The classroom activities to think and plan business plan for sample company. This business plan not related to the real plan for Adidas AG. For more exchange in ideas please comment. Thank you.

1. BUSINESS PLAN
Members
1. 5520212002 : Nabduan D.
2. 5520212004 : Phonphat R.
3. 5520212005 : Omar N.

2. Table of Content
• Company background
• External analysis
• Company analysis
• Corporate strategies
• Functional strategies
•Market, OM, HR, Financial, Accounting
• Monitoring (BSC)
• Value chain
• Recommendation

3. Company background
About Adidas Group
Adolf "Adi" Dassler
His brother Rudolf returned to Herzogenaurach to
join his younger brother's business
Industry Apparel, Accessories
Founded 1924 as Gebrüder Dassler Schuhfabrik
(registered in 1949)
Founders Adolf Dassler
Headquarters Herzogenaurach, Germany
Area served Worldwide
Key people Herbert Hainer (CEO)
Products Footwear, sportswear, sports equipment, toiletries

4. Company background
About Adidas Group

5. Company background
Overall Brand and Sub-brands
% of Group Sales

6. External Analysis
PEST ANALYSIS
Political:
 To control and monitor
hazardous substances
 To protect human
health and
environment: eliminate
PVC
 To provide training
sessions on
employment standards
and HR systems
 To protects and
supports all current
employment laws
Economical:
 To help countries
decrease
unemployment rate by
increasing employees
 The salary high in
Germany but low in
China - most factories in
Vietnam
Social:
 Adidas products are
always keeping up with
the latest fashion
 focus on people who
like sports and athletics
Technology:
 The world’s first smart
shoe by adding
microchip inside the
shoe
 The wireless mp3 player
 The hot-melt system in
production that is safe
for the environment
 The environmental
friendly/recycled
packaging systems

7. External Analysis
5 FORCES ANALYSIS
Rivalry(H)
- The firms are
globally recognized
and have a huge
number of loyal
customer
Threat of entry
(M)
- Adidas is a globally
recognized brand
and has a huge
royalty customer
around the world
- Continuous
research to come up
with new innovation,
design and feature.
Threat of
Substitute (M)
- Most of footwear
can use for sport
purpose but it
doesn’t have same
feature with sport
shoes
Supplier power
(L)
- The principal
materials used in
our footwear
products are natural
and synthetic
rubber, plastic
compounds, foam
cushioning
materials, nylon,
leather, canvas.
mostly supplier are
offer same product.
Buyer power (H)
- Price sensitive
customers

8. External Analysis
Market Trend
The global athletic footwear market was worth USD 74.7
billion in 2011 and is expected to reach USD 84.4 billion in
2018, growing at a CAGR of 1.8% from 2011 to 2018.
Credit : Transparency Market Research "Athletic Footwear Market - Global Industry
Size, Market Share, Trends, Analysis and Forecast, 2012 - 2018,
Factors driving the global athletic footwear market include
 The growing awareness about healthy and active lifestyles
 The rising demand for comfortable footwear
 The rising demand for innovative footwear designs and technology
 The growth of population
 The rising disposable income levels.

9. External Analysis
COMPETITORS ANALYSIS
Nike 31%
Adidas 16%
Reebok 6%
Puma 7%
New Balance 6%
ASICS 5%
Converse 4%
K-Series 2%
Sletchers 5%
Others 18%
Credit
http://ridgewoodavenuejournal.blog
spot.com/2013/06/footwear.html
1st
2nd
3rd
4th
5th

10. External Analysis
COMPETITIVE POSITIONS

11. External Analysis
COMPETITORS ANALYSIS
 NIKE, Inc. is the world’s
leading innovator in
athletic footwear,
apparel, equipment
and accessories that is
engaged in the design,
development and
worldwide marketing
and selling.

