Case Study #$2-$ Nike Cost of Capital

Completion requirements

Opened: Monday, August $5,2024,6$:$00$ PM

Due: Monday, August $19,2024,11$:$59$ PM

Note: You will need the case study materials from the Harvard Business Review case study course$-$pack outlined in the syllabus. The below information provides additional direction after you have read the case study.

Overview

Business professionals are inundated with communication. This constant communication ranges from electronic forms, such as web pages, emails, and text messages, to more formal workplace communications such as presentations, memos and reports. To reduce the information overload and increase retention, an executive summary is tailored to meet the needs of the busy professional who requires a summation of the key points of a more in$-$depth document. An executive summary is a highly$-$functional report, as a simplified synopsis or overview not intended to replace the full report, but serve as a concise rendering of it$.$

Task

Assuming the role of an analyst, tasked by Kimi Ford with reviewing Joanna Cohen$$s analysis, you will write a formal executive summary detailing your evaluation. This evaluation should be focused on the variables, estimates and assumptions Kimi used that resulted in a Cost of Capital for Nike. Make recommendations for changes in the variables based on your analysis. Calculate a revised Cost of Capital and consider how the revised cost would affect the value of Nike.

As with all written communication, assume your work will be circulated widely $$ anyone from analysts to executive leaderships as well as to Joanna Cohen. As with any evaluation, especially one involving complicated numerical data, clarity is critical to a reader$$s understanding and retention of the information provided.

The executive summary will be assessed on the accuracy of your analysis as well as the effectiveness of the written communication. Attentiveness to format $($headings$,$ margins, spacing, font, and consistency$),$ grammar$/$mechanics$,$ sentence structure, brevity, and professional tone is necessary to enhance your credibility and the credibility the reader attributes to your evaluation. Audience analysis will be apparent in the organization of the executive summary$$s content as well the language used. Considering the memo might be perceived as $$bad news$$ by the Joanna Cohen or other interested parties, the executive summary should be organized.

The executive summary should adhere to the following format:

Font

Calibri, Arial, or Times New Roman

$12$ point font for the body text

$18$ point font for headings

Spacing

Single spaced; block style; left justified

Margins

$1$ inch

Organization

Introduction $(1$ paragraph$)-$ Introduce the purpose and provide context for the analysis.

Body $(3-5$ paragraphs with a tables to clarify data$)$ Highlight the most important aspects of the evaluation. Recommendations should be included. Headings will help emphasize the different aspects of the body, which is the densest portion of the executive summary.

Conclusion $(1$ paragraph$)$ Reinforce the important aspects of the body with a short summation. Discuss the revised Cost of Capital and the effect on the value of Nike.

Length

$2$ pages maximum

Graphics

At least $1$ table

Case Study Rubric

Excellent

Very Good

Good

Fair

Poor

Non$-$Existent

Content

$30$ points

All content is relevant and leads to valid conclusions

Content demonstrates a superior mastery of the subject matter

$28$ points

Almost all content $($with $1-2$ exceptions$)$ is relevant and leads to valid conclusions

Content demonstrates a mastery of the subject matter

$26$ points

Most content is relevant and usually leads to valid conclusions

Content demonstrates a good understanding of the subject matter

$22$ points

Some content is relevant and sometimes leads to valid conclusions

Content demonstrates a general understanding of the subject matter

$18$ points

Most content is not relevant and does not lead to valid conclusions

Content demonstrates little understanding of the subject matter

$0$ points

All content is irrelevant and does not lead to valid conclusions

Content does not demonstrate any understanding of the subject matter

Completeness

$7\mathrm{.}5$ points

All applicable items are covered in superior detail

$6\mathrm{.}2$ points

Almost all applicable items $($with $1-2$ exceptions$)$ are covered in good detail

$5\mathrm{.}9$ points

Most applicable items are covered in sufficient detail

$4\mathrm{.}9$ points

Some applicable items are covered in limited detail

$4\mathrm{.}1$ points

Few applicable items are covered in detail

$0$ points

No applicable items are covered in detail

Clarity

$7\mathrm{.}5$ points

Narrative and all exhibits are all presented in a professional manner

Paper organization and consistency in presentation is exemplar

$6\mathrm{.}2$ points

Na