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					Nike, Inc. Strategic Analysis 2009
Jarryd Phillips, Jermaine West, Spencer Jacoby, Othniel
Hyliger, Steven Pelletier
HISTORY                     FINANCIAL TRENDS
MAJOR MILESTONES             STRENGTH & WEAKNESSES
CURRENT VISION & MISSION     IFE MATRIX
STATEMENTS
                            STRATEGIC ASSESSMENT
PROPOSED VISION & MISSION
                             SWOT MATRIX
STATEMENTS
                             SPACE MATRIX
                             GRAND STRATEGY MATRIX
EXTERNAL ASSESSMENT          BCG MATRIX
 POSITIONING MAP             IE MATRIX
 CPM MATRIX                  MATRIX ANALYSIS
                             QSPM
 OPPORTUNITIES & THREATS
                             RECOMMENDATIONS
EFE MATRIX                   OBJECTIVES

INTERNAL ASSESSMENT         STRATEGIC IMPLEMENTATION
 ORGANIZATIONAL CHART        PROJECTED INCOME STATEMENT
                             PROJECTED BALANCE SHEET
 2009 INCOME STATEMENT
                             PROJECTED FINANCIAL RATIOS
 2009 BALANCE SHEET
 CURRENT FINANCIAL RATIOS   EVALUATION
                             BALANCED SCORECARD
                            SOURCES
                            QUESTIONS
                                                          2
3
•   1970- The Swoosh first appears on a football/soccer cleat called the Nike.
•   1978- Tennis "bad boy" John McEnroe is signed by Nike to an endorsement
    contract.
•   1989- Nike enters the European football market
•   1994 +2003- Nike wins Advertiser of the Year at the Cannes Advertising
    Festival.
•   1996- Nike signs Tiger Woods
•   1999- Bill Bowerman, co-founder of Nike, dies on Dec. 24 at age 88.
•   2002- Nike purchases Hurley International
•   2003- Nike acquires once-bankrupt rival Converse for $305 million
•   2004- Phil Knight steps down as CEO and President of Nike, but continues
    as chairman
•   2005- Nike Signs Tennis Pro Rafael Nadal.
•   2006- Nike and Apple release the Nike+iPod sports kit
•   2008- Nike sells its Nike Bauer hockey equipment division & purchases
    Umbro.

                                                                                 4
"To bring inspiration and innovation to every
athlete in the world"

        If you have a body, you are an athlete.
                                      Nike co-founder Bill Bowerman




                                                             5
To lead in corporate citizenship through
proactive programs that reflect caring for the
world family of Nike, our teammates, our
consumers, and those who provide services
to Nike.




                                             6
To equip every athlete with products that
combine performance, quality, and fashion.




                                             7
At Nike, we desire to deliver superior products to customers and athletes
that are both safe and dependable (1, 2 and 6). Our well trained
employees and experienced executives will ensure a competitive
advantage for our markets, growth for the company, and profits for our
shareholders (5). Our commitment to social responsibility and the
communities in which we operate will ensure business relationships and
alliances for the future and a perception of concern with our stakeholders
(6, 8). We will continue to utilize innovation and technology to provide our
employees with the best possible work environment while adapting to the
many changes in the global market (3, 4, 7, and 9).


                                                    1. Customers
                                                    2. Products or services
                                                    3. Markets
                                                    4. Technology.
                                                    5. Concern for survival, growth, and
                                                    profitability
                                                    6. Philosophy
                                                    7. Self-concept
                                                    8. Concern for public image
                                                    9. Concern for employees          8
9
            High Performance




Low Price                      High Price




            Low Performance



                                            10
                                                  NIKE              ADIDAS                 PUMA
                                                   Weighted            Weighted            Weighted
 Critical Success factors   Weights Rating          Score     Rating    Score     Rating    Score
                            0.0 to 1.0   1 to 4               1 to 4              1 to 4
Advertising                  0.10          3        0.30        4       0.40        3       0.20
Product Quality              0.08          4        0.32        3       0.24        2       0.16
Price Competitiveness        0.08          2        0.16        3       0.24        1       0.08
Management                   0.06          3        0.18        4       0.24        2       0.12
Financial Position           0.08          4        0.32        3       0.24        1       0.08
Customer Loyalty             0.05          3        0.15        2       0.10        1       0.05
Global Expansion             0.05          3        0.15        4       0.20        2       0.10
Market Share                 0.08          4        0.32        2       0.16        1       0.08
Brand                        0.09          4        0.36        3       0.27        1       0.09
Endorsement Deals            0.10          4        0.40        3       0.30        3       0.30
Portfolio Diversification    0.08          3        0.24        4       0.32        2       0.16
Product Placement            0.09          3        0.27        2       0.18        1       0.09
Research & Development       0.06          3        0.18        4       0.24        1       0.06
Totals                       1.00                   3.35                3.13                1.57

