FUNDAMENTALS OF MANAGEMENT

ASSIGNMENT-2

Strategic planning processADIDAS-ALL DAY I DREAM ABOUT SHOES

Inputs:

People:

Adidas claim that their people are crucial to his success. Achieving there goal to be the global leader in sporting industry wholly depends on the talents and engagement of their employees. They reward the staffs for their achievements. As employers they take responsibility to ensure health and safety to his people. They also look after their employees by promoting global mobility, helping staff achieve a healthy work-life balance, and offering access to a wide range of company sports activities.

Capital:

The company revenue for 2009 was listed at 10.38 billion and for 2008 figure at €10.80 billion. As a Group, ADIDAS target leading market positions in all markets where they compete. With almost 180 subsidiaries worldwide, they have prioritised investments based on those markets which offer the best medium- to long-term growth and profitability opportunities.

Goals:

Adidas vision is to enhance social and environmental performance in the company and the supply chain, thereby improving the lives of the people making their products. It strives to be the global leader in the sporting goods industry .

Company profile:

Purpose:

ADIDAS is a major german based sports apparel manufacturer and parent company of the Adidas Group, which consists of the reebox sportswear company taylor- made adidas golf company, and rockport. Besides sports footwear, the company also produces other products such

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as bags, shirts, watches, eyewear and other sports and clothing related goods. The company is the largest sportswear manufacturer in Europe and the second biggest sportswear manufacturer in the world .For over 80 years the adidas Group has been part of the world of sports offering sports footwear, apparel and accessories. Today, the adidas Group is a global leader in the sporting goods industry and offers a broad category of products.

Objectives:

The key objectives were to reinforce adidas position as an innovator and technologically strong marketer world wide. They utilized the 3G phone to connect with the football-mad populous.

Orientation of top managers:

Values:

The adidas group were:

Consumer focused Innovative and are design leaders Global organization Committed to continous strenghting of brands and products Dedicated to consitently delivering financial results.

Attitudes:

Consumers needs choice. Whether it is the athlete or the casual consumer searching for the next fashion trend,adidas is focussing to develop and create experiences that engage consumers in long-lasting relationships with their brands.

Preference:

Speed is the key to overcome competition. They are committed to meet the full range of customer and consumer needs which is most prefered, by ensuring product availability in the correct size and colour, providing technical innovations ,latest fashion product to the highest quality standards.

Direction of the company:

Adidas is directed towards continuously strengthening thier brands and products to improve the competitive position and financial performance.To become the global market leader in sporting good industry is thier objective.

Alternative strategies:

Adidas mission is to be the leading sports brand in the world, to achieve this, the brand’s unique product has to expanded to premium fashions from professional athletes. It allows adidas to exploit market opportunities,satisfy multiple consumer needs from various angles.It also reduces risks from one sector.

Evaluation choice of strategies:

In 2009, the adidas Group identified their alternatives and took the strategic decision to move from a single brand structure to a functional multi-brand structure for adidas and Reebok brands. This led to the creation of a Global Sales and increased the global image which helped them acheive their goal to become the global market leader.

Medium & short range planning:

Adidas aims at achieving the market leader position globally. It indulges into number of activities to promote its brand value. They develop strategies to achieve their short term objective of competing their rivals and long term goal of being the global market leader. Adidas commitment to innovation differentiate it from its competitors.

SWOT & TOWS ANALYSIS OF ADIDAS

SWOT Analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats inside a company. It identifies the internal and external factors that are favorable or unfavorable for business.

SWOT ANALYSIS OF ADIDASStrengths

•Good financial position•Effective Marketing Strategy•Market Leadership•Strong online presence•Strong brand•Strong international operations•Strong distribution chain

• Competitive pricing

Weakness• High cost structure• Over pricing• Low quality products/services• Limited product line Online customer service not helpful

Opportunities

•Change in consumer lifestyles•Available technological innovations•Entering new markets•Expand customer base •Expand product/service lines•Market Diversification•Merger or ACQUISITION

Threats cut throat competition from rival apparel

brand demand forecast for hot market item

•Competition from foreign markets•Competitor's actions•Change in consumer lifestyles\patterns•Growing power of customers to set the price•Growing power of suppliers to set the price•Financial slowdown•Increase in taxation•New competitors entering the market•Price war between competitors

TOWS ANALYSIS OF ADIDAS

MY opinion:

I agree with their strategy, that sales will increase by sponsoring to the world cup

Football being the most popular sport across the world is the prime focus for Adidas.

To surge a sales the strategy of adidas to endorse 12 national football teams will generate the revenues.

TOWSExternal

opportunitiesExternalThreat

InternalStrength

Bring in innovative products

Expand distribution line Being the market leader it

can get into Merger or acquisition.

Meet competition with advanced technology

Establishing strong brand image to avoid cut throat competition

Expand with the change in growth of customers

Internal weakness

• Develop products with different price levels

• Build strong online service

• Reduce competition by developing flexible product line

• Fluctuation in price and hire pricing can be avoided

• Quality products equal to competitors can be manufactured