Arab Open University. Tutor Marked Assignment (TMA)

Transcription

1 Arab Open University Tutor Marked Assignment (TMA) * The type of Adidas s Annual Report (financial or managerial):- Primarily, the report is a financial accounting document. Evidence of this :- 1- This report is available for external stakeholders. 2- On page 210 we find statement of financial position, and on page 216 we find statement of cash flow. Both of them Primarily are important for external users. 3- On page 159 of this report under title "Accounting policy unchanged" they wrote: -"The Group's consolidated financial statements are prepared in accordance with international Financial Reporting standards IFRS as adopted by the EU. " 4- This report focuses on the information in the past period * the four key elements in Adidas's strategy :- 1- Group Strategy :-The company aims to be the first global in the sporting goods industry. It is through understanding and expect customer needs and create innovation and strengthen the company competitiveness. 2- global sales strategy :- This strategy contributes to increased trading performance in company and provide the service to consumers through major channels :- Retail, ecommerce and Wholesale. 3- global brands strategy :- The main objective of this strategy is to ensure the maintenance of market share through creating innovative products and contact with the target consumer in a compelling and engaging way. 4- Other business strategy :- Mainly, It cover 3 segments :- A- TaylorMade-Adidas Golf. B- Rockport. C- Reebok-CCM Hockey. Each one of these segments has a Special strategy that works to cover the need of a specific group, and expanding the company's market share. For example :- The TaylorMade-Adidas Golf has a special mission it is will increase the sales and profits to become a leading golf company in the world

2 * The Characteristics of information " in the operational levels to decision making" :- 1- Accuracy: - Information must be accurate "What is the purpose of them, and were used it ". 2- Timing :- Information must be to use on time. 3- Accessibility and Availability :- Information should be easy to access. 4- Conciseness / Level of detail :- Information should be short, concise and tidy. 5- Appropriateness/Relevance :- Information should be relevant. 6- Objectivity or Reliability :- Information should be truth, actually and really. * The relationship between information and the company's competitive strategy :- Companies use long-term strategy to have a competitive advantage with other companies, to apply this strategy the company needs valuable information about the competition to lead them * Leadership:- Firstly, to define leadership accurately and clearly. To get to this we need to define the verb to lead like leader and leading :- It is person who can make the right decision in difficult times faster and the effect on the people around him. * The main Leadership Characteristics :- 1- he has a Futuristic outlook and quick reaction. 2- he has a capacity for flexibility and adapt. 3- he has a capacity to Good Communicator. 5- he has the ability to learn and open to Change. 6- Enthusiastic and Resourceful and Initiative. * The ways used in the Adidas to support and improve its leadership: - For that, Employees were divided into programs for development of leadership they have. Are: - 1- Executive Development Program (EDP): a global, for employees in the executive level. 2- Management Development Program (MDP): a global program which is executed regionally for employees to be in director positions.

3 3- People Manager Development Program (PDP): a global program which is executed locally to employees at a professional level to be a senior manager. In addition, company offer tailored graduate programs:- 1- The Business Management Program (BMP): - "24 month" Aims to attracting professionals with MBA degrees to prepare them for future management positions 2- The Functional Trainee Program (FTP) :- "18 month" Aims to attracting graduates with an international background and excellent educational credentials the opportunity to start a functional career within the Adidas Group. * Adidas's organizational structure Play an important role in developing its competitive advantage over the last couple of years by :- 1- the multi-brand structure :- As a true global brand with German roots, Adidas is mainly targeting competitive sports based on innovation and technology with Adidas Sport Performance. This subbrand is the multi-sport specialist. 2- Contracting with athletes from top model as Messi, NHL players such as Sidney Crosby, CCM s roster of player endorsers includes Joe Thornton. 3- keeping the clarity of brand messages and values: - the positioning of Adidas, Reebok and their respective sub-brands are based on their unique DNAs, their history and their values * Roles of the accounting system play in the formulation and execution of Adidas Group s strategy :- Adidas strategy is built on the basis of create long-term value. By promoting the competitiveness and maximize operational and financial performance of the company This, in turn, will drive longterm value creation for our shareholders. To achieve this goal the company have key strategic pillars in investments :- Can be summarized in :- 1- Creating long-term shareholder value. 2- Investments focused on highest-potential markets and channels.

