Nike, Inc. Strategic Analysis 2009
Jarryd Phillips, Jermaine West, Spencer Jacoby, Othniel
Hyliger, Steven Pelletier
HISTORY
MAJOR MILESTONES
CURRENT VISION & MISSION
STATEMENTS
PROPOSED VISION & MISSION
STATEMENTS
EXTERNAL ASSESSMENT
POSITIONING MAP
CPM MATRIX
OPPORTUNITIES & THREATS
EFE MATRIX
INTERNAL ASSESSMENT
ORGANIZATIONAL CHART
2009 INCOME STATEMENT
2009 BALANCE SHEET
CURRENT FINANCIAL RATIOS
FINANCIAL TRENDS
STRENGTH & WEAKNESSES
IFE MATRIX
STRATEGIC ASSESSMENT
SWOT MATRIX
SPACE MATRIX
GRAND STRATEGY MATRIX
BCG MATRIX
IE MATRIX
MATRIX ANALYSIS
QSPM
RECOMMENDATIONS
OBJECTIVES
STRATEGIC IMPLEMENTATION
PROJECTED INCOME STATEMENT
PROJECTED BALANCE SHEET
PROJECTED 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
Critical Success factors
Advertising
Product Quality
Price Competitiveness
Management
Financial Position
Customer Loyalty
Global Expansion
Market Share
Brand
Endorsement Deals
Portfolio Diversification
Product Placement
Research & Development
Totals
Weights Rating
0.0 to 1.0
1 to 4
0.10
0.08
0.08
0.06
0.08
0.05
0.05
0.08
0.09
0.10
0.08
0.09
0.06
1.00
3
4
2
3
4
3
3
4
4
4
3
3
3
Weighted
Score
ADIDAS
Rating
Weighted
Score
1 to 4
0.30
0.32
0.16
0.18
0.32
0.15
0.15
0.32
0.36
0.40
0.24
0.27
0.18
3.35
4
3
3
4
3
2
4
2
3
3
4
2
4
PUMA
Rating
Weighted
Score
1 to 4
0.40
0.24
0.24
0.24
0.24
0.10
0.20
0.16
0.27
0.30
0.32
0.18
0.24
3.13
3
2
1
2
1
1
2
1
1
3
2
1
1
0.20
0.16
0.08
0.12
0.08
0.05
0.10
0.08
0.09
0.30
0.16
0.09
0.06
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.
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
External Threats
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.
Totals
0.05
0.06
0.08
0.12
3
2
3
4
0.15
0.12
0.24
0.48
0.07
2
0.14
0.06
0.07
1
2
0.06
0.14
0.14
4
0.56
0.09
0.06
4
2
0.36
0.12
0.09
0.06
3
2
0.27
0.12
0.05
2
0.27
1.00
3.03
14
15
Philip H. Knight
Chairman of
the Board
Mark G. Parker
CEO and President
Gary M. Destefano
Donald W. Blair
President of Global
Vice President and
Operationsitle
CFO
Hans van Alebeek
Vice President,
Global operations &
Technology
David J. Ayre
Ronald D. McCray
Vice President
Vice President
Global Human
Chief Administrative
Resoursces
officer
Bernard F. Pliska
Vice President
Corporate Controller
Trevor Edwards Vice
John Slusher
President Global
Vice President
Brand & Category
Global
Management
Sports Marketing
Charles D. Denson
Lewis L. Bird III
President Nike
Brand
President
Affiliates
Eric D. Sprunk Vice
President Global
Footwear
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
(In millions)
2008
ASSETS
Current assets:
Cash and equivalents
Short-term investments
Accounts receivable, net (Note 1)
Inventories (Notes 1 and 2)
Deferred income taxes (Note 9)
Prepaid expenses and other current assets
Total current assets
Property, plant and equipment, net (Note 3)
Identifiable intangible assets, net (Note 4)
Goodwill (Note 4)
Deferred income taxes and other assets (Notes 9 and 18)
Total assets
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term debt (Note 8)
Notes payable (Note 7)
Accounts payable (Note 7)
Accrued liabilities (Notes 5 and 18)
Income taxes payable (Note 9)
Total current liabilities
Long-term debt (Note 8)
Deferred income taxes and other liabilities (Note 9)
Commitments and contingencies (Notes 15 and 18)
