Group Study Presentation Anke Bernards, Stephanie Diller, Andrea Hanisch.
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Transcript of Group Study Presentation Anke Bernards, Stephanie Diller, Andrea Hanisch.
ADIDAS - NIKE
Group Study PresentationAnke Bernards, Stephanie Diller, Andrea Hanisch
Clive’s Comments
Good introduction Try to avoid just reading. Use slides as
prompts. Perhaps practice a little more before presentation.
Excellent graph on efficiency. Perhaps an industry line of graphs so as
to make comparison to the industry. Great SWOT and conclusions Great sustainability summary
STRUCTURE
I. How we chose the companys II. History, Trends and recent newsIII. Financial Analysis:
Liquidity, Profitability, Efficiency, DuPontIV. Stock chart and price trendsV. Conclusion Financial DataVI. Swot AnalysisVII. Overall Conclusion
I. HOW WE CHOSE THE COMPANIES
Sport Apparel & Accessories
I. HOW WE CHOSE THE COMPANYS
http://www.youtube.com/watch?v=8TnG7jyfoWI
I. HISTORY, TRENDS AND RECENT NEWS
NKE Competitors
Overall Information: Foundend: 1924 in Germany Type: Aktiengesellschaft Industry:Clothing and consumer goods manufacture
Area Served: Worldwide Products: Footwear, sportswear, sports equipment,
toiletries
Recent News: In 2006 Adidas announced 11-year deal to become official NBA apparel provider Adidas provided official soccer balls for 2006 and 2010 World Cups Official provider for English and South African Cricket teams
I. HISTORY, TRENDS AND RECENT NEWS
I. HISTORY, TRENDS AND RECENT NEWS
Overall Information: Founded: 1964 in the US Type: Public Company Industry: Clothing and Sports equipment
Area Served: Worldwide Products: Athletic shoes, Apparel, Sports equipment, Accessories
Recent News:
The 2010 Nike Pro Combat jersey collection is worn by teams from universities throughout America Newest Nike products contain Flywire and Lunarlite Foam to reduce weight Release of Nike + Sports Band Sweatshop Issue: since 2002, great improvement in working conditions, health care, environmental issues, and allowance of random factory inspections
I. HISTORY, TRENDS AND RECENT NEWS
Nike
Goal for 2015:turnover gain of 40% (20 billion €)
Targeting of the emerging global middle class• Expansion of affiliated brands overseas • Greater focus on apparel• Introduction of new technologies like Hyperfuse
I. HISTORY, TRENDS AND RECENT NEWS
Adidas
Focus on expansion of Russian market (as well as China and North America)
Goal for 2015: increase total revenue of last year (12 billion €) 45-50% (17 billion €) 2012: European Championship Soccer in Poland/Ukraine 2014: Winter Olympics in Russia 2018: World Championship Soccer in Russia
II. FINANCIAL ANALYSIS: LIQUIDITYKey Ratio: Net Working Capital
2007 2008 2009 20100
1000
2000
3000
4000
5000
6000
4119.754138.5
4842.75
5696.25
15221290
16491972
Working capital NikeWorking capital Adidas
II. FINANCIAL ANALYSIS: LIQUIDITY
Key Ratio: Long Term Debt Ratio
2007 2008 2009 20100.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
5.84%5.64% 5.03%
4.57%
58.42%
64.64%
24.17%
4.78%
Long Term Debt Ratio NikeLong Term Debt Ratio Adidas
INDUSTRY 10,58%
II. FINANCIAL ANALYSIS: EFFICIENCY
Key Ratio: Total Asset Turnover
2007 2008 2009 20100.000.200.400.600.801.001.201.401.601.80
1.53 1.50 1.45
1.32
1.23 1.21 1.13 1.23
Total asset turnover Nike
Total asset turnover Adidas
Industry: 0,56
II. FINANCIAL ANALYSIS: EFFICIENCY
Key Ratio: Inventory Turnover
2007 2008 2009 20100
1
2
3
4
5
4.4 4.5 4.4
4.6
3.3 3.1 3.3
3.5Inventory turns NikeInventory turns Adidas
Industry 1,76
II. FINANCIAL ANALYSIS: PROFITABILITY
Key Ratio: ROA
2007 2008 2009 20100.0%
5.0%
10.0%
15.0%
20.0%
25.0%
14.5% 16.3% 11.6%13.8%
19.6%19.0%
8.1%
15.2%Return on assets Nike
Return on assets Adidas
Industry 4,39%
II. FINANCIAL ANALYSIS: PROFITABILITY
Key Ratio: Gross Profit Margin
2007 2008 2009 201041
43
45
47
49
43.78
45.8244.9
46.3
47.4
48.7
45.4
47.89
Gross margin Nike
Gross margin Adidas
Industry 17,55
II. FINANCIAL ANALYSIS: DUPONT
2007 2008 2009 20100.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
22.40% 24.50%
18.00%20.70%
18.20% 18.90%
6.50%
12.30%
Return on equity Nike
Industry 7,36
III. STOCK CHART AND PRICE TRENDS
5 year chart
2007 2008 2009 2010
Basic earning per common share
2,71 € 3,25 € 1,25 € 2,71 €
III. STOCK CHART AND PRICE TRENDS
2007 2008 2009 2010
Basic earning per common share
2,96 $ 3,8 $ 3,07 $ 3,93 $
5 year chart
CONCLUSIONS – FINANCIAL DATA
SWOT
Opportunites- Emerging markets
- Innovative products- Rise in number of women
athletes
Threats- Intense competition- High dependency on
oversea production- Foreign Exchange risk
StrengthBrand equity, global
presence, product, quality
WeaknessesCurrency exposure,
decreasing market in US
Strategy 1. Achieve economies of scale in
manufacturing2. Continue with product innovation
3. Focus on online/retail4.Improve financial controls for better
cash turnovers5. Social activities to strengthen
brand image6. Focus on women athletes products
SWOT Opportunites
Joint Venture of Adidas with Stella McCartney-plans to outscore e-
commerce
Threats- Intense competition- Faking of products
- Sponsored athletes are reflecting negative image
(i.e. Kobe Bryant)
Strength- Biggest sponsor of sport
events - -Brand recognition
- - Obeying environmental laws
Weaknesses- High prices
- Web booking only in US
Strategy
1. Growth strategy -> Russia, China, North America2. Product innovations
3. Concentrating on soccer world championships
CONCLUSIONS – SUSTAINABILITY
• Sustainability Statement: Performance, Passion, Integrity, Diversity• Environmental Strategy 2015• Supply Chain standards • Materials: Sustainable, recycled,Organic cotton
• Closed-Loop Business Model
• Focus on key policy issues of climate change, sustainable materials and product and post-consumer waste
THE ENDThanks for your attention!