Nike Case study Unit 1 30 January 2018 The industry in which Nike resides have been doing well for the most part in the last 5 years. Nike have managed to continuously keep their company revenue growing with just some little down falls over the years. Within this last year Nike keep make good revenue, but their stock prices drop about 20% due to competition company such as Adidas who also try to make a come up. Stock dropping made this last past year for not so good. It’s always a risk when it comes to running a great company like Nike and who have been around for a long time. If Nike keeping using different avenues such as high-profile athletes and well know sport leagues to promote their company, it will keep making money. However, they must find other ways to market themselves because most these athletes will one day leave the sport and that will be hard to keep endorsing them without people losing interest in that product. Nike must also choose who they want to endorse wisely because not all people are a good look to be a spokesperson. Nike is keeping up with the now things and what people are looking to buy. Creating work out app’s and coming up with a wrist watch too was a great move for that company. To have those devices able to keep up with the different sport that like Nike to endorse is a good thing as well. Nike long term strategies are make sure they keep product that they came up with from the being of their company start up. Nike top 3 competitors are Adidas, Reebok and Taylor Made. Most of these companies took advantage of new technologies before Nike got wind of it or invested into it. Things such as challenging industry and focusing on technologies, pricing, and cost production could have a disadvantage for these up and coming companies that try to get where Nike is today but also can be advantage for them to. Nike have the revenue which can be a great advantage for them to a head of all the other companies around them try to grow. Threat of new entrant’s base on first-movers advantage is minimal. Nike must keep cost of production low and not only that must learn to keep with what people are buying today. Use more technology and get more new athletes that will be in the sport longer. These other company may want to take notes and use some of Nike market strategy that have been use over the years so that their company can grow as well. Also, the other company can try to target people that Nike is not reaching to gain them as long-term clients. Group xxx –Lxxxx – InstructorSurname PLEASE COMPLETE THE AREAS MARKED IN RED BELOW. Course Number: RSM230H1S Lecture Section: Lxxxxx Course Name: Financial Markets Professor Name: xxxx Assignment Title: Group Assignment 1 Group Number: XXXXX Team Members: FIRST NAMES ONLY 1. XXXX 2. XXXX 3. XXXX 4. XXXX Please check the box electronically as shown below: [ X ] XXXXXXXXX [ ] XXXXXXXXX Group xxx –Lxxxx – InstructorSurname [ ] XXXX ...

1. Nike Case study
Unit 1
30 January 2018
The industry in which Nike resides have been doing well for the
most part in the last 5 years. Nike have managed to
continuously keep their company revenue growing with just
some little down falls over the years. Within this last year Nike
keep make good revenue, but their stock prices drop about 20%
due to competition company such as Adidas who also try to
make a come up. Stock dropping made this last past year for not

2. so good.
It’s always a risk when it comes to running a great
company like Nike and who have been around for a long time. If
Nike keeping using different avenues such as high-profile
athletes and well know sport leagues to promote their company,
it will keep making money. However, they must find other ways
to market themselves because most these athletes will one day
leave the sport and that will be hard to keep endorsing them
without people losing interest in that product. Nike must also
choose who they want to endorse wisely because not all people
are a good look to be a spokesperson. Nike is keeping up with
the now things and what people are looking to buy. Creating
work out app’s and coming up with a wrist watch too was a
great move for that company. To have those devices able to
keep up with the different sport that like Nike to endorse is a
good thing as well. Nike long term strategies are make sure they
keep product that they came up with from the being of their
company start up.
Nike top 3 competitors are Adidas, Reebok and Taylor
Made. Most of these companies took advantage of new
technologies before Nike got wind of it or invested into it.
Things such as challenging industry and focusing on
technologies, pricing, and cost production could have a
disadvantage for these up and coming companies that try to get
where Nike is today but also can be advantage for them to. Nike
have the revenue which can be a great advantage for them to a
head of all the other companies around them try to grow. Threat
of new entrant’s base on first-movers advantage is minimal.
Nike must keep cost of production low and not only that
must learn to keep with what people are buying today. Use more
technology and get more new athletes that will be in the sport
longer. These other company may want to take notes and use
some of Nike market strategy that have been use over the years
so that their company can grow as well. Also, the other
company can try to target people that Nike is not reaching to
gain them as long-term clients.