12. External Analysis
COMPETITORS ANALYSIS
Customize NikeiD

13. External Analysis
COMPETITORS ANALYSIS
 PUMA offers performance and
sport-inspired lifestyle products in
categories such as Football,
Running, Training and Fitness, Golf,
and Motorsports.
 To engages in exciting collaborations
with renowned design brands such
as Alexander McQueen and Mihara
Yasuhiro
 To bring innovative and fast designs
to the sports world.

14. External Analysis
COMPETITORS ANALYSIS
Partnership with BMW and
Arsenal football team

15. External Analysis
COMPETITORS ANALYSIS
 New Balance Athletic Shoe runs
on its everyman (and
everywoman) appeal.
 Besides making and selling men's
and women's shoes for running,
cross training, basketball, tennis,
hiking, and golf
 The company offers fitness
apparel and kids' shoes and owns
leather boot and shoe maker
Dunham.

16. External Analysis
COMPETITORS ANALYSIS
NB custom :
same features NikeiD but
can’t choose pattern

17. External Analysis
COMPETITORS ANALYSIS
 ASICS Corporation manufactures and
sells sports goods in Japan, the
Americas, Europe, the Oceania, and
the East Asia.
 The company provides sports shoes,
sportswear, and sports equipment, as
well as bags and other accessories. It
also manufactures and sells outdoor
products under the “HAGLOFS” brand.
 The company sells its products through
its own retail stores. ASICS Corporation
was founded in 1949 and is
headquartered in Kobe, Japan.

18. External Analysis
COMPETITORS ANALYSIS
Shoes suggestion. By surface, you wear, experience and pronation

19. Company Analysis
Adidas group BCG matrix

20. Company Analysis
Adidas business model
Online

21. MISSION
The Adidas Group strives to be the global leader in the sporting goods industry with brands
built on a passion for sports and a sporting lifestyle. We are committed to continuously
strengthening our brands and products to improve our competitive position.
Company Analysis
Adidas Group
vision
 The company is innovation and design leaders who seek to help athletes of all skill levels achieve
peak performance with every product we bring to market.
 The company are consumer focused and therefore we continuously improve the quality, look,
feel, and image of our products and our organizational structures to match and exceed consumer
expectations and to provide them with the highest value.
 The company are a global organization that is socially and environmentally responsible, that
embraces creativity and diversity, and is financially rewarding for our employees and
shareholders.
 The company are dedicated to consistently delivering outstanding financial results.

22. Company Analysis
Adidas Group
Strategic Objective
Financial Objective
To increase market share to be the market leader.
To Decrease cost 10% and improve the company sustainability
performance to increase net income 15% annually.

23. CORE VALUE
Performance
Sport is the foundation for all we do and executional excellence.
Passion
Passion is at the heart of the company and continuously moving forward, innovating, and
improving.
Integrity
The company are honest, open, ethical, and fair. People trust us to adhere to our word.
Diversity
The company takes people with different ideas, strengths, interests, and cultural backgrounds to
make our company succeed. We encourage healthy debate and differences of opinion.
Company Analysis
Adidas Group

24. BRAND VALUE
Authentic
Passionate
Innovation
Inspirational
Committed
Honest
Company Analysis
Adidas Group
BRAND ATTITUDE
 Impossible is Nothing
KEY MARKETS
 North America
 Russia
 Greater China
SIX KEY STRATEGIC PILLARS
 Diverse brand portfolio
 Investments focused on highest-potential markets and
channels
 Creating a flexible supply chain
 Leading through innovation
 Develop a team grounded in our heritage
 Becoming a sustainable company

25. Company Analysis
GENERIC STRATEGY
Cost leadership
 Products are priced much lower to Nike, Puma
but the quality are equal. Customers would
buy adidas rather than Nike and Puma
because of the price.
Diversification
 Strategies adopted by adidas are concentric
and horizontal strategies
Concentric
 miCoach interactive training system (2010) was introduced along with miCoach pacers also
deodorant and shower gel and can
 also sell healthy drinks and juice because consumers trust the brand related diversification
strategy advantage of related diversification is the sharing of resources and capabilities between
various brands

