Speaking about the long-term financial goals of NIKE Inc., it should be stated that this company was always concerned about strong cash flow and sustainable profitable growth, as wells as it was always intended to perform well on the balance sheet. In this order, the general concept of long-term financial goals is quite clear. This approach allows the company to invest in new businesses as well as to create additional shareholder value. However, we also should not leave aside the features of certain time intervals. In this regard, officials of NIKE Inc. have established that key “2015 financial goals” are high single-digit total revenue growth (average annual growth rate) 15% -17% EPS growth (average annual growth rate); 25% return on investment; target life of 4 consecutive quarterly increase in nike air max dividends per share should be 25% of total expenditures range between -35% (Litzerald). In this aspect, the NIKE Inc. appears to be the company which knows the value of long term goals.
While thinking on the question “whether long-term goals are important for financial planning in NIKE Inc”., it should be clear that the company under the target is hard to be called drastically different from other representatives of reasonable and successful corporate business. To draw the lines between long ”“ term financial goals and financial planning, it would appropriate to refer to the general concept of the last of two notions. In this regard, financial planning can be defined as a kind of a process of framing objectives, policies, procedures, programs and budgets in regard to financial activities of a concern (U.a.). In fact, this process intended to ensure the main point of successful business running ”“ adequate financial and investment policies. It looks clear from offered definition the entire process of financial planning is directly tied to the concept of a “concern”. Herewith, the “concern” means long – term goals of a company. In this order financial goals of a long term prospect are not only important for planning process, they appear to be inherent and even determinative factor. In other words, while the financial planning serves as the firm basis of effective capital and human resources allocation, the long ”“ term goals are used as start point of the entire planning process. The most striking example of long term goals influence on financial planning can be addressed through the planning of capital requirements and business policies picking. In this aspect, the long term goals is the crucial factor to determine how much capital resources should be used during certain period of time, and in what way it would be done the best in purpose of outlined goals achievement. Dealing with the NIKE Inc. case, such interconnection can be traced through the part of publicly announced business strategy. Nike is worth emphasizing that growing partnerships with retailers to create more customer experience of different groups to promote the idea category in major markets. Nike wholesale business model has also been sustained as a major driver of long ”“ term growth, despite the 2015 NIKE retailers will continue to contribute to the total business for more than 80%. In order to establish and enhance the company’s global retail business, NIKE announced in next 5 years, 5-6 billion dollars invested to develop the business model to face the consumer and to help enhance the self and wholesalers of goods and sales capabilities (Litzerald).