Adidas Malaysia: Operations Management

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OPERATIONS MANAGEMENT
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Adidas Malaysia
OrganiZation background
Adidas originally began in Germany and has grown to become a multinational
company that deals with the manufacture of sports shoes, accessories and clothes. The Adidas
group has diversified the brands produced to include Reebok and Taylor, which is specially
made for golf. In 1994, Adidas merged with Adidas Malaysia as part of the plan to extend
the market to global markets. Adidas Malaysia has grown to become a world leader in the
production of Adidas branded sports wear and accessories. The company follows the strategy
set by the parent company to ensure achievement of set quality standards. Over the years,
Adidas has grown financially with net sales that hit 14.53 billion and has employed more than
50,000 employees. Additionally, Adidas has grown to become a world leader in sponsoring
sporting activities and personalities.
Adidas has a top-bottom structure of management with the chief executive officer
seating at the top of the apex. The CEO heads the board of directors and company
management. The board chairman and managing director report to the CEO on issues and
decisions facing the company. Below the board of directors is a supervisory committee that
performs auditory duties. The auditory duties include checking whether the Adidas Malaysia
satisfies various requirements such as risk management, quality control, strategic
implementation and fulfilling government requirements. The supervisory board is answerable
to the board of directors in the event of failure to fulfil the set standards.
Furthermore, the management is below the supervisory board with a responsibility of
ensuring that Adidas Malaysia performs daily operations in a proper manner. The
management work together with the employees in a supervisory role with duties such as
ensuring an adequate number of employees, resource planning, demand forecasting and

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satisfaction and making timely reports to the bodies above on the state of operations and
market performance.
Mission statement
Adidas Malaysia mission statement states that ‘the Adidas group strives to be the
global leader in the sporting goods industry with brands built on a passion for sports and a
sporting lifestyle.’ Adidas Malaysia intends to achieve the mission by acquiring a wide
market share across the globe. Therefore, the company engages in extensive marketing
activities (Anthony, 2015). On the other hand, Adidas Malaysia intends to uphold high-
quality products to beat competition from other companies such as Nike, Sketchers and
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Puma. Therefore, the company has acquired the best experts around the globe to ensure the
uniqueness of products.
Vision statement
The vision statement states that ‘to bring inspiration and innovation to every athlete in
the world. Nike Malaysia intends to achieve the vision by introducing revolutionary products
to the market that increase the comfort and safety of athletes. Additionally, Adidas introduces
products that suit the athlete’s specific characteristics to bring out optimal performance.
Adidas has also partnered with sporting clubs and personalities to assist in researching the
changes that take place in sports to enable adopting sports wear to specific demands
(Andreasen, 2012). Therefore, the company feels confident of achieving the vision statement
within a short time. Additionally, with the help of research and design coupled with
technology, Adidas Malaysia has the best chance of fulfilling the statement.
The report focusses on the manufacturing department of Adidas Malaysia.
Transformational process
Volume dimension
Adidas Malaysia manufacturing department has different approaches on the volume
of production depending on the product specifications and target market (Fabricius, 2014).
The department produces some sports wear and accessories in large numbers and others in a
few limited editions. The manufacturing department engages in mass production during peak
seasons when the world focuses on major sporting events such as the world cup and
Olympics. During such seasons a high demand for sports wear and accessories exists, which
calls for large volumes of production to satisfy demand. The high demand causes the
department to engage many employees in the production of sports wear resulting in capacity