Is Nike Worth the Buy? Thomas Senyard Issue It has been a week since Nike’s analyst meeting in which management unveiled a plan to revitalize the company. Kimi Ford wonders‚ is Nike a good buy for her mutual fund? Background Nike’s recent market share has been declining. The new strategy that management introduced plans to develop a better mid-priced shoe‚ to push their apparel line and to put more effort into expense control. Lehman Brothers say that Nike is a strong buy‚ but UBS
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Segmentation When entering a market‚ an organisation needs to identify its customers and what its customer needs are. A business can’t go into a market with a product and expect to sell it‚ because the demand for the product may not be there. It is important for the business to plan thoroughly before entering a market and understand the diverse nature of a market. For example‚ a market may have large range of consumers who have different tastes‚ preference and needs. So this is where the concept
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marketing strategy of Nike In recent decades‚ we have witnessed a high performance marketing of Nike which make its brand name is well-known all around the world. My belief is that Nike not only is a marketing-oriented company but also has used 3Ps out of 4Ps marketing mix model effectively‚ including product‚ place and promotion. Firstly‚ when it comes to product‚ Nike considers its wide range of products as its one of most important marketing tool. In the beginning‚ Nike only focused on running
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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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consider what personality traits the consumers posses. Of course there are serveral ways to group together personalities ex (fashionable‚ innovative‚ extroverted‚ etc). I have chosen to use Karen Horney’s theory of three personality groups for segmentation of the music consumer market. Karen Horney states that people can be grouped into three personalities; compliance‚ aggression and withdrawl. Since music consumers can be an almost entire population‚ it would be a good idea to segment this population
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Nike Case – Spreading out to stay together 1. When Nike CEO Phil Knight stepped down and handed his job to Bill Perez‚ he stayed on as chairman of the board. In what ways could Knight’s continued presence on the board have created an informal structure that prevented Perez from achieving full and complete leadershipof Nike? Answer: Informal structures are the shadow organization that represents the actualworking and communication relationships that may not resemble the formal organizationalchart
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‘unethical’ by media who construe this view to consumers. Such allegations can and will have damaging effects with Nike having been taken to court already in the past. 2. Would the use of third-party independent contractors insulate MNCs from being attacked? Would that practice offer MNCs a good defensive shield against charges of abuse of “their employees”? • Not necessarily‚ as Nike will be using labour which is just managed by another party. They would just be shifting the blame of abusing “their
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In order to understand the Nike system’s effectiveness in defending the US‚ the hostile actions and aerial strength of the USSR must be put into context. The main reason for the creation of the Nike missile system was to defend and deter the rapid technological advances of the USSR. After World War II‚ the USSR was able to acquire German scientists that had been working on the infamous V-2 rockets‚ as well as nuclear research. In addition‚ the USSR was also able to acquire some of the US’s bombers
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were good‚ I think that there were some that she could have used different numbers and rates to come up with more accurate numbers. WACC=(E/(D+E)) Ke + (D/(D+E)) Kd (1-t) 2. If you do not agree with Cohen’s analysis‚ calculate your own WACC for Nike and be prepared to justify your assumptions Cost of debt-based on yield to maturity PMT= 100(.0675)=6.75 N= 20 (2)=40 FV= 100 PV= 95.6 I/Y= computed on calculator=7.0832(semiannually) 7.0832(2)=14.166% annually COST OF EQUITY Cost of
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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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