...Date: Financial Statement Analysis for Nike Nike Corporation released its financial statement for the year ended May 2014. Nike Inc. is a sports apparel manufacturing firm with diverse interests all over the world. The financial statements suggest a strong company whose stocks are not undervalued, but with the potential of exploding higher having shown sustained strengths when the Europe, American, and Chinese economies were at the brink of disaster. Despite sustaining fluctuations from the weakening of the strong economies, the company continued to register an increase in revenues in the financial period 2012-2013 and 2013-2014. It also registered an increase in its net income in the same financial periods. A firm’s income statement is a financial statement presenting the firm’s financial operations over a given period. It communicates the amount of revenues that a firm generates during the time, and the cost incurred to generate the revenue. For the case of Nike, revenues were realized during the last financial period from insurance premiums, goods sold and services rendered among other activities. In cases involving financial institutions interest and investment income, trading gains and sales were also included. Nikes revenues rose in the financial period 2013/2014. Its operating income, income before taxes, income from continuing operations increased. Consequently, its net income for the year 2013/2014 increased by about seven percent (Nike Inc.: Businessweek.com). A balance...
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...Nana Offei MGT/448 Global Business Strategies Case Study Nike: The Sweatshop Debate July 5, 2012 Professor, Marc Mosko Nike, the sweatshop debate Nike Inc. was started by Bill Bowerman and Phil Knight, who met each other in 1957 Before going into business, Knight became a certified public Accountant (CPA) the original Nike Inc. was founded in 1964 by Phil Knight and his friend Bill Bowerman with a collective investment of 1000 to fund the business tries (Nike repository, 2010) The company began with Bill and Phil being local distributors for the Onitsuka Tiger footwear brand now own by Asics footwear, Bill and Phil did business out of their cars at local track meet and sporting event to athletes in the vicinity of the University of Oregon, the first sport retail store open in California in 1966 as where the company profit began to grow they realized that their financial limits imposed by Onitsuka Tiger would limited their long team profits (Nike repository, 2010) This paper will describe the legal culture ,and ethical challenge that confront the global business as personated on the case study, in addition the paper will determine the various roles that the host government played in global business operation .at the end it will summarize the strategic and operational challenges facing global managers illustration in Nike organization Global business doesn’t come without challenges Nike organization plan to become a global body and...
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...but none of them have been as successful as NIKE, Inc. It all started with two men, two men with a passion for track and field and the desire to innovate running shoes. Bill Bowerman, a track and field coach at Oregon University, and Phil Knight, a track and field athlete at Oregon University, teamed together to form “Blue Ribbon Sports” in 1964 which later became “Nike” in 1971. Since they began, they have expanded their products from solely running shoes into athletic shoes for a variety of sports as well as fan gear, workout gear, athletic equipment, and athletic gear for sports teams. Nike has grown from their World Headquarters in Oregon to several branches located in the Netherlands, Shanghai, and Japan. Each headquarter is focused on innovating their products to fit the consumers’ needs in their respected demographic and ultimately grow in those markets. With Nike’s success comes a high demand for their products. As a result of the high demand there are 774 factories located in 42 different countries in North and South America, Australia, Europe, and Asia. A large percentage of the factories are based in the emerging markets like Korea, Indonesia, Vietnam, Brazil, and Argentina. China claims a large percentage of the factories with over 213 compared to the United States with only 65. With the theme of inspiration and innovation, Nike has been able to significantly expand across the globe and affect every country it touches. Nike made headlines after several instances of...
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...Analysis of Case Study for International Business By Assistant Professor Asif Mahbub Karim MBA, CA(Inter.), KPMG, MCFC,MBA, B.Com. PhD Research Fellow, Malaysia Coordinator – BBA & MBA Program Stamford University Bangladesh Introduction Background of the Case Established in 1972. Company has $10 billion in annual revenue. It sells in 140 countries. It only Sub Contracts. Employs 550,000 all around. Mission Statement “ Just Do It “ Accusations !! Products are made in Sweatshops. Many are Child Worker. Work in hazardous condition. Less than Subsistence Wages. Nike have become symbol of Evils of Globalization. Global Exchange – A Human Right Organization targeted Nike for repeated critisicm. Accusations !! The condition at foreign factories was at stake. Subcontractors were not matching minimum local labor laws. Long working hours. Working environment very poor. Minimum Wage rate very low. Safety & Security compliances not followed. Case Against Nike In search of cheap labor Nike looks factories as such in target countries where minimum wage level is not set. Targeting literate , disciplined and desperate job seekers. Mostly young women are hired. Labors don’t share Nike’s huge profit. They work 6 days a week for only $40 a month - just 20 cents an hour. Attack on Nike’s Sub Contracting Some factories were employing 11 years old labors in Indonesia for their sneakers. Wage...
