Case Write-up #2
Adidas in 2009: Has Corporate Restructuring Increased Shareholder Value?
1.What generic corporate strategy is Adidas pursuing? Is this strategy the same for all its business units? 2.Was there a common strategic approach utilized in managing the company’s lineup of sporting goods businesses prior to its 2005 – 2006 restructuring (related versus unrelated diversification)? Has the corporate strategy changed with restructuring? Provide examples to support your conclusions a.Adidas-Salomon’s corporate strategy (1998 – 2004):
b.Adidas’ post-restructuring corporate strategy (Since 2005): 3.What is your evaluation of Adidas’ line-up of businesses in 2009? Complete the necessary information in the charts below. Draw a 9-cell industry attractiveness/business strength matrix displaying what Adidas’ business units look like. What information does the 9 cell matrix tell you about how Adidas should allocate its resources or what decisions it should make?
Industry Attractiveness Assessment for Adidas’ Businesses
(Scale 1 = very low attractiveness, 5 = average attractiveness, 10 = very strong attractiveness)
Unweighted / Weighted Ratings
Attractiveness MeasuresWeightsAthletic Footwear and ApparelGolf EquipmentCasual Men’s FootwearHockey Equipment Market Size and Growth Rate0.20
Intensity of Competition0.15
Emerging Opportunities and Threats 0.05
Social, Political, Environmental Factors0.05
Competitive Position/Business Strength Calculations for Adidas’ Business Units (Scale 1 = very weak, 5 = average, 10 = very strong)
Unweighted/Weighted Strength Ratings
Strength MeasuresWeightAdidasReebokTaylorMade Adidas GolfRockportCCM/Rbk Hockey Relative Market Share0.20
Marketing and Promotion0.25
Product Innovation Capabilities0.15...