Managing Activities to achieve results Essay Example | Topics and Well Written Essays - 2250 words

Managing Activities to achieve results - Essay Example NIKE’s mission statement is â€Å"to bring inspiration and inspiration to all athletes in the world, if you have a body, you are an athlete† (Epstein et al, 2012: p341). NIKE has a preference for using Environmentally Preferred materials, or EPM, which have a lower environmental impact on waste or water, energy, and chemistry. They contend that sustainable products can only be achieved via addressing the product materials, which they do by forging closer relationships with suppliers to ensure they deliver against their needs, for instance, sustainability. One way that NIKE optimizes material use is through the continuous assessment and reduction of overall numbers utilized in production. The focus also aids in management of complexities and cost in the supply chain and design phase. The shift from traditional materials to EPMs requires comprehension of the material characteristics and their availability. The structure of NIKE An organizational structure activities like supervision, coordination, and task allocation that are directed to achieving the aims and objectives of a company. Organizations are, basically, clustered entities with variations. Depending on objectives, the company can be structured in various ways, which determines its operative and performance mode (Daft et al, 2010: p34). It allows for the allocation of responsibilities with regards to various processes and functions to entities such as the individual, workgroup, department, and branch. It also affects the action of the organization by the provision of the foundation for standard procedures of operation and routine, as well as determination of the individuals who participate in decision making and shape the actions of the company (Daft et al, 2010: p35). NIKE has a matrix organizational structure, also known as the flat organizational structure (Epstein et al, 2012: p342). In the flat organization at NIKE, the employees report to the product or project teams that are led by p roduct managers and to the department manager. Every brand possesses a department with this department making independent decisions. The departments also have sub-departments that are responsible for mini-tasks in the department. The product team and managers are involved in decision making with regards to production and specifications with the managers at the department level involved, primarily, in issues to do with policy, for instance, sustainability (Epstein et al, 2012: p342). The production team is able to react and take decisions faster than traditional department heads as these are removed from the line of production. NIKE’s Vision A vision statement is definitive of what an organization will perform in the future, as well as why it will be in existence tomorrow with defined goals with set dates of accomplishment (Daft et al, 2010: p45). Vision statements involve the organization’s current status and acts as a direction on the path the organization wishes to t ake. It can also be useful as a marketing tool since it acts to announce the organization’s purpose and goals to the media, vendors, clients, suppliers, and employees. NIKE has a clear vision that entails decoupling growth of profits from resource constraints (Epstein et al, 2012: p345). The vision is one that views the world in transition to a sustainable economy from an industrial one with renewable

Valuation and Investment Term Paper Example | Topics and Well Written Essays - 1000 words

Valuation and Investment - Term Paper Example More than 60 percent of the potential customers come from US alone. Carnival is a 23.78 billion company by market capitalization. It has 100 ships in its possession and runs 15 hotels comprising of 3420 guest rooms. The company also possesses 395 motor coaches. The company markets its vacation tours through travel agents and operators. The company gets competition from several smaller cruise liners but due to scale of operations the company is in better position to weather them. (Carnival Corporation 2011) Compared to Cruise Lines, Royal Caribbean (RCL) is a smaller company with market capitalization of only $5 billion; however, RCL claims to have the newest fleet in the industry that provides a lot more open space in their fleets. Operationally, they are smaller than Carnival Cruise but hope to pick them fast. Royal Caribbean manages 40 ships and handles traffic of almost 4 million passengers. The Celebrity Cruises segment is meant for premium customers. This segment comprises 9 shi ps and offers some of the premium services. (Royal Caribbean 2011) Financials It will be appropriate to go through the financials of both the company. The following table shows side by side some of the important key parameters. Some Key Financials Cruise Corporation (CCL) Royal Caribbean (RCL) Market Cap (intraday) 23.78bn 5.06bn Current Ratio (mrq) 0.23 0.40 Total Debt/Equity (mrq) 41.26 103.7 Operating Cash Flow (ttm) 3.82billion 1.42billion Qtrly Earnings Growth (yoy) -18.30% 74.0% Trailing P/E (ttm) 12.53 8.71 200-Day Moving Average 38.41 38.41 52-Week High 48.14 49.99 52-Week Low 29.36 23.03 Beta 1.53 3.19 Source: http://uk.finance.yahoo.com/q/ks?s=CCL http://uk.finance.yahoo.com/q/ks?s=RCL Liquidity The above table displays some of the important liquidity ratios for both the company. On liquidity ground the Cruise Corporation stands better than Royal Caribbean as debt-equity and current ratio both are higher in the case of Royal Caribbean; however, the reason for this lies in the recent addition of some of the luxury ships in its fleet increasing its long term debt. Obviously, this has also reflected in its earnings growth too. Earnings Growth As per the quarterly earnings growth, Royal has displayed an impressive 74 % year to year growth against the negative earnings shown by Cruise Corporation. This indicates that though Cruise has larger fleet to cater to the vacation needs, the segment to which it serves is price sensitive and the Cruise is unable to raise its effective rates due to recessionary conditions. The situation for the CCL may improve with the change in economic conditions as being envisaged after nine months and then higher vacation charges may improve the earnings. Nevertheless, robust growth of the economy is not envisaged in near future so the advantage of booming economy that CCL may have because of its larger fleet and capacity to handle larger traffic is several years away. Risk Perception by Market CCL commands higher P/E compared t o RCL as can be seen from the above table. Risk perception (Beta) by market for RCL is much higher than CCL as later commands smaller Beta of 1.53 against 3.19 of RCL. High Beta indicates high volatility in the market price of the stock. In case of some adverse market conditions or due to some other eventuality the price of RCL may see the vertical fall; however, that also indicates that substantial rise in stock price is possible with