Pest Swot Analysis of Adidas Essay Example

Pest Swot Analysis of Adidas Essay Lopito Jan 25, 2008 Addidas- You are consultant of the company. PEST/SWOT etc Introduction Adidas is a company that manufactures shoes and sport apparel. The founder is Adolf Dassler who is German. The name created by combination of the name and surname Adi Dassler, who started producing shoes in 1920s with the help of his brother Rudolf Dassler. That make costumer, to recognize Adidas is three parallel stripes of the same color. Slogan: â€Å"IMPOSSIBLE IS NOTHING† 1. History 1949-2005 Due to the death of Adolf’s son (Horst Dassler), the Company was bought in 1990 by Bernard Tapie. Back then Tapie was specialist of rescuing bankrupt companies. Next step was to change the place of production to Asia and make a promotion campaign by using a famous person as Madonna (famous singer). In 1992 economical problems lead Tapi to sell Adidas to Lyonnais bank. Lyonnais sold Adidas to Robert Louis-Dreyfus who was also the president of the Olympique de Marseille football team. In 1997, Adidas AG acquired the Salomon Group, and its corporate name was changed to Adidas-Salomon AG. Seven years later, top English fashion designer Stella McCartney launched a joint-venture line with Adidas. This line was a sports performance collection for women called Adidas by Stella McCartney. After 2 years, Adidas introduced the Adidas 1, the first ever production shoe to utilize a microprocessor. In August 2005, Adidas bought rival Reebok. At the same time sales had been closer to those of Nike in North America. The acquisition of Reebok would also allow Adidas to compete with Nike worldwide as the number two athletic shoemaker in the world. We will write a custom essay sample on Pest Swot Analysis of Adidas specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Pest Swot Analysis of Adidas specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Pest Swot Analysis of Adidas specifically for you FOR ONLY $16.38 $13.9/page Hire Writer Three months later Adidas released a new version of the Adidas 1, make it better, stronger and faster. On April 11 2006, Adidas announced an 11-year deal to become the official NBA apparel provider. 2. Products Adidas manufactures anything related to sport, like shoes, clothes, watches, balls, Sunglasses, Protective Equipment, etc. You can purchase Adidas almost anywhere. Except original stores that placed in every city in every country; you can find them also in super market as perfume shower gel etc, or in jewel store as watches. The pricing for per of shoe fluctuate 60 to 250 Euros, High price for most people; justifiably for High quality materials that company use. †¢PLANING Mission Statement â€Å"Our mission is to become the best sports brand in the world. To that end, we will never equate quantity with quality. Our founder Adi Dassler was passionate about sports. For Adi, the athlete came first. He gave those on the field, the court and the track the unexpected and the little differences that made them more comfortable and improved performance. This is our legacy. This is what the brand stands for. This will never change. † Vision Passion for sport. This is adidas. We consistently bring our passion to every single sport, wherever and whenever it is played. Whether its football in the park or the 100 meters at the Olympics we have been there, we are there now, and we will always be there. Our dream is to bring our passion for sport, the athlete and the product, to anyone who comes into contact with adidas. Objectives We are innovation and design leaders who seek to help athletes of all skill levels achieve peak performance with every product we bring to the market. We are a global organization that is socially and environmentally responsible, creative and financially rewarding for our employees and shareholders. We are committed to continuously strengthening our brands and products to improve our competitive position and financial performance. In the medium term, we will extend our leading market position in Europe, expand our share of the US footwear market and be the fastest growing major sporting goods supplier in Asia and Latin America. The resulting top-line growth, together with strict cost control and working capital improvements, will drive over-proportionate earnings growth. Decision-making style: Centralized / programmed S. W. O. T. Analysis Strengths †¢In many invents is the biggest sponsor †¢Strong management team †¢Brand recognition and reputation †¢Diversity and variety in products offered on the web (footwear, apparel, sporting equipment, etc. ) †¢Strong control over its own distribution channel †¢No bad reputation like child labor or environment pollution †¢In the Soccer industry, Adidas has a stronghold Weaknesses †¢High prices in some products †¢E-commerce is limited to USA The direct sale to consumers is creating conflicts with its own resellers †¢Online customer service not helpful or easy to find Opportunities †¢Increase female participation in athletics â€Å"Adidas by Stella McCartney† †¢Collaborate with other online retailers to offer Adidas products †¢Possibility of outsourcing the web development and e-commerce to a third party developer Threats †¢Nikes strong reputation in the footwear and apparel industry †¢Negative image created by the sponsored athletes (i. e. Kobe Bryant and his sexual assault case) †¢Increase in the Price of Raw materials Continuing challenges in import/export duties PEST Analysis Political Adidas policy is to control and monitor hazardous substance to protect human health and environment one of those is to eliminate PVC making progress in finding substitutes like polyurethane, ethyl vinyl, silicones thermoplastic rubber. Adidas also provide training sessions on employment standards and HR systems, health and safety is important for the company. Establishing teams to manage and monitor SARS in Asia factory, washing stations, disinfectant units. Finally Adidas protects and supports the rights of its employees by following all the current employment laws. Economical As a multinational company adidas helps countries to decrease unemployment by increasing every year the number of employees. The Industrial Production Growth Rate in Germany was 1% in 2001-3, 2004 become 1. 