...Matt Johnson Nike Case DEFINE CONTEXT & KEY ISSUES * Your company is a mutual-fund management firm called NorthPoint and the portfolio manager, Kimi Ford, is deciding whether or not to purchase the recently falling shares of Nike. * The first key issue to determine is whether Cohen’s WACC was evaluated correctly. * Upon evaluating if this WACC is correct, is Nike a good investment? BACKGROUND Nike’s Performance * Share price has significantly decreased from beginning of the year * Revenues had plateaued since 1997 at around $9 billion * Net income fell from almost $800 million in 1997 to $580 million in 2000 * Market share in U.S. athletic shoes fell from 48% in 1997 to 42% in 2000 * Revenue was affected by supply-chain issues and effects of a strong dollar Nike’s new strategy * Increasing focus in mid-priced shoe market, and also plans to push its apparel line. ANALYSIS * Joanna did a fairly good job when computing the WACC but there are two pieces that she should have done differently. The first area of improvement is that she uses the book value of equity and debt when market value is a better reflection of the true WACC. Using the market value we find that the debt/equity proportion is actually closer to 10.2/89.8. This is a big difference that will lead to a much different WACC evaluation. * Another area that is misrepresented in her calculation is the cost of debt. She states that the cost should be 4.3%, but that...
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...Name: Kelvin Oaihimire Date: 10/29/14 Online Buying Process. The online product that I am familiar with and have purchased in the past is a pair of Nike running shoes. The evaluation of the buying process from the marketers point of view using the five stages of the buying process 1. Problem Recognition 2. Search and determination of alternatives 3. Evaluation of Alternatives 4. Purchase Decision 5. Post Purchase Decision Problem Recognition: This was the initial stage, in this initial stage I realized that I have a need for a pair of running shoes, then I begin the important step of the decision process. The need for the pair of running shoes arise as a result of me needing a comfortable and fancy shoe that I can use to work and stand long hours at the laboratory, thus prompting the decision process to purchase a running shoe A purchase cannot take place without the recognition of the need. I recognized the problem of the need for a running shoes then I start looking for the solution. The problem recognition stage was the first stage of the online buying process for a pair of running shoes. The problem recognition stage cannot be skipped in the buying process. Search and Determination of Alternatives: This is the second stage of the purchase process where I started looking for best and possible solutions to purchase the running shoes, after identifying the need for a pair of running shoes, that I have identified. The role of the internet or online search...
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...Assignment You have been provided with a case study of NIKE (see Appendix 1). In your case report, identify three or four Marketing Challenges covered in this subject and address how those challenges can be met using the principles developed in this subject. Please ensure to use academic in-text references adequately to support your suggestions. Report writing format should be used Important Instructions 1. Assignments must contain proper citations and referencing using the Harvard style referred to in the AIB Style Guide, that is: a. citations (or in-text references) of quoted and paraphrased materials to support your arguments/comments, and b. a reference list relating specifically to your in-text references. 2. Your grade will be adversely affected if there is no/poor citations and/or reference list, as referred to above. 3. Assignments of this nature normally contain between 6 and 12 relevant references from different sources in the reference list. 4. All references must be from credible sources. Journals sourced from the EBSCO Host library (see Online Library User Guide on the next page) should be used first, then books, company documents and other media. 5. You are encouraged to make use of the AIB online library which can be accessed through the AIB website. 6. AIB checks assignments with anti-plagiarism software. Please carefully check your assignments before final submission to ensure that all quoted and paraphrased materials are properly cited and referenced...
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...Management Accounting Names Institutional Affiliation Introduction Most businesses have a number of objectives set in order to achieve the goals and maintain their policies. Some of the objectives include customers’ satisfaction with goods and services of high quality, high level of market penetration, free and attractive environment, and successful performance in terms of profit (Kouvelis, 2012). The success of the firm in terms of the sales depends on the strategies laid to balance cost of production and market price and ensure efficient competition with its counterparts. The sufficient margin over the cost of production needed by a company can be achieved by providing cost incurred relative to the prices in the market or the prices set for the objective achievements are actualized. There are several techniques put forwards by companies to ensure profit generation during their operations. Some of these techniques includes target costing, benchmarking and activity-based budgeting. Target costing This is not a new idea as far as a successful companies operation is concerned. It can be defined as the method that is implemented in determining the cost at which a product having particular parameters must the produced to ensure the required return rate is achieved.. This process entails analysis of cost that take place during the development phase and ensuring the cost is kept below the threshold (Stapenhurst, 2009). Target costing is one of the responsibilities that are...
