Nike Inc Cost Of Capital Case Study Solution

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Nike Inc Cost Of Capital Case Solution

Nike Inc Cost Of Capital Case Study Analysis is a well-known name of a New York based, world's leading organization in the food and beverage industry. company is a prominent brand in practical treats, foods and drinks with its existence in about 200 countries.

The report contains a deep analysis of various elements of the social responsibilities of significant companies in the food and beverage industry in basic, and business in specific. The report likewise provides an examination of the extent of sustainability and CSR in the Nike Inc Cost Of Capital Case Study Analysis's business strategy along with the determination of how Case Study Solution creates value for its consumers.

Concerns Recognition

Case Study Help had actually taken particular important actions regarding the environmental effects of its products, however, these steps are not enough to end up the criticism over the company's duty towards social and environmental issues. This is required to take particular strategic actions to change the market position of its particular well-known brands and present Case Study Solution as a business producing healthy items in the market. In this regard, company and other food and beverage business must use their power to move the customer taste towards healthier products to get rid of the constraints in the growth of food industry.

Critical Analysis

For the couple of years, customer food patterns have actually been altered drastically. The shift from using healthy food to made food has extremely affected the health of the consumers. Despite of the discovery of modern health techniques, the total health of people in couple of decades have been highly affected. Currently about 1 billion of the people In US are obese and at least 300 countless them have obesity. Children also dealing with the issue of weight problems. The ratios of weight problems in 1980s are quite various from the present ratios. Despite of discovery of health techniques and modern-day ways to manage obesity and other illness, the ratio of weight problems has actually been doubled form the level of 1980. All of the information connected to the health concerns with the incorporation of made food in the market discuss the prevalence of the health issues connected to food system. These issues are indirectly the outcome of different practices of the food and drink business for producing worth for their consumers.

Worth Creation at Nike Inc Cost Of Capital Case Study Solution

Nike Inc Cost Of Capital Case Study Help being a huge company in the food and drink industry, offers high value to its clients by different means. Case Study Analysis has a competitive benefit in supplying its products far and large worldwide. The company is provided in about 200 nations with a large number of popular global brands.

Moreover, the company develops worth for its customers by means of providing large number of yummy food products consisting of salt, fat and sugar, which are the components that are directly connected with the psychological core of the customer's brain. The Nike Inc Cost Of Capital Case Study Help along with other giant food and drinks companies create value for its customers by controling these ingredients in its products. Case Study Help in addition to other huge business has an interest in discovering ways to increase the consumer worth from its items through making use of the vulnerability.

In addition to it, the company likewise creates worth by methods of integrating the healthy point in its products. The company has actually done specific efforts in order to offer healthy products and minimize the share of Nike Inc Cost Of Capital Case Study Help in total ecological destruction. Case Study Solution has actually taken particular steps connected to the sustainability of people and environment including the 2009 announcement of the enthusiastic goals and commitments related to Case Study Solution products, market and the community.

All of these means have been successful at producing value for the company customers. These means have likewise lead to the increased ecological issues and the criticism over the business's function in increasing health and ecological difficulties. The incorporation of components like salt, fat and sugar in the company items for producing consumer value faces high amount of criticism. These active ingredients are the primary cause of certain lethal diseases in human including obesity, diabetes, heart problem and so on. Increasing health related issues have raised the criticism for Nike Inc Cost Of Capital Case Study Help.

Useful Role of Major Food and Beverage Business in Addressing Social and Ecological Costs Connected With the Market

Undoubtedly, major food and drink business consisting of company, and so on can play a positive function in addressing social and eco-friendly costs related to the industry. The eco-friendly costs associated with food and drink industry consist of the ecological destruction due to the influx of nitrogen which has led to the minimized water drinking patterns, river contamination, and increased emission of greenhouse gases from soil and so on. All these factors leads to environmental destruction which could be a big risk to the presence of mankind in future.

Major cause of these environmental changes is mass use of nitrogen abundant fertilizers and the active ingredients by the food and beverage companies. Food and beverage business must play an useful role in resolving these concerns to remove their development constraints related to the criticism from the ecological communities.

In order to deal with these concerns, the companies might either lower their usage of nitrogen abundant active ingredients or take specific actions to decrease the quantity of nitrogen in the general environment. The companies need to prevent usage of nitrogen fertilizers and need to seek the items of those farmers that do not use fertilizers for their crop. The business might also invest in reducing greenhouse gas emissions worldwide. For example, the companies might use renewable energy sources at their production plant to compensate the greenhouse gas emissions from using nitrogen-rich products.

In addition to the eco-friendly expenses there are certain social costs connected with the food and beverage market which need to be attended to by the giant food and beverage companies to attain the market growth and to prevent the criticism from the environmental neighborhoods. Social expenses related to the industry includes the increasing health problems related to obesity, heart problem, diabetes and so on. The giant companies might play a constructive function in attending to these concerns.

The business could move towards more healthy products by decreasing the quantity of hazardous substances in their processed foods i.e. dioxin, which could result in lethal human diseases. Together with it, the companies must use more healthy active ingredients instead of derivatives of Corn and Soy to increase number of calories from their products. The companies could also do efforts to move customer tastes towards healthy items as they have actually managed the customer taste for few decades. In this method the huge food and beverage companies might play a positive role in attending to social and environmental costs associated with the industry.

Assessment of Sustainability at Nike Inc Cost Of Capital Case Study Solution

There was a possible shift in the business method and goals at Case Study Analysis. The new CEO was concentrated on purchasing much healthier items for attaining sustainable growth for the business along with supplying much healthier future for the people and the world both. Under the new vision, the motto of the business was also changed from the "enjoyable for you" to "much better for you".

