Josue David Munera Rangel

For a firm you are familiar, research the mission statement, aims and objectives. Then do the
following:
ADIDAS

Adidas has its roots in Germany but we are a truly global company. Around the world we
employ over 57,000 people. Employees from about 100 nations are working at our global
HQ in Herzogenaurach, Germany – the ‘World of Sports’. Every year we produce over 900
million sports and sports lifestyle products with independent manufacturing partners
worldwide. In 2018 we generated sales of € 21.915 billion. These numbers alone can easily
suggest that adidas is quite a large and also multifaceted organization. True. But we keep
things simple, lean and fast. And we will use this approach now to give an overview of what
our company is all about.

MISSION STATEMENT: We want to be​ the best sports company in the world​. What does
that mean? Well, to us ‘best’ means that we design, build and sell the best sports products in
the world, with the best service and experience, and that we do so in a sustainable way. But
‘best’ is also what our consumers, athletes, teams, partners, media and shareholders say
about us.

AIMS:
- Identify whether the aims and objectives are financial or non-financial.
FINANCIAL
NON FINANCIAL

● Speed – How we deliver:​ ​Putting our consumers at the heart of everything we do

and serving them in the best possible way means that we need to ensure that they
always find fresh and desirable products where and when they want them. We will
become the first true fast sports company.
● Cities – Where we deliver​: Urbanization continues to be a global megatrend. Most
of the global population lives in cities. Cities are shaping global trends and
consumers’ perception, perspectives and buying decisions. We have identified six
key cities in which we want to over-proportionally grow share of mind, share of
market and share of trend: London, Los Angeles, New York, Paris, Shanghai and
Tokyo.
● Open Source – How we create​: T ​ his is all about collaboration and innovation. About
learning and sharing. We are opening the doors of our brands inviting athletes,
consumers and partners to co-create the future of sport and sports culture with us.
● Sustainability:
➔ WE VALUE WATER: Water is essential for life. It is also a key resource for
our industry. In order to tackle the ever-growing issue of water scarcity and
achieve water stewardship 1 , we have developed an approach addressing
water efficiency, quality and accessibility
 ➔ WE INNOVATE MATERIALS & PROCESSES: We create the best for the
athlete, while optimising our environmental impact. We are committed to
steadily increasing the use of more sustainable materials in our production,
products and stores. At the same time, we are driving towards closed-loop
solutions.
➔ WE CONSERVE ENERGY Energy is the fuel of the body. The responsible
use of energy is also critical for our planet to survive. In order to mitigate
climate change, we are committed to reducing our absolute energy
consumption and CO2 emissions, transitioning to clean energy and looking
into energy harvesting opportunities
➔ WE EMPOWER PEOPLE: People are at the heart of everything we do. Like a
coach ensures that all of the players on the pitch are in the right position for
the best results, we empower people to exercise their rights and unlock their
potential.
➔ WE IMPROVE HEALTH Sport is the key to an individual’s health and
happiness. Our aim is to enable people around the world to participate in
sports, while educating them on physical and mental health, fitness and
nutrition. This will ultimately allow them to lead a healthier and more fulfilled
lifestyle.
➔ WE INSPIRE ACTION We work hard every day to inspire and enable people
to harness the power of sport in their lives. Likewise, we want to keep driving
change in our industry by leading by example.

● ACCELERATED GROWTH:​ ​With the three strategic choices driving a surge in brand
desirability, the adidas Group expects to generate high-single-digit currency-neutral
sales growth per year on average over the next five years. By outperforming the
sporting goods industry, the Group’s brands will increase market share over the
period and thus expand its ability to generate attractive margin expansion and
operating leverage. As a result, the bottom line is expected to grow at a faster rate
than the top line, with net income forecasted to increase by around 15% on average
per year until 2020 compared to the expected 2015 results.

- Link the objectives to the relevant aims that they should help to achieve.

