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Running head: LOCATION DECISIONS 1
MGMT 420 – Assignment 6.3
Location Decisions
Muhammad Saiful Rahman Bin Mahadi | ID: 2458036
Embry Riddle Aeronautical University, Asia

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LOCATION DECISIONS 2
MGMT 420 – Assignment 6.3
Location Decisions
Adidas AG
Adidas AG is currently one of the world’s largest producer of apparel, footwear,
equipment and gear by sales, with a generated amount of €21.915 billion and a net operating
income amount of €1.709 billion in the year of 2018. The multinational corporation was founded
by Adolf (Adi) Dassler and his brother Rudolf in the early 1920s in Herzogenarauch, Germany,
and has since expanded way beyond its borders to all parts of the world with key locations in
Amsterdam, Portland, Boston, Shanghai, Hong Kong, Panama, and headquartered in
Herzogenarauch, Germany (Adidas Group , 2019).
The company divided its international business into the geographic segments of Europe,
North America, Russia, Asia Pacific, Latin America and the emerging markets, as well as
through its e-commerce channels. The physical outlets of the company worldwide include more
than 2,300 company owned retail stores, more than 14,000 mono-branded franchise stores, and
more than 15,000 wholesale stores. Online, the company is able to reach out to more than 40
countries (Prateep, 2019).
The 7 Factors in Location Decision Making
The seven major factors that affect location decisions are (1) labor productivity, (2)
exchange rates and currency risk, (3) costs, (4) political risk, values and culture, and proximity to
(5) markets, (6) suppliers, and (7) competitors.

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Running head: LOCATION DECISIONS MGMT 420 – Assignment 6.3 Location Decisions Muhammad Saiful Rahman Bin Mahadi | ID: 2458036 Embry Riddle Aeronautical University, Asia 1 LOCATION DECISIONS 2 MGMT 420 – Assignment 6.3 Location Decisions Adidas AG Adidas AG is currently one of the world’s largest producer of apparel, footwear, equipment and gear by sales, with a generated amount of €21.915 billion and a net operating income amount of €1.709 billion in the year of 2018. The multinational corporation was founded by Adolf (Adi) Dassler and his brother Rudolf in the early 1920s in Herzogenarauch, Germany, and has since expanded way beyond its borders to all parts of the world with key locations in Amsterdam, Portland, Boston, Shanghai, Hong Kong, Panama, and headquartered in Herzogenarauch, Germany (Adidas Group , 2019). The company divided its international business into the geographic segments of Europe, North America, Russia, Asia Pacific, Latin America and the emerging markets, as well as through its e-commerce channels. The physical outlets of the company worldwide include more than 2,300 company owned retail stores, more than 14,000 mono-branded franchise stores, and more than 15,000 wholesale stores. Online, the company is able to reach out to more than 40 countries (Prateep, 2019). The 7 Factors in Location Decision Making The seven major factors that affect location decisions are (1) labor productivity, (2) exchange rates and currency risk, (3) costs, (4) ...
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