Joanna Cohen’s WACC calculation because she mistakenly used historical data to estimate the future cost of debt. Joanna calculated the cost of debt by taking the interest expense for 2001 and dividing it by the average debt balance. The cost of debt for Nike is the effective rate that it pays on its current debt‚ meaning the yield to maturity of bonds should be used to make an estimate instead of the average debt balance. Through the use of past data‚ the average balance of debt‚ the 4.3% before-tax cost
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strategic planning is dynamic and that strategy-making involves a complex pattern of actions and reactions. It is partially planned and partially unplanned. Mintzberg’s 5 Ps for Strategy would have helped nike in the following ways: • Plan • Ploy • Pattern • Position • Perspective. Plan Nike planed to revolutionise their demand and supply chain management system with a $400 million 18month prodject‚ by replacing the old supply chain system with a new system. They intended a course of action
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NIKE ANALYSIS The Weight Average Cost of Capital (WACC) is the firm’s cost of capital. We can think of WACC as an average representing the expected return on all of the companies’ securities. It is an extremely important number for both corporations and usually financials advisors. Corporations use this number as a minimum for evaluating their capital projects or investments. So if for example the WACC of a firm is 10% and the return on investing in a project is 4.5%‚ then the company would not
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Nike: The sweat shop debate Synopsis: Nike Inc. is an American multinational corporation that is engaged in the design‚ development and worldwide marketing and selling of foot wear apparel equipment‚ accessories and services. It has its shoe’s manufactured on a contractual basic in different places like Asia‚ Vietnam and China. This case overviews the miserable working conditions where all the manufacturing takes places. It states even though Nike is the leading marketers in the shoe business in
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Mittal 50219 BBS 3FA CASE SUMMARY & HIGHLIGHTS Formation of Nike In 1958‚ Phil Knight came realised the need of a good American running shoe and started working on his idea. In 1964‚ he along with Bowerman formed an athletic shoe company and called it Blue Ribbon Shoe (BRS) company. In 1971‚ they developed a distinctive trademark and a new brand name and this is how Nike came into existence. Exceptional economic performance Nike grew at an amazingly fast pace with profits
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Mini Case: Nike’s Decision Nike‚ a U.S.-based company with a globally recognized brand name‚ manufactures athletic shoes in such Asian developing countries as China‚ Indonesia‚ and Vietnam using subcontractors‚ and sells the products in the U.S. and foreign markets. The company has no production facilities in the United States. In each of those Asian countries where Nike has production facilities‚ the rates of unemployment and underemployment are quite high. The wage rate is very low in those
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Nike Case Study By Mark Colasurdo‚ Andrew McMullen‚ Jonathan Burd‚ Gaoxing Feng‚ and Jie Leng Background: Kimi Ford‚ a portfolio manager at North Point Group‚ is looking into the profitability of investing in the stocks of Nike for her fund that she manages. She is supposed to base her decision the company’s data which was disclosed in the 2001 fiscal reports. While Nike management had addressed several issues that are causing the decrease in market sales and stock price‚ management presented
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A. World Events that Affected the Philippines 1. Age of Mercantilism/Old Imperialism – 15th - 17th century 2. Age of Exploration 3. Age of Industrial Capitalism/New Imperialism-18th-19th century 4. Industrial Revolution-1750 FACTORS THAT LED TO THE DEVELOPMENT OF PHILIPPINE NATIONALISM 1. World Events a. Seven Years War (Spain and France vs. England) -Impact to the Philippines- The British Invasion of Manila –(1762-1764) b. Development of Liberal Ideas in world events i. Age of Enlightenment-
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Filipino voters should be blamed for the Philippines’ problems May 12‚ 2013by Ilda I don’t think there is a point in holding elections in the Philippines. It’s so expensive and the whole process just disrupts normal activities and keeps Filipinos from moving forward. What is the point in going through something that won’t even change or improve how things are being run in the country anyway? Before every election‚ the candidates use literally the same song and dance routine to entertain the voters
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PHIL 235 – Biomedical Ethics Introduction Health care‚ as the name implies‚ concerns the health and well being of individuals. Although physical aspects of health are particularly important in assessing a person’s well being‚ there are many other factors that determine whether a person is truly well‚ with factors such as happiness and psychological wellness playing an equally important role. As doctors attempt to maximize the well being of their patients‚ they must also keep into consideration
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