The Company Objectives are (a) to provide a supportive work environment to help employees maximize their contribution to Nike (b)provide quality and innovative services internally and externally (c) identify focused customer segment opportunities and (d) establish ties with those customer segments to (e) maximize profits.(www.trizera.com). Nike competes with numerous athletic and leisure shoe and apparel companies all over the world. Apparel sales also rebounded thanks to demand for its namesake brand as well as Michael Jordan merchandise, which made up for lost business when Nike’s contract with the NBA expired last year. Nike: Company Financial Analysis 1135 Words | 5 Pages. Operating performance ratios describe the relationship between the Nike Inc.’s level of operations and the assets needed to sustain operating activities. Writing in Canada, Exporter, Importer, Public Company, Headquarters Location, Liabilities, Stockholder’s Equity, & Shares, CDA/Investment Insider Buying and Selling Activity (000’s) as of 10/08/01, Celebrity endorsements of its athletic products, Consistent profits over the last several years, Profitable collaborations with strategic partners worldwide, Outsourcing through its international subsidiaries and Diversity of products, Price of Nike products generally perceived as pricey, Allegations of labor abuse by Nike corporate subsidiaries, Expansion into sporting goods and general merchandise sales(Sage 2005), Innovative new campaign on running bare feet as sales generator (Lees 2005), Acquisition of starter brand of low priced shoes to expand market (Sage 2005), New strategy and logo for Bauer and Nike Hockey brand (New Strategy, 2005), Rising oil process pinching consumer spending for pricey shoes, Acquisition of Reebok by Adidas-Saloman poses potent competitive threat (Carr 2005). Gross margin increased 150 basis points to 45.7% primarily due to higher average selling prices and margin expansion in NIKE Direct, partially offset by impacts from changes in foreign currency exchange rates and higher product costs. Branch offices are located at New York city, Yarmouth Maine, Montreal Canada, Costa Mesa California and various locations all over the world. Bernroider, E. (2002). “ADIDAS And Reebok join forces: neither company alone could. Company Name: Nike, Inc. Industry (SIC) 3021 - Rubber and Plastics Footwear: Latest report: 11/30/2019 (filed 1/07/2020) Revenue: $40,781 million (ranked #1 out of 26 companies in the industry) Assets: $26,602 million (ranked #1) Financial position and performance . * Baugh, Alison. University students advice. Top company news, earnings report, analysis and more. The papers are not supposed to be submitted for academic credit. [Online] Available at: http://www.trizera.com/jsp/nikehist.html; accessed 10/24/2005. Nike’s primary goal is to supply athletes with exceptional products and wearable that aids them in better sports performance. The Company’s Mission statement is “To maximize profits to shareholders through products and services that enrich peoples’ lives” while their value statement is “To bring inspiration and innovation to every athlete in the world.” John McEnroe, Joan Benoit, Shane Warne and Andre Agassi became some of the famous athletes who promoted Nike products. However as of July 2005, the Company has been included in the social responsibility index because there have been significant efforts within the organization to address the concerns of the critics and take action on the corporate shortcomings (www.nike.com). The robust sales marked a turnaround from last quarter, when the world’s largest maker of athletic shoes reported its slowest revenue rise in nine quarters. Nike Joyride joins Nike Air and Nike React as the latest proprietary innovation within the company's diverse array of cushioning platforms. Coupled with its iconic “Swoosh” logo and its equally catchy tagline, Nike’s strength is that it has emerged as a “Can Do” company. Internal – Strength. A statement popularly known as the Nike mission statement, “Bring inspiration and Innovation to every athlete* in the world (*If you have a body, you are an athlete)”, has become the defining term for the company, Nike. Unfortunately, Nike is very much dependent on the US market and is little diversified beyond the footwear and sports apparel markets. Moreover, Nike’s market share in U.S. athletic shoes had fallen from 48% since 1997 to 42% in 2000. The SWOT Analysis of Nike Inc. illustrates the company's key strengths and opportunities from its external environment that can be consolidated to further strengthen