Strategic Management Report: Reebok's Business Strategies Analysis

This report provides a comprehensive analysis of Reebok's strategic management, examining its internal and external environments. It begins with an introduction to the company, including its vision, mission, and objectives. The report then delves into a situation analysis, utilizing the PESTLE model to assess macro-environmental factors and Porter's Five Forces to analyze the industry. The G. Panagiotou’s telescopic observation is also used to evaluate the effectiveness of various strategies formulated by managers. The report further explores Reebok's marketing strategy, including its implementation, design, and quality issues. It also addresses corporate social responsibility and citizenship, offering recommendations for changes in change management approaches, strategy alignment, company culture, and CSR initiatives. The report concludes with a summary of findings and recommendations based on the analysis.

Strategic Management

Table of Content
INTRODUCTION ........................................................................................................................................3
P1 Introduction about company..............................................................................................................3
2. Vision, Mission statements plus corporate Objectives........................................................................4
3. Situation analysis.......................................................................................................................................4
3.1 Macro environmental Analysis..........................................................................................................4
3.2 Industry analysis................................................................................................................................5
3.3 The G. Panagiotou’s TELESCOPIC OBSERVATION...............................................................................6
5.1 McKinsey 7s model............................................................................................................................7
Source: (McKinsey 7s Model, 2013).............................................................................................................8
5.2 SWOT analysis..................................................................................................................................9
TASK 5..........................................................................................................................................................9
7.1 Implementation of marketing strategy..............................................................................................9
7.2 Design, style and Quality issues.........................................................................................................9
TASK 10 Corporate social responsibility and citizenship...........................................................................10
TASK 11......................................................................................................................................................10
11.1 Recommendation regarding change required in change management approach.......................10
11.2 Suggestion related to strategy, direction, alignment and development........................................10
11.3 Recommendation regarding change in company culture..............................................................11
11.4 Corporate social responsibility and citizenship..............................................................................11
CONCLUSION ...........................................................................................................................................11
REFERENCES.............................................................................................................................................12

INTRODUCTION
Strategic Management is the process that includes formulation and implementation of major
objectives and initiatives taken by top level management in organization. The decision is based
on consideration of resources, an audit of external and internal environment in which the
business competes. Strategic management provides overall direction to organization. It also
includes the specification of company’s goals and objectives, creating policies and procedures
that are developed to achieve organizational goals and then allocating resources in order to
implement plans.
The study has focus on identifying various business strategy adopted by Reebok
Company that are dealing in global athletic footwear market. The report will include
internal and external analysis, different model such as porter five force models, the G.
Panagiotou’s telescopic observation in order to evaluate the effectiveness of various
strategies formulated by manager in organisation. The way company is fulfilling their
corporate social responsibility.
P1 Introduction about company
Rebook is a global athletic footwear and apparel organisation that is operating as a
subsidiary of Adidas. Reebok produces and offers fitness running as well as cross fit
sportswear that including clothing and footwear.
Reebok was incorporated as companion organisation. In 2010 organisation has signed an
exclusive deal with Cross fit, becoming its exclusive provider of footwear, apparel and
accessories for the fitness brand. Due to this expansion strategy the company was able to
increase its sales. It has allowed firm to offer wide range of products to its customer. I
have analysed that Reebok strategy have focus on changing consumer perception by
defining and allowing customer to experience fitness. The objective of organisation is to
bring fitness to the world and become world leading fitness company.
Exploring niche market is an effective way that is used by organisation for retaining its
brand image and increasing market share.
The Reebok retail outlet and gyms are located all around world. Organisation has
online presence that has allowed firm to reach wide range of customers. Reebok
Company with other company has allowed business entity to fulfil its objectives of
gaining popularity and has enabled company to engage with global cross fit community
through heavy retail, social and digital activity.
It has been analysed that Consumer focussed event has acted as pillar of Reebok
marketing strategy. This marketing strategy has allowed firm to generate brand
awareness. Reebok is an American inspired global brand. The organisation has started as
fitness as the backbone for the brand global positioning. The organisation success is
based on its courage and potential to challenge convention by producing innovative
products, developing new market and designing latest athletic style.