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...Ethics and Corporate Governance: Corporate Social Responsibility Contents Introduction 2 Definition of Ethics 2 Definition of Corporate Social Responsibility (CSR) 2 History of Ethics 2 Socrates 2 Plato 2 Aristotle 2 Cynics 2 Cyrenaics 2 Business Ethics 2 Nike 2 McDonalds 2 Enron 2 Wal-Mart 2 Why Business Ethics is Necessary 2 Conclusion 2 Bibliography 2 Introduction This assignment is a brief over view of ethics in the modern day era. It begins with a definition of ethics, followed by a concise explanation of corporate social responsibility. Ethics has evolved over a number of decades and still is to this day, with that a short history of ethics will be demonstrated in this assignment. Ethics determines whether or not a company has good or bad morale. Unfortunately a company that holds excellent ethics are not highlighted in the media as a company that has bad ethics. In this essay will illustrate examples of how large national and international companies came to have bad ethics. To conclude this assignment will be a brief outlay of why ethics is necessary to the business environment in this day and age. Definition of Ethics Ethics can be defined at vital concepts and essential principles of moral human conduct. It consists of the study of universal ethics such as the essential parity of all men and women, natural or human rights, compliance to the law of land, concern for health and safety and, progressively more, for the natural environment...
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...Functional Areas of Business The role of a manager is today’s modern business environment is becoming increasingly more complicated. Not only does a manager have to worry about directing the day-to-day responsibilities of his or her employees, but he or she also has to be concerned with all the different functional areas of the business. These functional areas include: * Management * Law * Human Resources Management * Leadership * Accounting * Finance * Economics * Research & Statistics * Operations Management * Marketing * Strategic Planning Functional Areas Each functional area of a business is typically established as its own department and led by a manager who is an expert in that field, but all are very closely interrelated. Management/Leadership The management and leadership functions very much go hand in hand. Management is responsibility of directing the day-to-day actions of a company’s employees, while leadership is the process with which that direction is given. A manager can easily tell an employee what to do, but that hardly makes them a leader. A leader inspires their employees by having an adaptable management style, exhibiting behaviors which empower employees, function as a role model, organizing an employee’s work so they are exposed to new experiences and grow, and give employees the autonomy to take risks (Warhurst, 2013). A leader is able to inspire an employee to what to perform better by illustrating...
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...Strategic Marketing: Nike: A Case Study: . Published: 14th October 2013 Table of Contents 1. Assignment Topic 3 2. Word Count 3 3. Executive Summary 3 4. Introduction 4 5. Nike – Where it came from 4 6. Nike – Market orientation, challenges and missteps 5 7. Nike’s labour practices shame and the turn around 8 8. Nike’s “She runs the night campaign” 9 9. Conclusion 10 10. References 11 11. Appendix A - Case Study 13 Nike - The art of selling air 13 1. Assignment Topic In your case report, identify three to four marketing challenges covered in this subject, and address how those challenges can be met using the principles developed in this subject. Be sure to cite and reference the name and source of your case in your assignment report (as well as other references you use). The case study “Nike – The art of selling air.” has been included for reference in Appendix A of this paper. 2. Word Count This paper contains a total of 2581 words from the start of the introduction to the end of the conclusion section. 3. Executive Summary Companies today face many challenges to maintain market share and differentiate themselves from a highly competitive and ever evolving market place. Marketing is crucial to a company’s long term success. The aim of this paper is to use the “Nike - The art of selling air.” case study and concepts from strategic marketing theory to identify marketing challenges and how those challenges...
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...NIKE SUPPLY CHAIN MANAGEMENT INSERT NAME HERE INSERT UNIVERSITY/COLLEGE NAME HERE INSERT SUBMISSION DATE HERE2 TABLE OF CONTENTS 1 INTRODUCTION...................................................................................................................................................3 2 OVERVIEW OF NIKE...........................................................................................................................................4 3 NIKE SUPPLY CHAIN PROCESSES...............................................................................................................5 3.1 Nike Product Development....................................................................................................................5 3.2 Nike’s Manufacturing flow management........................................................................................6 3.3 Lean manufacturing ..................................................................................................................................6 4 NIKE SUPPLY CHAIN ASPECTS.....................................................................................................................7 4.1 Nike Vertical Relations.............................................................................................................................7 4.2 Horizontal Relations .................................................................................................................................8 5 NIKE...
