BACKGROUND Adidas AG FWB: ADS‚ ADR:Pink Sheets: ADDYY) is a German sports apparel manufacturer and parent company of the Adidas Group‚ which consists of the Reebok sportswear company‚ golf company (including Ashworth)‚ and Rockport. Adidas was founded in 1948 by Adolf "Adi" Dassler‚ following the split of Gebrüder Dassler Schuhfabrik between him and his older brother‚ Rudolf. Rudolf later established Puma‚ which was the early rival of Adidas. Registered in 1949‚ Adidas is currently based in
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that has higher returns. In this case‚ I will first address the 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
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Executive Summary Nike Inc. Peretti Vs. Nike: In January 2001‚ Peretti choose the word Sweatshop’ to be printed in his Nikes. Nike rejected order citing the company’s rules. In retort‚ Peretti order a pair of shoes with a colour snapshot of 10-year-old Vietnamese girl who makes my shoes". With the email exchange between Nike and Peretti being forwarded all over the world‚ it led to a huge PR Nightmare for the organization. All through Mid-1990s‚ Nike has been subjected to negative press‚
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Adidas adidas India Ltd Background The company is the Indian subsidiary of adidas Group. Although Reebok is also owned by adidas Group‚ adidas India Marketing only markets and distributes adidas products in India. The company’s core business is mainly footwear. Nonetheless‚ the company also has presence in clothing products such as men’s and women’s tops‚ hosiery and non-apparel products‚ such as sports equipment. In India‚ the adidas and Reebok brands are handled by two different
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------------------------------------------------- ADIDAS AG Table of contents The internal Environment: 2 Men 2 Working conditions: 2 Money 3 Machinery 3 Materials 3 Micro environment: 4 Consumers 4 Shareholders 4 Local authorities 4 Enviromentalists 4 Suppliers 4 Supplier factories by region 2010 5 Macro Enviroment: 5 Economic factors 5 Technological factors 5 Socio cultural factors 5 Adidas is one of the best known sportswear brands in the entire world. The internal Environment: Men Adidas has
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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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rivalry for the company. Adolph registered the Adidas trade mark in year 1949 and since that time two companies started competing each other to the extend which each company was dispiriting its employees from being friend with other company’s employees. Adidas continued its innovation in order to be step ahead from the competitor by introduce the molded rubber cleats in 1949. The next innovation was footpath shoes with screw-in spikes. By the year 1960 Adidas became the favorite brand in footwear among
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The History of Adidas- The history of Adidas started in a small town in Bavaria‚ Germany. Adidas was founded in 1924 in Germany by two bothers Adi and Rudolf Dassler. The company was first named Dassler shoes and later became Adidas. By the Dassler shoes being seen in the Olympics this really helped the company get it’s name known. However‚ in 1948 Rudolf Dassler leaves to start his own company which is now known as Puma. Once Rudolf left his brother came up with the famous three stripes logo and
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meet consumer demand‚ while other brands can do the same. We all can do‚ the characteristics of the brand may also be the same or very similar. Want to get rid of other physical attributes of the brand product should escape the shackles of the level‚Nike Air Force 1 Mid 07 All Black emotional level to shape the brand‚ the emotional level that is unique to create customer value‚ to meet consumers may never think of emotional needs‚ so will your brand with the public different‚ unique and wonderful feeling
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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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