AMIR ALI

Project

Subject: OTD Due Date: Jan 10, 2022

Instructor: M. Muzammil Ghayas Day: Monday
Program: BBA Section Code: ------
Name of Student: Amir Ali Reg # 10555

You have already read a lot about the OTD. Select a firm, and tell us about the main business of
the firm, its mission and vision. What kind of structure should it follow as per the nature of
business? Explain how the current structure helps the firm in achieving its goal. Explain the basis
on which you suggest that the current structure is the suitable structure for the firm? Are there
any structural misalignments? How do you know that there are structural misalignments? What
can you do to eliminate these structural misalignments?

PROJECT ON ADIDAS

INTRODUCTION

Adidas, in full Adidas AG, German manufacturer of athletic shoes and apparel and sporting

goods. Adidas products are traditionally marked with a three-stripe trademark, which remains an
element in the company’s newer “trefoil” and “mountain” logos. Today, Adidas is a global
leader not only in the shoe industry, but also in the sporting goods industry. Shoes from the
Adidas are available in virtually every country of the world. .Besides sports footwear, the
company also produces other products such as bags, shirts, watches, eyewear and other sports
and clothing-related goods. 

Page 1 of 5
 AMIR ALI
HISTORY
The history of Adidas is one of consistently meeting the evolving needs of the athlete. Focusing
more on function and less on fashion, Adidas strives to provide athletes with shoes that can make
a noticeable difference in their performance. Meeting athlete needs is what makes Adidas the
best.
Adidas Core Values
The Adidas brand lists its values as:
Performance
Passion
Integrity
Diversity

MISSION

“The Adidas Group strives to be the global leader in the sporting goods industry with
brands built on a passion for sports and a sporting lifestyle.

VISION

“To be the design leaders with a focus on getting the best out of the athletes
with performance guaranteed products in the sports market globally.”

ORGANIZATIONAL STRUCTURE

Page 2 of 5
 AMIR ALI
Traditionally Adidas has operated in a decentralized manner, with separate operating units
independently choosing software that suited their internal preferences and geography. Adidas has
begun implementing common processes to help establish a global direction and help regain its
competitive advantage.
Adidas uses functional, Divisional, Matrix and Hybrid structures. For instance, we mentioned
about the Functional structure, Adidas workers need knowledge about sports and the human
body, communication skills to meet a goal, and the design skills. As we know that Adidas is a
leading producer of sportswear and sports equipment, offering its products primarily through
four brands.

SYSTEM OF ADIDAS

The Adidas used the open system. As the type of organization structure that used by Adidas is
matrix design structure. Adidas groups people and resources by function and product. The
structure is very flexible. The employee in the projects, engineering and manufacturing
department could have two bosses, because they will work together according to the projects.
The employees will work with different people after a project end.

FORMALIZATION

Page 3 of 5
 AMIR ALI
When Adidas more concentrates on Formalization related to technology, Timberland gathers
their thoughts on the roles for human. Finally, there is no denying that Timberland seems a totally
flexible and an ideal working environment. They certainly allow their workers to challenge, build
one’s careers with appropriate positions, and give income that deserve employee’s outcome, and
provide enough leisure time to get refreshed outside the organization.

COMPLEXITY
The first criterion that needs to be analyzed when looking at how complex Adidas is internally is
looking at the vertical differentiation. Vertical differentiation takes a look at the total number of
levels in the organization. Adidas uses a matrix structure; this means that many employees report
to multiple managers. In order to have a successful matrix structure it is important for Adidas to
have both vertical and horizontal communication. Due to the massive size of Adidas it makes
sense to have a matrix structure in order to move the large amount of information that flows
through the organization faster.

Span of Control

As this is an international brand the middle managers and the lower managers have a wide span
of management with a lot of people working under them while there is narrow span of
management for the CEO as she is over the managing director, general manager of creative
development, GM of global initiative and the global directors who are answerable and report
everything to her about whatever happens in the firm.

CONCLUSION
The price of a share in German sportswear manufacturer Adidas has jumped to a new record high

Page 4 of 5
 AMIR ALI
after the firm reported solid earnings in the first quarter of 2013. Profit and margins rose in spite
of weaker markets. “The bottom line” of the market researches peaks that branded shoes all over
the world has been increasing on day by day basis. That sounds good for international as well as
domestic market

Page 5 of 5