Business Week 6 DQR

BUS Week 6 DQR

Marc Ramirez

HELLO CLASS AND PROFESSOR

Cashflow is a factor that might cause an otherwise sound company to fail during times of broad disruption, as we saw during the epidemic and the 2008 financial crisis. In addition, there are concerns with product prices, excessive trading or investing, weak vendor and customer repayment practices, debt, expensive overhead, and intense periods of high demand.

Phil Knight owner of NIKE was under constant pressure from bankers to curtail his expansion in order to protect the company's equity and lower the likelihood of an impending catastrophe. Tiger regularly shipped goods late or in violation of the terms of the order. Knight continued to sell out of stock despite the stress and pressure, just making it to the deadline for paying off his line of credit before placing an order for twice as many shoes as the previous time. He ran Blue Ribbon sports on the side while working full-time as an accountant to make ends meet.

A common theme is the ongoing struggle to strike a balance between the demand for innovation and expansion and the requirement to increase cash flow. Nike stands apart from the competition because of how it approached the problem. The outcome might have been different if Phil Knight had adopted the then-common strategy for increasing cash flow—taking on additional debt with a single investor, He looked for options instead. It was a choice that helped Nike get through a cash flow issue and one many modern manufacturers may benefit from.

MARC,

3 Lessons for Entrepreneurs From Nike "Shoe Dog" Phil Knight | The Motley Fool

(430) The Rise of Nike: How One Man Built a Billion-Dollar Brand – YouTube

Jacob Gardner

Class,

Having positive cash flow is crucial for a business to survive and thrive. All companies experience periods of loss, but DISH Network experienced a massive dip in subscribers, and their free cash flow went into the negative. In three months, the company lost 462,000 TV subscribers. Also, Sling TV, which is attached to DISH Network, lost 300,000 subscribers. On top of all these losses DISH also reported that it had suffered a loss of 343,000 retail wireless subscribers. CEO W. Erik Carlson said, "We had higher expectations, but the bottom line is we simply didn't execute to the level we expected."

Dish Suffered a nearly 200 million dollar devaluation during this quarter. The company's stock share dropped to $0.68 from $0.99. Company executives blamed this drastic downfall on the company investing a large part of its earnings into its wireless network. Shares for the company dropped by 10%, which did not help with the company already being devalued rapidly. One of the reasons DISH fell on hard times is because the company had a dispute with another company, Tegna. Thankfully for DISH, the companies were able to come to an agreement, and DISH was given the rights to stream the super bowl and the most recent winter Olympics, which helped the companies profit.

DISH has been putting money into its new business adventure, wireless networking. DISH proposed a settlement to T-Mobile over the shutdown of DISH's 3G CDMA network. As it stands right now, the two companies were able to come to an agreement and DISH customers that use DISH's mobile network companies, such as Boost Mobile, now have access to all of T-Mobiles wireless network towers. T-Mobile and DISH partnering together is a multi-billion dollar partnership and helped DISH recover all of its lost profits from the abysmal quarter earlier in the year.

References:

Dish Network Loses Subscribers as Company Cites Poor Execution – The Hollywood Reporter

DISH and T‑Mobile Expand Network Services Partnership ‑ T‑Mobile Newsroom (t-mobile.com)