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...The Promise and Perils of Globalization: The Case of Nike1 Richard M. Locke Alvin J. Siteman Professor of Entrepreneurship and Political Science MIT 1 This case was prepared for the Sloan School of Management’s 50th Anniversary celebration and should be read in conjunction with “A Note on Corporate Citizenship.” This case was prepared with the active involvement and research assistance of the following Sloan MBA students: Vanessa Chammah, Brian Curtis, Elizabeth Fosnight, Archana Kalegaonkar, and Adnan Qadir. I would also like to thank Miguel Alexander, Maria Eitel, Dusty Kidd, Joseph Tomasselli and Dara O’Rourke for their helpful comments and assistance during this project. 1 1. Introduction How should global corporations behave in the new international world order? What constitutes good corporate citizenship in a world where the stakeholders are diverse and dispersed around the globe and where no clear or consensual rules and standards exist? These questions shape the behavior of most multinational corporations (MNCs) today. Although multinationals are eager to pursue the opportunities of increased global integration, they are increasingly aware of the reactions which their strategies induce – both at home and abroad. Thus, they tread warily, lacking clear and agreed-upon definitions of good corporate citizenship. Through a case study of Nike, Inc. – a company that has come to symbolize both the benefits and the risks inherent in globalization – this paper examines the...
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...etc. brands are becoming prominent here. In case of Nike, BATA is the only authorized shop in Bangladesh. But due to its high brand image Nike can operate directly in this country and acquire market share. For this reason, we conducted this research to find out the possibilities of Nike in this country. 2. Objective: To conduct this study we had these objectives on our mind to achieve: -To identify the existing condition and competition in sports brand market - To have knowledge about BATA store and its involvement with Nike - To acquire knowledge about Nike and its image on consumers and competitors mind - To identify the probable advantages and disadvantages of Nike entry in Bangladesh 3. Methodology: This study was carried out in several steps. Following methodology was adopted to fulfill the objectives:- * Primary data collection: We collected majority amount of data by primary data collection method. It includes BATA store visit, Different shop visit, consumer survey and competitor survey. We conducted 80 consumer survey, 10 competitors and sports shop survey. * Secondary data collection: In the secondary data collection method, we followed online research, website visit, e-mails etc. 4. Limitation of the study: We faced below limitations to conduct our study: - Time duration - Lack of support from the shop owners and competitors - Political unrest Detailed report 5. BATA AND NIKE 5.1. Imported Nike categories and price range: BATA imports...
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...Case Study: “Nike: The Sweatshop Debate” Global Business Strategies - MGT 448 Introduction This document will explain the difficulties in the legal, social, as well as ethical area which the Nike Corporation had encountered because of carrying out international business in Vietnam government. This document prosecutes the strategically as well as operational problems which make part of Nike and equally demonstrates the part of Nike in the scandal of the operation plant and the moral problems which surround this sensitive case. Nike has encountered a lot of legal, social as well as moral problems above of when the example of the plant of the operation was encountered. “Nike is a global corporation that was established back in 1972 by the preceding University of Oregon track star Phil Knight, (Hill, 2009).” Nike is among the key sellers of tennis shoes and garments at low prices. The organization has more than $10 billion in annual incomes and sells its items in over a hundred and forty countries throughout the world. Nike is not associated with any one of its proper manufacturer. Nike doesn't get involved in their own production process. Nike designs and creates their own marketing plans. They also produce to more than six hundred international plants throughout the world. As per (Hill, 2009) by using these types of producers Nike is hiring 550,000. With regards to the legal repercussions this organization is experiencing include the rumor of operating sweatshops...
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...Management Planning and Ethics BY: Missy Peterson UOP / MGT330 Management Planning and Ethics Nike is one of the most competitive fitness and sports businesses out there in today’s world. Their motto is “If you have a body, you are an athlete”. The quote means as long as there are athletes there will always be a Nike. Nikes products consist of footwear, clothing, sports equipment and accessories for the athlete market. Nike’s targets people of all ages, but sell their items to the majority of athletes. Everyone who wears shoes is considered their target. Nikes mission is to bring inspiration and originality to all athletes in the world. By doing this, Nike needs to have a plan in mind to keep this company in full force in the next 20 – 30 years. Their only real competitor is Reebok since 1990. However, since Nike is such a big company Reebok are the ones’ that are trying keep up with Nike’s operation. In the past, Nike has had legal issues, ethics and corporate social responsibilities that have an effect on the management planning. With the legal issues, Nike had a problem with their Asia Corporation where they were using child labor to create soccer balls. In the United States, constitution states that child labor is an illegal and inhumane practice. In 1996, Nike characterized of making its equipments in countries, such as Asia, that are in the developing phase, having very cheap labor, authoritarian government and lack of human rights appeal and...