26. Market Analysis
STP – Segmentation
GEOGRAPHIC SEGMENTATION:
Divided the market into different units of location
o Neighborhood,
o States, cities
o Regions, countries
o Adidas Bold 2009 have operated in urban and
semi-urban cities of India.
PSYCHOGRAPHIC SEGMENTATION:
Divided different personalities of each consumers and
only key is to be different.
o Achievers
o Well-experienced
o Hard workers
o Goal achievers
BEHAVIORAL SEGMENTATION:
Divided the consumers according to their attitude,
knowledge, response and use of the product. Below
are the behavioral segmentation for Adidas:
o Benefits
o Gym regular users
o Sports lovers
o Athletes
o Image seekers
o Brand freaks
DEMOGRAPHIC SEGMENTATION:
Divided into different segments based on the variables
of family size, family life cycle, income, gender, age
and etc. As follows:
o Age 15-36
o Income level: $15,000
o Social Class: Upper middle, upper class and lower
upper.
o Gender: Both male and female

27. Market Analysis
STP – Targeting
• Sports personalities involved in various sporting activities such as
soccer, rugby, athletics and basketball.
• Young people
• Male and Female
• Ages between of 10 to 30

28. Market Analysis
STP – New Targeting
• Sports personalities involved in various sporting activities such as
soccer, rugby, athletics and basketball.
• Young people
• Male and Female
• Ages between of 10 to 30
• People who has problem with pronation
• People who want customize their shoes

29. Market Analysis
STP - Product Positioning
adidas
• The brand strive to be the globally
leading and most popular sporting goods
brand
• Focus is on innovation and technology
adidas Originals
• The first brand leveraging its sports
assets in the lifestyle area
• Regarded as a legitimate sports lifestyle
brand.
adidas Sport Style
• "Future of Sportswear"
• Includes the labels Y-3
• Porsche Design Sport
adidas NEO
• From the track to the catwalk, it helps you to
"Style your Life"
New product will emphasize in Sports fashion shoes

30. Products
 Providing high quality products aimed at providing the best value to the
costumer.
 The products portfolio is continuously enhanced through creations and
innovations throughout the companies various categories. This is pursued
in order to cater to the various needs and wants of consumers worldwide.
 Well-known brands for sports apparels, equipment and accessories, the
Adidas group has a diverse brand portfolio consists of: Adidas , Reebok ,
TaylorMade Adidas Golf , Rockport, CCMHockey
 Partnership with Porches
 miadidas, offered in online store, customer can customize shoes color
 Enhance miadidas
 Customize pattern, color and engrave letters
 Support customer running style(Pronation)
Market Analysis
4Ps - Products

31. Market Analysis
Partnership with Porshe

32. miadidas
A wide selection of distinctive colors lets you mix and match for a shoe that lives up to your look
Stand out on the street thanks to a range of materials that let you create unique combinations
Select an extra pair of laces for contrasting color to freshen up the vibe
Customize your heel loop for a truly personal statement
Product offered only in U.S and nearby
Market Analysis
4Ps - Products

33. VDO Adidas custom
Market Analysis
4Ps - Products

34. New miadidas
A wide selection of distinctive colors lets you mix and match for a shoe that lives up to your look
Stand out on the street thanks to a range of materials that let you create unique combinations
Select an extra pair of laces for contrasting color to freshen up the vibe
Customize your heel loop for a truly personal statement
Can customize shoes as can choose materials(selected) ,pattern, color, engrave letters
Support personal pronation
Offer service to Asia
Market Analysis
4Ps - Products

35. Market Analysis
miadidas

36. Market Analysis
Pronation Suggestion
VDO Pronation suggestion

37. Market Analysis
4PS - Price
Price
Using adapted pricing strategies, depending on which market they
are operating in, so as to achieve its goals.
Penetrating attack markets with lower prices or using market
skimming tactics, for instance.
In intense competition in the global market, the company is involved
in regular evaluation of its price to ensure that the products stay
competitive at the point of sale and online shop.

