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In: Business and Management

Submitted By ProfDan
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Long Term Financial Planning

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Goal setting will have benefits for Nike. It is a very important managerial role for this incorporation. One of the benefits of setting the objectives is that it will improve the profitability of Nike. According to the Chief Financial Officer, the incorporation is looking forward to achieving a high single digit growth in revenue. The growth in EPS is expected to be in the range of 15% to 17%. In addition, the incorporation aims at having a 25% return on investments. The incorporation has divided its goals in terms of quarters in a financial year. The goals in this case are maintaining the DPS at 25% to 35% of total expenditure. By setting these goals, Nike Incorporation will be in a position to attain the objectives. In the absence of goal setting the incorporation would not have estimated an attainment of such goals. This is because the goals would not have been there in the first place (Blair, 2010).
The second importance of goal setting to Nike Incorporation will be the increase in efficiency. Nike will be able to increase its efficiency since it will be brought about by the need to increase its profitability. For this incorporation to achieve a high performance there will be a need to improve the way it operates. At this point, this incorporation wishes to enhance its global retail business. This is intended to improve the customer experience of the different groups and also promote the idea category in all major markets. In this line, Nike will enhance its operations as far as the wholesale of goods and capabilities of sales are concerned. All these efforts will increase the efficiency of this incorporation. For this to be achieved, the management wishes to invest 5 to 6 billion dollars over the next five years. Overall, the increase in efficiency will imply that the incorporation will deliver increased…...

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