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...Case Study "Nike: The Sweatshop Debate" Sarah Martin MGT 448 July 27, 2011 Kenneth Peter Case Study "Nike: The Sweatshop Debate" “We’ve run the course – from establishing codes of conduct and pulling together an internal team to enforce it, to working external bodies to monitor factories and engaging with stakeholders” (Nikebiz, para. 2). The creation of this code of conduct came after serious allegations of using sweatshops with women and children working in hazardous conditions for less than minimum wage in overseas factories scattered across the globe to make their product. This paper uses the case study entitled, “Nike: The Sweatshop Debate,” to describe the legal, cultural, and ethical challenges that confront Nike’s global business. This paper will also determine the various roles that host governments have played as well as summarize the strategic and operational challenges that face global management for the Nike Corporation. Bill Bowerman, a track and field coach at the University of Oregon, and Phil Knight, a talented middle-distance runner from Portland, “shook hands to form Blue Ribbon Sports, pledged $500 each, and placed their first order of 300 pairs of shoes in January 1964” (Nikebiz, para. 1). In 1965, they hired their first employee, Jeff Johnson, to manage the growing requirements. In 1971, he conjured up the name Nike. According to the case study, the profits and success that the Nike Corporation has gained has affected hundreds of thousands of workers...
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...Case Study Andrew Sauls MGT 448 August 18th, 2014 University of Phoenix Case Study The Nike Firm is definitely the world’s leading company of athletic shoes and clothing. The company got its name from the Greek goddess of victory, and has achieved its reputation of becoming victorious within the sports niche for more than a decade. Nike has accumulated skyrocketing manufacturing numbers via independently hiring companies beyond the United States to manufacture. “Nike sold about 280 million sneakers, cross-trainers and running shoes last year. Doubling manufacturing workers' wages in China would cost Nike, which last year had revenues of almost $14 billion a year” (Dreier, 2007) Millions of people throughout the world have been in awe with the success of this organization. An incredible number of Americans have purchased merchandise produced by Nike. Nike provides a quality brand name that's supported by super stars and sports athletes; however millions of people are not aware exactly how Nikes involvement with outsourcing to third world nations has created great debate with labor unions, and more importantly employees within these countries.” Today’s global economy is characterized by rapid and at times wrenching changes, driven by competition, new technologies, and a continuing search for cheaper resources and markets” (Thinking Critically, 2008). Nike must bear in mind that together with the importance of manufacturing and supply of products and services they are...
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...how the whole Nike incident began and how it ended. It made me feel sorry for the Nike Corporation at first but when all the details unfolded I started to look at the situation in a totally different light. Jonah Paretti started off the case by trying to order a pair of customized Nikes that he wanted to order from Nike id. What he wanted on the shoe is the word "sweatshop." Nike ultimately denied his request because it represented inappropriate slang. He replied to the Nike Corporation by saying he wanted to put a picture of the 10 year old Vietnamese girl who makes his shoes on the shoe. Paretti never received a response. Before Nike could blink an eye the situation turned into a public affair that would get many colleges and Universities involved. By now the Nike product has become synonymous with slave wages, forced overtime, and arbitrary abuse. An even celebrity like Kathy Lee Gifford was shocked when she found out her clothing line was participating in sweatshops to produce these clothes. Whether or not these accusations were true the turmoil with Nike and their usage of sweat shops for the production of their shoes had begun. Nike was founded by Philip Knight in1964. By 1980, eight years after the company was founded Nike became the largest athletic shoe company in the world. Nike’s factories are located countries such as Indonesia, Vietnam, China, and Thailand were the labor cost were significantly less than those in the United States. Nike was also accused...
