CUEGIS ADIDAS

CONCEPT and DEFINITIONS

Change - Driving forces and restraining forces creates change in a business so that
they can move forward and remain competitive.
Culture - the norms of an organization, a country, or other social grouping.
Culture shapes the values, beliefs, and customs of people. (Internal and External
sections of the organization)
Ethics - The socially accepted moral principles that guide decision making, based
on the collective belief of what is right and what is wrong.
Globalization - worldwide movement toward economic, financial, trade, and
communications integration
Innovation - Innovation generally refers to changing or creating more effective
processes, products and ideas, and can increase the likelihood of a business
succeeding.
Strategy- devising plans to achieve the long-term goals of an organisation 
https://prezi.com/scgbvf4fpsf7/cuegis/
Adidas Intro

Adidas is a multinational firm which was founded in 1948. The company is based in
Herzogenaurach, Bavaria, Germany. The company was founded by Adolf Dassler who used his
nickname Adi and the first initials of his last name. It was one of the first companies that
specialized in designing and manufacturing of sports wear and accessories.  It is the holding
company for the Adidas Group, which consists of the Reebok sportswear
company, TaylorMade golf company (including Ashworth), Runtastic, an Austrian fitness
technology Company and 8.33% of German football club Bayern Munich. The company also
produces bags, shirts, watches, eyewear, and other sports- and clothing-related goods. It is
considered Number one manufacturer of sportswear in both Germany and Europe and the 2nd
biggest in the World.
- It was in 2008 that Adidas spend €70 million for sponsoring Summer Olympics in
Beijing, China.
- Known for its 3 stripe logo (tritripe)
https://www.innovationinpractice.com/innovation_in_practice/2015/10/a-journey-of-
rediscovery-how-adidas-uses-the-past-to-innovate.html
 Change
Adidas branched into different sports wear as they gained the publics trust
- 1986 Adidas merge art and sport with the help of Run DMC to form the beginning of streetwear and
Adidas as a fashion brand

Change and strategy, Innovation:

The strategy pursued in the late 1970s and 1980s, involving an expansion into leisurewear, was a
rejection of Adidas’s heritage. The results were mostly poor —because not only did the company
at that time lacked the capabilities to compete to win in arenas beyond shoes. Employees were
confused about the company’s direction, innovation had no focus, design and product quality
deteriorated, margins suffered, and opportunities were missed. Most notably, the company
passed on signing a sponsorship deal with basketball superstar Michael Jordan when he was
drafted into the NBA in 1984. Jordan ultimately signed with Nike.

In looking to Adidas’s past, Moore and Strasser recognized two unique capabilities. First, they
saw that the core of the company had been Adi Dassler’s hands-on approach to innovation.
Dassler’s closeness to athletes and his intimate understanding of their needs had created a
stream of innovative products that enhanced athletic performance. When the company lost its
connection to athletes, quality suffered.
Moore and Strasser recommended renewing Dassler’s approach, and developed a new product
line called Adidas Equipment. Moore and Strasser created branding rules that emphasized
product quality. For example, they placed restrictions on the color, sizing, and placement of
the logo. They wanted consumers to focus on the quality of the shoe, and not be distracted by
other features.

Second, Moore and Strasser understood that Adi Dassler’s approach to design, which
emphasized functionality over style, had created a portfolio of timeless, authentic shoe designs.
Enter BOOST technology.Resting on the foundation of its innovative cushioning material,
adidas along with BASF, the world’s leading chemical company, designed an ambitious
midsole system that would carry the Three Stripes brand back to sneaker supremacy.

Change and Culture:

The culture of shoes and sneakers has always been an active reason to keep these companies
creating new products.

⁃ One step behind Nike in terms of sneaker culture

⁃ Sneaker culture enables Adidas to sell more at higher prices
How it coped with sneaker culture is in Change and Innovation.

Change and Globalization:

As a MNC it has had multiple changes to its products, process and marketing strategies.
Needs to adapt to host culture or have a culture which is adaptable to all cultures.
Adidas was a global organization, so it implemented the concept of “global brand, local touch”
to achieve its target in the competitive market. For example, in Europe, Adidas extend its
leading position by concentrating on key categories such as football and running. In North
America, its goal is to significantly increase both market share and profitability within the next
three to five years. In Asia, Adidas are striving to generate sales of over $ 2 billion by 2008. In
Latin America, Adidas will deliver continued strong top-line growth in the next three to five
years while improving both efficiency and profitability.

