1. Nike Free Run Shoes
By: Wesley Gill

2. Table of Contents Introduction Executive Summary
Executive Summary/Ratios
Product/Relevant Cost
Contribution Margin
Recommendations
References

3. Introduction Type: Public (NYSE:NKE) in NASDAQ market
Founded: January 25,1962 as Blue Ribbon Sports 1978 as Nike, Inc.
Founders: William J."Bill“ Bowerman Philip H. Knight
NIKE Headquarters: Washington County, Oregon, United States
Area served: Global
Key people: Philip H. Knight(Chairman) Mark Parker (CEO & President)

4. Executive Summary
Stock Price $60.00
Stock History:
Dividends:

5. Executive Summary/Ratios
Revenue (2012): $ M
Revenue Growth (1yr): 15.70%
Key stats and Ratios:
Q1 (Feb '13)
2012
Net profit margin
10.70%
9.21%
Operating margin
14.11%
12.36%
EBITD margin -
14.02%
Return on average assets
17.25%
14.59%
Return on average equity
25.68%
21.98%

6. Product cost/Relevant Cost
Production Labor: $2.75
Materials: $9.00
Rent, equipment: $3.00
Supplier's operating profit: $1.75
Duties: $3.00
Shipping: $0.50
Cost to Nike: $20.00
Research and Development: $0.25
Promotion and Advertising: $4.00
Sales, Distribution Administration: $5.00
Nike's operating profit: $6.25
Cost to Retailer: $35.50
Retailer's Rent: $9.00
Personnel: $9.50
Other: $7.00
Retailer's Operating Profit: $9.00
Cost to Consumer: $70.00

7. Contribution Margin Contribution margin= Sales Price – Variable Cost
Contribution Margin for Nike is $50.00

8. Recommendations
Improve its marketing plan which includes advertisement.
Simplifying its website can help it reach more diverse society.
To make things cheaper Nike can focus more on its labor working conditions and wages.

9. References
Yahoo Finance
NikeInc.com
Google Finance