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...and Management * Cached Mar 14, 2013 - Read this essay on Pacer Shoes . ... “Case Analysis” 1. Background: • Henry Carson founded the company Pacer Athletic shoes in 1970's to serve ... And Marikina Shoe Exchange a Comparative Study Of The Promotional ... Case Analysis When New Products and Customer Loyality ... https://www.scribd.com/.../Case-Analysis-When-New-Products-and-Cust... * Cached * Similar Feb 25, 2014 - If the research shows that customers like the walking shoes, Pacer ... in the market, for instance, based on studies showing that Pacer shoes ... Case Study- Adidas | Laurel Saia https://laurelsaia.wordpress.com/public-relations/case-study/ * Cached Case Study- Adidas ... They have tweeted about their miCoach Pacer, which tracks your pace, distance, heart rate, and also gives you coaching while you are ... When New Product and Customer Loyalty Collide case ... brainfeeder.work/when-new-product-and-customer-loyalty-collide/ * Cached Aug 7, 2015 - The case study “When New Product and Customer Loyalty Collide ... Henry Carson CEO of Pacer athletic shoes is confused after reading a ... Nike Running Pacer Portal – A Work of Substance findsubstance.com/portfolio/nike-running-pacer-portal/ * Cached * Similar The Nike Running Pacer Portal sets out to rethink the business challenges of ... Nike products, the technology behind the products, and what shoe is the best fit ... Case study: EnableSoft Inc | Edward Lowe...
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...International Marketing” Master’s degree level Dissertation Assessing Youth’s Buying Behaviour towards Sports Shoes (A Case Study of Nike) Dissertation in “International Marketing”, 20 Swedish credits (30 ECTS) Author: Srungaram Narsimha Vamshi Krishna Supervisor: Venilton Reinert Professor: Svante Andersson S.S.No. 810609-3035 Contents Pg No. 0 Acknowledgement Abstract 1. Introduction and background 2. Purpose of the study 3. Literature review a. Types of consumer’s buying decision behavior b. Complex buying behavior c. Dissonance d. Variety 4. The buying decision process a. Introduction of buying decision process b. The buying decision process c. Evaluation of alternative d. Purchase decision e. Post purchase behavior 5. Theoretical frame work a. Consumer involvement theory 6. Consumer behavior models a. Introduction and Intergradations of three models b. Hierarchy needs of consumer behavior model c. Consumer behavior model d. Lens model 8. Nike’s Introduction (Nike’s Case Studies) a. Financial performance b. Employees c. Contract factories d. Nike branding 9. Methodology of the Study a. Introduction b. Method c. Types of research d. Research approach e. Population and sample f. Instrument to collect the data g. Research validity and reliability 10. Analysis of the study a. Graphical analysis 3 4 4 8 8 10 10 10 11 10 10 11 11 12 12 12 12 14 14 15 16 18 19 19 20 20 20 21 21 21 21 22 22 23 23 24 26 1 b. Empirical analysis qualitative part c. Empirical analysis...
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...The strategies of Nike and Adidas have been compared from the textile industry. Nike and Adidas both specialize in footwear, apparel and accessories and their competition is intense as Nike is the market leader and Adidas is the market challenger. The topics in this assignment cover critical incidents of both Nike and Adidas that occurred in the past and the comparison between both their strategies as well their future plans. This assignment shows us the influence the strategy has on the success or failure of companies and how companies craft sustainable strategies that help them to retain their position in the market. Table of Contents Page 1.0 Introduction 1 2.0 Literature review 1 3.0 Backgrounds of Nike and Adidas 2 3.1 Company overview of Nike 2 3.2 Company overview of Adidas 2 4.0 Critical Incidents that occurred in the past 3 4.1 Critical incidents that affected Nike 3 4.2 Critical incidents that affected Adidas 5 5.0 Comparison of the strategies of the companies 8 5.1 Strategies of Nike 8 5.2 Strategies of Adidas 9 5.3 Comparison of the strategies of Nike and Adidas 11 6.0 Future plans of Nike and Adidas 13 7.0 Conclusion 14 8.0 List of references 14 9.0 Bibliography...
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...Table of Contents Introduction 3 Nike, Inc. 3 Under Armour 4 Porter’s five forces analysis 5 Nike, Inc. and Under Armour innovation strategies comparison 7 Conclusion 9 References 10 Introduction Nowadays, more and more people become concerned about health; they develop special diet that include vitamins and advanced nutrition supplements, and of course they do sports. Any kind of sports demand at least basic sports outfit: a T-shirt, shorts or pants, and a pair of shoes. Industry of sports apparel and footwear is an important part of today’s global business, where big companies have to compete for a customer. It is rather hard to differentiate on this market, because all the goods have to fulfill only one goal: make a person feel comfortable during a workout. Thus, companies have to work harder to develop new innovative products to gain market share advantage. The market of sports apparel is now dominated by several big companies: Nike, Inc., Adidas group (which includes Adidas and Reebok), and Puma. But there is also a new fast-growing and very promising player - Under Armour that managed to enter this saturated market. The key success factor for Under Armour was their innovative approach in creating sports apparel. Observing Under Armour’s success Nike has reconsidered their strategy and made innovation the core part of their mission, and in 2013 Nike was announced a #1 innovative company by fastcompany.com. So now there are two key innovators on the market...
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