I believe General Shoe Corporation (GSC) should have a holistic view and approach to finding a solution to the possibility of being acquired by Athletic Gear, Inc. (AGI). As a company that has always valued their employees and keeping blue-collar jobs in the United States, I hold true that it is in everyone’s interest to choose a mixture of Option 2 and Option 3 and renegotiate with AGI, while trying to negotiate specific covenants. Option 1, I believe, places the company in a state of uncertainty and relies too heavily on the response AGI. We should take action and be persistent in providing the best for our shareholders and upholding the beliefs on which this company was founded on. I choose to mix Option 2 and 3 together because I believe it will be in everyone’ interest. With Option 2, we have the possibility to explore more opportunities and provide what is best for our workers and the company’s public image. Considering Option 3, it would be wrong for us to not inform the board of what Appomattox proposed in their conclusion, especially when we can hear their opinion on the matter. I do believe however that …show more content…
However, when comparing the multiples to total enterprise value (TEV), we see a different story. To expand on Appomattox’s advice and research I further calculated the TEV, from Exhibit 5, of each competitor and then chose to compare the multiples that have similar TEVs. The companies with similar values are as follows: D&B Shoe Company ($545,540), Surfside Footwear ($766,224), Templeton Athletic ($567,288). When comparing the multiples of these companies to the proposed multiples offered by AGI, we see that they are higher than the average between these companies. The average EBIT multiple is 6.3 compared to 7.5 and the average EBITDA is 5.4 compared to
The first financial ratio of the analysis is the Price to Earnings ratio (“P/E ratio”). The ratio is computed by dividing the price of one share of common stock, by the earnings per share of common stock. This analysis uses diluted earnings per share which assumes the issuance of new stock for all existing stock options. Also, the price of the stock was computed as an average of the fourth quarter high and low stock prices published in the 10K report of each company, because the year end stock prices were not listed for all the companies. Because the P/E ratio measures the relative costliness of different stocks, in relation to their income, it provides a useful place to begin the analysis.
Since the 1970’s Urban Outfitters INC. has produced a wide selection of clothing brands for the younger generation. Urban Outfitters INC. includes Free People, BHLDN, Anthropologie, Terrain and Urban Outfitters. The beginning of Urban Outfitters INC. started out in Philadelphia for college students, their fun loving affordable clothing appealed to students who were living under a college budget. It’s known for its “hipster” and “free thinking” clothing that would appeal to the younger generation. However in present day it seems as if the original purpose of Urban Outfitters INC. has been lost. The prices of clothing at Urban Outfitters and at their sister stores has increased drastically to where college students can barely afford it. Throughout the recent years Urban Outfitters INC. has found itself in multiple issues that effects the sales of their stores. For instance being reprimanded for their designs, being sued for stolen designs and having a president who supports anti-gay polictians. Considering all the negative aspects to Urban Outfitters and the loss of their traditional purpose Americans should not support Urban Outfitters Inc.
Under Armor is a leading developer and distributor of athletic gear. The product line consists of a wide variety of apparel, footwear, and accessories. Over the past few years, the company has grown at an impressive rate due to their increased product line, expansions to the international market and direct- to- consumer business. Analyzing Porter’s Five Forces will aid in understanding what the company will face and potentially overcome moving forward.
...gree and believe that they could get real results if everyone would consistently apply the company’s principles. I have learned personally in the business world consistency means a lot, all employees should have the same consequences. By letting go employees, managers and executives shows that the rules apply to all levels. It will cause everyone involved to have more respect for the company even if they don’t agree with the decision.
The second method we used to analyze the firm’s value was the Comparable Companies Method. We used the historical figures as of 1990 and Goldmans Sach’s Projections. With an average of 22.
Starting a company such as one with over 3000 stores in 9 countries comes from a small seed and grows into a giant tree sprouting in all different directions and this is what Gap Inc. has done. Any person who has heard of or knows of Gap needs to understand how Gap exploded into a multi-branch mega business that has taken over the contemporary and affordable fashion industry. It also has become the new way to start a clothing line, by taking a single simple idea and blowing it up into a giant multi retail collaboration. Now a reason such as opening a store because you couldn’t fit in a pair of jeans shows something. It shows the amount of ambitio...
