Professional Documents
Culture Documents
DR KENNEDY AMADI,PhD
Size.
“Adidas is considered the largest sportswear manufacturer In the European region; with over 59,000
employees worldwide at the end of 2019”, (O’Connell, 2020).
Geographic regions.
Mernock, A. (2012) highlights that while Adidas is based in Europe, their products are present in
every country mostly dominating its home region Europe.
Key Competitors
Bhasin, H. (2018), identified some key competitors of Adidas as the following:
Nike: Nike is said to be the number one footwear manufacturer. Adidas faces the
greatest competition from Nike.
Puma: The sibling company to Adidas is Puma, the Dassler brothers rivalry carries on into heavy
business competition between Adidas and Puma.
a. Advantages.
Increase employee engagement and productivity. This is because philanthropy is seen as good
deeds, and employees are more willing to help if it is for a good cause. This will also result in
more involvement with employees in the CSR efforts of the company. “Adidas employees have
many ways of being involved in community projects, one is the Adidas Fund. The Fund
involves adidas employees around the world helping out communities not only through
monetary donation, but also teaching important values through sport”, (adidas-group.com,
n.d).
Improved brand awareness and reputation. The general public will have a positive image of a
brand after they have made efforts to assist communities, this will increase the brand
reputation and image substantially. “Adidas ensures that CSR is a major part of its initiatives and
it shows. In 2018 adidas produced more than 5 million pairs of shoes using recycled plastic.
Putting the public first in their operations has led to a high CSR ranking and increasing company
value”, (sustainabilityvibes.com, 2018).
Giving out can hinder objectives. This is because money donated can be spent elsewhere
for maximum efficiency.
It needs a lot of time, effort and funds. This is because if a company decides to invest into the
community rather than just giving, they will need to allocate resources and time into a project
with no direct returns. As stated on adidas-group.com, (n.d.), Adidas clearly displays the effort
put into community engagement and donations. Some Adidas community engagement
examples are support for refugees, save the children, SOS children’s village, China:
Cooperation with ministry of education and many more. Adidas statistics show that in 2019,
the company supported 519 total projects. These projects show that Adidas has invested a
substantial amount of resources and time into helping the community. Theoretically if they
directed the effort into expanding their business, they would earn more overall.
Refer to appendix 1 for detailed breakdown of Adidas projects and donations.
2. Economic Model of Corporate Social Responsibility.
As defined by Pineda, M. (2015), the economic model of CSR states that the purpose of a business is to
generate profits, respond to market and quality demand. The model indicates that a business should focus
on its shareholders by maximising returns and obeying the law. The model argues that investments from a
business’s shareholders should not be spent on activities that do not provide returns. The model insinuates
that businesses are already providing the society benefits through taxations on their income and that
social responsibility is the job of the government.
The model tasks companies to be profitable, and according to Alho, T. (2018), Adidas fulfils this
responsibility. The company experienced substantial growth in sales in the year 2016, with worldwide
net sales at about 19.29 billion euros. This is estimated to be a 300 percent increase from 2001, the year
starting their sustainability reports. These statistics show that Adidas has fulfilled their economic
responsibility to be profitable.
Society.
The social pillar indicates that for a business to be sustainable, they need to maintain good and
supportive relationships with their stakeholders, community, and employees. Stakeholders and
communities support the business on the outside, while employees participate in business activities, so
keeping these groups happy is mandatory in order to be sustainable. “An example of social sustainability
in Adidas would be the fact that it creates a large number of job opportunities spread across the company
and its sub companies for the public to undertake. Adidas also gives attention to the society through the
making and selling of its clothes and shoes, which bring satisfaction to its customers”, (Taylor, 2016).
Importance of Sustainability.
Future State, (2018), describes the importance of sustainability as a mandatory part of business
success. Organizations with sustainability efforts in place are ahead of others, in the sense that they will
be in business for a long time. Some reasons why sustainability is important are as follows:
It helps secure the future for the business and people: the most important reason that people
continue working towards sustainability is for the continuity of people’s lives on the planet.
Sustaining the environment involves making the planet a safer place for people to continue
living, and this is a top priority for everyone. Sustainability of the business is also important
because it helps them gauge the future and how they are going to survive for the years to come
such as by identifying sources of raw materials.
As defined by Lake, L. (2019), the Marketing Mix is a combination of the elements that a business
engages with when selling products. The 4P’s that make up the marketing mix are:
1. Price.
This element refers to how much a product costs. The price set is determined through the value of
the product to the customers purchasing it. A low price will result in a product available for more
people, while a high price will simulate exclusivity and premium.
2. Product.
Product refers to what is being sold. One should look at the life cycle when handling products, as the
type of product determines its life cycle when it is sold to a customer.
3. Promotion.
This details how a company chooses to market the product to its intended audience, whether it
be through advertisements, direct marketing, billboards or others.
4. Place.
Place is where the product will be based and accessed by its customers, to either purchase or use.
The physical location often is a distribution centre, franchise or warehouse.
Source: Internet.
Source: https://stakeholderorgwed.wordpress.com/2016/04/14/adidas-and-the-4ps-to-achieving-
sustainable-ethics/
Source: https://www.worldatlas.com/articles/the-most-polluted-river-in-the-world-the-citarum-
river.html
Source: https://digital.hbs.edu/platform-rctom/submission/adidas-fighting-climate-change-in-the-
name-of-sports/