Management theory and practice ethics

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In any organization management plays a very vital role in formation and working of the company by setting guidelines and memorandum to perform business ethics. In this particular topic we would discuss the theory and practice involved in the management, how they are structured and perform with the business in today's world and in the competitive market. Here we are going to discuss a company and its origin, the management level and there technological factors.


The ability and discipline of management has bifurcated to many dimensions, that as the meaning of management. Management can be defined as the process of achieving organizational goals through planning, organizing, leading, and controlling the individual, money, and instruction resource resources of the organization in an effective and powerful manner.

By this definition, management is a distinctive method, a set of ongoing, corresponding activities that manager employ in as they practice the organization goals. Therefore, a manager is someone who actively participates in the management process through the four functions of planning, organizing, leading, and controlling the resources of the organization. Managers in various organizations are confronted by different challenges and call on different resources, elements such as raw materials, people, information, and money that the organization needs to produce goods or services.

Depending on their situation and on their resources, managers stress one or another of the four management functions to accomplish their goals. For example, the chairmen and CEOs of different companies want to focus on leading and motivating to build their business. Naturally, all of these executives, and the managers at every level in every organization, shift their focus from one management function to another as conditions dictate.


Center of Excellence

Selangor International Islamic University

Management is a process of activities which is being carried out by managers to include 5 main activities as follows:

  1. Think.
  2. Plan.
  3. Organize.
  4. Lead and
  5. Control.

When we are talking about function of management, we discuss about “Thinking”. Many assumed that manager should be able to think. But due to the current phenomena of many the big conglomerates collapsed and went bankrupt, I wish to include the element of “Thinking” as one of the important activities needs to be carried out before carrying out the other 4 activities - planning, organizing, leading, and controlling.

Thus management may be defined as “The process of activities include, creation, leading, classifying and scheming”

‘Management' (from Old French management ‘the art of conducting, directing', from Latin its manu-agere ‘to lead by the hand') characterize the process of leading and directing all or part of an organization, often a business, through the deployment and manipulation of resources (human, financial, material, intellectual or intangible).

Pestle analysis

In analyzing the macro-environment, it is essential to classify the factors that might in turn influence a numeral of vital variables that are likely to influence the business Kotler(1998) claims that PEST analysis is a useful strategic tool for understanding market growth or decline, business position, potential and direction for operations. The headings of PEST are a framework for reviewing a situation, and can in addition to SWOT and Porter's Five Forces models, be applied by companies to review a strategic directions, including marketing proposition. The use of PEST analysis can be seen effective for business and strategic planning, marketing planning, business and product development and research reports. PEST also ensures that company's performance is aligned positively with the powerful company and these are political analysis, environmental analysis, social analysis, technological analysis, economical analysis, and legal analysis.

Political factors

Political analysis is a critical element in formulating. Before choosing target or strategy, we need to strongly and critically examine the context we're working in. What forces might facilitate or impede change? Who holds the greatest influence? What changes or outcomes are we working toward - exactly? What are our strengths and weakness? Legislation laws relating to the industry, taxation policies, regulation of transfer for capital and labour, stability of the political system, membership in free trade areas.

Economical factors

Economical is also a critical factor in development of relevant economic indicators, business cycles, unemployment ratio, availability of relevant resources, industrial clusters and industry structures.

Technological factors

These factors indicates the level of the economy and the company's supplier's and customer industries, state and private expenses, life cycle phases of products.

Social factors

These factors are concerned with the demographics and populations, distribution of the economy, mobility level of education, customer behavior, level of savings, and preferences of the product.

Environmental factors

A conceptual frame is analyzed and developed to evaluate business responses and patterns under different temporal and socio-cultural conditions. corporate responses are classified under three dimensions like corporate behavior, social responsibility, social responsiveness.

Legal factors

These are allied to the legal obligation in which company operates. In latest days in UK there have been many considerable legal changes that have affected firms' behavior. The introduction of age discrimination and disability legislation, the increase in the minimum wage and greater supplies for firms to recycle are illustration of relatively recent laws that affect an organization.

