Identifying long term trends in organizational performance

¶ … Long-Term Trends

This study offers financial and strategic analysis of Nike Inc. with a focus on creating strategic plans and translating those plans into long-term goals and actionable business initiatives. This paper serves to show the importance of using economic variables in identifying long-term financial goals. It further presents major techniques and tools that Nike's financial managers will utilize in predicting future stock market guidelines and the economy.

The importance of using Economic variables for Nike Inc. financial managers in identifying long-term financial goals

The management is directed to engage financial variables to identify long-term objectives. Some economic variables affecting the company must be considered. This will ensure that necessary actions are undertaken to minimize their impact on the business. The variables include employment trends, inflation, interest rates, and commercial lending. Many companies such as Nike Inc. work towards one goal: maximizing profits. The process of profit maximization is simple. It entails analyzing customer demanding and providing supply in goo quality and quantity. However, various factors tend to affect this operation. Understanding economic variables will help the management design is strategies and avoid reaching the economic events without coherent corporate actions (Mahaffy, 2002).

The use of economic variables is expected to allow managers of Nike Inc. To look at how changes in the business atmosphere might affect the projected results of the company. Economic variables give an analysis displaying a comparison of the financial plan over a certain period. For the managers, this display will act as a guide to the achievement of goals and objectives and assist in evaluating progress and profitability.

Using economic variables to discover lasting targets will allow Nike's financial managers to establish the feasibility of its long-range plans. This includes long-term planning that is grounded on forecasts and realistic goals that would possibly affect objectives and goals. The financial managers will acquire information relating to income and distribution of expenses. They will be better positioned to implement a control plan for performance evaluation using short-term budgeting and planning. When the financial managers forecast through economic variables, they will be able to maximize the profitable utility of the company's assets as it pertains to the analysis of the recent information by tested and logical statistical techniques. Economic managers will alert the financial managers of Nike Inc. about differences from expectations that a cause for concern (The McGraw-Hill Companies, 2002).

Major techniques that Nike Inc. financial managers can use to forecast future directions in the stock market and the economy

Financial managers of Nike Inc. can use various techniques tools to forecast the future directions in the economy and stock market. A budget presents a comprehensive plan, estimating the possible expenditures and incomes for the organization over a specified duration. Budgeting plays two key roles: planning and control. Careful planning will create an outline for control that Nike will use when it incorporates all the departments in the planning process. The careful planning and control of a budget will benefit the financial managers in various ways like coordinating activities, enhancing managerial perspective, evaluating performance and flagging possible problems (The McGraw-Hill Companies, 2007).

Based on the intended outcome, each technique provides different weaknesses and strengths. The financial managers can engage Delhi financial forecasting to research and identify problems within the organization. Teams of experts work collaboratively in order to discuss the problem with the defined goal of divining financial predictions. The team predictor identifies a level of agreement, which the experts must achieve for the purpose of the financial forecasting report to be presented to the management (StockCharts.com 2010).