Saturday, November 16, 2019
Nike Cost of Capital Essay Example for Free
Nike Cost of Capital Essay Kimi Ford a portfolio manager at NorthPoint Group which is a mutual-fund management firm, is considering to buy some shares from Nike, inc even if it’s share price had declined from the beginning of the year, for the Northpoint Large-cap fund she managed which invested mostly in Fortune 500 companies and it was doing well despite the decline in the stock market over the last 18 months. Kimi therefore surveyed the results of Nike’s fiscal-year 2001which had been revealed a week earlier. Issues that caused a decline in market sales as revealed by the management of Nike 1. Revenues since 1997 had stopped growing but remained around $9. 0 billion. 2. The net income had fallen from $800m to $580m a decline of $220 million. 3. Nike’s market share in the U. S. athletic shoe industry had fallen from 48 percent in 1997 to 42 percent in 2000 (6% decline) 4. The issue of Supply-chain and strong dollar exchange rate also affected the revenue negatively. Nike’s Strategic plan to address the above issues 1. Increase revenues by developing more athletic-shoe products in the mid-priced range. 2. Push its apparel line which had performed tremendously well. 3. Exert more expense control on the cost side. 4. Nike’s executives expressed their interest to continue with the long-term revenue growth target of 8 to 10 percent and earnings-growth targets of above 15 percent. Although the management presented its plan to improve on its performance, there were mixed reactions from the third party analysts. Kimi Ford was also not satisfied with the Nike’s analysis therefore she decided that it was necessary to develop her own discounted-cash-flow forecast. She found that Nike was overvalued at the discounted rate of 12% at its current share price of $42. 09. She also did a quick sensitivity analysis which revealed that Nike was undervalued at discounted rates below 11. 17%. In order for Kimi to make a proper investment decision for her Fund, she asked Joanna Cohen to calculate the cost of capital. However there were some problems. Cohen’s calculation of cost of capital. She used single cost of capital for the apparel and footwear lines assuming that they are sold through the same marketing and distribution channels and are often marketed in other collections of similar designs. WACC (Weighted Average Cost of Capital) WACC is calculated using weighted averages of debt (Kd) and equity (We) Cohen used Capital Asset Pricing Model (CAPM) to calculate WACC 0f 8. 4 % however, she used the book values yet weights should be based on the market value. Her result of $3,494. 5 for the Equity was wrong. The formula for calculating the Market value of equity is E = stock Price x Number of shares outstanding .
Thursday, November 14, 2019
samsung in china :: essays research papers
Environmental Analysis External Environment Chinese Market -     still socialist economy „ »Ã‚     huge gap between the stated plans and the actual ability of government to manage and control the economy „ »Ã‚     tremendous amount of economic interaction took place outside the government ¡Ã‚ ¦s formal economic plan -     many smugglings and piracies -     regional blockades -     over-employment problem Chinese color TV Market -     full production capacity in demand „ »Ã‚     principal battleground -     high competition „ »Ã‚     Japanese firms: high-end market. Increasing production bases „ »Ã‚     Domestic Firms: low-end market. But they were less competitive in large screen TV. -     small color TV market was shrinking „ »Ã‚     large market size of these product lines facilitated the fast achievement of cost reduction(economy of the scale, learning effect) Consumer analysis -     only 41% of households had color TV „ »Ã‚     80% of urban, 28% of rural „ »Ã‚     Low-end market is not a viable long-term. But overall market was still expanding. -     Buying power: expanding both high-ends and low-ends -     Tendency that first image of a product lasted long in the eyes of the consumer. „ »Ã‚     the reason for differentiation needed focusing on high-ends -     consumer preference „ »Ã‚     Urban- brand name, functionality were important factors. „ »Ã‚     Rural- reasonable quality and low price were preferred. -     High protected market: too much tariff cost „ »Ã‚     localization needed Domestic (Korean) Market -     Deteriorating of competitive advantage: rising the labor cost -     Korean government policy: supportive of big business „ »Ã‚     getting worse of Korean market „ »Ã‚     Losing the M/S in the U.S. and no longer competitive in the low-end product „ »Ã‚     need to change the strategy focusing on high-end, high-tech -     Liberalization of Korean market „ »Ã‚     Foreign firms were permitted to sell their product directly „ »Ã‚     More competitive in Domestic market, losing the domestic M/S „ »Ã‚     Samsung had to expand the foreign market. Internal Environment Experience in the U.S. -     Set up the subsidiary there in 1979 -     Focusing on the low-end market segment based on competitive labor cost in Korea because of large demand and low competition base, and low barrier in the U.S. -     Samsung produced a few of the most popular sizes TV for cost reduction through economies of scale and the experience curve. -     Dual brand policy: adopting  ¡Ã‚ §buyer brand name(large retailers or OEM) ¡Ã‚ ¨ mostly but trying to build its own brand image -     Establishing a production subsidiary in the U.S. because of trade barrier -     Policy of Japanese firms: targeting high-ends for differentiation through brand name recognition „ »Ã‚     Matsushita: 4% of M/S in 1995 but could be high-price, higher profit -     Policy of Samsung: still pricing strategy even though it had good quality of product „ »Ã‚     3% of M/S, but much less profit than Matsushita and facing intense competition -     Importance of TV industry to Samsung: second proportion of Samsung electronics „ »Ã‚     It was getting worse in situation of Samsung electronics, so needed some way to solve these problems Market participation in China -     later market entering than Japanese firms -     The establishment of SCH would enhance its image in China and speed up the accumulation of local knowledge of the market.
