Analysis of Adidas Company Business Plan in Sydney, Australia

This report provides a comprehensive analysis of the Adidas Company's business plan, evaluating its suitability for the Sydney, Australia, business environment. The report begins with an executive summary and an introduction, followed by a review of Adidas's history, mission, and goals. It then delves into the Sydney business environment, highlighting both positive factors like economic stability and a well-regulated business environment, as well as negative factors such as global financial influences and the importance of strategic business location. The report assesses market opportunities, the proposed market management team, and the financial analysis, including financing combinations and key financial indicators. Furthermore, it examines the environmental impact analysis, emphasizing the need for environmental management plans. The report concludes with recommendations for maximizing positive business attributes and preparing an attractive business plan for the Sydney region.

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BUSINESS PLAN ANALYSIS-ADIDAS COMPANY
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Executive Summary
A business plan is an important document that helps entrepreneurs seek the financing of
the business ideas from the financiers. The success of the business plan depends on how the
entrepreneur has prepared it based on the planned business location. This means for the business
plan to be the success it must put into consideration factors surrounding the location of the
business. This report explores the applicability of Adidas Company business plan in the Sidney
City. The report finds that there is a favorable business environment in Sydney region that if well
utilized will translate into the success of Adidas Company business. Besides, the report finds that
there are a marketing and financing opportunities that are offered the by stable economic and
political stability in the region. Finally, the report recommends that Adidas should maximize on
the positive business attributes in Sydney region to prepare an attractive business plan.
Table of Contents

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Executive Summary.......................................................................................................................2
1.0 Introduction..............................................................................................................................4
2.0 Adidas History, Mission and Goals........................................................................................4
3.0 Sydney Business Environment Overview..............................................................................4
3.1 Positive Business Environmental Factors in Sydney........................................................5
3.2 Negative Business Environmental Factors in Sydney.......................................................5
4.0 Market Opportunity................................................................................................................6
5.0 Market Management Team....................................................................................................7
6.0 Financial Analysis....................................................................................................................8
7.0 Environmental Impact Analysis.............................................................................................9
8.0 Business Plan Financing........................................................................................................10
Conclusion....................................................................................................................................10
References.....................................................................................................................................11
1.0 Introduction
The start-up of the business calls for an entrepreneur to have in place a well-established
business plan that will guide him to get together necessary resources needed for the start-up of

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the business. (Nunn & McGuire, 2010, p. 23) Therefore, an entrepreneur should ensure that
business plan is detailed enough and has covered all the key details that will help the business
stabilize once started. Key aspects that should be included in the business plan comprises of the
business overview, the market opportunity, the market, management team, financial analysis,
environmental impact analysis and funding request. This report will consider Adidas Company
business plan and discuss its applicability in the business environment of Sydney.
2.0 Adidas History, Mission and Goals
Adidas Company finds it roots in Bavaria, a small town in Germany. Adi Dassler was the
founder of the company with the mission of providing athletes with sport products (Adidas
Group, 2012). Currently, the company mission is focused on making Adidas a global leader in
the sporting industry through continuous provision of high quality products. Adidas Company
major goals are adapting to the new trends through continuous expansion (Allocca, 2015).
3.0 Sydney Business Environment Overview
The World Bank Group report points out that doing business in Sydney is easier than in
most other parts of the country (Regional Dvelopment Australia Sydney , 2017). The Group goes
further to note that Sydney has the well-regulated business environment. For example, the
overall Australia political stability is extended to Sydney, and the regulatory framework in the
region provides entrepreneurs with business protection assurance and confidence. Besides,
Sydney is region endowed with economic prowess because of its strategic position that attracts
tourists from all over the world. Similarly, Sydney has been found to be one of the most
influential cities in the world (Regional Development Australia Sydney, 2017).Therefore, Adidas
Company business plan is suitable to the Sydney business environment because of the favorable
business condition in this region.

