Adidas Company

The Adidas group is made up of three prominent management bodies namely Annual General Meeting, The Supervisory Board and the Executive Board (“adidas-Salomon AG,” 2005). Executive Board controls the overall leadership and management functions in the company. This company employs a top-down organizational strategy where the company goals and directions flow from the top management body to the lowest subordinates. Three vice presidents support The Executive Board, the topmost in the organizational chart. The presidents are allocated to specific organizational departments; Finance department, HR and Marketing department. Another level of vice presidents succeeds the latter, and they focus on distinct divisions namely Project division, Engineering and Manufacturing division (“adidas-Salomon AG,” 2005). These presidents are then followed by managers, specialized in the same distinctive categories. 

Succeeding this level is a matrix organizational structure, characterized by an increased number of reporting managers. Employees below this rank are controlled by more than one boss, summing up to a very coalesce and cohesive business organization (“adidas-Salomon AG,” 2005). Different departments collectively work together to achieve common goals and objectives. The fostered communications between different levels allow ideas to constantly flow throughout the organization, where the company targets are well elaborated between the managers and employees. This highly favours production and impacts the total productivity of the organization. The lower divisions are alert to the expansion of the existing business as well as nurturing new opportunities and ensuring implementation of the same. 

There exists a great difference between the Adidas’ and Puma’s organizational structures, where Puma company employs a fully top-down organization structure. An overall chief executive officer is supported by other departmental officers. Other departments are led by independent officers and employees look up to one boss, unlike in Adidas company. The matrix organization structure has given Adidas a competitive advantage over Puma. 

References

adidas-Salomon AG. (2005). Deutsche Standards, 16-19. doi:10.1007/978-3-322-93425-3_2