Monday, November 11, 2019
Advances in Public Health Care in the Last Century
Mammograms are now being performed at 35, 40, and then every year after a woman reaches the age of 50. All of these precautions have led to the drop in death rates of these cancers, that were once deadly killers. Another Important advancement in public health in the last century was motor vehicle safety. The CDC states that motor vehicle accidents are among the 10 leading causes of death among citizens of all ages and the leading cause of death among people ages 5-34. In terms of death of people under the age of 65 motor vehicle accidents came second only to heart disease and cancer.The CDC also states that although the rate of travel went up 8. 5% across the nation, the death rate decreased from 14. 9 per 100,000 population to 1 1. 0 per 100,000. The Injury rate declined from 1,130-722. Motor vehicle accidents are Incredibly easy to prevent. As technology progressed cars became safer as well as the roads on which the cars were driven due to new laws being passed. For example as tech nology progressed It created more hazards. New laws are being created to prevent the Increase In accidents from hand held phone use, and testing and driving.Also new laws have state that stables must be worn by article on the Pump Handle from 2011 that another reason there was a decrease in death rates was because of the laws regarding teens and graduated drivers accessing, and car-seat restrictions and laws. (Brickwork, 2011). Although these decreases were incredible, as technology progresses law makers and car production companies will have to stay on top of safety concerns and hazardous conditions. One of the biggest advances made for families in the public health department was the prevention of childhood lead poisoning.Almost every home built before 1978 was constructed using lead paint. Lead paint affects mostly children under the age of 7, because their bodies and brains are still developing and sensitive to even the mallets amounts of lead. Lead can cause a multitude of inju ries in young children; including. These include learning disabilities, brain damage (sometimes subtle) loss of intellect, academic failure, neurophysiology deficits, ADD (Attention Deficit Disorder), hyperactive behavior, antisocial (criminal) behavior, neurological problems, encephalopathy (brain swelling), major organ failure, coma, and even death.All these problems occur through an accumulation of lead, from the paint being ingested by infants, toddlers and children. This problem mainly occurs in low income families vying in poorly maintained housing and in poverty. This occurs because the paint in the homes was not updated since the ass's when lead based paint was legal. In the early ass's only 5 states had laws regarding lead poisoning prevention. By 2010, 23 of the 50 states had laws about the paint, as well as federal laws protecting against lead paint poisoning.Most of the laws including the ones in Maryland, state that before a home, apartment building or residence can be sold or rented to a family or individual, it must be inspected for lead paint. If lead paint is present in the accidence, it must be sanded off, and then repainted with a safe and nontoxic paint. Although most people don't consider occupational safety as a â€Å"health concern†the CDC had occupational safety improvements one of their top 10 advances in public health for the last century. For example, out of the 1. Million injuries in health care workers in back problems. This is caused from the lifting of patients in nursing homes, hospitals, and residential care. The CDC stated in its article â€Å"Following widespread dissemination and adoption of [a best practices patient-handling aerogram that includes the use of mechanical patient-lifting equipment] by the nursing home industry, Bureau of Labor Statistics data showed a 35% decline in low back injuries in residential and nursing care employees between 2003 and 2009†. CDC, 2011) Not only does this practice prevent workers from being injured but also helps prevent injuries to patients from being mishandled by health care providers. Another main achievement in the last century was the advance in vaccines and their prevention of diseases. New vaccines such as retrovirus, pneumatically conjugate, trivalent macroeconomic conjugate, herpes sister, and human voluptuaries (HP) vaccines along with the tetanus, diphtheria, and cellular pressures (for teens and young adults) have been created to help with the spread of diseases.The HP vaccine was a major advancement since HP had become one of the most widely spread Stud's in the nation. The vaccine is important because there is no way of knowing if the virus is present unless warts are present, and no way of testing for it on males or females, unless the warts themselves are visible. Also the cancerous is detected through a routine pap smear. Many teens and young adults practice unsafe sex leaving themselves susceptible to multiple Stud's along with the silent one known as HP.Most young men and women are encouraged to get the leading HP vaccine Guardrail. The pneumatically conjugate vaccine was a major advancement for those with instrumentation diseases, infants, and the elderly. As people get older, or are diagnosed with instrumentation diseases such as Lupus or diagnosed with cancer, it makes it harder for their bodies to fight off infection and harder for them to recover. Whereas infants t not have built up a strong enough immune system to fight off such strong virus, leading to hospitalizing or complications.The CDC states in their report, â€Å"Following the introduction of pneumatically conjugate vaccine, an estimated 211,000 serious pneumatically infections and 13,000 deaths were prevented during 2000-?2008†(CDC, 2011). Their report talks about advances in older vaccines, such as Hepatitis A, B and Variable, which caused these diseases to be at record low by the end of the decade. In addition age specific mortality from variable of people under the age of 20 declined by 97% from 0. 