Premium Essay

Evaluating Nike Final

In: Business and Management

Submitted By Deme0219
Words 1764
Pages 8
Evaluating Financial Health Demetress T. Scott Axia College University of Phoenix Instructor: Elizabeth Mullaney April 18, 2010

Nike is the leading manufacturer of athletic shoes, equipment and apparel. Nike is one the most heavily advertised and best known brands in the world. Nike has reach over 170 countries, subsidiaries name include: Cole Haan, Converse Inc., Hurley International LLC, Nike Golf, Umbro Ltd., to name a few. As of May 31, 2009 Nike operated 338 retail stores in the United States of America and 336 retail stores internationally.
(U.S. Securities and Exchange Commission, 2009)

Financial Performance
Nike is definitely the leader within its sector of footwear and accessories. Nike does show vulnerability due to a decline in 2009 compared to 2008 in regard to the Net Income. In 2008, Nike showed a growth within the Net income ratio totaled to 26.28%, in 2009 Nike net income ratio equaled 21.06% showing a decline of 5.22%.
The Cash Flow of Operation show a decline from the previous year as well; however, the company strength is still standing strong at 1.74 billion. Increase in the capital transpired in November 19, 2009, which reflects growth in regard to the Total Revenue and Gross Profit Margin; the…...

Similar Documents

Premium Essay

Nike

...Nike and Adidas Compare and contrast essay Both Nike and Adidas are sportswear companies whose products throughout many parts of the world are very popular and have been the top two leading sport companies in the sport industry. The purpose of this essay is to compare and contrast Nike and Adidas companies in terms of headquarters, market focus, sponsorships, marketing and advertising, price and product. Nike is an international U.S.-American sportswear manufacturers. It was founded by Bill Bowerman in the year 1972 and the slogan is “Just Do It”. On the other hand, Adidas is a worldwide sportwears manufacturer based in Germany and founded by Adolf Dassler on 18 August 1949. The slogan is “Impossible is nothing”. These two companies sell and offer a wide range of products for the customers and their products offered is mainly on sports wear for men and women. These companies also provide the customers varieties of footwear such as sports shoes, casual shoes, boots, sandals and stockings. While they are selling similar products, Nike products are more expensive than Adidas because all Nike brand has high and advance technology. Nike and Adidas have also been the top sponsors in the sport industry. Nike promotes its products by sponsorship agreements with celebrity athletes, professional teams and college athletic teams. In contrast, Adidas sponsors professional soccer, tennis, general athletics with mainly clothing. In terms of market focus, Retail is a......

Words: 322 - Pages: 2

Premium Essay

Nike

...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.......

Words: 10743 - Pages: 43

Premium Essay

Nike

...for the addias all in and try to find out the various target audiences,it may be include the different audience in the campagn,after find out the audiences,we can outline the strategyand tactics adopted by this promotional campaign. Moreover,evaluating the effectiveness of two of the communication tools using the marketing research technique-Adertising and public relation,the main techniques may be Pre-testing and post testing in the advertising. Finally,after we were evaluated the whole promotional campaign of the addidas,we can see that how they work from the begining and the ending,you can conize the different promotional campaign method and process after we had done the proposal. 10. Conclusion In conclusion, the promotional plan presented above has the aim to increase Adidas brand awareness and products sales bychanging image of Adidas as a ‘fashionable’ clothes and not only forpractical use in order to be ‘the best’ brand in the market. The keypoint of this campaign is based on the research results such asremarkable buyer behavior that they buy sportswear as a fashionpurpose. this campaign would lead to increasingawareness and considerably interests in see Adidas as a fashionable-trendy brand and also replacing Nike in the market share as thenumber one on sportswear in the world...

Words: 297 - Pages: 2

Premium Essay

Nike

...Nike MKTG305-1301B-01 Marketing Management Project Type: Unit 4 Individual Project April 28, 2013 Abstract This paper will discuss the importance of branding. It will also focus on the history of Nike and how this company has been successful in their marketing efforts and their chosen celebrity endorsers. Introduction A product’s brand name has become an extremely important factor. It is the deciding factor in consumers’ final decision of whether or not to purchase a product or service. The brand in today’s market Prior to Nike, there were two visionary men, Bill Bowerman and Phil Knight, who pioneered a revolution in athletic footwear that redefined the industry ("Nike, Inc.:History," ). After years of their ideas being ignored, they established a partnership and convinced Japan to allow them to become U.S. distributors of Japan’s Tiger shoe which in turn opened the door to allow Bowerman to make changes to the Tiger shoe to make it a light weight and better. This led to the establishment of Nike. By 1971, there was a third individual, Jeff Johnson, the first full time employee, who created the marketing materials for Nike. Brand is clearly defined as a promise to the consumer which tells them what to expect from the products and services being offered and how it differentiates from competitors it is the basis for sales and incorporating a committed customer base. The American Marketing Association (AMA) defines brand as one of the following: * Name ...