3. Group xxx –Lxxxx – InstructorSurname
PLEASE COMPLETE THE AREAS MARKED IN RED
BELOW.
Course Number: RSM230H1S
Lecture Section: Lxxxxx
Course Name: Financial Markets
Professor Name: xxxx
Assignment Title: Group Assignment 1
Group Number: XXXXX
Team Members: FIRST NAMES ONLY
1. XXXX
2. XXXX
3. XXXX
4. XXXX
Please check the box electronically as shown below:
[ X ] XXXXXXXXX [ ]
XXXXXXXXX
Group xxx –Lxxxx – InstructorSurname
[ ] XXXXXXXXX [ ]
XXXXXXXXX
1

4. RSM 230: Financial Markets
Group Assignment 1 – Winter 2018
Due February 11th, 2018 by 11:59 pm on Blackboard
IMPORTANT INSTRUCTIONS:
· Enter your Group and Section information in the Header.
· Start EACH QUESTION ON A NEW PAGE.
· Include page numbers on the bottom right corner of the page.
Please complete the Rotman Commerce cover page on page 1,
and include the names and student numbers of all group
members.
Failure to follow these instructions may result in points being
deducted.
Question 1 – Definitions - some research may be required (10
marks)
Please provide a brief description of the following (1-3
sentences each):
(a) 1-month CORRA
(b) Fed Funds Rate
(c) Prime Rate
(d) AAA rated sovereign bond
(e) LIBOR

5. Question 2 – Canadian Interest Rates (30 marks)
To answer this question, you need to obtain data from the Bank
of Canada website. Ten-year data look up is at
http://www.bankofcanada.ca/rates/interest-rates/
However, some of the data is on other sections at the Bank of
Canada and you may need to use the search function in the top
right hand corner of the page. You can search using the series
identifier such as V39079 for the target overnight rate.
(a) Please provide the following Canadian data as of the last day
in 2008, 2011, 2015 and 2017. (10 marks)
Interest Rates
2008
2011
2015
2017
Target for the overnight rate (V39079)
1-month Canada Treasury Bill Rate (V39063)
1-month Bankers' Acceptance Rate (V39068)
1-month Prime Corporate Paper Rate (V39072)

6. Government of Canada (GOC) long term bond yield (V39056)
(b) Based on the data you obtained in (a) above, provide the
interest rate difference (or “spread”) between the following
rates for the dates specified above: (8 marks)
Interest Rate Spreads
2008
2011
2015
2017
Bankers Acceptances and Treasury Bills (Canada – 1 month)
Prime Corporate Paper and Treasury Bills (Canada – 1 month)
Government of Canada (GOC) long term bond yield (V39056)
and 1-month Canada Treasury Bill Rate (V39063)

7. (c) Briefly explain what each of the three interest rate
differences or “spreads” you calculated in Question 2(b)
represents. (6 marks)
(Your explanation of each spread should be 1 to 3 sentences.)
(d) Briefly explainwhy the spreads you calculated in part (b)
above change over time. (Your explanation should be 2 or 3
sentences.)(6 marks)
Question 3 - Government of Canada Bonds (15 marks)
You may find the following Bank of Canada article useful to
answer this question:
http://www.bankofcanada.ca/wp-
content/uploads/2010/06/r963b.pdf
(a) Briefly explain the difference between a Government of
Canada nominal bond and a Government of Canada Real return
bond. (5 marks) (Your explanation should be 3 or 4 sentences)
(b) Retrieve the weekly yields for the Government of Canada
long-term bond (V80691326) and the long term Real Return
Bond yield (V80691347) from February 29, 2008 to January 17,
2018 and save your data to a file.
Calculate the difference between these two yields (long-term
bond yield minus real return bond yield) and plot it on a graph.
Include your graph but do NOT include the data in your
assignment. (5 marks)

8. (c) What does the difference between these two yields
represent? (5 marks)
Question 4– Bond Quotations (20 marks)
(a) On CANDEAL’s web page at http://www.candeal.ca/ find
bond quotes for the following two corporate bonds and the
Government of Canada bond listed here and complete the table
below (10 marks):
Issuer
Maturity Date
Moody’s
Rating
S&P
Rating
Bid
Price
Bid
Yield
Ask
Yield
Ask Price
Hydro One
HYDONE 4.39

