Premium Essay

Sports Products

In: Business and Management

Submitted By
Words 1239
Pages 5
Assessing the Goal of Sports Products, Inc. Lance Langdon University of Phoenix FIN/419 J. Jesse Conques, Facilitator March 15, 2009
Introduction
Sports Products Inc. is an important manufacturer of boating gear and accessories. The textbook case under consideration centers on the clerical assistant - Loren Seguara employed by the company’s accounting department. Another personality in the case is Mr. Dale Johnson employed in the company’s shipping department in the position of packager. The dilemma in the case concerns the complaints of Dale and Loren’s discussion during their lunch break concerning profits and stock dividends. Dale grumbled that even though he was working hard to keep overhead costs down in his department; he did not feel the company was recognizing his efforts. While performing his duties Dale feels he is putting his best efforts toward his perception of cost control by not wasting packing supplies and as well as using company property in an efficient and in a cost-effective manner. However, even though Dale feels he is carrying out his work with full efficiency as is his group of co workers in his department, the result is a downturn in the company stock price by almost $2 a share over the last nine months.
What should the management of Sports Products, Inc. pursue as its overriding goal? Why?

The overriding objective of the company management of Sports Products needs to focus on how to maximize the assets of the shareholders in the business. The corporate objective task of making the most of shareholder wealth presupposes that company management work in the best interests of stockholders and not just their own individual goals and not to try to seize wealth from lenders to benefit company stockholders. Stockholder wealth maximization also presumes that company managers do not take measures to mislead...

Similar Documents

Free Essay

Business Plan

... 3 Promoters 4-5 Product 6 Production 7-8 Marketing 9-12 Finance 13-17 Project Summary Promoters All the team have a big interest in the world of sport. With Richards game being squash and football and hurling lee’s being football and Gaelic Hugh’s being rugby and Ciara’s being football. Product The product which this business plan is about is a product which we intend to call Mr Grip. Mr Grip is a grip for sports products that takes a long time to wear down compared to other grips. We came up with this when Richard was telling us that he always has to buy grip for his squash racket at least once every 2 months depending on the use and this can be very costly. So we came up with a plan to make a grip that lasts at least twice as longer as the regular grip and that it is a lot more grip on it than other so it has a lot more grip on it than other grips. We’re also going to make them in every county colour’s for the hurling teams around the country. Also different colours so people can choose their favourite colours. Markets The target market which we are going to target is the sports market that consists of hurling, squash, tennis, hockey and all other sports that may need grip. Investment To make this grip we need quite a bit of money to make it as good as we say it will. Will need money to market our product to get it know to the public, research- to......

Words: 4047 - Pages: 17

Premium Essay

Marketing Plan for Kellogs

...Executive Summary NIKE is the world's leading sports clothing and footwear designer, marketer and distributor. The company is established 45 years ago and it produces and sells high quality sports clothing, footwear, equipment and accessories for a range of sports, fitness activities and leisure mainly. NIKE is a multinational company, which runs and develops its business activities globally and sells its products in more than 160 countries according to NIKE Corporate Website. NIKE owes its success and best performance on the global market to the high quality and innovative products that it produces and to its strong USP, brand positioning and direct to consumer channels. Related to the impressive performance and identified strong growth opportunities for the NIKE Brand portfolio the company objective is to achieve a revenue of $ 24 -25 billion for fiscal 2015 stated in report for 2011, which is more than the target of 23 $ billion announced in 2010. (www.nikeinc.com, 2011 ) Nike faces strong competition from the German sportswear maker Adidas and Puma globally. (Datamonitor Plc., 2011 ) Identifying market opportunities and key marketing strategies helps the company to achieve its marketing objectives – profit. Analyses on the Bulgarian market reveals a demand for sportswear and footwear among professional sports players and all the amateurs involved in range of sports and fitness activities and people who wear sports clothing and snickers for leisure , can......

