Adidas Economics
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Economics of Adidas
by
Georgi Kolev
Sem03
2011
Table of Contents:
1. Traditional organization forms of a company and kinds of risks involved in each of the different forms. 3
2. Factors in the economic environment influencing the business of Adidas© 4
3. Adidas© and Porter’s 5 Forces model. 5
-3.1 Major factors from each force and how they influence the industry. 5
1. Traditional organization forms of a company and kinds of risks involved in each of the different forms.
Organization of different companies is always different. It usually depends on the size of the firm and could be one of the following - U form (unitary form), M Form (multidivisional form), Flat organization, H-form (Holding company). The size of a company plays a major role because small organizations are usually managed centrally and the hierarchy is well thought out and clearly recognizable. On the other hand the larger companies tend to be a lot more complex internally and even if they have a well developed managerial staff the technological changes and other influences may be a reason for a change while searching for the most suitable organizational structure for them.
Here is a more detailed explanation of the organizational forms mentioned above:
U form (unitary form) is the term used to describe smaller companies whose activities are grouped into different departments like Human Resources, Marketing, Sales etc. Each of these departments is able to provide specialist expertise to the company’s operation. The managers of different departments have responsibilities to the chief executive who coordinates them and has to make sure they are on the right track and communicate well.
If the number of products is big the divisions have to be more complex as well - into geographical areas for example.
Possible problems with communication and control may occur if the company starts to grow because one manager cannot manage too many employees.
Economics of Adidas
by
Georgi Kolev
Sem03
2011
Table of Contents:
1. Traditional organization forms of a company and kinds of risks involved in each of the different forms. 3
2. Factors in the economic environment influencing the business of Adidas© 4
3. Adidas© and Porter’s 5 Forces model. 5
-3.1 Major factors from each force and how they influence the industry. 5
1. Traditional organization forms of a company and kinds of risks involved in each of the different forms.
Organization of different companies is always different. It usually depends on the size of the firm and could be one of the following - U form (unitary form), M Form (multidivisional form), Flat organization, H-form (Holding company). The size of a company plays a major role because small organizations are usually managed centrally and the hierarchy is well thought out and clearly recognizable. On the other hand the larger companies tend to be a lot more complex internally and even if they have a well developed managerial staff the technological changes and other influences may be a reason for a change while searching for the most suitable organizational structure for them.
Here is a more detailed explanation of the organizational forms mentioned above:
U form (unitary form) is the term used to describe smaller companies whose activities are grouped into different departments like Human Resources, Marketing, Sales etc. Each of these departments is able to provide specialist expertise to the company’s operation. The managers of different departments have responsibilities to the chief executive who coordinates them and has to make sure they are on the right track and communicate well.
If the number of products is big the divisions have to be more complex as well - into geographical areas for example.
Possible problems with communication and control may occur if the company starts to grow because one manager cannot manage too many employees.