Analyzing Adidas: Organizational Functions, Objectives, and Structure

This report provides an analysis of the business environment and organizational structure of Adidas, a German multinational corporation specializing in sportswear. It identifies different types of organizations, including private, public, and voluntary sectors, and discusses their purposes and legal structures. The report examines the size and scope of organizations, categorizing them as micro, small, medium, and large enterprises, with examples like Sports England and JD Sports. Furthermore, it explores the relationship between various organizational functions, such as finance, production, and human resources, and how these functions relate to organizational objectives and structure, emphasizing the interrelation between different departments and their collaborative efforts to achieve business goals. The report concludes that different companies adopt various legal forms and operate with distinct scopes and sizes to fulfill specific purposes within society, highlighting the importance of aligning organizational functions with market requirements for enhanced performance and productivity. Desklib offers a wide range of similar reports and solved assignments for students.

INTRODUCTION
The conception of business environment refers to sum of several internal and external factors of
business that have direct or indirect influence on the business and its functioning. In the business
environment there are several factors which are involved like competitors, government, customers
and many more.The Adidas is been selected which is German multinational company established in
1924 by Adolf Dassler. This deals in designing and manufacturing shoes, clothing & accessories. It
is largest manufacture of sportswear in Europe. The report is divided into two parts, The part 1 will
cover purpose, scope and size of organisations are mentioned. Relationship between organisational
functions and organisational objectives and structure discussed.
P1 Explain different types and purposes of organisations
The organisation is place for attaining the goals and objective, employees and people works
together with efficiency. For some purpose the organisation is established and it is organised
structured that helps in performing several functions of business. Different activities are performed
for by diverse types of organisation. Different type of organisations and their purposes are
mentioned below:
Private sector- This sector is part of economy which has purpose of earning profit and operated by
individual & companies. The private based organisation is not controlled by government as they are
profit based business and for enhancing it sales & profitability it offers several product & services to
customers. This store also focus on developing market share and to have strong brand image
(Aldossari, and Mukhtar, 2018).
Purpose- The main objective is to increases sales and profitability by offering products and
services as Adidas organisation offers to customer high quality product by satisfying their needs and
demand.
Legal structure- The functions of private sector organisation is performed under different
legal structure as Adidas is associated with corporate business structure. The types of legal structure
involve partnership, sole proprietorship and corporation.
Public sector- This type of sector is run and managed by government. The important role is played
by government and political parties for offering suitable funds so that efficiently business operations
can be performed. The example of JD sports can be considered.
Purpose- This sector has objective of offering quality goods and services to people by
utilizing resources fully in particular country for their welfare. This also ensures to have equitable
distribution for enforcing social control on trade & industry through government help.
Legal structure- The JD sports in UK is leading challenger sportswear which creates positive
relationship with partners to have sustainable profits for their shareholders and
contributing in society. The legal structure involves government of local, central and state (Ali, L.,
2019).
 Voluntary sector organisation- For the society benefit the social activities are carried as
in nature this organisation is non-governmental which comprises of cooperatives,
charities and small community group. To meet the demand of society the funds are
collected from several sources. The example of Sports England is being taken which
established in 1966 and human rights of every person is protected. In society it delivers
positive contribution.
Purpose- The purpose of this organisation is to enrich society and offering large benefits
without maximization of profits. The social wealth is created along with society improves that
leads to economy growth.
Legal Structure- It consists of unincorporated voluntary association which is divided
into charity and trust association. In charity, according to legal structure business operations are
conducted through collection of funds and resources from charity. The issues and problems of
society are resolved by business organisation. In trust, the trustee have contribution in funds and
resources for the functioning of business effectively. The trustee are the person who offers funds
for completing defined task of organisation in best way (Appiah-Adu, 2021).
P2 Size and scope of different types of organizations
The organization is mainly divided into different sizes such as small, micro, medium and
large. Micro Enterprise- This refers small business sector by having low level of investment and
employment. In organisation there are mainly 0-9 employees with less than 2 million annual
turnovers. The fair distribution of income helps in eliminating unemployment and balanced
regional development is promoted. This sector has wide scope which needs less technology for
activities. In the developing world this business is formed which contributes value in economy
through developing income opportunities and cost reducing. The sports England is considered as
suitable example with 788 employees and first place among competitors. This was established in
1996 specialist in sport, research and insight, facilities and local government. The vision and
mission is to offer clarity to potential customers and described in legal way of business key
purpose.
Small enterprises- This type of organisation has 10-49 employees working with annual turnover
of around 10 million. The small number of employees are involved as it is independent body and
improves business performance in long term by increasing sales volume. The organisation scope
is large for investors and entrepreneurs as the employee number is kept below certain standard
(Bill, and et.al., 2020). The working of private corporation is inn partnership among sole
proprioceptors that means there size and income structure differs. From retail to manufacturing
wide range of activities are covered. The JD Sports is suitable organisation with 34,885
employees world wide. The scope is used in innovative and efficient sports shoes, clothing for the
purpose of promotion and sold in more than 49 countries globally. This wants to be market leader
Business and business environment