7%. Adidas is a reason of this increase Because of the big sponsorship in 2004 Olympic Games. As exporting to Europe is not too expensive as it was before, Europe since 2002 has own money (euro) and the borders are not so tight. Labor salary is high in Germany and France but not so expensive in China (Suzhou). This is the reason that most of factories located in Asia. Social Adidas products declare in any raise, age, religion, and lifestyle, always in fashion with special design in any of product. Focus in people who like sports and athletes, almost everybody can purchase adidas products. Technology Adidas join into technology by make up the world’s first â€Å"smart shoe†, adding a microchip inside the shoe and wireless mp3 player. Also using hot melt system of the production that is environmentally safe, using heat-activated adhesives. The packaging that company use, are suitable for transportation over long distances, humid conditions and extreme temperature changes and use recycled paper and other environmentally-friendly packaging materials. As many competitors that Adidas has, the external environment can’t be no other by dynamic. BCG Matrix Apparel Watches Footwear Eyewear Strategy Formulation By created a collection for women called Adidas by Stella McCartney† more women prefer to buy adidas, also the technologies that add in shoe and watches. The price fluctuant lower to higher to declare most of the people. Miss Eliot (famous singer) promotes adidas. Furthermore it lets customers know that adidas care about environment and doesn’t have sweatshops. Life Cycle †¢ORGANIZING Organizational Chart Adidas is a mechanistic organization. As a large, international organization with thousand of employees, oddly has organic elements by giving opportunity to employees to express their thoughts and opinion as explain above. The company puts many targets that need team work; conclude that Adidas has task culture. Communication channels Adidas emphasizes a lot on the communication channels. It supports that creating effective communication channels through the regions at Liaison Office (LO) and factory level is a constant challenge. Adidas internet-based ‘Ask the Management’ forum gives employees throughout the regions an opportunity to raise concerns and post questions to top management. Due to the fact that there is full and open communication at work employees are most highly motivated and make their greatest contribution to the business. The existence of the plenty flow of information and ideas among employees develop productivity and minimize confusion, duplication, and unproductive conflict. Employees The welfare of the employees is significant for Adidas family. Adidas identified that in order to achieving the goal to be the global leader in the sporting goods industry depends on the talents, enthusiasm and dedication of the employees. In order to success their satisfaction Adidas uses various methods. Some of these are: †¢organize transport to our perations centers †¢provide medical insurance for staff located in different cities †¢improve the housing accumulation fund and social retirement fund coverage †¢introduce flexible working hours in the LO †¢provide annual performance bonus for eligible employees †¢Make internal agreements on the use of internet, (mobile) phone and E-mail, on reintegration of employees coming back from parental leave, and on on-call service †¢Support th e existence of formal work council, etc. Continuous training is very important. This is way numerous seminars are continuously organized regarding all the levels of employment. As it is mentioned before, Adidas believes that employees and their talents are critical to the continuing commercial success. For this reason it indentified the need to create HR strategies that could be implemented globally. Adidas created a Global Salary Management System which responsibility is to motivate employees through different ways of remuneration and through offering various attractive compensation systems. Type of employees/ Skills Adidas as a large international company occupies thousand of employees of different ethics, cultures, and race. Due to the existence of the HR department the potential problems are eliminated. As Adidas has to cover many different job positions, the skills that are demanded are various. HR department recruits both low and high skilled employees depending on each job description. Diversity exists in all maters because there are employees of different age, gender, race, nationality and religion. †¢LEADING Board of Directors Adidas has executive and supervisory board. The executive board is composed of four members who reflect the diversity and internationality of the Group. Supervisory board made by six members that representing the shareholders and six members that representing the