Share
Explore BrainMass

Nike -- use of independent contractors

Nike is an Oregon-based company that focuses on the design, development, and worldwide marketing of high-quality footwear, apparel, equipment, and accessory products. Nike is the largest seller of athletic apparel in the world. The company sells its products to approximately 19,700 retail accounts in the United States and through a mix of independent distributors, licenses, and subsidiaries in approximately 110 countries around the world.

Virtually all of the company's products are manufactured by independent contractors. Most footwear products are produced outside the United States, while apparel products are produced both in the United States and abroad.

Identify one decision that Nike managers make in each of the six value chain functions.
For each decision in requirement 1, identify one piece of accounting information that would aid the manager's decision.

Write 5 questions that can be answered by accounting information. For example, "How many shoe styles should Nike produce for next year?" or "where are the sales trends declining?"

Solution Preview

The six value chain functions used are as follows:

Inbound logistics --> Operations --> Outbound Logistics --> Marketing and Sales --> Service --> Margin

Inbound logistics:
Where should we buy the materials to make our products? Accounting information used: Prices of goods from different suppliers.

Operations:
Which independent contractors should we use to produce our products? Accounting information used: Prior years' data on turnaround time and costs for ...

$2.19