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Adidas-Salomon: Incorporating Risk into Corporate Strategy |
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ExcerptsRisk ManagementMarketing RisksThe international sporting goods industry was highly competitive. Success depended on the correct assessment of future trends and challenges. adidas continuously gathered and analyzed business intelligence, including a qualitative assessment of the future business environment, in order to best identify strategies to avoid or lower risk... Operations RisksIndependent factories produced the vast majority of adidas products. Inferior quality and/or delivery delays had an impact on the Group’s revenue and reputation. To mitigate this risk, adidas employed more than 100 quality control officers who monitored factory performance... Social and Environmental Risksadidas’ Social and Environmental Affairs (SEA) team monitored the factories of adidas suppliers to ensure compliance with social, environmental, health and safety standards, creating and implementing action plans to ensure improvements where necessary... Legal RisksAs a global corporation, adidas operated under a wide variety of legal and regulatory frameworks. Finding solutions for various legal matters in numerous countries entailed risk for the Group, especially in the formulation of contracts, the resolution of corporate legal issues and the taking of legal action... Information Technology Risksadidas utilized a complex network of communications and applications in its business activities. Natural disaster, criminal mischief or IT mismanagement might result in a severe disruption of its business... Financial RisksCurrency Risk Exhibits
Exhibit I: Financial Highlights
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