Assess the roles and responsibilities of personnel who are charged with strategy implementation
Mission and the strategic plan
Adidas is known for producing and delivering sportswear apparels, shoes and other accessories in the global market. Their major target audience across the globe is athletes and its primary mission is to develop effective image in the global sports industry through delivering advanced and quantitative sportswear and other essential things. In order to develop and maintain their effective image in this field, management of the Adidas has developed certain quality standards for maintaining the adequate quality of the products in relevance with the quality standards. This will help the organization to fulfil the consumer’s needs and the requirements in an effective manner. Apart from these plans, organizational management has also adopted certain strategies through which competitors could be faced easily. Maintaining the appropriate quality of the products will lead them to develop an adequate market share in the global market (Cool & Schendel, 2010).
The primary mission of the organization is to produce unique and qualitative products in order to satisfy the needs of the consumers. This mission was set up by Mr. Adolf Dassler, founder of the Adidas and still, company is following the same mission for attaining its goals and the objectives. Below are certain aspects which need to be attained for matching up with the set mission’s requirements:
- The Foremost strategy is to produce unique designs with appropriate quality features. Along with this, offering a large range of choices to the consumers helps the consumer to select the most appropriate product on the basis of their needs. This will ensure Adidas appropriate competitive advantage in the global market (Dant, 2009).
- Maintaining customer satisfaction is another crucial aspect for Adidas as it helps the organization develop customer relations which helps the organization to gain its goals and the objectives in an appropriate manner.
- With the huge variety of products, organization produces products on the basis of customer’s requirements. With the help of this, customer base increases.
Adidas has adopted certain values in their strategic planning process for attaining its goals and the objectives and these values are integrity, social responsibility, and diversification in their products and services, quality standards, etc. With the help of these values, organization could easily attain its objectives. Adaptation of these values in the functionalities of the organization will enhance the productivity as well as it will also ensure an effective position for the organization in the global market in near future. Company’s major vision is to attain the peak position in the sports industry and for the same, organization has adopted following strategies to make its strategic planning process effective and efficient:
- Innovation, quality, wide range of products;
- Enhancing the employees’ efficiency through providing them adequate training and counselling session for improving the productivity of the organization;
- Cost-leadership strategy will also help them to become the leader in the global market;
- Executing its core functionalities through following corporate social responsibilities.
With the help of above values, strategies and the policies, organization could develop adequate image in the customer’s mind-sets and this will help them to attain its assumed goals and the objectives. In attainment of organizational goals and the objectives, internal as well as external stakeholders play crucial role because these are the people who perform the tasks on the basis of policies and standards set up by the management of the organization. To enhance the employees’ efficiency and company’s productivity, adaptation of motivational techniques is quite a crucial step as this will influence them to perform in fair manner for the organization and it will help the organization in attainment of their goals and the objectives.
Analyse the estimated resource requirements for implementing a new strategy for a given organization
Objectives, Goals and Core competencies
Adidas’ management has developed certain objectives for attaining the competitive advantage in the global market. These objectives are providing appropriate qualitative products at reasonable prices and along with this, providing a wide range of the products. With the help of this, large number of consumers could be attracted as well as market share of the organization will also be increased.
Primary goals of the organization are to attain peak position in the global market in their industry and gaining the lost position in the global market. With regards to this, organization has developed an effective strategic plan which could improve the efficiency as well as the productivity of the organization.
Moore and Strasser believed in the objectives of the Adidas still after the death of the Founder of the organization. With the help of their confidence in the core competencies of the organization, Adidas adopted unique strategies through which dynamic requirements of the consumers could be attained in a fair manner. Its major competitors are Nike and Puma and to attain effective competitive advantage, Adidas used its core values and the objectives in order to ascertain the opportunities for growth and expansion of the organization in the global market.
While developing the strategic plan for the organization, certain crucial factors should be considered with the view to enhancing the chances for the success of the strategic planning process of the organization. In this scenario, strategic plan is being made for Adidas Company in order to attain certain objectives such as competitive advantage in the global market and to become the leading producer in their field in the global market. To develop the strategic plan more effective and efficient, following factors plays crucial role:
- Organizational Culture: Culture of the organization is efficient enough to enhance the performance and it could also be held responsible for the declined performance of the organization. Adidas needs to adopt certain controlling measures through which chances for disputes between the employees and amongst the employer and employee could be minimised in order to attain the desired goals and the objectives (Gamble & Thompson, 2014).
- Dynamic policies: Policies or strategies adopted under the strategic plan of the organization should be capable enough to handle various and unique types of situations in the business environment.
- Accountability and responsibility: Adidas is a multinational company; hence, imposing controlling measures on each and every outlet is quite difficult task. Thus, the policies developed and adopted by them should be capable enough so that the adequate person could be held responsible for the outcomes generated from the execution of the task. This will help the organization to enhance the efficiency of the particular employee with various unique measures (Goetsch & Davis, 2014).
