IIUI

Business Report to Open Store of Adidas in Pakistan

Assignment

Submitted By :

AroosaSheher

Sharmeen

ASSIGNMENT

THE ADIDAS REPORT

EXECUTIVE SUMMARY

Adidas, a German multinational corporation that design and manufactures sports clothing and accessories. It is the largest sport-wear manufacturer in Germany and Europe and the second biggest sportswear manufacturer in the world. Adidas wants to open its store in Pakistan. The study investigate possible accounting problems Adidas might have encounter. The study consisted of analysis of problems and offering possible solutions based on information collected from research of local business. The conclusion drawn from the analysis is that in the present environment the company would benefit from opening its store in Pakistan. A number of recommendations are made concerning the establishing the new store in Pakistan is to target the customer with low cost and quality and produce innovative products that make them better for once.

Table of contents

Section Page no

Executive summary…………………………………………………………………

Table of contents……………………………………………………………………

1. Introduction…………………………………………………………………………. 12. Findings……...……………………………………………………………………… 1

2.1 Marketing ………………………………………………………………... 22.1.1 Target Market …………………………………………………22.1.2 Pricing …………………………………………………………22.1.3 Distribution …………………………………………………....22.1.4 Promotion ……………………………………………………. 2

2.2 Management Plan………………………………………………………….3

2.2.1. Sole proprietorship ……………………………………………..3

2.2.2. Partnership ………………………………………………………3

2.2.3. Corporation ……………………………………………………...3

2.3 Financial Plan ……………………………………………………………..32.4 Competitors………………………………………………………………..3

3. Conclusions and recommendation………………………………………………………...4References

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1. INTRODUCTION

Adidas is the largest sport-wear manufacturer in Germany and Europe and the second biggest sportswear manufacturer in the world.  Besides sports footwear, Adidas also produces other products such as bags, shirts, watches, eyewear, and other sports- and clothing-related goods.The company is interested in expanding its store chain in Pakistan’s populated areas as nowadays people are very into sports for healthy lifestyle change. Many would choose to purchase good quality equipment’s from well-known brands. Although Adidas serves the more exclusive market, it is the choice of the majority of people who enjoy sports.

The purpose of this report is to provide information about:The problems company has to face in the local business and they are needed to be considered in ensuring the success and profitability of opening any new outlet.

In the analysis of the issues following method is used considering the external environment in which business operates and the external elements that an organization faces in their immediate environment, where the proposed business would be located. Data of study came from research reports and local business reports.

The report is divided in such a way that in first section finding section: includes problems which will effect business, second section: includes solution and recommendations for these problems.

2. FINDINGS

Adidas is a well-known sport shoes brands that is commonly found internationally. To establishing a new store of Adidas in Pakistan following questions should be answered

1. Is Adidas positioning itself well enough to its target market?2. Has Adidas been able to keep up well with its competition in terms of added value?3.  Is Adidas being sold at a premium price that it does not fully capture its target markets

budget or spending?

And the research study refer to “It’s all about Adidas” ( Soh Wei Chee, Chai Juan Rui, Yong Chun Cheng et al. 2013, p.1) answer these questions as

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-Adidas is the top brand of choice for the majority of their target markets

-Adidas is considered super competitive, with purchase of reebok and owning a big market share in the sport shoes industry, is able to be the top choice for its target markets.- Adidas is sold at a premium price that while many consumers want it lower, they are still willing to pay to buy a pair. Even with small discounts from sale price, consumers’ willingness to pay is there.

Now the Problems which might be faced as stated in “The Challenges of Starting a Business” (Collins et al. n.d, chapter2) are

2.1 Marketing

This critical section focuses on four marketing-related areas—target market, pricing, distribution, and promotion.

1.1.1. Target Market

Describe future customers and provide a profile of them based on age, gender, income, interests, and so forth. Adidas is the first athlete brand which will target the athletes and sports lovers. Adidas theme is “For the Love of sport” all the team put its dedication and energy in this mission.

1.1.2. Pricing

Each product of Adidas should be better in quality, comfort and balance in price from the competitors.

1.1.3. Distribution

To distribute goods or services to customer’s retail outlets should be established in commercial areas.

1.14. Promotion

Promotion strategy should be such that all the customers are get excited by getting the news as Adidas is opening in their city. Clear demonstration of the products should be promoted through all media.

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2.2 Management Plan

It isn’t enough just to have a good business idea there is a need of talented management team that can turn the concept into a profitable venture. The management plan section provides information about the qualifications of each member of the management team. Its purpose is to convince the reader that the company will be run by well-qualified, experienced managers. It describes each individual’s education, experience, and expertise, as well as each person’s responsibilities. This section also specifies the proposed legal form of the organization:

2.2.1 Sole proprietorship

The sole proprietorship is the simplest business form under which one can operate a business. The sole proprietorship is not a legal entity. It simply refers to a person who owns the business and is personally responsible for its debts.

2.2.2 Partnership

A partnership is the relationship existing between two or more persons who join to carry on a trade or business. Each person contributes money, property, labor or skill, and expects to share in the profits and losses of the business.

2.2.3 Corporation

A corporation is a company or group of people authorized to act as a single entity (legally a person) and recognized as such in law. Early incorporated entities were established by charter (i.e. by an ad hoc act granted by a monarch or passed by a parliament or legislature).

2.3 Financial Plan

It reports the amount of cash needed by the company for start-up and initial operations and provides an overview of proposed funding sources.

2.4 Competitors

Clearly define the goals how and what is the difference between the Adidas and the other competitors. The slogan of Adidas: For love of sport made the difference.

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3. CONCLUSION AND RECOMENDATIONS

The main objective of this study is to analyze the problems that might be encounter while opening a new business .This study provides the basic introduction of the company and considered the marketing, management’s issues that would affect the business. The conclusion drawn from the study is that opening a new store is profitable if it is beautifully managed.

From the study following recommendations are made:

1. Thetarget customers should be Kids, Men, Women and Athletes.

2. The focus is on high quality and comfort rather than low price and bad services.

3. Should hire the highly motivated staff.

4. Products and quality should be best.

REFERENCES

Collins (n.d) .The Challenges of Starting a Business, CHAPTER 2.Retrieved from http://www.prenhall.com/behindthebook/0131403656/pdf/Collins_CH02.pdf

Soh Wei Chee,Chai Juan Rui ,Chun Cheng,Wong Wei Hon . (April, 2013).It’s all about Adidas.Retrieved from http://taylorsadidas.blogspot.com/