Organizational Design of Adidas - 1985 Words

Organizational Design of Adidas 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 RD, 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†¦show more content†¦Adidas also has offices all over the world which work as sales centers of its product in their respective countries. Adidas soon wants to finish manufacturing all sorts of products. It wants its products to be manufactured by subcontractors. It only wants to take care of the marketing of its brand and products. In the past, Adidas had been following the traditional â€Å"footwear and apparel† structure which was being followed by most of the sports equipment companies. To cope with uncertain and competitive environment, most of the footwear and apparel companies shifted to flexible structures to deal with the environmental uncertainties. For example, Nike and Reebok shifted to a â€Å"Network Structure†. A network organization is a collection of independent, mostly single-function firms. The dynamic network structure describes not one organization but the web of interrelationship between many firms. The network as whole can display the technical specialization of the functional structure, the market responsiveness of the product structure and the balance and flexibility of a matrix. [pic] In 2000, Adidas announced revolutionary new three divisional structure. This structure had never been followed by any other organization before. In this structure, Adidas divided its products into three divisions. The divisions were named as â€Å"The Forever Sports Division†, â€Å"The Original Division† and â€Å"The Equipment Division†. The divisions are dealt asShow MoreRelatedTransformation Is Run By Ceo Carole Anne Hilton1551 Words   |  7 Pagessustainability. Their company goal is not solely based on maximization of profits but it is to engage and ready the community in which their business is conducted and use that to accomplish their goals. Transformation runs their business in a way that designs work where people can be empowered and they have to carefully choose who the best employee for the job is. Helen M. 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