the company. Wholly-owned NIKE, Inc. subsidiary brands include Converse, which designs, markets and distributes athletic lifestyle footwear, apparel and accessories; and Hurley, which designs, … The report also manifests intelligence on Nike's internal weaknesses and external threats that can cripple its growth. “Adidas wins bid for 2008 Olympic Games.” Australian Business. Nike currently employs about 24,667 employees worldwide and its annual sales as of May 2005 were $13,739.70 M. Total assets as of May 2005 were 8793.5 million dollars and total liabilities 3149.3 million dollars and revenue rise was slow during the last quarter. Orders for delivery through January were up 11 percent from a year earlier, but Beaverton, Ore.-based Nike said it was keeping its full-year profit forecast because rising raw-material costs are expected to offset the strong sales growth. However, the merger of Adidas and Reebok poses a potent competitive threat for Nike’s future profitability, as also rising gas prices which could impact upon consumer spending. Nike currently employs about 24,667 employees worldwide and its annual sales as of May 2005 were $13,739.70 M. Total assets as of May 2005 were 8793.5 million dollars and total liabilities 3149.3 million dollars and revenue rise was slow during the last quarter. Nike’s product … The company is Nike, Could you write this following instructions Globalization Why do companies engage in international trade? 1. the company. “Certainly buying a high-price athletic shoe is not necessarily a consumer staple,” said analyst Leddy. 1. … Nike Inc. is one of the biggest sports footwear, apparels and equipment company in the world. Research project: Thecase of Tesco, Sainsbury’s and Morrison’s. 4 pages (1000 words). * “The History of Nike”. The Seattle Times, September 20, p C1, APPENDIX 2; COPY OF ARTICLE BY ALEXANDRIA SAGE. Some of our information is provided by third party services and we cannot guarantee that is complete, accurate, current, reliable or appropriate for your needs. Its main focus is to produce quality and … A strategic audit of Nike Inc. and its wholly owned subsidiaries was conducted by gathering the company’s financial data, press releases, industry information, company history and current projects… Selling and administrative expense increased 9% to $3.3 billion. Some analysts questioned whether the market for pricey shoes can withstand an economic downturn if rising fuel prices continue to pinch consumer spending. [pic] Growth Strategy Nike operates in several market segments. The idea of an athletic shoe was taken by Bill Bowerman whom was a respected track and field coach at the University of Oregon in the nineteen fifties. Before discussing Nike competitors, let us know the company background and information. Joyride is engineered to help keep legs fresh by delivering a personalized underfoot experience with great impact absorption in a surprisingly light, energy-returning package. * Nike: Company Overview: [Online] Available at: http://www.nike.com/nikebiz/nikebiz.jhtml?page=3; accessed 10/24/2005, * Nike: Company Profile and financials: [Online] Available through the Gale, * “New strategy for Nike’s hockey brands” just-style.com, Oct 5, 2005, * Pullen, Jill. Nike designs and manufacture a long range of products starting from sport shoes, jerseys, shorts, cleats for almost all the sports be it baseball, football, tennis, golf, basketball, ice-hockey etc. Nike company analysis; 0. Analysis of Short-term (Operating) Activity Ratios. Understanding Concepts of Strategy in Business and War, Essay (2005) “Utah State University: Nike President gives Utah State. Nike Analysis 1780 Words | 8 Pages. Just Do It : An Analysis of Nike Inc. January 22, ... Due to the sheer size of the company, Nike works under a hierarchal system, with the CEO at the top, and then filtering down to all other employees from there. Between January and November this year, the Nike Run Club app was downloaded 15.4 million times around the world, up 45.3% versus the same period in 2019, according to data firm Sensor Tower. Nike’s management analyzes its internal environment and makes decisions based on that analysis. In the U.S. markets, Nike has remained the industry leader in the athletic shoe market. Wholly-owned NIKE, Inc. subsidiary brands include Converse, which designs, markets and distributes athletic lifestyle footwear, apparel and accessories; and Hurley, which designs, markets and distributes surf and youth lifestyle footwear, apparel and accessories. Full Text: COPYRIGHT 2005 The Seattle Times Headquarter of the