employees Leadership style As Adidas let to understand, support employees; taking in consideration their opinions, should be Democratic style. On the other hand, a big company like Adidas can’t be only democratic, should use and authoritarian style too. It depends in what situations have to deal with. †¢CONTROLING Adidas strategy emphasized Total Quality Management (TQM), supported by integrated software systems and code-related labor practices as devices used to reduce unit costs. Monthly monitoring of machine usage and waste reduction, machine leasing and sharing across the five components that comprise the group and a more transparent purchasing system also helped to increase recent performance. As consultant of the company I assume that Adidas after so many years is still in the second place in sports sales. The mission statement declares that our goal is to become the best sports brand in the world. Our slogan is â€Å"impossible is nothing†, imagine how effective will be if achieve the first place of sales. Then our slogan will be meaningful, and powerful. Now impossible is nothing, is the microprocessor and a wireless mp3 player in a shoe. The slogan will be general and not specific. To achieve our mission statement should inform people about the actions that we take against pollution and child laboring. How a company like Adidas, which everything works fine; care about labors and with healthy reputation still in second place? In my opinion marketing department should keep more inform the stakeholders and make more sophisticated advertisements to attract customers. It was a good move to be sponsor in Olympics of 2004, but should be always â€Å"up to date† by sponsorship, advertisements TV/streets etc. To let people, understand that Adidas have power and budget. And finally, we have to find what Nikes has that we don’t? Nike should be in third or fourth place, but still in first? Why, with so bad reputation? What is this that makes customers loyal to Nike? Solve these questions and develop it. Then the first place is ours!

The Overall Effects of Cultural Diversity in the Hospitality Industry

The Overall Effects of Cultural Diversity in the Hospitality Industry Introduction Diversity basically refers to the various differences existing amongst people of diverse origin. Cultural diversity on the other hand refers to the various cultural differences existing between people. The differences range from language, dressing, traditional values, religion, and societal interactions with the environment (Jan 5-21).Advertising We will write a custom report sample on The Overall Effects of Cultural Diversity in the Hospitality Industry specifically for you for only $16.05 $11/page Learn More Much attention need to be given the various dimensions of diversity which include secondary issues such as effects on communication style, religious practices, relationships, traditional customs and appearance (Gong 5-59). The report focuses on analyzing the overall effects of cultural diversity in the hospitality industry. The nature of the industry’s workplaces and the way they deal with the issues concerning management of cultura l diversity. The report further reveals benefits as well as challenges facing culturally diverse workforce within the rich hospitality industry. There are also recommendations which could be of help to management team. The hospitality industry is known to fall under the category of service industries. This shows that the industry attracts people from diverse origins including those working as cleaners as well as waiters amongst others. Their services are key to business delivery within the industry (Gong 5-59). Hospitality industry depend more so on culturally diverse workforce. This could be attributed to globalization which has been a driving force behind corporate strategic planning within the industry. The essence on globalization has brought lots of multicultural challenges in management and employment sector within the industry. This has brought about the challenge on how to maximize the contributions of each employee within the working team irrespective of the existing cultur al differences. With the rapid improvement in economic development, the hospitality industry has experienced international expansion making dynamic progress within various regions. Owing to the increased market share, the industry requires best talents within the hospitality industry capable of cooperating with people of different cultures and at the same time helps workers from different countries overcome cultural barriers (Seyed-Mahmoud 521-531).Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Appropriate actions should be taken by the hospitality industry for the purposes of coping with the challenge. There should be provision of right measures such as incorporating language training facilities for the purposes of overcoming communication barriers. Recruitment and training program within the industry ensures creation of talented internationally mobile people capable of occupy ing management positions within the international market. Employee sensitivity through cultural diversity management of training needs requires appropriate design and attention (Seyed-Mahmoud 521-531). Benefits There are numerous benefits resulting from management of cultural diversity which include; innovative abilities, competitiveness and transfer of knowledge to the various minority groups. The process also enables development of better talents which reduces labour costs and at the same time widens business