Corporate Sustainability Report: Adidas's Brand Identity and Strategy

This report provides a comprehensive analysis of Adidas's corporate sustainability practices. It begins by defining corporate sustainability and then focuses on Adidas as a case study, examining its organizational identity, including its products, logo, features, and brand value. The report delves into what constitutes a sustainable organizational identity, highlighting factors such as a strong brand image, sales turnover, profitability, growth rate, and diversification. It further explores factors that can either help or hinder Adidas in migrating towards a more sustainable organization, encompassing elements like an efficient workforce, proper management, sustainability knowledge, and effective employee relations. The report concludes by offering recommendations based on the analysis, providing insights into how Adidas can further enhance its sustainability efforts. This report is valuable for students studying business development and sustainability.

CORPORATE
SUSTAINABILITY

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Organisation identity...................................................................................................................3
Sustainable organisation identity entail.......................................................................................4
Factors that help or hinder am organisation................................................................................7
Process of migrating organisation identity..................................................................................9
Recommendations......................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Corporate sustainability is defined as achieving long term implementation of business
operations of an organisation. This report is based on the case study of Adidas Company in
respect to corporate sustainability. Adidas Company is a Germany based organisation operates
its business operations in apparel and accessories sector associated with business environment.
Adolf Dassler is the founder of the company. Organisation deals in high quality footwear,
sportswear, sports equipment and toiletries. Headquarter of the Adidas Company is located in
Germany. Company serve its business operations all across the globe. Henceforth, this report
will emphasis on different aspects that denoted the sustainability of the organisation in the target
market. Sustainability organisation identity entail will also describe in this report. Furthermore,
report will also demonstrate factors that indicates about the migrating the identity to a sustainable
organisation. This report will also reflect the example of an organisation that carried the process
to migrate the identity.
MAIN BODY
Organisation identity
Organisation identity is defined as all such factors that reflect the company’s presence in
target market. Organisation identity is the indicator of company’s presence in front of its
potential customer base. Many factors that considers as the reflective tool to the organisation
identity. Such factors can be summarised in the following manners.
Company’s products: All companies are known for its products. Company’s products are the
reflector of the organisation presence in target market. Customers today wish to buy the quality
products to meet all its needs and demands. In such a competitive business environment
customer carry so many choices to buy from. All companies give emphasis to upgrade the
quality of its products so that better customer satisfaction can be achieved from the business
operations of the organisation (Cherrafi and et.al., 2017). Adidas is well known for its high
quality footwear, sports and other associated products all across the globe. High quality of
company’s products is among the key factor that has generated the identity of the brand all
across the globe. Adidas is among the big corporate branding the entire business environment

and high quality products has been one of the major reason behind organisation achieving such a
great success in term of brand identity all across the globe.
Company’s logo: Company’s logo is also one of the dominating factors that support company in
establishing a unique brand identity in front of the target customers. All organisations try to
establish a unique logo that can reflect the brand in the market. Logo enables customers to
identify company’s products by just seeing at the logo over the products. Adidas is a well
established brand all across the globe. All customers of the company identify organisation and its
products from the logo of the company at all its products. Logo is among the key elements that
support company in establishing a unique brand identify in the target market.
Features of organisation: Organisation identity is also the reflector of different features serve
by an organisation. Features can be indicated as the factors associated with the personality of the
organisation in target market (Das, Rangarajan and Dutta, 2020). Features of the organisation
also include company’s products, diversification, price range, brand value and other elements.
Adidas is among the leading brand associated with the business environment all across the globe.
Company is known for a premium brand due to its high quality products and price structure. This
can be denoted as the identity of the Adidas Company in front of its potential customers and
target market.
Brand value: Brand value also reflect the organisation identity in target market. Identity is a
term that indicates about the organisation in front of the target customers. Brand value is an
important aspect as it denotes the reputation of organisation in the market. Adidas Company is
known as the premium brand due to high brand value of the organisation in target market. Brand
value of the organisation can be indicates by its profit margins or sales turnover of the company.
Share prices of company also a strong reflector of the brand value of the organisation in the
market.
All the above mentioned elements indicate about different aspects of the identity of the
organisation.
Sustainable organisation identity entail
Sustainable organisation is defined as all such organisations that are running business
operations from the very long time. Sustainability is not specific with any specific definition but

