In this assignment, you are to use the same corporation you selected and focused on for Assignments 1 and 2.
Research the company on its own website, the public filings on the Securities and Exchange Commission EDGAR database (
), in the University’s online databases, and any other sources you can find. The annual report will often provide insights that can help address some of these questions.
Write a six to eight (6-8) page paper in which you:
Analyze the business-level strategies for the corporation you chose to determine the business-level strategy you think is most important to the long-term success of the firm and whether or not you judge this to be a good choice. Justify your opinion.
Analyze the corporate-level strategies for the corporation you chose to determine the corporate-level strategy you think is most important to the long-term success of the firm and whether or not you judge this to be a good choice. Justify your opinion.
Analyze the competitive environment to determine the corporation’s most significant competitor. Compare their strategies at each level and evaluate which company you think is most likely to be successful in the long term. Justify your choice.
Determine whether your choice from Question 3 would differ in slow-cycle and fast-cycle markets.
In this assignment, you are to use the same corporation you selected and focused on for Assignments 1 and 2. Research the company on its own website, the public filings on the Securities and Exchange
Running head: strategic analysis 0 Introduction Under Armour Company is one of the leading organizations in the United States of America carrying expertise in the production of sports, footwear, and casual apparel. The headquarters of the company is situated in Baltimore, Maryland. The company has been delivering its products all over the world with the title of an international brand in countries such as the United Kingdom, South Africa, Germany, India, and China. The number of employees working at the company is total 15,800, the revenue of the company for the financial year 2018 was around USD 5.2 billion (“Under Armour,” 2019). This study will analyze the overall influence caused by globalization and technological changes on the company along with the determination of the most suitable model along with resource-based and industrial organization model. The study will also interpret the influence of vision and mission statement of the company on its overall success. Finally, the study will identify various categories of stakeholders at the organization and the role played by them towards organizational success. Impact of Globalization and Technological Changes on Urban Armour Globalization involves the interaction of an economy with the other economies of the world in the form of politics, trade, production, and education. The up-gradation of technologies provided a great opportunity to the globalization for expanding at a rapid pace. Urban Armour is an international brand; therefore, it is essential to analyze the influence made by the globalization on the company (Blanton & Peksen, 2017). The globalization brought positive results for the company in the form of the free flow of goods and services. The company is importing its raw materials from various countries of Asia, and China while exporting its finished products to some countries like the UK and Australia. Therefore, it has become much convenient for the organization to carry out its process in a smooth manner with low resistance (Kolodko, 2006). Moreover, the leadership of the company can travel to its branches all over the world freely to maintain appropriate standards. Globalization benefited the company in the process of hiring a diversified workforce in all of its branches to bring innovation and creativity in its overall production process (Blanton & Peksen, 2017). The company has been able to maintain a continuous flow of communication with all of its franchises to tackle all the problems or risks positively and proactively. The company has been utilizing the resources and supplies from other countries to add to its profile instead of relying on the resources and amounts available in their country only (Kolodko, 2006). Moreover, the diversification of the market and optimum operation has benefitted the company in avoiding reliance on any single economy. It means that the company will be able to bear financial pressure coming from any single economy by earning from other economies. Globalization benefitted the company in improving its revenue and operating income greatly (Blanton & Peksen, 2017). However, it has come up with a certain set of drawbacks for the company, such as enhanced competition in the market as the company has to compete with local as well as international rivals. The company has to ensure compliance with the legislation of each country to avoid any legal pitfall. Evaluation of Industrial-Organizational and Resource-Based Model on Urban Armour It is necessary to understand the purpose of each model before declaring which model is more beneficial for the company. Industrial Organization Model compels the economies of the company to deal with strategic behavior, antitrust policies, regulatory policies, and market competition. The economic regulations, laws, and theories compliance are quite