Legal changes can affect a firm's costs.

Organizational structure and design

Organizational design - is the process by which managers select and manage various elements and working of organizational structure and culture so that an organization can achieve its objective.

Organizational structure - is the formal system of work and reporting relationships that controls, co-ordinates, lead and motivates employees so that they work together to achieve an organization's goal.

Structure and culture affect:

  1. Behaviour
  2. Inspiration
  3. presentation
  4. solidarity and collaboration
  5. Intergroup and Interdepartmental relationships.



Reebok's principal business activity is to design, development & worldwide marketing of high quality footwear, apparel & equipment.

  • Distributed around the world: (Asia, Australia, Canada, Europe, Latin America, and the United States)
  • Reebok is 3rd largest seller of athletic footwear and athletic apparel in the world.
  • Remain market leader since 1996
  • Employees: 9,102 only in USA.


Reebok's United Kingdom-based ancestor company for athletes those wanted to run fast.

  • 1890s, Joseph William Foster made first known running shoes with spikes.
  • By 1895, he was in business making shoes by hand for top runners;
  • The family-owned business proudly made the running shoes worn in the 1924 Summer Games by the athletes celebrated in the film “Chariots of Fire.”


Reebok International

  • Rock Port
  • RBK CCM Hockey (World's largest)
  • Greg Norman


  • Ralph Lauren Brand
  • The Hockey Company
  • Avia
  • Onfield apparel
  • Athletic footwear
  • DMX2000
  • 3D Ultralite
  • Ralph Lauren Apparel line

Mission / Goal

‘Reebok is dedicated to providing each and every athlete - from professional athletes to recreational runners to kids on the playground - with the opportunity, the products, and the inspiration to achieve what they are capable of. We all have the potential to do great things. As a brand, Reebok has the unique opportunity to help consumers, athletes and artists, partners and employees fulfill their true potential and reach heights they may have thought un-reachable'


'At Reebok, we see the world a little differently and throughout our history have made our mark when we've had the courage to challenge convention. Reebok creates products and marketing programs that reflect the brand's unlimited creative potential.


Reebok is worldwide known for its quality and product it is an multinational sports brand and known across the globe. It is world's most leading sports brand origin from the united kingdom.

It has stores all over the world and franchising across the globe. It is massive in size and produces in huge quantity to serve its customer at its best.

Structural and contextual dimensions of REBOOK

Structural dimensions:


This means the extent to which functions are dispersed in the company, either in the terms of integration with other functions and geographically. Since REEBOOK is a world wide sports brand all functions are dispersed into different departments under different heads. In such conditions centralization is not possible and so the entire organization functions are de-centralized so as to make the functioning easier and smoother.


This concept is regarding to the extent of policies and procedures in any organization. REEBOK being a highly accredited name all over the world, it is very important for the management to upkeep its name and standard in the world wide market place and so for this reason it is essential that formalization levels in the company be very high. This company deals with high profile clients and so every employee must be aware of all the rules and regulations of the company so as to avoid reduction of reputation in the eyes of the customers.


This concept is regarding the extent and configuration of levels in the structure of the organization. Hierarchy of a brand at the stature of REEBOK is very complicated as it involves both a flat as well as tall structure hierarchy or level of management. Basically, the brand tries to follow a flat structure and has decentralized all its departments WORLD WIDE so as to increase efficiency and productivity of the organization.


Specialization refers to the extent at which activities are refined in the organization. Like any other multi-national corporation even REEBOK has a high amount of specialized employees working under different departments from different fields and educational backgrounds. The company advocates a policy of well defined tasks and roles for each employee so as to avoid overlapping job portfolios for company to compete in the international market.


Training is the extent at which activities to equip organizational members with knowledge and skills are carried out, about their roles. Before an employee can be sent onto the floor to handle customers each employee has to undergo various trainings so as to be fully equipped with complete knowledge over all the queries that a customer might have.and has franchises all over the world.

strengths and weaknesses


  • Rely on retail stores to sell products
  • Issues with foot lockers
  • Poor employment practices at their international manufacturing sites
  • Heavy dependency on footwear sales


  • Profits increasing
  • Teams more connected to the consumer
  • Multi-brand strategy
  • Enthusiasm to employees
  • Hydro mover moisture technology
  • DMX technology.
  • 4 major divisions.
  • Advertisement campaign.