Redeemable Preferred Stock (Note 10)
Shareholders’ equity:
Common stock at stated value (Note 11):
Class A convertible — 95.3 and 96.8 shares outstanding
Class B— 390.2 and 394.3 shares outstanding
Capital in excess of stated value
Accumulated other comprehensive income (Note 14)
Retained earnings
Total shareholders’ equity
$ 2,291.10
$ 1,164.00
$ 2,883.90
$ 2,357.00
$
272.40
$
765.60
$ 9,734.00
$ 1,957.70
$
467.40
$
193.50
$
897.00
$ 13,249.60
$ 2,133.90
$
642.20
$ 2,795.30
$ 2,438.40
$
227.20
$
602.30
$ 8,839.30
$ 1,891.10
$
743.10
$
448.80
$
520.40
$ 12,442.70
$
$
$
$
$
$
$
$
$
$
32.00
342.90
1,031.90
1,783.90
86.30
3,277.00
437.20
842.00
0.3
$
$
$
$
$
$
$
$
$
$
6.30
177.70
1,287.60
1,761.90
88.00
3,321.50
441.10
854.50
0.3
$
$
$
$
$
0.1
2.7
2,871.40
367.50
5,451.40
8693.1
$
$
$
$
$
0.1
2.7
2,497.80
251.40
18
5,073.30
7825.3
Liquidity Ratios
Current
Quick
Leverage Ratios
Debt to total assets
Debt to equity
Long-term debt to equity
Times-interest-earned ratio
Activity Ratios
Fixed Assets Turnover
Total Assets Turnover
Inventory Turnover
Profitability Ratios
2.97
2.25
0.06
0.09
0.05
61.06
9.8
1.45
8.14
Gross profit margin
Operating profit margin
Net profit margin
Return on assets
Return on equity
0.45
0.13
0.08
0.11
0.17
Price-earnings ratio
EPS
18.83
3.03
Growth Ratios
Sales Growth%
Net Income Growth%
Earnings per share Growth%
3 Years
0.28226
0.06803
-0.4261
Dividends per share Growth%
-0.1695
19
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
Strong in research and development – innovative
product development
Strong marketing campaign - sponsors top athletes.
Marketing practices enables them to expand the
athletic market
A very professionally competitive company
Diverse portfolio
Successful advertising campaigns
Customer loyalty
Strong financial position
Strong international presence
Internal Weaknesses
Products are highly priced
Revenues are still mostly dependent upon footwear
sales
History for violations of minimum wages, child labor
and over times in its manufacturing countries.
Little control over quality of products from 3rd party
contractors
Anti-globalization groups
Price sensitivity of products
Totals
0.10
4
0.40
0.07
3
0.21
0.09
4
0.36
0.08
0.08
0.09
0.06
0.09
0.10
3
3
4
3
4
4
0.24
0.24
0.36
0.18
0.36
0.4
0.06
2
0.12
0.05
2
0.10
0.06
2
0.12
0.05
0.04
0.06
1.00
1
2
2
0.05
0.08
0.12
3.10
23
24
SO Strategy
- S1, O2, O3: The swoosh is so well known that
recycled materials and fashionable lines of clothing
would definitely create a whole new dimension for Nike.
- S3, O3, O4: With some of the most recognizable and
followed athletes globally, expanding into places like
India and forming alliances with different kinds of sports
leagues will be a viable strategy to expand.
- S5, O6, O7: Use the company`s successful
competitiveness and alliances to reorganizing the brand
name and appeal to new/ different demographic groups.
WO Strategy
- W1, W2, O1, O2:Creating sportswear and even
fashionable wear from recycled materials, would
be an opportunity to sell products at a lower cost.
- W4, O4: Use 3rd party contractors to
manufacture cheap/ lower cost products in order
to appeal to the group of consumers who end up
buying generic products, because official
merchandise is too expensive.