2. Vision, Mission statements plus corporate Objectives
Vision –Reebok Vision is to provide each and every athlete that is from professional athletes to
recreational runners as well as kids with an opportunity to gain potential to do great thing. As a
famous brand the organisation has unique advantage to assist customer and employees to fulfil
their true potential and reach at great heights in terms of career The company vision is to become
leading brand in fitness industry.
Mission –Mission provides structure on which organisation can develop its future. It acts as
driving force for firm. The Reebok produces such products and marketing program that represent
the brand unlimited creative potential. Their mission is to have focus on fitness and training
when producing material that is beneficial to customer. Their mission is to challenge and lead
fitness industry through innovation.
Corporate objectives-The various objective of Reebok organisation is to increase market share,
to re-establish organisation product with customer, manage inventories, increasing efficiency,
global restructuring of business activities and manage current goods in the market, to raise its
sales and profits and to regain the leading market position.
3. Situation analysis
3.1 Macro environmental Analysis
PESTLE model
PEST analysis is the tool used for conducting external analysis. This tool have focus on
identifying effect of various factors such as legal, political, economic, social and technological
elements on business operations. All these constituents are challenging factors in business
environment that are interconnected with four major variables such as social, political,
economical and technological (Grant,2016)
Political and legal factors-The political factor include various laws and regulation that are
passed in country in order to prevent unethical business practices. This legislation is dependent
on politics. As Reebok is operating in global market it can have great impact of political factors
on its business operation. In order to prevent the effect of these factors on their business
activities it is required by firm to conduct external analysis and gain knowledge about various
legislation related to industry.
Economical factors-various economic factors include change in exchange rates, inflation,
economic condition of the country, individual income etc. These variables have direct effect on
the organizational financial performance. It is required by Reebok Company to expand its
business in developing country as this will assist enterprise in reducing the impact of this factor
on its business. Economic variables have great impact on buying and selling power of the
company. It is recommended to company that it should make purchases in bulk at the time of
favorable economic condition.
Technological factors-these factors have mostly the advantage for organization as it has online
presence. Technological factor can assist enterprise in developing innovative product and it has

allowed firm to reach wide range of customers. It has provided business entity an opportunity to
identify customer needs and demands and has allowed them to produce goods accordingly.
Technology has assisted firm in promoting their products and services in the market.
Social factors- Social factors have created major challenge for the company as the taste,
preference of society and customer changes according to the trend. These variables have great
impact on the profitability and growth of enterprise. It is required by Reebok organization to
identify the needs of consumer and produce goods according to the latest trends.
Environmental factors-These factors have great impact on the sustainability and growth of
organization. The various environmental elements are weather, natural calamities such as earth
quake, disasters etc. and competition. Environmental factors have great impact on the firm
competency. These variables have great influence on the quality of products and services that are
being offered by company. It is very important for Reebok to consider and accept these changes
in order to sustain their business for long term (Routledge. Roig and Ribeiro-Soriano, 2016)
3.2 Industry analysis
Porter’s five forces model
Competitive rivalry- The Reebok Company is operating in very high competitive environment.
Single action taken by competitor has great impact on whole industry. There is high chances of
brand misuse and copying of brand. High entry and low exit barriers has restricted the entry of
new firm in the industry. So there are very few players in global level. The major competitor of
Reebok is Nike and Adidas. While at Domestic level in several countries there are various others
brand that has captured strong market share for instance Bata that provide service in Pakistan. In
context on Reebok competitive rivalry is very high.
Threat of new entrant-As entry in shoes and sports industry require large investment and capital
there are less chances for entry of new organization.
Bargaining power of supplier-The bargaining power of supplier is low as Reebok is well known
and most reputed brand it has number of suppliers that are waiting to get order from such reputed
firm. There is no cost associated with switching suppliers as the quantity remains the same.
Bargaining power of buyer-As the Reebok Company is providing unique quality of product
bargaining power of buyer is low. Due to high brand reputation and recognition in market
organization has Power to decide price for their product. Reebok provides various incentives,
offers and discount to its customer during seasonal sales.
Threat of substitute products-As the switching cost is low there is medium chance of its
substitute product. As such there is no substitute of specialized shoes. It is required by
organization to produce innovative design of shoes as this will help organization in eliminating

