Executive Summary This report has been designed to identify Amazon’s strategy between 2007-2010 and also to pinpoint the company’s strategic capabilities. Internal and External analysis reveals Amazon’s position against its competitors as well as sources of value creation and cost reduction in its value chain. Amazon.com is a leading e-retailer and is a globally recognized brand‚ but is facing increasing competition from bricks and mortar companies setting up an online presence and current e-retailers
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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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Strategic Capabilities In this part of the report the different capabilities of Darden will be explained and which of these capabilities lead to competitive rivalry. But first the different resources and competences will be discussed which will lead to the capabilities. 1) Resource; A physical resource of Darden is; There different restaurants‚ with this is meant the different buildings that Darden owns with the different kind of restaurants. 1) Competence; The competence that Darden has is;
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Executive Summary Overview Nike is the market leader in athletic shoes in the United States. The Oregon based company has always utilized offshore facilities in low-income countries to produce at minimal costs followed by importation into predominantly the US for sales. Nike is quick to divest from emerging markets as costs rise and has recently signed short term production contracts with a long term strategy of production in China. Unlike Nike’s previous global endeavors‚ the political and cultural
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Founded in 1994‚ Nike Football has grown immensely to become one of the two market leaders in football apparel and footwear. Recognizing the vast opportunities the 2010 World Cup offers for their growth and differentiation from the competitors‚ they are considering a shift in their marketing strategy. Nike’s brand image is of an innovative company‚ focusing on the high performance of their products‚ while simultaneously offering extraordinary designs by partnering with many top-level footballers
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we used market value based on the share price of Nike on July 5‚ 2001and number of shares outstanding‚ which resulted in the weights of debt and equity of 10.2% and 89.8% respectively (see Exhibit 2). Cost of Debt: Cost of debt was calculated by Ms. Cohen by finding the historical interest rate of 2.7% and tax rate of 38%. We agree with her estimation of the tax rate of 38%‚ but calculated a cost of debt of 7.17% based on the market price of Nike bonds and finding their yield to maturity (see Exhibit
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Introduction - Nike Nike is the company with one of the most recognised logos in the world – the “swoosh” logo. They are the worlds’ largest sports and fitness company and are a leader in sports equipment research and development earning an estimated US$14 billion in revenue. Nike anticipates the needs of the consumer and this innovation is what sets them apart from its competition. They have a desire to design products which will give definite technological benefits whilst enhancing an athletes’
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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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