In this chapter, we have reviewed the Organizational Structure and Culture of Adidas. Though Adidas-Salomon is a company, which is in the business of manufacturing and marketing a wide range of products, the emphasis of our study is on the footwear business (core business) of Adidas.
A Review on the Organizational Structure of Adidas
The Head Quarter of Adidas-Salomon is situated in a small town named Herzogenaurach in Germany. This head office only manages the support function of Adidas such R&D, marketing sales etc. and that too of the European, African and Asian regions only.
The American region is monitored by Adidas America, which is an autonomous division and has been made to increase the market share of Adidas in USA. Adidas America has got its own support functions, which help it respond to the market needs as quickly as possible.
In 1997, Adidas acquired “Salomon”, one of the world's leaders in sporting goods. The acquisition broadened its product range through the addition of three leading sports brands. “Salomon” for winter sports equipment, “Taylor Made” for golf equipment and “Mavic” for cycle components.
The core brand of Adidas-Salomon is Adidas which is in the business of making athletic equipment, footwear and apparel. Adidas has gone through a lot of structural changes since 1924 i:e when two brothers Rudolf and Adi Dassler founded this shoe making company.
In 1948, the two brothers split from each other and Rudolf founded a rival sporting company named “Puma”.
Adidas started growing and to cut its prices short, it started manufacturing its products outside Germany. It moved to countries such as the Czech Republic, Hungry, Poland and Russia.
As the company grew big, it was rent by family quarrels. As Adi’s son, Horst, split with his parent and opened a rival branch in France, complete with its own designers and factories. Horst eventually took over the parents company in 1985. By then, Adidas’ share of the