relations through broad supply base. Managing cultural diversity is also beneficial in enhancing corporate image of various companies and at the same time, Companies are enabled to provide effective marketing and product strategies owing to new business innovations. On the other hand multicultural backgrounds ensure provision of more people with improved innovation enabling provision of new ideas and skills. This requires employers to understand and appreciate the different w ays of viewing the world through readiness to present more resolutions capable of accommodating every aspect of business problems. There is always possibility on the fact that diversified employee groups reveal more efficiency in performance in the long run. The results being attributed to the increased level of creativity and novelty owing to shared diverse perspectives, views and experiences (Gong 5-59). Managing cultural diversity is also helpful in the process of knowledge transfer. The differences portrayed owing to various cultural backgrounds do not make people differ with others in the workplaces.Advertising We will write a custom report sample on The Overall Effects of Cultural Diversity in the Hospitality Industry specifically for you for only $16.05 $11/page Learn More Using the same language makes it easier for communication to take place amongst employees; this enables easier transfer of information as well as knowledge. Such scenario reduces t he level of misunderstanding and misinterpretation owing to cultural differences hence leading to increased efficiency and productivity within the hospitality industry (Puick and Saba). The level of competitiveness is improved through effective management of cultural diversity. This is important aspect since hospitality industry presents one of the most competitive industries. Meaning that effective control on labour cost should move alongside increased demand for services. The industry requires highly motivated staff capable of attracting more customers which can only be achieved through successful diversity management. Hospitality industry normally serve different customers having different background characteristics making cultural diversity an important aspect in satisfying customer needs as well as building on relationships. This further provides the industry with the opportunity of offering increased customer service quality especially in foodstuff provision capable of attract ing majority of the customers. Such strategies reinforce the level of customer loyalty. Fair hiring standards makes gives companies’ fair deal in the nature of employees since it makes it easier to incorporate every culture required. This makes it easier for hospitality companies in recognizing potential human resource, easier recognition of different market needs and at the same time reduce customer turnover rate (Puick and Saba). Management of cultural diversity within the industry assist in building corporate brand images. The industry should be ready to recruit valuable minority employees from different cultures all over the world. Such moves help in the attraction of more people into the industry since diverse cultural workforce makes it easier for the company to cope with the native communities where they serve. Making it possible and easier for the hospitality companies to be recognized and accepted within different communities all over the world (Puick and Saba).Adver tising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Disadvantage Some challenges are experienced in the process of managing cultural diversity. One if them is harmonizing the different languages from various traditional backgrounds. This at times makes it difficult for communication within the workplaces since language is crucial part of communication and at the same time is used by many as their main point of cultural identity. There are times when employees find difficulty in interpreting other’s behaviours owing to intercultural communication. Inefficient communication amongst individuals within the industry usually leads to lots of misunderstanding hence affecting employee working relationships (The Power of Culture). The other challenge with managing cultural diversity is that there still exists within some quotas discrimination and certain degree of stereotypes emanating from less information regarding presence of some cultures within the workplace. This makes migrant workers to be under-utilized within the market. How c ultural diversity can be managed to give competitive advantage There is a possibility that cultural diversity can be managed for the purposes of enhancing employee’s personal identity within the industry. Such a process involves development of effective communication channels between managers and employees. Creation of free communication atmosphere enhances self esteem and socio-behavioural component and ultimately encourages articulation of views matching all employees. This enables good understanding during meetings guaranteeing improved productivity (Christensen 15-34). Management of such diversity also helps in possible review of employees extrinsic rewards depending on their level of expertise. Such intrinsic rewards are given in terms of salary increment as well as granting employee’s chances to expand in their careers. Review on cultural diversity would enable employees to be granted equal chances without discriminating the culturally minority communities (Stefa n 224-240). Performance should be given first considerations hence assisting in the provision of hardworking