Industries over view

Athletic footwear manufactures captured nearly one-third of the total footwear market in the early 1970s.

  • Over a span of more than 25 years, American consumers spent $300 billion on 7.5 billion pairs of athletic shoes.
  • Reebok international Ltd. and Adidas became $ 3.5 Billion companies, while Nike Inc. became the first ever $ 9.5 Billion company.
  • By 1996 the number of establishments had dropped to about 52, with 12 factories closing since 1995.
  • China's imports increase by 6 percent to 1.26 billion pairs.
  • Brazil's share increased 2.3 percent to 83.5 million pairs.
  • Vietnam's share jumped 91.9 percent to 23.5 million pairs.
  • The US markets continue to be dominated by imports from countries with low-cost labor.
  • From 1997 to 2001, the value of industry shipments declined from $ 219.6 million to $106.5 million.
  • U.S. shoe manufacturing plants declined by 775 between 1967 and 2001.

Operating Segments:

  • Footwear
  • Apparel
  • Equipment

Operating Regions:

  • US
  • Europe, Middle East and Africa (EMEA)
  • Asia Pacific
  • Americas


  • Constructive objectives.
  • Goal-achieving culture.
  • Builds management work force.
  • Customize the products.
  • Effective advertising and marketing campaigns
  • Growth oriented market.
  • Restructure creation teams.
  • ‘Target fashionable consumers'.
  • International Football campaign.
  • Changed leadership for different brands.
  • Ability to create synergy between brands.
  • Extra efficient Technology.


  • Strong foreign economy.
  • Pathetic department store outlet.
  • Foreign market is suffering.
  • Economic decline in key markets.
  • Unfamiliar products.
  • Strong Competitor in the market.



  • It Use the skills and knowledge to carryout objectives.
  • Further grows the profits by utilization the restructures production teams.
  • Further build up the multi-brand strategy with considered campaigns.


  • Sustain brands to reduce the effect of the foreign markets.
  • Formulates brands to be a smaller amount dependent on departmental store channels.
  • Reduces the burden retail storing and departmental store.
  • Promotes company in different markets to reduce the reliance on suffering key markets.


  • Utilize the team relationship to the purchaser to respond the sale lost since of the tough country, weak responsibility store channels, and affliction strange market.
  • consume dimensional-brand approach to find a waterway to unfamiliar markets.
  • Use the enhanced profits to examine other commercial markets to strengthen the foreign saving and avoid the pessimistic effects of breaking up key market


  • Strengthen objectives to ruin the effect on large dependent brands.
  • Utilize the variant leadership to correct difficult brands.
  • Strengthen campaigns to correct complicated brands and reduces the needs to rely on department stores.


Weakness of Reebok in their top management.

  • Reebok variant advertising agencies very many times and they earned a good will as a difficult client.
  • Never listen the foot lockers.


Reebok is basically internally strong organization with lazy management team However

  • It develop a more detailed plan grow sales.
  • Various on structured store channels
  • make stronger the product given name and significance of distress brands.
  • Need strong goals and plan to grow the sales & global reputation.
  • alter the Management



  • Women:
  • Open specific stores specialized only for women
  • Increase R&D expenses in women products
  • Increase Marketing expenses by designing a specific campaign for women using female endorsements
  • Create a new logo for women market which would be associated with fashion trends and introduce new products
  • Kids:
  • Increase R&D expenses in kids products
  • Increase Marketing expenses by designing a specific campaign for kids
  • Introduce more soccer and basketball products targeting potential youth market
  • Research in international market to find out what are the new trends related with women and kids products (Long-term)


Reebok Annual Reports

Reebok Quarterly Reports

Annual ranking of America's largest corporations

Strategic Management Concepts and Cases; Fred R. David, 10th Ed.