Entry: A Transaction Cost Analysis and Propositions‚" Journal of International Business Studies‚ 17 (3)‚ 1-26. Bartlett‚ Christopher A. and Sumantra Ghoshal (1987)‚ "Managing across Borders: New Strategic Requirements‚" Sloan Management Review‚ 28 (4)‚ 7-17. Bartlett‚ Christopher A. and Sumantra Ghoshal (1988)‚ "Organizing for Worldwide Effectiveness: The Transnational Solution‚" California Management Review‚ 31 (1)‚ 1-21. Bartlett‚ Christopher A. and Sumantra Ghoshal (2000)‚ "Going Global Lesson
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Corporate Finance Nike‚ INC: Cost of capital 1. What is the WACC and why is it important to estimate a firm’s cost of capital? Do you agree with Joanna Cohen’s WACC calculation? Why or why not? Definition of WACC (Weighted Average Cost of Capital): WACC is basically the average of the cost of finance (debt and equity). Since a company’s assets can be financed by debt or equity‚ WACC can show the averages of the costs involved in the sources of financing. These costs are then weighted
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Corporate Social Responsibility (CSR) policies implemented by the organisation Nike when faced with an issue‚ to critically assess the effectiveness of these policies and lastly to offer recommendations. Company Background Based in Beaverton‚ Oregon‚ Nike Inc. is one of the world’s major distributors of sportswear and equipment with its operations spanning across the worlds six continents in over 160 countries (nikebiz‚ 2011). Nike is the world’s leading designer‚ marketer and distributor of authentic
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Nike CSR Corporate social responsibility can be defined as the "economic‚ legal‚ ethical‚ and discretionary expectations that society has of organisations at a given point in time" (Carroll and Buchholtz 2003‚ p. 36). The concept of corporate social responsibility means that organizations have moral‚ ethical‚ and philanthropic responsibilities in addition to their responsibilities to earn a fair return for investors and comply with the law. A traditional view of the corporation suggests that its
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BUSINESS ADMINISTRATION CASE STUDY – NIKE CSR (page 70) 1. In referring to the opening profile and the closing for this chapter‚ discuss the challenges regarding corporate social responsibility that companies in the apparel industry face in its supply chains around the world? Answer: There are 5 challenges related to CSR: a. Lack of awareness and benefit of CSR In fact‚ many of companies have little knowledge about CSR. In some cases‚ companies may have a greater understanding of CSR
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issues with Cohen’s calculation‚ and then analyze an new WACC to decide whether we should invest in Nike Inc. Many issues should be addressed regarding Joanna Cohen’s WACC calculation. First‚ to calculate the debt cost of capital‚ Cohen divided the total interest expense by the company’s average debt balance. This is an issue because she did not take into account the current yield on publicly traded Nike debt. Another issue that should be addressed is the calculation of the equity cost of capital. Using
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analysis assumes Nike debt is trading at par – it is not ▪ Equity should be based on market value‚ not book value ▪ Hence total will be based on market cap.‚ not balance sheet ▪ Her debt cost is wrong ▪ She should use the current or projected cost rather than a historic one ▪ i.e. use a Bloomberg terminal (other terminals are available) to research yields on debt of the same credit rating as Nike ▪ It is unlikely Nike has a cost of
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NIKE‚ INC.: COST OF CAPITAL Professor Meiberger By Sebastian Gomez Team 5 Cohort: Front The portfolio manager for NorthPoint Group‚ Kimi Ford was deciding if she should pitch in and draw Nike within NorthPoint Large-Cap Fund. Nike‚ which did not have the strongest fiscal year results in 2001‚ was implementing new strategies to heighten its revenue and income. Kimi Ford‚ after having carefully read reports by analyst‚ and their input within this publicly traded company decided to emphasize
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Marketing 301 Marketing Audit Prof Sriram December 4‚ 2012 Tyeisha Bydume Jonae Mayfield Jamillah Quinn The ambition for a perfect running shoe turned into a billion dollar company. Nike was founded in 1970 is today’s top shoe company. Nike serves people of all ages regardless of gender; they can service all your needs. From shoes‚ to clothes‚ to accessories‚ Nike has been an innovator in the global shoes business. This is why it is the leading brand in the shoe business over Adidas and
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Method 3 2. Summary 3 4. Overview/history of company 3 5. Reasons for outsource 3 6. Offshore or domestic 4 7. Pros and Cons of outsourcing to third world countries 5 8. Alternative recommendations 7 9. Conclusions:Is outsourcing a good thing 8 10. References 9 Method: Investigation on outsourcing within business. The outsourcing of trainer companies within developing countries with particular emphasis on Nike outsourcing history. Summary: Overview/history of company; Nike is one the leading
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