company are located in Oregon, which is near Beaverton, the USA. We aim to help investors learn more about the companies in which they invest. Revenues for Converse were $555 million (+8%), mainly driven by double-digit growth in Asia and through digital globally, which was partially offset by declines in the U.S. Thankfully, Nike has several opportunities for growin… The biggest strength of Nike is that it is an extremely competitive organization with its approach of “Just Do It” slogan for its brand epitomizing its attitude towards business. Nike brand alone is valued at approx 30 Billion in 2017. The logo of Nike is instantly recognized by people anywhere in the world. Is your company “global”? Copyright (c) 2005 Seattle Times Company, All Rights Reserved. However, in terms of social sustainability reports, Nike was unable to qualify in terms of its social index, because since 2001, there were concerns expressed about the labor practices of its sub contractors, such as low wages, forced overtime, using military to suppress protests and unsafe working conditions. A PESTEL/PESTLE Analysis of Nike Inc. identifies key issues that the company must include in its strategic formulation. Quarterly revenue rose 8 percent to $3.9 billion, helped by an 11 percent gain in the U.S. athletic-footwear business and 8 percent growth in total U.S. sales, including apparel and other merchandise. Nike is the world’s leading designer, marketer and distributor of authentic athletic footwear, apparel, equipment and accessories for a wide variety of sports and fitness activities. Nike needs to watch out for threats associated with these weaknesses, and others such as tax clampdowns or counterfeiting. Byline: Alexandria Sage; Reuters. Nike is a giant organization competing in a tough market, but it’s doing incredibly well. The Swoosh. NIKE SWOT Analysis. The Company was founded by Bill Bowerman and Phil Knight and the first shoe with the Nike Swoosh was introduced in 1972. This SWOT Analysis of Nike Inc. shows that the company has the strengths needed to support its global leadership in the sports footwear, equipment and apparel market. We do not guarantee that our services, information, data and/or recommendations are complete, accurate, current, reliable or appropriate for your needs. (2005). Nike is considered as one of the most innovative company in the industry [ CITA TION Fas \l 1036 ]. It is also the biggest and best sports shoe and apparel brand of the world. Nike Strategic Analysis 3 I. The Company’s strategic alliance with NBA and its celebrity promotions through the NBA star Michael Jordan have also reaped rich rewards for the company in the marketplace. Since being founded in 1962, Nike has grown from a small fledgling shoe retailer into a world-wide corporate giant. The company primarily operates in the Americas, Europe, the Middle East, Africa and Asia Pacific. Nike has benefited from strong demand for premium shoes like the Shox running shoe, and it recently bought the Starter brand of lower-priced shoes that are sold by Wal-Mart Stores, giving it access to a broader market. (Sage 2005: C1). Evaluates revenues and output generated by the Nike Inc.’s assets. The company specializes in athletic wear, providing footwear, apparel, athletic equipment, and accessories. The company earned $432.3 million, or $1.61 a share, in the first quarter ended Aug. 31, up from $326.8 million, or $1.21 a share, a year earlier. Thus, it is recommended that Nike Inc. must reform its strategies in these areas. It is popular for its best and largest sports and apparel brands on the international level. U.S. consumer confidence dropped to a 13-year low in early September, battered by record gas prices and Hurricane Katrina. We believe investing should be less about trying to find patterns in charts and more about investing in the companies that better represent your vision for the future. According to Charlie Denson, the President of Nike, the success of Nike has a great deal to do with the power of the human spirit and through the establishment of an emotional connection with the customer. Why do companies engage in international trade? This has been the keynote of the Company’s growth strategy. (Gale Database), As of September 20th, quarterly profits had jumped by 32% and pushed up the value of its stock up to $83.45. “Nike: Free to hit global screens.” Australian Business Intelligence. During its first year, sales for Nike were $8000, but as of November 30th, annual sales for Nike were over 12 billion dollars. 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