Academic Master

Business and Finance

Implementation Plan for Adidas

The history of ADIDAS IS 40 years. Therefore, it carries all the experience that enabled them to establish their quality brand name. As of today, Adidas still manufactures their products in high quality by using the raw materials with the highest quality; this is mainly due to the traditional heritage of the founder.

1. Objectives

1.1 Corporate Strategy

Everything we do is rooted in sport. With sports playing an increasingly important role in more and more people’s lives, on and off the field of play, we operate in a highly attractive industry. Through our authentic sports brands, we push the boundaries of products, experiences and services to drive brand desire and capitalize on the growth opportunities in sports as well as in sports-inspired casual and activewear.

1.2 Adidas’ Core Belief: Through Sport, We Have The Power To Change Lives

The importance of sport, however, goes far beyond that. Sport is central to every culture and society and is core to an individual’s health and happiness. Therefore, we believe that through sport, we have the power to change lives.

1.3 MISSION: To Be The Best Sports Company In The World

It is our mission to be the best sports company in the world. Best means that we design, build and sell the best sports products in the world, with the best service and experience, and that we do so in a sustainable way. Best is what our consumers, athletes, teams, partners, media and shareholders will say about us. We are confident that we will see improvements with regard to market share, leadership and profitability once people are saying that we are the best.

1.4 Strategic Business Plan: Creating The New

‘Creating the New’ is our strategic business plan until the year 2020. Our ambition to further drive top-and-bottom-line growth by significantly increasing brand desirability builds the core of Creating the New. The strategic business plan therefore focuses on our brands as they connect and engage with our consumers. This consumer-centric approach is driving significant improvements in the desirability of our brands and has increased our relevance with consumers around the globe. As a result, we are gaining market share in those categories, markets and cities that we have identified as future growth drivers for our company.

https://www.adidas-group.com/media/filer_public_thumbnails/filer_public/a2/b8/a2b8733f-79d2-4729-8c8a-30aadad09e06/ctn_graphic.jpg__686x0_q85_crop-smart_subsampling-2.jpg

2. Functional Tactics

Functional activities are the primary source of flourishment for any organization. Adidas has complete awareness and realization of the Importance of these factors.

2.1.Marketing Investments: Mean More By Doing Less

The Adidas brand is focused on creating inspirational and innovative marketing concepts that drive consumer advocacy and build brand equity. As a result of this, Adidas is committed towards continued.

increase in marketing investments.Previously it had spent most of its budget on partnership assets. While the brand historically spent almost half of its marketing investments on partnership assets, with the remainder on brand marketing activities such as digital, advertising, point- of-sale and grassroots activations, we will decrease the ratio of marketing investments spent on promotion partnerships. This will be achieved by focusing on three priorities:

  • Reason to believe
  • Reason to buy
  • Sports communities

2.2 Human Resource

At Adidas, it is believed that people are the key to success. Their performance, well-being and knowledge have a significant impact on brand desire, consumer satisfaction and, ultimately, our financial performance.

A creative climate to make a difference

It is our goal to develop a culture that cherishes creativity, collaboration and confidence – three behaviours we deem crucial to the successful delivery of our corporate strategy.

Bring forward fresh and diverse perspectives.

  • Represent and live the diversity of our consumers in our people.
  • Inspire and nurture role model leadership.

Role models who inspire us

Meaningful reasons to join and stay

  • Attract and retain great talent by offering personal experiences, choices and individual careers.
  • Culture
  • Diversity and inclusion
  • Role model leadership
  • Attraction and retention of the right talents

People Strategy

Defines and inspires the right organizational culture for ‘Creating the New.’

2.3 Research and Development

Continuous investment in research and development ensures that we remain innovative and distinct from competitors.

Corporate Risks Overview 101

Assessment Of Financial Outlook

3. Action Items

3.1 Strategic Choices

  • Our business plan is built around three strategic choices that will enable us to focus even more on our consumers:
  • Speed – How we deliver: Putting our consumers at the heart of everything we do and serving them in the best possible way means that we need to ensure that they always find fresh and desirable products where and when they want them. We will become the first true fast sports company.
  • Cities – Where we deliver: Urbanization continues to be a global megatrend. Most of the global population lives in cities. Cities are shaping global trends and consumers’ perceptions, perspectives and buying decisions. We have identified six key cities in which we want to over-proportionally grow share of mind, share of market and share of trend: London, Los Angeles, New York, Paris, Shanghai and Tokyo.
  • Open Source – How we create: This is all about collaboration and innovation. About learning and sharing. We are opening the doors of our brands, inviting athletes, consumers and partners to co-create the future of sport and sports culture with us.

4. Milestones and Deadlines

The four pillars of the Adidas Group’s strategy are:

  • People: We positively influence the lives of our employees, factory workers and people living in the communities where we have a business presence.
  • Product: We find better ways to create our products – mainly through innovation, increased use of more sustainable materials, and efficiency.
  • Planet: We reduce the environmental footprint of both our own operations and our suppliers’ factories.
  • Partnership: We engage with critical stakeholders and collaborate with partners to improve our industry.

5. Recommend Any Organizational Change Management Strategies That May Enhance Successful Implementation.

Adidas is not simply a retro brand reworking old models. Rather, it uses its capabilities alongside insights into consumer behaviour to create contemporary and innovative products. Embracing its history doesn’t mean being limited by it. It means being innovative in ways that are in line with the capabilities that were developed from the beginning.

1. Redefine Cultural Values

This change management strategy is based on the underlying assumption that people, as social beings, want to “fit in” and “go along” with cultural norms and values. Adidas is already focusing on redefining culture and should continue to do so.

2. Shift the Burden of Change

Although people are often quick to oppose change, especially change they view as undesirable or disruptive, they are often even quicker to adapt to new environments. Organizations can take advantage of this adaptability by creating a new structure — complete with new processes, workflows, and values — and gradually transfer employees from the old one.

3. Recruit Champions of Change

Radical change is often met with a high degree of resistance, but the odds of success can be improved if the voices championing change belong to workers and not solely upper management.

6. Develop Key Success Factors, Budget, and Forecasted Financials, Including a Break-Even Chart

2018 2017
Net revenue 1709 1430
Total expenses 2282 2170
Net income 1424 549
Earnings per share 8.46 7.05

7. Create a Risk Management Plan, Including Contingency Plans for the Identified Risks

Risk management monitoring and evaluation

Risks should be prioritized according to their impact ( as stated in the table above). They should be dealt with according to that in order for risks to be managed effectively.

References

Strategic Evaluation. 2019. Strategic Evaluation for ADIDAS – Strategic Evaluation. [ONLINE] Available at: https://audiswot.wordpress.com/2016/04/28/strategic-evaluation-for-adidas/. [Accessed 12 June 2019].

Ericwondra(2013), Nike vs. Adidas: Internet Marketing. Available from: https://ericwondra.wordpress.com/2013/02/26/nike-vs-adidas-internet-marketing/ [Accessed on March 15]

Marketing91 (2010), SWOT analysis, Available from: http://www.marketing91.com/adidas-swot-analysis/ [Accessed on February 20].

Strategic Evaluation . 2019. Strategic Evaluation for ADIDAS – Strategic Evaluation . [ONLINE] Available at: https://audiswot.wordpress.com/2016/04/28/strategic-evaluation-for-adidas/. [Accessed 12 June 2019].

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