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3.1 Positive Business Environmental Factors in Sydney
The Sydney economy has proved to be stable by overcoming the continuous global
financial crisis. Findings show that businesses in the city have expanded to more than 3000
between 2012 and 2012 (cityofsydney.nsw.gov.au, 2016). The continued growth of the business
in the region it is an indication that new business can thrive in the city. Apart from the favorable
business environment, Adidas Company enjoys the choice of setting different types of business
entities. For example, the region has been found suitable for companies, trusts, partnerships, sole
traders and joint ventures. Therefore, Adidas Company can business plan be based on any
business entity that he finds applicable and suitable in the Sydney business environment. Thirdly,
Sydney region enjoys political stability as exhibited by high government support on business and
low levels of corruption. This makes it easy for Adidas Company to operate in Sydney. Fourth,
Sydney enjoys favorable tax system. This means that Adidas Company profits are not be diluted
to meet the costs associated with the tax payment. Lastly, the region enjoys robust infrastructure
and communication network that will support the success of Adidas business.
3.2 Negative Business Environmental Factors in Sydney
Despite Sydney City and region experiencing favorable business environment, it faces
some challenges that may hamper the success of the business especially the small ones. It is
important for the entrepreneur to mention this in the business plan to avoid conflicts with the
investors in future. According to Nicholas, (2016) no business is immune to the global forces
irrespective of the size. This is problem attributable to the small businesses operating in Sydney
region. Nicholas notes that finance is a worldwide game and therefore the financial decisions by
the major developed economies of the world are likely to affect business activities in Sydney.
For example, lending practices and funds that an entrepreneur should borrow from the financial
institutions is highly affected by the global financial crisis.

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Secondly, the poor business location has proved to be a negative business factor that can
hamper the success of business in Sydney (Regional Development Australia Sydney, 2017).
Therefore, an entrepreneur should mention the location of the anticipated business in the
business plan and analyze how the location of the business will ensure its success. The
appropriate business location will require to carry out extensive market research on the numbers
of the competitors in the market. Thirdly, the entrepreneur should include in the business plan
the changes in sales during the year because of the changes of the number of people visiting
Sydney city. Sydney being a tourist site, its population vary within the different seasons of the
year.
4.0 Market Opportunity
Sydney is a huge city comprising of the huge population that forms a target market for a
variety of business products. Besides, the city of Sydney comprises of people from different
nations making easy for Adidas to target international tourists visiting the city. (Nicholas, 2016).
The Adidas business plan suits in the Sydney City because of the existing target market.
However, the company business plan fails to serve the large market share based on the target
characteristics and the preferences.
Market problem scope is another area that Adidas business plan appears to address
(Hytti, 2015, p. 3). This area requires the companies’ business plan to address three key issues.
First, consumer problem which calls entrepreneur to understand the unsatisfied consumer needs
in the market. Adidas has realized the need to serve sport product consumers in Sydney region.
Secondly, existing product problem that has hampered the satisfaction of the consumer needs.
Thirdly, a technological problem that has hindered the manufacturers in the market to meet the
customer needs satisfactorily.

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Finally, under market opportunity, the company business plan must quantify the market
opportunity (Yu & Wiklund, 2012, p. 6). Adidas business plan has quantified the financial
benefits that will be realized if the business succeeds in resolving the existing market problem.
This has help the company top management to determine whether it is worth to invest in the
identified business opportunity. The Adidas business plan also analyzes the sustainability of the
competitive business advantage. This because the market opportunity can be viable for only
limited time and disappear when competitors invest in the same opportunity (Awwad, et al.,
2013, p. 70). If the entrepreneur finds out that the opportunity is worth according to the market
quantification data and benefits, then the entrepreneur should use this to influence the investors
to finance the idea.
5.0 Market Management Team
The Adidas Company business plan extensively explains the laid down plans of having
an effective marketing team that will help the company achieve its major goals and objectives.
There is a stiff business competition in Sidney, and therefore, the company will be forced to
come up with well-elaborated market management team (Crow & Goldstein, 2013, p. 8). For
example, the company must in its business plan indicate in the business plan the number of the
marketing staff required, their skills, experience, and qualification. This will help the
stakeholders assess whether the business will have in place a robust market system.
Putting into consideration the cultural diversity in the city of Sidney, the Adidas business
plan put across the suitable market management team strategies. This because the cultural
diversity in Sydney calls for the application of various marketing strategies (Denniss, 2016). The
company business plan illustrates different market management team approaches it has set in
place to manage marketing team playing different roles in different fields within the marketing

