BUS 421-OL-ASSIGNMENT #4-JIMMY MORGAN

BUS 421-OL-ASSIGNMENT #4-JIMMY MORGAN - Jimmy Morgan...

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Jimmy Morgan, Business Policy, BUS -421-OL (Dec 2010 thru Feb 2011) Case Study Assignment 4: Adidas in 2008: Has Corporate Restructuring Increased Shareholder Value?, C-332 1. What is Adidas's corporate strategy? Was there a common strategic approach used in managing the company's lineup of sporting goods businesses prior to its 2005–2006 restructuring? Has the corporate strategy changed with restructuring? According to Gamble, J., Strickland, A.J., Thompson, A. (2010), “Adidas’ corporate strategy had been focused on making acquisitions that would allow it to surpass Nike as the leader of the global sporting goods industry” (p. C-332). According to Adidas Group (2010): Our goal (strategy) as a Group is to lead the sporting goods industry with brands built upon a passion for sports and a sporting lifestyle. Inspired by our heritage, we know that a profound understanding of the consumer and customer is essential to achieving this goal. To anticipate and respond to their needs, we continuously strive to create a culture of innovation, challenging ourselves to break with convention and embrace change. By harnessing this culture, we push the boundaries of products, services and processes to strengthen our competitiveness and maximise the Group’s operational and financial performance. This, in turn, will drive long-term value creation for our shareholders (p. 1). I believe, based on our text, there corporate strategy is to be a leader in the sporting goods industry, reaching out to athletes to provide the best products that enhance their performance and meeting the needs of the consumers with their passion in the active sporting lifestyle, they seek. Adidas strives to penetrate the market by gaining market share in every market that they compete in, they also are expanding into new markets by developing products that match the needs and wants of the consumers in different markets. Additionally, Adidas strives to be on top in any market it competes in and wants to lead the industry of sporting goods with innovation and design. I think there was a common strategic approach prior to its 2005-2006 restructuring. Adidas was trying to regain, if not the number one, the number two position in the sporting goods industry by branching out and investing in many different areas of the sporting goods industry instead of staying close to their main business, which was selling athletic footwear. When Adidas acquired Salomon, TaylorMade Golf, and Mavic, these sporting industries did not match their main business strategies or goals. The acquisition of these companies expanded Adidas in new markets but had nothing really in common with what Adidas was operating as, which was the athletic shoe industry. Your Newfragrance.com writes:
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This note was uploaded on 03/03/2011 for the course BUS 421-OL taught by Professor Lonneyness during the Fall '11 term at Thomas Edison State.

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BUS 421-OL-ASSIGNMENT #4-JIMMY MORGAN - Jimmy Morgan...

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