essential as per this model (Cawley & Synder, 2012). They force the company to provide regular training to its employees and maintain an equal set of policies and procedures in all of its branches without demographic considerations to deliver best results to the customers. The second model is the Resource-Based Model that requires the company to identify its internal perspective by making use of its internal resources and capabilities to develop a foundation for setting value-creating strategies. Resources are inputs provided by the company in the form of talented managers, finance, brand names, patents, and employee skills. The capabilities of the company are a set of organizational capacity to carry out any task or activity appropriately (Hayduk & Walker, 2017). This model requires the company to identify both of its factors to develop appropriate strategies to combat the market conditions and characteristics in an excellent manner enabling the company to achieve success. From the explanation mentioned above, it is clear that the resource-based model is more beneficial for the Urban Armour Company as compared to the industrial-organizational model because the economic, technological, political, environmental, legal, labor, market, and social conditions in all of the operative countries are different from one another. These factors make it almost impossible for the company to operate with the same strengths in every demographic region (Cawley & Synder, 2012). Therefore, it is more beneficial for the organization to identify its strengths and weaknesses in each of its branches to develop an appropriate strategy for combating appropriately (Hayduk & Walker, 2017). Impact of Mission and Vision Statement on Under Armour’s Success The vision of the company is to inspire the individuals by delivering them performance solutions that are still unknown to them. The mission of the company is to improve the capabilities of the individual (“Under Armour,” 2019). The proper communication of the vision and mission benefits the company in managing all of its stakeholders under an umbrella where they are aware of their current position and future direction to exert their pressure and input in the right direction (Cueva, 2019). Moreover, the clarification of the vision and mission benefits the company in developing appropriate strategies to meet business needs and customer’s requirements (Spear, 2017). The company does not have to worry about the individual decision making at the workplace as all the stakeholders will be able to receive an informed decision as per the communicated vision and mission. Therefore, it comes with less doubt that the vision and mission plays a considerable role in the success of an organization (Cueva, 2019). Impact of Stakeholders on Under Armour Success There are three types of stakeholders related to the Under Armour Company, including Capital Market, Product Market, and Organizational Stakeholders. The investors and shareholders are the capital market stakeholders of the company supporting them in the business ventures and activities and enabling the company to bring a maximum possible return on the investment (Lamin & Zaheer, 2012). The company has a decent history of sharing its profit ratio with all of its shareholders transparently; therefore, they always pursue them to invest in their business ideas for gaining reasonable profit. The product market stakeholders comprise of suppliers, customers, and vendors. These stakeholders are quite essential for the company as their input and efforts benefit the company in developing appropriate products as per the need and desire of the market (Moretz & Giapponi, 2019). If the supplier or vendor does not provide the required level of services to the company, they will not be able to deliver effective products to the company. Finally, the organizational stakeholders of the company comprise of manager and employees. Their input and efforts benefit the company in streamlining and optimizing all of its operations to achieve economies of scale with the attainment of desired results (Lamin & Zaheer, 2012). Conclusion Under Armour is a leading company in the United States of America that has been positively affected by globalization in the recent past. It can use effective strategies to minimize the influence of negative factors. The resource-based model is more beneficial for the company as compared to the industrial-organizational model for developing an effective strategy as per the market needs and conditions. The vision and mission statement of the company carries particular importance towards success; therefore, it must be adequately defined and communicated with all of the stakeholders. The stakeholders play a significant role in the success of any company; therefore, the company must take regular actions for engaging them to witness overall success. References Blanton, R., & Peksen, D. (2017). Dying for Globalization? The Impact of Economic Globalization on Industrial Accidents. Social Science Quarterly, 98(5), 1487-1502. doi: 10.1111/ssqu.12367 Cawley, B., & Snyder, P. (2012). Beyond Resource-Based Theory: Further Avenues for Industrial-Organizational Psychology Ventures Into Strategic Management. Industrial And Organizational Psychology, 5(1), 112-115. doi: 