MAGT 121 – Fundamentals of Management

AHLIA UNIVERSITY

College of Business & Finance

Department of Management and Marketing

MAGT 121 – Fundamentals of Management

Second Semester (2019/2020)

Final Exam  

Date: 31^st of May 2020        Full Mark: 40        

Instructions:

• This is an open book exam.
• You have 24 hours to answer ALL the questions.
• All of the questions can be answered based on what you studied in MAGT 121.
• Please send your answers back to your lecturer using MS TEAMS.
• You can ask questions using MS TEAMS to your lecturer at any time during the exam.

Question 1:

Please read the following case study about Allbirds and Addidas, two top global shoe brands, and answer ALL of the questions that come after.

In recent years, footwear newcomer Allbirds has been stealing market share from big names like Nike and Adidas with its creative and ethical designs. Now, the 6-year-old brand, which is worth over $1.4 billion, is partnering with competitor Adidas.

The two companies announced Thursday that they are teaming up to create a shoe that fulfills the environmental mission to which both Allbirds and Adidas have committed their brands. The new product aims to have the lowest carbon footprint possible for a sports shoe as both brands work to innovate their manufacturing, materials and supply chain processes. In a release announcing the collaboration, the companies said that the footwear industry annually produces 700 million metric tons of carbon dioxide pollution—a figure Allbirds and Adidas hope to diminish with learnings from their new project.

“Very excited to share that we’re breaking the traditional rules of collaboration and teaming up with Adidas to redefine the playbook on sustainability by co-creating a performance shoe with the lowest carbon emissions, ever,” wrote Julie Channing, VP of marketing at Allbirds, on LinkedIn.

The shoe will carry both the Allbirds and Adidas logos, an Allbirds spokeswoman says, but it’s not yet clear what it will look like. She notes that both brands have a deadline of one year to create the product.

With many consumers still housebound due to COVID-19, retail sales of footwear have been on the decline—though many shoppers have been purchasing slippers, according to research firm NPD Group. Overall, U.S. footwear sales in April fell 56 percent to $1.2 billion compared with the year-earlier period; performance footwear was down 50 percent.

1. Based on information highlighted in this case, (a) conduct a SWOT analysis of the Allbirds company, (b) finding at least 2 points for each of the SWOT categories (8 marks).

2. The case discusses several external environmental factors related to Allbirds. (a) List 3 of them, (b) highlighting if they are specific or general and (c) justifying your answers (9 marks).

3. According to the case, Allbirds and Addidas are together building a team that is creating a new design of shoes. (a) Do you think the decision-making style to be followed in that team should be centralized or decentralized? (b) Explain your answer in at least 2 points (4 marks).

4. The Allbirds/Adidas team (that will create the new shoes) reflects a specific type of departmentalization. (a) What is this type of departmentalization? (b) Explain your answer, and discuss (c) one advantage and (d) one disadvantage of this departmentalization type (6 marks)

5. Based on your understanding of the case, (a) do you think that the bargaining power of sport shoe buyers is high or low? (b) Explain your answer (4 marks).

6. According to the case, (a) What is the problem that Allbirds/adidas are responding to when creating those shoes? (b) Is this problem structured or unstructured? (c) And are decisions responding to it programmed or non-programmed? Explain your answers. (6 marks)

7. (a) Which way of going global (pictured) applies to Allbirds/Adidas teaming up? (b) Define it and (c) discuss one of its advantages (3 marks).

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