65 before the vaccine to 0. 02 during 2005-2007.These vaccines are not only important for those having risk factors of a higher mortality rate from the viruses but, also for their close family and friends who may be carrying a dormant disease and pass it on without knowing. The PAPA founded in 1872, is one of the oldest and most diverse organizations of public health in the world. Its primary goal is to protect all Americans and their communities from serious preventable health threats. PAPA strives to assure community-based health promotion, disease prevention activities and preventative health services are universally accessible in the United States.
Saturday, November 9, 2019
The Power of Social Media and Its Impact on the Current Business Environment
The number of internet users has increased over the last decade due to the development of new technologies, internet availability and improved connectivity. Various online communications platforms have been invented and are widely used for both personal and business purposes world wide and social networking is the latest communication platform helping people connect to each other across different places. Its introduction has changed the way groups of people are connecting and communicating in business via online communities and professional networks. In business, many multi-national companies are currently moving beyond traditional media channels and using social network sites as a medium to reach their targets consumers instead. There is no argument that social networking is the key player driving new media communications in the digital era and its benefits and functions are impacting business considerably. There are hundreds of social networking platforms that have been introduced to the market but currently there are only two major sites recognised as the world's most powerful platforms attracting millions of users to participate. Firstly there is Facebook, a social network service that allows users to create their own profile, status, interest and preferences and also share information with friends and contacts. According to Trimpe (2011), reported that Facebook's active user base is 519 million which equates approximately to 1 in 13 of every person on earth. In the Facebook world millions of pieces of content, links and event invitations are shared every 20 minutes indicating the enormous power of Facebook as a social media tool. Secondly there is Twitter, a social network platform that allows users to generate and share messages, or â€Å"Tweets†, up to a maximum of 140 characters. According to Chiang (2011), claimed that there are nearly 200 million Twitter's users worldwide. The most common use is to promote business information about products and services or sometimes to educate industry on a business products or services. Due to the fact that these two social networking services possess millions of people's profiles, demographics and personal interests, thousands of multinational companies have turned their focus on new social media strategy to reach their target online. The term ‘social media’ has become the most recent area focused on by marketers, advertisers and public relations professionals in various business sectors and many experts have studied and tried to understand the benefits and functions of the term social media. According to Turner (2011), the Chief Content Officer of the 60 Second marketer reported that social media is about creating and having conversations among networks in online forums, blogs, and social networking sites. The key fundamental function is to use them as a medium for contacting, sharing and promoting data and contents. But when it comes to business, the main objective of operating social media is far beyond that. In business, social media is currently claimed to be the best tool in helping a company gain larger numbers of their target consumers just by providing a digital experience related to their products and services. Social media is also playing an important role in driving consumers brand engagement. According to Schmitt (2009), studied about digital brand experience and the result indicated that consumers who have a chance to engage with a brand in social networking sites can evolve from passive reactors to support the brand almost instantaneously. Creating a brand presence in social media can create not only opportunities for a company to gain more customers but also help marketers to understand more deeply what their potential target customers think towards their products and services thanks, for example, to Facebook that first invented the â€Å"Like†application that allows users to express their interest towards other websites, links or even competitors brands and share across networks. Thanks considerably to the advantages of social media, and its large numbers of potential target consumers, it is no surprise that many