Case note on Nike Cost of Capital Group 2 Members : Devendra Rane‚ Vivekkumar Nema‚ Chandrashekhar Joshi‚ G. Ajithkumar‚ Prakash Shetty Case Background: * NorthPoint Large Cap Fund weighing whether to buy Nike’s stock. * Nike has experienced sales growth decline‚ declines in profits and market share. * Nike has revealed that it would increase exposure in mid-price footwear and apparel lines. It also commits to cut down expenses. * Kimi Ford’s initial assessment at a discount rate
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NIKE Case Study Krystle Guerrero University of Phoenix MGT 448 Professor Michael Ladah The Nike Corporation is the world’s leading supplier of athletic shoes and apparel. The company takes its name from the Greek goddess of victory‚ and has fulfilled its reputation of being victorious in the sporting good industry for over a decade. Nike has amassed skyrocketing production numbers through independently contracting companies outside of the United States to manufacture
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Amanda Merkatz Management 301-02 Case Study 11 11252895 1. How does Nike’s decision to retain an in-house arm of ad agency Wieden & Kennedy exemplify the concept of organizational design? The decision to retain an in-house arm of ad agency exemplify the concept of organizational design‚ makes you look at how both companies interpret organizational design. Organizational design is the process of creating structures that accomplish the company’s missions and objectives. First looking at the text
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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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1. In referring to the opening chapter and closing case for this chapter‚ discuss the challenges discussing corporate social responsibility that companies in the apparel industry face in its supply chains around the world? a. Apparel manufacturers and distributors face many unethical horizons when conducting business overseas. There primary goal in outsourcing is to reduce costs anywhere deemed possible. Although‚ companies such as Nike fall into a slippery slope when production is high‚ exposure
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"Nike is criticized for using sweatshops in countries like Indonesia and Mexico. The company has been subject to much critical coverage of the often poor working conditions and the exploitativeness of the cheap overseas labor." answers.com 1. Should Nike be held responsible for working conditions in foreign factories that it does not own‚ but where sub-contractors make product for Nike? Yes‚ but I do not believe that the firm is 100% responsible since it is the sub-contractors who operate
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in the stocks of Nike for the fund that she manages. • Ford should base her decision on data on the company which were disclosed in the 2001 fiscal reports. While Nike management addressed several issues that are causing the decrease in market sales and prices of stocks‚ management presented its plans to improve and perform better. • Third party sources also gave their opinions on whether the stock was a sound investment. WACC CALCULATION: Cost of Capital Calculations: Nike Inc Cohen calculated
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A Case Analysis of Nike: The Sweatshop Debate Mindi Merritt Class Fall 2014 Instructor’s Name Introduction Nike is a hugely successful global industry that designs and markets shoes and apparel (Coakley & Kates‚ 2013). Most of Nike’s products are subcontracted and manufactured overseas in countries such as China‚ India‚ Vietnam‚ Indonesia and Korea. For decades‚ Nike has been embroiled in controversy where critics claim its products are manufactured in foreign factories with substandard
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Nike Case Study By Mark Colasurdo‚ Andrew McMullen‚ Jonathan Burd‚ Gaoxing Feng‚ and Jie Leng Background: Kimi Ford‚ a portfolio manager at North Point Group‚ is looking into the profitability of investing in the stocks of Nike for her fund that she manages. She is supposed to base her decision the company’s data which was disclosed in the 2001 fiscal reports. While Nike management had addressed several issues that are causing the decrease in market sales and stock price‚ management presented
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HITTING THE WALL: NIKE AND INTERNATIONAL LABOR PRACTICES Jeff Ballinger is a labor activist since high school who believes that any company should have a significant obligation towards even its lowliest workers. While being assigned to run AAFLI (Asian-American Free Labor Association) he was charged to investigate labor conditions in Indonesia plants and study minimum wage compliance by American companies. He chose Nike as his main target in effort to change labor conditions in manufacturing
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