ADJUSTMENTS ON WORK

The role of financial strategy and its effects on business decisions/success.

Every business small or big requires a financial strategy. The role is mainly to determine how an organization will manage resources to increase its profits and to be successful. On a daily basis, financial strategy is needed to help the ongoing company’s process and dealings for e.g. Hiring and firing individuals, sending statements, scheduling operations, formulating a budget, or investments. (Kemmett, 2009) Apart from this there are financial metrics that helps Nike to make day to day decisions and measure success. Such metrics include cash flows. Which generate future investments, measures financial position. Economic value, which organizations mostly set goals by measuring businesses value and improve the distribution process. Other as such metrics include growth, assets management, and profitability ratios etc. Each of which plays a critical role in Nike’s financial strategies and growth. (Wins, 2018)

Capitalization of nonfinancial factors

There are many ways through which Nike capitalizes better on nonfinancial factors such as; Brand and reputation. The reputation of the Nike brand carries a significance in the market place and in the overall value of the business. In order to upsurge the importance of the business, Nike should concentrate increasing the brand everywhere operations are held and it should be according to the culture that it will operate. Though Nike’s brand image is considered to be the most respectable brand in the world. As the brand name and image translates into bottom line revenues with aggressive advertisement. Next nonfinancial factor that comes into play is the location or the market. Apart from the physical location, the market is an important factor which contributes into the expansion of Nike. As the Nike has the highest market share in the US and is expected to launch new product in the future. For e.Nike works in an areas where it is densely populated have a higher chance of gaining more market value relatively in less populated areas. They also do operate outside these areas, and it is a risk as there is less chance of growth. Next is the management team. The brains behind the strategies and plans is the work force of Nike’s that leads it to great lengths success. Nike hires experienced and well trained professionals which leads to efficiency. If the management team is strong, they can come up with intense business decisions and ideas that could flourish the whole business. Nike could also capitalize better by adding more facilities in the workplace, especially during production, more upgrading within the systems, use of high tech technologies could fast things up. As per many researches, technology can bring in efficiency and more profit. With the presence of technology, it could improve the work performance and doubles the speed. It is far for effective and easier. (“The Importance of Information Technology In Business Today”,2013)

Internal risks of a company

There are many internal risks involved such as financial strategic risks which have to do with all the dealings or transactions that are taking place. Investments, assets, interest rates, bonds, tariffs are the source where there are continuous fluctuations when dealing with banks. Especially during import and export of the product. Technology related risks comes with the consumer preference and demands of Nike’s. As many changes are impacting Nike and the consumer preferences for foot wear such as automation and online shopping, shows a technological shift in the sales. Cyber-attacks and hacking are getting common day by day so Nike needs to develop strong firewall against it. As per many researches, there are many risks that are associated with unfaithful employers. This could lead to cost cutting as they could be embezzling or corrupting the whole company and the board members need to suspend their employee. This may lead to a fall in their reputation. They could try to sell the business in low price in terms of huge losses. Physical risks involve losses, selling of assets, cost cutting. Many researches do highlight that due to internal risks most of the business fail to move forward and close down due to lack of mismanagement. (Maal, 2019)

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