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...Coca-Cola: avoid the word "design" as much as possible. "If I'm at a meeting with manufacturing people, I'll say: 'How can we make the can feel colder, longer?'," he says as an example. "Or, 'How can we make the cup easier to hold?'" In other words, he talks about the benefits of smart design in a language to which those he's talking to can relate. Based on several recent brand redesigns—including the new Coke identity work that won the Grand Prix at the Cannes Lions awards program in June—and innovations such as an aluminum bottle and a new family of coolers, this surreptitious approach seems to be working. Butler leads a team of 60 designers—a mix of graphic and industrial designers, some poached from companies such as Apple (AAPL), Nike (NKE), MTV (VIA), Target (TGT), and Electrolux—at four centers around the world. All are focused on what Butler describes as a "fix the basics" strategy. The Old Simplicity Gone While there are few companies with a richer design heritage than Coca-Cola, in recent years the company seemed to...
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...Nike Business Strategy By singkboy | Studymode.com Nike’s Gameplan for Growth that’s Good for All | Management Innovation eXchange Page 1 of 29 M-Prize winner This story is one of ten winning entries in the Long-Term Capitalism Challenge, the third and final leg of the Harvard Business Review / McKinsey M Prize for Management Innovation. Story: Nike’s Gameplan for Growth that’s Good for All by Lorrie Vogel - General Manager of Considered Design at Nike Inc. Co-Authored by Agata Ramallo Garcia October 17, 2012 at 1:29pm 18 36 0 Comments 2 Ratings: Overall 4 Innovative 4 Detail Summary Innovation is a cornerstone of the Nike brand. Our company was founded by two visionaries, Bill Bowerman and Phil Knight, who set out to reinvent athletic footwear. Over the past decade, our drive to design and produce better, faster, lighter products has evolved into an even more ambitious agenda – to embed long term sustainability into our business. This broader vision calls for new approaches to design, management, partnership and new tools and metrics to support integration and adoption throughout Nike. Many of Nike’s http://www.managementexchange.com/story/nike%E2%80%99s-gameplan-growth-that%E2%80%99s-good-all 21/02/2013 Nike’s Gameplan for Growth that’s Good for All | Management Innovation eXchange Page 2 of 29 management innovations for sustainable growth started internally, with the Corporate Responsibility and Considered Design...
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...FINANCIAL MANAGEMENT http://mycourses.hult.edu MODULE B 2012-13 INSTRUCTOR Professor Xiaozu Wang EMAIL xiaozu.wang@faculty.hult.edu INSTRUCTOR AVAILABILITY Please contact by email CLASS TIMES & ROOM(S) MIB1: Jan 7, 9, 11, 15, 17, 21, 23, 25, 1:30-4:50, Feb. 1, 9:00-12:20, Feb. 7, 1:30-4:50 COURSE AIMS AND DESCRIPTION OF CONTENT This is an introductory course of finance for MIB students. The course aims to provide students with a conceptual framework and a set of technical tools for making corporate investment decisions. The focus will be maximizing the value of the firm and capital budgeting. Some ethical issues will be highlighted throughout the course. INTENDED LEARNING OUTCOMES Key (Assessed) Learning Outcomes: On completion of this course, students should understand and be able to do the following: 1. Estimate the cost of capital for corporate investment decisions; 2. Make corporate investment decisions using discounted cash flow method; 3. Manage working capital and corporate long-term growth. Supplemental Learning Outcomes: While not assessed, it is anticipated that students will develop the following: 4. Understand the importance of corporate governance for achieving long-term corporate financial objectives and valuation; 5. Understand some unique features of Chinese capital markets. TEACHING AND LEARNING The course will be a mixture of lectures, case discussions and individual and group practices. Students are expected to do the following. 1. 2...
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...IFRS: FASB and IASB Fair value measurements provide users of financial statements with an accurate picture of the value of a company’s assets. Both IFRS and GAAP require firms to include information regarding fair value measurement practices in the notes of financial statements. Under either system, companies will be required to report assets at either book value or fair value, depending on the situation. As a general rule of thumb, all assets in the same class must receive the same valuation treatment. In regards to the value of receivables, IRFS uses a two- tiered method that first analyzes individual receivables, and then looks at receivables as whole to determine if there is any impairment. Basic accounting and reporting issues related to recognition and measurement of receivables, allowance accounts, recording discounts, the allowance method to account for bad debt and factoring are pretty much all the same between GAAP and IFRS. However, IASB (International Accounting Standards Board) and FASB (Financial Accounting Standards Board) are taking steps by working to implement fair value measurement, the amount they currently could be sold for, for financial instruments. The FASB and IASB are facing opposition from various factors thus have adopted a piecemeal approach. Step one is to disclose the fair value information in the notes, and second step is the fair market option which permits companies to record some type of financial instrument at fair value in financial statements...
