Adidas Economics

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[pic][pic] [pic] Economics of Adidas by Georgi Kolev Sem03 2011 Table of Contents: 1. Traditional organization forms of a company and kinds of risks involved in each of the different forms. 3 2. Factors in the economic environment influencing the business of Adidas© 4 3. Adidas© and Porter’s 5 Forces model. 5 -3.1 Major factors from each force and how they influence the industry. 5 1. Traditional organization forms of a company and kinds of risks involved in each of the different forms. Organization of different companies is always different. It usually depends on the size of the firm and could be one of the following - U form (unitary form), M Form (multidivisional form), Flat organization, H-form (Holding…show more content…
It is good to keep in mind that even though one company may be a holding the smaller companies within it usually maintain their right to make strategic decisions. Possible problems can be the differences that the parent could have opposed to the interests of the controlled companies (holdings). 2. Factors in the economic environment influencing the business of Adidas© Economic factors are one of the major influences on a company’s success and the social, technological, environmental, ethical and legal factors could all interfere with the operations of companies in different industries in one way or the other. In the case of Adidas it is obvious that the different markets the company is positioning itself into are creating a relevant amount of economic factors that the company has to assess on a regular basis. Political factors Athletic companies are a major distributor of clothing and accessories in every country and it is obvious that they are affected by laws and political tensions in different countries. Adidas is a major part of the oligopolistic market of athletic apparel in world scale together with other brands like Nike©, Puma© and Fila©. National and international tax policies, employment laws, trade restrictions and regulations have major effect on the company operation. Microeconomic factors The sports industry is an oligopolistic market and the competition is highly competitive. Rivals to

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