4 3- Creating a flexible supply chain. 4- Leading through innovation. 5- Develop a team grounded in our heritage. 6- Becoming a sustainable company * The three ways to develop the skills of the staff in the Adidas :- 1- Leadership :- Planting and activating the skill of Leadership Excellence. - For example: - In 2012 the company has worked hard to develop this concept for every leadership team through programs "Almost 80 leadership teams". 2- People :- Systematically promote motivation and accountability through talent and performance management. Through four ways :- A- Enabling employees to reach their personal best. B- Performance-driven remuneration system. C- Creating an attractive work environment. D- Employee engagement measured regularly. 3- Capabilities :- Create the foundation for open, innovative and collaborative learning solutions. Through :- - Online communication platforms to drive employee engagement and learning * The importance of financial information for: Adidas s Board of Directors : - A- To help them to measure the economic situation.

5 B- To help them understand the factors that affect industrial activities. C- To help them understand the factors that affect business performance and operating activities. 2 - Adidas s suppliers : - 1- To assess the state of the economy with the company. 2- Appraise how companies are faring in the competitive landscape. 3- To appraise the economic soundness of customers to deal with on a long-term basis. 3 - KPMG :- 1- Review of data and information. 2- Review the accuracy of information contained The report. 3- The ratification of the report it is compatible with GAAP. * The strategic importance of the process of hiring and retention at Adidas :- - The answer to this question is divided into two parts :- A- In hiring process :- Company provides an opportunity for young people who want to join the group directly from school to gain business experience in a three-year rotation programme.the training program includes three sections :- 1- In retail. 2- industrial management. 3- IT. For example :- at the end of 2012 the company employed 56 trainees in Germany. after that submission global internship programme offers students three to six months of work experience within the adidas Group. It plays a key role in company's recruiting strategy. B- In retention process :- In this area the company has provided a number of programs which they can staff retention :-

6 1- Performance management :- In this section are evaluating the performance of employees and 2012 $ 2011 $ Different $ work to develop their performance for the better. 2- Succession management :- The company works to ensure stability and certainty in business continuity. And to achieve this through a globally consistent succession plan which covers successors for director level positions and the highest. 3- Performance-driven remuneration system :- The company have conformist to rewarding our employees with compensation and benefit programmes. 4- Bonus programme :- company have implemented a global bonus programme. This programme combines individual performance and corporate performance to further drive a high-performance culture within the adidas Group. 5- Profit participation programme:- Provides for employees who do not participate in the bonus programme called the Champions Bonus. 6- Long-term incentive programmes:- company's give it to retain our top leadership,and offers Long-Term Incentive Programmes (LTIP) for leaders and Executive Board members. 10- The tennis shoe case :-

7 Sales Revenue 750, ,000 = 150, Profit 100,000-60,000 = 40,000 = = = = Total Cost 650, ,000 = 110,000 * Variable cost = Total Different Cost - Increased In Cost = 110,000 $ - 26,000 $ = 84,000 $ * Variable cost % = Different Variable Cost Different Sales Revenue = 84, ,000 = 56 % * contribution margin % = 1 - Variable cost % = 1-56 % = 44 % OR = 0.44 A- Breakeven Sales In 2012 = Fixed costs contribution margin % = 84, = 190, % B- Breakeven Sales to achieve Target Sales of $210,000 = ( Fixed costs + Target Sales) Contribution Margin % = ( 84, ,000 ) 0.44 = 668, $ C- If the company's introduced a new product and, there is no change in the fixed cost, variable cost and the price. This means that the break-even point will be fixed and will not change.

8 References :- - Module team. (2011) "The Role And Context Of Manegment Accounting", 1 st ed. UK :- The open university. - Horngren, T., Harrison, T., and Oliver, M. (2009) "Financial & Managerial Accounting", 2nd ed. London: Pearson Education. - Adidas group. (2013) " Adidas Group Annual Report 2012", Available at :- (Accessed: 2014,April 2). - Module team. (2011) "Cost Analysis For Planing Decision Making", 1st ed. UK :- The open university. - Klagge, J. (1996), " Defining, discovering and developing personal leadership in organizations", Leadership & Organization Development Journal, Hayward, S. (2010), " Engaging employees through whole leadership", STRATEGIC HR REVIEW, VOL. 9 NO. 3, pp