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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Just Do It "Nike"‚ is it for everyone? Every athlete? Or every soccer player? This particular Nike advertisement is trying to bring excitement and passion to the viewer. It is trying to bring the viewer to a state of mind in which he or she is really "pumped". Where the viewer can fully understand and intake the broad yet specific message that can directed to every athlete‚ soccer player and your average Joe. When looking at this advertisement the viewer is able to notice that there are three
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approach‚ which was previously effective for Nike‚ centers all the business activities on continually innovating‚ improving and refining its products while it is under the assumption that customers simply want the best possible quality for their money. But due to changing circumstances and to pursue customer loyalty‚ Nike adapted the category driven approach which is derived from customer usage and purchase patterns. Post- internal and external analysis Nike concluded that there are primarily six major
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Nike Nike is a major publicly traded sportswear and equipment supplier based in the United States. was founded in 1962 as Blue Ribbon Sports by Bill Bowerman and Philip Knight‚ and officially became Nike‚ Inc. in 1978. It is the world’s leading supplier of athletic shoes and apparel and a major manufacturer of sports equipment. Nike markets its products under its own brand as well as Nike Golf‚ Nike Pro‚ Nike+‚ Air Jordan. Point Of Parity (POP) Nike catagorized itself in the high-end sport shoes
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Nike and International Labor Practices Nike has long been known as the only brand of shoes to wear. Since its inception in the early 1970s‚ teenagers have seen the brand’s “swoosh” as a mark of cool. With their celebrity endorsements with people like Tiger Woods‚ kids have wanted the shoes so that they could be like their sports star. Nike was headed to the top rung of the athletic shoe industry until it hit trouble in the 1990s with news leaking out about labor violations in its factories overseas
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Hitting the Wall: Nike & international labor practices How well and how responsibly do you think she has handled these issues to date? What advice would you give her about how she should now proceed? What principles should guide the company’s policies and practices? What opportunities‚ constraints‚ and risks does the firm face? What are the scope and limits of its social responsibilities? There are two aspects to look at how Nike has acted: 1) The intension with which it has acted:
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Since the mid 1900’s Nike has been dealing with the repercussions of the sweatshop scandal‚ redeeming itself as an industry leader in ethics‚ and is learning the hard way that they should be more liable about their production. However‚ there are ways for Nike to eliminate their immoral labor practices and still be a noteworthy company. Nike‚ a well renowned and one of the largest shoe brands‚ has contracts with manufacturing companies whom use foreign workers located in such countries as China
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Nike Debate Business Aspect: ⦁ Nike is a business and their priority is to minimize cost and maximize revenue for its public shareholders ⦁ COUNTER AGRUMENT: Instead of attacking Nike‚ protest against taxes and regulations that lower the firms return on invested capital‚ leading to lower wages for the employees? (mise.org) ⦁ COUNTER AGRUMENT:Why dont we make Nike shoes in America? Shoe business in the U.S. has been non profitable since 1984. Nike had two factories in Maine and New Hampshire but
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World War II vs. World War I World War I and World War I are two of the deadliest and costly conflicts to occur in world history. With over 100 million casualties they combine to be two of the most devastating wars ever. They both are very similar and destroyed a good amount of land in Europe‚ while also involving the same allies on both side. Although they both have high casualties World War II is more important to Europe for many reasons. Some reasons are the holocaust‚ advancements in technology
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Case Report - Nike Introduction Many of us know Nike for the clever maketing campaigns‚ celebrity athelets‚ "swoosh" logo‚ and "Just Do It!" slogan. In 1963 the world’s largest athletic shoe company was founded by Philip Kight and Bill Bowerman for $500 apiece and a handshake‚ and today has over $9 billion in revenues. After several years of record breaking performance Nike’s global labor practices were brought to the attention of the public as early as the 1990s. Which included publishings
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