global companies have selected social networking as a key medium to start launching their campaign. According to Parsons (2011), reported that recently, Kellogg’s, the cereal manufacturer, launched a new range of Krave cereal and used Facebook as a medium to communicate and offer free sample packs to around 80,000 consumers on their Facebook fan page. The brand also developed video content to engage their 16-24 year old target age group to create interaction in Facebook. Additional examples show that Dell also gained a major success generating $3 million in sales after it launched its online outlet through Twitter and Starbucks has achieved the top ranking of Facebook brand pages, with nearly 4 million friends, by just offering fans coupons for free pastries and ice cream. Additionally, Whole Foods has topped Twitter with 1. million followers by broadcasting weekly specials and shopping tips (Schmitt 2009, p. 26). Companies in the FMCG industry are not the only sector that is involved in social media. Currently Honda, the Japanese automotive manufacture, is implementing their new marketing initiative from budget-led to customer-led by moving beyond traditional advertising and using social media as a tool to understand, manage and encourage open communication and conversation among their customers (Fisher 2011). In this point, the decision to buy a durable good like a car is a lengthy process, so to ensure that their brand will be in front of mind of consumers, Honda then focuses through a combination of data analytics using, and social influence methodologies, to engage and change consumer perception and increase brand awareness at the same time. In other words the role of social media, in this case, is to help maximise the goodwill and favourable mentions of company and brands. Moreover, not only can a platform of social networking provide a benefit to communicate with customers but it also enhances the capability of internal communications amongst staff as it has benefits of real-time discussion, response and speed to spread out information or opinions internally and reduce the time spent in meetings and it is enormously useful for companies with teams/staff members who working in different locations or time zones. For instance, according to Willson (2011) reported that AT&T, a US telecommunications company, launched a new tool aimed at providing their staff the opportunity to have discussions, brainstorm and refine ideas through its own internal social media platform. Employees have opportunities to be involved by voting their opinion on the company's ideas and strategies. As a result of this implementation, and in just 6 months, there are more than 200 topics that have been discussed with great outcomes and many fresh ideas generated without wasting time in meetings. Undoubtedly, social media platforms help a company communicate to both customers and staff faster and easier, however, the easy access of shared data can be a risk to a company’s confidential products and information. Many companies to date have suffered from the secret leaking of their products before its launch to market and it is not only bloggers or online journalists who cannot keep the information secret but also staff who are caught, sometimes by mistake, sharing confidential information. As recent examples, Coggan (2011), reported that Renault has suspended three senior executives allegedly for passing on blueprints for electric cars, Facebook’s corporate privacy settings went wrong when some of the social network’s finances were published and a strategy document from AOL came to light revealing that the internet and media firm’s journalists were expected to write five to ten articles a day. As a result of this type of leak information many companies, especially in the USA, do not allow employees to use their own computers or use memory sticks for certain online services. Accordingly Robert Half Technology also found in 2009 that more than half of chief information officers in America blocked the use of networking sites such as Facebook at work to prevent leaking of information. In the digital era, today's business is borderless with mobile devices, smartphone and computers helping the world connect with the internet. Social networking is a new communications platform that enhances this borderless world providing users with an ability to contact one another and spread information. Many companies use these social networks as a key strategic media to reach their target consumers or adapt its platforms for internal communications purposes to enhance the productivity of its members. However, with its easy access and ability to disperse information rapidly, social networking is becoming a big challenge for todays businesses on how to control data leaking and to protect information assets whilst, at the same time, sharing data without affecting the company's competitiveness. Ultimately, the challenge of gaining benefit from social media is to operate it in a balanced way and in the same way a company has always managed its confidential information. A company must know what it wants to achieve from spreading information about its products and services and also what information it needs to protect . A businesses staff who are involved in the management, operation and control of these platforms should be trained to know how to add accurate data in an online social context and be able to understand what information is acceptable to share.