                                                                                                      11
1. Creating sportswear that would incorporate recycled
   materials from their own production lines and other
   places.
2. Promotion as a fashionable wear, not just sportswear.
3. Growing segment of the female athletes.
4. International expansion into emerging markets – e.g..
   India
5. Additional marketing of existing products to appeal to
   new demographic groups.
6. Develop new alliances with companies that are
   respected regarding social responsibility.
7. Brand reorganization by market regions
                                                        12
1. High competitive industry
2. Failure to respond to market trends in timely
   manner could greatly affect financial position.
3. Production of counterfeit goods, and generic
   products.
4. Negative public perception created by
   environmental, child labor, contracted
   manufacturing issues, and sponsored athletes.
5. International currency changes could decrease
   profits.
6. Federal Trade regulations in dealing with foreign
   manufactures.
                                                       13
      External Opportunities
1. Creating sportswear that would incorporate recycled
materials from their own production lines and other places.        0.05   3   0.15
2.   Promotion as a fashionable wear, not just sportswear.         0.06   2   0.12
3.   Growing segment of the female athletes.                       0.08   3   0.24
4.   International expansion into emerging markets – e.g. India    0.12   4   0.48
5.   Additional marketing of existing products to appeal to new
demographic groups.                                                0.07   2   0.14
6.   Develop new alliances with companies that are respected
regarding social responsibility.                                   0.06   1   0.06
7.   Brand reorganization by market regions                        0.07   2   0.14

       External Threats
1.    High competitive industry                                    0.14   4   0.56
2.    Failure to respond to market trends in timely manner could
greatly affect financial position.                                 0.09   4   0.36
3.    Production of counterfeit goods, and generic products.       0.06   2   0.12
4.    Negative public perception created by environmental, child
labor, contracted manufacturing issues, and sponsored athletes.    0.09   3   0.27
5.    International currency changes could decrease profits.       0.06   2   0.12
6.    Federal Trade regulations in dealing with foreign
manufactures.                                                      0.05   2   0.27

Totals                                                             1.00       3.03   14
15
                                                                             Philip H. Knight
                                                                                Chairman of
                                                                                 the Board




                                                                             Mark G. Parker
                                                                            CEO and President




                                           David J. Ayre     Ronald D. McCray                                              Trevor Edwards Vice                    John Slusher
Gary M. Destefano      Donald W. Blair                                                        Bernard F. Pliska                                                                    Eric D. Sprunk Vice
                                           Vice President      Vice President                                                President Global                     Vice President
President of Global   Vice President and                                                       Vice President                                                                       President Global
                                           Global Human     Chief Administrative                                            Brand & Category                         Global
  Operationsitle             CFO                                                         Corporate Controller                                                                           Footwear
                                            Resoursces            officer                                                        Management                   Sports Marketing



 Hans van Alebeek
                                                                                                           Charles D. Denson                  Lewis L. Bird III
  Vice President,
Global operations &                                                                                             President Nike                   President
                                                                                                                    Brand                        Affiliates
    Technology




                                                                                                                                                                                       16
                                                                    Year Ended May 31

             (In millions, except per share data)       2009              2008              2007


Revenues                                            $ 19,176.10       $   18,627.0      $   16,325.9

Cost of sales                                       $ 10,571.70       $   10,239.6      $    9,165.4

Gross margin                                        $   8,604.40      $    8,387.4      $    7,160.5

Selling and administrative expense                  $   6,149.60      $    5,953.7      $    5,028.7

Restructuring charges (Note 16)                     $    195.00       $           -     $               -

Goodwill impairment (Note 4)                        $    199.30       $           -     $               -

Intangible and other asset impairment (Note 4)      $    202.00       $           -     $               -

