It is using financial information to improve effective decision-making so as to sustain a more positive market position against competition and also achieve a greater net income by examining costs of production, administration, labour, and even procurement. 1.2 Research objectives Having defined the importance and relevancy of financial strategy analysis and corporate life cycle issues, this research project aims to understand what specific strategies are in place with a firm that has reached a stagnant period of revenue growth. The company being spotlighted and evaluated will be Adidas, a company that has overcome challenges and risks along earlier stages of the corporate life cycle model, yet continues to achieve a plateau in revenue production as a company, theoretically, in Phase 6 where challenges are establishing relevant and meaningful alliances.
The research project maintains four distinct objectives: Determine what methods of financial analysis would be most viable for Adidas to improve its company equity, cost controls, and build effective strategic policy. Examine, in more depth, the extent of potential challenges for a company that is in the Growth through Alliances stage of the corporate life cycle model, which is representative of Adidas. Uncover the extent to which Adidas has been successful in overcoming the challenges of corporate stagnation (the maturity phase) to potentially achieve further growth as an outcome of financial analyses of company financial data.
Determine the relationship between financial position of the firm during a specified period and strategic developments that occurred concurrently with these periods to uncover how Adidas has managed to evolve through differing periods of growth. Several research questions relevant to the examination of Adidas include: 1. What financial strategy analysis tools are currently being utilised at Adidas to improve its market and competitive positions? 2.
How has corporate strategic intention and policies changed to re-inject growth into a company that has reached a plateau of revenue growth? 3. How does Adidas effectively align strategic alliances to build a better brand that captures the attention of new markets to regain a growth status along the corporate life cycle model? 2.0 Literature Review This section explores, more in-depth, the concepts of financial strategy analysis and corporate life cycle challenges to illustrate why companies such as Adidas must be considerate of financial investigation and overcoming challenges to avoid continued growth stagnation and re-achieve a growth factor in a rapidly maturing business model.
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