Submitted by: Submitted by ipatov1
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Category: Business and Industry
Date Submitted: 05/26/2011 12:06 AM
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...