Case Analysis of Nike, Inc.: Cost of Capital


Now, you can find my case analysis of Nike.INC: Cost of Capital on my blog as follows:
http://emfps.blogspot.com/2011_06_12_archive.html
-This case can be a complex case in which we can doubt about sensitivity analysis done by Kimi Ford (portfolio manager) too.

-Which method is to calculate cost of debt better than others?
Best Regards
Gholamreza Soleimani

Now, you can find my case analysis of Nike.INC: Cost of Capital on my blog as follows:
http://emfps.blogspot.com/2011_06_12_archive.html
-This case can be a complex case in which we can doubt about sensitivity analysis done by Kimi Ford (portfolio manager) too.

-Which method is to calculate cost of debt better than others?
Best Regards
Gholamreza Soleimani
quote
Duncan

Why are you posting this? This site is about MBA programs.

Why are you posting this? This site is about MBA programs.
quote

Do you know where I submit my articles as advertisement?

Do you know where I submit my articles as advertisement?
quote
Duncan

When MBAs analyse cases it should be their own work. I don't understand why you would want to help other people to cheat. If you want to advertise, try Google AdWords.

When MBAs analyse cases it should be their own work. I don't understand why you would want to help other people to cheat. If you want to advertise, try Google AdWords.
quote

Please be informed some of my articles just like my cases analysis are only to test all people in the world to find the honest people these articles are not included any real strategic plan.
For example, now you understand why I do not raise my real strategic plans included in my articles as follows:

http://emfps.blogspot.com/2010_10_17_archive.html

http://emfps.blogspot.com/2010/10/blog-post.html

http://emfps.blogspot.com/2011_02_20_archive.html

http://emfps.blogspot.com/2011/02/where-money-goes-where-power-comes-from.html#comments (especially my comment)

Because I cannot trust to anybody around the world. Do you know any honest people? Of course, there is also another reason not to submit some my ideas in the field of new resources of energy for instance; I have to wait to increase of crude oil to $168 or decrease to $33 to be feasible one of my ideas (due to capital budgeting analysis). My index for electericity price is equal to 11.2 US cents /1kWh.
As the matter of fact, my cases analysis can be indicative. Why? Because I submitted some new methods in the field of capital budgeting (case analysis of Euroland Food) in Finance while I had not any background in Finance. Only I studied finance for 1 month. What is the concept of this matter?
The concept is: when I said to you that I have new ideas about new resources of energy even lower price than crude oil, the people should think that maybe I am right. Of course, as I said to you I will raise my best new ideas only to someone who are honest with me.

Please be informed some of my articles just like my cases analysis are only to test all people in the world to find the honest people these articles are not included any real strategic plan.
For example, now you understand why I do not raise my real strategic plans included in my articles as follows:

http://emfps.blogspot.com/2010_10_17_archive.html

http://emfps.blogspot.com/2010/10/blog-post.html

http://emfps.blogspot.com/2011_02_20_archive.html

http://emfps.blogspot.com/2011/02/where-money-goes-where-power-comes-from.html#comments (especially my comment)

Because I cannot trust to anybody around the world. Do you know any honest people? Of course, there is also another reason not to submit some my ideas in the field of new resources of energy for instance; I have to wait to increase of crude oil to $168 or decrease to $33 to be feasible one of my ideas (due to capital budgeting analysis). My index for electericity price is equal to 11.2 US cents /1kWh.
As the matter of fact, my cases analysis can be indicative. Why? Because I submitted some new methods in the field of capital budgeting (case analysis of Euroland Food) in Finance while I had not any background in Finance. Only I studied finance for 1 month. What is the concept of this matter?
The concept is: when I said to you that I have new ideas about new resources of energy even lower price than crude oil, the people should think that maybe I am right. Of course, as I said to you I will raise my best new ideas only to someone who are honest with me.
quote
Duncan

I'm not sure where you can find the right people, but I don't think it will be here.

I'm not sure where you can find the right people, but I don't think it will be here.
quote

In this article, I have made 1000 trials (rows) of Pascal?s Triangular by excel spreadsheet to calculate probability of the outcomes and I utilized it to depict the Game theory used in corporate financial strategy.