Words: 1387 - Pages: 6

Premium Essay

Beer and Sports

...Milgram 1 Cory Milgram WR 121 Abby Grewatz Essay 3.2 3/13/13 Beer and Sports Sports are a huge source of entertainment in the world. Watching sports is an excellent activity that the whole family can enjoy. More than ever before, fans in America can turn on their HDTVs and tune into their sporting event of choice. With such a large quantity of viewers glued to their TV sets, companies have begun paying top dollar to direct their advertisements at sports enthusiasts. Commercials relating to sports have commonly been extremely successful and consumers purchase these companies products at an astounding rate. The problem I have with sports related advertisements specifically relates to the beer industry. These are some of the most profitable corporations and suck people in with multimillion-dollar commercials. These commercials are clever yet often deceitful. Beer commercials also air more frequently than that of nearly any other product. This gives viewers a constant reminder to purchase a product that, in fact, can be dangerous and detrimental to one's health. Beer commercials should be banned from televised sporting events because beer commercials make viewers believe they are dependent on alcohol consumption to enjoy watching sports. Watching televised sports is viewed as a social event. Gathering around the television with friends, living and dying with every pitch, is a rich part of the American culture and its tradition. These are the moments people look forward...

Words: 1657 - Pages: 7

Premium Essay

Adidas and Nike

...ADIDAS AND NIKE Nike and Adidas are two the largest sportswear companies of nowadays. They are the giants in the sportswear industry, which always introduce innovative products, in order to become the ultimate market leaders. Nike is an American multinational corporation, which produces footwear, clothes, equipment and other active sport items (Feifer 2014). The company was founded in 1964 by Phil Knight and Bill Bowerman. Nike uses specific method of advertising, which differentiates it from other sports companies; it creates motivational short videos, which promote sport and inspire people to stay fit. Hence, making an accent on sport, but not sportswear, Nike attracts customers in nonintrusive manner. In 2013, the total revenue of the company was $25.3 billion (Hall 2005). Adidas is a German sportswear company founded in 1924 by Adolf Dassler (Frenkel & Scott 2002). As well as Nike, Adidas focuses mainly on various types of sportswear, such as shoes, clothes, equipment and so on. The feature of Adidas manufacture is providing specific equipment for different kinds of sports, like tennis, baseball, basketball, skateboarding and cricket. The company’s total revenue was €14.49 billion in 2013 (Greeley 2014). Nike and Adidas offer similar services to clients; nevertheless, none of them have received the irrevocable advantage yet. Hence, each company has its own large audience of clients, which find something they like in a chosen sportswear provider. The analysis......

Words: 1270 - Pages: 6

Premium Essay

The Sport Guys

...Case outline Bob Rhodes, age 32, is well known in his local sports activity. Ten years ago, he started business called The Sports Guy and raised capital from obtaining a bank loan and an equity investment from friends and family. His family and friends own 40% of the business while he owns the rest. Mortgage help him purchasing land in small town outside of GTA that consists of two lots on a corner in which one is used to build a store, and another one was planned for the parking lot but never executed the plan because of the surrounding activities. Local sports team account for 70% of the sales whereas 30% comes from regular walk-in customers. Problem Statement & Objectives The major problem is reducing profitability of the business and there is no proper management of the inventory, which leads to sale of inventory at discount rate. Also labor wages are also too high and reducing creditability of business lead to reduce in the trust of the business and loss of the customer due to improper inventory management. The objective is to get access to bank credit to finance high Analysis the financial health of the business and recommend the various way to get the business right on track Situation Analysis Summary The company sell retail sports product to the sport team and children’s. Also there is around 30% of walk-in customer, who help the business to manage inventory. This might not be attractive industry because buyer’s and potential entrants have high power......