38. Market Analysis
4PS - Place
Place
Distribute its products to the consumer with a strong focus on controlled space, including: Own-
retail business, e-commerce, Shop-in-Shop, Joint ventures with retail partners, mono-branded
franchise stores, co-branded stores with sports organizations and other brands. Hence, a high
level of brand control is provided.
In addition, an “integrated distribution roadmap” has been set up to ensure further growth and
to increase brand presence in under-penetrated, affluent cities, without cannibalizing their own
brands and distribution mix.
Emphasize online store which variety of products and services
In shop customize, using touch screen computer

39. Market Analysis
4PS - Promotion
Promotion
Different promotional tools are used in order to reduce the number of lost
customers and to increase sales.
The group has set up an unparalleled portfolio of promotion partnerships with
international recognized sports associations (e.g. UEFA, FIFA, NBA, NFL, and NHL).
Commercials, ads, apps for smartphones, product placement, sponsorships for
athletes and sport events (e.g. Berlin Marathon 2011)
Emphasize advertising and promotion on online channel

40. Market Analysis
4PS – Promotion - Advertisement

41. Market Analysis
4PS - Promotion
Promotion
Different promotional tools are used in order to reduce the number of lost
customers and to increase sales.
The group has set up an unparalleled portfolio of promotion partnerships with
international recognized sports associations (e.g. UEFA, FIFA, NBA, NFL, and NHL).
Commercials, ads, apps for smartphones, product placement, sponsorships for
athletes and sport events (e.g. Berlin Marathon 2011)
Emphasize advertising and promotion on online channel

42. Market Analysis
Distribution Channel – Wholesale

43. Market Analysis
Distribution Channel – Retail

44. Market Analysis
Distribution Channel – E-Commerce
E-commerce
The success of our e-Commerce strategy rests on ability to attract,
convert and retain the consumer in a highly competitive marketplace.
Therefore, activate key unique selling proposition by offering broad
ranges with high size availability to showcase the depth of our brands.
Company want to attract consumers by having the right products and
the right marketing at the right time through our e-shops.
To drive conversion, we consistently improve our site visibility online
and how it ranks in online searches.

45. Market Analysis
SWOT Analysis
• Low switching cost
• High product substitute for customer
• Trademark too easy to copy

46. Operation Management
Value Chain
• Quality Control

47. Operation Management
Supply Chain

48. Operation Management
Supply Chain
 Use of IT to monitoring supply chain
innovative rating system for the assessment
 Checking the rules are followed
Workplace standards - Cover labor rights, training programs, health and safety, and
environmental protection
 Selecting new suppliers
Adidas will give the order to suppliers who approved by SEA(The Social and Environmental
Affairs) team
 Rewarding good performance
Remain Adidas partner and continue to receive orders
 Taking action over poor performance
Adidas will send a letter. If they not improve Adidas will stop orders and stop working with the
factory
 Providing information for workers
management-worker communication project with one of our suppliers in Indonesia: workers can
now send SMS text messages to hotlines to raise the alarm if they think their rights are being
compromised.
 Working with Licensees have people check the factories and help them stay true to our rules

49. Human Resource Management
STRATEGIES

50. Human Resource Management
STRATEGIES
 Commitment to leadership excellence
 Enable employees to be the best
* Talent Management
* Performance Management
* Succession Management

51. Human Resource Management
STRATEGIES
 Performance-driven
remuneration
* Bonus Programme
* Profit Participation
* Long Term Incentive
Program
 Online communication
platform to drive
employees engagement
 Create an attractive
work environments
* Work-life integration
* Diverse work force key
to Success

52. Human Resource Management
STRATEGIES

53. Managing our environmental impacts at our
own sites and along the value chain, where our
products are designed, created, manufactured,
transported and sold, is a key focus of
company work.
Social Responsibility
CSR
Environmental Strategy 2015
Vision – Our commitment to improve our environmental footprint is
embedded in all our products, processes and services.
Mission – Adopting a leadership role in environmental management
supports our business performance.