Now, you can review this article on below link:

http://emfps.blogspot.com/2012/04/application-of-pascals-tri....

Best Regards

In this article, I have made 1000 trials (rows) of Pascal?s Triangular by excel spreadsheet to calculate probability of the outcomes and I utilized it to depict the Game theory used in corporate financial strategy.

Now, you can review this article on below link:

http://emfps.blogspot.com/2012/04/application-of-pascals-tri....

Best Regards
quote

This case is about the impact of an environmental factor (External issue) on dividend policy of the firm (Internal issue). The environmental disaster was Hurricane Katrina which was caused the huge destruction across the south-eastern United States. Because of the storm, the stock market notably fell down. Since it is possible that the price of the shares once more increase even more than before in the near future, Ashley Swenson, chief financial officer (CFO) of Gainesboro Machine Tools Corporation has the dilemma to buy back stock or to spend the money as dividend the shareholders......
You can review the continuation of this case analysis on below link:
http://emfps.blogspot.com/2012/03/case-analysis-of-gainesboro-machine.html

This case is about the impact of an environmental factor (External issue) on dividend policy of the firm (Internal issue). The environmental disaster was Hurricane Katrina which was caused the huge destruction across the south-eastern United States. Because of the storm, the stock market notably fell down. Since it is possible that the price of the shares once more increase even more than before in the near future, Ashley Swenson, chief financial officer (CFO) of Gainesboro Machine Tools Corporation has the dilemma to buy back stock or to spend the money as dividend the shareholders......
You can review the continuation of this case analysis on below link:
http://emfps.blogspot.com/2012/03/case-analysis-of-gainesboro-machine.html
quote

As I mentioned in my previous article of ?Fuzzy Delphi Method to Design a Strategic Plan?, I would like to continue the debate on Distance Method.

But before going to the distance method, let me explain my story as follows:
While I was working on discrepancy between basic and distance method on driving forces, I encountered to a phenomena. Now, let me depict this phenomenon in the framework of a theorem below cited:

Inequality Theorem in Fuzzy Logic

Assume, there is the fuzzy subset A of X where X is a universal set. Then, we define the fuzzy set of A by its membership function (MF=Membership Function) as follows:

MFA: X ------- [0, 1]

It means that a real number MFA (x) in the interval [0, 1] is assigned to each element x where x is a member of X and also the value of MFA (x) at x presents the grade of membership of x in A.
We consider below conditions for the fuzzy set A:

-Fuzzy set A is a convex and normalized fuzzy set in which we can say the fuzzy set A is a fuzzy number.
- Fuzzy set A is a central triangular fuzzy number where we have:

For central triangular fuzzy number A= (a, b, c): MFA (x) = 2(x-a)/c-a If a < x < b
MFA (x) = 2(x-c)/a-c If b < x < c
b = (a + c)/2
Now, we assume the set of S is included all.....
You can find the continuation of this article on below link:
http://emfps.blogspot.com/2012/02/fuzzy-delphi-method-to-design-strategic_06.html

As I mentioned in my previous article of ?Fuzzy Delphi Method to Design a Strategic Plan?, I would like to continue the debate on Distance Method.

But before going to the distance method, let me explain my story as follows:
While I was working on discrepancy between basic and distance method on driving forces, I encountered to a phenomena. Now, let me depict this phenomenon in the framework of a theorem below cited:

Inequality Theorem in Fuzzy Logic

Assume, there is the fuzzy subset A of X where X is a universal set. Then, we define the fuzzy set of A by its membership function (MF=Membership Function) as follows:

MFA: X ------- [0, 1]

It means that a real number MFA (x) in the interval [0, 1] is assigned to each element x where x is a member of X and also the value of MFA (x) at x presents the grade of membership of x in A.
We consider below conditions for the fuzzy set A:

-Fuzzy set A is a convex and normalized fuzzy set in which we can say the fuzzy set A is a fuzzy number.
- Fuzzy set A is a central triangular fuzzy number where we have:

For central triangular fuzzy number A= (a, b, c): MFA (x) = 2(x-a)/c-a If a < x < b
MFA (x) = 2(x-c)/a-c If b < x < c
b = (a + c)/2
Now, we assume the set of S is included all.....
You can find the continuation of this article on below link:
http://emfps.blogspot.com/2012/02/fuzzy-delphi-method-to-design-strategic_06.html
quote

Nowadays, Fuzzy Delphi Method (FDM) is broadly used by researchers in the various fields of Science, Technology and Management. This method was stated by Ishikawa et al. (1993) in which it is the integration between the traditional Delphi techniques and fuzzy set theory.
In this article, I am willing to employ FDM to design a strategic plan. At the first, I will explain a brief methodology of Fuzzy Delphi Method then I will depict step by step to make a strategic plan and I will highlight where we need to utilize FDM. Finally, I will bring an example for better perception of FDM.

Methodology

Traditional Delphi method is an approach to gathering information from high qualified experts to develop the predictions about future events. A panel of experts is chosen. Then, they release their opinions for each feature where the responses of experts are collected and analyzed statistically. The processed data will communicate with the experts again to write another response. This procedure will be repeated rounds of questioning and written responses in which the outcome will cover the reasonable data to solve a problem or to forecast an event in the future. This method was developed by the Rand Corporation at Santa Monica, California in the late 1960s. One of the most important problems is to solve the fuzziness of the expert consensus within the group decision making. Murray et al. (1985) first proposed the application of fuzzy theory to the Delphi method. Then Ishikawa et al. (1993) utilized the maximum-minimum method together with cumulative frequency distribution and fuzzy scoring to compile the expert opinions into fuzzy numbers. We can use triangular fuzzy number, trapezoidal fuzzy number and Gaussian fuzzy number as the selection of fuzzy membership functions. There are many Fuzzy Delphi methods such as basic FDM, Fuzzy Analytic Hierarchy Process (FAHP), and the concept of distance (dij) between two triangular numbers refer to Kaufmann and Gupta (1988). In this article, my example is applied the triangular membership functions referred to basic FDM accompanied by the type of alpha ?cut method (Ranking) as threshold. But in the next article, I will bring an example of Distance method and I will compare these two methods. (Why?) I will tell you the reason behind of this comparison in the next article.
Now, let us see a literature review of basic FDM as follows:

Yu-Lung Hsu et al. (2010) stated the steps of basic FDM: [1]

?1. Collect opinions of decision group: Find the evaluation score of each alternate factor?s significance given by each expert by using linguistic variables in questionnaires.

2. Set up triangular fuzzy numbers: Calculate the evaluation value of triangular fuzzy number of each alternate factor given by experts, find out the significance triangular fuzzy number of the alternate factor.

3. Defuzzification: Use simple centre of gravity method to defuzzify the fuzzy weight.

4. Screen evaluation indexes: Finally proper factors can be screened out from numerous factors by setting the threshold.?

I also used from above steps for my example in this article.

Designing Strategic Plan

Here, I follow the steps which should be taken to design a strategic plan simultaneously I highlight the items which need to utilize FDM.
In fact, by designing a strategic plan, we look at the image of the company or industry including current vision and mission then we will make new vision and vision as the outlooks of the company or industry. Let?s go the steps:

1) Overview of the company
2) History of the company
3) Current vision & mission
4) Strategic goals
5) Current strategies
6) External or Internal consideration (Is the company Industry base or Resource base?)
7) Financial performance
8) Financial and Strategic Objectives
4) Strategy - Making Hierarchy including corporate strategy, business strategy, functional area strategies within each business, operating strategies within each business.
5) PEST Analysis (The components of a company?s Microenvironment) including:
5-1) The impact factors of political issues
5-2) Dominant Economic Factors
5 -3) Dominant Socio ? Cultural Factors
5-3) Dominant Technology Factors
We need to use from FDM to rank and to find priorities.
6) Porter?s forces
According to Porter?s forces, we have below forces:
-Power of Suppliers..........
You can review the continuation of this article on below link:
http://emfps.blogspot.com/2012/02/fuzzy-delphi-method-to-design-strategic.html

Nowadays, Fuzzy Delphi Method (FDM) is broadly used by researchers in the various fields of Science, Technology and Management. This method was stated by Ishikawa et al. (1993) in which it is the integration between the traditional Delphi techniques and fuzzy set theory.
In this article, I am willing to employ FDM to design a strategic plan. At the first, I will explain a brief methodology of Fuzzy Delphi Method then I will depict step by step to make a strategic plan and I will highlight where we need to utilize FDM. Finally, I will bring an example for better perception of FDM.

