Financial Analysis Of Nike

For Nike's business model to continually flourish and stay profitable, the senior management team and strategic planners must continually monitor short, intermediate and long-term economic factors that will affect their operations. Nike's business model is heavily dependent on supply chains, as the majority of their products are manufactured in Asian nations, either in their own manufacturing centers or contract manufacturing partners. Sales forecasts for next-generation shoes, apparel and sporting equipment must be accurate to ensure the supply chain estimates and forecasts can meet product demand. The influence of economic factors on sales and marketing planning and strategy development is among the most immediate and significant for any enterprise operating in global markets (Cerullo, Avila, 1975). Strategic planners at Nike, working in conjunction with product development and product launch teams, must understand the price elasticity of demand for a given new product or an entirely new division before launching it. Economic data gives Nike senior management and strategic planners the insight necessary to determine which new products to launch or not, when, and in which specific regions of the world. Economic variables will in short tell Nike's senior management how to navigate risk and capitalize on opportunities as quickly as possible.

In this project, I have chosen to provide a microeconomic-based analysis on NIKE Inc. The study will include the analytic overview of the general market of Nike brand, as well as the information about the goods, service, and areas of operation. Throughout the research of this paper, I will discuss the cost of production, as well as the supply and demand in relation to microeconomics. Moreover, we will look at how supply and demand of this market regulates the equilibrium of quantity and price, as well as the economical efficiencies where the surplus for consumer and producer is maximized. Information will be explored to understand why businesses and people make decisions and how those actions we can be used for strategy. To conclude this research paper, I will take a deeper look and make recommendations for the future profitability, future growth and sustainability of NIKE Inc. (Hubbard & Obrien, 2015).

Nike is the leading and yet renowned supplier of athletic apparel and shoes. The company controls close to 33% of the global athletic shoe market (Dogiamis & Vijayashanker,2009).Nike was founded by Bill Power and Phil Knight in 1962 as a Blue Ribbon Support and then was later on renamed to Nike in the year 1968 (Patrow,2003).The company supplies very high quality product in close to 100 countries with major markets being located in the U.S,U,K, Asia Pacific as well as in the Americas. The company has managed to attain its lead and legendary position via the application of innovative and yet attractive product design which is backed by quality production as well as well crafted marketing strategies.

Expanding globally is a very serious decision for any corporation. Before making this decision, management should take into consideration the health of the corporation and identify the long term financial goals. In this assignment, I will discuss the importance for the financial managers of Nike Inc. to use economic variables in identifying long term financial goals and the major techniques/tools that the financial managers of Nike Inc. can use for forecasting future directions in the stock market and in the economy as a whole.

The company I have chosen to do my research financial analysis paper on is Nike Inc. NIKE, Inc., based near Beaverton, Oregon, is the world's leading designer, marketer and distributor of authentic athletic footwear,

Nike has revolutionized the way sportswear is sold and worn in today’s economy. They have found a way to sell gear that is made for athletics but is used in the everyday life of many generations. Nike has changed the social culture of many people. This is done through various methods of endorsements. Nike has perfected the art of advertising by finding the right formula of different ad styles.

has, it is very clear that the company is focusing on Nike's future business needs, developing the "bench strength" of the company’s ability through intentional pioneer advancement. In the long process of choosing the suitable candidates who are capable to work in the company, Nike is concerned in their team building because of their well-known brand image. In doing so, Nike can look for suitable candidates that are capable of discriminating task arranging, supervisor responsibility for training and tutoring, and organized learning by means of individual- and group based classroom and learning new things from the web. Looking ahead, key regions of center for NIKE, Inc. incorporate helping workers and supervisors see how to fabricate effective vocations through formal and casual preparing and improvement, enhancing administration advancement, and inviting thoughts. The compulsory test for job seekers who are looking up for higher positions in Nike, candidates have to take is to understand how the company works and how well will the candidates cop in working with the company for Nike’s main focus is to enhance the potential of their employee and develop a leadership capability, this is done in organization and ability audits straightforwardly connected to the business vital needs. In Nike, high position leaders and managers are considered responsible for enhancing the execution, potential,

As the brand name of Nike continue to soar, other companies in the industry; learning from the success Nike has experienced, start focusing more on brand development to keep up with the increasing levels of competition. These companies resort to brand maintenance, which has become the main target in this industry due to product differentiation made by Nike. Nike, being market-advantaged, produces an extensive range of products, through which it gains a balanced level of profits. This has influenced rival companies to initiate a new range of products in their businesses too. Previously these companies had high risks of failing in business, if their single products did not appeal to the market. Due to the impact of Nike’s business strategy, the other companies are also enlarging their product range,

Nike invested in their brand by getting sports heroes to advertise for their brand such as Michael Jordon, Tiger Woods and the Brazilian football team. This further fuel the products appeal towards the consumers.

Similarities & Differences: Within the financial statement of Nike, Inc. there are tremendous similarities due to the consistency as well efficiency of the conduction of business. However, with these similarities is a fair deal of differences due to economic stability as well as the adoption product ideas and innovative methods that aid Nike to continue for the better of the company: by reaching new levels of sustainability as they enhance product performance, by developing, more meaningful connections with consumers, and by presenting their products in compelling experiences at retail. The annual reports of 2010 to 2014 clearly distinguish the letter to shareholders in the same placement but the content with each year are not similar by any means; within 2010, they created six new strategic geographies to focus their effort where passion and culture of sport are strongest. Nike pushed forward an aggressive retail agenda in store and online. Revenue at $19 billion the previous year went down 1 percent under EPS and future orders. Their income from other operation contributed more than $2.5 billion in revenue and generated $2.8 billion in free cash flow from operations and had $5 billion in cash and short-term investments on their balance sheet. Revenue from direct to consumer increased 12% to near $2.5 billion. Gross margins came in at 46.3 percent for the year. That was the year of the World cup, whereby they showed tremendous acceleration they generated in the back of

Enderle, K., Hirsch, D., Micka, L., Saving, B., Shah, S., Szerwinski, T. (2000, March 14). Strategic Analysis of Nike, Inc. Retrieved on December 14, 2005, from

Nike has an umbrella of brands under its name like Nike Golf, Nike Pro, Nike+, Air Jordan, Air Force 1, etc. Nike is a highly recognizable brand across the globe as because of it’s swoosh logo and the trademark “Just Do It.”. Nike is endorsed by many famous sports personality which makes the brand more desirable.

Nike, Inc. has been the world’s leading innovator and provider in athletic footwear, apparel, equipment and accessories for 50 years. Their mission has been to bring inspiration and innovation to every athlete in the world; if you have a body, you are an athlete. Arguably one of the most innovative companies in the world, Nike has built its brand into an iconic world-class powerhouse that continues to dominate the market with no signs of slowing up. Nike’s marketing and advertising have been breakthrough, aspirational, and legendary over the years, featuring high-profile athletes and heroes.

The report is about Nike, regarding the case study. The report elaborates on the aspects including buyer behaviour, brand image, consumer decision making, and marketing research techniques applicable to Nike. 3.0 Introduction Nike is the worlds number one sports shoe company. In the US Nike dominates 35% (source: see appendices) of the sports shoe market and its products are sold in more than 140

Over the last decade, Nike seems to have lost its magic formula. Company has been gradual sliding down from its high market seat. After disappointing sales, Nike has carry out a series of investigation to identify problem faced by them. In order to address the problems discussed in this case study, it is essential to identify the problems faced.