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Case # 18 -- Adidas in 2008: Has Corporate Restructuring Increased Shareholder Value?
Team and Individual Writing Assignment Please evaluate Adidas’ restructured line-up of sporting goods businesses. Your analysis should identify Adidas’ corporate strategy, evaluate the attractiveness of the industries it has diversified into and the strength of each of its business units, and assess the degree to which strategic fit and resource fit exists in the portfolio. Also, please recommend an investment priority and strategic moves to improve overall corporate performance and increase shareholder value. You must complete all parts of the assignment to receive full credit. Review the rubrics for Written Communication and Case Analysis posted with the class materials for guidance on how hour work will be evaluated. Team Presentation Prepare a 30-minute briefing for Adidas’ senior management that presents your recommendations, and provides enough explanation of your analysis for your listeners to understand why you have chosen the alternatives that you have. Study Questions

1.

What is Adidas’ corporate strategy? Was there a common strategic approach utilized in managing the company’s lineup of sporting goods businesses prior to its 2005-2006 restructuring? Has the corporate strategy changed with restructuring? What is your evaluation of Adidas’ line-up of businesses in 2008? What does a 9-cell industry attractiveness/ business strength matrix displaying Adidas’ business units look like? Does Adidas’ business line-up exhibit good strategic fit? What value-chain match-ups exist? What opportunities for skills transfer, cost sharing, or brand sharing are evident? Prior to its divestiture, what kind of strategic fits existed between Adidas’ core business and its Salomon business unit? Has Adidas’ business line-up exhibited good resource fit between 1998 and 2007? What have

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