Methodology

Traditional Delphi method is an approach to gathering information from high qualified experts to develop the predictions about future events. A panel of experts is chosen. Then, they release their opinions for each feature where the responses of experts are collected and analyzed statistically. The processed data will communicate with the experts again to write another response. This procedure will be repeated rounds of questioning and written responses in which the outcome will cover the reasonable data to solve a problem or to forecast an event in the future. This method was developed by the Rand Corporation at Santa Monica, California in the late 1960s. One of the most important problems is to solve the fuzziness of the expert consensus within the group decision making. Murray et al. (1985) first proposed the application of fuzzy theory to the Delphi method. Then Ishikawa et al. (1993) utilized the maximum-minimum method together with cumulative frequency distribution and fuzzy scoring to compile the expert opinions into fuzzy numbers. We can use triangular fuzzy number, trapezoidal fuzzy number and Gaussian fuzzy number as the selection of fuzzy membership functions. There are many Fuzzy Delphi methods such as basic FDM, Fuzzy Analytic Hierarchy Process (FAHP), and the concept of distance (dij) between two triangular numbers refer to Kaufmann and Gupta (1988). In this article, my example is applied the triangular membership functions referred to basic FDM accompanied by the type of alpha ?cut method (Ranking) as threshold. But in the next article, I will bring an example of Distance method and I will compare these two methods. (Why?) I will tell you the reason behind of this comparison in the next article.
Now, let us see a literature review of basic FDM as follows:

Yu-Lung Hsu et al. (2010) stated the steps of basic FDM: [1]

?1. Collect opinions of decision group: Find the evaluation score of each alternate factor?s significance given by each expert by using linguistic variables in questionnaires.

2. Set up triangular fuzzy numbers: Calculate the evaluation value of triangular fuzzy number of each alternate factor given by experts, find out the significance triangular fuzzy number of the alternate factor.

3. Defuzzification: Use simple centre of gravity method to defuzzify the fuzzy weight.

4. Screen evaluation indexes: Finally proper factors can be screened out from numerous factors by setting the threshold.?

I also used from above steps for my example in this article.

Designing Strategic Plan

Here, I follow the steps which should be taken to design a strategic plan simultaneously I highlight the items which need to utilize FDM.
In fact, by designing a strategic plan, we look at the image of the company or industry including current vision and mission then we will make new vision and vision as the outlooks of the company or industry. Let?s go the steps:

1) Overview of the company
2) History of the company
3) Current vision & mission
4) Strategic goals
5) Current strategies
6) External or Internal consideration (Is the company Industry base or Resource base?)
7) Financial performance
8) Financial and Strategic Objectives
4) Strategy - Making Hierarchy including corporate strategy, business strategy, functional area strategies within each business, operating strategies within each business.
5) PEST Analysis (The components of a company?s Microenvironment) including:
5-1) The impact factors of political issues
5-2) Dominant Economic Factors
5 -3) Dominant Socio ? Cultural Factors
5-3) Dominant Technology Factors
We need to use from FDM to rank and to find priorities.
6) Porter?s forces
According to Porter?s forces, we have below forces:
-Power of Suppliers..........
You can review the continuation of this article on below link:
http://emfps.blogspot.com/2012/02/fuzzy-delphi-method-to-design-strategic.html
quote

You can review this article on below link:

http://emfps.blogspot.com/2012/01/monte-carlo-analysis-on-case-of-nike.html

You can review this article on below link:

http://emfps.blogspot.com/2012/01/monte-carlo-analysis-on-case-of-nike.html
quote

Reply to Post