While developing the strategic plans for improving the performances of the organization, appropriate techniques should be used through which requirements could be analysed on the basis of departments and the areas of the organization. Following technique could be used for analysing the effectiveness of the strategic plan for Adidas to attain adequate competitive advantage:
BCG Matrix
It helps the company to evaluate the requirement of the investments need to be made on the basis of department. With this, chances for improving the performance of the organization increases.
Question Marks are the indicators which specify that business has low market share with huge market growth. Due to this, organization needs to incur huge expenses through which organization may not attain its desired goals (Gumerov, et. al., 2015).
Evaluate the contribution of SMART targets to the achievement of strategy implementation in a given organization
Dogs are the stage in which organization is treated as the incapable to earn sufficient amount of profits for surviving in the competitive business environment. With low market share and low growth indicators, organizational progress declared at the declining stage.
Stars are the leaders for the business environment. They have huge market growth as well market share and with this, stars determine various opportunities to enjoy the success and growth. They need to maintain their performance with huge investments in order to avoid the situations in which stars become cash cows.
Cash Cows are the businesses which have huge market share but low market growth and these types of businesses perform quite well in the market. Business organizations turn into cash cows while they generate more cash than required and due to this, these types of organization reaches the destination where opportunities for expand and decline does not exist.
Adidas is currently a star with huge market share and huge market growth but in the past, Adidas was included in the Dogs category because company was reached to the mark of bankruptcy. Organization implemented BCG matrix strategy and with the help of this, organization realised the area within the workplace which requires huge investments for attaining its goals and the objectives (Hill, Jones & Schilling, 2014).
|
Strengths · Adidas was launched in 1949 and since then, they have attained adequate legacy and the heritage as the biggest sports brand. · Company offers huge varieties and collection of sportswear and accessories which enhances the customer base. · Company has a strong financial position as they have more than 2500 stores across the globe with the value of $4.3 billion. · Organization has adopted strategies through which they have been successful in developing adequate customer relationships (Biancamaria, Lettenmaier & Pavelsky, 2016). |
Weaknesses · High priced products due to innovations and adaptation of advanced techniques. · Due to outsourced manufacturing, quality of the products declines than expected. Adidas outsource its manufacturing more than 93% and mostly to the Asian market because labour cost is cheap over there. · With limited product line, organization has acquired only Reebok brand under the Addis group (Bohari, Hin & Fuad, 2017). |
|
Opportunities · Adidas needs to produce on the basis of changing lifestyles, unique tastes, and preferences of the consumers, etc. for attaining its goals. · Expansion of the organization in rest parts of the globe in terms of enhancing the market share and market growth. · With the increase in demand for their products, organization has huge chances to enhance its market share in the global market. |
Threats · Aggressive competition from its primary competitors i.e. Nike and Puma. · Suppliers have huge bargaining power due to its outsourced manufacturing (Bull, et. al., 2016). |
PESTLE Analysis
Political: Adidas uses outsourcing manufacturing for reducing its cost because manufacturing is outsourced to the third parties in Asian countries and there, labour cost is quite less in comparison with other countries. Thus, the political implications of the Asian countries and the other countries may differ and it could raise various glitches in the organizational performance, thus, all regulations must be followed in terms of reducing the issues (E. Dobbs, 2014).
Economic: Approximately 50 big companies of sports industry contribute to more than 70% of the overall industry’s revenue and Adidas is one of those big companies. Adidas uses outsourced manufacturing for controlling its product’s prices but importing and exporting those goods to rest parts of the globe may result in increase in the prices of the products which may affect the economy of the country (Eden & Ackermann, 2013).
Social: In terms of enhancing its market share, organization has adopted various strategies in order to match its consumer’s needs to attain its desired goals and the objectives.
Technological: Adidas has adopted innovative and advanced technologies in order to strengthen its performance. With the help of technology, organization provides advanced and unique products to its target audience i.e. athletes (Massingham, 2014).
Assess how business missions, visions, objectives, goals, and core competencies inform strategic planning
Legal: Adidas has a brand image in the global market, thus, they have taken trademarks and the patents on their brand name and their unique designs in order to avoid chances of copyrights issues.
Environmental: Material used in the production of sports shoes and other accessories must be tested and then used in order to prevent the environmental conditions (Morden, 2016).
Stakeholders for Adidas are its employees, suppliers, directors, investors, workers, distributors, and all other people and group of people who take interest in the organizational functionalities due to various reasons. They get affected by the organizational actions and stakeholder’s actions also affect the performance of the organization. Stakeholder analysis is the term used to define the process of managing the stakeholder’s support for the organizational project. (Norsworthy, 2016).