ST Strategy
- S3, S9, T1, T2: Nike is well known for some of
the athletes that it endorses, as well as its
international presence, which will help maintain
and attract customers even if there are high prices
and challenging economic times, as long as it
remains at the forefront of market trends.
- S6, S7, T3: The quality of material throughout
Nike`s diversified portfolio, may be able to help
combat counterfeit goods and generic products.
Especially now that many consumers associate
cost with quality.
WT Strategy
- W3, W5, T4, T5: Due to Nike`s history of low
labor wages to the thousands of factory workers,
a recession may spell the end of many jobs and
the production of many more important products.
Improving the working conditions and pay of its
factory workers is an ideal strategy to prevent
such circumstances.
25
Financial Strength
rating is 1 (worst) to 6 (best)
1 Liquidity
2 Leverage
3 Working capital
4 Return on assets
5 Return on equity
6 Price per earnings
7 Earnings per share
Industry Strength
rating is 1 (worst) to 6 (best)
1 Profit potential
2 Extent Leveraged
3 Economies of scale
4 Growth potential
5 Financial stability
6 Resource utilization
7 Diverse Portfolio
Environmental Stability rating is -1 (best) to -6 (worst)
1 Price range of competing products
2 Competitive pressure
3 Ease of exit from market
4 Successful and recognized advertising
5 Endorsement agreements
6 Price elasticity of demand
7 Risk involved in business
Competitive advantage rating is -1 (best) to -6 (worst)
1 Market share
2 Global presence
3 Strong investor reputation
4 Technological innovation
5 Product life cycle
6 Customer loyalty
7 Control over suppliers and distributors
FS Total
IS Total
ES Total
CS total
Ratings
6.0
6.0
6.0
4.0
4.0
6.0
5.0
37.0
6.0
5.0
5.0
5.0
6.0
5.0
5.0
37.0
-2.0
-2.0
-1.0
-1.0
-1.0
-1.0
-1.0
-9.0
-1.0
-1.0
-1.0
-1.0
-2.0
-1.0
-3.0
-10.0
ES average
CA average
IS average
FS average
X Coordinate
Y Coordinate
Strategy ->>>>
-1.29
-1.43
5.29
5.29
3.86
4.00
Aggressive
26
Rapid Market Growth
Quadrant II
Quadrant I
Weak
Competitive
Market
Strong
Competitive
Market
Quadrant III
o
o
o
o
o
o
o
Market Development
Market Penetration
Product Development
Forward Integration
Backward Integration
Horizontal Integration
Related Diversification
Quadrant IV
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
+15
Stars
+5
(3) 17%
I
Question Marks
(4) 11%
(1) 35%
IGR
0
(2) 37%
-5
-15
Cash Cow
Dogs
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%
Total
16,661.8
100%
2,372.5
100%
28
High 3-4
E
F
E
Medium 2-2.99
Low 1-1.99
Strong 3-4
Average 2-2.99
Weak 1-1.99
IFE
29
Alternative Strategies
Forward Integration
Backward Integration
Horizontal Integration
Market Penetration
Market Development
Product Development
Related Diversification
Unrelated Diversification
Horizontal Diversification
Joint Venture
Retrenchment
Divestiture
Liquidation
IE
x
x
x
x
x
x
SPACE
x
x
x
x
x
x
x
x
GRAND
x
x
x
x
x
x
x
BCG
x
x
x
x
x
x
Count
4
4
4
4
4
4
2
1
x
x
x
1
1
1
30
Market Expansion
Key factors
External
Create products from recycled materials
Promotion as a fashionable wear, not just sportswear.
Growing segment of the female athletes
International expansion into emerging markets - India
Add. marketing of existing prod - appeal to new groups
New alliances with co. respected for social responsibility
Brand reorganization by market regions
High competitive industry
Failure to respond to market trends in timely manner
Negative public perception
Federal Trade regulations with foreign manufactures
International currency changes could decrease profits
Production of counterfeit goods, and generic products
total should be 1.0
Internal
Recognized brand name – Swoosh is ubiquitous
Strong in research and development/innovation
Strong marketing campaign/sponsors top athletes
Diverse portfolio
Successful advertising campaigns
Customer loyalty
Strong financial position
Strong international presence
Products are highly priced
Revenues still mostly dependent upon footwear sales
Violations for wages and child labor in manuf. countries
Little control over quality of prod. from 3rd party contract.
