NIKE Business Case Study Management Theory (BUS830-13) Submitted to: Dr. J. Saleeby Done by: Rola El Cheikh 201005281 Thursday‚ December 23‚ 2010 Executive Summary Nike hit the ground running in 1962. Originally known as Blue Ribbon Sports‚ the company focused on providing high quality running shoes designed especially for athletes by athletes‚ at competitive prices. Today‚ Nike is the world’s leading maker of athletic shoes‚ equipment and apparel. Nike has invested highly on marketing
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Flexible Specialisation and the persistence of the sweatshop Sweatshops are known to be a mass of workers mass-producing goods they may never be able to afford themselves. The sweatshop rose to meaning as work moved off the farm and into the city‚ and employers found a limitless amount of so called labourers to make their products. The low entry costs and high labour intensity linked with the textile industry tended to concentrate sweatshops in clothing production. As industrialization grew‚ labour
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Nike‚ Inc. : Case Study in Operations Management MGT 441 Prepared for: Dr. Davidson‚ Concord University Prepared by: Jeremiah Nelson Johnathan Coleman Emily O’Dell December 4th‚ 2012 Introduction Low-cost‚ time-efficient manufacturing of goods is a key feature of a successful production company in today’s competitive global economy. Operations management‚ often abbreviated in the business world as OM‚ is defined as “...the set of activities that creates value in the form of goods
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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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| 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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Marketing Management Nike What are the pros‚ cons and risks associated with the Nike’s core marketing strategy? Nike’s core marketing strategy is tag lined as “Pyramid of Influence”. This marketing strategy helps Nike gain competitive advantage over the competitors. Nike’s core marketing strategy is tag lined as “Pyramid of Influence” Nike heavily depends on the successful athletes for marketing and selling its products. Professional athletes such as Tiger wood‚ Michael Jordan‚ Lance Armstrong
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calculation? Why or why not? 2. If you do not agree with Cohen’s analysis‚ calculate your own WACC for Nike and justify your assumptions. 3. Calculate the costs of equity using CAPM‚ the dividend discount model‚ and the earnings capitalization ratio. What are the advantages and disadvantages of each method? 4. What should Kimi Ford recommend regarding an investment in Nike? 2 Case Overview Nike‚ Inc. NorthPoint Group Investment Decision Current share price of USD 42.09 Declining market share
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provide suggestions to boost revenue. The targets provided by management included long-term revenue growth of 8-10% and earnings growth above 15%. Kimi Ford‚ a portfolio manager at NorthPoint Group has been tasked with analyzing Nike and coming up with a valuation for Nike so that her company can decide whether it is a good investment or not. She found that at a discount rate of 12% the company is overvalued‚ while with a slight decrease in the discount rate‚ to 11.7% the company is undervalued. In
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NIKE - Organisational Changes NIKE‚ Inc. (NYSE: NKE) announced today that Charlie Denson‚ NIKE Brand President since 2006 and a 34-year veteran of the brand‚ will retire in January 2014. In conjunction with Denson’s decision to retire‚ the Company also announced strategic changes in its executive management team as part of the Company’s long-term organizational strategy to align the business to continue to drive growth. The changes reflect the Company’s focus on the consumer by accelerating innovation
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The company of Nike started in 1962 as Blue Ribbon Sports. It focus on athletic running shoes and was popular in the U.S. Guarding famous athlete as a spokesperson made Nike achieve great success. In 1985‚ the Air- Jordan basketball shoes create over $100 million profit and $20 million are using in the ads of “Just do it” which became the campaign ad in 1988. As Nike began to expand overseas market in Europe‚ the new sponsor Brazilian team which is the World Cup campaign had changed the Nike’s image
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