufacturer of sports equipment, with revenue in excess of US$24.1 billion in its fiscal year 2012 with an ending May 31, 2012. As of 2012, it employed more than 44,000 people worldwide. The brand alone is valued at $10.7 billion making it the most valuable brand among sports businesses.
On July 5, 2001, Nike’s share price had declined significantly from the beginning of the year while Kimi Ford, a portfolio manager at Northpoint Group, a mutual fund management firm, pored over analysts’ write-up of Nike Inc. On June 28, 2001, Nike held an analysts’ meeting to disclose its fiscal year 2001 results with another purpose of Nike management wanted to communicate a strategy for revitalizing the company. In the meeting, management revealed plans to address both top-line growth and operating performance. In 1997, the revenue of Nike Inc. was stable around $9 million while the net income has declined from $800 million to $580 million. Nike Inc. market
NorthPoint Group is a mutual fund management firm which invested mostly in Fortune 500 companies. Its top holding included ExxonMobil, General Motors, McDonald’s, 3M and other large cap. NorthPoint Group performed extremely well although the stock market had declined over 18 months. In 2000, it earned a return of 20.7% while the S&P 500 fell 10.1%. At June 2001, NorthPoint Group’s return stood at 6.4% while the S&P 500 stood at -7.3%. Nike, Inc. is an American multinational corporation which is founded on January 25, 1964 as Blue Ribbon Sports by Bill Bowerman and Phil Knight and officially became Nike, Inc. on May 30, 1978. The company is engaged in the design, development and worldwide marketing and selling of footwear, apparel, equipment, accessories and services. The headquarter of the company is near Beaverton, Oregon, in the Portland metropolitan area, and is one of only two Fortune 500 companies headquartered in Oregon. It is the world 's leading supplier of shoes and apparel and a major manufacturer of sports equipment, with revenue in excess of US$24.1 billion in its fiscal year 2012 with an ending May 31, 2012. As of 2012, it employed more than 44,000 people worldwide. The brand alone is valued at $10.7 billion making it the most valuable brand among sports businesses.
On July 5, 2001, Nike’s share price had declined significantly from the beginning of the year while Kimi Ford, a portfolio manager at Northpoint Group, a mutual fund management firm, pored over analysts’ write-up of Nike Inc. On June 28, 2001, Nike held an analysts’ meeting to disclose its fiscal year 2001 results with another purpose of Nike management wanted to communicate a strategy for revitalizing the company. In the meeting, management revealed plans to address both top-line growth and operating performance. In 1997, the revenue of Nike Inc. was stable around $9 million while the net income has declined from $800 million to $580 million. Nike Inc. market
References: DRAGONWTX. (2012, March 19). Nike, Inc.: Cost of Capital. Retrieved March 20, 2013, from Blogger: http://lepicisheng.blogspot.com/2012/03/nike-inc-cost-of-capital.html emfps. (n.d.). Retrieved from emfps.blogspot.com: http://emfps.blogspot.com/2011_06_12_archive.html Jmatsanurai. (2009, October 17). Nike Case Study. Retrieved March 20, 2013, from Scribd: http://www.scribd.com/doc/21188529/Nike-Case-Study tienucd. (n.d.). Retrieved March 20, 2013, from tienucd.blogspot.com: http://tienucd.blogspot.com/2012/05/nike-inc-analysis-cfm-corporate-finance.html Zywmelody. (2012, June). Case Study of Nike Company. Retrieved March 20, 2013, from Studymode: http://www.studymode.com/essays/Case-Study-Of-Nike-Company-1018065.html