Anti-globalization groups
Price sensitivity of products
total should be 1.0
Weight
AS
TAS
1 to 4
0.1
0.07
0.08
0.12
0.1
0.06
0.06
0.08
0.06
0.06
0.08
0.07
0.06
3
3
4
3
3
4
4
4
2
3
Prod/Recycle/Materials
AS
TAS
1 to 4
0.3
0.21
0.48
0.3
0.18
0.24
0.32
0.32
0.14
0.18
2
1
2
2
2
1
3
3
4
2
Add. Sports Accessories
AS
TAS
1 to 4
0.2
0.07
0.24
0.2
0.12
0.06
0.24
0.32
0.32
0.12
4
2
1
4
1
2
2
2
3
1
0.4
0.14
0.12
0.4
0.06
0.12
0.16
0.16
0.21
0.06
1
1 to 4
0.1
0.09
0.08
0.09
0.07
0.07
0.08
0.08
0.06
0.05
0.06
0.06
0.05
0.06
4
4
2
1
1
3
2
4
1
3
2
3
1 to 4
0.4
0.36
0.16
0.09
0.07
0.21
0.16
0.32
0.06
0.15
0.12
0.18
3
2
1
3
2
2
3
3
2
2
3
2
1 to 4
0.3
0.18
0.08
0.27
0.14
0.14
0.24
0.24
0.12
0.1
0.18
0.12
1
2
3
3
2
3
1
4
1
3
1
1
1
0.2
0.27
0.24
0.18
0.21
0.07
0.32
0.08
0.18
0.05
0.06
0.06
0
4.95
4
31
3.75
Open a new Nike
Super store in
each of India’s
largest cities:
Mumbai, Delhi,
and Bangalore at
$5 million per
store.
Sign an endorsement
bat sponsorship deal
with Sachin Tendulkar,
India’s biggest cricket
star to a multi-year
contract. The terms
include apparel,
footwear, and his own
name brand. The deal
is worth $30 million
over 3 years.
Invest $500 million in India that
will increase revenue by 4.5%
through product development,
market development, and
market penetration in the next
3 years.
Invest $235 million in
R&D and
manufacturing
contracts over the
next 3 years.
Invest $220 million
on marketing and
advertisement over
the next 3 years.
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
2009
Projected
2010
(In millions, except per share data)
Revenues
$ 19,176.10
$ 19,463.74
Forecasted 1.5%
revenue increase.
Cost of sales
$ 10,571.70
$ 10,730.28
1.5% increase.
Gross margin
$
$ 8,733.47
8,604.40
Selling and administrative expense
$
6,149.60
$ 6,351.95
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)
$
(9.50)
Other (income) expense, net (Notes 17 and 18)
$
(88.50)
$
(88.50)
Income before income taxes
$
1,956.50
3.3% increase
from previous
year.
50.00
-
$ 2,429.52
Income taxes (Note 9)
$
469.80
$
583.08
Net income
$
1,486.70
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
Based on 24%
from 2009
$ 1,846.43
35
Year Ended May 31,
2009
Projected
2010
ASSETS
Current assets:
Cash and equivalents
Short-term investments
Accounts receivable, net (Note 1)
$ 2,291.10
$ 1,164.00
$ 2,883.90
$ 2,163.80
$ 1,164.00
$ 2,976.18
Minus $161.67 in investment.
Inventories (Notes 1 and 2)
Deferred income taxes (Note 9)
Prepaid expenses and other current assets
Total current assets
$ 2,357.00
$
272.40
$
765.60
$ 9,734.00
$ 2,628.00
$
272.40
$
900.00
$ 10,104.38
Influenced by the cricket line
Property, plant and equipment, net (Note 3)
Identifiable intangible assets, net (Note 4)
Goodwill (Note 4)
Deferred income taxes and other assets (Notes 9 and 18)
Total assets
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term debt (Note 8)
Notes payable (Note 7)
Accounts payable (Note 7)
Accrued liabilities (Notes 5 and 18)
Income taxes payable (Note 9)
Total current liabilities
$ 1,957.70
$
467.40
$
193.50
$
897.00
$ 13,249.60
$ 1,972.70
$
467.40
$
95.00
$
977.56
$ 13,617.04
Plus $15 million for three new stores.
