Ratio and Financial Statement Analysis of Nike

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Ratio and Financial Statement Analysis

Table of Contents

Executive Summary.................................................................................................3 1.Nike History.............................................................................................................4 2.Nike Market Share: SWOT Analysis.......................................................................5 3.Nike Financial Report..............................................................................................9 4.Nike’s Future.........................................................................................................10 5.Conclusion.............................................................................................................11 References..............................................................................................................13

Executive Summary
Nike, Inc. was founded as an importer of Japanese shoes in 1962 by Bill Bowerman and Phil Knight and “step by step” it grew into the world’s largest marketer of athletic footwear and apparel. In the U.S. alone Nike sports products are available for purchase in over 20,000 retailers, and the company’s sports products are popular in more than 110 countries worldwide. The entire business of Nike is divided into operating segments: clothes, footwear, apparel, equipment, and accessories. Each of these strategic business units presents a business unit with services and products managed separately as each operating segment requires different business strategies. The segments are established by senior management to facilitate the achievement of Nike long-term objectives, to help in resource allocation decisions and to assess operational performance. Being a constantly developing company, Nike footwear line has opportunities for further development and a successful launch of new products. Globally, the footwear and personal care industry is thriving with about $124 billion in sales worldwide. The constant changes in the sports clothing market will continue to help Nike company increase sales. Innovation can be used with the help of new technologies based on major principles of marketing that will bring success to Nike in future. It is important to note that innovations are aimed on promotion’s concerning consumers. Thus, Nike Company has a well-defined structure and effective control mechanisms which regulate the work of the company. The critical features of Nike Company’s structure and governance model are the committee and the board of directors. Nike is a large scale company, that is why Nike had to select the existing structure and governance model that is at the core of its business.

1. Nike History.
Nike, Inc. was founded as an importer of Japanese shoes in 1962 by Bill Bowerman and Phil Knight and step by step it grew into the world’s largest marketer of athletic footwear and apparel. In the U.S. Nike sports products are available for purchase at 20,000 retail accounts. Moreover, the company’s sports products are famous in more than 110 countries worldwide. ‘It took a while for Nike to establish the great name they have today, and in the early 80's many people complained about how Nikes were not made in the United States (US). People were mad at the fact Nike shoes were made in Vietnam, China, and Indonesia where the people are paid in low wages and treated poorly. This led to a major conflict with Nike products leading to boycotts. Although, this was a major issue to some people it didn’t stop Nike from handling business’ (Nike History 2007). Famous youth footwear companies who began as the producers of trainers for skateboarding, for example, Vans, catch up with such sport giants, as Nike and Adidas. These large companies, in their turn try to reach a profitable market creating a series of skateboarding footwear. Nike attracts famous skaters to its team, as well as promising...
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