the threat of substitute product as it will be difficult for its competitor to produce such type of
product (Sekaran and Bougie, 2016)
Porter’s Generic strategies
The strategy of Reebok Company is mainly like Porter strategies that are based on cost of the
goods and differentiation of products as well as services in various ways. The aim of these
strategies is to assist organization in fulfilling their objective of profit maximization and
encouraging firm to face competition in term of cost, price, operation in specific market, gaining
advantage of good.
Cost leadership strategy-This is very effective strategy that can be used by Reebok company as
this will allow firm to reduce its product prices and enable them to attract large number of
customer. This strategy will provide business entity a chance to gain customer loyalty.
Differentiation strategy-This strategy can be adopted by enterprise as this will help business unit
an opportunity to improve their market share and enhance their growth. As organization is
already using online platform it can allow its customer to design product for themselves. This
unique strategy will allow firm to maintain healthy relationship their customer and allow firm to
develop understanding about customer perception. It has enabled enterprise to differentiate their
goods from that of competitors and has provided them chance to gain competitive advantage in
market.
Focus strategy-This strategy can be used by Reebok company in order to develop their focus on
different market segments. This strategy will enable firm to explore and capture new market
opportunities (Van Wormer and Besthorn, 2017)
3.3 The G. Panagiotou’s TELESCOPIC OBSERVATION
The telescopic observation framework is a type of strategic planning tool that is designed
to improve intelligence gathering and enhancing market planning. It presents an original and
fundamental alternative to SWOT analysis.
Situation analysis-It has identified from above analysis that macro environmental factors have
great effect on Reebok profitability and growth. The major external factors that have influence
firm success are social and economical variables.
Evaluation of Findings- It has been evaluated that political factors have external elements have
positive and negative impact on organization. Some of positive and negative impact are –
Political Factors: Reebok has been able to achieve privileged from European Council Free trade
agreement and has got a chance to minimize various costs. But due to unclear government policy
related to industry has greatly impacted the Reebok company initiatives that have been taken by
firm for expanding their business.

Economic factors: The Company is greatly affected by cost leadership pricing strategy of its
competitor. Due to this reason company has to face short term failure as customers were attracted
towards quality with value.
Social factors: This factor has great effect on business decision as well as strategy. It has
become difficult for enterprise to identify the demands and needs of customers. Communal
factors include various elements such as Trend, culture, value, belief etc. The positive effect of
these factors is that augmented Population has lead to rise in demand for company goods and
services.
Technological factors: Online presence and use of social media has allowed company to boost
its profitability and revenue generation capacity. The negative impact is that increase in use of
mobile commerce Platform has affected the Reebok profitability.
Legal factors: The legal policies of UK legal authority have allowed organization to implement
various marketing techniques and facilitate promotional activities for introducing their brand in
market. Firm has to face legal obligation due to its Decision of regarding withdrawing from EU
market.
Environmental factors: The Company has to face high competition in UK market this has
allowed company to establish emphasizes on enhancing the quality of goods and services. The
business unit has to bear pressures due to strict environmental laws
Formulation and implementation of strategies-Reebok is required to adopt various effective
strategies in order to minimize the effect of various factor on their business. Some strategies that
can be adopted by fir are product and market development strategy as well as market penetration
strategy. It is very essential for company to review strategy before implementing as this will
assist firm in reducing cost of implementing strategy and will assist firm in producing effective
result.
TASK 4
5.1 McKinsey 7s model
This model is the strategic planning tool. It has focus on human resources rather than
traditional mass production, capital, equipment and infrastructure .This model considers human
resource as the major element that has great influence on organizational performance. It intends
to represent 7 elements of organization these are structure, strategy, Skills, Staff, System, Style
and shared value that can be aligned together to achieve organizational goals.

Figure 1 :McKinsey 7s model
Source: (McKinsey 7s Model, 2013)
Strategy- Reebok strategy intends to have focus on customer satisfaction.
Skills-The Company has innovation skills and expertise in producing specialized products.
Staff-Reebok has talented and skilled employees. The organization has team of experts for
designing product. An expert appointed by organization also provides training and consultancy
related to health and fitness.
Structure-The Company has flat structure. This structure has allowed business entity to gain
advantage of economies of scale.
System-Reebok has world class logistics and distribution system. It has many retail outlets in
major countries. This has allowed business unit to reach its customer quickly.
Style-The Company does not follow any particular style. It believes in free style. The partnership
is fusing footwear and fashion together to create a one-of-a-kind men’s suit using Reebok’s latest
innovative footwear material Reebok Flex weave.
Shared value-They believe in sharing value. Company perceives that employees are their family.
The company has focus on providing high return to their stakeholders and emphasizes on
employee satisfaction (Wheelen and Hunger, 2017)
5.2 SWOT analysis
Strength: Reebok is the biggest seller of Weakness