Interest income, net (Notes 1, 7 and 8)             $      (9.50)     $      (77.1)     $      (67.2)

Other (income) expense, net (Notes 17 and 18)       $    (88.50)      $          7.9    $       (0.9)

Income before income taxes                          $   1,956.50      $    2,502.9      $    2,199.9

Income taxes (Note 9)                               $    469.80       $      619.5      $      708.4

Net income                                          $   1,486.70      $    1,883.4      $    1,491.5

Basic earnings per common share (Note 12)           $       3.07      $       3.80      $       2.96

Diluted earnings per common share (Note 12)         $       3.03      $       3.74      $       2.93

Dividends declared per common share                 $       0.98      $      0.875      $       0.71

                                                                                                   17
                                                                                         May 31,
                                                                                2009                 2008
                                                                        (In millions)
                                          ASSETS
Current assets:
        Cash and equivalents                                            $ 2,291.10            $ 2,133.90
        Short-term investments                                          $ 1,164.00            $    642.20
        Accounts receivable, net (Note 1)                               $ 2,883.90            $ 2,795.30
        Inventories (Notes 1 and 2)                                     $ 2,357.00            $ 2,438.40
        Deferred income taxes (Note 9)                                  $    272.40           $    227.20
        Prepaid expenses and other current assets                       $    765.60           $    602.30
              Total current assets                                      $ 9,734.00            $ 8,839.30
Property, plant and equipment, net (Note 3)                             $ 1,957.70            $ 1,891.10
Identifiable intangible assets, net (Note 4)                            $    467.40           $    743.10
Goodwill (Note 4)                                                       $    193.50           $    448.80
Deferred income taxes and other assets (Notes 9 and 18)                 $    897.00           $    520.40
             Total assets                                               $ 13,249.60           $ 12,442.70
                               LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
         Current portion of long-term debt (Note 8)                     $       32.00         $         6.30
         Notes payable (Note 7)                                         $     342.90          $      177.70
         Accounts payable (Note 7)                                      $   1,031.90          $    1,287.60
         Accrued liabilities (Notes 5 and 18)                           $   1,783.90          $    1,761.90
         Income taxes payable (Note 9)                                  $       86.30         $        88.00
                 Total current liabilities                              $   3,277.00          $    3,321.50
Long-term debt (Note 8)                                                 $     437.20          $      441.10
Deferred income taxes and other liabilities (Note 9)                    $     842.00          $      854.50
Commitments and contingencies (Notes 15 and 18)                         $           -         $            -
Redeemable Preferred Stock (Note 10)                                    $          0.3        $           0.3
Shareholders’ equity:
         Common stock at stated value (Note 11):
               Class A convertible — 95.3 and 96.8 shares outstanding   $          0.1        $           0.1
               Class B— 390.2 and 394.3 shares outstanding              $          2.7        $           2.7
         Capital in excess of stated value                              $   2,871.40          $    2,497.80
         Accumulated other comprehensive income (Note 14)               $      367.50         $       251.40
         Retained earnings                                              $   5,451.40          $    5,073.30
                Total shareholders’ equity                                    8693.1                 7825.3 18
                Total liabilities and shareholders’ equity                   13249.6                12442.7
   Liquidity Ratios
Current                        2.97
Quick                          2.25
   Leverage Ratios
Debt to total assets            0.06
Debt to equity                  0.09
Long-term debt to equity        0.05
Times-interest-earned ratio    61.06
    Activity Ratios
Fixed Assets Turnover          9.8
Total Assets Turnover          1.45
Inventory Turnover             8.14
  Profitability Ratios
Gross profit margin            0.45
Operating profit margin        0.13
Net profit margin              0.08
Return on assets               0.11
Return on equity               0.17
Price-earnings ratio           18.83
EPS                             3.03

    Growth Ratios             3 Years
Sales Growth%                 0.28226
Net Income Growth%            0.06803
Earnings per share Growth%    -0.4261
                                        19
Dividends per share Growth%   -0.1695
 Date      Sales        EBIT      DEPRECIATION   TOTAL NET INCOME   LONG TERM DEBT

May-09   19.18 Bill   1.96 Bill    347.00 Mill       1.49 Bill        437.20 Mill

May-08   18.63 Bill   2.50 Bill    312.80 Mill       1.88 Bill        441.10 Mill