Words: 2147 - Pages: 9

Premium Essay

Business

...range of products for a wide variety of sports such as; football boots, tennis apparel, golf clothing and shoes, running shoes and clothes whilst Aldersley leisure village provides the facility to do those sports so I hope for Adidas to turn and sponsor the leisure village so that it can provide essential equipment so that more young people and older people can get the sport they need and exercise so that they can stay healthy and create a more positive atmosphere. The purpose of Aldersley Leisure Village is to provide sporting facilities to the local community to help keep people fit and entertained in a safe and healthy way where you can meet new people and make a closer community. They will be providing specialist equipment to suit the sports they do at that organization, they are doing this to help build a tighter community with the help of Adidas to sponsor them. The scale of Aldersley Leisure Village isn’t big as it is only a local company who are funded by the government and only offer to the local community, also they would only have one owner, known as a sole trader or a few partners known as a partnership which is common in small scale tertiary company. The purpose of Adidas is to provide sports......

Words: 429 - Pages: 2

Premium Essay

Tm103

...Parrish Flanders April 23, 2013 Professor Faerber Nike is considered to be one of the largest American suppliers of athletic shoes, apparel, and sports equipment. At the same time, this company and its brand are well-known worldwide. To a significant extent, this is the result of the strategy of the international markets expansion that is one of the main directions of the strategic development of the company. Obviously, this strategy provides the company to enter new markets and strengthen its position in traditional ones. At the present moment, the strategy of expansion is particularly important since the world economy tends to globalization and nowadays, multinational corporations, such as Nike, can hardly locate production in one country only but need to organize production in the regions which are either closer to the target market or where the production is substantially cheaper to the extent that the production in remote regions remain profitable even if the products are sold in a different part of the world. However, despite the obvious progress and recent achievements of Nike, its leading position in many national markets throughout the world, its development and expansion was accompanied not only by remarkable successes but also by some serious failures which deteriorated the position of the company in very perspective markets. This is why it is necessary to thoroughly analyze the development of Nike and its international expansion and its results in......

Words: 1941 - Pages: 8

Premium Essay

Creativity Portfolio

...innovation, demonstrating design thinking, sources of inspiration brainstorming, Design………………………………………………………………………………………………………………………………………………10 Critical Reflection: 11 References. 12 Appendices. 12 Design Brief: Design Brief: The problem is to identify a marketable product that will improve shoe hygiene and the overall lifespan of a sports shoe within the fitness and sporting world for both professionals and other fitness participants. The product being introduced to the market is a new unique and effective device that will increase the consistency and lifespan of the sports shoes. The product is a flexible and modern fragrance and delivery system that is designed to maximise a sports shoes lifespan, by optimising the endurance of the shoe and minimising occurrence of the shoe to misshape. When coming up with a design and a product to meet people’s demands there are many features that have to be considered. ‘Design is a process that turns a brief or requirement into a finished product or design solution’ A frequent use of a sports shoe will see its predicted life span of about 6 – 8 months, due to wear and tear and misshaping. Use of this product will facilitate an extended lifespan. The product is a foam made compound with a spring built into it, so when inserted into the shoe the device will adjust and mould itself into the trainer keeping a stern and solid shape. When inserted after a...

Words: 4311 - Pages: 18

Premium Essay

It for Sports Management

...IT for Sports Management Introduction This article will address the topic of information technology for sports management and will attempt to provide an overview of how information technology (called IT) is changing the nature of management practices in sport. The discussion of IT applications in the profession can be done in a few broad areas: 1st How the tools of today's "technological revolution" can be applied to the administration of sport. 2nd How developments such as the Internet and world wide web help in specific management functions such as training and marketing 3rd How e-commerce can make participation in sports more available through lower priced equipment and lastly, 4th The digital divide: and underlying condition that keeps some from participating fully in the benefits in the IT revolution. The Technological Revolution We are living in the midst of one of those very unusual occurrences that come along once every few generations: a society wide paradigm shift. The close of the last millennium has seen a fundamental change that is moving society the age of industry to the age of information. The currency in this new society that is being formed is information and the medium of exchange is called IT (and sometimes computer technology - CT). IT is simply the tools and methods used for the identification, organization and manipulation of facts that we call data. IT has become the engine that is driving all sectors of today's economy be it industry,......