Change and Ethics:

Bs like unemployment considerations. Change to its working conditions in factories. Bla Bla
 Ethics

& innovation:
Environmental Impact: Good 
Adidas is a step ahead of many other big sportswear brands when it comes to
sustainability. They have committed to setting context-based targets, a recent thought
process in sustainability that recognises that water impacts are local and prioritises
focusing efforts in water-stressed basins.
They recently partnered with ocean conservation group Parley for the Oceans to
produce a range of products made from recycled waste from the sea. Each pair of
these Ultraboost trainers is made from 100% recycled material, including 11 plastic
bottles, Adidas has established a number of goals aimed at reducing their carbon
footprint. They have made a public commitment to reduce their waste production,
energy consumption and water use by at least 20% at all their facilities by 2020.
Adidas are actively engaging with manufacturing suppliers to find emissions reduction
savings, although have not yet set a formal target around this.
Adidas have also committed to steadily increasing the use of more sustainable
materials, and aim to have 100% of their cotton meet the Better Cotton Initiative‘s
standards. Adidas is actually a founding member of the Better Cotton Initiative and the
Sustainable Apparel Coalition. They are also partially certified by Bluesign, which
advocates the elimination of hazardous chemicals from the textile industry, the safety
of textile workers and the responsible use of resources.
Globalisation, Change
Labour Conditions: Good  
Adidas’ labour rating is based on the 2018 Australian Fashion Report, which looks at
criteria including payment of a living wage, transparency and worker empowerment
initiatives. The brand received an ‘A-’ grade in the report, improving on their 2016
grades in most areas, and getting the top score for their Supplier Code of Conduct.
Adidas traces and audits most of their supply chain, and publicly lists most of their
suppliers. However, despite these positive steps, the brand still has few worker
empowerment initiatives. .

CULTURE

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 competitive positions.

Vission: We are innovation and design leaders who seek to help athletes of all skill
levels achieve peak performance with every product we bring to market.

Values Adidas has a solid set of core values that sets them apart from the rest of their
competition nowadays.  1) Innovation and design leaders  2) Consumer focused  3) Global
organization  4) Dedicated  5) Performance heavy 6) Passion 7) Integrity  8) Diversity
Culture, Ethics and Globalization
Diversity is one of the adidas group’s values and an essential part of the people strategy.
Adidas is convinced the workforce is made up of individuals with different ideas, strengths,
interests and cultural backgrounds is a prerequisite to success  Diversity and integration
management are important characteristics of an employer choice and hold the key to
corporate success.

⁃ Continuously shaped by the past and present, as well as aspirations for the future. 
Fostering a corporate culture of performance, passion, integrity, and diversity by creating a
work environment that stimulates innovation, team spirit, and achievement based on strong
leadership and employee engagement. reached our global target of 32% of women in
leadership eighteen months prior to our goal date. We will not stop here but will
continue pushing the envelope. We also support employees of all ages and life stages

& Innovation
⁃ BELIEVES CANT HAVE INNOVATION WITHOUT CULTURE

Globalisation
Adidas operates 2,401 stores world wide, Roughly 3000 of 42000 employees work in the
Adidas headquarters.

& Strategy
The company has adopted an ambitious global plan to 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 organisations 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
cannibalising their own brands and distribution mix.

Culture and Change

Adidas is a global organization, so it implemented the concept of “global brand, local
touch” to achieve its target in the competitive market. First, Adidas applied the
strategies that anticipating and fulfilling consumer desires to build powerful brands, so
that a lot of people know “Adidas” in global sporting market. Also, Adidas clearly
understand that the consumer-oriented structure is unique in the industry, which will
bring a competitive advantage for Adidas Group.