10.1111/j.1754-9434.2011.01415.x Cueva, S. (2019). Inspiring Others with a Vision, Mission, and Values. International Bulletin Of Mission Research, 23-84. doi: 10.1177/2396939319837840 Hayduk, T., & Walker, M. (2017). Re-assessing resource worthiness: A new model. Organizational Dynamics, 46(1), 40-45. doi: 10.1016/j.orgdyn.2016.09.001 Kolodko, G. (2006). Globalization and Its Impact on Economic Development. SSRN Electronic Journal. doi: 10.2139/ssrn.961479 Lamin, A., & Zaheer, S. (2012). Wall Street vs. Main Street: Firm Strategies for Defending Legitimacy and Their Impact on Different Stakeholders. Organization Science, 23(1), 47-66. doi: 10.1287/orsc.1100.0631 Moretz, J., & Giapponi, C. (2019). Stakeholders and Business Strategy: A Role-Play Negotiation Themed Exercise. Organization Management Journal, 16(1), 14-26. doi: 10.1080/15416518.2019.1573130 Spear, S. (2017). Impression Management Activity in Vision, Mission, and Values Statements: A Comparison of Commercial and Charitable Organizations. International Studies Of Management & Organization, 47(2), 159-175. doi: 10.1080/00208825.2017.1256165 Under Armour Inc. Details. (2019). Retrieved July 22, 2019, from https://about.underarmour.com/about
In this assignment, you are to use the same corporation you selected and focused on for Assignments 1 and 2. Research the company on its own website, the public filings on the Securities and Exchange
Running head: assignment 2 0 Assignment 2 Introduction Under Armour Company specializes in the production of casual apparel, footwear, and sports; operating in the United States of America with its headquarter located in Baltimore, Maryland. The products of the organization are being distributed all over the world, such as China, Germany, India, South Africa, and the United Kingdom. The financial worth of the company recorded as per the statistics of 2018 was about $5.2 billion. Currently, more than 15,800 employees are serving the company all over the world (“Under Armour,” 2019). In previous work, the paper examined the influence made by the technological and globalization changes along with the role of vision, mission, and stakeholders of the company. This study will be carrying out a SWOT analysis of the company for providing effective suggestions to improve their forces. Moreover, the study will also be examining the global and competitive environment of the company. Strengths and Weaknesses of the Company The advantages of the company include growth in approximately all the sports. The company utilizes highly engineered innovation in its products to support athletes for better performance. The Company engages itself in various community programs like UA Give Back, UA Power in Pink, and UA Win Global. Under Armour Company also owns and operates multiple digital applications like My Fitness Pal and Map My Fitness (McDonald, Christensen, West & Palmer, 2018). The growth of the company is constant, and share prices have been increasing tremendously. As a strategy, the company has developed its name and got fame in the sporting area; therefore, they must avoid diversion of their focus to other areas. It should continuously focus on the sporting products for maximizing the benefits of their products for customers. The weaknesses of the company include being a newer company as compared to competitors like Nike and Adidas. The presence of the company is limited to a few markets. The commission of consumer products safety in the United States of America recently recalled its products creating a massive setback for the company (Weiss, 2019). The strategy available for the company to overcome its weaknesses is to emphasize on quality check of its products so that they could not face any embarrassment due to the quality of their products (Blanton & Peksen, 2017). Moreover, they need to expand their target market for improving their brand presence. Tangible, Intangible resources, Core Capabilities, and Core Competencies The tangible resources of the company include 166 physical stores, land, technological patents like research centers, Supply chain, loyal customer base, Return on Investment, and Effective distribution channels (Hayduk & Walker, 2017). The intangible resources of the company are more than 15,800 employees working all over the world, dynamic technological innovative design, brand name, trademarks, logos, effective research team, patents all over the world, customized website, and mobile applications (Weiss, 2019) The core capabilities of the company include strong management structure, good inventory management, effective human resource management, excellent customer services, attractive product design, strong and ethical conventional and digital marketing, and cost-effectiveness (Cawley & Snyder, 2012). The core competencies of the company include effective marketing strategy, innovative product design, strong supply chain network, effective relationship with all suppliers, Product differentiation through R&D, involvement in various community programs, ensuring comfort, performance, and pleasure to the customers with cost-effectiveness (Kolodko, 2006). Segments of the General Environment The two segments that have a great influence on the company are social and economic. The reason for the economic factor is that the products of the company are developed