Words: 2958 - Pages: 12

Free Essay

Red Bull

...promotion Red bull is involved in a lot of sports like motorsports, bike racing, winter sports, skateboarding and surfing. They have their logo on the equipment used for the sport. By generating publicity through the sports is ‘below the line’ promoting they do often not use traditional sponsorship method, they create their own sporting events such as Red Bull X-Fighters and Red Bull Air Race, where the world’s top FMX riders and pilots respectively perform world class flips, turns and tricks in front of tens of thousands of spectators. These events help to establish the brand values. They also begin the AIDA process with the participants and audiences for these events, creating awareness and interest in Red Bull products. Red bull used public relations when they involved Austrian skydiver Felix Baumgartner by sending him 24 miles into the stratosphere over New Mexico, United States, in a helium balloon before free falling in a pressure suit and then parachuting to Earth. Red Bull has not made public how much the stunt - which included funding the equipment, training and support staff – cost, although the balloon that took Baumgartner on his ascent is reported to have cost (£43,600) alone. Red bull used sales promotion as they gave away free cans of red bull they delivered them to 400 student campuses in 55 countries over 6 continents. Red bull use personal selling as they have teams of young women/men to sell their products at their sports events. Red bull use......

Words: 312 - Pages: 2

Free Essay

Marketing Plan: Burlington Sporting Goods

...Company Background This report is a comprehensive marketing plan for Burlington Sporting Goods, located in Alamance County, NC. Burlington Sporting Goods (BSG) is Alamance County’s oldest sporting goods store. Since the store opened in October 1947, BSG has offered a wide variety of sport related products and services to the people of Burlington and Graham. Along with retail sporting goods and apparel, BSG offers corporate screen-printing for team uniforms, a basketball facility and an indoor batting facility. The batting facility features a completely enclosed 70' x 70' batting cage with nine token operated pitching machines. Additionally, BSG offers Nike SPARQ training and hosts birthday parties and summer camps for basketball, cheerleading and baseball. Mission Burlington Sporting Goods strives to foster mutually beneficial ties in Alamance County. Since we opened our doors in October 1947, Burlington Sporting Goods has provided the towns of Graham and Burlington with a wealth of services for all their athletic and sport needs. We're the oldest sporting goods store in Alamance County, and we take pride in providing Alamance County with our team-oriented and friendly staff (BSG, 2013). The following plan is designed to boost the financial success and brand equity of Burlington Sporting Goods in order to help the organization achieve and maintain its stated mission. It features an analysis of BSG’s current position within its market, an analysis of the organization’s target...

Words: 7890 - Pages: 32

Premium Essay

Media Influences on Sport

...Media Influence On Sport When communication is spread not just between two individuals but rather between tens of millions of people it is known as mass media. Mass media is known as the central nervous system of society. "Mass media has many different purposes, such as providing information, entertaining, persuading and also by carrying a vague general function of culture to millions of people."(Frederick 18). In order for mass media to exist, there must be an audience. Today's society is very selective; each receiver reacts differently through his or her own experience and orientation according to mass media. Therefore, mass media exists in many different forms such as magazines, television, newspapers, internet, motion pictures, and even plays. Some examples of these forms of mass media are cosmopolitan magazine for young modern women and TSN television network for sports fans. With such extreme varieties of mass media existing in today's societies there are three major constraints that seem to have an impressionable impact. These constraints can keep mass media very restricted. The major constraint of mass media is competition. Each form of mass media wants to be the one to target the audience, so therefore competition between mass media is very strong, because capturing the inside of the sports world is critical. Apart from the competition among the various forms of media there is also competition among each form of the media example Fox network......

