What is a Sweat Shop? According to the US department of Labor‚ it is a factory that violates 2+ labor laws. Sweatshops often have poor working conditions‚ unfair wages‚ unreasonable hours‚ child labor‚ and a lack of benefits for workers. Why do Sweatshops exist? They are a product of the global economy and the so-called “free” trade. Companies increase profits by driving down costs any way possible‚ so they set up low-cost factories. To minimize costs‚ companies look for places with the lowest wages
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NIKE CASE STUDY 1. Why is it important to estimate a firm’s cost of capital? What does it represent? Is the WACC set by investors or by managers? Weighted average cost of capital or WACC represents the overall cost of capital in the company. It takes into considerations cost of debt and cost of equity. As company’s value can grow by increasing its assets that could be financed either be debt or equity and cost of capital shows how much it costs to do that. Cost of capital is a very important component
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decisions that Nike has made as a company and highlight the issues pertaining to its followed consequences. Let us now examine some ethics theories and observe the case of Nike in this light. Egoism - This theory states that individuals or corporations have a right to guide their conduct placing ones own interest foremost in rational decisions. Through this theory one can justify the placement of profits or revenue generation as the high attained goal of an entity. In this regards Nike has played to
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Globalization of economies and the idea of capitalism in the developing countries make sweatshops inevitable. Consequently‚ there is an increased demand for cheap labor from the developing countries to work in the sweatshops (Berliner et al.‚ 2015). Nonetheless‚ the operations of the sweatshops are extraordinarily oppressive and unethical. Corporations take advantage of the poverty heights in developing countries to exploit and infringe the worker’s human rights. Biblically‚ the argument that this
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Nike (NKE) In the 1950’s‚ Bill Bowerman‚ a track and field coach at the University of Oregon‚ began cobbling shoes for his runners. Bowerman and one of his runners Phil Knight formed Blue Ribbon Sports and sold shoes for Tiger shoes in 1964. While Knight was selling the shoes‚ Bowerman was ripping them apart to see how he could make them lighter and made his runners test his improved shoes. Their first full-time employee‚ Jeff Johnson‚ was an early designer of shoes and came up with the name Nike
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the workroom‚ try to touch and hug them and threaten to fire them if they refuse. We were told of the dehumanizing verbal and physical abuse; managers scream at workers…” (Feminists Against Sweatshops). Additionally‚ there are many cases of factory fires killing hundreds of workers due to locked doors. Sweatshops often violate two or more Universal Declaration of Human Rights‚ such as‚ the right to life and living in freedom and safety (3)‚ no slavery (4)‚ no torture‚ cruel‚ or degrading treatment
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man and Phil Knight‚] and officially became Nike‚ Inc. on May 30‚ 1971. The company takes its name from Nike (Greek Νίκη‚ pronounced the Greek goddess of victory. Nike markets its products under its own brand‚ as well as Nike Golf‚ Nike Pro‚ Nike+‚ Air Jordan‚ Nike Blazers‚ Air Force 1‚ Nike Dunk‚ Air Max‚ Foamposite‚ Nike Skateboarding‚ and subsidiaries including Brand Jordan‚ Hurley International and Converse. Nike also owned Bauer Hockey (later renamed Nike Bauer) between 1995 and 2008‚ and previously
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Unit 8- LS312 STRATEGIC PLANNING‚ POLICY AND CONTROL Denia Mukusha Kaplan University Cost Justified Compensation /Discrimination This case takes place in a large computer operations company. The stakeholders in this case are as follows: Joe‚ who has been recently promoted to the position of District Manager of Computer Operation. Mary is the Divisional Manager of Information Systems and Joe reports directly to her. John is the President and CEO of the company and the immediate boss to Mary
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| NIKE‚ INC.: COST OF CAPITAL | | | | | | Introduction Our report aims to help Kimi Ford make a decision on her investment of Nike. We choose WACC as our method to estimate the cost of capital‚ which can be used as a discount rate to verify whether Nike is correctly valued in current market. We have mainly four steps to calculate WACC: I. Identify the type of cost of capital; II. Figure out the weights of debt and equity; III. Calculate the cost of debt and equity respectively;
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Mini Case Chapter 11 a. What is capital budgeting? Capital budgeting is the decision process that managers use to identify those projects that add value to the firm’s value‚ and as such it is perhaps the most important task faced by financial managers and their staff. The process of evaluating projects is critical for a firm’s success. Capital budgeting is • Analysis of potential additions to fixed assets • Long term decisions; involving large expenditures • Very
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