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...Metrics Madness Review Fall 2013 1. The local Mastermind store sells innovative educational toys. Part of their service is giving advice to customers about the best toys for a particular age group, which requires having more customer service representatives in the store. During the month long Christmas buying season, it makes half of its $500,000 yearly sales. Its contribution margin on average is 40% and its fixed costs for the year are about $150,000. The owner believes that she could make even higher sales, if she had more customer service representatives on the floor during the peak season. She plans on hiring four more people for 200 hours each at $20 per hour. How much additional revenue does she have earn to the nearest dollar to breakeven? 2. John’s Clothing Store employs three salespeople. It generates annual sales of $1 million and an average contribution margin of 30%. Rent is $50,000. Each sales person costs $50,000 per year in salary and benefits. How much would sales have to increase to the nearest dollar for John to break even on hiring an additional salesperson? 3. Eric makes custom fish flies for sports fisherman. It costs $1 for the raw materials for each fly. He sells these to a wholesaler for $2.50 per unit. The wholesaler sells them to a retailer for $3.50 per unit and the retailer sells them to a consumer for $5.00 each. What is the percentage margin to the nearest whole number for the entire chain per unit? 4. Anne hand-knits baby blankets...
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...Business Environmental Audit Critically assess the strategic Direction of the Nike brand William Hanrahan (060953199) ACE1004 Introduction to Management Contents 1.0 Executive Summary 2.0 Introduction 3.0 Nike 3.1 History 3.2 The Market 3.3 Industry Analysis 3.4 Trouble Ahead for Nike? 3.5 Nike Advertising 3.6 Brands of Choice 3.7 Nikes other Brands 3.8 Targeting New Markets 3.9 Financial Performance 4.0 External Market Drivers 4.1 Political Drivers 4.2 Economic Drivers 4.3 Socio-Cultural Drivers 4.4 Technological Drivers 4.5 Environmental Drivers 4.6 Legal Drivers 4.7 Charity Work 5.0 Competitive Environment 5.1 Porter’s Five Forces 5.2 Competitor Analysis 5.3 Nike vs. Fake Goods 5.4 Stakeholders 5.5 Stakeholder Mapping 6.0 The Brand 6.1 Competitive Advantage 6.2 The Swoosh 6.3 Routes to Competitive Advantage 6.4 Ansoff Matrix 7.0 Conclusions 7.1 Swot Analysis 8.0 Recommendations 8.1 Reflection 9.0 Portfolio of Information Sources 9.1 Primary Sources 9.2 Secondary Sources 1.0 Executive Summary Nike was founded in 1972 by Philip Knight and Bill Bowerman. Bowerman is well known in America as the University of Oregon coach. He brought jogging to America, built an unrivalled track and field program at that university, and taught his athletes to seek the competitive advantage everywhere - in their bodies, their gear and their passion. The Marketing men at Nike would like us believe that the brand is more than a product, it is an experience that we are buying into. Wherever...
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...UNIVERSITY COLLEGE DUBLIN NATIONAL UNIVERSITY OF IRELAND, DUBLIN Bachelor of Science (Singapore) MANAGING CHANGE (BMGT2001S) STUDY GUIDE BSc19 FT / Singapore Copyright June 2013 1 Authors: Dr. Evelyn Roche and Mr. Mogan Swamy (June, 2013) This manual was prepared for University College Dublin as a comprehensive support for students completing the above mentioned Degree programme. © This publication may not be reproduced, in whole or in part without permission in from University College Dublin. Module Co-ordinators: Evelyn Roche & Mogan Swamy Contact details Tel: 65-3095755 Office: 65-3095755 Email: e.roche1954@gmail.com Email: mogan.swamy@kaplan.com 2 1. TABLE OF CONTENTS PAGE Welcome message 1. INTRODUCTION a. Background details b. Module aims 2. MODULE OUTLINE a. Module learning outcomes b. Themes and topics c. Learning supports 3. MODULE DELIVERY SCHEDULE a. Session arrangements b. Student engagement c. Office hours arrangements 4. ASSESSMENT DETAILS a. Assignments b. Module assessment components i. Assignment 1 – Individual Assignment ii. Assignment 2 - Group Project iii. Assignment 3 – Written Examination 4 5 6 10 13 5. GRADING a. University grading policy b. Grade descriptors for assessment components 6. CONCLUDING COMMENTS APPENDICES 17 24 25 3 Welcome message Welcome to the Managing Change module. Studying change management is important because factors such as the availability of credit, technological...
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