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A Case Study of Reebok International, Ltd

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A CASE STUDY OF REEBOK INTERNATIONAL, LTD

[pic 1]

In Partial Fulfillment of the Requirements in BA 204

Administrative Process and Organizational Development

Presented to:

DR. ANNABELLE BUGHAO

MBA Professor

Presented by:

JURELA A. BARDOQUILLO

MBA Student

Date of Presentation

January 30, 2016


TABLE OF CONTENT

  1. Current Situation                        ……………………………………… 4
  1. Current Performance                ……………………………………… 5
  2. Strategic Posture                ……………………………………… 6
  1. Mission        ……………………………………… 6
  2. Objectives        ……………………………………… 7
  3. Policies        ……………………………………… 7
  4. Strategies        ……………………………………… 8

  1. Strategic Managers                        
  1. Board of Directors                ……………………………………… 8
  2. Top Management                ……………………………………… 9

  1. External Environment
  1. Societal Environment                ……………………………………… 9
  1. Political
  2. Economic
  3. Socio- Cultural
  4. Technological
  1. Task Environment                …………………………..………… 11
  1. Internal Environment                ..…………………………………… 12
  1. Corporate Structure
  2. Corporate Culture
  3. Corporate Resources
  1. Analysis of Strategic Factors        .…………………………………… 13
  1. Situational Analysis
  1. Strength
  2. Weakness
  3. Opportunities
  4. Threats
  1. Review of Current Mission & Objectives ………….……………. 14
  1. Strategic Alternatives and Recommended Strategy …………………. 14
  1. Strategic Alternatives
  2. Recommended Strategy
  1. Implementation                        ……………………………………. 15
  2. Evaluation and Control                …………………….……...………. 15
  3. References/ Apppendix                ……..…………………….……….. 15

I. NAME OF THE COMPANY: REEBOK INTERNATIONAL, LTD

A. CURRENT PERFORMANCE

1. COMPANY PROFILE

  • 1890 Joseph William Foster developed cleated running shoes.
  • 1895, he joined with his sons and founded a shoe company named J.W. Foster and Sons.
  • 1958, two of the founder's grandsons started a companion company that came to be known as Reebok International, named for an African gazelle, which means “A Company on the Move”
  • 1979, Paul Fireman purchased exclusive distribution rights in North America, Reebok USA. Fireman introduced three new shoes to the market at $60.
  • By 1981, Reeboks sales exceeded $1.5 million when Reebok debuted the Reebok Freestyle aerobics shoe, the first athletic shoe designed for women.  Reebok's sales were $13 million. Started production facilities in Korea.
  • 1985, merging of Reebok Int’l and Reebok USA to Reebok International Ltd.
  • 1986, Reebok made its first strategic acquisition of The Rockport Company.
  • 1987, acquired Avia Group, Int’l
  • 1989, acquired Ellesse USA,Inc.
  • 1993, Reebok sold Ellese USA, Inc and Boston Whaler Inc.
  • 1997, Reebok products were available in 140 countries.
  • 1995, revolt of shareholders that owns 15% of the stocks and they resigned.
  • In 2001, Allen Iverson became the endorser.
  • 2004, Reebok acquired official National Hockey League sponsor the CCM.
  • 2006, Reebok acquired Adidas.

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  1. CURRENT SITUATION

2. PROBLEMS

  1. Backlog orders due to independent untimely deliveries
  2. Unanticipated shift of consumer preference
  3. Inaccurate forecast in consumer demands
  4. The risks of doing business abroad
  5. Intellectual property rights
  6. Deferred tax assets
  7. Costing problems
  8. Substantial Debt
  9. Inflation

3. PLANS        

  1. Continue to create fashionable, high quality products, that at all times will meet and exceed customers’ expectations.
  2. Communicate marketing themes and relevant messages that speaks directly to marketing segments.
  3. To work with retail partners and ensure availability of all products at all retail stores globally.
  4. Close coordination with international headquarters and distribution network.
  5. Enforcement of import quotas
  6. Surveillance of working conditions abroad.
  7. Imposing anti-dumping duties in raw materials.
  8. To monitor strict compliance of factory suppliers in Asia.

4. SALES PERFORMANCE

a. Athletic Footwear Industry

Exhibit 5: Industry Retail Sales, in Billion Dollars

1998

1999

2000

2001

Change

2000- 2001

Men’s

$8.470

$8.037

$8.236

$8.541

+3.7 %

Women’s

   3.951

   4.194

   4.486

   4.418

-1.5 %

Children’s

  2.332

   2.327

   2.394

  2.461

+2.8 %

TOTAL

$14.753

$14. 558

$15. 115

$15. 420

+2.0 %

b. Industry retail sales are shown by category from 1999-2001

Exhibit 6: Industry Retail Sales by Category in Billion Dollars

Category

1999

2000

2001

Change in

2000-2001

Running

$ 4.076

$4.383

$ 4.549

+ 3.8 %

Basketball

   2.606

   2.524

   2.822

+11.8 %

Cross- training

   2.126

   2.282

   2.220

-2.7 %

Walking

   1.267

   1.224

   1.218

-0.5 %

Athleisure

   1.121

   0.937

   0.971

+3.6 %

Recreational Boots

   0.466

   0.922

   0.802

-13.0 %

Hiking

   0.757

   0.726

   0.678

-6.6 %

Tennis

   0.524

   0.469

   0.571

+21.7 %

Sports Sandals

   0.349

   0.378

   0.355

-6.1 %

Aerobics

   0.320

   0.227

   0.216

-4.8 %

Other

   0.961

   1.043

   1.018

-2.4%

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