it can be projected as all such organisation that are operating business functions from very long
time is call as sustainable organisation in market. Following factors denoted the sustainability
identity entails of an organisation.
Strong brand image: Sustainability of an organisation can be projected with its strong brand
image in target market. All such companies who has been operating functional activities from
really long time are call as sustainable in target market. Strong brand image is an indicative tool
that organisation is operating profitable business operations in the specific target market. Strong
brand image is denoted as the local peoples know about the brand (Goel, 2017). Strong brand
image also reflects the fact that the particular organisation could effectively cater the needs of the
target customers in the associated market. Adidas Company is among the big brand in the
associated market segment. Company is operating its operation functions from the year 1949.
Company’s strong brand image reflects the strong position of the organisation all across the
globe in the associated market sector.
Sales turnover: Sales turnover is the reflective tool that indicates about how the particular
organisation has been perceived by the customers in the specific target market. Sales turnover
indicate the company’s performance in the specific time period. Sustainability has a deep
connection with the organisation performance in target market (Ma, 2017). Due to long term
sustainability of the company organisation effectively generate high sales turnover in the
associated market. Adidas is a well-established brand all across the globe. Company’s
sustainability can be projected with the attractive sales turnover of the organisation. This is a
strong indicative tool that reflects that the company is well established and sustainable in the
market.
Profitability: Profitability is also among the key aspects to analyse the sustainability of the
organisation. All such organisations are sustainable in its business operations is due to attractive
profitability that allows such organisations to sustain in the competitive environment.
Profitability is an indicative tool of the organisation appearance in the associated market
segment. Company frame all its strategies as a part of the business operations in order to sustain
in the market for the longer period of time (Upstill-Goddard and et.al., 2016). Adidas is among
the key brand associated with the business environment all across the globe. Organisation high
profitability is a strong indicator of the sustainability of the organisation in market. Company

also make effective plan and strategies for all future operations that can support the sustainability
of the organisation in future. Adidas Company develops business expansion and product
expansion strategies to improve the sustainability of the company in the associated market sector.
The ultimate aim behind all strategies and policies framed by the organisation is to expand the
sustainability of the company in the market.
Growth rate: Growth rate is also an effective sustainability entail associated with the business
environment all across the globe. Growth rate is an indicative tool about the organisation
performance in the market. Well established brand in the market contains effective growth rate.
It also indicates about the company’s appearance in the market. Customer satisfaction is among
the crucial pillars involved in the sustainability of the organisation in market (Urban and
Beswick, 2018). Growth rate also indicates about the how effectively company is capable to
cater the customer satisfaction in the target market. Adidas Company is among the key brand in
the market especially in the foot wear and sportswear products. High growth rate of the
organisation is among the key factor that played huge role for the organisation in gathering such
effective presence in target market. Sustainability of the organisation immensely depends upon
the growth rate of the organisation. In case the company is not capable to meet up the expected
rate that indicates growth of company ion target market. Effective growth rate of Adidas
Company also supported the organisation in expanding the business operations all across the
globe. Adidas Company could effectively cater its business services in Australian market due to
potential growth rate of the organisation in the market.
Diversification: Diversification is also among the crucial tools that influence the sustainability
of the organisation in the associate market sector. All organisations who could sustain in the
market is due to diversified feature associated with the organisation. Diversification can be
entertained with products, price and other features (Wijethilake, Munir and Appuhami, 2017).
All such aspects that supports company in establishing its own brand image in target market is
indicated as diversification of organisation. This is among the crucial element that also
influences the growth potential of the organisation in market. Adidas Company has established a
diversified image by catering its foot wears and sports wears products to all potential customers
of the company. Well diversified product range is more like a USP for the company.

All the above factors indicate about the sustainable organisation identity entail associated
with the company.
Factors that help or hinder am organisation
Currently there are various factors existing which can help to hinder Adidas while
migrating its identity to a sustainable organisation. Basically each business or company has
affected by these factors. Mainly these factors are existing in any company’s external and
internal business environment (Grimm, Hofstetter and Sarkis, 2018). Some major factors which
can help or hinder to Adidas has been discussed below;
Factors that help
Efficient workforce: This is one of the major factors which can help to the Adidas while
migrating their identity to a sustainable organisation. Reason is, an efficient and effective
workforce always put its huge contribution in the workplace in the comparison of inefficient
workforce. there is company has highly required this type of workforces to maintain a proper
sustainability in its business environment. There are each company or business has always
required huge contribution from their existing workforce for gaining positive results during
converting present identity into sustainable organisation.
Proper management: Proper management is also very necessary for properly maintaining
sustainability within then business environment. Maintain sustainability within workplace is note
a small task to different businesses, in which top-level management of Adidas has highly
required gain proper knowledge of sustainability for gaining huge return from its sustainable
organisation Identity (Christ Burritt and Varsei, 2017). Basically, there are proper management
included those all action of a manager which has been taken in proper manner. In this situation,
when existing management of Adidas is proper or systematically manner, then it can easily
maintain its identity of sustainable business in the market.
Sustainability knowledge: According to different business experts, top-level management within
each business has highly required to gain full knowledge of sustainability before implementing it
in its business environment. In this situation, gaining knowledge of sustainability is very
necessary task to the Adidas, because without gaining knowledge this company can’t implement
sustainability. Currently there are various innovative sources available in the market which can