Words: 1225 - Pages: 5

Premium Essay

Nike

...NIKE INC FORMReport) 10-K (Annual Filed 07/23/13 for the Period Ending 05/31/13 Address Telephone CIK Symbol SIC Code Industry Sector Fiscal Year ONE BOWERMAN DR BEAVERTON, OR 97005-6453 5036713173 0000320187 NKE 3021 - Rubber and Plastics Footwear Footwear Consumer Cyclical 05/31 http://www.edgar-online.com © Copyright 2013, EDGAR Online, Inc. All Rights Reserved. Distribution and use of this document restricted under EDGAR Online, Inc. Terms of Use. Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED May 31, 2013 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO . Commission File No. 1-10635 (Exact name of Registrant as specified in its charter) OREGON (State or other jurisdiction of incorporation) One Bowerman Drive Beaverton, Oregon (Address of principal executive offices) (503) 671-6453 93-0584541 (IRS Employer Identification No.) 97005-6453 (Zip Code) (Registrant’s Telephone Number, Including Area Code) SECURITIES REGISTERED PURSUANT TO SECTION 12(B) OF THE ACT: Class B Common Stock (Title of Each Class) New York Stock Exchange (Name of Each Exchange on Which Registered) SECURITIES REGISTERED PURSUANT TO SECTION 12(G) OF THE ACT: NONE Indicate by check mark • • • if the registrant is a......

Words: 108131 - Pages: 433

Premium Essay

Nike

...Nike: The Sweatshop Debate Nike is a well-known global corporation. Recognized for its catchy “Just Do It!” slogan and the world-class athletes that represent the brand. Nike was established in 1972 by Phil Knight a former collegiate track star whom enthusiasm has lead the company to become the leading provider of athletic shoes and apparel in the world. Although, Nike is a multiple billion-dollar company they have faced several challenges in the way they conduct international business. Nike produces their products in factories all over the world. Many of these factories are located in the world’s poorest countries with low minimum wage standards and poor employee rights. Nike has been criticized for the selection of their factory locations; some people even refer to these outsourced places as “sweatshops.” This has caused legal, cultural and ethical challenges for Nike. Critics have protested that Nike has failed to follow the child labor laws in the countries they have entered, hiring under age children and making them work for long hours with little pay. For example a Korean subcontractor hired by Nike was hiring children as young as 13 years old, paying them 10 cents an hour and working them 17 hours a day. The countries that Nike subcontracts to such as the Vietnams, China and Indonesia are cultural poor. Most people are just happy to have a job and Nike is thought to have taken advantage of this fact. “Nike’s wealth, its detractors claimed, was built upon the......

Words: 637 - Pages: 3

Premium Essay

Nike

...JOHN MOLSON SCHOOL OF BUSINESS | CASE ANALYSIS: NIKE INC. – COST OF CAPITAL | FOR PROF. EDWARD WONG | | ARUN KUMAR DURAIRAJ – 27416008 NIDISH PC – 27254423 VIPUL PARTI – 27246307 | 12/3/2015 | | Evaluation of Cohen’s Report and Calculation of WACC We do not agree with Cohen’s report about the cost of capital because of the following reasons. * Capital Structure (% equity vs % debt): In calculating the capital structure of Nike Inc., Johanna Cohen has calculated the percentage of equity from the book value given in the balance sheet. However this is not a correct index of the current market value of the firm. Instead, she should use the most recent value given by the recent market price of the share. Market Value of Equity = Current outstanding shares*Current share price = 271.5 million * 42.09 = 11427.44 million Debt: Current Portion of LT Debt = $5.4 million Notes Payable = $855.3 million Long Term Debt = $435.9 million Total Debt = $1296.6 million Proportion of Debt =......