Words: 4231 - Pages: 17

Free Essay

Memo

...RES341 University of Phoenix August 15, 2011 Memo The purpose of this memo is to inform you that ABC Sports Equipment sales have declined due to the fact that a number of chain stores have moved in to the area and they also sell sports equipment. In order to meet our customer needs we have given customer surveys at the store and outside the store. Our surveys contain questions such as cleanliness of our store, hours of operation, competitive pricing, personalized services, product selection, and location of the store. After the surveys are done and the information is gathered we are going to see what are the customer needs. Then we will focus on what we need to change in the store to increase our sales Out of 60 surveys that where handed out 35 where returned. A total of 20 surveys where given to existing customers and 40 where handed out at a sporting event in a park for potential customers. A total of 30 men and 15 women took the survey. When asked if they knew where ABC Sports Equipment was located only 10 said yes and 15 said no. location of the store: 2.9, product selection: 2.5, hours of operation: 2.1, and competitive pricing: 1.8. The mean for possible customers competitive pricing: 4.0, personalized service: 3.8, production selection: 3.0, product selection: 2.5, hours of operation: 2.9, and cleanliness of the store: 2.9. After gathering all data we noticed that existing customers want more personalized service and a cleaner store. We know can work on......

Words: 393 - Pages: 2

Premium Essay

Management Analysis

...why?) The company I work for is the Sport goods in Eden Prairie. I also live in Eden Prairie, it is almost five minute away from where I live. I worked there for almost three years. The vision of the Sport goods is company is attracting more sport enthusiast and let more people enjoy the pleasure of sports. The entre employees agree with tis vision because we love sport. I like working there and it is my longest job I ever held that long. I prove the company culture. There is not much I would change it because for the year I have been working at Sport Goods I did not seen any hypocrisy. If I have problem or if I want to talk to the boss or the general manager I could so without seen middle managers. He welcome that and he told us all the time my doors are open anytime you want to talk to us. Value: Sport Goods, we think sports can make us got more friends, we also believe that people who like sports muse be full of enthusiasm in their mind. Enthusiastic people like to share their happiness with other people, so that’s why Sport Goods do not have a lot of advertisement. Sport Goods mostly depend on word-of-mouth marketing, because we believe that our customer’s enthusiasm is the best advertising Empowerment In Life Sport Goods, almost every employee has ownership spirit and a strong sense of responsibility. Our enterprise climate very nice, because of almost every employee likes sports, so keep higher positive attitude to work. In Sport Goods, every department can works......

Words: 518 - Pages: 3

Premium Essay

Red Bull Research Paper

...Slater White STR 356 Sports Promotion Professor Walpole 5/2/12 The World of Red Bull Red Bull is a sugary, caffeinated drink intended to give consumers a boost of energy. Available in cans ranging from, 8, 12, 16 and 20oz cans. Founded in 1984 by Austrian businessman Dietrich Mateschitz, Red Bull has become the worlds leading energy drink, a staple in many young, and active people’s lives. Much of Red Bull’s triumph in the industry comes from its ability to market itself within the sports industry. The approach is aggressive and exceeds simple sponsorship. Red Bull focuses much of its time on brand management, and ownership allows it to completely control how its brand is connected with a given sport. The drink claims to improve some of the most important attributes of successful sports people – fast reactions, concentration and endurance. Priding itself on these attributes, Red Bull realized how effective the drink would be within the sports industry. As soon as Mateschitz realized the possible profitability Red Bull could generate within the sports industry there was nothing stopping him. Red Bull began supporting approximately 500 extreme sports athletes and hosting exclusive parties for these amazing competitors. By 1997, Red Bull’s buzz marketing strategy proved successful. Brandon Steiner, of Steiner Sports Marketing says, "It's a good relationship with what the drink stands for and what the sport stands for. It doesn't surprise me to see that kind of synergy....

Words: 1640 - Pages: 7