after detailed, innovative engineering, R&D, and quality check leading towards higher prices of the products as compared to the conventional shoes; the purchasing power of the consumers matter a lot for ensuring high sales of the product that is indicated directly by the economic condition of the company (Moretz & Giapponi, 2019). Moreover, the reason for the social factor is that the products of the company are developed for a specific target area, i.e., Sports; the interest and attention of the consumers must be present in the same area for ensuring appropriate sales of the product (Weiss, 2019). Forces of Competition Competition in the industry is the first and foremost significant factor for the company because the company targets a specific market niche while other companies like Nike and Adidas have developed a strong market with huge annual sales. Comparatively, the annual sales of Nike in 2018 were $31 billion, Adidas was about $16 billion, and UA was around $4 billion (“Under Armour,” 2019). However, the growth of UA as compared to its previous statistics has been better, and it has acquired positive results in all the entered markets. Customers are the king for any industry, and the power of customers is the second most critical factor for companies, including UA. The customers of such market are quite dynamic in their likes and dislikes; moreover, they are more concerned about the brand (McDonald, Christensen, West & Palmer, 2018). The company has started sponsoring various athletes in recent times for the promotion of their products and brand. Tasks available for the Company to address Forces The company must continue to produce highly engineering innovative products with a solid quality check for ensuring the customers that their products possess the capability of standing out the competition. Currently, the UA is facing tough competition in the market; it needs to carry out strong marketing while sponsoring various athletes to catch the attention of the customers positively (McDonald, Christensen, West & Palmer, 2018). The UA must develop a positive relationship with the suppliers for purchasing raw material in bulk quantity to offer products at lower pricing to the customers. External Threat to the Company There are several external threats for the company, including high brand recognition and global customer base of competitors like Nike and Adidas. Moreover, the products like a chin strap, athletic cups, etc. are quite sensitive and can cause injuries to the athletes bringing a bad name to the company. Brand awareness is still lower globally as compared to competitors (Weiss, 2019). The UA company can overcome these threats by focusing on innovation, designing, quality, and firmness of its products along with strong international ethical marketing. Greatest Opportunity for the Company There are several opportunities available for the UA Company, including the extension of the innovation for increasing the benefits offered to the customers for catching their attention. The company can also enter other markets at an international level for enhancing its global presence. The company can target kid sports products by partnering with the NBA and other similar leagues for making kids their permanent customers (McDonald, Christensen, West & Palmer, 2018). Moreover, the company can initiate an online shopping facility for providing convenience to the customers for positively boosting their sales. Conclusion This study carried out an analysis of the strengths and weaknesses of the UA Company, along with the tangible, intangible, core capabilities, and core competencies. The two significant general environment factors for the UA Company include social and economical, where the significant forces of competition comprise the power of customers and competitive rivalry. The company must take actions for overcoming its threats and availing its opportunities for achieving better results. References Blanton, R., & Peksen, D. (2017). Dying for Globalization? The Impact of Economic Globalization on Industrial Accidents. Social Science Quarterly, 98(5), 1487-1502. doi: 10.1111/ssqu.12367 Cawley, B., & Snyder, P. (2012). Beyond Resource-Based Theory: Further Avenues for Industrial-Organizational Psychology Ventures Into Strategic Management. Industrial And Organizational Psychology, 5(1), 112-115. doi: 10.1111/j.1754-9434.2011.01415.x Hayduk, T., & Walker, M. (2017). Re-assessing resource worthiness: A new model. Organizational Dynamics, 46(1), 40-45. doi: 10.1016/j.orgdyn.2016.09.001 Kolodko, G. (2006). Globalization and Its Impact on Economic Development. SSRN Electronic Journal. doi: 10.2139/ssrn.961479 McDonald, R., Christensen, C., West, D., & Palmer, J. (2018). Under Armour Company. Retrieved August 11, 2019, from https://www.hbs.edu/faculty/Pages/item.aspx?num=53549 Moretz, J., & Giapponi, C. (2019). Stakeholders and Business Strategy: A Role-Play Negotiation Themed Exercise. Organization Management Journal, 16(1), 14-26. doi: 10.1080/15416518.2019.1573130 Under Armour Inc. Details. (2019). Retrieved August 12, 2019, from https://about.underArmour.com/about Weiss, D. (2019). Under Armour’s Good, Bad And Opportunity. Retrieved August 13, 2019, from https://www.forbes.com/sites/davidweiss/2019/05/02/under-Armours-good-bad-and-ugly/