May-07   16.33 Bill   2.20 Bill    279.60 Mill       1.49 Bill        409.90 Mill

May-06   14.95 Bill   2.14 Bill    291.80 Mill       1.39 Bill        410.70 Mill

May-05   13.74 Bill   1.86 Bill    266.50 Mill       1.21 Bill        687.30 Mill




                                                                                     20
1. Recognized brand name – ‘Swoosh’ is ubiquitous
2. Strong in research and development – innovative
   product development
3. Strong marketing campaign - sponsors top
   athletes. Marketing practices enables them to
   expand the athletic market.
4. Diverse portfolio
5. Successful advertising campaigns.
6. Customer loyalty
7. Strong financial position
8. Strong international presence

                                                 21
1. Products are highly priced
2. Revenues are still mostly dependent upon
   footwear sales
3. History for violations of minimum wages, child
   labor and over times in its manufacturing
   countries.
4. Little control over quality of products from 3rd
   party contractors
5. Anti-globalization groups
6. Price sensitivity of products

                                                      22
      Internal Strengths

Recognized brand name – Swoosh is ubiquitous             0.10   4   0.40
Strong in research and development – innovative
product development                                      0.07   3   0.21
Strong marketing campaign - sponsors top athletes.
Marketing practices enables them to expand the
athletic market                                          0.09   4   0.36

A very professionally competitive company                0.08   3   0.24
Diverse portfolio                                        0.08   3   0.24
Successful advertising campaigns                         0.09   4   0.36
Customer loyalty                                         0.06   3   0.18
Strong financial position                                0.09   4   0.36
Strong international presence                            0.10   4    0.4
      Internal Weaknesses
Products are highly priced                               0.06   2   0.12
Revenues are still mostly dependent upon footwear
sales                                                    0.05   2   0.10

History for violations of minimum wages, child labor
and over times in its manufacturing countries.           0.06   2   0.12
Little control over quality of products from 3rd party
contractors                                              0.05   1   0.05
Anti-globalization groups                                0.04   2   0.08
Price sensitivity of products                            0.06   2   0.12
       Totals                                            1.00       3.10   23
24
25
Financial Strength          rating is 1 (worst) to 6 (best)              Ratings
     1 Liquidity                                                           6.0
     2 Leverage                                                            6.0     ES average               -1.29
     3 Working capital                                                     6.0     CA average               -1.43
     4 Return on assets                                                    4.0     IS average                5.29
     5 Return on equity                                                    4.0     FS average                5.29
     6 Price per earnings                                                  6.0
     7 Earnings per share                                                  5.0     X Coordinate             3.86
Industry Strength           rating is 1 (worst) to 6 (best)   FS Total    37.0     Y Coordinate             4.00
     1 Profit potential                                                    6.0
     2 Extent Leveraged                                                    5.0
     3 Economies of scale                                                  5.0     Strategy ->>>>   Aggressive
     4 Growth potential                                                    5.0
     5 Financial stability                                                 6.0
     6 Resource utilization                                                5.0
     7 Diverse Portfolio                                                   5.0
Environmental Stability rating is -1 (best) to -6 (worst)     IS Total     37.0
     1 Price range of competing products                                   -2.0
     2 Competitive pressure                                                -2.0
     3 Ease of exit from market                                            -1.0
     4 Successful and recognized advertising                               -1.0
     5 Endorsement agreements                                              -1.0
     6 Price elasticity of demand                                          -1.0
     7 Risk involved in business                                           -1.0
Competitive advantage rating is -1 (best) to -6 (worst)       ES Total     -9.0
     1 Market share                                                        -1.0
     2 Global presence                                                     -1.0
     3 Strong investor reputation                                          -1.0
     4 Technological innovation                                            -1.0
     5 Product life cycle                                                  -2.0
     6 Customer loyalty                                                    -1.0
     7 Control over suppliers and distributors                             -3.0
                                                              CS total    -10.0
                                                                                                                 26
                               Rapid Market Growth




                 Quadrant II
                                                      Quadrant I




Weak
Competitive                                                        Strong
Market                                                             Competitive
                                                                   Market


               Quadrant III


o   Market Development                               Quadrant IV
o   Market Penetration
o   Product Development
o   Forward Integration
o   Backward Integration
o   Horizontal Integration
o   Related Diversification    Slow Market Growth
                                                                          27
      High   1.0        0.9           0.8     0.7      0.6      0.5        0.4           0.3        0.2     0.1      0   Low
       +25
       +20                             II                                                       I
       +15                        Stars                                             Question Marks
       +5
                          (4) 11%
  (3) 17%