$
32.00
$
342.90
$ 1,031.90
$ 1,783.90
$
86.30
$ 3,277.00
$
6.90
$
375.00
$ 1,051.50
$ 1,783.90
$
90.00
$ 3,307.30
Long-term debt (Note 8)
Deferred income taxes and other liabilities (Note 9)
Commitments and contingencies (Notes 15 and 18)
Redeemable Preferred Stock (Note 10)
Shareholders’ equity:
Common stock at stated value (Note 11):
Class A convertible — 95.3 and 96.8 shares outstanding
Class B— 390.2 and 394.3 shares outstanding
Capital in excess of stated value
Accumulated other comprehensive income (Note 14)
Retained earnings
Total shareholders’ equity
Total liabilities and shareholders’ equity
$
$
$
$
437.20
842.00
0.30
$
$
405.20
872.71
$
0.30
$
$
$
$
$
$
$
0.10
2.70
2,871.40
367.50
5,451.40
8,693.10
13,249.60
$
$
$
$
$
$
$
0.10
2.70
2,995.40
367.50
5,665.83
9,031.53
13,617.04
3.2% previous
Less portion of $32.0
36
2009
Projected 2010
2.97
2.25
3.06
2.26
0.06
0.09
0.05
0.06
0.09
0.04
48.55
65.66
9.8
1.45
8.14
9.87
1.43
7.41
0.45
0.1
0.08
0.11
0.17
18.83
3.03
0.45
0.12
0.09
0.14
0.20
17.83
3.20
Growth Ratios
Sales Growth%
Net Income Growth%
3 Years
0.28226
0.06803
1 Year
1.50
24.20
Earnings per share Growth%
-0.4261
4.23
Dividends per share Growth%
-0.1695
2.04
Liquidity Ratios
Current
Quick
Leverage Ratios
Debt to total assets
Debt to equity
Long-term debt to equity
Times-interest-earned ratio
Activity Ratios
Fixed Assets Turnover
Total Assets Turnover
Inventory Turnover
Profitability Ratios
Gross profit margin
Operating profit margin
Net profit margin
Return on assets
Return on equity
Price-earnings ratio
EPS
37
38
Area of Objectives
Customers
1. Customer satisfaction
2. Customer Loyalty
3. Accessibility
Managers/Employees
1. Improve working conditions
2. Improve employee training
Measure
Time Expectation
Primary Responsibility
Customer and online surveys
Quarterly
Managers/ Marketing
Product and purchasing reviews.
Memberships and number of returning and
new customers.
Open more stores in various countries.
Quarterly
Marketing
Biannually- Annually
Marketing
Quarterly
Quarterly
CEO
Human Resources
Annually
CEO
Biannually
CEO
Biannually
Regional Managers
Quarterly
CEO
Quarterly
CEO/ Marketing
Annually
Marketing
Annually
CFO
Annually
CFO
Increase in productivity, employee surveys.
Increase in productivity and overall operating
efficiency
Community/Social Responsibility
1. Business Ethics
Endorse positive role model athlete`s.
Increase promotion of sports and wellness.
2. Environmentally Friendly
Recycle materials, improve reputation and
customer perspective.
3. Community involvement
Run local sports camps, community/ city
events- increase customer awareness.
Operations/ Processes
Increase in sales and customer
1. Improve Brand Image
recommendations.
2. Product Innovation
Number of new stores, products and
marketing
3. Market Penetration
Number of stores and sales in new/ other
countries
Financial
1. Reduce Cost of production
Decrease in production expenses.
2. Increase Revenue
Increase in annual sales
39
• http://www.youtube.com/watch?v=4Uugz5Y7
u6M
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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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