Key Value Drivers in Nike: 11 4. Key Value Drivers in Nike: 11 4. Key Value Drivers: 11 4. Key Value Drivers in Nike: 11 5. Key Value Drivers: 11 4. Key Value Drivers: 11 5. Key Value Drivers: 11 4. K

Running head: ACCOUNTING
Accounting
Name of the Student
Name of the University
Author Note

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Table of Contents
Part A – Firm strategy and financial analysis..................................................................................2
1. Mission statement.................................................................................................................2
2. Business model.....................................................................................................................2
3. Financial statement analysis.................................................................................................3
Part B – Firm strategy implementation and balanced scorecard.....................................................5
1. Competitive and Business Factors:..........................................................................................5
2. Customer Analysis:..................................................................................................................8
3. Key Value Drivers:................................................................................................................11
3.1 Key Value Drivers in Nike:.................................................................................................11
4. Balanced Scorecard for Nike:................................................................................................12
References......................................................................................................................................14

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Part A – Firm strategy and financial analysis
1. Mission statement
Nike Inc. promotes the culture for invention. They create the experiences, services and
products for the athletes and at the same time solve the issues for next generation of athletes.
Research lab of the company is the integral part of Nike Explore team and the mission of the
team is driving the product innovation for the athletes all over the world (Nike.com/us/en_us,
2017).
Their mission statement is – “Bring innovation and inspiration to every athlete in the
world and you are an athlete provided you have a body”.
2. Business model
2.1 strategy description
Value proposition for consumers of Nike is based upon the product that is technically
superior, made with the latest available technologies and from the best quality materials,
positioned as most fashionable in industry and is endorsed by the top sport stars and athletes.
The value proposition for Nike is to become successful in the industry with respect to driving the
image and marketing aspect. Though the core competencies of Nike with regard to marketing
and design can be matched with the competitors, they are generating strong advantage with
regard to the image field. Further, the retailing operations are supported by the usages of the
information technologies ((Nike.com/us/en_us, 2017).

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2.2 Differentiation of products or services
The differentiation strategy of Nike is establishing the entity as standard with respect to
the athletic wear. Through focusing on the product line, the company is able to manufacture the
product of high quality to meet the expectations of customers. The product line of the company
is not wide and they offer workout clothes, athletic shoes and few additional products. The focus
of the company is very clear and the focus is to provide the athletes with their required
equipment for success. This single-minded focus enabled the company to develop the efficient
manufacturers and supplier’s network that can deliver the materials with high quality
((Nike.com/us/en_us, 2017).
2.3 Operation
The company is exceptionally good in the supply chain management that facilitates the
efficient production for supporting the global equipment business, sports shoes and apparel.
Main objective under this strategic decision of operation management area is aligning supply
chain with the overall strategic goal of the company.
3. Financial statement analysis
Ratio 2015 2016 2017
Profitability ratio
Gross margin ratio 46.0 46.2 44.6
Efficiency ratio
Receivable turnover ratio 9.01 9.81 9.93
Inventory turnover ratio 3.99 3.79 3.85