environment. The promotion chances and opportunities for career development should be non-discriminative and handled within every line of business in the hospitality industry. Such moves ensure great satisfaction on the side of employees hence acts as a source of inspiration (Christensen 15-34). Various companies within the industry should adopt the use of training and development for the purposes of equipping different employees from diverse backgrounds (Mwaura 212-220). The processes help employees cope with necessary changes which include the existing stiff competition within the market and other business challenges which might be environmental. This enables parallel performance of individuals irrespective of various environments where they are posted (Jeremy 158-161). The analysis identifies crucial positions/points where training is mostly required and at the same time p ositions appropriately the employees who require training. The employees are then ultimately enhanced with necessary induction enabling them to handle their various works professionally. Implementation of induction method provides skilful staff endowed with big responsibilities of managing the organization through basic knowledge (Gill 34-37). The processes allows management to asses and monitor the various abilities of employees irrespective of their cultural backgrounds hence making it possible to match and individual with duties which best fit their expertise areas (Osman-Gani 452-460). The process of managing cultural diversity also helps in reinforcing the kind of leadership within the industry. This grants the organization the abilities of motivating and uniting various employees for the purposes of working as a team. The unity provided through solid leadership is always necessary and beneficial to the organization’s profitability. The leadership finds it easy guiding e mployees in the process of adopting the organization’s values and at the same time finds it easier to cope with the changing trends (Hoecklin). Cultural diversity can also be managed through transformational leadership whereby management team are endowed with the responsibility of training employees in the language they understand best concerning the organization’s as well as the industry’s risk items. In this way opportunity is granted to employees concerning possible solutions in case of disasters. Management ensures that all employees have the ability to rightfully interpret the organization’s scopes as well as various ways of integrating organization’s development programs. The management of cultural diversity can also be developed to ensure cohesiveness within the various teams. The degree of cohesiveness greatly depends upon employees ability to work based on the integral principles of hospitality industry. The issue also reinforces the level of skilled manpower useful for the purposes of marketing since their abilities to convince customers can be trusted and relied upon (DAnnunzio 199-208). Democratic leadership can also be relied upon in managing cultural diversity. Working closely with administrative but non-discriminative rules is made easier since there is that ability to speak the language which employees understand best (Linda 46-64). It makes supervisory roles easier since employees are able to follow instructions ensuring efficiency in work done. The goals of the company are easily achieved through this since employees feel secure and at the same time organization’s culture easily adhered to owing to the fact that employees feel a deep sense of belonging within the organization’s environment (Declaration on Cultural Rights Project). Conclusion The issue on cultural diversity is revealed as one of the important aspects within the hospitality industry. Therefore, employers require a lot of skills w hich can enable them manage diversity issues in areas such as religion, gender amongst others. Cultural diversity in the workplace has encountered challenges especially for expatriates. However this should be an issue of concern as more and more minority groups join the workforce within the hospitality industry. Recommendations Management of cultural diversity within the hospitality industry need to consider employing people with common values and at the same time share the same vision of the organization within hospitality industry. This would help in eliminating the focus towards one’s cultural background and instead help employees to quickly adopt organization’s culture. Such moves prove beneficial in the line of productivity hence reducing training costs. This means that the industry should actually consider developing cultures capable of motivating employees focus on achievement rather than discrimination. This is possible implementation provided that there is spi rit of belief which considers everyone as worthwhile commodities capable of pushing an organization upwards through their various contributions. It is also appropriate that organizations communicate all information pertaining to improvement of working environment. This would initiate reception of diversified ideas necessary for making profitable decisions since members are held accountable for their decisions and actions. Such decisions would require managers to be very vigilant on every section and at the same time conduct regular meetings for the purposes of updating the staff and at the same time assess the general progress of the organization. Christensen, Hughes. Recruitment and Selection Issues and Strategies within  International Resort Communities. London, Continuum, 2002, pp15-34. DAnnunzio, Green. Developing international managers in the hospitality industry.  