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Compensation of special groups a sports sales plan essay

Products - Weakness Nike has had much success as a result of collaborating with other companies within the sports and fitness industry. However, at times we expanded into markets for which we were not strategically suited.

An example is the decrease in brands made available due to declining sales of in-line skating and roller hockey products at Bauer Nike Hockey. As a result, we have had to exit two manufacturing operations at our Bauer Nike subsidiary. We had to terminate 51 employees. Had we anticipated the decline sooner, perhaps gradual changes could have been made so that the end result may not have been as finite in nature. The desire to prevent situations such as these from continuing to occur, we have initiated a more aggressive program to review product collaborations that are outside of our core basis of products.

While the prices are realistic given the nature of the products we offer to our consumers, at times our consumers may not agree.

  • We received much bad publicity as well as experienced a decrease in sales as a result of poor labor policies and lack of policies established abroad;
  • Our profit margin of 5;
  • Newness of Facilities - Weakness Our facilities abroad have attracted bad publicity in recent years;
  • In this instance the success of one squad could potentially profit the other.

This presents a weakness. Despite the fact that in the past we may have overlooked the mid- to lower-price-point products, presenting another weakness with room for improvement, we are dedicating our time and money to better develop our competitive position at all price points to build strengths at each of these levels. We see much potential in the lower price points and plan to meet the needs of those markets. Because of such research, we have decided to revamp our apparel division, an area in which we can still greatly improve.

Nike will be organizing the internal business by gender as opposed to sport category and conducting increasing amounts of research addressing the buying habits of men, who tend to be item-driven, and women, who tend to be collection-driven, with specifically targeted product lines.

The locations are geographically dispersed which works well in our mission to be a truly global company. The production facilities are located close to raw materials and cheap labor sources. They have been strategically placed in their locations for just this purpose. In general, the facilities are located further from most customers, resulting in higher distribution costs. However, the cost savings due to the placement of our production facilities allows for cheaper production of our products despite the higher costs of transporting our products.

As Nike continues to expand in the global economy and increase its market throughout the world, these dispersed facilities will prove to be beneficial.

Newness of Facilities - Weakness Our facilities abroad have attracted bad publicity in recent years. Though our facilities comply with local labor standards, generally, they have not met U. We want to be a leader and set a responsible corporate example for other businesses to follow. Expanding our current independent monitoring programs to include non-governmental organizations, foundations and educational institutions.

We want to make summaries of their findings public; Adopting U. Occupational Safety and Health Administration OSHA indoor air quality standards for all footwear factories; Funding university research and open forums to explore issues related to global manufacturing and responsible business practices such as independent monitoring and air quality standards.

While establishing these policies is a step in the right direction for Nike, the difficult task at hand will be the implementation of the aforementioned goals to ensure the success of the program.

Research and Development Focus compensation of special groups a sports sales plan essay Strength Although Nike conducts continuous, basic research that benefits numerous facets of the sports and fitness industry, our primary focus is directed towards applied research. Applied research focuses on short-term initiatives such as successfully developing new product lines.

Compensation of special groups a sports sales plan essay

This proves to be a strength in that this method of research is less costly than basic research, and less risky due to the short-term nature. Successful projects can realize immediate profitability while unsuccessful projects may be discontinued without enduring materially large losses. Focus — Weakness Focusing on applied research can be a weakness as well. Many new, innovative ideas come into existence as a result of basic, unspecific research. Though more risky and expensive, Nike would benefit from increasing the amount of basic research we conduct with hopes of uncovering potential opportunities of which Nike could take advantage.

Posture - Strength Our posture is primarily innovative, while at times adjusting to a protective position, and other times a catch-up stance. Nike prides itself on being a premiere provider of high quality sports footwear and apparel. Innovation has been the key to aiding Nike in securing its position as the leader in the market. Due to the lead Nike possesses in the industry, we can afford to look long-term and place a greater emphasis on innovation as opposed to other companies with a short-term outlook attempting to improve upon existing products and services.

At times, we need to adjust our posture in relation to a particular product line or area of products. In these instances, Nike may choose a defensive strategy to remedy the current situation. We may also choose a catch-up strategy and mimic what is working well for other companies in the industry.

Human Resources Human Capital - Weakness No successful company can exist and succeed without utilizing its human capital. While Nike has had various policies in place, weaknesses still exist in regards to labor policies in overseas locations. We received much bad publicity as well as experienced a decrease in sales as a result of poor labor policies and lack of policies established abroad. While establishing these policies is a step in the right direction for Nike, the difficult task at hand will be the implementation of the aforementioned goals of the new labor initiative to ensure the success of the program.

White House documents have revealed large donations to the Democratic National Committee by companies with an interest in seeing the embargo lifted. While the worst is over, Nike is still working on initiatives to change the current situations throughout factories. Whether true or not, the company still suffers from this unethical image and must sway the minds of the consumer and give them a renewed faith in the responsibility of Nike. Social Responsibility - Strength In response to accusations by consumer groups over unfair labor practices, Nike has developed a Corporate Responsibility Policy that discusses how we will improve working conditions for our international employees.

The Policy outlined on our web-site has the following mission, "To lead in corporate citizenship through operations that reflect caring for compensation of special groups a sports sales plan essay world family of Nike, our teammates, our consumers, and those who provide services to Nike.

The current ratio, while not a major strength, shows that Nike is inline with the industry concerning ease of converting assets to cash to cover short-term obligations. The quick ratio of 1. Being slightly above the industry indicates that we could sell less of our inventory than what other companies in the industry would have to sell to meet current obligations. Neither the current or quick ratio exceeds the industry average substantially enough to be considered a true strength.

The fact that we are not leaders is ultimately a weakness. Reducing inventory levels was a key initiative for Nike in fiscal year 1999. Due to our ability to quickly turnover inventory, Nike benefits from greater cash flows, reduced storage costs, and less spoilage.

Company management stated, "We put a considerable amount of effort into improving product buying power patterns and as a result the composition and levels of inventory resulted in improved gross margins relative to a year ago. Management of Accounts Receivable - Weakness Nike does permit sales in cash, cash equivalents and on credit. Our collection procedures have been lax compared to others in the industry resulting in slow payers and defaulting customers.

Our collection period calculates to 63. Steps are being taken to alleviate the problem of collecting accounts receivable in a more timely fashion. We have just recently changed our collection period from 90 days to 60 days as an attempt to encourage faster payment. Management of Debt - Strength Our debt-to-total-assets ratio is 15. Nike is not as leveraged as competitors in the industry and uses less debt financing to finance firm operations. This can be interpreted compensation of special groups a sports sales plan essay a strength as we do not rely as heavily as our competitors on debt financing.

Compensation of special groups: A Sports Sales Plan Essay

However, our highly liquid position gives us the ability to increase debt financing should we need or desire additional capital for company operations, research and development, or other changes as top management sees fit. Management of Debt - Weakness Despite the lower percentage of assets that are borrowed to finance Nike, our times interest earned ratio is weaker than the industry average. Our ratio of 19.

The industry average of 21. Our profit margin of 5. Our return on equity of 13.