Organisation Structure
Functional structure: In this structure employees are divided in several departments in
accordance to their skills and knowledge. The employees of different department report to top
management that means there is single authority of organisation. The clear lines of authority is
described as each department such as marketing, finance has own procedures and standards. The
Adidas take use of this structure for performing its business operations.
Divisional structure: The multinational companies use this structure to divide business
operations in different group. The company operates its business lines in its own president and
structure itself with the number of products. Several divisions are formulated such as marketing,
sales which are responsible for their performance. Public sector organisations such as JD sports
adopt this structure (Expósito, and Sanchis-Llopis, 2019).
Matrix structure: It is a company structure where team report to multiple leaders and
keeps open communication among teams and helps companies to create more innovative products
and services. The complexity of organisation is enhanced as employees report to more than one
authority. This kind of business structure is adopted by voluntary organisation like Sports England.
Conclusion
From the above report it is been concluded that different types of companies take
different legal forms which involves private, public and voluntary. The business is also of different
size with scope which is run for particular purposes in society.
REFERENCES
Aker, and Aghaei, 2019. Comparison of business environments in oil-rich MENA countries: a
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Aldossari, and Mukhtar, 2018, June. Enterprise resource planning and business intelligence to
enhance organizational performance in private sector of KSA: a preliminary review.
In International Conference of Reliable Information and Communication Technology (pp. 343-
352). Springer, Cham.
Ali, L., 2019. Cyber crimes-A constant threat for the business sectors and its growth (A study of
the online banking sectors in GCC). The Journal of Developing Areas, 53(1).
Appiah-Adu, 2018. Building capability for organizational success: An emerging market
perspective. Journal of African Business. 19(1). pp.86-104.
Bill, and et.al., 2020. Salesperson social media use in business-to-business relationships: An
empirical test of an integrative framework linking antecedents and consequences. Journal of the
Academy of Marketing Science, pp.1-19.
Medium and large enterprises- This type of organisation size has 50-250 employees or more
with the turnover of around 250 million or more. The employees serve volunteer memberships
along with multinational organisation which speedy accelerating growth. The organisation scope
involves generating of huge revenues which consists multinational corporations that work as part
of government. For the future development of organisation small part of capital is kept reserved
in company. For this the sector Adidas is appropriate example as it is multinational sports
company with 57,016 employees comprising diverse portfolio in sports. The Adidas has 465
million units of production of apparel globally with turnover of 13.67USD. It also has
production of 379 million pairs of footwear (Choudhary, and et.al., 2020).
P3 Relationship between different organisational functions and how these functions are
related to organisational objectives and structure
In business organisation several functions are operated with are interrelated to each
other. The interrelationship of several functions helps organisation in completing assigned task
with high efficiency and business objectives are attained. The department of organisation in
context to Adidas performs several functions which is related to finance, production, human
resources and many more. The interrelation among these functions are mentioned below-
Finance and human resource
In organisation finance and human resources are interrelated which helps in performing
several business functions. For the purpose of attaining business objectives both departments
work in collaboratively in well-defined manner. In context to Adidas, finance department
prepares budget for whole company and for other departments so that defined task can be
performed in best manner. Whereas human resource department offers training to its employees
and finance department which enables them to perform more effectively. In marketing effective
tools and techniques are used for customer interaction and involves several activities such as
market research, promotional techniques, product planning and development etc. The
interrelation between both department leads to organisation success and growth (Cokins, and
Căpușneanu, 2020).
Marketing and production department
The products and services are produce in accordance to the requirement and needs of
customers. In context to Adidas organisation marketing department has significant role in
determining current market trends, customer needs, demand & preferences. To the production
department all information is conveyed so that products can be produced according for customer
satisfaction. The modifications and improvements in product are made according to market
research. The interrelation of both helps organisation in enhancing its performance and
productivity which enables to produce quality products in accordance to market requirements.