Reebok Audit

Business Policy

Fall 2011

Strategic Audit of Reebok International

Prepared by:

Dzvedre Daria

Ipatov Anton

CURRENT PERFORMANCE:

During calendar year 2001, our net income increased to $102.7 million, or $1.66 per diluted share, from $80.8 million, or $1.40 per diluted share, for calendar year 2000. Our net sales increased to $2.992 billion in 2001 from $2,865 billion in 2000.

Strategic Posture:

1. Mission: The current mission for Reebok International, Ltd. is to offer a high-quality line of sports and fitness apparel and accessories.

2. Objectives:

• Increase market share.

• Re-establish Reebok with customers.

• Increase efficiencies in the near future.

• Manage inventories during consumer revolt.

• Globally restructure activities.

• Increase sales and profits.

• Regain #1 market share position.

3. Strategies:

• Cost strategies to reduce costs and manage inventories.

• Reposition the product as a major brand - to trust and rely upon.

• Human Rights Code of Conduct - Label guarantee: "Manufactured without child labor".

4. Policies:

• To provide fair treatment of employees.

• To be a strong human rights supporter and enforcer.

• To develop products to meet customer needs.

• To provide quality athletic shoes.

• To be an aggressive advertiser/sponsor to achieve market share.

CORPORATE GOVERNANCE

Board of Directors:

• Ten members - three internal and seven external.

• One female.

• Must own stock in company.

• Paul Fireman and his wife Phyllis owned 8,298377 (14.0%) and 6,412,000 (10.9%) shares, respectively. This represented about a 24.9% ownership interest. This left the company insiders and board members (excluding Fireman) with a 5.6% ownership interest.

• Active participation.

Top Management:

Paul Fireman is Chairman and CEO.

• Difficulty delegating

• Executive...