For analysing the significance of stakeholder in relevance with the formulating the new strategy, stakeholder mapping will be performed. Stakeholder mapping is done on the basis of their power to influence and their relationship with the management. In this analysis, stakeholder map needs to be developed in order to analyse the primary and secondary stakeholders of the organization. Important stakeholders are categorised on the basis of their power to influence and they are designed on the map on the basis of their priority. After analysing the power of stakeholders and after prioritising them in the manner of their influencing power, organization will be able to identify its requirements and on that basis, new strategy will be developed considering the outcomes of stakeholder mapping analysis. The new strategy will be able to accomplish its requirements considering the significance and power of their crucial stakeholders such as fulfilment of their needs, providing them latest and trending products and services, etc.
In order to increase the effectiveness and efficiency of Adidas Company, it is required to uplift the demand of their products and services more than their competitors’ products. To execute this function, organization could utilise the product differentiation or cost leadership strategy in order to lead their industry along with determining various opportunities for attaining their goals and objectives (Baker, 2014).
Product differentiation: With the help of this strategy, organization needs to add certain unique features or elements in their products and services which could improve the effectiveness of their product. The elements added in the product should be unique and should not be found in their primary competitors’ products (Armstrong & Taylor, 2014). Along with this, the features added by the organization in their products should be capable enough to provide leisured, comfort or distinctive experience from their previous range of products. The experience should also be different from its competitors’ products. This will help the organization to uplift the demand of their new products with improvised features in order to develop distinctive image from its competitors. Additionally, this strategy will help the organization to lead the market along with gaining adequate competitive advantage (Chaffey, 2015).
Analyse the factors that have to be considered when formulating strategic plans
In order to attain the above objectives and for expanding the company’s presence at international level, management needs to require certain crucial strategies through which desired targets could be attained easily.
Ansoff Matrix: It’s a strategic tool which is performed by the superior level managers with the objective to attain the future growth. Following are crucial elements of this matrix:
Market penetration: This tool is used for increasing the market share of the organization in the target market by increasing their revenues and sales. In order to do so, new products and services will be launched rapidly in relevance with the target audience’s requirements.
Market development: This strategy is used for increasing the effectiveness in the new markets with the help of their existing product offerings. Adidas will use this strategy and promote its existing range of products and services in the international markets (Peppard & Ward, 2016).
Product development: This strategy is used for attaining the growth related objectives along with developing an effective image in the existing market through launching new products. Extending the range of products, modifying the existing range of products, and the like are certain crucial objectives for uplifting the development of organizational existing products and services.
Diversification: This tool is used for expanding the organizational market share through launching new range of products in new markets. Promotional strategies will also be utilised in this process for uplifting the demand of the organizational products in the new target markets (Rothaermel, 2015).
As Adidas is struggling with its competitors and with their strategies, hence, in this situation, organization needs to adopt most adequate and effective strategy to enhance its market share in the global market. Adidas has attained the largest producer of sportswear and other accessories in Europe and it stands on position two in terms of global market. Adidas could adopt one of the most suitable strategies amongst the Ansoff Matrix analysis.
Amongst the above-discussed strategies, Adidas needs to evaluate all the strategies on the basis of their employees’ talent, available resources within the workplace and the sources of funds. Diversification strategy will be adopted by the organization in order to uplift its effectiveness in the target market. This will also help the organization to beat its competitors and competitive advantage would easily be attained. This strategy will help the organization to target the new markets in which they are not yet present with the help of new range of products and services. This will increase the market share of the organization in the international market through which the demand of their products and services will be increased accordingly (Sabirov, et. al., 2015).
Evaluate the effectiveness of techniques used when developing strategic business plans
While implementing the strategy, personnel need to evacuate their roles and the responsibilities in order to execute the functionalities of the organization in a fair manner. Basically, there are three roles and the responsibilities which need to be followed by the personnel:
Assuming Future Strategy: Under this role, personnel needs to convey the techniques and the policies involved in the adopted strategy for attaining the expected goals. This is necessary to meet with the expected outcomes from the implementation of the future strategy.
Allocation of tasks: Under this step, appropriate tasks are allocated to the desired candidate on the basis of their expertise area. This will help the organization to perform their roles and the responsibilities in fair manner through which attainment of the organizational goals becomes an easy task.
Embodying the change:
This technique identifies the role of existing strategies in order to improve its performance in the target market as well as to diversify their market share. This is being done to attain the standards set up by the management of the organization (Wheelen & Hunger, 2017).
While implementing the new strategy within the workplace, following factors should be considered to acquire the expected outcomes:
People: Talented and knowledgeable employees are required at the workplace for successful implementation of the selected strategy to attain desired goals. Along with the knowledgeable people, allocation of the tasks should also be done on the basis of employees’ talent and their skills.