● Speed: ​With adidas NEO, the Group has already set new standards with regard to
speed to market by significantly reducing production lead times and increasing
in-season creation. Drawing on these successful experiences, the company intends
to roll out this mantra of ‘speed’ across the entire Group. To complement this, the
adidas Group will further increase its sales through controlled space activities to
above 60% of sales. At the same time, the Group aims to expand its eCommerce
business to above € 2 billion by 2020, by implementing a true omni-channel
 approach. Further, the company is going to evolve production capabilities to
dramatically expand product customisation options for its consumers.
● Cities:​ ​With 80% of global GDP generated in cities and global trends being
increasingly shaped in metropolitan areas, the adidas Group aims to continue its
growth in all relevant geographic markets with a focus on six global key cities: Los
Angeles, New York, London, Paris, Shanghai and Tokyo. Across these cities, the
adidas Group will over-proportionally invest in talent, attention and marketing spend.
● Open Source ​: ​In order to capture growth opportunities even more effectively
than before, the adidas Group will focus investments across its core brand
portfolio: adidas, Reebok and TaylorMade. Further, the Group unleashed
open source, a strong commitment to further strengthen the company’s ties
with its consumers. By increasing consumer desire in how the Group creates,
designs and presents products, the adidas Group will engage with
consumers, athletes, retailers and partners more than ever before, make them
become part of its brands and, as a result, increasingly build brand advocacy.
Already today, the adidas Group is working together with some of the world’s
most creative and innovative influencers and organisations such as Stella
McCartney, Kanye West, BASF or Google.
● ACCELERATED GROWTH: To foster our brand momentum and accelerate sales
and earnings growth, we introduced a number of initiatives that we will focus on in
addition to the three strategic choices and our corporate culture – ​Portfolio, North
America, Digital and ONE adidas.

● Portfolio: This is all about more focus and less complexity. We are constantly
revisiting and sharpening the focus of our brand portfolio, fully concentrating
on adidas and Reebok and on our core competencies in footwear and
apparel. This will allow us to reduce complexity and pursue our consumer in a
more targeted and consequent way.
● adidas North America: North America represents the biggest market in the
sporting goods industry with a total share of approximately 40%. It is the
single biggest growth opportunity for the adidas brand. That is why we have
made North America a strategic priority and started to significantly increase
our investments into our US business – people, infrastructure, marketing and
point-of-sale – in order to be more relevant and always visible to the
consumer.
● Digital: The digital transformation is fundamentally changing the way our
consumers behave and the way we work. Technology has enabled us to build
more direct relationships with our consumers. With our relatively young
workforce we are in the unique position to continuously improve our digital
capabilities – not only to interact with the consumer, but also to become
faster, better and more efficient in every part of the organization.
● ONE adidas: We continuously strive for operational excellence. ONE adidas
encompasses a set of initiatives that will enable us to work smarter, more
efficiently and in a more aligned way. Because we know that when we act as
one global company instead of 20 smaller ones, we can only get better.
Sustainability:

WE VALUE WATER, by achieving:

- 20% water savings at our strategic suppliers
- 50% water savings at our apparel material suppliers
- 35% water savings per employee at our own sites
Additionally, we will:
- Further expand the use of waterless technologies for our products.
- Continue to develop programmes focused on providing access to
clean water in the communities we operate in.
➔ WE INNOVATE MATERIALS & PROCESSES, by achieving:
- 20% waste reduction at our strategic suppliers
- 50% waste diversion for owned operations to minimise landfill
- 75% paper reduction per employee at our own sites
Additionally, we are working on:
- Replacing conventional cotton, with the aim of achieving 100%
sustainable cotton by 2018.
- Phasing out the use of virgin plastic, starting with:
● Eliminating plastic bags in our stores.
● Increasing the use of recycled polyester in our products.
● Creating a completely new supply chain for Ocean Plastic
together with our partner Parley for the Oceans. This means
that we are investing in resources to divert plastic waste from
coastal communities back into the production cycle and turning
it into products.
- Increasing the use of sustainable designs and materials in our stores
- Rolling out a global product take-back programme to all of our key
cities and markets.
- Building on existing take-back pilots such as the one in Brazil, we will
continuously expand this programme.
- Investing in materials, processes and innovative machinery which will
allow us to upcycle materials into products and reduce waste. Ongoing
examples include:
● Sport Infinity, a research project funded by the European
Commission which focuses on sporting goods that can be fully
recycled. The project aims to identify and develop innovative
recyclable materials which will enable the production of easily
customisable sporting goods.
● Futurecraft Tailored Fibre, a new sewing technique which
allows new materials such as gillnets to be combined for use in
footwear. Thanks to its efficiency, this process allows a
significant amount of waste from the traditional shoemaking
process to be eradicated. - Achieving 100% sustainable input
chemistry by adopting the ZDHC MRSL8 ; phasing out
 hazardous chemicals; providing our strategic suppliers with a
list of positive chemistry (the bluesign® bluefinder).
➔ WE CONSERVE ENERGY, by achieving:
- 20% energy savings at our strategic suppliers
- 3% absolute annual reduction in Scope 1 and Scope 2 CO2 emissions
at our own sites
- further expansion of ISO 14001 to key sites globally at own operations
- LEED certification for new corporate construction key projects, such
as the new offices at the company’s headquarters in Germany and
new flagship stores.
- Additionally, we will reduce the environmental footprint of our
consumer events.
➔ WE EMPOWER PEOPLE, because we will:
- Empower our supply chain workers by expanding and refining
grievance systems and skill training programmes:
● This includes the expansion of the Workers’ Hotline to the
countries where our strategic suppliers are located.
- Achieve sustainable leadership at our suppliers and licensees. o
● By 2020, all strategic suppliers and licensees will achieve self-
governance (4C/4E rating).
● By 2020, at least 20% of our strategic suppliers and licensees
will achieve Leadership level (5C/5E rating).
- Foster cross-functional and cross-cultural careers and experiences for
our employees. This will enable them to gain fresh perspectives and
grow professionally and personally.
● This includes volunteering programmes together with the
adidas Fund and the Reebok BOKS programme, which also
enhance soft skills such as teamwork, leadership,
decision-making and communication while increasing our
employees’ commitment and motivation.
- Champion diversity – regardless of gender, nationality, ethnic origin,
religion, world view, age, sexual orientation or gender identity.
➔ WE IMPROVE HEALTH, because we will:
- Introduce education and upskilling measures on health and work-life
balance topics for our employees.
- Develop a global Health Management strategy for our employees.
This strategy is based on the strong foundation we already have at our
offices in Herzogenaurach, Portland and Canton.
- Utilise sport as a tool to teach values and boost young people’s
academic and physical performance. In addition, this tool will add to
their overall confidence and well-being.
● Through the BOKS programme, we will refine and perfect the
collective impact model with our other partners including those
from the healthcare industry to provide a solution to the
physical inactivity epidemic.
 ●We also aim to increase the number of enrolled BOKS schools
by 50% in our target areas.
➔ WE INSPIRE ACTION, keeping focused on:
- Rewarding our employees’ commitment and contributions to our
company’s purpose, strategy and success.
- Encouraging and supporting employee volunteering – creating agents
of change in the communities we work, live and operate in.
- Engaging with creators and influencers and driving innovative
collaborations.
- Inspiring consumers, key partners, brand assets and others to join us
on our journey.
- Teaming up with our athletes who will act as role models for young
creators, sharing experiences and showing that sport is about passion,
determination, teamwork, helping others and being active.

- Discuss how effective the mission statement is in communicating the purpose, values
and aims of the business.

Through its mission statement, Adidas has set its path to success: by building clear
aims followed by well structured objectives, the company has committed with
achieving one of the most important positions in the world market, and it continues
innovating through the implementation of its principles (Confidence, Collaboration,
Creativity), acting like a boost to keep improving their fuctioning.

References:
❏ 2020 GOALS & AMBITIONS: SPORT NEEDS A SPACE. (n.d.). Retrieved
from
https://www.adidas-group.com/media/filer_public/4c/b0/4cb0904a-ce94-48dd-
bd49-6b3676598a0e/adidas_group_sustainability_strategy_2020_goals_and_
ambitions_eng.pdf
❏ adidas Group to accelerate growth until 2020. (n.d.). Retrieved from
https://www.adidas-group.com/en/media/news-archive/press-releases/2015/a
didas-group-accelerate-growth-until-2020/
❏ Strategy. (n.d.). Retrieved from
https://www.adidas-group.com/en/group/strategy-overview/