support to existing of Adidas for gaining knowledge of sustainability. For example; management
should use different books and journals which has based on sustainability topic. Basically, there
are various business experts has always shared their innovative ideas and onion in these books
and journals. That’s why these sources can support to management of Adidas for gaining
knowledge of sustainability. At the end, existing management of company will be able to
systematically implement sustainability within its business environment.
Effective employee relations: Effective employee relations factor also can help to the Adidas
while implementing sustainability within its business environment. In this situation, existing
management of company should always maintain effective employee relations within its
workplace. When the management maintains effective employee relations, then it will be able to
take productive work from it’s all employees (Buallay and Al-Ajmi, 2019). Currently major
competitors of the Adidas are also trying to maintain effective relations within their respective
business environment. That’s why top-level management of Adidas highly need to build
effective employee relations for implementing sustainability. The company can easily gain huge
competitive advantage also by implementing sustainability within the international market.
Technology: This is another major factor which can help to the company for changing its
identity in sustainable organisation. The management of Adidas should highly involve
technology while implementing sustainability within its business environment. Currently there
are lots of modern and latest technological gadgets, tools and equipment are available in the
market which will definitely help to this company for properly implementing sustainability. Of
course, currently company already uses various modern technological gadgets and tools within
its daily operations, in which these technological gadgets and tools will help in properly
implementing sustainability as well.
Factors that can hinder
Strict government policies: Strict and unfavourable government policies promote many
difficulties and challenges within sustainability implementation process of any company. In this
situation, factor which has based on strict government policies can hider to the Adidas also while
implementing sustainability within its business environment. Sometimes government has
imposed such policies on existing businesses or companies which can negatively affect them

(Dočekalová and et.al., 2017). For example; currently government of the Australia has imposed
higher taxation on MNCs in comparison of local or domestic companies, so this factors can
hinder to Adidas in its sustainable implementation processes.
Ineffective teamwork: Each business has highly required an effective teamwork while
implementing sustainability within own business environment. In this situation, when any
company has ineffective teamwork, then it can’t effectively implement its sustainability identity
in the market. That’s why top-level management of Adidas is highly responsible to remove such
factor from its existing business. environment by building an effective teamwork. This is step is
too necessary for the company, because an effective teamwork can highly contribute in Adidas
for properly implementing sustainability.
Poor direction and control: Top-level management of should create such environment within its
workplace where people from all levels of management can easily communicate with each other
(Hörisch, Wulfsberg and Schaltegger, 2019). There is effective communication between upper
management and employees is highly required within Adidas for systematically implementing
sustainability. When upper management communicate with employees, then existing employees
will feel values by upper management. Finally, employees put their huge efforts in different
processes of sustainability implementation.
Poor communication: Poor communication factor also can hinder to the Adidas while
implementing and maintaining sustainability in the workplace. In this situation, existing
management of the company should build proper communication values within its workplace,
because effective communication values give opportunity to a company for removing various
errors from the workplace. This is the main reason that, company can easily remove different
errors from its sustainability implementation process by building effective communication values
within existing workplace.
Process of migrating organisation identity
The Adidas is one of the leading shoes manufacturers in the world. Currently it operates
its business operations within many countries. Theta’s why top-level management completely
understands actual value of stainability within workplace. In this situation, this company or
organisation has succeeded in properly maintaining sustainability within its business

environment. Currently sustainability aspect plays very great role for this company, because
Adidas is able to run its business operations always on progressive path with the support of this
aspect (Jitmaneeroj, 2016). Before implementing sustainability within workplace, top-level
management of company was created a productive action plan where it mentioned those all
actions which it need to take for properly implementing sustainability in the workplace.
Before implementing sustainability within business environment, existing management
was take proper suggestions from various business consultant and experts for systematic
implementation. These business consultant or experts mainly provides different innovative ways
or methods to a company for successfully implementing sustainability in daily operations.
Currently Adidas is able to take advantages from sustainability aspect. The management of
company used various change models before implementing sustainability within workplace.
According tot business experts, there are each business has highly required to use various
innovative change models while implementing a specific change within its existing business
environment. This is another main reason behind successful implementation of sustainability
within own business environment. Adidas was completely informed it’s all stakeholders that,
company has planned to implement sustainability. In this situation, that step of company played
great role for this company, because when management was informed to their stakeholders about
sustainability implementation, then its stakeholder feels values by Adidas. Then they give their
full support to this step of company. At the end, company was succeeded in properly
implementing sustainable identity.
Recommendations
The top-level management of Adidas should systematically manage sustainability within
its daily operation, otherwise company never gain positive results from sustainability. Currently
there are various factors has involved in the company’s business environment which can help it
or hinder it (Landrum, 2018). In this situation, the management of company need to use an
effective plan for systematically dealing with these factors. On the other side, company should
try to those all elements from its existing business environment which can negatively affect its
sustainability aspect. In this dynamic and modern world, upper management at Adidas should
use some modern strategies and tactics for properly implement and manage sustainability within

its workplace. This is too necessary task to this company, because without using modern and
latest strategies, Adidas can’t get effective return from its sustainability aspect.
CONCLUSION
It can be concluded that currently there are he opportunity to each business or company
for taking huge advantages from sustainability aspect. In this situation, top-level management of
Adidas also need to highly consider this aspect within its daily operations. On the other side,
there are various factors existing in the company’s business environment which can affect its
sustainability aspect in ways positively or negatively. In this situation, the management of
company has highly required to use some productive strategies to deal with such factors. Mainly
management need to remove those factors from its workplace which can hinder to the company’s
sustainability. Currently with the support of sustainability, the Adidas able to gain huge
competitive advantage in the market.

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