Financial Resources: Adequate finance is required to execute the functionalities of the organization. As Adidas is planning to acquire its lost position in the global market, hence, appropriate funds are also required. Without funds, organization will not be able to perform its activities in the adequate manner and it may affect the performance of the organization than expected.
Culture: Organizational culture also plays crucial role in order to attain the desired goals and the objectives set up by the management of the organization. Effective culture helps the organization to develop appropriate relationship with the employees. Due to this, organization will be able to motivate the employees and the improvisation in the productivity will be attained easily.
SMART objectives are the term used for specific, measurable, attainable, realistic and timely. Adidas has targeted their audience as sports person and the athletes to enhance their market share in the global sports industry. For this, organization has adopted promotional techniques so as to attain the specific goals set up by the management. Goals set up by the organization to target the athlete people are measurable enough because Adidas has designed their sportswear, shoes and other accessories for improving the athletes’ performance. Along with this, organization has adopted the strategy in which quality factors are considered quite important with the view to attaining the desired goals and the objectives.
Analyse the strategic positioning of a given organization by carrying out an organizational audit
Goals and the objectives set up by the organization are easily attainable as these are set up as per the real-life scenarios and with the above-discussed strategies, these objectives will be easily attained. Along with the attainable factor, targets are realistic enough because Adidas is in the second position in terms of global sportswear and other accessories manufacturing company and they are seeking to be in the peak position. Thus, it is quite realistic and for the same, certainly unique and advanced technologies and strategies will be required. A most important factor to attain the goals set up by the management is to perform the activities designed in the hierarchy as well as it should also be performed in the certain period of time for achieving the desired targets.
References
Armstrong, M., & Taylor, S., 2014, Armstrong’s handbook of human resource management practice, Kogan Page Publishers.
Baker, M.J., 2014. Marketing strategy and management. Palgrave Macmillan.
Biancamaria, S., Lettenmaier, D. P., & Pavelsky, T. M., 2016, The SWOT mission and its capabilities for land hydrology, Surveys in Geophysics, 37(2), 307-337.
Bohari, A. M., Hin, C. W., & Fuad, N., 2017, The competitiveness of halal food industry in Malaysia: A SWOT-ICT analysis, Geografia-Malaysian Journal of Society and Space, 9(1).
Bull, J. W., Jobstvogt, N., Böhnke-Henrichs, A., Mascarenhas, A., Sitas, N., Baulcomb, C. & Carter-Silk, E., 2016, Strengths, weaknesses, opportunities and threats: A SWOT analysis of the ecosystem services framework, Ecosystem services, 17, 99-111.
Chaffey, D., 2015. Digital business and E-commerce management. Pearson Education Limited.
Cool, K., & Schendel, D., 2010, ‘Performance differences among strategic group members’, Strategic Management Journal, 9(3) , pp. 207-223
Dant, S. P., 2009, ‘Ownership Structure in Franchising: The Effect of Transaction Cost, Production Costs and Strategic Considerations’, the International Review of Retail, Distribution and Consumer Research, 6(1), 53–75
- Dobbs, M., 2014, Guidelines for applying Porter’s five forces framework: a set of industry analysis templates, Competitiveness Review, 24(1), 32-45.
Eden, C., & Ackermann, F., 2013, Making strategy: The journey of strategic management, Sage.
Gamble, J. E., & Thompson, A. A., 2014, Essentials of strategic management, Irwin Mcgraw-Hill.
Goetsch, D. L., & Davis, S. B., 2014, Quality management for organizational excellence, Upper Saddle River, NJ: pearson.
Gumerov, A. V., Kharisova, R. R., Pavlova, A. V., Litvin, I. Y., Nabiullina, K. R., Schepkina, N. K., & Sabirov, I. T., 2015, Improving strategic management of the business entities, Review of European Studies, 7(1), 23.
Hill, C. W., Jones, G. R., & Schilling, M. A., 2014, Strategic management: theory: an integrated approach, Cengage Learning.
Massingham, P., 2014, An evaluation of knowledge management tools: Part 1–managing knowledge resources, Journal of Knowledge Management, 18(6), 1075-1100.
Morden, T., 2016, Principles of strategic management. Routledge.
Norsworthy, M., 2016, Evolution of Emission Inventories as Strategic Management Tools for Ports, Transportation Research.
Peppard, J., & Ward, J., 2016, The strategic management of information systems: Building a digital strategy, John Wiley & Sons.
Rothaermel, F. T., 2015, Strategic management, McGraw-Hill Education.
Sabirov, I., Kharisova, R., Pavlova, A., Gumerov, A., Litvin, I., Nabiullina, K., & Schepkina, N., 2015, Improving strategic management of the business entities.
Wheelen, T. L., & Hunger, J. D., 2017, Strategic management and business policy, pearson
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
