Capstone Project Research Paper Example | Topics and Well Written Essays - 2500 words

Capstone Project - Research Paper Example As far as its footwear market is concerned, the company consists of 33% of global market share. Its distribution channels include both traditional and nontraditional channels in more than 100 countries in the whole world (Armstrong & Kotler, 2009). Â   The mission of Nike stated in their mission statement is to surpass all other similar and competition companies in the industry. Nike plans to achieve this by maintaining its position in market through providing quality footwear, equipment and apparels for consumers of all ages and lifestyles and also for different institutions. Through proper utilization of retail outlets, company’s websites as well as mail order company pledges to make its products available globally. As far as execution of this mission is concerned the company and its management believes that for the effective operations of the company, the success lies in collective responsibilities of all employees, team mates, customers, communities and all the stakeholde rs for the company. (Kotler & Keller, 2009). Nike’s vision is to remain a global leader in the industry and for this the company intends to continue producing high quality products. This challenges the company to continue to constantly meet through innovation and creativity, the ever changing trends and needs of their customers and the company is dedicated to achieve these in both short and long term. (Kotler & Keller, 2009). The analysis of Nike’s strategic plan along with its performance over the years shows that the company has been able to perform with regard to its vision and financial statements, which is a part of its strategic plan. The company, since the year 2000, was able to achieve a net income of more than $550 million at the end of every financial year which helps the company to achieve its long-term objective of improvement on equity, and a higher EPS. Nike focuses on improving on stockholders returns on equity to achieve a percentage of 20 and this can be estimated to roughly 6% from its previous trading periods. Nike has been previously able to recover market price of its stock from a low of $26.5, per share to $50 and above, per share. Nike works on strategies through which it can increase its earnings per share to an estimated $2.70, a figure that can be one of the highest (Armstrong & Kotler, 2009). Under the company analysis, the strengths and weaknesses of Nike will be reviewed. One of the major strengths’ of Nike includes its board of director consisting of both independent directors and management directors. They play a vital role in the decision making of the company especially the decisions related to strategy formulation of the company. These diversified directors help the company by not only providing an outside experience but also a frame of reference improving an overall thinking of the board, hence their decisions include rich experience and eliminates any disagreements and contradictions. Another major stren gth is the strong internal environment of the company as Nike conducts an internal analysis, which helps making decisions (Nike, 2012). The weaknesses that the company has experienced so far are related to the company’s inability to cope up with the issues regarding to labor. There also have been complains regarding the company’s working conditions. This was even highlighted as a major issue in the global media and led Nike to a bad reputation, turning into a major crisis