Business problem – High labor costs – reduce to increase the profitability levels
Slide 1- Introduction
The ultimate aim of every company is to maximize the profitability levels and expand the market share so as to increase the shareholder’s value. However, some costs such as labor cost hinder the achievement of these objectives as they form a significant portion of aggregate expenditure. Therefore, there is a need to device ways of cutting unnecessary operating costs. Nike Inc. is faced with high labor cost problem which significantly affects the profitability of the company.
Slide 2 - Agenda The agenda of the presentation is to sensitize the senior management on the problem facing the organization so as to deliberate the forward regarding …show more content…
is an American based company that is involved in dealings related to design, manufacturing, development, as well as global marketing of apparel, footwear, accessories, services, and equipment. The headquarters of the company are based in Oregon, Portland metropolitan. Nike was established in 1965, January operating under the name Blue Ribbon Sports. The founders were Bill Bowerman and Phil Knight. It rebranded to Nike Inc. in May 1971. The company has been cited as one of the leading manufacturers of apparel as well as athletic shoes.
Slide 4 – The Business Problem Nike Inc. is faced with the problem which entails high labor cost. This is a major hindrance to the profit optimization goal. Labor cost denotes the summation of all the wages and salaries advanced to employees. In addition, labor cost constitutes the aggregate of the employee benefits as well as the taxes paid on behalf of the employee. Labor cost control is therefore needed to increase the level of profitability and competitiveness in the market.
Slide 5 - Importance of the Business …show more content…
It constitutes one of the important operating costs in business. A variable denotes anything that has either quality or quantity and can be measured. The dependent variable for the case of Nike Inc.’s problem is the cost of labor while the independent variable is technology used. Labor cost forms a perfect variable since it affects the profitability which is the major reason for existence of any form of business.
Slide 7 - Data Analysis Techniques Descriptive statistics and inferential statistics form the best data analysis technique for the labor cost problem. Descriptive analysis presents data in tables and figures while inferential analysis is used to draw a generalization from the samples selected. Therefore, the two data analysis methods are equally important. Under inferential analysis, the general linear model will be appropriate as it allows comparison of Nike’s data with data from competitors. A correlation analysis will be conducted to show the relationship between technology and cost.
Slide 8 - Possible Solution to the
Slide 1- Introduction
The ultimate aim of every company is to maximize the profitability levels and expand the market share so as to increase the shareholder’s value. However, some costs such as labor cost hinder the achievement of these objectives as they form a significant portion of aggregate expenditure. Therefore, there is a need to device ways of cutting unnecessary operating costs. Nike Inc. is faced with high labor cost problem which significantly affects the profitability of the company.
Slide 2 - Agenda The agenda of the presentation is to sensitize the senior management on the problem facing the organization so as to deliberate the forward regarding …show more content…
is an American based company that is involved in dealings related to design, manufacturing, development, as well as global marketing of apparel, footwear, accessories, services, and equipment. The headquarters of the company are based in Oregon, Portland metropolitan. Nike was established in 1965, January operating under the name Blue Ribbon Sports. The founders were Bill Bowerman and Phil Knight. It rebranded to Nike Inc. in May 1971. The company has been cited as one of the leading manufacturers of apparel as well as athletic shoes.
Slide 4 – The Business Problem Nike Inc. is faced with the problem which entails high labor cost. This is a major hindrance to the profit optimization goal. Labor cost denotes the summation of all the wages and salaries advanced to employees. In addition, labor cost constitutes the aggregate of the employee benefits as well as the taxes paid on behalf of the employee. Labor cost control is therefore needed to increase the level of profitability and competitiveness in the market.
Slide 5 - Importance of the Business …show more content…
It constitutes one of the important operating costs in business. A variable denotes anything that has either quality or quantity and can be measured. The dependent variable for the case of Nike Inc.’s problem is the cost of labor while the independent variable is technology used. Labor cost forms a perfect variable since it affects the profitability which is the major reason for existence of any form of business.
Slide 7 - Data Analysis Techniques Descriptive statistics and inferential statistics form the best data analysis technique for the labor cost problem. Descriptive analysis presents data in tables and figures while inferential analysis is used to draw a generalization from the samples selected. Therefore, the two data analysis methods are equally important. Under inferential analysis, the general linear model will be appropriate as it allows comparison of Nike’s data with data from competitors. A correlation analysis will be conducted to show the relationship between technology and cost.
Slide 8 - Possible Solution to the