                      (1) 35%
IGR    0

                          (2) 37%
       -5
                                  Cash Cow                                             Dogs
       -15
                                       III                                               IV
       -20

       -25
      Low
                      Divisions        Revenue      % Revenue    Profits         % Profits     RMSP       IG Rate%

                      (1) U.S.          6,542.9       39%        837.2             35%          1          1.20%

                     (2) AMEA           5,512.2       33%        877.1             37%          1         -2.20%

                   (3) Asia Pacific     3,322.0       20%        394.6             17%          1          2.70%

                    (4) Americas        1,284.7        8%        263.6             11%          1          1.20%
                                                                                                                               28
                        Total          16,661.8       100%       2,372.5          100%
          High 3-4




E
F   Medium 2-2.99

E



        Low 1-1.99




                     Strong 3-4   Average 2-2.99   Weak 1-1.99


                                     IFE



                                                                 29
Alternative Strategies       IE   SPACE   GRAND   BCG   Count
Forward Integration           x     x       x      x      4
Backward Integration          x     x       x      x      4
Horizontal Integration        x     x       x      x      4
Market Penetration            x     x       x      x      4
Market Development            x     x       x      x      4
Product Development           x     x       x      x      4
Related Diversification             x       x             2
Unrelated Diversification           x                     1
Horizontal Diversification
Joint Venture
Retrenchment                                       x     1
Divestiture                                        x     1
Liquidation                                        x     1



                                                             30
                                                                          Market Expansion   Prod/Recycle/Materials   Add. Sports Accessories
Key factors                                                     Weight    AS          TAS      AS           TAS        AS               TAS
External                                                                 1 to 4               1 to 4                  1 to 4
Create products from recycled materials                          0.1       3         0.3        2          0.2          4              0.4
Promotion as a fashionable wear, not just sportswear.            0.07      3         0.21       1          0.07         2              0.14
Growing segment of the female athletes                           0.08      -           -        -            -          -                -
International expansion into emerging markets - India            0.12      4         0.48       2          0.24         1              0.12
Add. marketing of existing prod - appeal to new groups           0.1       3         0.3        2          0.2          4              0.4
New alliances with co. respected for social responsibility       0.06      3         0.18       2          0.12         1              0.06
Brand reorganization by market regions                           0.06      4         0.24       1          0.06         2              0.12
High competitive industry                                        0.08      4         0.32       3          0.24         2              0.16
Failure to respond to market trends in timely manner             0.06      -           -        -            -          -                -
Negative public perception                                       0.06      -           -        -            -          -                -
Federal Trade regulations with foreign manufactures              0.08      4         0.32       3          0.32         2              0.16
International currency changes could decrease profits            0.07      2         0.14       4          0.32         3              0.21
Production of counterfeit goods, and generic products            0.06      3         0.18       2          0.12         1              0.06
                        total should be 1.0                       1
Internal                                                                 1 to 4               1 to 4                  1 to 4
Recognized brand name – Swoosh is ubiquitous                     0.1       4         0.4        3          0.3          2              0.2
Strong in research and development/innovation                    0.09      4         0.36       2          0.18         3              0.27
Strong marketing campaign/sponsors top athletes                  0.08      2         0.16       1          0.08         3              0.24
Diverse portfolio                                                0.09      1         0.09       3          0.27         2              0.18
Successful advertising campaigns                                 0.07      1         0.07       2          0.14         3              0.21
Customer loyalty                                                 0.07      3         0.21       2          0.14         1              0.07
Strong financial position                                        0.08      2         0.16       3          0.24         4              0.32
Strong international presence                                    0.08      4         0.32       3          0.24         1              0.08
Products are highly priced                                       0.06      1         0.06       2          0.12         3              0.18
Revenues still mostly dependent upon footwear sales              0.05      3         0.15       2          0.1          1              0.05
Violations for wages and child labor in manuf. countries         0.06      -           -        -            -          -                -
Little control over quality of prod. from 3rd party contract.    0.06      2         0.12       3          0.18         1              0.06
Anti-globalization groups                                        0.05      -           -        -            -          -                -
Price sensitivity of products                                    0.06      3         0.18       2          0.12         1              0.06
                         total should be 1.0                      1                                                                      0
                                                                                     4.95                    4
                                                                                                                                       31
                                                                                                                                       3.75
32
• To continue being the world leader in sports equipment
  and apparel.
• To complete brand reorganization within market
  regions that will lower cost of sales.
• To create sportswear that would incorporate recycled
  material.
• To develop new alliances with companies who are well
  respected regarding social responsibility.
• To invest in additional marketing of existing products
  that will appeal to new demographic groups.
• To promote products as fashion wear, not just
  sportswear.


