Reebok AND Adidas - In aid to guide download for referencing PDF

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REEBOK AND ADIDAS 1. Why is business integration important to Reebok? Business integration is a strategy whose goal is to synchronize information technology and business cultures, objectives and align technology with the business strategy and goals.

Business integration is the technique used to align the technical components of a company with its business goals in order to create a smoothly running system for example information in the finance office can be used by the management or marketing department at their convenience,

information about a new product can be accessed from all branches or outlets. Business integration is basically the coming together of two companies with the aim of achieving competitive advantage, cutting costs, and to maximize revenue for example Warid andAirtel Company merger.

Business integration is classified in four ways such as horizontal, backward vertical, forward vertical and conglomerate integration. In this case of Reebok and Adidas, horizontal integration was used. Horizontal integration is where businesses in the same industry that operate at the same

stage of the production process are combined. Business integration is important to Reebok because of the following reasons; Cutting costs to achieve greater efficiency Reebok was suffering high costs of production. Marketing of its products was not coming out well and had a lot of chain supply

problems.They accomplish this mainly by cutting across and linking together the traditional functions of the business, in the same way that good business process management does. This always refers to replace inventory with information.. So Reebok can use а business integration system to link its forecasts to

production scheduling and ultimately to procurement.Whereas shoes were moved in bags by sales people other companies` products were being seen by customers on laptops. Marketing and administration costs were cut down seriously after the introduction of use of internet where products

styles and fashions could be viewed online by the retailers and other customers. Skyrocketing of expenses from 23.6% of sales in 1991 to 32.7% in June 1995 due to cost of endorsements while at the same time Nike managed to decrease its expense ratio was enough to

drive Reebok to merge with Adidas to benefit from shared distribution technology and marketing. Improved distribution system Business integration helped Reebok to have an improved distribution system including a new ware house in Belgium that consolidated from 30

different facilities in Europe. The information system that brought on board the retail outlets, sales people, and Reebok management reduced lead time to almost three months or even lower. Small distributers and subsidiaries were given access to the system through personal computers and this speeded up the ordering and delivery

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to create close ties with retail stores aiming at selling through data from retail stores directly to suppliers. This helped to use real time demand to pull products through the supply chain. Implementation of business integration

allows Reebok to incorporate its manufacturing partners and customers around the globe through Internet EDI links as well as ultimately plans to tie its systems directly to theirs. The Adidas strategy from their website emphasizes the importance of using information

technology to create a flexible supply chain. The company wants to share information from a point of sale down to the production lines to ensure everyone has the correct information to produce and ship the right products to each market. Increased value creation through enhanced research and development

Adidas was an award winning technology leader in the industry with the Adidas innovation team having developed cutting edge technologies such as adidas-1, the first “intelligent running shoe”, Climacool TM and a 3R. Reebok also had a very talented group of experienced research and

development professional who had developed distinguished portfolio of breakthrough product innovation including the pump.2.0 and DmX. By harnessing both companies,R&D expertise,the new Adidas group expects to accelerate new product introductions in footwear, apparel and hardware to help drive

increased brand awareness and consumer demand across all brands. Customer satisfaction By making everything that company knows about their customers available at every touch point across in their business, they can meet their needs throughout the customer life-cycle.The

improved communication as a result of integrating its information systems like when it installed a privately designed architecture for voice,video and data that made distribution easy across all business outlets worldwide. Orders could be worked upon very first hence satisfying customers in

terms of reduced ordering lead time.Hoover a data capture system was linked to customer databases that track all the information about what customers have ordered and what they want. By 2010, Reebok had an online store and running on the Web. Customers could now purchase

shoes and apparel directly from the company. Strategic insight When everything is integrated it is easier for company executives and other officers at top management to understand how their organization is operating and ensure processes are as streamlined as possible.For example in

1997, Reebok installed Radnet. Inc`s Web share group system to maintain its Website. The system had tools for e-mail, discussion groups, and bulletin boards to have interactivity to the site and build a community of users. The system made it easy for Reebok managers to add content that

they deemed necessary could be answers to the customers about new fashions wanted or introduced in the market. The company used the QuickTime from apple to create CDs for its sales people and using the macromedia on its 3|Page2018MBA I T FOR MANAGERSGROUP2 Please help me download something for referencing....