54. Objectives:
 Save energy and reduce carbon emissions
 Save water
 Reduce the use of non-renewable raw materials, using more environmentally
 friendly materials
 Reduce waste
 Reduce toxicity, for example through using less hazardous chemicals and
 through efforts to reduce the pollutants in waste water at supplier factories
 Improve the environmental footprint of raw materials and products
 Manage supplier performance through auditing, measuring and reporting
 against key performance indicators
 Use management systems to drive continuous improvement.
Social Responsibility
CSR

55. Social Responsibility
CSR

56. FinancialHighlights

57. FinancialHighlights

58. Performance
Accounting

59. Performance
Accounting

60. Performance
Accounting

61. Performance
Accounting

62. Performance
Finance
Adidas AG stock perform
better than DAX-30 and MCSI

63. Financial Management
COST STRUCTURE
EQUITY > LIABILITIES

64. Monitoring Process
Strategy
Route 2015 Strategy
To drive quality growth and sustainable success
for the group by fuelling consumer desire with
premium products and brand experiment

65. Monitoring Process
Strategy Map

66. Monitoring Process
Balance Scorecard

67. Balance Scorecard
Learning and Growth Perspective
2012 2013 2014 2015 2016 2017
Create leadership excellence -% global engagement survey 80% 82% 84% 86% 98% 90%
Enabling employee to reach their personal
best
- Annual training hours by employee (in
hours)
18 19 20 18 19 20
Employee satisfaction - Turn over rate 1% 1% 1% 0% 0% 0%
Creating an attractive work environment - Average length of service (in years) 5 6 7 8 9 10
- Number or new system support 2 3 4 5 6 7
-Number of employees 42,541 46,623 48,518 48,700 49,000 49,100
Reorganization of culture -% product defection 25% 20% 15% 10% 5% 0%
Increase the propotion of women in
management
- % Management position 28% 32% 35% 37% 39% 41%
Perspectives Objectives Measurements
Performance Targets
Learn & Growth
Perspective Online communication platforms to drive
employee engagement and learning
Programs
Leadership excellence programme / Best-in-class tools 100,000
Targeted development programmes 50,000
Rewards programme / Global Salary Management System / Bonus programme,Profit participation programme,Long-term incentive programmes, Champion Bonus80,000
Work-life Integration Programme 30,000
Learning Management System / Ask the Management / e Learning 30,000
Recriutment process N/A
Internal Training Programmes / Employee engagement surveys 100,000
Mixed leadership team / Work-life integration /Gender balance 100,000
Budget (€)

68. Balance Scorecard
Internal Process Perspective
2012 2013 2014 2015 2016 2017
Ensuring cost compititiveness
Reduce product cost cost of sales € 7780 m € 7118 m € 6990 m € 6980 m € 6800 m € 6500 m
Reduce standard lead times for footwear
and apparel Standard lead times 60 days < 60 days < 60 days 60 days < 60 days < 60 days
Product development, creation &
innovation
1. Increased number of new ideas R&D expenses € 128m € 129.28m € 132m € 135m € 137.5m € 139m
2. Improved quality of ideas No. of successful product launch 17 19 21 23 25 27
3. More efficient implementation of quality
ideas
Measurements
Performance Targets
Internal Process
Perspective
Perspectives Objectives
Programs
Cycle process system 30m
Cycle process system/ customer order management/ distribution management10m
Production creation system 50m
Quality control management
Budget (€)