Human Sustainability

The company announced particular goals and commitments associated with human sustainability and the environmental sustainability. Nike Inc Cost Of Capital Case Study Analysis obtained Quaker Oats producing TrueNorth nut treats and SoBe, and Naked Juice producing soy drinks and organic beverages to present various much healthier products in its portfolio. Despite of being considered a Case Study Analysis's healthy brand name, the products of Quake Oats consisted of several active ingredients which were hazardous to health. These harmful active ingredients were not promoted which have actually ended up being the base for criticism over the healthy brands of Nike Inc Cost Of Capital Case Study Help.

Together with the inculcation of healthy brand names in its portfolio through acquisitions, Nike Inc Cost Of Capital Case Study Solution has actually taken certain sustainability steps for its market locations. Among major examples in this regard is the Company's marketing strategy related to schools. The business markets just low calories and healthy beverages options in schools.

Another step taken by Case Study Solution towards human sustainability is the shift of its focus towards research study and development for introducing brand-new and healthy products in its portfolio. The business has actually increased its research study and advancement spending plan and has introduced an army of health scientists to design certain healthy products.

Ecological Sustainability

In this regard, the company committed to reduce its product packaging by millions of tones to prevent high quantity of wastages. The business has devoted to lower greenhouse gas emissions along with the achievement of performance in the energy usage.

On the basis of above analysis, it might be identified that the company has taken numerous actions towards human and environmental sustainability. These steps are still not adequate to attain the preferred commercial development and to minimize the criticism over the social obligation of Case Study Solution.

Alternatives

Certain long term tactical alternatives could be obtained for the business on the basis of above analysis. These alternatives can be evaluated on the basis of the fact that how the alternative would allow the company to accomplish its goal of possible growth and reduce the criticism over the business. The options might be examined on the basis of the time frame that would be taken by an option to be executed along with the cost and threats related to the alternative

Alternative-1: intro of a New Line of product Connected to Healthy Foods and Beverages

The primary step that Nike Inc Cost Of Capital Case Study Help could take is to present a brand-new line of product associated with healthy food and drinks. The business has currently presented certain heath related brands, however, the number of these brands in its portfolio is not possible to reduce the criticism and achieve prospective growth. Therefore, the business needs to introduce a large range of healthier products by utilizing its considerable research study and advancement expenses. The advantages and disadvantages associated with the intro of a healthy line of product in the portfolio are offered below:

Pros:

• Capability to target large number of consumers i.e. health mindful consumers.
• Reduction of the criticism of environmental worried societies and neighborhood development organizations.
• Fulfillment of the social obligation by payment of the harmful products with healthy items.
• Might be implemented within few years i.e. 3 to 5 years.

Cons:

• Danger of failure of the brand-new items in the market i.e. consumers might not like the taste and might decline the much healthier products due to the addictive nature of harmful items.
• The dangerous products in the product portfolio might make the incorporation of healthy items stop working to minimize criticism.
• Big cost of research and advancement needed to construct brand-new healthy products.

Alternative-2: High level Acquisition of Health related Companies

Another alternative option to attain the potential growth and minimize the criticism is to get the health related companies at a high level. Financial investment in these kind of companies would permit Nike Inc Cost Of Capital Case Study Analysis to introduce a large variety of healthier products within a short time period with no requirement of significant research study and advancement expenditures. The pros and cons associated with alternative 3 are given below:

Pros:

• Conserving of substantial quantity of research study and advancement costs for new product advancement.
• Incorporation of brand-new items within 2 years.
• Capability to target a great deal of customers i.e. health conscious customers.
• Decrease of the criticism of ecological concerned societies and neighborhood development organizations.
• Fulfillment of the social obligation by compensation of the harmful products with healthy products.

Cons:

• The acquisition might not prove to change the image of Nike Inc Cost Of Capital Case Study Help as in case of Quaker Oats.
• Requirement of huge amount of capital.
• Danger of failure of the brand-new products in the market i.e. consumers might not like the taste and might decline the healthier items due to the addicting nature of hazardous products.
• The harmful items in the item portfolio may make the incorporation of healthy products stop working to reduce criticism.

Aletrnative-3: Replacement of Hazardous Products with Healthy Products in the Portfolio

Another alternative choice for Nike Inc Cost Of Capital Case Study Help is to change all of its harmful products with healthier products. This might be a huge shift in the business technique and the business design at business. The replacement of hazardous items with much healthier products would entirely alter the market position of the company and would require a large number of essential steps to be taken. The pros and cons related to alternative 3 are provided listed below:

Pros:

• Change of market position of Nike Inc Cost Of Capital Case Study Solution
• Capability to target a great deal of customers i.e. health mindful consumers.
• End of all of the criticism of environmental concerned societies and community advancement organizations.
• Fulfillment of the social duty

Cons:

• Danger of failure of the brand-new items in the market i.e. customers may not like the taste and may not accept the much healthier items due to the addictive nature of dangerous products.
• Big cost of research study and advancement required to develop new healthy products.
• Employee might resist over the change in the business model and organisation technique.
• Variety of years needed for the implementation.
• Shift of focus from the core competencies.

Recommendations

With the deep analysis of the business's CSR, problems dealt with by the company and the present market circumstance, Case Study Solution is suggested to consider alternative 2 of high level of acquisition of health associated companies. As the acquisitions would enable the company to conserve of substantial quantity of research study and advancement costs for new item development. Along with it, acquisitions would permit incorporation of brand-new products within two years along with the capability to target large number of customers.

This Nike Inc Cost Of Capital case study is writen by : Robert F Bruner

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