Executive Summary Introduction Kimi Ford, a portfolio manager at NorthPoint Group, a mutual-fund management firm, was considering buying shares in the fund she manages, the NorthPoint Large-Cap Fund, with an emphasis on value investing. Ford held an analysts’ meeting to disclose its fiscal-year 2001 results and, most importantly, to communicate a strategy for revitalizing the company. Nike has maintained revenue of about $9 billion since 1997. However, its net income had fallen from almost $800 million to $580 million. Moreover, Nike’s market share in U.S. athletic shoes has fallen from 48% in 1997 to 42% in 2000.
The corporation should invest more money in research and innovation since this is what has helped them to make a product that rivals their competitors. At the same time, it is imperative for them to improve their machinery for cheap labor costs which will help the company increase its production allowing it to meet the demand in the market. By improving production leading to lower costs of making shoes, apparel, and equipment, Nike will achieve higher demand assuming a quality product is maintained in that process. They will stand a better chance of competing in the industry (Hill, 2009). The organization is already in a better position for meeting the demand, customer taste, and needs. The company should improve quality by focusing on developing lightweight products that are more durable compared to those offered by the competitors. Also, Nike can keep up their success by continuing to reinvent and improve their items and continue to meet the current demand by using new technology. It can also use the Internet to communicate with consumers (Hill, 2009). By developing new technology, Nike will allow the customers to suggest and design their shoes online. To achieve this goal, it is fundamental to enhance areas such as their website to make it more user-friendly. Finally, the company should pay attention to small startup organizations that enter the
This case study is about “Specialized Bicycle Components Inc.” known as Ride the Red “S”. Specialized was founded in 1974 by Mike Sinyard. According to Chris Murphy, director of marketing for Red “S”, specialized is for serious riders. He says, “The customer is buying the ride from us, not just the bike.” The company began to produce its own bike parts by 1976, and introduced the first major production mountain bike in the world in 1980. Specialized now has an extensive global distribution network of 5000 retailers in 35 countries in Asia, North America, South America, and Australia. They maintained a reputation as the technological leader in the bike and bike accessories. The formal mission is still the same since they established the company “To give everyone the best ride of their life.”
In the third situation, the one that involves the company’s softball team, I would take Action B, that is, seek the opinion of
We need to test our actions against the following criteria is it legal? Does it meet company standards? Is it fair to all stakeholders? Can it be disclosed? A decision making process consists of identifying possible solutions and then considering which of these possibilities has the best potential of solving the problem at hand. To find an optimal solution for a problem, it is important to explore as many alternative options as possible. There are 5 steps in the decision process these are discern the ethical issue, Identify possibilities, determine impact on stakeholders, appraise against ethical criteria and select a viable ethical option. In the disclosure process one would need to explain their reason for the option chosen and if a person can do this in a public forum then they reasonably believe that their choice is ethical.
Many global companies like Nike, Inc. are seen as role models both in the market place as well as in society in large. That is why they are expected to act responsibly in their dealings with humanity and the natural world. Nike benefits from the global sourcing opportunities, therefore areas such as production and logistics have been outsourced to partner companies in low-wage countries like China, Vietnam, Indonesia and Thailand. As a result the company is limited nowadays to its core competencies of Design and Marketing.
With the competitiveness of the US tire industry in 1992, Goodyear Tire and Rubber Company is reconsidering a proposal from the department store Sears to carry Goodyear Eagle brand tires. With a $38 million loss in 1990 and a change in top-level management in 1991, the Sears proposal from 1989 was being looked at again. These new top-level managers have two decisions to make: whether Sears should carry only the Goodyear Eagle brand or all of Goodyear’s tire line. Goodyear will have to look at their distribution policy and the potential backlash that could come from their independent franchised dealers.
This project concentrates on the Nike Sports shoe; Nike is one of most significant shoe manufacturing company worldwide. Sportswear manufactured by Nike is known for quality and is most liked brand of athletes. (Daniel, 2011)
In reviewing the case of New Balance Athletic Shoe, Inc. it is clear that there are a few major problems that the company is facing. First of all, New Balance falls behind its other major competitors, Nike, Adidas and Reebok, in the area of marketing. Unlike its competitors, New Balance does not undertake celebrity endorsements. This puts them at a disadvantage when it comes to brand building. This also causes the company to lose out somewhat on gaining awareness on a global scale as it lacks endorsements in major sporting events. Most global brand names generate strong brand recognition through celebrity endorsements in sporting events that would give them the needed momentum to carry their brand name further into the global market.