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department. This helps the business to meet the important aspects of marketing and continue
building on the same to maintain the desired competitive advantage.
6.0 Financial Analysis
Financial analysis is the most important area for the financiers of the business plan
(Bewayo, 2015, p. 3). This is because the investors want to know the returns on their investment.
Additionally, they will like to know the how long it will take before they start enjoying profits
from the investment. The Adidas business plan has an extensive and understandable financial
plan and analysis that create assurance to the investors that their funds are being used in the best
way and they are not investing on an idea that is likely to fail.
In the financial plan, the company has to mention the financing combinations that are
deemed suitable for the business (Baliga & Rodrigues, 2015, p. 212). For example, for the
Adidas case debt financing, equity financing and ploughed back financing have been considered.
Bearing in mind that companies require huge capital both debt financing and equity financing are
most applicable for Adidas. The financial plan and analysis of Adidas Company has been
accompanied by the anticipated period when the company will be able to clear the debt.
Adidas Company financial analysis also identifies the underlying assumptions that an in
the business plan. For example, for Sydney business plan case, the company can assume that
there will be stable economic growth without any recession interruptions. Secondly, another
assumption can be that there are no unforeseen uncertainties that can affect the operations and
growth of the business. Finally, the third assumption can be based on the notion that the
financing methods used will be sufficient to sustain all the financial needs of the business.

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Finally, Adidas business plan has illustrated the key financial indicators that pinpoints out
that the idea is worth investing. This has involved the analysis of the key financial aspects such
as sales, gross margin, inventory turnover and operating expenses. The projection of this
financial indicators appear real and is accompanied by the profit and loss forecast for the next
five years.
7.0 Environmental Impact Analysis
Business extract resources to operate from the environment. The raw materials obtained
from the environment undergo through transformation process into finished products or output.
The extraction of the raw materials, transformation process, and outputs affect the environment
in one way or the other (Hilary & Jesse, 2012, p. 7). Therefore, it is very vital for the
entrepreneur to indicate in the business plan how the operations of the business are likely to
affect the surrounding environment. The entrepreneur should identify the environmental
management plans that will ensure prevention and mitigation of the harmful effects associated
with the business operations.
It is evident that Sydney is a tourist attraction city. Therefore, Adidas runs by avoiding
operations that can contribute to negative environmental impact. To address the problem of
environmental impact, the company business plan has identified business operation factors that
can negatively impact the surrounding environment. The company has proven that its operations
do not have negative effects on the environment by providing the analysis of the environmental
audit in the business plan.
Secondly, the company has identified the impact of business on the surrounding
community. To address this problem, Adidas Company business plans has laid down practices to
engage the local community in the business to help in reducing the foreseeable impacts. Thirdly,

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an entrepreneur the company has listed constraints and risks that will accrue the business as
result of environmental impacts. Fourth, the company has highlighted the strategies available to
minimize the environmental impact as well risk that may hinder the progress of the business.
Finally, the company listed the action plan that is deemed to arise from the implementation of
strategies meant to reduce environmental impact.
8.0 Business Plan Financing
From the analysis of the business environment in Sydney City, it has come out clear that
the city enjoys stable economy. It is also proven that some companies are likely to fail within the
first three years in business. This challenge has been linked to poor financial planning and lack
of enough funding that is caused by the global financial crisis. However, for the business with
good financial plans like Adidas it can take advantage of the stable economy to obtain business
plan financing from the potential investors.
Conclusion
A business plan is a crucial document that requires the entrepreneur to assess the planned
location of the business to come up with several guidelines that should be considered. Sydney
City is one of the best locations in Australia to start a business. The region seems to enjoy,
economic and political stability, the huge market provided by the large population and
geographical serene that attracts customers from all over the world. Therefore, Adidas Company
should use features associated with the Sidney region to prepare an attractive business plan that
will influence the financial support of the investors.

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References
Adidas Group, 2012. History. [Online]
Available at: https://www.adidas-group.com/en/group/history/
[Accessed 15 Agust 2017].
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[Accessed 15 August 2017].
Awwad, A. S., Al Khattab, A. A. & Anchor, J. R., 2013. Competitive Priorities and Competitive
Advantage in. Journal of Service Science and Management, 6(2), pp. 69-79 .
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does it persist?. Journal of Small Business and Entrepreneurship Development , 3( 1), pp. 1-7 .
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Available at: http://www.cityofsydney.nsw.gov.au/vision/towards-2030/business-and-economy
[Accessed 13 August 2017].
Crow , R. & Goldstein, H., 2013. Model Business Plan: A Supplemental Guide for Open Access.
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Denniss, R., 2016. Sydney's cultural and ethnic diversity a chance to lift economy, arts,
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Available at: http://www.smh.com.au/comment/sydneys-cultural-and-ethnic-diversity-a-chance-
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[Accessed 15 August 2017].
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[Accessed 30 June 2017].

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Nunn, L. & McGuire, B., 2010. The Importance Of A Good Business Plan. Journal of Business
& Economics Research (JBER), 8(2), pp. 22-36.
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