Question

Homework 6

Topic:

• Choose an industry (sports, consumer goods, health, durable goods,

  retails etc.) Sports industry

• Choose a firm in this industry. Nike

• Discuss how this firm can increase its profitability. Identify the short-

  run and long-run strategies. Provide numerical support, if possible. Be

  as specific as possible. Details:

• You will prepare the assignment in teams of two people. You can choose your teammate. If you want to work by yourself, it is allowed as well.

• Different groups cannot choose the same firm. Hence, if another group submitted the firm that you want to choose before you, you have to change your firm or your firm and industry.

• This homework assignment should not exceed 10, 1.5 spaced pages (excluding the cover page, Executive Summary, references, and other attachments).

• Include a one page long Executive Summary at the beginning.

• You may want to write the report as a government officer advising the Minister, a chief strategist in a corporation, a consultant advising a

  client, or an entrepreneur exploring investment opportunities, etc.

• we chose sports industry and our firm is nike

Answer 1

TAKING SPORTS INDUSTRY AS AN INDUSTRY AND TAKING A FIRM NAMELY NIKE SPECIALLY PRODUCING SHOES MAINLY.

A FIRM HAVE BASICALLY TWO PHASES WHILE IT IS PRODUCING.

SHORT RUN: UNDER THIS PHASE BETWEEN FIXED AND VARIABLE COST ANY ONE CAN BE VARIED AND BY THAT PROFIT CAN BE ENHANCED. THE FIRM CAN USE UPGRADED MATERIALS FOR PRODUCTION.

LONG RUN : UNDER THIS BOTH THE COSTS CAN BE VARIED AND BY THAT PROFITABILITY CAN BE CHANGED. THE FIRM CAN SHIFT TO A NEW PLACE OR IT CAN OPEN ANOTHER BRANCH ALONG ITH TAHT IT CAN USE UPGRADED MATERIALS AND MODIFIED MACHINES WHILE RODUCTION. AS A RESULT BETTER PRODUCTS WILL BE PRODUCED AND COMPANY WILL EARN MONE PROFIT.