CASE 14 NIKE‚ INC.: COST OF CAPITAL Cost of capital denotes the opportunity cost of using capital for a particular investment as oppose to the alternative investment which has similar systematic risk. It is extremely important since it is used in evaluating whether a project is feasible or not in the net present value (NPV) analysis‚ or in assessing the value of an asset. WACC (weighted average cost of capital) is the proportional average of each category of capital inside a firm (common
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Nike vs Puma Easily the biggest grudge match in Germany this month will not be between two of the countries competing‚ but between homegrown Adidas and‚ of course‚ American arch-rivals Nike. The business media is already hot on the Stripes versus the Swoosh‚ with the German brand reportedly splashing out double Nike’s estimated £60m World Cup marketing spend. But what about the shirts themselves? Which ones would you want to play in‚ and which should be left on the backs of the die-hards down the
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A Cultural Study and Political Ecology of Nike Partially excerpted from Petrina‚ S. (2001). The political ecology of design and technology education: An inquiry into methods. International Journal of Technology and Design Education 10‚ 207-237. When we put our comfortable shoes on in the morning and take a step‚ our steps are always already scripted within powerful cultural processes. Shoes‚ no more so than the apparel covering our bodies‚ happen to provide particularly robust examples of how
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Just Do It "Nike"‚ is it for everyone? Every athlete? Or every soccer player? This particular Nike advertisement is trying to bring excitement and passion to the viewer. It is trying to bring the viewer to a state of mind in which he or she is really "pumped". Where the viewer can fully understand and intake the broad yet specific message that can directed to every athlete‚ soccer player and your average Joe. When looking at this advertisement the viewer is able to notice that there are three
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approach‚ which was previously effective for Nike‚ centers all the business activities on continually innovating‚ improving and refining its products while it is under the assumption that customers simply want the best possible quality for their money. But due to changing circumstances and to pursue customer loyalty‚ Nike adapted the category driven approach which is derived from customer usage and purchase patterns. Post- internal and external analysis Nike concluded that there are primarily six major
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Nike Research Paper By‚ Mykle Rud The story of Nike and how it came about is remarkable in the sense of it was just a random idea that Phil Knight (now the CEO of Nike) was forced to come up with because of a business class Phil took at Stanford Graduate College. Now that is just a glimpse of the start of the company that would soon become the top sports apparel and sneaker producer for both male and female genders. I hope by the time this research paper is over you have an appreciation for what
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brands were Nike‚ Adidas and Puma. Once we had our brands‚ we had to discuss our objectives and from which company’s perspective were we conducting research for. We chose the brand Nike‚ as it has one of the most recognized symbols in the world. Our research was conducted as though we were working for the brand manager of Nike‚ in an approach to analyze Nike’s strengths and weaknesses by comparing them to the other brands of Adidas and Puma. From there‚ we wanted to determine what areas Nike needs to
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The Shareholders vs. Stakeholders Debate T he stakeholder theorists smell blood. Scandals at Enron‚ Global Crossing‚ ImClone‚ Tyco International and WorldCom‚ concerns about the independence of accountants who are charged with auditing financial statements‚ and questions about the incentive schema and investor recommendations at Credit Suisse First Boston and iMerrill Lynch have all provided rich fodder for those who question the premise of shareholder supremacy. Many observers have claimed that
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Nike versus Adidas As companies decided to dip into new markets‚ they develop a marketing plan‚ review external and internal contingencies and complete a SWOT analysis on their organization and competitors. Adidas is one of those companies that have completed this task as it prepares to fight against Nike to become the number one company in the market for footwear and sports apparel. With Adidas and Nike being in the same market they have similar external contingencies‚ yet different views
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Nike Nike is a major publicly traded sportswear and equipment supplier based in the United States. was founded in 1962 as Blue Ribbon Sports by Bill Bowerman and Philip Knight‚ and officially became Nike‚ Inc. in 1978. It is the world’s leading supplier of athletic shoes and apparel and a major manufacturer of sports equipment. Nike markets its products under its own brand as well as Nike Golf‚ Nike Pro‚ Nike+‚ Air Jordan. Point Of Parity (POP) Nike catagorized itself in the high-end sport shoes
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