Extended Essay in Business and Management for the IB diploma

Extended in Business and Management for the IB diploma - Essay Example.The mot critical iue face up adida i it attempt to turn around Reebok. The caller-out bought Reebok for $3.8 one thousand million 2006, a move criticized by many analyt a being too expenive. The company i working to change cutomer perception Reebok from that of a dicount hoe brand to a premium brand. A part of thee effort, the company ha witched the Reebok wholeale model from bulk pre-order to pay a you go. Wholeale cutomer like Footlocker now order Reebok hoe a they need them rather than ordering them in bulk. Thi make it le likely that larger retailer will dicount Reebok hoe in order to make pass their inventorie.Adida i, at it core, an international company with only 30% of it 2007 ale coming from North America. Moreover, it i rapidly expanding it preence in emerging market like Aia and Latin America. Becaue it target the wealthiet egment of the market the company lead it competitor in ale in Japan, Korea, India, Thailand, Ind bingleia, and New Zealand ale growth in it core emerging market in Latin America and Aia have ha topped 24% in the lat everal year. By 2010, worry expect China to be it econd bigget market. (Cooper and Lybrand, 2004, 77-84)Adida Group generate revenue by elling it product to retail tore or directly to the cutomer via one of the brand concept tore, factory outlet, conceion corner, or online tore. Of thi revenue, 46% i from footwear, 42% from apparel, and 12% from hardware. In 2007 the company had 10.3 cardinal in revenue ($13.7 billion baed on the average 2007 exchange rate), which wa a 7% currency-neutral increae over 2006 revenue of 10.084 billion ($12.557 billion). While operating margin ha dropped overall ince 2005, thi can be attributed to the cot aociated with integrating Reebok, which ha