9. ROGERS
Communication
Inc. (RCI)
RCICN
6.68
Canada
5.00
Maturing in 2037
(b) Explain what the Bid yield and Ask yield represent. (Some
research may be required.)(2 marks)
(c) Explain the relationship between the Ask price and the
bond’s par value. What has happened to interest rates since the
issue of these bonds? (3 marks)
(d) Discuss the difference in the long-term bond ratings (from
both S&P and Moody’s) for Hydro One, Rogers

10. Communications, and Canada. How is this reflected in the yield
for these bonds? (5 marks)
Note: if these bonds are not quoted on CANDEAL please
use a different bond from the same issuer, since what is
available for sale constantly changes in the bond market. If you
do this, please note clearly the bond you used instead (coupon
and maturity date). Also, you will need to google to find the
bond ratings for each issuer. The best way is to search for
“investor relations” for each company, and generally for Canada
credit ratings.
Question 5 – Video Questions (25 marks)
Please watch the following video interviews with Richard
Nesbitt, which are posted on Wiley Plus Assignments (Group
Assignment 1: Q5 Videos), and then answer the questions
below:
Corner Suite Video: The Role of Financial Markets
Corner Suite Video: The Role of the Stock Market
Corner Suite Video: Banking and Compliance: Canadian
Banking
Corner Suite Video: Banking and Compliance: Bank
Scandals and Compliance
Corner Suite Video: Banking and Compliance: What Keeps
Bankers Up at Night
(a) According to Richard Nesbitt, what are the risks that are
currently “keeping Canadian bank managers up at night”? (1-3
sentences)(2 marks)
(b) Banking crises in the past have been caused when banks
__________________ long-term and __________________
short-term. (2 marks)
(c) Why were Canadian banks able to remain stable during the

11. financial crisis of 2008? (2 reasons) (Maximum 4 sentences)(4
marks)
(d) What has been the main change in the business of stock
market trading over the past twenty years? (1-3 sentences)(4
marks)
(e) Name the retirement income plan that provides Canadians
with income upon retirement. (2 marks).
Please watch the following video interviews with Marlene
Puffer, which are posted on Wiley Plus Assignments (Group
Assignment 1: Q5 Videos), and then answer the questions
below:
Corner Suite Video: The Fixed Income Market:
Background
Corner Suite Video: The Fixed Income Market: Bond
Market Overview- Structure and Players
Corner Suite Video: The Fixed Income Market:
Determinants of Bond Yields
(f) Name five main participants in the bond market. (5 marks)
(g) Name a type of investment vehicle now available to retail
investors to provide access to the bond market. What is the
advantage of this type of investment for retail investors? (2-3
sentences) (3 marks)
(h) Why is there a big difference in the yield (price) of bonds
rated BBB compared to bonds rated BB (high)? (3 marks)
2

12. Group xxx
–
Lxxxx
–
InstructorSurname
1
PLEASE COMPLETE THE AREAS MARKED IN RED
BELOW
.
Course Number: RSM230
H1S
Lecture Section:
Lxxxxx

13. Course Name: Financial Markets
Professor Name:
xxxx
Assignment Title: Group
Assignment 1
Group Number:
XXXXX
Team Members: FIRST NAMES ONLY
1.
XXXX
2.
XXXX
3.
XXXX
4.
XXXX
Please check the box electronically as shown below:

14. [
X
] XXXXXXXXX
[
] XXXXXXXXX
[
] XXXXXXXXX
[
] XXXXXXXXX
Group xxx –Lxxxx – InstructorSurname
PLEASE COMPLETE THE AREAS MARKED IN RED
BELOW.

15. Course Number: RSM230H1S
Lecture Section: Lxxxxx
Course Name: Financial Markets
Professor Name: xxxx
Assignment Title: Group Assignment 1
Group Number: XXXXX
Team Members: FIRST NAMES ONLY
1. XXXX
2. XXXX
3. XXXX
4. XXXX
Please check the box electronically as shown below:
[ X ] XXXXXXXXX [ ] XXXXXXXXX
[ ] XXXXXXXXX [ ] XXXXXXXXX