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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Corporation Case Study: Nike What is it? NIKE‚ Inc. is the world’s leading innovator in athletic footwear‚ apparel‚ equipment and accessories. Before there was the Swoosh‚ before there was Nike‚ there were two visionary men who pioneered a revolution in athletic footwear that redefined the industry. Nike Employees Nike Employee Networks are designed to help Nike move toward greater diversity. In the U.S.‚ six employee networks focus attention on important communities within Nike. The intended
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Sandi Wodarczak BA206 – Nike Case Study Due: February 16‚ 2011 Nike: Spreading Out to Stay Together Informal structures are thought to be good during times of change‚ but can be the cause for big problems during change. When an outsider is brought into an informal structure‚ operating under a matrix‚ there may be friction as the outsider never really gets to be an insider. I think this is what happened with Perez. Perez was the outsider brought in to take over for the insider‚ Knight
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Nike Case Study The US-based Nike Corporation announced that it had generated profits of $97.4 million‚ around $48 million below its earlier forecast for the third quarter ended February 28‚ 2001. The company said that the failure in the supply chain software installation by i2 Technologies3 was the cause of this revenue shortfall. This admission of failure also affected the company’s reputation as an innovative user of technology. The supply chain software implementation was the first part of
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In this Case Study Analyses‚ an objective SWOT Analyses will be done to help identify potential strengths‚ weaknesses‚ opportunities‚ and threats within the Nike Corporation. It will look at the role of promotions as a consumer product company‚ offer possible promotional objectives‚ and consider other promotional methods the Nike Corporation may wish to implement in its quest to remain the market leader. History‚ Development‚ and Growth From their marketing strategies to their selling
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CASE 14 NIKE‚ INC.: COST OF CAPITAL Cost of capital denotes the opportunity cost of using capital for a particular investment as oppose to the alternative investment which has similar systematic risk. It is extremely important since it is used in evaluating whether a project is feasible or not in the net present value (NPV) analysis‚ or in assessing the value of an asset. WACC (weighted average cost of capital) is the proportional average of each category of capital inside a firm (common
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NIKE’S SUPPLY CHAIN CASE STUDY Case Summary Nike is a retail giant that has different product lines in different parts of the world. Nike has different markets for different products for all four seasons of the year. It conducts business with 750 to 800 factories from around the world. In 1998‚ Nike had 27 order management systems spread out globally. These systems did not function in a way that allowed them to link to its headquarters in Beaverton‚ Oregon. This led to the implementation
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Case note on Nike Cost of Capital Group 2 Members : Devendra Rane‚ Vivekkumar Nema‚ Chandrashekhar Joshi‚ G. Ajithkumar‚ Prakash Shetty Case Background: * NorthPoint Large Cap Fund weighing whether to buy Nike’s stock. * Nike has experienced sales growth decline‚ declines in profits and market share. * Nike has revealed that it would increase exposure in mid-price footwear and apparel lines. It also commits to cut down expenses. * Kimi Ford’s initial assessment at a discount rate
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Nike Inc. Case 1. What is the WACC and why is it important to estimate a firm’s cost of capital? WACC is weighted average cost of capital‚ which is the expected rate of return on average from all the company’s existing debts and securities. It takes into account all different types of financing in the company’s capital structure. The reason it is important to estimate WACC is because it measures what it costs the firm to take on a project based on its current Debt and Equity mix. When the
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