09 Jul Discussion Board Reply

DBREPLIES

 

Instructions:

Each reply must be at least 150 words.  Replies mustinclude references to at least 2 sources, which may include professional,scholarly, or trade publications, or the course textbook or Bible.

 

Reply #1

 

2 days ago

Talon Greene 

Week 5

 

The COVID 19 pandemicchanged the way the world works forever in many ways. Fitness and fitnessapparel are perhaps among the most affected industries in the UnitedStates. Companies, such as the one I have chosen to examine UnderArmour, have been forced to rapidly adapt to the ‘new normal. Thereare many ways that Under Armour pivoted in order to continue to thrive inthe coming months and years. The first way is an investment into fitnesstechnology. In 2015 Under Armour invested heavily into fitness apps and trackerssuch as MyFitnessPal, MyMapRun among others. During the Pandemic, millionsof Americans were suddenly forced into staying in shape away from the gymmaking these apps more useful than ever before. According to  Ashley Mateo ofthe Wall Street Journal this way of working out is here to stay for the longterm. Mateo states that according to one study “59% of Americans dont plan to renew their gym memberships afterthe pandemic” (Mateo, 2021). With over half the country that previouslyhad gym memberships choosing not to return to their old workout habitsapps like these will continue to be a strong point for UnderArmour going forward.

The second major key for Under Armour going forward is theirrecent influx of celebrity endorsements. While Under Armour has began to gainground on Nike in recent years as far as athletic endorsement with athletessuch as Tom Brady, Bryce Harper and Stephan Curry all joining the Under Armourfamily none made quiet as big of an impact as one particular celebrityendorsement. In 2016 Under Armour partnered with former University of Miamicollege football star, turned wrestling legend, turned movie super start Dwayne’The Rock’ Johnson. According to Fashion Network, a clothing industrypublication,  “Johnson will playan integral role in the creation of a range of products including footwear,apparel and accessories, and he will have a major role in the promotion ofUnder Armours Connected Fitness platforms that recently debuted the UnderArmour HealthBox and Record applications” ( , 2016). The advantage of this is that accordingto USA today Celebrity endorsements are work a 4% increase in sales for largecompanies. This also does not take into account the massive social media-basedaudience Under Armour now reaches ( Stibel, 2017).  This endorsement should play into UnderArmour’s success going forward if they follow past trends.

Above all the advantage that Under Armour has is theirinnovation. From creating the ‘Heat Gear’ and ‘Cool Gear’ line, toreimagining basketball shoes Under Armour is always on the cuttingedge.  In fact it is their very mission statement “The idea that I can make something better was how our brand gotstarted. And it’s how we’re taking the next step in our industry today. From 3Dprinting to rapid prototyping, when you join us, youll be fully equipped withthe latest technology to experiment, push boundaries, and make somethingnew” (Under Armour, 2021).

References 

Mateo, A. (2021, January 22). AreGyms Dead? Why Home Workouts Are Here to Stay.The Wall Street Journal.https://www.wsj.com/articles/are-gyms-dead-why-home-workouts-are-here-to-stay-11611337770.

Stibel, J. (2017, November3). Brain science: Here’s why you can’t resist celebrity endorsements. USA Today. https://www.usatoday.com/story/money/columnist/2017/11/03/brain-science-heres-why-you-cant-resist-celebrity-endorsements/827171001/.

Under Armour. (n.d.). Innovationat Under Armour, Inc. https://careers.underarmour.com/innovation.

US, F. N. (2016, January21). Under Armour officially announces partnership with Dwayne Johnson. FashionNetwork.com.https://us.fashionnetwork.com/news/under-armour-officially-announces-partnership-with-dwayne-johnson,621088.html.

 

Reply#2

2 days ago

Brittney Dickerson 

Forum 2 

 

Forum 2

BrittneyDickerson

School ofBusiness, Liberty University

ACCT370-B04: Financial Statement Analysis

ProfessorNeely

June 21,2021

 

 

When wechoose to start a business or purchase a business that is already started, wemust understand that there are risks that come with the investment. Differentvariants change from year to year and that could make or break a business,depending on how well established and prepared it is. Borrowing money foradditional investments may be affected, hiring employees to grow, purchasingproperty to expand, and much more can change as time goes on and the economychanges. Let us look at some key factors that may impact our companysfinancial position over time.

Acompetitive environment can heavily impact businesses in every area.Competitors expanding their own marketing efforts or offering additionalproducts could eat into your customer base (Jensen, 2020). When you have abusiness in a large area that sells coffee products and other restaurants inthe region start offering the same coffee products at a different price, thiscould negatively impact what you have currently going on. As a business owner,you must be prepared for competition to come in and how to adapt and overcomesaid factors. 

Apandemic, like COVID-19, is a large factor that can impact a companysfinancial position. As production businesses are shutting down, it may make itdifficult for a business owner to get the materials they need to do their job.Companies with reduced or idle production capacity may be unable to allocateoverhead costs to inventory as they usually do (Curttwright, 2020). When youcannot make your products, you cannot sell your products. And when you cannotmake them, you cannot find the money to pay for more materials needed. It is anever ending circle that can put a business in a huge bind long-term.

Ourpolitical leaders can impact a companys financial position as well. Differentpolitical parties might campaign on a platform with promises of lowering taxesfor big businesses, while the opposing party might by vying for middle-classvoters (Guest et al, 2018). Based on political party beliefs and what they aresaying during their campaigns, this may impact a business in a great way whenthinking about taxes that will be due. If taxes are raised, this may prevent abusiness from paying them.

When abusiness wants to expand, this can have a temporary setback on net income andrevenue. A company with a high amount of debt can become over-leveraged, meaningthey have high fixed costs relating to financing (OFarrell, 2019). Return oninvestment, in general, means that we have to spend money to make money.Expanding a business may produce more debt, but only temporarily.

 

 

References:

Jensen, K. (2020). FactorsConsidered in Financial Forecasting. From 

Curttwright. (2020). 6 Ways theCOVID-19 Pandemic Could Affect Financial Reporting for Operating Companies |Cohen & Company. From 

 Ways Politics Impact Business-Dynamic Business. (2018). From 

OFarrell, R. (2019). CapitalFinancing Options for a Project. From