International Journal of Contemporary Hospitality Management, 9(1997): 199-208. Declaration on Cultural Right s Project. Interdisciplinary Institute on Ethics and Human Rights, in co-ordination with UNESCO and the Council of Europe. Barcelona, UNESCO Centre in Catalonia, 1998 Gill, Philip. Managing workforce diversity a response to skill shortages?  Health Manpower Management Journal, 22 (1996):34 -37 Gong, Yi. Managing cultural diversity in hospitality industry. UNLV Capstones,  (2008):5-59 Hoecklin, Usa. Managing Cultural Differences. London: Addison-Wesley, 1995 Jan, Selmer. Adjustment of Western European v/s North American expatriate Managers in China. Personal Review, 30 (2001): 5-21 Jeremy, Tipper. How to increase diversity through your recruitment practices.  Industrial and Commercial Training Journal, 36 (2004):158 161 Linda, Human. Managing workforce diversity: a critique and example from South Africa. International Journal of Manpower, 17 (1996):46 – 64 Mwaura, Grace. Corporate and national culture an irreconcilable dilemma for the Hospitality manager? Internationa l Journal of Contemporary Hospitality Management, 10 (1998): 212-220 Osman-Gani, Ahad. Cross-Cultural Implications of Planned on-the-Job Training.  Advances in Developing Human Resources, 3(2001):452-460. Puick, Vladimir Saba, Tania. Human Resource Planning. NY: Sage, 1998 Seyed-Mahmoud, Aghazadeh. Managing workforce diversity as an essential Resource for improving organizational performance. International Journal of Productivity and Performance Management, 53 (2004):521 – 531 Stefan, Grà ¶schl. Diversity management strategies of global hotel groups.  International Journal of Contemporary Hospitality Management, 23 (2011): 224-240 The Power of Culture. Intergovernmental Conference on Cultural Policies  Favourable to Development. Barcelona: UNESCO Centre in Catalonia, 1998, p 3

A Time of Reflection Essay Example | Topics and Well Written Essays - 1250 words

A Time of Reflection - Essay Example Military tension was culpable between the two world powers, and they even engaged in proxy wars as they tried to outdo each other. The tension created by the Cold war affected day to day lives of Americans. Between 1946 and 1964, it is estimated that some 20 million babies were born in the US. This is the generation that grew up during the tension filled years of the Cold War. It is also the generation that witnessed the Civil Movement. I am a proud member of this generation which is commonly referred to as the Baby Boomers. I grew up during a time when the politics of the United States seemed almost uncertain. There was the ever threatening return-to-war feeling among the general populace. The never-ending tug-of-war between the US and USSR created a fear among citizens. This generated into a phenomenon that came to be known as Duck and Cover as people were afraid that the enemy (that is, the USSR) would drop a nuclear bomb on any part of the country and we had to be ready to duck a nd find cover if and when that happened. This kind of tension was particularly unnerving for the young generation born after the war. I think the older generations were able to deal with the situation since they had experienced the Second World War and were used to such tension. In my understanding at that time, they were too afraid to speak out of the effects that war was having on the common citizens. But I was not. I felt that it was my right to speak out what I thought should be spoken out. If I thought that something was wrong and it needed to be corrected I was bold enough to say it. My outspokenness was a behavior I had picked up from my grandmother since when I was a child. The Civil Rights Movement In 1961 I joined college and like many other young people at the time, I had great expectations for my future. I knew I wanted a good life for myself and I understood that a college education would at least guarantee me a good job with good pay, of course. The 60s were tumultuous years, especially in regards to the Civil rights Movements and the conflicts that came with it. I had heard stories told of how Rosa Parks had defied the high and mighty to secure herself a seat in bus seat that was reserved for whites only. I grew up admiring her courage to face up to people whom she knew could do anything to her if they wanted to. The first time I heard her story, I went home and during dinner asked my mother why people hated parks so much that they did not want her to sit in a set that she had paid for in a bus. My mother tried to explain that people did not hate her, that it was just that people like her could only seat at a designated place in the bus. I was too young to understand the concept of discrimination, but something at the back of my head told me that the treatment Rosa Parks had received was not fare. I think that was the first time I really was able to develop an anti-status quo attitude which I would carry on later into my adulthood. We had an Afr ican housekeeper at home whose son, Jeremy was more or less the same age as me. We were quite good friends and even though we attended different schools (I was in an all-white school while he was in an all black one), we did our school work together. I found him to be brighter than some of the students at my own school. He practically taught me everything I needed to know in all my science subjects. After high school we both went to different colleges but we remained good friends until he