                                                       33
34
                                                 Year Ended May 31       Projected
                                                    2009                   2010
(In millions, except per share data)

                                                                                     Forecasted 1.5%
Revenues                                         $ 19,176.10         $ 19,463.74     revenue increase.

Cost of sales                                    $ 10,571.70         $ 10,730.28     1.5% increase.
Gross margin                                     $   8,604.40        $ 8,733.47
                                                                                     3.3% increase
                                                                                     from previous
Selling and administrative expense               $   6,149.60        $ 6,351.95      year.
Restructuring charges (Note 16)                  $    195.00         $          -
Goodwill impairment (Note 4)                     $    199.30         $      50.00
Intangible and other asset impairment (Note 4)   $    202.00         $          -

Interest income, net (Notes 1, 7 and 8)          $      (9.50)       $      (9.50)

Other (income) expense, net (Notes 17 and 18)    $    (88.50)        $     (88.50)
Income before income taxes                       $   1,956.50        $ 2,429.52

                                                                                     Based on 24%
Income taxes (Note 9)                            $    469.80         $     583.08    from 2009
Net income                                       $   1,486.70        $ 1,846.43
Basic earnings per common share (Note 12)        $       3.07        $       3.20
Diluted earnings per common share (Note 12)      $       3.03        $       3.16
Dividends declared per common share              $       0.98        $       1.00
                                                                                                      35
                                                                    Year Ended May 31,       Projected
                                                                             2009              2010

                                      ASSETS

Current assets:
      Cash and equivalents                                          $ 2,291.10           $ 2,163.80      Minus $161.67 in investment.
      Short-term investments                                        $ 1,164.00           $ 1,164.00
      Accounts receivable, net (Note 1)                             $ 2,883.90           $ 2,976.18      3.2% previous

      Inventories (Notes 1 and 2)                                   $ 2,357.00           $ 2,628.00      Influenced by the cricket line
      Deferred income taxes (Note 9)                                $   272.40           $    272.40
      Prepaid expenses and other current assets                     $   765.60           $    900.00
           Total current assets                                     $ 9,734.00           $ 10,104.38

Property, plant and equipment, net (Note 3)                         $ 1,957.70           $ 1,972.70      Plus $15 million for three new stores.
Identifiable intangible assets, net (Note 4)                        $    467.40          $    467.40
Goodwill (Note 4)                                                   $    193.50          $     95.00
Deferred income taxes and other assets (Notes 9 and 18)             $    897.00          $    977.56
           Total assets                                             $ 13,249.60          $ 13,617.04
                        LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
        Current portion of long-term debt (Note 8)                  $    32.00           $     6.90
        Notes payable (Note 7)                                      $   342.90           $   375.00
        Accounts payable (Note 7)                                   $ 1,031.90           $ 1,051.50
        Accrued liabilities (Notes 5 and 18)                        $ 1,783.90           $ 1,783.90
        Income taxes payable (Note 9)                               $    86.30           $    90.00
              Total current liabilities                             $ 3,277.00           $ 3,307.30
Long-term debt (Note 8)                                             $     437.20         $     405.20    Less portion of $32.0
Deferred income taxes and other liabilities (Note 9)                $     842.00         $     872.71
Commitments and contingencies (Notes 15 and 18)                     $          -
Redeemable Preferred Stock (Note 10)                                $       0.30         $       0.30
Shareholders’ equity:
      Common stock at stated value (Note 11):
           Class A convertible — 95.3 and 96.8 shares outstanding   $        0.10        $        0.10
           Class B— 390.2 and 394.3 shares outstanding              $        2.70        $        2.70
      Capital in excess of stated value                             $    2,871.40        $    2,995.40
      Accumulated other comprehensive income (Note 14)              $      367.50        $      367.50
      Retained earnings                                             $    5,451.40        $    5,665.83
            Total shareholders’ equity                              $    8,693.10        $    9,031.53
                                                                                                                                                  36
            Total liabilities and shareholders’ equity              $   13,249.60        $   13,617.04
                                2009     Projected 2010
        Liquidity Ratios
Current                         2.97         3.06
Quick                           2.25         2.26
Leverage Ratios
Debt to total assets            0.06         0.06
Debt to equity                  0.09         0.09
Long-term debt to equity        0.05         0.04

