For business access, the managers should consider the best measures that can generate option value that bring profits and increase business performance. Various companies use various actions depending on the type of management and the types of goods the business deals in (Tantalo, Caterina, and Richard, 322). Nike, for instance, that deals in supplying sports footwear and apparel to various football clubs and teams, requires flexibility in their operation to enable them to increase their stock value. The company should consider factors such as goals and benefits of the firm, resources that are available and capabilities to utilise such funds, the structure of the business and the environment in which the company operates in.

For Nike to create option value, it must have appropriate goals that cater to the interest of the owners, stakeholders and the society at large. To achieve these goals the business should ensure that it explores the tools of financial analysis that allows for the performance appraisal and target setting of the company (Evans, Lewis, and Graeme, 23). The firm should also consider that it has appropriate values such as good mission and visions statement that makes the business attractive to customers. As such, Nike requires a change in its mission statement to ensure that it put customers’ interest first.

The firm should also ensure that it has the capabilities to utilise the available resources. To make this possible, employees motivation should be put first to allow them to exert more effort in their duties for the accomplishment of their targets (Rao et al., 187). The structure of the firm should also be organised in such a way that allows for appropriate and effective management of the firm. It should define the type of leadership that the company have and how it is coordinated among the employees. Employees should be made part of the firm to allow them to work better. Further, they should get better allowances and pay as a way of motivation for the exertion of many efforts in their duties.

Lastly, the business should have strategies that enable it to survive well in the company. Due to increased competition, the firm should have principles that will allow it to have a competitive advantage over its competitors (Evans, Lewis, and Graeme, 26). As such, the company should avoid underestimating the free resources value but instead utilise them to improve their profit margin. Free resources give the company a way to create added value hence increasing companies abilities to respond to customers’ needs. The environment in which Nike operates requires them to have proximity to customers so they can know the current trends in the market. As a result, they should do intensive research through the internet to enable them to remain relevant in the market.

In conclusion, Nike has various factors to consider in ensuring that they create option value in the business. Such factors include considering the goals and the benefits that the firm has. In such way, the firm should have a change in its mission and visions statement that makes it have customers at heart. The structure of the firm should also be at the interest to ensure the company have efficient and effective management and leadership. Available resource should also be utilised well in such a way that allows the firm to get much profit that has much value. Since the company exist in the business environment with high competition, it should work out to have ways to ensure it has a competitive advantage over its competitors

Work Cited

Tantalo, Caterina, and Richard L. Priem. “Value creation through stakeholder synergy.” Strategic Management Journal 37.2 (2016): 314-329.

Rao, Pingui, Heng Yue, and Xin Zhou. “Return predictability and the real option value of segments.” Review of Accounting Studies 23.1 (2018): 167-199.

Evans, Lewis, and Graeme Guthrie. “Commodity prices and the option value of storage.” Real options in energy and commodity markets. 2017. 3-29.

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