Introduction:
Financing and accounting is a major part of any business without proper financing it will kill your business having good accounting, is crucial to all businesses. Nike has financed their ideas from the beginning with almost nothing. Oregon natives Phil Knight and Bill Bowerman took an idea and five hundred dollars and an idea became the biggest shoemaker ever. They have athletic footwear, apparel, and accessories for a variety of sports and fitness activities. Nikes subsidiaries are Converse, which designs, markets, distributes athletic lifestyle footwear, apparel and accessories also Hurley International LLC, which designs, markets, and distribute surf and youth lifestyle footwear, and apparel. The accounting used then were just them two and this idea today they bring in enough cash flow to finance all of their ideas and internally they have their own accounting department that controls and takes care of their financials.
Nikes Financial Position:
There is only one way to describe Nikes financial position, that is strong and grew from a five hundred dollar idea to a billion dollar industry. Nike is known everywhere and its products are distributed worldwide, its geographies include North America, Western Europe, and Japan, NIKE expects to generate average annual growth at a high single digit rate for the four-year period from fiscal 2014. The Company expects North America and Western Europe to reach over $14 billion and $6 billion, respectively, by fiscal year 2017. In its developing geographies in Greater China, Central & Eastern Europe, and Emerging Markets, the Company stated it expects to grow at a low double-digit average annual growth rate. For the Company’s Emerging Markets geography, it expects to grow at ...
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... other opportunities in this area. NIKE Golf – play a significant role in Nikes future growth plans. As of Q1 FY14, Converse is reported as separate segment while Hurley and Nike Golf are included in the overall financial results for the NIKE Brand (Nike 2013)
Conclusion:
Nike is a major power structure in the global economy, a financial land marketing powerhouse. On every level, they practice diversity, they are socially responsible, and Nike gives back to those who are less fortunate. Nike seems to keep improving on every level of business there innovative and never seem to stop looking for new ideas to keep the consumer excited waiting to see what next. Financially Nike has come from nothing five hundred dollars and an idea. This is what America is made of entrepreneurial-minded individual, which believes in an idea and make it come true with just a few dollars.
Nike generally has the largest earnings and highest gains to its share holders among all their American competitors (excluding adidas which is a German corporation). Nikes rising popularity creates a major stock demand and trade because it is one of the best performing mega-cap stocks rising 700%. Nikes Profit margins has expanded to 45% which which gives them and opportunity to
Nike's marketing strategy is in many ways the reason for the company success. Nike is now positioned as a premium-brand. Nike advertising is one of the most effective emotional branding examples in the advertising marketing in today’s world. Their customer loyalty is off the charts. All credit goes to the Nike brand strategy and masterful application of the emotional branding. That's exactly the kind of shrewd marketing attitude that drove Nike's past success. After perfecting in the art of big branding, Nike has now moved into a world in which its consumers want to be told less and just do more. Which is in a way, is such a big change after all.
For our final project we chose to analyze Nike Inc.’s stock performance over the past 15 years (year 2000 - 2015). We were interested in what the different variables had an effect on on their stock movement, primarily variables that included competitors, macroeconomic indicators, internal financial measurements, and worldwide sporting events.
Since its creation, Nike has proven itself as a popular brand and it has created niches by selling products such as footwear, apparels and various types of sports equipment. This paper will attempt to trace the product development of Nike shoes from its origins in conception and design to the manufacturing and production process located in contract factories in developing countries to advertising and marketing of Nike as a cultural commodity and finally, the retailing of the footwear around the world.
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.
Nike is a worldwide known business that many people around the globe are attracted to purchase. They make a variety of products ranging from shoes and clothes to sports gear, sports products, and many different accessories. Nike is designed for everyone ranging from infants to elderly. Because of their range of age for products, this makes them a huge competitor. Being able to appeal to all ages and styles of people.
