IFE (Internal Factor Evaluation) for Nike:

Key Internal Factors | Weight | Rating | Weighted Score
Strengths:
1. Strong brand image | 0.15 | 4 | 0.60
2. Extensive distribution network | 0.10 | 4 | 0.40
3. Innovative product development | 0.25 | 4 | 1.00
4. Strong financial position | 0.20 | 3 | 0.60
5. Effective marketing campaigns | 0.15 | 3 | 0.45
6. High-quality products | 0.15 | 4 | 0.60

Weaknesses:
1. Dependence on third-party manufacturers | 0.10 | 2 | 0.20
2. Vulnerability to foreign currency fluctuations | 0.10 | 2 | 0.20
3. Limited product diversification | 0.15 | 2 | 0.30
4. Negative publicity regarding labor practices | 0.15 | 1 | 0.15
5. High production costs | 0.20 | 2 | 0.40
6. Exposure to geopolitical risks | 0.10 | 2 | 0.20

Total weighted score | 1.00 | -- | 4.70

Financial Ratio Analysis:

1. Current Ratio: This ratio measures Nike's ability to meet short-term financial obligations. Formula: Current Assets / Current Liabilities.
Current Ratio = $26,782 million / $17,206 million = 1.56
Conclusion: Nike's current ratio of 1.56 indicates that the company has sufficient current assets to cover its current liabilities.

2. Debt-to-Equity Ratio: This ratio indicates the proportion of debt and equity financing used by Nike. Formula: Total Debt / Total Equity.
Debt-to-Equity Ratio = $6,674 million / $12,527 million = 0.53
Conclusion: Nike has a relatively low debt-to-equity ratio, which indicates financial stability and a conservative approach to financing.

3. Return on Assets (ROA): This ratio measures the profitability of Nike's assets. Formula: Net Income / Total Assets.
ROA = $2,540 million / $36,397 million = 0.07 or 7%
Conclusion: Nike's ROA of 7% indicates that the company generates a moderate return from its invested assets.

4. Gross Profit Margin: This ratio indicates Nike's ability to generate profits from its products. Formula: Gross Profit / Net Sales.
Gross Profit Margin = $16,642 million / $37,403 million = 0.44 or 44%
Conclusion: Nike's gross profit margin of 44% implies that the company effectively manages its production and distribution costs.

Overall Analysis and Conclusions:

Nike demonstrates several internal strengths that contribute to its competitive advantage, including a strong brand image, extensive distribution network, innovative product development, strong financial position, effective marketing campaigns, and high-quality products. These strengths enable Nike to maintain its market leadership and attract customers.

However, Nike also faces some internal weaknesses, such as dependence on third-party manufacturers, vulnerability to foreign currency fluctuations, limited product diversification, negative publicity regarding labor practices, high production costs, and exposure to geopolitical risks. Addressing these weaknesses is crucial for Nike's long-term success and sustainability.

Financially, Nike maintains a healthy current ratio, indicating good liquidity. The company also has a low debt-to-equity ratio, highlighting financial stability and prudent capital management. Nike's return on assets is moderate, suggesting room for improvement in asset utilization. However, the company's gross profit margin is strong, emphasizing effective cost management and competitive pricing strategies.

In conclusion, Nike possesses strong internal capabilities, but should address its weaknesses and strive for continuous improvement. Strategic decisions should focus on diversification, ethical labor practices, cost reduction, and effective global risk management. By leveraging its strengths and addressing weaknesses, Nike can maintain its competitive position and capitalize on future opportunities.

(For matrices as appendices, please refer to additional tables attached.)

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