Case Analysis: Assessing the Goal of Sports Products, Inc.
Submitted by: Group 1
Acebedo, Gladys
Bandiola, Penuel
Bautista, Jherwienne
Cruz, Abbie
Inojales, Geraldine
Miguel, Gen
Pili, Lian
Reyes, Alyssa
Susaya, Jennylyn
Tondo, Elma
Submitted to:
Prof. Jenely P. Sabio-Almirol
December 5, 2011
a. What should the management of Sports Products Inc. pursue as its overriding goal? Why?
The management of Sports Products Inc. should pursue maximization of shareholders’ wealth as its paramount goal. As far as we know, the stockholders are the owners of the firm and the ones bearing the most risk in running it. In line with this, the board of directors and/or the management is
…show more content…
Such decisions may affect the company’s profitability today but judging from the fact that high risk means low stock price and vice-versa, high return waits in the future.
[2]
d. Does the firm appear to have an effective corporate governance structure? Explain any shortcomings.
The firm doesn’t appear to have an effective corporate governance structure.
An effective corporate governance regime includes prosecution for individuals who conduct unethical or illegal acts in the name of the enterprise [4]. Why so that there were no discussions in regards to the person/s responsible for dumping pollutants in the adjacent stream? Wasn’t the disposal unethical enough to violate the name of the enterprise? The management’s failure to recognize that such action ruins the reputation of the company is ineffective itself.
The most important shortcoming of the firm is the management or the managers who failed to amend the paramount goal of the company. Yes, it is reasonable to focus on profit maximization for the first few years of the business but keeping that as overruling per se for 20years isn’t healthy at all. The shareholders are the true owners of the business and the ones bearing the most risks, let alone being the principals who are the residual claimants. Maximizing shareholders’ wealth should always be one of the top priorities for not only their resources run the business but the means concerning the
Past Corporate Performance Indexes (2009-2010) Strategic Posture Mission – “To make all athletes better through passion, science, and the relentless pursuit of innovation” Objectives – Become “The athletic brand of this generation. And Next.” Current Strategies Decline in footwear sales by 4.5% Increase in apparel sales by 32.3% & Accessories by 28% Offensive tactics Outsourcing to lower manufacturing costs Competitive pricing. Current Polices Never too small to take on industry leaders Full retail pricing,
Prince Sports has managed to remain in their field, but the task was not easy. They have been in business for over forty years and have continued to evolve to fit the needs of the consumers while also managing to expand their products. In doing so, they have needed to keep their company ahead of trends that have occurred in the market. So far, they have managed to do so, but with the continuously changing market and economy, Prince Sports needs to constantly be performing research on how to stay ahead. They also have to take in to consideration how these changes are going to affect the products and customers they
5. Should the company seriously consider any other options besides doing a spin-off or issuing targeted stock?
d) Do your recommendations agree with the strategies that the company’s management is focusing on?
Athletics Supreme has become the top retailer in athletic equipment sales not by accident but by employing marketing operations more efficiently through successful marketing implementation and control. The company stays market and customer driven by effectively applying the appropriate metrics to achieve the objectives of its marketing plan and adjusting its strategic path when elements affecting the company’s goals, mission, and objectives begin to waver. This includes the metrics that affects the organization’s customer base that without them the company would not be successful.
S &A / Sales, Current Assets / Sales, and Current Liability / Sales have been adopted from previous income statements and balance sheets from 1995 to 2001. Perhaps, we can take new assumptions. Generally, the case issue is to examine if the share price of Nike is undervalue or overvalue and the common stock of Nike Inc should be added to the North
c. Is the manager’s concern that the board’s goals are unrealistic justified? Explain your answer.
4.Has the company considered adjusting the hierarchy or the production process of the company, instead of just examining and reducing the cost?
The purpose of this paper is to provide investors with comprehensive information on Nike, its financial health and activities, its strength and weaknesses, and whether Nike creates value to its shareholders. This paper will analyze Nike's capital structure, scope of international operations, recent stock performance, and dividend policy. Examine how Nike's
NIKE, Inc., is a company that was founded in by William Jay Bowerman and Philip H. Knight in 1964, and was originally called Blue Ribbon Sports, Inc. It’s name was changed to Nike, Inc. in 1971. It’s base of operation is located in Beaverton, Oregon. NIKE, Inc., is the world’s leading designer, marketer and distributor of authentic athletic footwear, apparel, equipment and accessories for a wide variety of sports and fitness activities worldwide. Entirely owned Nike subsidiaries include Converse Inc., a brand that develops, advertises, and sells athletic apparel and accessories; and also Hurley International LLC, which designs, markets and sells surf and youth lifestyle clothing and many different accessories. Its athletic footwear products are designed primarily for specific athletic use, although a large percentage of the products are worn for casual or leisure purposes. Nike offers products in many different categories such as men’s/women’s training, running, basketball, golf, and more. The company also sells products designed for children and youth athletic activities such as baseball, cricket, lacrosse, outdoor activities, football, tennis, volleyball, walking, and wrestling. Also, Nike sells sports apparel and accessories; and markets apparel with licensed college and professional team and league logos. Further, it sells a line of performance equipment and accessories, including sports bags, balls, eyewear, digital devices, bats, gloves, protective equipment, golf
The United Kingdom (UK) law for recruitment is a key area that makes it necessary for every organisation to follow it. It is important that every organisation, irrespective of which field it is in, follow the laws in order to make the right kind of recruitment process. Similarly, JD Sports needs to comply with the UK laws when recruiting an individual. To begin with, JD Sports should not discriminate between men and women. Under the Equality Act 2006, both the genders should be equal chance at opportunities, and this also includes the transgender people, as it will eliminate discrimination and harassment (Gatewood, Feild, & Barrick, 2010). The Race Relations Act 1976 states clearly that there should be no discrimination on the bases of colour, race, and nationality, ethnic or national origin. JD Sports must make certain that it is not creating any kind of discrimination in this aspect. Lastly, JD Sports have to take into consideration the Disability Discrimination Act (DDA) 1995 in order to make certain that they are giving fair chance of being employed to a disabled person, whether the individual
is not this kind of companies. If we want to use the data of dividends, we need to consider the growth rate and future potential changes of dividend. In a word, we don’t think DDM is fit for Nike’s case.
c. Did anything surprise you about the company's values? Why or why not? (1-3 sentences. 1.0 points)
The aim of this paper is to use the “Nike - The art of selling air.” case study and concepts from strategic marketing theory to identify marketing challenges and how those challenges could be best addressed using marketing principles. The paper will:
b. As the president and of SportsMax, how might you motivate Robert Manning to provide