GROUP ASSIGNMENT MGT 1013 ADIDAS INC.

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KOLEJ PROFESIONAL MARA BANDAR PENAWAR

MGT 1013
PRINCIPLES OF MANAGEMNET

ASSIGNMENT TITLE: MANAGEMENT OF ADIDAS INC.

NAME OF STUDENT : MUHAMMAD HAIQAL BIN MOHD
RIZAHUDDIN
STUDENT ID JUAINI BINTI JUHAMSUL
MUHAMMAD ALIFF AMZAR BIN MUHAMAD
PROGRAMME/CLASS AZHA
CURRENT SESSION NORADZRIEN FARISHA BINTI MOHD ZAIDI
NAME OF LECTURER MUHAMMAD IZZAT BIN MOHD AMRI

DUE DATE : PDL2107002
SUBMISSION DATE PDL2107078
PDL2107094
PDL2107092
PDL2107056
: DLM / DLM1B
: 2/2021
: NOOR HAZANIAH BINTI BAHARIN
: 07 OCTOBER 2021
: 07 OCTOBER 2021



1. BUSSINESS OPERATION

Company types of departmentalization

• product departmentalization.

- it is employee based on major product areas in the corporation .

- for adidas it has women”s footwear and man’s footwear
• customer departmentalization

- employees based on customer’s problems and needs

- for example wholesale ,retail , government

• Advantages for product departmentalization
- It ensure better customer service . The product will always available for
customer when they need .
- It ensure better quality of the product. Product departmentalization follow
the principle of specialization in a product or service . So that’s why the
product from adidas high quality
- Because of specialization it ensure optimum utilization of human and non
human resources
- Departmentation by product and service helps in evaluating the performance
of each department. This helps to control organization easily
- Production departmentation is flexible in nature. It is easy to add new product
line if needed.
- Product departmentation helps to improve skill and talent of managers

• Advantages for customer departmentalization
- Departmentalization by customer method is suitable for those organizations
dealing with different customers

- Customer’s needs and wants can be easily recognized as they are treated
separately.

- Good cooperation between customers and organizations can be maintained.
- Management can concentrate on clearly identified and potential customers

thus their level of satisfaction will be very high.
- Customers help for the promotion of the products and service because of the

high level of satisfaction.
- Special attention can be given to the taste and preference of customers.
- It is adaptable to environmental change

- It provides the benefits of specialization.

2. Impact to the decision making on your company’s business operation

The global spread of the coronavirus during the first quarter of 2020 led to a significant
number of store closures – both own- and partner-operated – and a pronounced traffic
reduction within the remaining store fleet, with a corresponding negative impact on
adidas’ top-line development. Continued strong currency-neutral growth of 35% in e-
commerce – the only channel that has remained fully operational in most parts of the
world – could only partially offset the material revenue decline in the physical channels.
As a result, the company’s currency-neutral revenues decreased 19% in the first quarter,
reflecting a 20% sales decline at brand adidas.

The significant revenue declines the company has been experiencing in Greater China
since the end of January as well as in Japan and South Korea in March drove the
combined currency-neutral sales of the adidas brands in Asia-Pacific down by 45%. This
development was mainly driven by a sales decline of € 800 million (-58%) in Greater
China, which also reflects product takebacks in a triple-digit-million euro amount to
manage inventory levels in the market. While stores in Greater China and South Korea
reopened during March, closures came into effect in most other parts of the world
following the rapid global spread of the coronavirus. Up until this point, the company had
recorded currency-neutral revenue growth of 8% outside of Asia-Pacific for the first two
months of the year. The negative impacts from the subsequent closures offset these
sales increases, thereby significantly weighing on the first quarter sales developments in
Emerging Markets (-11%), Europe (-8%), Latin America (flat), North America (+1%) and –
to a lesser extent – in Russia/CIS (+9%).

Adidas doesn’t break out its China sales separately but notes they make up about two-
thirds of its Asia-Pacific business (pdf, p. 117). In the first quarter of 2019, sales in that
region totaled €2.14 billion (pdf), meaning China would account for roughly €1.43 billion.
Based on those figures, coronavirus will wipe out more than half Adidas’s China sales for
the first quarter of 2020.

Adidas said since the end of February its stores and warehouses have been reopening
and some shoppers have returned. Though it has faced some disruption in its supply
chain, which like other companies counts on China for raw materials and manufacturing,
none have been major, and it said most factories in the country are operating again.