Thursday, November 7, 2019
Stress and Change essays
Stress and Change essays Introduction. The presence of stress in the work organization is a problem which creates operational problems and additional costs for American businesses. The organizations in which people work affect their thoughts, feelings, and actions in the workplace and away from it. Likewise, people's thoughts, feelings, and actions affect the organizations in which they work. Organizational behavior is an area of inquiry concerned with both areas of influence: the affect of work organizations on people and people on work organizations. The slice of the organizational behavior literature this paper addresses has to do with the feelings of workers, how organizations affect them and how they affect organizations. As will be seen in the following section, we focus on the affective dimensions of organizational behavior because organizational researchers have begun to demonstrate a serious interest in moods and emotions in the workplace. The problem faced by organizations and their leaders is how to help individuals adapt to changing the workplace without developing maladaptive behaviors. Change is inevitable, and in the current business environment, the rate at which change is being demanded is also increasing. Businesses can no longer adapt business policies and practices which are suitable for regional issues, because the economy is becoming global. The organization which settles into specific patterns and practices which in the past would have successfully guided them for a generation now finds that competition half way across the world is forcing change, adaptation and innovation on a constant basis. The organization which stands still is soon left behind, However, in the lives of the organization's members, constant change is a source of stress, and the constant stress can negatively affect the organizations efficiency, and effectiveness. ...
Monday, November 4, 2019
Toyota study (Strategic Management) Essay Example | Topics and Well Written Essays - 1250 words
Toyota study (Strategic Management) - Essay Example To almost anyone you turn to, strategy is a course of action, it is a plan or a way of doing things unique to a particular organisation or identical to other organisations. It is some sort of consciously intended guidelines to deal with a situation. In management, however "strategy is a unified, comprehensive, and integrated plan.designed to ensure that the basic objectives of the enterprise are achieved" (Mintzberg H. et al 2003:4). According to Johnson et al (2005), taking a business from where it is to the future or desired state involves some strategic decisions and choices. Strategic choices are concerned with decisions about future state of organisations. Strategic advantages are not always achieved by competition alone. Collaboration between potential buyers and sellers and some other dealers turn to be very beneficial and advantageous when negotiation and contracting costs reduces (JSW: 2005:261) Corporate level strategy is more concern with product diversity, market diversity, corporate parenting and managing portfolio. As our client have restriction on product diversity based upon contract conditions with the respective supplier, and the lack of portfolio of business to operate upon we will concentrate our corporate decision based on market diversity and corporate parenting roles. Questions like, Should we grow Which business unit should we grow How do we grow the business unit And what activities must be given up by our client to grow The choices include, collaboration, or international expansion, diversification or development of traditional Toyota brand. Expanding into more eco-friendly vehicles. The international strategy of Toyota Company also takes into account the value adding services it provides to its partners and dealers in different countries. By adding value to its partners Toyota increases its market potential and customer base in different geographical locations. By maintaining long-term relationship with its dealers and stakeholders the company meets one of its major objectives. The company has increasing used partners worldwide to benefit from its generic focus and cost leadership strategy. To the company, "offering inexpensive but durables cars and is essential for customer's satisfaction. By working with partners in different locations, Toyota has gained lasting competitive advantage over its competitors. Because of synergistic gains resulting from such partnership, the company as a whole is greater than the sum of its parts. This is consistent with Javidan (1998:6) finding that successful organisation demonstrate a particular set of mindset. To these organisations, collaboration and partnering is viewed as an opportunity not a threat. The company unique resources which include its patents, trademark, resources rights (Cotton), strategic
Saturday, November 2, 2019
Women's Appearance and Sexuality Represent Power Research Paper
Women's Appearance and Sexuality Represent Power - Research Paper Example Madonna, Miley Cyrus, and Lady Gaga are just some of the few cultural musical icons who embody the sexualized image of a woman with many of their music video featuring them in near stark nudeness such as, wrecking ball. This is viewed as promoting a certain image of woman which results in audiences relating their value and worth based on their sexuality and physical appearance, many of the adverts in popular media capitalize on this and women are encouraged their sexual appeal to sell products in line with the popular modern adage that sex sells. The success of women tend to be attached to their physical attractiveness as is evinced in numerous Hollywood productions, for example in Iron Man, the leading woman who is also iron man’s lover is portrayed as both highly successful as a businesswoman and also very sexually attractive. This is said to promote the perception that a woman’s success is based on their beauty and sexual attractiveness. In view of the fact that wome n already have to work hard and often harder than men to be acknowledged as successful, popular culture is criticized for making them feel they need to also be sexually attractive so as to realize their full success and therefore limits some from reaching the full potential. While this argument is plausible, and one must concede that in some cases the connection between sexuality and success is overstated, suggesting that women should be limited in the extent to which they can express their sexuality borders repressing them.
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