issues and 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
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marketing to Nike (a well known sports retailer). Your report should explain the concepts of marketing and illustrate segmentation‚ targeting and positioning using one of their products. Finally‚ you will analyse their marketing and devise a marketing mix for one of their products. Your report should answer each of the following questions in turn: Task 1 - Investigate the concept and process of marketing (LO1) 1a) Compare alternative definitions of marketing. You should use the key words
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Executive Summary Overview Nike is the market leader in athletic shoes in the United States. The Oregon based company has always utilized offshore facilities in low-income countries to produce at minimal costs followed by importation into predominantly the US for sales. Nike is quick to divest from emerging markets as costs rise and has recently signed short term production contracts with a long term strategy of production in China. Unlike Nike’s previous global endeavors‚ the political and cultural
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elasticity of demand in response to a permanent price change of all manufacturers. He admitted that the elasticity to a temporary price cut might be greater. The studies to which Black referred found elasticity’s ranging from 0.65 to 1.53. a. Explain the concept of elasticity of demand and the factors that affect it. Answer:- From the decision-making perspective‚ the firm needs to know effect of changes in any of the independent variables in the demand function on the quantity
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Case study: Nike: the Sweatshop Debate 1) Should Nike be held responsible for working condition in factories that it does not own‚ but where sub-contractors make products for Nike? Nike doesn’t own any manufacturing facilities and outsource its production. Therefore‚ it can’t be directly blamed for terrible working conditions. Nike can influence indirectly on working conditions at contracting factories thorough refusing to work with sweatshop factories. However‚ Nike‚ like any other capitalistic
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To: Kim Ford Date: 2/13/13 Subject: Nike’s Cost of Capital I agree with Ms. Ford’s estimate of Nike’s Cost of Capital at 8.4% The WACC is the appropriate method for valuing Nike’s capital. The WACC takes your cost of debt x the percent of capital + CAPM x equity percent of capital and it tells the rate of return the company needs to return based on its capital structure. In my opinion Ms. Ford has correctly assumed Nikes cost of debt and cost of equity. Her projection for cost of debt uses
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Receiving information about and making sense of the world around us Deciding: What information to notice How to categorize information How to interpret information within the dynamics of selecting‚ organizing and interpreting external stimui Perception is the process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment What is people’s behavior based on? Reality Or Perception of reality Perceptual Process
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UV0010 NIKE‚ INC.: COST OF CAPITAL On July 5‚ 2001‚ Kimi Ford‚ a portfolio manager at NorthPoint Group‚ a mutual-fund management firm‚ pored over analysts’ write-ups of Nike‚ Inc.‚ the athletic-shoe manufacturer. Nike’s share price had declined significantly from the beginning of the year. Ford was considering buying some shares for the fund she managed‚ the NorthPoint Large-Cap Fund‚ which invested mostly in Fortune 500 companies‚ with an emphasis on value investing. Its top holdings included ExxonMobil
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To each their own I would recommend this novel to an individual who is interested in a book that involves mystery‚ death and love. I recommend this novel to one of my friends‚ who likes a book with lots of depth‚ complicity and secrecy at the same time but yet it all comes together eventually. This specific individual is interested in novel’s that keeps her guessing and constantly on her toes. Another good reason why I would recommend this novel to this specific person is because her favourite
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money in a right way. The idea behind unit trust is the better investment through collective investing.
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