Coronavirus’s impact on Adidas isn’t limited to China, however. As the virus has spread,
it’s kept shoppers from spending in places such as Japan and South Korea too. Adidas is
now anticipating sales in those countries to fall by roughly €100 million, according to
Reuters, and for first-quarter sales of its entire business to decline more than 10%. The
company said there’s still too much uncertainty for it to reliably quantify how big an
effect the outbreak will have on its business in 2020. Its stock price was down more than
11% as of this writing.

The forecasts put a damper on what was otherwise an upbeat set of results from Adidas.
In an interview with Bloomberg TV, CEO Kasper Rorsted called 2019 “the best year in the
history of our company.” Sales for the year were roughly $26.6 billion, a boost of 6% over
the prior year, excluding currency effects. The fourth quarter in particular saw strong
results in key areas, such as Adidas’s e-commerce sales and its business in Europe, which
is growing again after struggling at times over the past two years.

2. HUMAN RESOURCEMENT SECTION
These are the core values found in Sport is the soul of the Adidas Group.

Consistent with these guideline Standard Operational Procedure (SOP), we expect our
partners and others to conduct themselves with the almost fairness, honesty, and
responsibility, in all aspects of their business.

Specially, we expect our business partners to operate workplaces where the following
standards and practices are implemented.

*SINCE THE COVID-19 VIRUS HIT AROUND THE WORLD, COMPANY HAS ADDED
NEW S.O.P TO ATS GOVERNMENT DIRECTIVES TO CURB THE EPIDEMIC.

Code of conduct for employee: “FAIR PLAY”
The Code of Conduct expresses our company values alongside other information, guidance
and additional resources in order to allow understand how ethical and compliant decision
making is essential at Adidas. It is applicable for all employee, managers, officers and
Executive Board members of the company and its affiliates who are obligated to live up to
the high expectations that we set ourselves in the Code of Conduct. They must also certify
their compliance with Code, and disclose any potential conflict of interest or any possible
exception to compliance with the Code.

WAGES & BENEFITS
Wages must equal exceed the minimum wage required by law or prevailing industry.
Wages are essential for meeting the basic needs of employees and reasonable savings and
expenditure.
Increasingly there has been a shift in responsibility from government to employers, for
providing social security and others benefits. In many countries, that responsibility now is
being shared by the workforce also.

WORKING HOURS
Employees must not be required, extraordinary circumstance, to work more than 60 hours
per week including overtime. Employees must be allowed at least 24 consecutive hour rest
within every seven-day period, and must paid annual leave.

DISCIPLINARY PRACTISE
Employees must be treated with respect and dignity. All employee must comply with all
laws that have been set by the company. Otherwise, fines will be imposed on any employee
who violates them.
Due the pandemic employee must be discipline itself even though they working from home.
They must responsible with their working time.

HEALTH AND SAFETY
A safe and hygienic working environment is the first impression employee and partners
about Adidas company. So that, we improve our safety work environment to make sure our
employee did not suffer injuries while on duty.
Workers must make a swab test every 2 weeks in a month for precautionary measure.
Employees need to get a complete vaccination before starting work.
Before entering the workplace workers must scan my sejahtera and use hand sanitizer.

FREEDOM OF ASSOCIATION
Communication is the main key in the workplace. Communication not only to promote
goods but as a way to get agreement in the organization. Therefore, the essentials that
employees can communicate with management. Employees can also provide their ideas
during the meeting.
However, communication time working can make environment of workplace be happy.
Employee will feel with the work being done.

NEW INTAKE FOR OCTOBER

THIS ADS HAVE BEEN CONSIDERED IN LINE WITH THE
PANDEMIC

3. TIPS WORKING FROM HOME

1.Plan your daily schedule
With good daily schedule you will be able to carry out task well and be ableto devide time
well between work and personal time, at the same it can helpus to avoid stress.
2.Create a special place to work
Need to make sure your workplace is quiet and not being disturb by anyone else.
It help you to avoid any distraction and can stay focused on your work.

3.Eat healthy food
You need to take healthy food for healthy body. When your body is healthy youwill work
well. Moreover you need to avoid junk food such as burger and cake,the reason is it have
many bad effects to either your physical or mental health.
4.Play some music
You can play some music at a moderate volume because for certain people itwill help to control their
emotions, being more relax and can keep them to stayfocused while doing their work.
5.Take some break
You can took some break about 5 to 10 minutes every 1 hours. The reason is,you must give some
space to yourself to cool down, avoid from being stressedout and prevent from mental exhaustion
6. Do some exercise
During work time maybe you can do some stretch or you can walk around fora while. When you has
finished your work, you can do some relaxing exercisesuch as yoga to reduce stress. It will ensure
your mental and physical wellbeina.