Adidas Case Study

Moreover, the report also consists of the timeline, which points out the efforts of the corporation over the last fifteen years of disclosure and transparency. It should be noticed that report also includes an interview with the company’s VP Global Social and Environmental Affairs. (Ethicalperformance.com, 2015) He describes the past successes of the Adidas Group, explains the sustainability communication strategy, and talks about the potential goals of the corporations' sustainability agenda. Eventually, it is essential to point out that four pillars of the Adidas Group's strategy are people, product, planet, and partnership. (Adidas-group.com, 2015) First of all, the corporation aims to influence the lives of the workers and employees positively and provide the comfortable business presence for all if its communities. To be exact, in 2014, the corporation has remade their Code of Conduct for their workers. (Ethicalperformance.com, 2015) For example, they have

The highly recognized name brand—Nike— fails to notice the faults that are happening in factories that are violating a few disturbing rules. The company’s reputation has decreased due to demands and claims Nike; implying that they utilize sweatshops to produce more products at a lower pay. The company has been sued numerous times for abusing and exploiting their employees in factories for years. Another problem that Nike has faced throughout the years was making employees work in poor environments that affected the health of many— which contributed to being abused by the manager for not going to work. Nike distributes and sells merchandise of high quality for a high value. The company is giving the satisfaction of quality service to their

Adidas have both internal and external customers in their organisation, e.g. of internal customers to Adidas are Suppliers, workers, stakeholders etc. Whereas external customers are those people who help the organisation to meet its objectives who work for the organisation externally. For example Customers, government, market agencies etc. Adidas follow a market driven/ led business. Adidas give their resources in order to satisfy their customers.

Nike is a athletic apparel company that has been in and out of the spotlight because of some of its oversea practices that people have a social and ethical issue with. These oversea practices would be its manufacturing. Though Nike does not own their manufacturing plants, because they sublease the work out to independently owned manufactures, they are willingly working with companies that are ethically and morally wrong. Many people have stated that these independently owned factories are creating sweatshops. These sweatshops have practices that include underage workers, underpaid workers, and overall unethical treatment of workers. Nike is willingly participating with these companies to make a profit, but not to be socially responsible. The issues that conflict in this case is that Nike is a U.S. based company but all of its manufacturing and unethical acts take place overseas in Indonesia, Vietnam, China, and Thailand. Nike is supporting these unethical acts that are classified as illegal or morally wrong in the U.S. but not in these other countries. In these other countries there is a very low labor cost which means Nike can give employees next to nothing while they stuff their pockets making millions. The major issue that the case address is are these practices ethical and/or legal. Other sub-issues would be are other groups or individuals for or against sweatshop ethically or morally right? For example Andrew Young, was

serious, high performance, American brand capitalizing on the nature of basketball as a tough game that is most popular in the states. From the other side this association, in addition to the personification of the brand, it increased the brand awareness. Nike communicated this association through their TV ads that was a hit at their time in the states like the Jordan air ad that caught fire and increased their sales dramatically. In addition, one of the most important sources of Nike brand equity is the high perceived quality of the brand not only among athletes but also between the public. Although most of their market was the public that used their shoes just for

using the weights and costs of debt and equity. The formula used is: WACC = wdkd (1-T) + weke.

Apparel and shoe manufacturers continued to offload the more costly yet easily replicated part so their business models to concentrate on brand building, marketing, sales and attaining greater distribution channels globally. These are the pressures all apparel and shoe manufacturers face, and it is particularly challenging in the athletic show industry (Kynge, 2009). Adidas, Converse, Nike and Reebok have been outsourcing production of their shoes for in some cases nearly three decades. Nike was one of the leaders in this strategy, seeing to create a more efficient supply chain and also drop the labor and union costs of manufacturing in the U.S. (Boje, Khan, 2009). Adidas, Converse and Reebok have all followed Nike's lead, with Adidas benefitting from the fall-out generated when investigate reports showed Nike using child labor throughout Pakistan and Vietnam (Boje, Khan, 2009). All four of these companies share a common prioritization of manufacturing operations, yet none of them with the exception of Nike has a comprehensive Corporate Social Responsibility (CSR) program in place to ensure ethical compliance to global standards of outsourcing in their industry (Nike Investor Relations, 2012). The intent of this analysis is to compare and contrast the four companies mentioned and their outsourcing practices. Their reasons for choosing to outsource are very much the same; the industry is shrinking