Consumer buying and brand perception in the sporting goods sector are linked to
market-leading, high-profile technologies and cutting-edge design that capture
consumer imagination. Therefore, Adidas are committed to keeping its product pipeline
full with new, exciting designs and technologies. Developing leading positions in all
major markets In order to develop leading positions, Adidas was aimed to the regional
market to select consumers groups, set up the target for each area, and implement
different promoting activities. Read how a survey of hobbies and purchases can help a
producer

For example, in Europe, Adidas extend its leading position by concentrating on key
categories such as football and running. 

Has partnerships with major sports associations which allow the brand to be seen all over the
world, (FIFA, UEFA, NBA, NFL, NHL)

More than 1557 outlets on the world

second largest sportswear

https://wearedevelopment.net/2012/01/11/adidas-a-global-sports-strategy/

Main celebrity endorsers around the world : Messi, Pogba, Bella Hadid, Kanye West

INNOVATION

& Ethics, Strategy, Change,Culture

The guiding principle of Adi Dassler, the founder of adidas, is simple: to make athletes
better. That is why, at adidas, innovation is at the core of all our products. The choice of
materials and how they are manufactured are the two main ways by which our innovation
teams can influence the environmental footprint of our products. Adidas showed off the
depth of its commitment to cutting out petroleum and fossil fuels from its manufacturing
process. While the Parleys literally turned ocean garbage into stylish footwear, Adidas'
next forward-thinking shoe skips the plastic altogether in favor of a biodegradable, super-
strong form of synthetic spider silk called Biosteel. Avoiding oil-based plastic helps
reduce carbon emissions. Thinner or lighter materials mean less waste and less embedded
carbon. Dry-dyeing clothes saves water, chemicals and energy. Approaching the
innovation challenge from an environmental perspective helps us make products that are
better for consumers and better for the planet, too.
 STRATEGY

Globalization, Culture, Change

 Adidas have said that they have 2 clear strategic choices that will be their point of
focus. Speed, cities.
- Adidas's headline for their 5 year strategic plan is "Creating the new". They say "it is
the attitude that leads us into the future." 
- Adidas's 3 brands have strong identities in sports
- Adidas appeals to the athlete
- Reebok focuses on the fitness of the consumer
- Taylormade is focused completely on the 
golfer 

Their plan with "Creating the New" is to get closer to the consumer that is based on their
3 strategic choices

- Speed - To become the first truly fast sports company. Fast in satisfying the consumer,
fast in internal decision making. 
- Cities - Adidas have identified 6 key cities in which they want to grow share of mind,
share of market and share of trend
 Open Source – How we create: This is all about collaboration and
innovation. About learning and sharing. We are opening the doors of our brands
inviting athletes, consumers and partners to co-create the future of sport and sports
culture with us.

Adidas have said - 

We also translate our competence in sports into streetwear and fashion because sport
is an attitude and a lifestyle. Everything we do is rooted in sports. 
This relates to Adidas's recent change in model where they do not focus as much on
sport but also on lifestyle and fashion, adidas have broken into this market very
successfully with help from their brand Y-3 and Kanye West.
Celebrity Endorsements (publicity)

Advantages

- Adidas are able to get closer to the customer

- Can focus on specific areas to create products that will be beneficial for those
customers
- Gives Adidas a more public image by inviting people to be part of the brand. Gives the
brand a friendlier image
- Able to satisfy consumers faster

https://www.scribd.com/document/300804923/Communication-Strategy-of-Adidas-Ks

IMP https://phdessay.com/adidas-growth-strategies/
CUEGIS STRUCTURE

INVEST
Intro, Notion (Point), Validation (Explanation), Evaluate, Stakeholders, Tidy Up
(Conclusion)

Intro
• Definition of the CUEGIS Concept
• Definition of the strategy (if stated; e.g. Marketing)
• Introduction to the organisation

Body (3 paragraphs)
• #1 Point that supports your CUEGIS Concept
• Advantages (around 2)
• Disadvantages (around 2)

• #2 Point that supports your CUEGIS Concept

• Advantages (around 2)
• Disadvantages (around 2)

• #3 Point that supports your CUEGIS Concept

• Advantages (around 2)
• Disadvantages (around 2)

Conclusion (1~2 paragraphs)

• Short Term Implications
• Long Term Implications
• Stakeholder Conflict
• Stakeholder Impact
• The cost Implications