AN OBJECTIVE CASE STUDY FOR NIKE COMPANY Present to The Faculty of the Department of Commerce Raffles International College Ho Chi Minh City In Partial Fulfillment of the Requirements For Management Theory and Application By Vu Nhat Nam (Kelvin) Ho Thanh Chung (Andy) CASE STUDY 1 NIKE COMPANY VU NHAT NAM (KELVIN) HO THANH TRUNG (ANDY) Table of Contents I. Introduction……………………………………………………..pp. 3 II. Objective case question 1 Explain Centralized vs. Decentralized Organizational
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NIKE Business Case Study Management Theory (BUS830-13) Submitted to: Dr. J. Saleeby Done by: Rola El Cheikh 201005281 Thursday‚ December 23‚ 2010 Executive Summary Nike hit the ground running in 1962. Originally known as Blue Ribbon Sports‚ the company focused on providing high quality running shoes designed especially for athletes by athletes‚ at competitive prices. Today‚ Nike is the world’s leading maker of athletic shoes‚ equipment and apparel. Nike has invested highly on marketing
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Nike‚ Inc. : Case Study in Operations Management MGT 441 Prepared for: Dr. Davidson‚ Concord University Prepared by: Jeremiah Nelson Johnathan Coleman Emily O’Dell December 4th‚ 2012 Introduction Low-cost‚ time-efficient manufacturing of goods is a key feature of a successful production company in today’s competitive global economy. Operations management‚ often abbreviated in the business world as OM‚ is defined as “...the set of activities that creates value in the form of goods
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NIKE CASE STUDY 1. Why is it important to estimate a firm’s cost of capital? What does it represent? Is the WACC set by investors or by managers? Weighted average cost of capital or WACC represents the overall cost of capital in the company. It takes into considerations cost of debt and cost of equity. As company’s value can grow by increasing its assets that could be financed either be debt or equity and cost of capital shows how much it costs to do that. Cost of capital is a very important component
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| NIKE‚ INC.: COST OF CAPITAL | | | | | | Introduction Our report aims to help Kimi Ford make a decision on her investment of Nike. We choose WACC as our method to estimate the cost of capital‚ which can be used as a discount rate to verify whether Nike is correctly valued in current market. We have mainly four steps to calculate WACC: I. Identify the type of cost of capital; II. Figure out the weights of debt and equity; III. Calculate the cost of debt and equity respectively;
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Marketing Management Nike What are the pros‚ cons and risks associated with the Nike’s core marketing strategy? Nike’s core marketing strategy is tag lined as “Pyramid of Influence”. This marketing strategy helps Nike gain competitive advantage over the competitors. Nike’s core marketing strategy is tag lined as “Pyramid of Influence” Nike heavily depends on the successful athletes for marketing and selling its products. Professional athletes such as Tiger wood‚ Michael Jordan‚ Lance Armstrong
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calculation? Why or why not? 2. If you do not agree with Cohen’s analysis‚ calculate your own WACC for Nike and justify your assumptions. 3. Calculate the costs of equity using CAPM‚ the dividend discount model‚ and the earnings capitalization ratio. What are the advantages and disadvantages of each method? 4. What should Kimi Ford recommend regarding an investment in Nike? 2 Case Overview Nike‚ Inc. NorthPoint Group Investment Decision Current share price of USD 42.09 Declining market share
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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. In
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Sweatshops Throughout the years‚ United States businesses have had to face protests from government officials‚ labor leaders‚ and student organizations due to employing sweatshop labor. If you are unaware of what sweatshops are‚ they are generally characterized as a place of employment that have very low pay‚ very long hours of work‚ and terribly poor working conditions. After hearing this‚ most people would assume that is awful and they should be illegal and banned immediately from all countries
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Quick facts on sweatshops; > Girls between the ages of 15 and 25 make 85% of the workforce in sweatshops >Up to 75% of a sweatshop worker’s income is spent on necessities such as food‚ clothes‚ etc. >on average workers have a 60-80 hour workweek in a sweatshop > in china‚ 2009‚ about 1‚000‚000 workers were injured on the job and 20‚000 got sick from their work in hazardous conditions >Workers are forced to handle dangerous chemicals and glues in sweatshops with little or no protection > A child working
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