Nike is a well renowned apparel company that ranks superior on a global scale. With that said Nike along with countless other companies in the apparel industry face numerous challenges regarding that of corporate social responsibility when it comes to their supply chains around the world. A major challenge regarding corporate social responsibility would be the manufacturers that are hired and contracted by these companies in the apparel industry. Essentially these manufacturers are being hired in foreign countries who are in turn adding to the poor working conditions due to the lack of regulation in these countries. For example “[25%-50%] of factories denies workers at least one day off in seven”, “employees work more than 60 hours per week” and “workers refusing overtime were punished” (p. 1). Ultimately, these quotes show how the manufacturing companies themselves were pushing the workers into these intense labor conditions. This is where the company itself faces the challenge and backlash essentially have to initiate change with the help of “engaging labor ministries, civil society, and competitors around the world to try to raise the bar…” (p. 2). Another major challenge faced would be the lack of reward towards these companies. The Vice President of Nike’s social responsibility Hannah Jones addresses this issue to the delegates at the Ethical Trading Initiative “consumers are not rewarding us for investments in improved social performance” (p. 2). Essentially these companies are investing large sums of money for better work environments in these countries which in turn adds another expense to the production cost with nothing in return.

At the moment Nike has the upper hand over other corporations allowing for significant economic advancements. Conversely, it is important that Nike does not only use these initiatives as advertising ploys but rather actually continues to make real change around the world. There is a significant amount of opportunity here for Nike to pressure other corporations and even governments into acting against climate change and towards better social conditions (JASP, 2016). Nevertheless, because of how much global influence Nike hold, they have the potential to do much more than that. The corporation could work with various organizations, academic programs and NGOs in order to do more research into what the most ideal conditions are and what kinds of needs need to be addressed to better the overall social, economic and environmental conditions in which the production processes is occurring (JASP, 2016). Furthermore, while Nike was inspired by ethnic consumers, so can it promote ethnic consumption to those who might not have originally considered these issues whilst purchasing these or even other commodities (JASP, 2016). The fear at the moment, however, is that Nike is only in it for the money. During the boycott of the 1990s, Nike could have avoided the crisis through acting sooner and recognizing the inequalities in their corporation though they chose instead to ignore their demands (Jackson and Schantz, 1993, 32). In fact, it was not until years later, when the longevity of the

Adidas is the leader of sporting footwear in Europe. On the global front, it ranks second, being that their products have markets in at least 200 countries around the world. Apart from footwear, today Adidas designs, manufactures and markets accessories and clothing related to various sporting activities. The parameters that are used in the analysis are namely; executive summary, short-term financial plans, existing capital expenditure, dividend policies, and recommendations.

It seems Adidas works to be transparent with the global community, they are striving towards meeting all customers’ needs, in all walks of life, while giving back to communities. They follow a corporate mission that reflects human resources, social and environmental affairs, and community affairs; thus, good corporate social responsibility

Choosing a Fortune 500 Company was not an easy task. The business world is so new to me and it will take me time to learn the significance of such companies. I decided to choose a company that I was both familiar and interested in. My goal is to get into sports marketing with a reputable company. Having played soccer through college and two years after Adidas is a company I am very familiar with. Additionally, TaylorMade is part of the Adidas Group. I am an avid golfer who refuses to play anything but TaylorMade and have a fair amount of knowledge about their company and products. Additionally, I am considering employment with the Adidas Group after completing of my MBA.

Adidas Group, as one of the world’s retail leaders in sportswear, has as primary target the sports participants, including high performance athletes, as well as non-athletes who are inspired by those at the highest level of their sport, and those that really love sports as part of their lives.

The aim of this report is to undertake a strategic analysis of Adidas.The Adidas strives to be the global leader in the sports goods industry with brands build on a passion for sports and sporting lifestyle, it sells products in virtually every country around the world.

adidas AG is a German sports apparel manufacturer, part of the adidas Group. It registered as adidas AG on 18 August 1949 (with lower-case lettering: "adidas"). The company was named after its founder, Adolf (Adi) Dassler, who started producing shoes in the 1920s in Herzogenaurach, near Nuremberg, with the help of his brother Rudolf Dassler who later formed rival shoe company PUMA AG. The company's clothing and shoe