Words: 1190 - Pages: 5

Premium Essay

Nike

...interview customers by quota Video Case 2.2 Nike: Associating Athletes, Performance, and the Brand 1. Management Decision Problem: What should Nike do to increase its share of the athletic shoe market? 2. Marketing Research Problem: The marketing research problem is to determine consumer preferences for athletic shoes. More specifically: a. What criteria do consumers use for evaluating athletic shoes? b. How do consumers evaluate the various brands of athletic shoes in terms of the choice criteria? c. Are the consumers willing to pay a premium price for high performance shoes? d. What is the demographic and psychographic profile of customers loyal to Nike? e. What demographic, psychographic, and product usage characteristics differentiate Nike loyalists from consumers loyal to other brands? 3. 4. Focus groups with consumers in the target market would be very helpful to identify the salient image characteristics and the general perceptions of Nike’s image. Depth interviews with top athletes would be useful to identify how athletes define performance in sport shoes and what emotions, attitudes, and beliefs are associated with high performance shoes. 5. A mall-intercept survey can be used to determine if Nike should invest by opening more upscale company retail outlets such as Nike Town. Mall shoppers can be......

Words: 1297 - Pages: 6

Premium Essay

Nike

...CASE STUDY – Nike and the University of Oregon The next case study is case study 22, (“Nike and the University of Oregon”) on Pages 933-940 of your key text, De Wit & Meyer. Below is the case synopsis: Case Synopsis Philipp H. Knight founded Nike’s predecessor company in 1963. The basic business formula of the company has not changed much since then. Nike is designing and marketing high quality sports shoes and sports apparel around the world. It builds its brand appeal through savvy marketing and sophisticated product R&D. The company has never owned production of the goods it sells, instead from the very beginning has been importing the products from the Asian Far East. In 2000, Nike enjoyed 45% global market share, had close to $9 billion of sales and put Knight among the top ten richest individuals in United States. The company directly employed 20,000 people, but had a workforce of an estimated half a million labouring for them in 565 contract factories in 46 countries – making it one of the largest private company de facto employers in the world. Labour conditions in Nike’s contract factories were not even close to any labour laws and compensation practices in the industrialised countries, let alone the US. Work there meant 70-hour workweeks performing hazardous and/or monotonous routines under abusive supervision and with appalling equipment. Until the early l990s, Nike never felt that to be its responsibility. Ever since the early 19th century in England,......

Words: 2026 - Pages: 9

Premium Essay

Nike

...Nike: A Look Inside | June 22 2010 | By Bobby Bedsole, Matt Currie, & Brady Stoker | [Type the document subtitle] | Table of Contents Executive Summery External Analysis 1) Industry/Competition- Five Forces Current Rivalry opportunities/ Threats Potential Entrant Opportunities/ Threats Bargaining Power of Buyer Opportunities/ Threats Bargaining Power of Supplier Opportunities/ threats Substitute Products Opportunities/ Threats 2) General External Environment General Economic Opportunities/ Threats Demographic Opportunities/ Threats Sociocultural Opportunities/ Threats Political-Legal Opportunities/ Threats Technological Opportunities/ Threats Internal Analysis 1) Capabilities Assessment 2) Assessing the Primary Activities in the Value Chain a) Inbound and outbound Logistics b) Marketing c) Production Support Activities in the Value Chain a) Technological Development b) Human Relations Management c) Firm Infrastructure 3) Internal Audit of Functional Areas a) Management b) Information Systems c) Research and Development Financial Analysis- Conclusion Executive Summary Nikes Mission Statement: Our goal is to carry on his legacy of innovative thinking, whether to develop products that help athletes of every level of ability reach their potential, or to create business opportunities that set Nike apart from the competition and provide value for our......

Words: 13360 - Pages: 54

Premium Essay

Nike

...Background to the case • In 1964 Nike Company was started. The company started importing Tiger shoes from Japan • In 1970, the demand for Nike shoes increased and the company decided to develop its own shoe manufacture. • In 1975, Nike shifted its operations from Japan to Korean and Taiwan were production costs were very low • In 1980, the company become profitable and at the same time faced a stiff competition from Reebok. The company’s market share dropped as a result of the competition. • In late 1980s, the Nike invested heavily in research and development to bring back the glory of the company. • In 1990s the company embarked on aggressive advertising, promotion and sponsorship and thus diversified into wide range of products to meet the international demands. • By 2007, Nike was the biggest sports fitness company in the world with a truly global spread of sales. Question 1 What knowledge has Nike acquired over the years? Use the definition of knowledge to move beyond the obvious This section is focused on knowledge acquisition and knowledge development has acquired over the years since its inception. According lynch (2006), knowledge is a fluid of mix of framed experience, values, contextual information and expert insight that provides a framework for evaluating and incorporating new experiences and information. It originates and is applied in the minds of knowers. In organisations like Nike, it often become......