69. Balance Scorecard
Customer Perspective
2012 2013 2014 2015 2016 2017
new customers
%increasenew customersthrough
registration
10% 15% 20% 22% 24% 26%
customer retention %repeatedsalesthroughdatabase 72% 75% 78% 80% 80% 80%
customer satisfaction
%repeatedsalesthroughdatabaseand
surverys
95% 95% 95% 95% 95% 95%
increasedemand
%increasesales: bothnew customers
andoldcustomers
50% 50% 50% 55% 60% 65%
Perspectives Objectives Measurements
Performance Targets
Customers
Programs
promotions/ advertisment/ marketing/ new products+ 200M
promotions/ advertisment/new products + good quality+ reasonable price 100M
value customer project/ surveys 25-50M
advertisment/ marketing, more outlets/ new products 200M
Budget (€)

70. 70
Balance Scorecard
Financial Perspective
Programs
Measures profitability a company is for the owner of the investment, profitably a company employs its equity.-
From using ABC costing,ABM,EmployeeLeadershipProgram,BetterSupplyChainProcess,Outsourcing
Indicator of the profitability of the company -
From using ABC costing,ABM,EmployeeLeadershipProgram,BetterSupplyChainProcess,Outsourcing-
From using ABC costing,ABM,EmployeeLeadershipProgram 2500M
Strong balance sheet increased flexibility to the best interest of sharesholders -
From using ABC costing,ABM,BetterSupplyChainProcess,Sales,Marketing,OnlineRetailer1,500M
From using ABC costing,ABM,EmployeeLeadershipProgram,BetterSupplyChainProcess,Outsourcing2,000M
Better performance of the company -
Budget (€)
2,600M-5,200M
2012 2013 2014 2015 2016 2017
Return on Equity(NI/Equity) 12% 12% 12% 12% 12% 12%
Net income attributable to shareholders
as a percentage of net sales
Earning per share increased 10%-15% 12%-16% 14%-18% 16%-19% 16%-19% 16%-19%
Operating Margin 8% 9% 10% 11% 12% 13%
Operating Expenses 40% 40% 40% 38% 36% 34%
Net borrowing/EBITDA below 2 below 2 below 2 below 2 below 2 below 2
Revenue increased 11% 11% 12% 13% 14% 15%
Gross Margin 47.50% 49.30% 49.5%-49.8% 50.00% 51.00% 52.00%
Increase Share Value Share Price increased above standard 10% 12% 15% 17% 19% 21%
Targets
20%-40% 20%-40% 20%-40%
Sustainable company
Performance
20%-40% 20%-40% 20%-40%
Financial
Creating long-term value
Perspectives Objectives Measurements
revenue growth

71. Predicted Performance
Performa Income
Currency : € in millions 2,014 2,015 2,016 2,017 2,018
Sales 16,000 17,600 19,360 21,296 23,426
Cost of Goods Sold 7,052 6,664 6,298 5,951 5,624
Operating Income 8,948 10,936 13,062 15,345 17,802
Total Expenses 6,000 6,180 6,365 6,556 6,753
Earning Before Interest and Tax 2,948 4,756 6,697 8,788 11,049
Taxes 2,093 3,377 4,755 6,240 7,845
Net Income 855 1,379 1,942 2,549 3,204

72. o Adidas is market follower
o Diversify base on footwear
o Most product made for sport activity
o Manufacturing locate in Asia, Vietnam and China
o Good image in HR and CSR
o Strong financial
Conclusion

73. Recommendation
Continue develop strong consumer-oriented brand for continued
growth with advanced tech can understand customer needs better
and in turn can deliver that demand
Tap into untapped markets like China, India, Latin America, etc.
Equip sales with wireless tech to provide them real-time inventory
More efficient process
Continue investing in R&D to keep up the edge
Expand women’s segment

74. THANK YOU FOR
YOUR ATTENTION

75. 1. www.nasdaq.com/symbol/addyy
2. www.adidas-group.com/en/
references