Graduate School of Business Administration University Version 2.0 of Virginia UVA-F-1353 Version 2.0 Nike‚ Inc.: Cost of Capital On July 5‚ 2001‚ Kimi Ford‚ a portfolio manager at NorthPoint Group‚ a mutual fund management firm‚ pored over analyst write-ups of Nike‚ Inc.‚ the athletic shoe manufacturer. Nike’s share price had declined significantly from the start of the year. Kimi was considering buying some shares for the fund she managed‚ the NorthPoint Large-Cap Fund‚ which invested mostly in
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Advertising and Public Relations | | Executive Summary Best known for their “Just do it” branding‚ Nike was founded in 1955 by an athlete named Phil Knight who ran track for Bill Bowerman. Originally starting as a footwear distributor for a company known today as “ASICS”‚ the founders of the company decided to take a different approach to their business. When they launched their Nike line‚ they realized that having an athlete endorse their shoes would be a great way to reach out to the world
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An example of an operational strategy I found was within the NIKE organization. NIKE was created in 1972‚ by co-founder Bill Bowerman & his University of Oregon runner Phil Knight. Together‚ with the people they hired‚ the company was able to grow and expand from a U.S. based footwear distributor to a global marketer of athletic footwear‚ apparel & equipment that is unrivaled in the world today (www.nikeinc.com). Operations strategy is the development of a long term plan for using the major resources
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California and though up the name "NIKE" in 1971. It was around this time that Blue Ribbon Sports and Onitsuka parted ways and Bowerman and Knight set up their own brand which we know as Nike today. Nike created one of the most recognisable symbols in the world today with the Nike "Swoosh". It can be seen on all their advertising campaigns and more importantly all over the clothes of the sportsmen and women endorsing the Nike brand. The first man Nike endorsed was a track runner name Steve
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INTRODUCTION: A portfolio manager at North Point Large cap Fund‚ Kimi Ford‚ considers buying shares of Nike‚ Inc. for her mutual fund management firm. In the mid of 2001‚ Nike arranges for an analyst meeting to disclose its Fiscal year results and also to discuss on renewing its strategies to boost its sales growth‚ profits and market share which were all declining. To cope from the situation it decides to develop athletic shoes in the mid-price segment‚ enhance revenues from its apparel line
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Nike: The Sweatshop Debate MGT/448 May 31‚ 2010 Instructor: Adrianne Ford Nike: The Sweatshop Debate The purpose and intent of this paper is to describe the legal‚ cultural‚ and ethical challenges that face the Nike Corporation in their global business ventures. This paper will also touch on the roles of the host government and countries where Nike manufactures their products and the author will summarize the strategic and operational challenges that Nike managers face in globalization of
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customers and market Nike typically targets athletes‚ men and women generally from the ages 15-30. Their target market is people who are active and enjoy higher quality sporting goods and merchandises. NIKE targets all regions with their geographic expansion. Under its Golf brand‚ Nike sells golf balls‚ golf clubs and apparel for both men and women. Nike should continuously develop innovative and stylish golf products to command premium prices. Most people would appreciate as Nike Golf brand has good
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Case Study: Nike‚ Inc.‚ and Sweatshops Summary: As a company‚ Nike has been the dominant presence in the athletic apparel industry globally. Although they were not the only company known to practice unethical manufacturing processes‚ they were the major target of criticism because of their leadership role. To fight back against the negative publicity‚ Nike changed many working conditions and practices‚ arranged for independent audits by very reputable individuals in the industry to rate these
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Proposal for Making Better Working Conditions for NIKE Factory Workers Prepared for Mark Parker‚ CEO Charlie Denson‚ President Philip H. Knight‚ CBD Board of Directors By Michael Espiritu Oscar Mejia Jorge Reinoso November 20‚ 2012 Concerned College Students 12345 Fairness Dr. Westlake‚ CA 90002 1(818) 555-6969 November 06‚ 2012 Michael Espiritu Oscar Mejia Jorge J. Reinoso Nike Board of Directors Nike World Headquarters One Bowerman Drive Beaverton‚ OR
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Nike Inc. Case 1. What is the WACC and why is it important to estimate a firm’s cost of capital? WACC is weighted average cost of capital‚ which is the expected rate of return on average from all the company’s existing debts and securities. It takes into account all different types of financing in the company’s capital structure. The reason it is important to estimate WACC is because it measures what it costs the firm to take on a project based on its current Debt and Equity mix. When the
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