...This is a major part of Nike's corporate culture, which then trickles down to Nike's management styles. Nike lets manager's keep lines of communication open and lets them determine their own decision making. The company also offers their employees something called LifeTrek. This is a benefit and compensation program that gives their employees a sense caring and trust. THE FUTURE With the increase in competition and limit of growth the U.S. athletic shoe industry, Nike is still slated to be a major leader in the market. The advertising and innovative marketing in the industry should still leave it extremely competitive. The only problem that Nike worries about are customers becoming less brand-loyal and buying cheaper athletic shoe brands. Nike is trying to make the point that it is worth spending more money on better quality made shoe, than buying a cheap shoe that will only last a little while. One major area that brings unlimited opportunities to Nike is the international market. In the United Sates, there are 4 people for every pair of Nikes, France has 11, Japan has 50, and China has 11,821. These figures show that the greatest growth for Nike is overseas.
Only a week earlier, on June 28, 2001, Nike had held an analysts' meeting to disclose its fiscal-year 2001 results.1 The meeting, however, had another purpose: Nike management wanted to communicate a strategy for revitalizing the company. Since 1997, its revenues had plateaued at around $9 billion, while net income had fallen from almost $800 million to $580 million (see Exhibit 1). Nike's market share in U.S. athletic shoes had fallen from 48%, in 1997, to 42% in 2000.2 In addition, recent supply-chain issues and the adverse effect of a strong dollar had negatively affected revenue.
Nike Incorporated is the number one leading sportswear and equipment provider in the world. They manufacture anything from casual clothes to sports equipment, shoes to socks, and basketballs to golf balls. As a result of its massive success, Nike employs nearly 30,000 people worldwide while manufacturing in 700 shops around the globe and has 45 offices outside the United States. Its extensive reach into the global market has Nike producing more exclusive products than any other manufacturer in the world. Nike’s headquarters is located in the metropolitan area of Portland, Oregon.
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.
Nike’s Asian operations had previously continued to soar generating US$300 million in 1994 in revenues to a whopping US$1.2 billion in 1997. However based on the Asian economic crisis, this had adversely affected revenues, while regional layoffs were inevitable. Nike also performed well in the European market generating about US$2 billion in sales and a good growth momentum was expected, however, some parts of Europe were only slowly recovering from an economic downturn. In the Americas (Canada and the U.S.A.), Nike experienced a growth rate for several quarters. The U.S. alone generated approximately US$5 billion in sales. The Latin American market at this point was exposed to economic volatility; however Nike still saw them as a market with “great potential for the future”.
Nike’s positioning in the market has more of a mass appeal compared to their main competitor Adidas who strive to make products for elite athletes. The positioning strategy for Nike is currently working at a satisfactory level as Nikes global annual sales between 2013-2014 was reported as 27.8 billion (Statista, 2014) compared to Adidas’ 19.95 billion (Statista, 2014). The global market for sports apparel is expected to grow at a compound annual growth rate of 4% between 2012-2019, Nikes compound annual growth rate during 2010-2012 was 12.3% which is an excellent result as the brand’s growth was larger than the market as well as outgrowing Nike’s closest competitors Adidas, Puma and Asics (Forbes,
Nevertheless, Nike is an extremely diverse company with outstanding organizational structure, impressive marketing strategy, and innovative products. The organizational structure of the Nike Corporation helped them become a leading innovator for the world with creative apparels and shoes. Their intelligent marketing strategies assist them in advertising their products to motive their customers and sell them. Their innovative product motivates customers with great performance footwear and quality designs to take on any obstacles. The Nike Corporation discovers various ways to improve their organizational structure to inspire the world.
Nike, Inc is one of the leading companies in the world that is known for its brand of athletic footwear, apparel, equipment and accessories.
Nike is a sports apparel and footwear company which first introduced their shoes in 1972. “At an investor meeting at its world headquarters in June 2011, NIKE, Inc. announced an increase to its fiscal 2015 revenue target to a new range of $28-30 billion, up from its previous target of $27 billion announced in May 2010. The company also increased its fiscal 2015 revenue target for the NIKE Brand to $24-25 billion, up from its previous target of $23 billion.” (Nike, 2014)