Times-interest-earned ratio     48.55        65.66
        Activity Ratios
Fixed Assets Turnover            9.8         9.87
Total Assets Turnover           1.45         1.43
Inventory Turnover              8.14         7.41
        Profitability Ratios
Gross profit margin             0.45         0.45
Operating profit margin          0.1         0.12
Net profit margin               0.08         0.09
Return on assets                0.11         0.14
Return on equity                0.17         0.20
Price-earnings ratio            18.83        17.83
EPS                             3.03         3.20

        Growth Ratios          3 Years       1 Year
Sales Growth%                  0.28226        1.50
Net Income Growth%             0.06803       24.20

Earnings per share Growth%     -0.4261       4.23

Dividends per share Growth%    -0.1695       2.04
                                                          37
38
       Area of Objectives                         Measure                        Time Expectation       Primary Responsibility
Customers
1. Customer satisfaction        Customer and online surveys                           Quarterly          Managers/ Marketing
2. Customer Loyalty             Product and purchasing reviews.                       Quarterly               Marketing
                                Memberships and number of returning and
                                new customers.
3. Accessibility                Open more stores in various countries.           Biannually- Annually         Marketing
Managers/Employees
1. Improve working conditions   Increase in productivity, employee surveys.           Quarterly                CEO
2. Improve employee training    Increase in productivity and overall operating        Quarterly           Human Resources
                                efficiency
Community/Social Responsibility
1. Business Ethics              Endorse positive role model athlete`s.                Annually                  CEO
                                Increase promotion of sports and wellness.
2. Environmentally Friendly     Recycle materials, improve reputation and            Biannually                 CEO
                                customer perspective.
3. Community involvement        Run local sports camps, community/ city              Biannually           Regional Managers
                                events- increase customer awareness.
Operations/ Processes
1. Improve Brand Image          Increase in sales and customer                        Quarterly                 CEO
                                recommendations.
2. Product Innovation           Number of new stores, products and                    Quarterly            CEO/ Marketing
                                marketing
3. Market Penetration           Number of stores and sales in new/ other              Annually                Marketing
                                countries
Financial
1. Reduce Cost of production    Decrease in production expenses.                      Annually                  CFO
2. Increase Revenue             Increase in annual sales                              Annually                  CFO
                                                                                                                          39
• http://www.youtube.com/watch?v=4Uugz5Y7
  u6M




                                        40
•   http://investors.nikeinc.com/Investors/Financial-Reports-and-Filings/Annual-Reports/default.aspx
•   http://investors.nikeinc.com/Theme/Nike/files/doc_financials/AnnualReports/2009/docs/Nike_2009
    _10-K.pdf
•   http://investors.nikeinc.com/Theme/Nike/files/doc_financials/AnnualReports/2006/docs/10k.pdf
•   http://investing.businessweek.com/research/stocks/financials/financials.asp?ticker=NKE:US&data
    set=incomeStatement&period=A&currency=native
•   http://finance.yahoo.com/q/is?s=NKE+Income+Statement&annual
•   http://www.nike.com/nikeos/p/nike/en_US/?&ref
•   Datamonitor.com – UMFK library sites
•   http://en.wikipedia.org/wiki/List_of_most_populous_cities_in_India
•   www.yahoofinance.com
•   https://materials.proxyvote.com/Approved/654106/20090724/AR_44240/HTML2/default.htm
•   http://en.wikipedia.org/wiki/Nike_timeline
•   http://nikeinc.com/pages/history-heritage
•   http://investing.money.msn.com/investments/financial-statements?symbol=NKE
•   http://www.nike.com/nikeos/p/nike/en_IN/store_locator
•   Strategic Management Concepts and Cases 13th Edition. Fred R. David.



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