Suppose your boss want to do a long-term investment. A report to recommend one multi-national company to him/her. It included the background of the company, the recent stock price history, its worldwide operation policy, its accounting strategy to deal with changes in currency exchange rate and its internal financing policy.
Table of Contents
1 History and background of Adidas group
2 History of the stock price and merger
3 Worldwide operation policy
3.1 Speed
3.2 Cities
3.3 Open-Source
4 Why will the long term investment gain profits?
4.1 Accelerated growth
4.2 Sponsoring ship in football
5 Conclusion
Objectives and Topics
This paper examines the corporate evolution, financial development, and strategic operational framework of the Adidas Group, focusing on how the company leverages long-term investment strategies and global marketing to secure its market position.
- Historical development and corporate background of the Adidas Group
- Analysis of stock market performance and past merger activities
- Strategic implementation of the "Creating the New" business plan
- The impact of global operations (Speed, Cities, Open-Source) on growth
- The role of high-profile sports sponsorship in brand profitability
Excerpt from the Book
3 Worldwide operation policy
In 2015 Adidas announced their strategy and business plan for the following years until 2020. The motto of the corporation is ‘Creating the New’, which will focus on establishing desire of the brand. Net sales and profit are expected to grow significantly. Compare to the forecast of 2015, the net sale will increase with an average of a high one-digit percentage, while the net profit will increase about 15% per year.
The new business plan for the 7 years consists three aspects: Speed, Cities, and Open-Source.
3.1 Speed
Since Adidas NEO, the Adidas Group has set new standards in market launch times. The business model allowed to shorten the production times significantly. One of the results is the possibility to produce within a season. Based on the successes, they will continue to expand on the subject of speed.
At the same time, the Adidas Group will raise the net sale over 60% with self-controlled sales areas. In addition, they want to reach the goal of implementing over € 2 billion in the department Omni-Distribution-Channel in the eCommerce business until 2020. Moreover, the company will continue to develop its production capabilities in order to offer consumers more opportunities for product personalization.
Herbert Hainer, the former CEO of Adidas group, said that we are living in a rapid change world. Only the new things are relevant for the consumer. That is one of the reasons why they constantly work on new projects to create something new for the customer. Furthermore, they have to reinvent themselves to be the leader of the change process in their sector.
Summary of Chapters
1 History and background of Adidas group: Provides an overview of the company's origins, the split between the Dassler brothers, and the development of the brand into a global sports leader.
2 History of the stock price and merger: Details the financial history of Adidas, including its transition to a joint-stock company, stock market performance, and past corporate acquisitions.
3 Worldwide operation policy: Explains the "Creating the New" strategy, focusing on operational pillars like production speed, urban market presence, and open-source collaboration.
4 Why will the long term investment gain profits?: Analyzes the drivers of long-term profitability, specifically focusing on growth acceleration and the return on investment from extensive football sponsorships.
5 Conclusion: Summarizes the company's future outlook, highlighting the success of recent strategies and their ongoing influence on the global sportswear market.
Keywords
Adidas, Sportswear, Business Strategy, Stock Market, Corporate History, Sponsorship, Football, Growth, eCommerce, Supply Chain, Brand Management, Market Launch, Production, Retail, Financial Performance.
Frequently Asked Questions
What is the primary focus of this paper?
The paper examines the business evolution, financial trajectory, and operational strategies of the Adidas Group, specifically how it sustains long-term market leadership.
What are the core pillars of the Adidas business strategy?
The core pillars discussed are Speed (market launch times), Cities (metropolitan-focused growth), and Open-Source (collaboration with partners and athletes).
What is the main objective of the "Creating the New" strategy?
The objective is to establish greater desire for the brand while achieving significant net sales and profit growth by the year 2020.
Which scientific approach does the author use?
The author uses a descriptive and analytical case study approach, utilizing historical data, financial records, and industry reports to evaluate company performance.
What does the main body of the paper cover?
The main body covers historical development, stock price history, the "Creating the New" strategy, and the impact of sports sponsorship on profitability.
Which keywords define this work?
The work is defined by terms such as Adidas, Corporate History, Business Strategy, Sports Sponsorship, Stock Performance, and Operational Growth.
How does the company define the "Speed" aspect of their operations?
Speed refers to shortening production and market launch times, enabling the brand to react quickly to consumer trends within a single season.
What role does sponsorship play in the profitability of Adidas?
Sponsorship, particularly in football, acts as a critical investment that enhances brand visibility and drives sales by associating the brand with elite competitions and high-profile athletes.
Why is the metropolitan focus important for Adidas?
The strategy focuses on six key global cities (like New York, Shanghai, and Tokyo) because they drive a significant portion of global GDP and influence international fashion and sports trends.
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- Long Nguyen (Autor:in), 2017, Long-term investment: ADIDAS GROUP. Financing and controlling in the internationalisation process, München, GRIN Verlag, https://www.grin.com/document/507420