athletic footwear apparel in the world.
It has brought the perfect combination of
technology and fitness.
Organization offers wide range of products to
its customers.
Enterprise has focus on targeting lower income
group. It has categorized its goods for all class
of society.
Reebok is sponsoring various sports events.
Effective marketing strategy.
Fake and duplicate sales
Firm is engage in various controversy
Opportunity: Company has opportunity to
expand its business.
Life style section can be expanded.
Threats:
Increase in competition
Copying of brand
Economic and social effect
TASK 5
7.1 Implementation of marketing strategy
7 Ps of marketing mix are;
Product-Reebok company product is inspired by alter ego concept of sports and fashion that can
be combined with footwear. The company is providing rich, luxury fabric that can be infused
with cutting edge in order to provide more comfort to user.
Price –The organization follows the common pricing strategy.
Place-The firm has online presence and it also has its retail stores in many of the countries.
Promotion-Reebok is being supported by many advertising agencies for promoting their brand in
market. It is also sponsoring major events in order to get recognition.
People-It intends to provide high returns to its stakeholders and focus on employees as well as
customer satisfaction.
Physical evidence-It has many retail store in different countries.
Process-It has focus on developing attractive stores (Wilson and Beard, 2014)
7.2 Design, style and Quality issues
Design and style –Reebok has to face heavy losses from legal obligation regarding their
untrustworthy health claim of their innovative toning shoes that deceive user.
Quality-The firm has to handle various complains of customer due o heir bad quality of products.
7.3 Brand management

The objective of brand management is to enhance brand desire internationally.
Key responsibilities:
The responsibility of marketing manager is to prepare brand plan that could be aliened to Reebok
strategic business plan.
The marketing personnel have to work closely with Digital Brand Commerce team to ensure
company is connecting Brand messaging digitally with consumers
The role of marketing team is to deliver strategies to Business Units for Retail Marketing, Digital
Marketing
They are responsible for creating and innovative communication guideline.
The marketing manager has to ensure operational excellence within Marketing Operations time
framework to ensure development of integrated Marketing packages (Faulkner and et.al. 2014)
TASK 10 Corporate social responsibility and citizenship
Reebok history of innovation and conscientiousness directs organization at time of formulating
policies and creating procedures, program and developing partnership. On the basis of their
brand value the company perceives that organization have a chance to gain full potential as a
corporate citizen while motivated to fulfill their stakeholder expectation. The business entity is
fulfilling their corporate social responsibility ads they are committed to responsive procedure of
continuous re-evaluation and improvement that will allow them to become adaptable to rapid
changing environment (Borkar, 2010)
TASK 11
11.1 Recommendation regarding change required in change management approach
It is recommended to Reebok Company that it should develop corporate websites for
their stakeholders for those who have interest in the way Reebok manages sustainability issues.
As some stakeholders may have concern related to business problems while other may have
interest in knowing their roles and responsibilities. The websites should intend to provide
complete information about company including employee’s performance. It should also have
emphasizes on defining organizational goals, strategies, programmers, activities and firm
performance.
11.2 Suggestion related to strategy, direction, alignment and development
Product and market development, market penetration and innovation these are some strategies
that can be adopted by organization. Manager is required such marketing strategies that could be
aligned with overall Reebok business strategy.

11.3 Recommendation regarding change in company culture
It is very essential for the company to work on developing fitness culture but at the same time it
should also have focus on developing creative working environment in order to motivate
employees to increase their contribution in business activities and improve their performance in
organization.
11.4 Corporate social responsibility and citizenship
It s required by firm to increase their participation towards social contribution (Islam, 2016)
CONCLUSION
It has been concluded from the report that strategic planning process is the essential part
of business. Effective strategy helps firm n achieving growth and success. The project has
highlighted the major strength and weaknesses of Reebok Company. It has demonstrated the way
various external environment factor affects the business. It has been concluded from the report
that macro environmental factors have great influence on business activities. Various changes
that Reebok Company is required to make have been discussed. There are various additional
strategies has been suggested by assignment that can be used by firm for achieving success and
enhancing growth.

REFERENCES
Books and Journal
Grant, R.M., 2016. Contemporary strategy analysis: Text and cases edition. John Wiley & Sons.
Routledge. Roig and Ribeiro-Soriano, D., 2016. Qualitative comparative analysis: Crisp and
fuzzy sets in business and management.
Sekaran, U. and Bougie, R., 2016. Research methods for business: A skill building approach.
John Wiley & Sons.
Van Wormer, K. and Besthorn, F., 2017. Human behaviour and the social environment, macro
level: Groups, communities, and organizations. Oxford University Press.
Wheelen, T.L. and Hunger, J.D., 2017. Strategic management and business policy. pearson
P. Wilson, J. and Beard, C., 2014. Constructing a sustainable learning organization: Marks and
Spencer's first Plan A learning store. The Learning Organization. 21(2). pp.98-112.
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in nutritional quality to their market brand alternatives. Journal of human nutrition and
dietetics. 27(6). pp.617-625.
Borkar, R. (2010) Flat Organizational Structure
Islam, K., 2016. Can Ethical Business Strategy Influence Consumers’ Buying Behavior and