Words: 2887 - Pages: 12

Premium Essay

Nike

...Nike Case Team 5 – Windsor Cohort (Heidi Limmonen, Oksana Simakina, Masayuki Kondo, Rui Dias, Andres Losada, Zsolt Makai) 1. What is the WACC and why is it important to estimate a firm’s cost of capital? Do you agree with Joanna Cohen’s WACC calculation? Why or why not? WACC is the rate that a company is expected to pay to debtors and creditors. A weighted average of the component cost of debt, preferred stock, and common equity. (Birgham & Houston, 2009) This is the minimum rate that a company must earn on its assets in order to satisfy the company’s shareholders (most importantly, the creditors and the owners). WACC is calculated as a weighted average, or composite, of the various types of funds used over time, regardless of the specific financing used in a given year. (Birgham & Houston, 2009) The WACC is a useful tool to measure how a company is financed and what the costs are of its capital. Furthermore WACC sets the minimum level that a company has to earn in order to satisfy creditors and owners (see above), therefore the model can be used as a benchmark figure (a minimum return rate) that a new project has to meet. The expected rate of return when evaluating such new projects has to be higher than the WACC (benchmark) in order to be profitable. We don’t agree with the way Joanna Cohen calculated the WACC. Her assumptions made to calculate the cost of equity by the CAPM were not accurate. She only made general assumptions about the general......

Words: 1930 - Pages: 8

Premium Essay

Nike Case Study

...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......

Words: 483 - Pages: 2

Premium Essay

Nike

...Nike is one of the largest public sportswear and equipment suppliers, with the leading edge in athletic sneakers, apparel, and sports equipment in the world. Nike has been ranked the most powerful sports brand by Forbes magazine, in early 2011. Nike started out as a small distributing company for Asics and now has become a global success. In 1964 Bill Bowerman, the coach of the track and field team for the University of Oregon, as well as one of the runners Phil Knight, started distributing running sneakers for the company “Onsitsuka Tiger” (now known as Asics), in the back of Phil’s car. With profits increasing and popularity growing, by 1967 Blue Ribbon Sports was opening their first retail store in Santa Monica, California. During 1971, Blue Ribbon Sports started to expand, and Phil Knight and Bill Bowerman started preparing their own footwear line. The infamous swoosh was developed in 1971 by Carolyn Davidson. This was the start of Nikes journey to becoming the most powerful sports company in the world today. The first shoe released to the public was a soccer shoe named Nike, which was released in the summer of 1971. Early 1972 the first line of Nike shoes was released. In 1978 Blue Ribbon Sports officially renamed itself Nike. The waffle design was Nike’s first self-designed product. Bill Bowerman and Phil Knight started experimenting with different out soles to increase traction and efficiency. The waffle trainer was a hit. By 1980 Nike captured 50% of the United......

Words: 1694 - Pages: 7

Premium Essay

Evaluating

...Life cycle phase Knowledge Areas | Initial | Intermediate | Final | Project Management integration | Develop the scriptDevelop production planDevelop investors business plan | Monitor the productionRewrites if need to | Primer party | Project Scope Management | Scope developmentWBS | Monitor scope | | Project Time Management | Production schedulesShooting schedules | Daily Call sheetsEditor time lineComposer time lineRehearsals | | Project Cost Management | Bids for equipmentCreate a shooting Budget | Control the budget | | Project Quality Management | Quality plan | Ensure equipment is goodWatch dailies (film shot that day) | | Project Human Resource Management | Resource plan | Acquire production teamCast actorsAcquire the crew | | Project Communications Management | Communication Plan | Production Meetings Daily shooting reportsReport to investors weekly | | Project Risk Management | Risk Management planningRisk IDRisk response planning | Monitoring and controlling risk | | Project procurement Management | Create contracts actors/crewPurchases | Order equipmentPurchas expendables | Payment to venders | Process groups Knowledge Areas | Initiating | Planning | Executing | Controlling | Closing | Project Management integration | | Develop the scriptDevelop production planDevelop investors business plan | Execute production plan | Monitor the productionRewrites if need to | Primer party | Project Scope Management | The creation of the......

Words: 258 - Pages: 2