Analysis: Nike Introduction Nike was established in 1972 by Bill Bowerman and Phil Knight. These two men were visionaries. The goal for Nike was to carry on Bowerman’s legacy of innovative thinking by helping every athlete reach their goal or by creating lucrative business opportunities that would set the company apart from any competition. This included providing quality work environments for all who were employed by Nike.
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PORTER’S FIVE FORCES 4 Power of Suppliers Criteria Level Effect on Power Effect on Profit Difference of Inputs High Increases Decreases Cost of Switching Suppliers High Increases Decreases Threat of Forward Integration High Increases Decreases Supplier Concentration High Increases Decreases Difference of Inputs Product differentiation within inputs in the tech industry is largely dependent on how recently the input has been developed (the extent of which it is considered
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GYAAN KOSH TERM 1 Learning and Development Council‚ CAC Managerial Economics This document covers the basic concepts of Managerial Economics covered in Term 1. The document only summarizes the main concepts and is not intended to be an instructive material on the subject. Gyaan Kosh Term 1 MGEC Learning & Development Council‚ CAC Opportunity cost: Taken into account for economic decisions. Opportunity Cost is the “next best” or “alternative” benefit from an investment Sunk costs:
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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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The Temple of Athena Nike Greek Architecture is the most important and influential in Western history reaching a peak between 400 and 300 BC. Some examples of Ancient Greek architecture and sculptures were built primarily for religious purposes‚ to represent deities or to serve as temples‚ such as the Acropolis‚ the Parthenon‚ Erechtheum‚ Apollo Didyma‚ and the Temple of Athena Nike. The decision to build Athena Nike was an expression of Athens’ ambitions to defeat Sparta and become a world
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PORTERS FIVE FORCE MODEL Porter’s Five force model includes 4 forces: * Potential Entrants(Threat Of Mobility) * Buyers(Buyer Power) * Substitutes(Threat Of Substitutes) * Suppliers(Supplier Power) * Industry Rivalry Application on the Telecom Industry: The forces that affect the Telecom Industry:- INDUSTRY RIVALRY: The above shows the different market share of the different firms such as Airtel which holds 28% of the total share being the highest ‚ Vodaphone
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been used by many people to understand more about a company’s structure and the method or plan used to run its business. In his book‚ Porter identified 5 external forces that will affect an industry or a market. The type of forces can help us to understand or to analyze how a company makes its profits‚ or how it could attract others to do business with. Porter also helps to identify the specific company’s competitor. We may use Porter’s competitive forces to analyze how it can have an impact
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Porter’s five forces Michael E Porter developed the Porter’s five forces analysis in 1979 which serves as a framework for industry analysis and business strategy development. Its five forces determine the competitive intensity and therefore attractiveness of a market. Attractiveness in this context refers to the overall industry profitability. Three of Porter’s five forces refer to competition from external sources. The remainder are internal threats. It is useful to use Porter’s five forces in
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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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industry is the basis for formulation of competitive strategy. The work of Porter provides an analytical framework for the analysis of the structural factors that condition competition within an industry and suggests several generic competitive strategies. An industry is not a closed system‚ competitors exit and enter‚ and suppliers and buyers have a major effect on the prospects and profitability of the industry. However‚ Porter points out that the structure of an industry will not change in the short
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