Economical issues within Adidas’s organization are the fact that they provide employment within a variety of countries worldwide; moreover to decrease outlay Adidas has agreed ‘manufacturing contracts’ to other countries. Likewise, ‘Labor charges’ to manufacture their products are significantly higher in Germany where the foundation of Adidas was established. Therefore, the majority of factories are based within the Asian region. (Hale,2002)
Social elements that need to be considered within Adidas’s organization are, for example, Adidas sell their foot ware products worldwide; however they need to consider where their highest potential customers are. Within the United Kingdom there are many cities which most of them have local football teams. Moreover within London alone they have several; therefore the United Kingdom has a substantial consumer base. Furthermore, Adidas should take opportunity of this within the football seasons by promoting their products to expand their sales revenue.
Technological equipment should be utilized to the best of its ability. For example, using quality information systems and consistently updating their webpages. By doing this it gives Adidas the opportunity to have efficiency in operations which primarily will improve their overall production. Therefore by doing this it will offer a high standard of customer service, likewise it can keep them in the lead of their market and may even give them an advantage over their competitors.
Environmental issues concerning Adidas are matters such as animal rights. This is because Adidas foot ware is produced from animal skin. Furthermore, as mentioned above Adidas produce their products mainly in China. The main reason for this is because of cheap labor, therefore Adidas need to consider the publicity they will
References: Adidas, Sports Perfomance, Adidas Performance, Adidas Product Performance, Adidas Eyewear, Adidas Watches, Fibre2fashion. [online] Available at: http://fashiongear.fibre2fashion.com/brand-story/adidas/performance.asp [Accessed: 8 Feb 2013]. Google Books (n.d.) Business Environment. [online] Available at: http://books.google.co.uk/books?hl=en&lr=&id=09uqSNHNT9EC&oi=fnd&pg=PT19&dq=PESTLE+ANAYLISIS+BUSINESS&ots=tguZ_vew56&sig=5rnhoWMOIgkbTUCa61Dj55PuZPM [Accessed: 8 Feb 2013]. Sciencedirect.com (2004) ScienceDirect.com - European Journal of Operational Research - Strategic development and SWOT analysis at the University of Warwick. [online] Available at: http://www.sciencedirect.com/science/article/pii/S0377221703000626 [Accessed: 8 Feb 2013] Onlinelibrary.wiley.com (2002) What Hope for ‘Ethical’ Trade in the Globalised Garment Industry? - Hale - 2002 - Antipode - Wiley Online Library. [online] Available at: http://onlinelibrary.wiley.com/doi/10.1111/1467-8330.00141/abstract [Accessed: 8 Mar 2013]